World Bank chief Paul Wolfowitz throws in the towel.
Here’s a softball question, with Paul Wolfowitz in the news: What international lending agency gives the most money to the developing world?
Okay, easy, the World Bank. But look which agency is right behind the World Bank: China Exim Bank. That’s right, China’s development bank is out there offering huge loans in the developing world. It’s lending almost $20 billion a year, almost as much as the World Bank.
“By 2010, it may be the largest bank of this type in the world,” Peter Bosshard, policy director of the International Rivers Network, told the Foreign Correspondents Club of China at a briefing today.
Bosshard is among some activists concerned about China’s lending practices, saying China Exim Bank often ignores the concerns of civilians as it finances projects in places like Africa.
For one thing, the bank has no official policy on corruption, which leaves some African leaders quite content. Not long ago, China Exim Bank helped provide $2 billion in soft loans to Angola for its oil sector. Bosshard said there were almost no conditions on spending of the money.
The Chinese bank is particularly involved in financing of dams in Africa, a sensitive development issue because dams often displace people and disturb the environment.
Among other projects, the China Exim Bank is helping to finance the controversial Merowe Dam on the Nile River in northern Sudan, displacing 70,000 people. It also appears to be involved in financing the Mpanda Nkuwa Dam on the Zambezi River in Mozambique, and the Bui Dam in Ghana.
Wolfowitz, a favorite target, is gone. But who can name the head of the China Exim Bank?
Given their detrimental impact on the water rights of anyone leaving downstream, almost all dams are controversial. How many dams have the World Bank and IMF financed?
Who are we to tell others how to spend THEIR money?
The Chinese are probably giving Africa a better break than it's had from the West in the last 500 years -- and we criticize them?
Posted by: Arthur Borges | May 18, 2007 at 08:12 PM
Arthur, you're certainly right that the World Bank is the champion in financing controversial dam projects -- more than 500 large dams in 92 countries.
It's hard to find the white hats in this situation.
Posted by: Tim | May 18, 2007 at 10:22 PM
Hey Tim,
The guys name is Li Ruogu. Here's his short Chinese bio. He's mostly worked as Vice President of PBOC, but also regular as liaison to the IMF, ADB, etc. He spent a year or two at the IMF as well.
If you download the IRN report that Bosshard wrote, he actually had a sit down with Li. The report itself I think is actually pretty good at striking a balance between concern over China EXIM and the rather miserable track record of the WB and IMF. Also of note are some of the points Kenneth Rogoff has made about China's role in the IMF; there seems a bit of an attitude among European countries saying "this is our development bank, get your own". And apparently the Chinese have taken this to heart...
Posted by: davesgonechina | May 19, 2007 at 10:52 AM
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Posted by: Vietnamica | June 18, 2007 at 08:00 AM