'Politics influences World Bank loans'

[Thom Little]

A leading international economist said that the World Bank and IMF loans are influenced by Washington's interest in the region. "We have the examples of Algeria and Jordan who had a shift in their foreign policies," said Dr. Jane Harrigan. Harrigan, head of the department of economics at the University of London's School of Oriental and African Studies, made these comments during a lecture at the American University of Beirut.

Harrigan presented her findings on the economic and political determinants of International Monetary Fund and World Bank loans in the Middle East and North Africa.

The study concluded that IMF and World Bank loans were more heavily influenced by the political interests of its biggest Western shareholders than actual economic crisis.

.......

A World Bank economist who attended the lecture said the World Bank has never denied that political determinants influence lending.

"There is some money in this institution which is donated by some major shareholders which in a sense have their own interests," he said, commenting on the condition of anonymity. "The major shareholders are the U.S. and the West."



http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=21296

[pinerow]

1. These people have a firm grip on the obvious,,,sheesh..!!

nt