WB chief sees no major problems in RI
WB chief sees no major problems in RI
By Vincent Lingga
HONG KONG (JP): World Bank President James Wolfensohn said
yesterday the bank did not have any major problems with its
development projects in Indonesia regarding the issue of
corruption.
"Yes, there has been a lot of publicity overseas on Indonesia
regarding that issue," Wolfensohn said in response to a question
on Indonesia's ranking by various international institutions as
one of the most corrupt countries in the world.
He said the bank had been working closely with the Indonesian
government to improve the transparency of policy making and
regulations.
"We have been working with Muhammad (Minister of Finance
Mar'ie Muhammad) to examine our projects in Indonesia and we
don't see any major problems," Wolfenshon told journalists at the
end of the three-day IMF-World Bank meeting here.
"A lot of questions have been raised outside regarding
Indonesia but the bank's examinations did not find problems that
should have raised its concern," he said adding Indonesia is one
of the biggest borrowers from the World Bank.
Wolfensohn, however, was specifically referring to World Bank
projects and not to corruption in general in Indonesia.
He added the 181 shareholder members of the two Bretton Woods
institutions fully supported the concerted campaign against
corruption being launched by the IMF and the World Bank.
Wolfensohn acknowledged that corruption has social, political,
cultural and economic dimensions.
"But our clear-cut mandate is to focus on the economic issues
of corruption though we realize it is part of the same mix," he
added.
"You will see that we will be outspoken on this issue in our
dialogs with members," he told another reporter who still doubted
the bank's courage and clout vis-a-vis its member governments.
But Wolfensohn also admitted that combating corruption is a
long process.
He quoted a minister from Latin America as jokingly saying
that corruption is like inflation. "It will always be with us but
we should check it at a single-digit level."
The meeting, he added, had been remarkably successful because
the ministers frankly and openly discussed such issues as
corruption which until one year ago was very sensitive.
"We have found that international pressures could help the
people inside a country fight corruption. Finally, it is the
people inside who should move to make the change and combat
corruption," Wolfensohn said.
He said the press might be more excited about the debate
between American financier George Soros and Malaysian Prime
Minister Mahathir Mohamad on the currency crisis in Southeast
Asia.
Mahathir, who accused Soros of partly being responsible for
instigating the currency crisis in the region, renewed his
attacks on currency speculators at a lengthy speech at a seminar
on the eve of the meeting over the weekend.
Soros defended his position and explained his view on market
globalization in a speech at the same forum one day later and
lambasted Mahathir for his irrational views on market mechanism.
The World Bank chief said ministers frankly talked about
problems during the meeting, learning from mistakes and
exchanging views on ways of improving the situation.
Wolfensohn noted with great satisfaction the unanimous and
strong agreement at the meeting that every country should further
strengthen its financial system.
"Every country now fully realizes that if the financial system
goes, everything else goes as well," Wolfensohn said,
reemphasizing the crucial importance of a sound financial sector
in maintaining macroeconomic stability.
Poverty
Reflecting on the currency turmoil in Southeast Asia, the
World Bank vice president for East Asia and the Pacific Jean-
Michel Severino criticized the media for placing too much
attention on the crisis itself.
"What is more important is the critical issues of poverty
reduction and structural policies because in such a crisis it is
the poor who will suffer the most," Severino said.
He said the key question is whether the main burden of the
currency crisis would fall on the taxpayers or company
shareholders and lenders who had taken the risk and profited from
it in the past.
"The way we handle this crisis will impact very much on how
the poor will suffer," Severino said.
Asian fund -- Page 10
Financial sector -- Page 12
By Vincent Lingga
HONG KONG (JP): World Bank President James Wolfensohn said
yesterday the bank did not have any major problems with its
development projects in Indonesia regarding the issue of
corruption.
"Yes, there has been a lot of publicity overseas on Indonesia
regarding that issue," Wolfensohn said in response to a question
on Indonesia's ranking by various international institutions as
one of the most corrupt countries in the world.
He said the bank had been working closely with the Indonesian
government to improve the transparency of policy making and
regulations.
"We have been working with Muhammad (Minister of Finance
Mar'ie Muhammad) to examine our projects in Indonesia and we
don't see any major problems," Wolfenshon told journalists at the
end of the three-day IMF-World Bank meeting here.
"A lot of questions have been raised outside regarding
Indonesia but the bank's examinations did not find problems that
should have raised its concern," he said adding Indonesia is one
of the biggest borrowers from the World Bank.
Wolfensohn, however, was specifically referring to World Bank
projects and not to corruption in general in Indonesia.
He added the 181 shareholder members of the two Bretton Woods
institutions fully supported the concerted campaign against
corruption being launched by the IMF and the World Bank.
Wolfensohn acknowledged that corruption has social, political,
cultural and economic dimensions.
"But our clear-cut mandate is to focus on the economic issues
of corruption though we realize it is part of the same mix," he
added.
"You will see that we will be outspoken on this issue in our
dialogs with members," he told another reporter who still doubted
the bank's courage and clout vis-a-vis its member governments.
But Wolfensohn also admitted that combating corruption is a
long process.
He quoted a minister from Latin America as jokingly saying
that corruption is like inflation. "It will always be with us but
we should check it at a single-digit level."
The meeting, he added, had been remarkably successful because
the ministers frankly and openly discussed such issues as
corruption which until one year ago was very sensitive.
"We have found that international pressures could help the
people inside a country fight corruption. Finally, it is the
people inside who should move to make the change and combat
corruption," Wolfensohn said.
He said the press might be more excited about the debate
between American financier George Soros and Malaysian Prime
Minister Mahathir Mohamad on the currency crisis in Southeast
Asia.
Mahathir, who accused Soros of partly being responsible for
instigating the currency crisis in the region, renewed his
attacks on currency speculators at a lengthy speech at a seminar
on the eve of the meeting over the weekend.
Soros defended his position and explained his view on market
globalization in a speech at the same forum one day later and
lambasted Mahathir for his irrational views on market mechanism.
The World Bank chief said ministers frankly talked about
problems during the meeting, learning from mistakes and
exchanging views on ways of improving the situation.
Wolfensohn noted with great satisfaction the unanimous and
strong agreement at the meeting that every country should further
strengthen its financial system.
"Every country now fully realizes that if the financial system
goes, everything else goes as well," Wolfensohn said,
reemphasizing the crucial importance of a sound financial sector
in maintaining macroeconomic stability.
Poverty
Reflecting on the currency turmoil in Southeast Asia, the
World Bank vice president for East Asia and the Pacific Jean-
Michel Severino criticized the media for placing too much
attention on the crisis itself.
"What is more important is the critical issues of poverty
reduction and structural policies because in such a crisis it is
the poor who will suffer the most," Severino said.
He said the key question is whether the main burden of the
currency crisis would fall on the taxpayers or company
shareholders and lenders who had taken the risk and profited from
it in the past.
"The way we handle this crisis will impact very much on how
the poor will suffer," Severino said.
Asian fund -- Page 10
Financial sector -- Page 12