 She's responsible for the World Bank's affairs in Africa, Asia, the Middle East, Latin America and Europe, so in other words, she's got a very big job. Her team focuses on medium to long term partnerships meant to stop crises long before they start. She's also been tasked with a major reorganization within the World Bank Group. Before joining the bank, Dr. Indra Wadi was the Finance Minister of Indonesia from 2005 to 2010, where she had developed a very strong reputation on anti-fighting corruption and helped to bolster the Indonesian economy and helped bring about much of the economic growth that people talk about when they talk about Indonesia. They associate it with strong growth and Dr. Indra Wadi had a lot to do with that. I'm so pleased that she's with us today. I really admire Dr. Indra Wadi's work for a very long time. One of the other things to know about Dr. Indra Wadi is she came to the United States at Georgia Tech to on a USAID scholarship, and so she's been to the United States before, and so she's now in a major leadership role at the World Bank Group. So I think we're going to have a very interesting conversation. She's going to make some remarks here from the podium, and then I'm going to have a conversation with her. And so let me, without further ado, ask Dr. Indra Wadi to come up to the podium. Thank you. Please come on in. Please welcome Dr. Indra Wadi. Thank you, Daniel, especially for the very kind introduction, and thank you for participating in our just finished spring meeting last week. You have really a good supporter for us, and I'm really very honored to be here to participate in your first Global Development Forum 2015. We all know that CSIS is doing critical work on security, and it is very, very good for me to see that you now focus also in the economic development, because this is maybe one of the most important key to create a more prosperous and peaceful world. Let me share you a little bit about the World Bank and what we do. I know maybe many of you know that, but I will share it especially for this year, which is a very critical year. 2015, as you all know, is a very important year for development, and the World Bank is a multilateral institutional development. You are all maybe following the news that the international community will define a new sustainable development goal this year, which will be the next generation of scorecard for international community effort to end poverty. At the end of this year, people also will convene to reach, hopefully, a climate change deal in Paris. And between these two meetings, we are going to have an Addis in July, a meeting to discuss about how they are going to finance the huge needs of development globally. So these are all the events which is critical for achieving the two goals, which the bank under the leadership of President Jim Kim has stated. First, to eliminate poverty, the extreme poverty by 2030. And second, to ensure that the bottom 40% of every society will benefit from growth. We use it to term-share prosperity. And this is becoming even more many important issue for many countries when they are having a very successful growth rate, but inequality and inclusiveness become an issue. We know that there are quite a lot of progress in the past 15 years. The share of people living under the poverty line with divine $1.25 per day has gone down from 36% to 12%. So it's really a very huge progress. Nations like Brazil or my own country Indonesia now emerge as a middle-income country or they call it emerging country. Until recently, they are still also a very strong engine of growth globally. Even when you talk about the past decade, in fact, the emerging and developing country contributing more share of global growth in the economy. But despite all this achievement, we still have 1 billion extreme poor people and we are facing the next year or even decade, a sluggish growth, a low commodity price and rising conflict. So our job is not going to be easier. It is not yet done and the work to end poverty need to continue and to promote growth as well as to share opportunity. Most of our client country in the World Bank actually know how to fix their problem. They come to us for the resources, some of really lending as one of their motivation, but more and more they come to us actually for the knowledge and know-how. How do I improve the level and quality of growth? How should we design the infrastructure to create connectivity? How do I build a better education system beyond just accessibility? How can I fight corruption? And how can I make sure that when we have to make a reform painful, we can protect the poor? So money is only part of the solution of that many development question. Expertise, knowledge and sometimes experience from many different countries and definitely good institutions are very critical. And increasing part of our work is actually helping client country to find practical solution to their development challenges. When I was finance minister in Asia, Daniel mentioned about that. I actually appreciate the fact that I could go to the World Bank and ask for idea, advice or sometimes just asking what is the experience of other country facing with this kind of situation? For example, dealing with the state-owned enterprises, dealing with the contingent liability. When oil price increasing very sharply in a very short time, then I have to deal with the budget situation, have to address the fuel subsidy by reducing it. I asked what is the technique in order for us to be able to implement this painful policy while protecting the poor? They can provide me with very quick, at least experienced, how Mexico, Brazil have the Bolsa Familia, Opportunidades and conditional cash transfer. So this kind of thing