World Bank Announces One Billion Dollar Loan To Bangladeshi Government

DHAKA (Reuters) - The World Bank said on Sunday it will loan Bangladesh $1.0 billion in the fiscal year to end June 2010 to counter gloabal financial crisis and also for the development of infrastructure. This is the highest Bangladesh has received in recent times."In the fiscal year the World Bank committed to allow more access to help the country struggling amid the global economic crisis," said Robert L. Floyd, acting World Bank country director for Bangladesh. In fiscal year 2009, the World Bank Group committed $58.8 billion globally to help countries struggling amid the global economic crisis, a 54 percent increase over the previous fiscal year and a record high for the global development institution. The South Asia region alone saw a marked increase of $1.1 billion in the fiscal year of 2008/09 from the previous year, as commitments rose to $6.6 billion.  Within South Asia, India was the largest borrower from the World Bank group, accounting for $2.242 billion. Pakistan was the second largest borrower with $1.609 billion, followed by Bangladesh at $1.096 billion, the bank said in a statement.

I will not argue that the World Bank of today is as intrinsically moronic and shortsighted implement of global capitalism as that of 15 years ago, mainly because that would be difficult to accomplish and I haven't followed recent changes closely enough.  However, it is worth your while to read about how the World Bank of back then is partially responsible for stymying industrialisation in Bangladesh and creating the need for a $1 billion loan now.  See the lin ked Mushtaq Khan pdf:

The World Bank had not only ignored dynamic viability, it had ignored the political mechanisms through which the public sector had maintained its loss- making potential while losing labour, thereby being able to produce cheaper products than the private sector. In an unusual step, in 1996 the private sector appealed to the Inspection Panel of the World Bank to investigate the terms and the implementation of the Jute Sector Adjustment Credit. The Panel confirmed that despite claims to the contrary by the World Bank management, the private jute manufacturing sector had indeed suffered adversely and Bank management had not followed Bank policies in the design and implementation of the Credit. However, the Inspection Panel decided not to recommend any further investigation or remedy on the grounds that the loan period was almost over and a new loan was not envisaged.

Awesome.

By: on 2 Aug 2009

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This is an impressive

This is an impressive website, Dr. Anon. Also, awesome news about Bangladesh!

Thanks!  But this is a group

Thanks!  But this is a group website - not my own.   If you're interested in getting more involved, you could register, post news, etc.

I don't know enough about this current loan to know how useful or unuseful it is, but Bangladesh's caretakeer government, from what I have heard from academics like Mushtaq Khan,  have spent way too much energy trying to meet a World bank agenda that focuses on anti-corruption measures rather than looking contextually at what effective industrialisation and political strategy would be - as Mushtaq does. 

You can find more of his writing at http://mercury.soas.ac.uk/users/mk17/.  He's very good about making it publicly accessible.

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