Currently Washington Bureau chief with bank rate. Com. The National Press club is the leading organization for aurnalists is committed to free press around the world. For more information, please visit the website at press. Org. On behalf of our members worldwide, i would like to welcome our speaker and those of you in the audience today. Our head table includes guests of our speaker. Constantly, we remind people that members of the general public attend. Welcome cspan and other audiences here today. You can also follow us on twitter. After the speech concludes, we. Ill have questions and answers introduce our to table. We will begin on this and, welcoming paula, and in turn at public news and a student at georgetown university, bravely studying journalism and government. We want to note that she is working with the team members who organize todays luncheon. For all your work, bob. Onto the head table, gillian investorsreporter at business daily. Sheila is Vice President for external and corporate relations with the World Bank Group. Nancy chen, anchor at wj l. A. Chris gori eva is chief executive officer at the world bank. Over the podium, to my ,ight is Betsy Fischer martin cochair of the npc headliners team. Skipping over our guest speaker, writerorac is the senior at cnn money. Kevin is the captain with the u. S. Navy, retired, executive director of the first global challenge, thank you for your service. Bob, i did not realize we had you back at the table. A little sleight of hand and musical chairs. Now, around of applause for our head table. Thank you. Now to our guest speaker. The world bank was created in 19 44, along with the International Monetary fund, with which it is confused. The main mission of the bank issues on ageting local and community level, helping women climb the economic ladder, and improving the health of People Living in the developing world. This is the work under the 12th president. Our guest speaker holds a phd in anthropology and is also a physician. He spent most of his childhood growing up in iowa. He was the quarterback of his High School Football team. His father taught dentistry and his mother got a phd in philosophy. He is joining us today to discuss the outlook for the World Economy and some key goals for 2018 and beyond. Dr. Kim began his first president ins bank 2012. The world bank is comprised of five institutions. They have a goal of reducing poverty and boosting prosperity around the world. In other words, it is an ambitious effort. He did not come from the political or financial arenas. In health. Und is he was one of several partners in an organization providing care. Itybased health immediately prior to being nominated and elected, he served four years as president of dartmouth college. By his own admission, he was part of a movement that sought to close the world bank. He says he is clad glad that movement failed. And toalling for an extreme poverty by 2030. But how to meet those goals . At a recent press conference, he gave a hint, but had some words of caution. He said after several years of disappointing growth, the Global Economy has begun to accelerate, trade is picking up, but investment remains weak. He said Financial Market turbulence could derail the Global Economic recovery. As you can tell, we have plenty to think about today. Please give a warm welcome to dr. Kim. [applause] thank you so much. I will start with some comments, but then i look forward to the discussion. I am so glad to be here at the National Press club. The midstknow that in of frantic news cycles and competition for our attention, i and want to step back a bit reflect on what we have been doing for what i call the new foundations of human solidarity. Thoses a time when foundations are under question, and sometimes even under attack. Peace and stability are critical to our efforts to helping people lift themselves out of poverty. We recently launched a report that surveyed investors and ask them, what is most important to you when you think about investing in a developing country . Wereop three issues political stability for our work. Growth is robust worldwide. In the Second Quarter of last year, we saw the highest quarterly growth rate since 2010. Around the world, millions of people each year continue to lift themselves out of poverty. Time whens also a multiple crises are either in full bloom or looming. Pandemics and Climate Change are can tribute into an historic number people who have been forced to migrate. Countries in nearly every region are turning inward. And homegrown terrorism affects every corner of the world. It feels like increasingly the and are connected Global Community is pulling apart. Group was founded exactly to tackle these kinds of challenges. Of theread some historical documents, it is striking how much the language of that time could affect today could apply to today. We have specific goals that i will talk about in a bit. As an institution, we are part of a world order that was predicated on the notion that what affects one region can have immediate and lasting impacts on all of us. Notion that has driven our work and drives the entire multilateral system. Global prosperity was, in many ways, and american vision. President Franklin Roosevelt began looking ahead to the world beyond the war. He knew it would not