New World, New World Bank Group Presentation to Fiduciary Forum On Post Crisis Direction and Reforms March 01, 2010

The Need for Post Crisis Direction The world is changing Global GDP has increased tremendously with profound structural changes An emerging world of multi-polar growth requires integration Common action required to address unprecedented global challenges The global financial architecture has evolved Regional Development Banks, IMF, UN Agencies, bilateral agencies Emergence of Private sector & South-South investment as key areas New development challenges have emerged Employing innovative and targeted approaches in IBRD and IDA countries to meet MDGs - especially in Africa Responding effectively to more complex interactions; e.g. climate change Managing risks and anticipating potential shocks and crises Dealing with the lingering impact of the crisis Issues include: multi-speed recovery; sovereign indebtedness; high and volatile commodity prices; asset price bubbles; uneven access to private capital markets; and, most importantly, extended joblessness 2

New World, New Multilateralism, New WBG 3 Increased interdependence requires greater common action. The world needs reformed global institutions to: Identify mutual interests Negotiate common actions Manage differences Increased interdependence requires greater common action. The world needs reformed global institutions to: Identify mutual interests Negotiate common actions Manage differences A reformed WBG can be a key player in promoting: Shared interests Shared responsibilities Shared voice New Multilateralism New WBG Economic weights are shifting Crisis has altered global landscape and changed policy priorities New World

A New and Strengthened WBG The vision of the WBG is to support an inclusive and sustainable globalization – to overcome poverty, enhance growth with care for the environment, and create individual opportunity and hope. New global challenges, the global nature of crisis, and a new global economic power configuration require robust global multilateral institutions that can deliver development solutions. As a premiere development institution, the WBG can play a key role in building this “new multilateralism” by deploying its comparative advantages:  Global membership and engagement in all regions  Knowledge and expertise gained globally and customized locally  Endowment of capital and reserves  Wide range of products and services 4

WBG Strategic Priorities 5 Target the Poor and the vulnerable Focus on basic needs (e.g. food, health, education, social safety nets) and seize opportunities (empowerment) Create opportunities for growth Promoting Global Collective Action Strengthen governance Manage Risk and prepare for crises Build multiple poles of growth Focus on job creation through the private sector Pursue partnerships, both developed and developing Scale up agriculture and infrastructure Provide cooperative models for multilateral actions on GPGs: climate change biodiversity health water trade financial systems Regional cooperation Governance and anti-corruption Build institutions and capacity Link security, governance and development in fragile and post- conflict countries Draw lessons from past food, fuel, and financial crises and natural disasters Create capacity to respond to future crises and natural disasters Goal: Inclusive and Sustainable Globalization

OUTCOME A more effective, efficient and accountable World Bank Group Modernizing Our Services Knowledge Services Financial Services Enhancing Service Delivery Decentralization Matrix Reform Enabling systems Information Technology Human Resources Budget resource management Maintaining our Standards and Achieving Results Accountability Transparency Managing for Results Internal Reform Agenda 6

Implications for Fiduciary Staff Shift from : transactions to country systems rules to principles procedures to risk assessment 7

The Forum as an Opportunity Reform requires a change in culture: More open dialogue and flow of information between staff and management. More flexibility and willingness to adapt as we learn lessons from experience. 8

Thank You 9