Tuesday, September 19, 2006

Is the World Bank itself corrupt?

Fighting corruption is an essential part of overcoming poverty, World Bank President Paul Wolfowitz said on Monday, but he acknowledged that donors should not penalise poor people for the abuses of their leaders by withholding aid.

Wolfowitz, who has championed fighting corruption since becoming chief of the bank last year, has come under fire from Britain and several African nations for blocking more than £500million in aid to either countries believed to be involved in illegal activities or such projects where there reports of graft.

According to the World Bank, £500billion in bribes change hands worldwide every year.

As this article states, the World Bank cannot really occupy the moral high ground when it comes to corruption for the World Bank is itself a fundamentally corrupt organization because it lives off taxes and taxes are extorted funds, collected coercively by governments that threaten to rob people of everything if they fail to pay up.

It appears that whatever efforts that the IMF/World Bank has made to reduce poverty has helped to enrich various crooked leaders while leaving the poor just as they were.

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