Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Concern over corruption in Third World

Diane Coyle
Thursday 26 September 1996 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

James Wolfensohn, president of the World Bank, is to stress the importance of tackling corruption in Third-World countries in his speech at its annual meeting next week, writes Diane Coyle.

The need to create the right environment for investment by the private sector, of which eliminating bribery and patronage is one element, is a key theme in the bank's annual report, published yesterday. Gautam Kaji, managing director for operations, said the bank was being reshaped to work with a growing array of groups rather than just governments.

"It is a broader, more participatory approach," he said. "Development must be private-sector led."

The report points out that private sector capital flows to developing countries set a record of about $170bn (pounds 109bn) in 1995, up from $44bn in 1990. So important does the bank believe private capital to be that it set up a group of senior managers last year to co-ordinate a new private sector development strategy.

One early sign of its activities is that the annual report talks of "products" and "clients" for the first time. The bank is also making great play of the fact that it is hosting, for the second year running, a series of seminars for businesses interested in investing in developing countries in parallel with the official annual meeting. Speakers this year include Sir David Simon, chairman of BP, and Percy Barnevik, chief executive of engineering giant ABB.

The World Bank's own lending was a record $19bn in the latest financial year. There had been a particularly big increase in lending for health and education, areas in which there was no private sector investment. The experience of South-east Asia had shown, however, that high levels of investment in people were essential for growth.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in