Wall Street Journal - April 28, 2005
Greg Hitt, greg.hitt@wsj.com

"I can't stress enough how important it is that the first priority of the bank is Africa, and the poorest people of Africa," said Mr. Wolfowitz, who assumes the presidency of the World Bank on June 1. Mr. Wolfowitz is succeeding James Wolfensohn, who is completing a second five-year term.

The World Bank's core mission is to reduce poverty around the globe. Mr. Wolfowitz said in an interview that he is aware that large numbers of poor people in places like Asia and Latin America require attention. But he stressed that "Africa is an area that has been left behind by the progress that has touched other parts of the world," and pointed to "two important differences" that make the continent an immediate priority.

"In Africa, you have this combination of real degrading poverty, combined with the most appalling health conditions," he said, referring to "the epidemics of AIDS and malaria, which are problems elsewhere, but nowhere on the same scale as in Africa."

That Mr. Wolfowitz is thinking so much about Africa -- and not the Middle East -- underscores his transition from U.S. deputy secretary of defense. Mr. Wolfowitz, who is in his last week at the Pentagon, was a key architect of the Iraq war and a symbol of the Bush administration's aggressive use of military power. Now, he is embracing the role of "international civil servant," as he has come to define the presidency of an institution that employs 10,000 around the world and lends more than $20 billion a year.

Mr. Wolfowitz's strong emphasis on Africa puts him in close alignment with leaders in Europe, where there is much talk these days of addressing Africa's stubborn problems. Among other things, Britain, which hosts this summer's summit of the Group of Eight leading nations, is pushing to have wealthy nations pay the interest on $40 billion in outstanding World Bank and African Development Bank loans to more than 30 impoverished nations, many of them in Africa. The Bush administration is lobbying for its own debt-relief plan.

Mr. Wolfowitz suggested more money will inevitably be put toward Africa's problems. As of June 30, 2004, the World Bank had $16.6 billion in outstanding grants and loans to sub-Saharan African nations, most of them 40-year interest-free loans. In addition, the U.S. and other nations provide billions of dollars annually in direct aid. Mr. Wolfowitz said any comprehensive solution also will involve combating official corruption, deepening government commitments to transparency and accountability, developing the private sector and opening markets to promote trade.

"I do think making more resources available has definitely got to be part of the answer, but it takes more than that," he said.

Mr. Wolfowitz said he hasn't yet begun to think of details. Any major new initiative focused on Africa almost certainly will require a review of the bank's broader portfolio, and down the road Mr. Wolfowitz will likely face decisions about whether to make trade-offs between regions or find new funds to bring to bear on Africa. As of June 30, the bank had $21.2 billion in grants and loans on the books for East Asia and the Pacific region, and $19.3 billion for Latin America.

Mr. Wolfowitz said it would be "presumptuous" to assume that his ties to the White House could be used to benefit the bank. Yet his relationship with President Bush will inevitably present opportunities. Mr. Wolfowitz said President Bush -- who has backed funding increases to combat the AIDS crisis in Africa -- is already open to the development agenda. Those ties, however, mean Mr. Wolfowitz will be closely scrutinized in the months ahead, especially as he balances the agenda of Mr. Bush against his new institutional responsibilities.

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