domingo, abril 15, 2007

The World Bank, Stuck In the Mud

Por Sebastian Mallaby (THE WASHINGTON POST, 13/04/07):

In the wake of the terrorist attacks of Sept. 11, 2001, there was a new recognition that poor countries could harm rich ones: Weak and failing states could incubate disease, crime, environmental degradation — and terrorism. But that healthy recognition is fading, and the World Bank, which ought to be a powerful voice against complacent backsliders, is muted by scandal.

Before we get to the World Bank, consider the bigger picture. After Sept. 11, the world launched the Doha round of trade talks, which was supposed to help developing countries; now Doha has fizzled. After Sept. 11, there was hope for more humanitarian intervention; now the Iraq syndrome undermines the Western will to intervene, even in the extreme case of Darfur. The most lasting impact of Sept. 11 on the West’s attitude toward development is perhaps a negative one. Opponents of immigration have been handed a convenient argument, with the result that workers from poor countries may have fewer legal opportunities to earn paychecks in rich countries and send money home.

Then there is the aid story. After Sept. 11, foreign assistance from governments doubled from $52 billion in 2001 to $107 billion in 2005; and that year, the leaders of the industrialized nations gathered at the Group of Eight summit in Gleneagles, Scotland, and pledged a further doubling of aid to sub-Saharan Africa. But the Gleneagles promise is proving empty. The latest data show that governments gave less in 2006 than they had a year earlier. An analysis by the Center for Global Development projects that aid to sub-Saharan Africa will grow at less than half the rate promised at Gleneagles.

The West’s financial retreat is a policy retreat, too, because an alternative patron of poor nations is emerging in the form of China. So long as Western governments dominated the aid business, African governments had reason to listen to their advice on fighting corruption and building institutions. But as Western aid budgets tighten, more African leaders will turn to China for cash and technical assistance. China cares little for controlling corruption and still less for democratic notions of accountability. Even though China has developed marvelously itself, its new sway in Africa is likely to set back the struggle against poverty.

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