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World: Banking, Taxes, Corruption Drag Economies, Says World Bank President

Washington, 2 October 1996 (RFE/RL) -- One in five developing nations faces a banking crisis, and unproductive public expenditures and uncollected taxes are putting a drag on economies, including those in transition, says World Bank President James Wolfensohn.

In opening remarks yesterday to the annual meetings of the bank and the International Monetary Fund (IMF) in Washington, Wolfensohn said these are fundamental problems that the bank and fund are working together on with member nations.

It is also time to deal with "the cancer of corruption" which has become a "major barrier" to sound and equitable economic development around the world, he said. In country after country, said Wolfensohn, "it is the people who are demanding action on this issue."