Free trade and more aid are needed if the world is to meet the needs of developing countries and the UN Millennium Development Goals, according to officials attending the latest World Bank-International Monetary Fund meeting.

Participants at the annual joint Spring meeting of the World Bank and IMF, held in Washington, DC from 24-25 April, have agreed on the need to make progress in trade talks. Delegates also heard forceful speeches from World Bank President James Wolfensohn, IMF acting head Anne Krueger, and others on the need to increase support to developing countries. On trade talks, Krueger warned of the dangers of moving away from multilateralism into a fractured system based on regional and bilateral deals.
World Bank’s oil, climate policies condemned The meeting also saw the World Bank come under fire for its policies on oil and mining projects and climate change. The Bank’s support for fossil fuel projects was questioned by Dutch development minister Agnes Van Ardenne, who reportedly argued that the environmental impacts of such projects must be recognized. She also questioned the argument that such initiatives help combat poverty, suggesting that other more socially and environmentally-friendly options are readily available. Her statement appeared to support a recent recommendation that the Bank end its funding for oil, gas, and mining projects in developing countries. The recommendation, contained in the Extractive Industries Review report prepared by former Indonesian Environment Minister Emil Salim, apparently met with some skepticism from key figures within the World Bank. A group of major commercial banks have also opposed the report’s recommendations. However, the Dutch minister’s speech was welcomed by environmental lobby group, Friends of the Earth.
“Oil exploitation and mining have not brought benefits to impoverished people, but rather led to human rights abuse, increased corruption, depletion of resources, environmental damage and climate change,” said Elias Dias Pena of Friends of the Earth Paraguay. “We commend the Dutch government for taking this position, and hope other governments will follow this example.” The issue is to be discussed internally by the Bank in June.
Meanwhile, environmental and human rights groups have called for the World Bank’s climate change fund to be shut down. An alliance of 80 non-governmental organizations believe the Prototype Carbon Fund, which was set up to support projects that cut greenhouse gas emissions, is being used to support some projects that actually harm the environment or local populations. The Fund, which is designed to operate within rules established under the Kyoto Protocol, is supposed to contribute to sustainable development.
Links to further information
IMF press briefings and background information
World Bank press release, 19 April 2004
UN News Wire report, 26 April 2004
Friends of the Earth press release, 27 April 2004
Carbon Trade Watch press release, 19 April 2004
ENS news wire, 19 April 2004