in my conversation with many of the finance minister, different minister during the last spring meeting is actually discussing quite a lot about that kind of conversation. But apart from the development issue, now we also know that location matters too. Most of the world poor now live in the middle income countries like China and India, which have a persistent pocket of poverty over in a very remote area. And this two client, big client country, because you're talking about China with 4 trillion reserve, they still come and discuss with us in borrowing 5 billion to address the issue which is very challenging for them. We have a discussion about how they are going to redesign the urbanization which has become the, it was and has been an engine of growth in China, but how to make it now work better for the poor and to be more inclusive. Poverty also increasingly concentrated in a country affected by fragility and conflict and violence. As you all know, 1.2 billion people in the world live in these places and we won't be able to achieve the goal of ending poverty by 2030 if we don't make significant progress in this area. So one of the most critical ingredients to ending conflict and this is what we discussed in many of the conflict area is actually more on the economic development such as how to kickstart the economic and creating job. This is where our private sector arms, IFC, is so important because many of the solution is not always required government money. A lot is actually at the hand of the private sector and that's why our IFC as an instrument, as an institution to attract the private sector is very critical. With backing from IFC, for example, in Burundi, we are making easier for smaller business to access finance or in Timor-Leste, we have reduced the time it takes to open a business from previously 103 days to only now 19 days. The truth is that getting over finishing line for ending poverty cannot be done solely with traditional government aid. All those government aid is still important but they cannot be done only with that. It takes the private sectors as well as domestic resource mobilization that as well as the knowledge and experience of many that we can avoid what is the unnecessary policy, bad policy and accelerating the growth. And it takes also international cooperation. Many of the issue that cause poverty don't respect border. If we talk about Ebola or we talk about violent weather and climate change, money laundering, violence, corruption and deadly displacement through the conflict as we currently see in the Mediterranean Sea, none of this problem can be solved by one single country. So many of this is becoming global public bad and that's why multilateral cooperation is becoming very critical. So more cooperation is more important or is becoming even more needed, not less cooperation. The multilateral system is making a strong contribution. You all heard about the G7, I'm sure, and the G20. We in the World Bank, we always like to call ourselves the G188. This is a true multilateral institution. And the United States is our biggest shareholder and our strong partner. And I do hope that as a biggest shareholder, you play a very important role in shaping this institution but also contributing to the global development goal of reducing or eradicating poverty and sharing more prosperity. Thank you very much. That was great. Thank you. Thank you. Thank you, Dr. Indrawadi. Really, I'm so pleased that you're with us. I wanted to ask you a couple of questions. There's a number of things that you touched on that have been on our mind here at CSIS that are also on the development agenda. One of which is could you just talk, you're from Indonesia so you have a unique perspective on China and you referenced it in your remarks but could you talk a little bit about how you see as well as how the World Bank sees the emergence of the Asia Infrastructure Investment Bank and how you're looking at it because I would describe it as a wake up call here in the United States. I think we somewhat see it as a threat. We somewhat see it as, it could be a salutary moment for us to make some changes and to be more constructively engaged in the international system as a result of it. But that's a US perspective but I'd be curious about how the World Bank is seeing this and how as you, you're a friend of the United States would you just also give us a little bit of advice on how should the US look at the AIIB? Well the AIIB has been announced actually a year ago but it's getting the headline because of many especially the Western country decided to join as a founder. I think if you look at the name ASEAN Infrastructure Investment Bank the need for infrastructure globally or even if you talk about ASEAN is actually huge. You mentioned, I think in this case if we are discussing is the magnitude is around 1 to 1.33 million. So definitely the need is really there. So having a new institution dedicated their mission to build infrastructure even if it's now expanding the definition of ASEAN by to the central ASEAN up to even Europe or even to the other part of the world. But that is definitely is a very important and it is creating a more opportunity to accelerate the achievement of the development of eradicating poverty. So the World Bank will come this new institution. We even actually working very closely with them because they are actually want to learn from the institution like us how they can design the governance structure as the operational guideline and policy in order for them to be better and hopefully it's really become a better because that can create a good pressure competition for institution like us. So for the World Bank not to be complacent and we continue to be better to be more