[Congressional Record (Bound Edition), Volume 151 (2005), Part 4]
[House]
[Page 5149]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             THE WORLD BANK

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois (Mr. Kirk) is recognized for 5 minutes.
  Mr. KIRK. Mr. Speaker, when the World Bank was founded in 1944, its 
official title was the International Bank for Reconstruction and 
Development, the IBRD. The reconstruction of Europe and Asia was the 
primary mission of the World Bank, and reconstruction has always been 
central to the Bank's mission.
  Since 1944, the Bank has helped Germany and Japan rebuild. It was 
then crucial to the reconstruction of South Korea and played a key role 
in the renaissance of Eastern Europe after the fall of communism. 
Today, Germany, Japan, South Korea, and many Eastern European nations 
have now become donors to the Bank, supporting its work, rather than 
recipients.
  As of today, I am the only Member of Congress who has served in the 
World Bank, and it is a noble institution, with thousands of 
professional staff helping people in poorer nations rise up to realize 
their full potential. The challenge before the Bank today has been the 
reconstruction of Iraq. Republicans and Democrats by wide margins agree 
that the international community should do more through multilateral 
institutions in helping the people of Iraq build greater incomes and 
more security and do it in cooperation with other nations.
  But there is a problem. There is a very disappointing record of the 
World Bank in Iraq. The World Bank promised Iraq $387 million in cash 
to be contributed for the benefit of the Iraqi people, and as of just 6 
months ago the Bank has committed only $43.6 million for the 
reconstruction of Iraq, about 13 percent of what was actually promised. 
Now, 2 years later after the fall of Saddam Hussein, the problem is 
worse because the pace of World Bank funding for projects in Iraq is 
extraordinarily slow. As of just 6 months ago, there were only nine 
postings for projects in Iraq funded by the World Bank.
  This is an institution which not only promised $387 million from its 
own account but also led a pledging conference, putting together $32 
billion in pledges for the people of Iraq. To compare, the United 
States pledged $18.4 billion for the reconstruction and has already 
obligated 7 billion of that. Of the 32 billion, only a tiny percentage 
has been completed.
  Much of the fault of this very slow progress is at the hands of the 
current President of the World Bank, President Wolfensohn. President 
Wolfensohn to date has not allowed any World Bank staff to be stationed 
in Iraq. Despite the presence of hundreds of international staff 
working for a wide variety of international development organizations, 
President Wolfensohn will not even allow staff of the World Bank to 
volunteer to do the important work of helping the Iraqi people build a 
new democracy and create higher incomes for Iraqi working families.
  That is why it was such good news to hear that Paul Wolfowitz will be 
named as the United States' new nominee to take over the World Bank in 
July. No one more than Deputy Secretary of Defense Wolfowitz knows how 
important it is to set a new example of helping the international 
community to help a democracy rise in Iraq.
  We have seen great changes in the Middle East of late, in Syria and 
in Egypt and in other places, just sponsored by what has already 
happened in Iraq. Think if we could actually have a president of the 
World Bank put to use the $32 billion in international funds or at 
least the $387 million promised by World Bank to actually help the 
people of Iraq. From my view, we could not have Secretary Wolfowitz 
take over the leadership of the Bank faster. Under President Wolfensohn 
we are mired in the mud, unable to move very much assistance, and 
unable to do what on a bipartisan level so many of us want to do, to 
get the international community involved in the reconstruction of Iraq 
and the building of a new democracy.
  I am very happy with this new nomination. I think Secretary Wolfowitz 
as an Assistant Secretary for East Asian and Pacific Affairs, as our 
Ambassador to Indonesia, and as someone who has provide a leadership 
role in the Department of Defense, can make a real difference. With 
more aid to Iraq and more reconstruction, we can bring the troops home 
faster.

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