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Monitoring the impacts of government and corporate behaviour in communities overseas.

World Bank hypocritical on corruption

Release Date: 04-Aug-2008

In the last few weeks the World Bank has approved US$320 million loans to both Vietnam and Bangladesh. This is despite the fact that the bank’s own internal resources state that corruption in both these countries is growing.

There is an alarming irony present which hasn't been missed by debt and justice campaigners around the world. With one hand the World Bank is scolding developing countries for corruption and poor governance, withholding much needed (and promised) debt cancellation. With the other the Bank is issuing new loans into politically charged projects despite evidence from its own sources of bid-rigging and fraud.

Today's food, oil and climate crises have triggered an increase in international loans to developing countries like Bangladesh and Vietnam. It is more important than ever to lobby internationally for a responsible financing framework. Jubilee Australia joins debt campaigns around the world in proposing a system that holds both borrowing countries and creditors accountable for the legitimacy of loans. If we don't act now, another debt crisis by 2015 is inevitable.