WASHINGTON, July 5 (Xinhuanet) -- World Bank President Paul Wolfowitz said on Tuesday that phasing out agricultural subsidies in rich nations would be an important part of tackling poverty in the poorest countries.

    Speaking in an interview with The Associated Press' television network, APTN, ahead of the summit of the Group of Eight industrialized nations, Wolfowitz said poor farmers lose their opportunities to become self-sufficient because of subsidies and market barriers.

    "Then you're sort of guaranteeing handouts and permanent dependency, which is not what aid should be about," he said. "You're not going to eliminate them overnight, but at least let's start moving in the right direction."

    Wolfowitz, who became president of the World Bank on June 1, stressed the importance to fighting poverty of both trade and aid, but he warned against becoming too focused on having foreigners invest in poor countries.

    "I think experience in successful developing countries says the bulk of those come from domestic private investors, not foreigners," he said. Enditem