World Bank head to visit Australia, Asia

The new World Bank President Robert Zoellick will next week visit Australia for talks with APEC finance ministers.

Zoellick, a former US chief trade negotiator and deputy secretary of state, indicated he would not shy away from discussing corruption and governance issues during a trip that will also take in Japan, Vietnam and Cambodia.

"I want to try to stress the overall rule of law, good governance, the openness of a society and how it can contribute to development and opportunity," he told reporters.

China and several other states reacted angrily earlier this month at published World Bank governance rankings that gave some authoritarian states low rankings in areas such as democratic accountability.

"It's unfortunate that it's become such a controversial item, in that if you look at most of the work in the development field, having sound institutions and having good governance is a core element," he said, without referring to a particular country.

Zoellick will first meet in Australia with finance ministers of the Asia-Pacific Economic Co-operation grouping who begin a week of talks in Queensland on Sunday.

Talks with the 21-member APEC forum ministers, coinciding with the 10th anniversary of the Asian financial crisis cover "what's been achieved (and) where are the question marks in the system," he said.

In Cambodia and Vietnam, Zoellick will visit World Bank projects and hold meetings with government officials, business leaders and civic groups.

"One of the challenges here is that even though they've got pretty good growth, the capacity in the country is very thin," he said of Cambodia.

Cambodians remain heavily dependent on textile exports and Zoellick said he hopes the bank can help "broaden their overall economic possibilities."

Vietnam, he said, was "now starting to deal with the second stage of reforms" after an economic boom in its cities, and it needs to spread growth to poorer rural areas.

Japan, the World Bank's second-largest shareholder, is a leading player in international development aid with an annual aid budget of some $9 billion that will host next year's Group of Eight industrialised nations summit, Zoellick said.

"I'm interested in trying to get the sense of priorities that Japan sees in the development area," he said, adding that he would thank Tokyo while encouraging the Japanese to continue their support for international development.