As I visit Canada for the last time as president of the World Bank, I pause to reflect on the role that Canada plays on the world stage and the long-standing support it has extended to the World Bank. Canada is truly a global leader in assisting less developed countries and supporting our common objectives to reduce poverty, conflict and suffering in the world. Canadian values of humanity, tolerance of diversity, and altruism, together with Canada's deep belief in multilateralism, provide a solid foundation for its overseas aid program.
The world would be a better place if there were more Canadas - a land of opportunity where humanity and decency reign, and its support for development is anchored in the belief, and the reality, that helping others around the world makes a difference. Canada has actively supported major global development initiatives, including those in Africa, Haiti, Afghanistan and Iraq.
In the late 1960s, Lester Pearson set new markers in our aspirations to continue the fight against poverty. Robert McNamara, then president of the World Bank, approached Mr. Pearson to head a major international study of the past record of development assistance, and to provide new proposals on how the huge disparity in wealth between countries could be reduced. On becoming chairman of the Commission on International Development, Mr. Pearson said: "I accepted because I believe no problem to be more important to the future of the world."
While much has been accomplished in international development since that time - the 20-year increase in life expectancy and the halving of illiteracy in developing countries, for instance - his words continue to ring true. Over the next 25 years, it is estimated that two billion more people will be born - but only 50 million of them will be in the richer countries.
For the vast majority, who will be born in poorer nations, the prospect of growing up in poverty and encountering unemployment is highly probable. Terrorism is often bred in such places, where a burgeoning youth population sees hope as more of a taunt than a promise. As such, the security-and-development nexus is more crucial than ever; the real war is the one against poverty.
Good governance is key to that nexus, and Canada is a leader in supporting the long-term governance capacity of developing countries, while at the same time helping to build peace in the more fragile states.
Research has shown that, for aid to be most effective, a recipient country needs to have a strong civil service; good laws that are enforced by an independent judiciary; respect for human rights; and an aversion to corruption - all elements of good governance that Canada's aid program strongly backs. Canada's recent funding announcement of $342-million for global health initiatives is significant. This package of measures includes $42-million to the Global Polio Eradication Initiative; $140-million to the Global Fund to Fight AIDS, Tuberculosis and Malaria; and $160-million to the Global Alliance for Vaccines and Immunization.
Canada has tirelessly promoted the issue of debt relief. Based on the financial support of Canada and other donors, the World Bank launched the Heavily Indebted Poor Countries Initiative in 1996, and enhanced it in 1999. Thanks to this initiative, 27 countries now receive $54-billion (U.S.) in debt relief. Grants to the poorest countries are aimed at helping them avoid unsustainable debt levels, and Canada is contributing a generous $172-million to this program over the next five years. It is also providing additional resources for critical investments in health and education. Canada's commitment to Africa has been reflected through the Group of 8 Africa Action Plan and its promise to double aid to the region from 2003-04 levels by 2009-10.
These are but a few examples of how multilateral approaches to development contribute to the overall goal of poverty elimination. But we must do more. This year is being billed as the Year of Development; it will provide unprecedented opportunities to further our commitment to achieving the Millennium Development Goals - the targets set by the international community to reduce poverty in all its forms by 2015. In terms of these goals, I believe that 2005 is a make-or-break year for development.
Canada is uniquely qualified to lead the way, as it has so many times in the past, in exemplifying donor commitment. If the current trends persist, most countries will not meet most of the Millennium Goals. It is estimated that $50-billion a year in extra development assistance is needed to reach these goals.
While Canada is well positioned to meet its international commitment, it is fiscally well placed to increase its level of contributions. The generosity Canadians demonstrated in the aftermath of the Indian Ocean tsunami disaster indicates widespread public support for increasing the level of humanitarian and development aid.
I thank all Canadians for believing that the world can be a better place - and that the fight against global poverty is the greatest challenge of our time.
James Wolfensohn is the outgoing president of the World Bank.