The New Nation - Internet Edition

AFP, Washington

The new president of the World Bank, Robert Zoellick, wants to allow private-sector companies to help finance aid to the poorest countries, an innovation already stirring controversy.

The unprecedented outreach already has met with a positive response, Zoellick said Thursday at a news conference here, without naming the companies.

"This is at an early stage," Zoellick said in response to a question about a Financial Times interview published Thursday in which he revealed the World Bank's new strategy.

Zoellick said the Bank has had "some discussions" with companies "but we also have to work this through our board processes." "It also could help us broaden the base of support for the funding of the poorest, the 81 poorest countries in the world," Zoellick, a former US trade chief and Goldman Sachs executive, said ahead of the World Bank and International Monetary Fund's annual meetings this weekend.

Zoellick, who took the helm of the Bank in July after a favouritism scandal forced his predecessor, Paul Wolfowitz, to resign, underscored his strategy to integrate the Bank's activities into a global network. He said he had "received a lot of emails from people I know in the private sector saying this could be a great thing."

He added, "If we are able to move it forward this could offer us an opportunity to serve another one of the strategic directions I would like to encourage which is how to make sure we draw the private sector in."

Zoellick said he saw no real challenge in getting board approval for the private-sector strategy. "I don't see any particular problem, but until we get through that we cannot really take the steps with the companies," he said, without providing further details.

Zoellick was questioned about the World Bank's 15th fund-raising campaign to rebuild the coffers of the International Development Association (IDA).