efficient. We are undertaking a lot of reform within our institution but they look at the article of agreement. They look at the governance structure the way we decide a certain policy or institutional investment. And then also they look at even on the way we recruit staff and what is the policy. So they really, really learn very hard. United States is our biggest shareholder in the World Bank. I think you should really proud that this institution that you is the major shareholder is actually creating a lot of goods and even contributing and supporting many new institutions has been established is that the European Investment Bank is also we supported when they are starting to establish themselves. So I guess we see it as a new player that will create a new way of approaching or addressing an issue of development even as very specific like infrastructure development. It will create maybe new innovation and even challenge us as an institution about the way they are going to approach things even when they are going to handle about the speed, efficiency, environmental issue, social issue. That is going to be a very good open competition. I would say that this is going to create a much better what you call it sparring partner for the bank. In fact, in this case at this moment we've already have a list of many projects that we feel that you can co-finance with us or in this is part of our financing. It's really depend on how they are going to develop their own governance and financial instrument. Thank you. Could you talk? We've also been doing some work on urbanization and a friend of mine, my friend John who's here from Pricewaterhouse, Cooper's really was really instrumental helping us get involved in, John Glover involved in urbanization issues. We're now at 55% of the world's urbanized. We're going to go to a much higher number. 99% of all urbanization in the next 15 years is going to be in developing countries. I've been to Jakarta. So I know you've seen this movie. You've seen this movie. So could you talk a little bit about how does the World Bank Group think about urbanization and what it's doing to help prepare countries to be more urbanized? And also could you just talk also from your perspective in terms of having been a finance minister, how should countries themselves, in addition to what the World Bank's doing, how should country governments themselves be preparing to be more urbanized? Because it's coming. Yeah. I'm glad you raised this issue Daniel. It's very important. And many countries becoming moving from low to middle and high income country through this urbanization process because they're actually converting from the very primary sector in the economy with low productivity into much more service-based or manufacturing construction which have a much higher manufacturing base which is going to create more higher productivity and that can improve not only their growth but also the welfare and the prosperity of the people. So urbanization is more seeing as a development process for many countries in the world. Unfortunately, not many countries really preparing this policy of urbanization in such a way that they have then the vision about how you are going to make sure that when the population move from the rural area to the urban area, they are going to still accessing a good basic services, health, education. Have a house. Housing. How they design the infrastructure so that they are going to have a better both on the mobility and density that is going to not polluting unnecessarily. So the design of the infrastructure matter a lot from both social. And also if you look at from the financial side, how this local government, the new city will be financed. How to collect revenue, how they are going to create accountability. This is one of the area which we just work and finish our study with China and they using this as their platform to reform many things because you know, China has a very impressive growth performance in the past three decade. And that's also actually happened with this organization. Now it's reaching quite a lot of limit when you talk about converting their land from the rural agriculture into urban industrial that will challenge or threatening their food security, the pollution, the movement of people to the city area and they become urban slum if they are not going to get the access to health, education, housing. But at the same time, if they are going to accommodate, the local government has no resource to actually accommodate it. So a lot of dimension in which they have to reform their central local government relationship, the basic services, the Hukou system that is providing the... This is in China. In China. Those are those internal passports. If you want to go from a rural village to a city, you have to get a permission slip from the central government. Yeah, that's what they call it, the Hukou system which is at this moment is not portable. They are going to make it portable, but then there is a sustainability problem. So a lot of very complicated... So it's an individual liberty issue. You can't just say, I'm going to move from my rural village to the city. And then you are going to send your children to the local school. That's not the way it is now working, yeah. So I think... And we see also in Africa now. I mean, Indonesia in ASEAN has been moving. If you look at Latin America, Caribbean is always quite very organized. But not all of them is actually designing the way this, the movement of the people as well as this development progress in a way that will be sustainable from the environmental point of view. It's going to be acceptable from the new social way. People will adjust to the new environment as well as from the fiscal and financial point of