World Bank suggest huge investment in Africa

Subscribe to Oneindia News

{image-world bank_06042008.jpg www.oneindia.com}New Delhi, April 6: The World Bank has suggested a 30 billion dollar investment in Africa to enable it become an alternative pole of growth to China and India.

Underlining the need to counter immediate threats in response to the current global crisis, World Bank president Robert B Zoellick advocated sovereign wealth funds to create a "one percent solution" for equity investment in Africa to enable it become " an alternative pole of growth as China, India and other countries are today." In a major speech at Washington ahead of meetings of the World Bank and International Monetary Fund next week, he said,"Today, sovereign wealth funds hold an estimated 3 trillion dollar in assets. If the World Bank Group can help create the platforms and benchmarks, the investment of even one per cent of their assets would draw 30 billion dollar to African growth, development, and opportunity." Describing it "one per cent solution", Zoellick, however, said ''the sovereign funds need transparency and should be guided by best practice to avoid politicisation." In spite of the downswing in the US economy caused by huge losses in housing values and mortgages, Zoellick recognised China, India and other rising economic powers offering alternative poles of growth for global economy. But at the same time, he said this is not "decoupling" but "rebalancing" of world economy.

He warned that the developed world's financial problems and slowdown will transmit its effects because of interconnections of globalisation.

The World Bank chief said more than half of the growth in global demand for imports in now originating in developing countries, providing export opportunities for both developing and developed economies.

This, he said, amounts to a "rebalancing" and "not a decoupling" that supports an inclusive and sustainable globalisation.

Making a stock market analogy, Zoellick said " just as diversification is beneficial for an investment portfolio, so it is for sources of growth in the world economy." It is, therefore, a challenge to statecraft to recognize the changing economic landscape and counter threats posed by it, he added.

UNI

Please Wait while comments are loading...