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

" The Bank Group has raised over US$6 billion from governments for new climate investment funds "markets. For example, IFC is committing about US$3 billion through about 180 private equity funds to build markets through which investors can supply longer-term risk capital to owners of local companies. I am especially pleased that in 2010 IFC created a new Asset Management Company to supplement IFC's traditional model of raising money in bond markets and then investing it. The AMC taps sovereign wealth funds, pension funds, and other institutional investors and channels investments to profitable opportunities identified by IFC. The venture opens up a completely new channel of financial intermediation. The AMC now totals over US$4 billion, almost US$3 billion of which had little previous exposure to Africa and other less recognised emerging markets.The World Bank group has sought to catalyse action on global needs, ranging from biodiversity and climate change to trade and financial markets, through a pragmatic, on-the-ground approach. Many of these issues relate to non-traditional threats to security. The Bank's comparative advantage is practical, problem-solving with developing country clients. Combining that relationship with new experience, tools, and partnerships enables the Bank, for example, to boost trade and lower costs through expediting customs, assisting with financing, getting goods to markets, and connecting producers to supply chains. The Bank Group has raised over US$6 billion from governments for new "climate investment funds" to help countries improve energy efficiency and technology, lower emissions, and protect against climate change. These funds have mobilised about US$50 billion worth of projects in 45 developing countries. As UN negotiators debate what a "Green Fund" might look like, the World Bank has one up and running.The Bank has brought financial innovation to bear on plans to develop medicines, protect wildlife, lower the costs of humanitarian food and supplies, and create natural disaster insurance. In Singapore, the Bank will help launch a new S-O-S partnership to Save Our Seas from overfishing, pollution, and deadzones.Promoting good governance and anti-corruption are an integral part of development. The best militaries do not rely just on force. They stress integrity, high standards, shared responsibility - and honour. When successful, they earn the trust of their members and their societies. When I arrived at the Bank in 2007, the Bank's anti-corruption work was mired in frustrations, suspicions, and conflict. An independent review panel, headed by former US Federal Reserve Chair Paul Volcker, provided an invaluable "wiring diagram" to enable the Bank's integrity staff to work more effectively with field operations, clients, donors, and the Bank's own Executive Board. Yet the Bank needs to do more than just investigate, prosecute, and penalise fraud and theft. We need to set standards, live them, and promote their broader adoption. In many resource-rich countries, the primary challenge is for the government to use income wisely, counter corruption, and broaden the benefits of growth. n AcknowledgementThe above remarks by Robert B. Zoellick are excerpted from Mr Zoellick's Stephen Roskill Memorial Lecture at Churchill College, University of Cambridge, on 22 February 2012. Source: The World Bank Group, www.worldbank.org.Pictured: Robert B. ZoellickFINANCE AND INVESTMENT 083

Environmental Negotiations -Making the WTO Part of the ToolboxPascal Lamy, Director-General, World Trade Organization On the shores of Rio de Janeiro, exactly twenty years ago, the world sealed a landmark environmental deal. The Rio Earth Summit of 1992 delivered an Agenda for the 21st Century from which all countries drew inspiration, and several multilateral environmental agreements (MEAs), of which the United Nations Framework Convention on Climate Change (UNFCCC) was one. The 1992 summit created an unprecedented atmosphere of international collaboration on environmental issues, fundamentally changing our perception of the natural resources with which our planet is endowed. It made us ask probing questions about the sort of planet that we would bequeath to our children. And never did the word "common resource" ring more true than after this Summit of 1992. Twenty years on, we now ask ourselves, how else should we be taking the international environmental and sustainable development agenda forward? What should we be doing? Where should we place the accent?Understandably, the climate crisis is at the top of our list of global preoccupations. The creeping crisis and the slowness of the international response to it are undoubtedly a serious cause for concern. The creation of a "green economy" has been touted as the response to many of the environmental challenges we face, including the climate crisis, with the message being: we must continue to grow, but must do so differently. The concept of a green economy has come accompanied by a call for expanding the use of renewable energies, and disseminating clean technology. At Rio + 20 sustainable growth is now being championed. Clearly, the world needs to continue to put the emphasis on the creation of a global climate accord; a clear and stable successor regime to that of the first and second commitment Pictured: Pascal Lamyperiods of the Kyoto Protocol. Such an accord would create the right incentive structure for the green economy to take hold. The Durban Platform for Enhanced Action set up a process to negotiate "a protocol, another legal instrument or an agreed outcome with legal force" no later than 2015 - a commendable goal. Absent such an international regime, the climate crisis risks disintegrating into trade disputes, as countries tend to resort to unilateral environmental measures to combat climate change, and take it into their own hands to galvanise others into action through trade measures at the border.In this vein, I wish to recall Principle 12 of the Rio Declaration of 1992, which stated that: "Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country should be avoided. Environmental measures addressing trans-boundary or global environmental problems should, as far as possible, be based on an international consensus." On climate change, that consensus must continue to be sought.How then do we achieve that consensus? Clearly, certain enabling conditions must be forged. Prime amongst them would be to disseminate clean technology. After all, who would be opposed to green growth or to an international climate accord, if their technological feasibility were to be ensured? For most countries it is not about whether to achieve a green economy or a global climate accord, but how. At Rio + 20, I would strongly urge negotiators to make the World Trade Organization (WTO) part of their "Emphasis must also remain on concluding a global climate accord. We cannot risk a climate trade conflict"084 FINANCE AND INVESTMENT