Damaging economic policy conditions

The Bank is still imposing economic policy prescriptions on developing countries as a condition of their development lending. These conditions give developing countries little possibility to choose the economic and other policies they think best to reduce poverty, and they have often worsened the situation. The Bank should immediately stop tying their aid and loans to particular economic policies, such as privatisation, liberalisation and restricting public spending on health and education, and should allow countries to make their own policy choices.

Funding fossil fuel development

The climate change emergency requires action before it’s too late. The poorest are being hit hardest and hit now. The World Bank remains one of the main public financiers of fossil fuel development which contributes massively to global warming and is destined largely for Northern consumption and multinational profits. The Bank should immediately start a complete phase out of financing for fossil fuel operations and oil aid, and instead should significantly scale-up support for renewable energy and energy efficiency.

European governments can make a difference

European governments are the world’s largest aid donors and the main donors to the World Bank Group. They also have a very prominent presence on the board of the World Bank. In 2007, the World Bank’s funders, including European governments are reviewing their financial contributions. We urge European governments to use these contributions to leverage reform at the World Bank during the current funding “replenishment” round, to ensure that the Bank becomes an agency that acts in the interests of the world’s poorest people. If the Bank fails to stop using economic policy conditions and continues to push fossil fuels, these European governments should consider permanently redirecting funding away from the Bank through other mechanisms which respect country ownership and take the necessary leadership in addressing climate change.

A call to immediate action

European governments should act now. We call upon all European civil society organisations, trade unions, religious groups and business actors to raise their voice with us. The time has come to seriously question and change the role and policies of the World Bank. Change cannot wait.