page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84
page 85
page 86
page 87
page 88
page 89
page 90
page 91
page 92
page 93
page 94
page 95
page 96
page 97
page 98
page 99
page 100
page 101
page 102
page 103
page 104
page 105
page 106
page 107
page 108
page 109
page 110
page 111
page 112
page 113
page 114
page 115
page 116
page 117
page 118
page 119
page 120
page 121
page 122
page 123
page 124
page 125
page 126
page 127
page 128
page 129
page 130
page 131
page 132
page 133
page 134
page 135
page 136
page 137
page 138
page 139
page 140
page 141
page 142
page 143
page 144
page 145
page 146
page 147
page 148
page 149
page 150
page 151
page 152
page 153
page 154
page 155
page 156
page 157
page 158

elivering a keynote speech at GeorgeWashington University, Robert B.Zoellick, President of the World BankGroup, emphasised that the world needsto recognise the new realities and move to a globalsystem that integrates developed and developingcountries and forges progress on investment, access toenergy, food security and climate change.Prior to the Bretton Woods system, foreign aidprimarily assisted with humanitarian crises: famines;floods; earthquakes; or people fleeing conflicts. Withthe devastation of World War II, and thendecolonisation, aid seemed useful to jumpstart privateinvestments that might be limited by insufficientdomestic saving, capital controls, or weak conditions.Aid also became a currency to gain support in a bipolarCold War competition.That 1944 world has changed - dramatically. It is timeto think about aid anew. The changes do not meanthere is no longer a place for aid - nor that developedcountries should not honour their aid commitments,nor that we should disregard what aid has achieved.Over the last decade, the World Bank Group hasworked with the 79 poorest countries through our Fundfor the Poorest, the International DevelopmentAssociation, to provide access to basic health,nutrition, or population services to more than 47million people; to improve the nutrition of 98 millionchildren; to give over 113 million people access toimproved water sources; and immunisation to 310million children.For millions of people around the world, that aidremains a life or death matter. It remains a valuableboost enabling countries to climb the ladder of growth.We see this in the Horn of Africa, where aid is urgentlyneeded to help more than 12 million victims of notonly the most devastating drought in sixty years, but ofbrutal men battling without care for consequence. We see this in Afghanistan, where well-targeted aidprogrammes have made real contributions to providingaccess to education and basic health care, improvingrural livelihoods, supporting private sector growth, andbuilding community empowerment and involvement indevelopment. Much remains to be done to achieve theMillennium Development Goals and to reach the"bottom billion" - the almost 1.5 billion people today- who live in countries affected by fragility, conflict,and violence. None of these countries has yet achieveda single Millennium Development Goal.But aid is not for life. Nor should aid be whatdeveloped countries give with one hand while, with theother, they exclude developing countries fromagricultural or other trade markets, or restrict theiraccess to sustainable energy.In a world Beyond Aid, assistance would be integratedwith - and connected to - global growth strategies,fundamentally driven by private investment andentrepreneurship. The goal would not be charity, but amutual interest in building more poles of growth.In a world Beyond Aid, sound G7 economic policieswould be as important as aid as a percentage of GDP.In a world Beyond Aid, G-20 agreements onimbalances, on structural reforms, or on fossil fuelsubsidies and food security, would be as important asaid as a percentage of GDP. In a world Beyond Aid, the advanced emergingmarkets would assist those behind with experience,A NEW MINDSET: BEYOND AID080FINANCE & INVESTMENTROBERT B. ZOELLICK, PRESIDENT, THE WORLD BANK GROUPDPhoto: africa924 / shutterstock.com " "IN A WORLD BEYOND AID, NEW FINANCIALINSTRUMENTSWOULD INSURESMALLHOLDERFARMERS AGAINSTDROUGHT, ORCOUNTRIESAGAINST HURRICANES,WOULD CREATELOCAL CURRENCYBOND MARKETSAND LEVERAGENEW EQUITY INVESTMENTS

FINANCE & INVESTMENT081