view. So this is the area which the bank really dedicate quite a lot. If we look within the bank, we try to organize this whether this is on our urban study, fiscal relations study. We talk about environmental study and even on the social protection that we are going to provide. We are now still partnering with China. Even under the Minister of Finance, they have quite a lot 70 reform action which is related to how they change their growth model so that it's going to be performing relatively high so that they are able to continue to create jobs. But in a more sustainable way, both on the environmental, social and fiscal side. So I have to ask this question because you're from a democracy. You are from one of the largest, you have a country that's had some terrorism as well as extremism, but extremism isn't just associated, there's extremism and terrorism and bad actors in Central America. There's Boko Haram, there's ISIS, there's all sorts of transnational bad actors. Can I ask you just to reflect a little bit on how should we be thinking about whether the World Bank or whether the United States government or Euro-search like or what are the sorts of interventions we need to be doing that are not military, that we ought to be putting our efforts into to help counter extremism? Well, education is one thing and that's not on the security side but that's really matters a lot. I mean, I come from Indonesia in a way that sometimes when we have this bomb in Bali or even in Jakarta and we suddenly realize why as a Muslim country they say that okay, why we don't recognize this group of people who suddenly even not only attacking others but even attacking us and what is the goal that they try to achieve? It's just not within the comprehension of many of people. It is really because of the one thing is education, other is more on a transparent and reliable institution. In this case, sometimes the institutional building that will create more opportunity. If you look at Arab Spring, it's not really about ideology, it's about job. I just visited Tunisia and I was exactly in the Prime Minister's office discussed with the Prime Minister when they have this terrorist. It's terrible. And terrible. It is really related to how the economy and the society is going to create a room for the people to be there. So I think the software or the soft infrastructure is very important, equally important than sometimes physical infrastructure. And that is something we just lack behind. A lot of effort for example, like interfaith dialogue that has also happened in Indonesia. We here in the bank is also during spring meeting our president inviting and to have this dialogue on what is the role of the faith in actually can achieve the goal. And in this case it's also in understanding differences across ethnicity, across religious, across nation. I think that is very important. What is actually irony is that when we think that with the information technology people can access information, we think that people is going to be much wider and open to the new idea, it's not. When you are in your internet, I can assure you when you click you always find the website that you really just like what is according to your thinking. So the conversation across opinion is not really there because you only like click what you really like and that is becoming like the opinion is becoming even actually limited rather than wider and becoming open more tolerant. So I don't know in this case maybe we can use technology in order for them to help people understand rather than it's becoming exclusive we should be more inclusive rather than you're becoming isolated you should become more like an open. And that is really a challenge. It's education, the content, the access and I think that's the issue which we try in many of our, in Latin America when you talk about violence many of our very creative sometimes just creating the vocational training for many of the youth in order for them not to be in a street. And that really can change a lot when the parent especially the mother gender issue is very important and that children that they have a place to actually have an activity after school in order for them not to be then vulnerable or prone to join the gang. And that is something which sometimes a very small intervention but matters a lot for a certain community. But the wider bigger issue like the global issue I guess from the bank we will try to do as a development challenge whether this is from the access of the technology from the inclusion from the education side or even the designing of the infrastructure so that people have the accessibility without actually having a vulnerable to become a violence. I give you one example in Brazil when we support the government in Sao Paulo is actually to create the metro system that will be safe for a woman which is they are a victim of many domestic violence as well as on the street. And that really matters and change a lot whether you are putting not only the information system but the police, hospital, helping support seems like small is not really creating headline but matters a lot. So I have one last question for you. You're a friend of the United States. You came here, I hope you just share a little bit how you came to the United States. A little bit more than what I introduced you as but I want to ask you this. I want you to, because I think we're having a little bit of a, it's been, there's, we want to be more engaged in the world but there's also some forces that for a variety of reasons make it harder for us to be engaged in the world and we're having, I wouldn't say we're having a crisis of confidence but I'd say that it would be useful for I think this audience to hear from you, what does the world