James D. Wolfensohn, President of the World Bank Group discussed the financial crisis in Asia which began with the emergence of the Thailand crisis. The history of Asian economic and social development has been one of enormous achievement. Since 1975 the number of people living in poverty has been reduced from 700 million to 340 million (roughly 20 percent of the population)—no small achievement. Generally, the region has had strong economic growth. Life expectancy has gone up significantly, while infant mortality has gone down significantly. Primary school enrollment approaches 100 percent. Fiscal management has been remarkable. What changed? We have a crisis now caused by private sector excesses, and to a degree government inaction in the area of supervision. The Bank is focusing on two things: reformation of the financial system, in terms of trying to get the regulation and control that is now being demanded by the Asian authorities themselves; and the impact on the people. Wolfensohn fielded a number of questions from the audience.
James D. Wolfensohn, President of the World Bank Group, discussed how accountants can best serve the public interest. Over the last 15 years, the Bank have seen freedom blossom and with it an expanded role for civil society. Today five billion people live in a market system - up from 1 billion a decade ago. Lack of institutional capacity, poor governance, and public sector management remain major impediments to growth and development. The Bank is holding anti-corruption seminars and workshops for parliamentarians and journalists; making sure that our own processes meet the highest standards of transparency and propriety; and pushing ahead with deregulation, institutional, and policy reform. The Bank can and is working to improve accounting and auditing capacity building, in Ghana, Zambia, China, Pakistan, and Indonesia among others.
