Washington -- Donor countries are finalizing a financial plan to help relieve poor countries of their debts, says World Bank President Paul Wolfowitz.

In December 7 remarks at the National Press Club in Washington, Wolfowitz said the plan will provide practical details of a commitment made in July at the Summit of the Group of Eight (G8) nations in Gleneagles, Scotland.  (See related article.)

The G8 comprises the Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Russia.

The plan will include a detailed debt reduction schedule and a process for sharing resources provided by the World Bank's lending arm, the International Development Association (IDA).  The aim of the plan is to help relieve poor countries of burdensome debt repayments so they will not have to sacrifice spending on basic social services in order to service their debts, Wolfowitz said.  Many poor countries acquired debt under past governments, he added.

The World Bank chief also said progress in World Trade Organization (WTO) trade negotiations -- particularly in agriculture -- is needed to help people in poor countries improve their lives.

"The Doha [Development] round presents an opportunity to rewrite the rules of an unfair trading system that holds back the potential of [the world's] poorest people,” he said.

The Doha Development Agenda, as the WTO negotiations are known formally, began in 2001 but have been stalled almost from the beginning. Trade ministers from member countries are set to meet December 13-18 in Hong Kong. (See WTO Hong Kong Ministerial Meeting.)

A main issue holding up progress in other areas is agricultural, specifically subsides and tariffs.

"Countries sitting at the negotiating table must look beyond their own vested interests and remember that if Doha fails, it is the world's poor -- the 1.2 billion people who are not represented in Hong Kong -- who will suffer the most," Wolfowitz said.

Seventy percent of the world's poor depend on agriculture for their incomes, he noted.

Wolfowitz said taxpayers and consumers in rich countries ultimately bear the costs of maintaining trade supports. For instance, he said, consumers pay $168 billion a year through higher prices and $112 billion annually for subsidies comes from taxpayers’ money.

He said more open trade could lead to improvements in national infrastructure and institutions in developing countries.

"Development is more than just economics,” he said. "In a system that protects the rule of law, freedom of the press, and the role of women and civil society, people can hold their leaders accountable for doing their jobs ... well," he added.

For additional information on U.S. policy, see Global Development and Foreign Aid.