find attractive about the United States and what should the United States be emphasizing or what are the sorts of contributions that were in addition to making sure we make our item replenishments which I'm sure we'll do but could you tell us a little bit more existentially what, you know, you come to the United States you, there's certain things you admire about the United States but what, what does the developing world want and need from us and how should we be thinking about what makes us different or special or what we should be contributing to a better world? Well the United States is the United States is the biggest country in the world if you will measure it from the economic size. This is always a center of interest. I came in the United States first in 1988. As a child prodigy. I graduated, I took my master degree in PhD in the University of Illinois. I've come from Indonesia, never been outside Indonesia and then the first time to go to outside Indonesia is to the United States. Long flight from Jakarta, I think I lost in Chicago, I don't know, I cannot, I cannot talk, the English is different from the English that I know back home, the people speak very fast so I really don't know even when I'm asking what time is it because the time is different so I lost, it's really scary the first time. And then, but then you arrive in Urbana, you have a very nice small city, everybody loves you, it seems like they are very well coming and at the time of course you don't have the 9-11 yet so everybody can pick you in almost like close to the aircraft. At the gate, they pick you up at the gate. They say hi, they say goodbye and then in the immediate after that I have my social security number, since then up to now the same social security number is just amazing, I don't have to register anymore unlike today in which I have to extend my driver license every 12 months, which is amazing, different United States now. But back then it's the- Because you're not a U.S. citizen you have to read out every, of course your green card holder, J4, whatever it is. I'm the G4. G4. A G4 from Indonesia is different from G4 from German because my stuff from German they have it and for five years Indonesia is- I have no idea why that would be. Yeah, well, I hope you are going to discuss it in CSIS. But small thing like that is actually really the window and your door to so many people who has a very, it's admiring this country. They really come to this country to learn a lot. What a great society, what a great culture. And I always, when I back to Indonesia talk to my student, I would, you will never change your perception about country until you're really good there. Live with the people and see how they live their life and they actually, then you really can appreciate. So it's very actually quite discouraging if the United States as the biggest country you're becoming so internally focused and even closer because you are not really opening to the international community. You have a lot of things to offer. This is really the melting pot of the world. You really can learn a lot, so many people with different background language and even your own history provide a lot of lesson for a country to learn. It's not always great, but that is exactly lesson learned so that many other country can actually have a much better way of managing themself in creating the even political system and even creating the environment for private sector to grow how the innovation. I always like discuss with my children and my student. You can complain a lot about the United States, but in one of the PTA meeting when my children is in the local high school here and I was in the PTA and one of the parent asking why in Asia in the school we learn a lot about math and science and they actually, my children even when they are still in the kindergarten, my son can really do the math here in the fourth grade because since like five years he's actually doing math and then this one of the teacher asking why in the United States so relaxed? You are, I mean your math is so easy according to her. Of course, but the principle is giving a very interesting answer to get well, I'm okay. I mean, we are very confident but the United States education system at least according to him is providing all this opportunity even if the ASEAN all their younger children learning math from the early child, but the Nobel Prize winner is always coming from here. The science and so on. The Google is coming from here, the Yahoo is coming from here, whatever you name it. And you just, even from that answer, you actually can capture what is exactly is the strength of this nation of this country and how you are actually being admired by so many. They can express it in a hate language but actually they admire you. I mean, they want to learn, they want to know, they want to even understand and they want to get the greatness. And I mean, if you talk about the Oscar, you're talking about sport, you're talking about whatever the art, not only in a Nobel Nobel Prize. So you actually, this country is big so please act as a big country. Okay, thank you. And I mean, you're also our biggest shareholder. I mean, for Indonesia and for many countries, they don't know about AIDA. We are not asking AIDA and so on, but they know about United States with all the greatness. So please act as a biggest shareholder. Shape us, make us bigger and better so that we can have achieving the development goal which is important for the United States. Dr. Indrawadi, if you run for president of Indonesia, I'm gonna run your campaign. Okay. And I want you to know that and hold me to it. You can see why I wanted Dr. Indrawadi to close this session. Please join me in thanking Dr. Indrawadi. Thank you. Thank you.