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Lawrence of Arabia
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of the Gulag Archipelago
Apr 2001
time: 06:33
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quote:
By financing projects. The financing indirectly helps banks and other investors in the country. |
that doesnt make sense - world bank loans would mean it is less likely for the government to take out loans from other banks, because they dont have enough money to repay them.
now if you are talking about FDI, then i would agree. world bank loans would make FDI more profitable/ more likely. but those arnt loans, those are investments by foreign companies. the host country doesnt owe them anything.
quote:
Sometimes they are displaced, although the World Bank is making efforts now not to do that. However the poor almost always have to suffer the burden of the loans through higher taxes either directed at them or that effect them indirectly and cuts in spending for programs that help them |
you know that doesnt happen - firstly there are no social programs to speak of, and secondly the poor dont have any taxable income. so the poor dont get screwed by world bank loans. half the economy is under the table, and there are no tax collectors in the shantytowns.
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There policies of the World Bank also usually cause inflation which hurts the poor the most. |
are you kidding? first of all, inflation in these countries sometimes run at least in the 20% range. the world banks strucutral reforms ALWAYS include aggressive anti inflationary measures, many times too aggressive, which results in problems down the road. however, you can NEVER say that the world bank creates inflation.
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Then of course there's the usual effect of the failed policies which crush the poor by reducing their earning power. |
i agree, but its not the loan itself, its the structural reforms they demand. two different things. you are saying that its the loans that do it, but its not.
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Oerdin
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of Internet Music.
Sep 2001
time: 21:33
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quote:
Originally posted by Kidicious
When they make loans it helps banks get paid back for their loans.. |
I have never heard of the world bank refinancing existing debts though I suppose it might concievably have happened in a project or two. I really don't know. I do know that the world bank normally does large scale capital projects which would be impossible to do at a reasonable price with private capital. This is a major subsidy to poorer countries because it gives them access to capital in order to make large scale infastructure improvements.
You can claim that you think the trans-Amazon highway was bad for the enviroment or lead to the explotiation of the rain forest but you can't say the rich were exploiting Brazil by financing the project. It lead to a huge increase in productive land for Brazil and it integrated millions of isolated people with the rest of the nation. Similiar benifets are found in nearly all World Bank projects including the current project to build a modern highway through southeast Asia from China to Singapore. Currently no such road exists but thanks to the world bank soon one will.
Last edited by Oerdin on 04-04-2005 at 08:29
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03-04-2005 22:02
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