MercoPress. South Atlantic News Agency

World Bank supports Bolivia in spite of nationalization

The World Bank will continue to support Bolivia and other Latinamerican countries in spite of oil and gas industries nationalisation policies said President Paul Wolfowitz.

"Countries can sovereignly decide if they wish to nationalize their oil industry. Our job is to help them accomplish it correctly. They must honour contracts and compensate the corporations involved", said Paul Wolfowitz in an interview with the German weekly Die Zeit.

As to the Bolivian case, he has the feeling that the political authorities are not intent in scaring investors.

"Much will depend on how the nationalization process is carried out. We hope we can help", he added.

Wolfowitz downplayed the nationalization tendencies in Latinamerica arguing that there have been "exaggerations".

"We heard a lot about it when Brazil elected the somehow populist president Lula da Silva. However he's very appreciative of our cooperation and we can certainly help".

The World Bank president also showed understanding for the attitude of countries suffering "chronic poverty and inequality", and it's natural "they should try other paths, other means".

However for Mr. Wolfowitz Latinamerica "main problem is that it has an average per capita income reasonably high but at the same time the highest percentage of poor population, only second to meridian Africa".