be enough postwar order excuse me. Wouldxisting institutions not be enough to shape a postwar order. The United States had to build an entirely new system that would not just prevent wars, but ensure lasting peace. President roosevelt knew that stable Financial Systems work critical. He tasked his treasury secretary at the time, henry morgan paul, to design it. The Treasury Department plan for a fund to oversee Global Financial stability and a bank to support reconstruction and development was the foundation for what became the imf and the World Bank Group. In the Mount Washington resort and Bretton Woods, a group of people met. At that time, the allied forces were fighting in normandy. And so, the remarkable thing about the Bretton Woods conference is it happened when the war was still going on. China had a representative. The u. K. , under the leadership of John Maynard Keynes and henry morgan thought were the leaders but the 44 nations that attended spoke about the must critical issues. When the secretary up in the opened the conference, he said the goal was to create a dynamic World Economy in which the people of every nation would be able to realize their potentialities in peace, to raise the run their own standards of living and enjoy the fruits of material progress. Freedom of opportunity is the foundation for all other freedoms. For the past 70 years, that world order, it nato, the wto, imf, the World Bank Group, has helped ensure relative peace and stability. From the very beginning the mission was to help ensure everyone has opportunities. Freedom of opportunity. The world banks First Mission was to find reconstruction in europe. The first loan was to france. After the announcement of the Marshall Plan at a commencement address at harvard in 1946 by general marshall, the focus shifted to development and poverty reduction. The institution evolved into the World Bank Group today. Five institutions provide our countries with specialized financial tools and global knowledge. Were the only global Multilateral Development institution and the Value Proposition is that we bring knowledge from every corner of the earth to every one of our clients. The very First Institution formed was the International Bank for reconstruction and development. It uses its aaa rating, one of the best in the world, 15 basis points which is not quite as good as the u. S. Treasury but close. We issue bonds, borrow money, and provide loans to medical Income Countries. It is critical for us to invest in middle Income Countries because they are about one third of gdp. In addition to being major engines of Economic Growth, more than two thirds of People Living in poverty living middle Income Countries. Another arm of the bank is the International Development association. It was founded at the request of president eisenhower. Deep connections to the history of the United States. Requested by president eisenhower in 1960s to provide close to zero interest loans with a maturity of about 40 years. A payback time of about 40 years in grants to the worlds poorest countries. Now we have about 75 countries that qualify for these lowinterest loans. We also have a private sector arm. The International Finance corporation and vest in the private sector and developing companies. It makes equity investments. It creates markets to bring in other private sector investment. The first loan ever provided was to the German Company siemens who wanted to invest in brazil at a time when brazil was truly a frontier market. We have another agency. It helps derisk logix, sectors, entire countries by providing Political Risk enhancement. It actually invented Political Risk insurance. That is, if a Company Wants to invest in a country, purchase a company for example, and they are worried about bad things happening like for example a change of regime and the regime nationalizes that company, you can buy insurance to protect against that possibility. We invented it. There are many, Many Companies that do it. It is sometimes a Critical Link to making a country and vest company and vest or not invest. Finally, we have settlement for disputes. Arbitration for international investors. It has settled several disputes related to nafta. Every day, walking into the building we pass a huge sign that says our dream is a world free of poverty. In different ways, each arm of the World Bank Group contributes to that dream of lifting people out of poverty. One of the great Untold Stories as we made tremendous progress in the past three decades in reducing poverty. The percentage of people in the world living in extreme poverty, less than one dollar 90 cents per day, has gone from 35 30 years ago to less than 10 today. Nearly one point one billion people afflicted themselves out have lifted themselves out of poverty since 1990, the majority, of course, were in china, which was responsible for lifting 700 Million People out of extreme poverty. But there is still a tremendous amount of work to do. Some 770 Million People still live in extreme poverty today. To make the dream of a world free of poverty or reality, were using powerful financial tools. I like to say were using the tools of the rich. Rich people use these tools everyday to try to make themselves wealthier. Were trying to use these tools on their behalf of the poor. We