World Bank prepares for transformation
The World Bank (WB) is moving from the role of lender of major development projects to the role of broker for private sector investments. Report informs referring to Vestifinance.ru, WB Group President Jim Yong Kim outlined his vision in a speech at the London School of Economics.
The bank's president noted that the financing for development should radically change in speed and scope, moving from billions of dollars of aid to investments in trillions of dollars.
Kim says that there are significant and affordable financial resources that remain on the margins of capital markets that can be invested in developing countries. The lack of knowledge of private investors about these countries means that these funds remain largely unused.
In his opinion, World Bank should be an intermediary between private sector and developing countries. Its main priority should be to not give money, but to reduce risks in developing projects and developing countries in general. To do this, it will promote a policy that will make this or that country and projects attractive for private investments.
Kim hopes that this will provide financing for the private sector, while at the same time will benefit poor countries and their people. In his view, the bank will mediate between the interests of the global market system, the governments of developing countries and people living in poverty.
As a broker, World Bank will be able to provide a wide range of services - from investment and insurance to business consultations and lobbying policies.