World Bank announces US $3.6 billion credit

The head of the World Bank in Ethiopia urged a greater role for private industry as the country was pledged US $3.6 billion towards tackling poverty. Ishac Diwan said Ethiopia – one of the world's 10 poorest countries – faced immense challenges in overcoming poverty. He noted, however, that responsibility for the situation did not rest solely on the shoulders of the government, and that the international community would therefore have to play its role in finding a solution. "The government has a lot on its plate, and so do we," Diwan said in a speech delivered to delegates at a high-level meeting on addressing poverty in Ethiopia. "We will need to work harder together to find innovative solutions, to keep improving local systems, and to put ideas into action. We are on the cusp of a rare African success story. Let us seize the moment and make the best of it for the benefit of effective pro-poor development." He said the government was placing great emphasis on vitalising the private sector. "Proactive public-private partnerships are needed to solve the constraints brought about by history and geography," he said. "The lack of domestic private wealth, a small financial and entrepreneurial base, poor infrastructure, and fragmented small producers constrain the working of the market as much, if not more than excessive regulation. "These efforts need to be accelerated now so that a critical mass is reached, the perception of change takes root, and results start showing up on the ground," he added. Diwan said the government had "ambitious" plans for developing irrigation to help improve agriculture in areas that are short of food. He also called for the fight against HIV/AIDS to be intensified. Efforts in this direction, he said, must now include "more targeted actions that reduce the risks of infections where they are most prevalent. This will require among other things the development of a more sophisticated system of tracking the spread of the disease in real time and across communities." The World Bank money was pledged during the forth Consultative Group meeting between the Bank, the United Nations Development Programme, donor nations and the Ethiopian government. The funds will be in the form of grants and loans and will support the country’s three-year Sustainable Development and Poverty Reduction Programme.