Wolfowitz in Helsinki laments "horrifying" effects of restrictions on agricultural trade
World Bank President emphasises importance of WTO talks
World Bank President Paul Wolfowitz feels that global free trade helps developing countries more than direct aid. For that reason, he says that the present so-called Doha round of World Trade Organisation talks is very important.
During a visit to Finland on Saturday, Wolfowitz said that the obstacles met by developing countries, especially in agricultural trade, are "horrifying".
He pointed out that the United States, Japan, and European countries are spending 250 billion dollars a year on agricultural subsidies. In his view, without the subsidies paid to farmers in developed countries, the products of developing countries would be competitive on the world market.
According to Wolfowitz, Pascal Lamy, Director-General of the World Trade Organisation, has "perhaps the most difficult job in the world".
He added that the present global economic growth has lifted 450 million people out of poverty. However, he concedes that there are also negative sides to the present economic system. For instance, in conditions of competition some people lose their jobs through no fault of their own, while others get incredibly rich, also quite undeservedly.
Wolfowitz was in Helsinki to attend a conference of the Parliamentary Network on the World Bank (PnoWB) held in the Finnish Parliament.
Speaking on the goals of the World Bank, Wolfowitz emphasised that factors outside the sphere of economics, such as the civil society, the system of justice, administrative culture, and the position of women need to be in shape if developing countries are to prosper.
Before arriving in Finland, the World Bank President was in China and Russia. Wolfowitz said that in Russia, President Vladimir Putin had asked him how the upcoming meeting of the G-8 countries could alleviate poverty in areas near Russia - especially in Central Asia.
According to Wolfowitz, Russia has switched from being a recipient of World Bank aid to being a donor. China, meanwhile, has moved from being a recipient of direct aid to being an ordinary debtor; the World Bank provides China with loans on a commercial basis, and the Chinese are good at paying their debts.
The projects in China are also seen to benefit other countries as well. One example mentioned by Wolfowitz was a forest project in the west of China, the experiences of which can possibly be applied elsewhere.
At the press conference, Wolfowitz also noted that the World Bank has pledged 20 million dollars worth of aid to the areas in Pakistan affected by the recent earthquake. Later on Saturday the Associated Press news agency quoted a World Bank spokesperson as saying that the bank would double its direct aid to 40 million dollars.
Wolfowitz also pointed out that in the reconstruction phase, the World Bank will have to support the areas affected to the tune of several billion dollars.
When Wolfowitz's predecessor James Wolfensohn visited Helsinki in March 2001, a protester disguised as a journalist threw a cream pie in his face.
No risks were taken during the Wolfowitz visit. He was protected by both World Bank bodyguards and Finnish police.
A small demonstration was held in Helsinki on Saturday to protest the visit of the World Bank President. Speaking at the gathering outside Helsinki's main railway station was MP and Green League presidential candidate Heidi Hautala. From the station, the demonstrators marched to Parliament, where security measures were heavy.
Eetu Komsi, one of the organisers, said that the protest was aimed at both the World Bank's role in perpetuating poverty in the Third World, and against Wolfowitz himself for the personal role he had as a member of the administration of US President George W. Bush in the war in Iraq.
Helsingin Sanomat
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| 24.10.2005 - TODAY |
 Wolfowitz in Helsinki laments "horrifying" effects of restrictions on agricultural trade
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