have innovated a swap where parties Exchange Cash flows to achieve positions marmite with their risk flow. More in line with their risk profile. We invented the swap. We have swaps to mitigate currency and interest risk. We are developing new derivative instruments to manage all kinds of risks, such as commodity risks, disaster, even whether risks. We are developing new tools of the time. As we use these tools of the rich, such as leverage, swaps, derivatives, and insurance, were trying to create new ones every day that specifically are focused on serving the poor. After i became president of the World Bank Group i asked a Pretty Simple question, we say our dream is a world free of poverty but why dont we put a deadline on that so we adopted two goals. To end extreme poverty by 2030 and to boost shared prosperity, the incomes of the bottom 40 of developing countries faster than the growth of the economy. This was our first effort to directly address the question of inequality. One year ago, i outlined the three ways we are working together. The first is to accelerate inclusive sustainable Economic Growth the second is to build resilience to shocks and threats like Climate Change, pandemics, refugees. Finally, by investing more and more effectively in people. The first strategy is to accelerate inclusive, sustainable Economic Growth. Last spring, along with our colleagues, we called for a completely different approach so we could maximize Development Purposes by systematically providing investment. Crowding in private sector investment. Everywhere we operate we are asking a simple question, how can we maximize resources . What can we do to demise at the minimize at the same time public debt . We answer the question by trying to find winwin solutions. Countries utilize these resources to meet development goals. There has never been a better time to try to crowd in private sector investment. Right now there is over 10 trillion sitting in negative Interest Rate bonds. For the nonfinancial people here, this means and set of giving your money to a bank and having the pain you interest, you give your money to a bank and you pay them to hold your money. That is what a negative Interest Rate bond is. Many have negative Interest Rate bonds and country and dollars 10 trillion are sitting in those bonds. Another 24 trillion very low yielding government securities. 5 trillion in cash. When thousand year old bills sitting in peoples safes. All of these holders of r waiting for higher returns and we think we of r waiting for higher returns, and we think we can create situations where they can both get higher returns and we can achieve development goals. We feel that the only chance we have to meet the exploding aspirations of people all over the world is to use these marketbased approaches to development. When it came time to replenish our fund for the poorest, it is not a Sustainable Business opposition unless countries donate every three years. What we did on our last replenishment was that we got a rating for ida and now we can borrow from Capital Markets with the equity that sits in ida. We were able to increase resources for africa and the poorest countries by 50 . The second filibuster is to build a resilience to overlapping shocks and crises. We are helping countries build resilience by finding new ways to share risk with the capital market. I am a medical doctor and an anthropologist. I have not been trained and financed by the the last five had not been trained in finance, but the last five years has been an intensive time for that kind of training. I was amazed at the kind of tricks that wealthy companies and wealthy people use every day that are completely legal and turn out very well for them. We are committed to using those goals. Tools. When it comes to crises like pandemic, rather than sharing our risk with Capital Markets that poor people often have to wait. We saw that with ebola. You see it again and again, panic at the height of the epidemic. You remember how panicked we were at the height of the epidemic. Panic, neglect, panic, neglect. We want to avoid what happens as people quickly forget about these pandemics after the threat subsides. This year we took a large step to break that cycle. We created something called the pandemic emergency financing facility. For the first time, we have actual pandemic and charts. A policy that would disperse funding to the poorest countries automatically when an epidemic reaches a crucial state. Were the first to provide any Financial Support during the ebola operate. That is not what we do but i happen to be an Infectious Disease doctor and i called my friends and find out this is the worst and never ever seen so we they had ever seen, so we made a commitment of 400 million, but it was probably 10 months too late. This new instrument will provide 50 million, as much as 50 my 50 million right away out of the cash window, but if the epidemic continues, once it crosses borders, once theres a certain number of cases, it will automatically disperse as much as 450 million. On a threeyear bond, pandemic bond, 450 million, is anyone going to buy this . They could lose. It is called capital at risk. Meaning all of the 450 million could absolutely be gone and they would have none of their investment left. It turns out in todays mar