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 World Bank cash row rumbles on

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Rang: Administrateur

Nombre de messages : 8092
Localisation : Washington D.C.
Date d'inscription : 28/05/2005

World Bank cash row rumbles on Empty
MessageWorld Bank cash row rumbles on

World Bank cash row rumbles on
The World Bank has moved to assuage the UK's concerns over conditions it attaches to aid for poor countries but a dispute over funding continues.

Britain has said it might withhold £50m ($94m) from the World Bank in protest at its tough policy of withdrawing loans to nations deemed to be corrupt.

It believes the rule unfairly hurts the poorest people in developing nations.

The World Bank will reveal in November how changes to its policy on aid conditions are being adopted.


Only then will British Ministers decide whether to release the funding, part of its £1.4bn contribution to the World Bank's development fund.

The UK government says it wants significant progress to be made on enacting reforms to aid conditions agreed last year.

Key areas include removing the requirement on countries to liberalise their economies and to privatise key industries.

Despite his support for the World Bank's policy of tackling corruption, UK International Development Secretary Hilary Benn has said it is too rigid in its economic solutions for countries receiving aid.

We cannot abandon the poor because their governments or institutions are weak
World Bank boss Paul Wolfowitz

The Department of International Development welcomed the World Bank's decision to publish its progress on the issue but said this did not mean it would automatically release the money.

Other World Bank member states such as India and South Africa have also criticised the strong anti-corruption drive instigated by World Bank boss Paul Wolfowitz.

"If we are to reach the poor, we must find ways of providing support for development in challenging environments," South African Finance Minister Trevor Manuel told the World Bank's Development Committee.

"The Bank's new enhanced framework on governance and anti-corruption should not compromise the Bank's core mission of poverty reduction."

'Unfairly penalising'

Mr Wolfowitz appeared to soften his stance at Monday's annual meeting of World Bank member states in Singapore, saying poor people should not be penalised for the abuses of their leaders.

"We cannot abandon the poor because their governments or institutions are weak," he said in an address to the World Bank's Development Committee.

"That would mean they would be penalised twice."

He had earlier told the meeting that despite his anti-corruption drive, lending to developing countries was up 9% this year to $9.5bn.

The World Bank's board, which comprises finance ministers from member states, will now have more say in the anti-corruption drive and therefore which, if any, countries have their aid suspended as a result of poor practice.
Story from BBC NEWS:

Published: 2006/09/18 18:04:54 GMT


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World Bank cash row rumbles on :: Commentaires

World Bank to fight corruption with MONEY
Message Jeu 21 Sep - 23:19 par mihou
World Bank to fight corruption with MONEY

World Bank has finally realised that withholding money to poor countries, on the grounds of corruption, is not going to make the corrupt any honest. Most corrupt are incorrigibly corrupt - they give two hoots to World Bank. They will find the moolah from other source.

In a pro-poor sentiment, the World Bank president Paul Wolfowitz said that donors should not penalise poor people for the abuses of their leaders by withholding aid.

For fighting poverty and corruption, the World Bank plans to link Bank financial aid to commitments by beneficiary countries to good governance, such as transparency in public procurement, and anti-corruption measures.

But the Indian finance minister, Mr. P. Chidambaram, had this to say on the Bank's intention:
'Development cannot wait for improved governance and a corruption-free world. Both must go hand in hand.'

The dissent view from India was expected due to its poor record on both fronts of poverty and corruption. However, PC has merit in his argument. Afterall, one cannot loose sight of development in the name of cleansing the system off corruption and poverty.

World Bank cash row rumbles on

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