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home > publications > newsletter > 2006 > May 2006 > in the news > World Bank efforts
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By Christian Pfeifer

The International Herald Tribune and other international dailies report that World Bank president Paul Wolfowitz announced on 11 April his intention to push the fight against corruption to the centre of the Bank’s global efforts. Speaking in Jakarta, Indonesia, he stressed that corruption remained “one of the biggest threats to development in many countries”.

All Africa reports that the World Bank also plans to scrutinize the role of private firms in "exporting corruption" and to punish them where it is detected. The International Herald Tribune reports that the Bank has decided to freeze loans to several countries highly affected by corruption, including India, Kenya and Chad. Strong criticism of this strategy from Hilary Benn, UK Secretary of State for International Development, appears in a Financial Times article: “Only poor people will be affected”.

Critics stressed that the Bank should concentrate more on the supply side of corruption. A 20 April Reuters story quotes Max Lawson, policy advisor at Oxfam International: “Where the Bank can really deliver is by naming and shaming big companies that pay bribes.” Reuters further reports allegations by Steve Hellinger of Development GAP that the World Bank facilitated control of public infrastructure and other assets in borrowing countries by U.S. companies and other World Bank shareholders for 60 years.

According to Reuters, the Bank’s member states backed its anti-corruption agenda but insisted on a stronger voice in its implementation.