molly.nosferatu
19.01.02, 19:06
Alan P. Larson, Under Secretary for Economic, Business, and
Agricultural Affairs
Washington, DC
January 10, 2002
....IDA Proposal
President Bush has proposed that the World Bank and other development
banks dramatically increase the share of funding provided to the
world's poorest countries as grants rather than loans in the social
sector and that these grants be used for education, health, nutrition,
water supply, sanitation and other human needs. It is time the
international community demonstrate support for this effort that is
important to achievement of international development goals,
particularly in Africa.
The call by President Bush to a bolder move away from loans towards
grants, coupled with progress under the HIPC initiative, holds the
promise of higher living standards for the least fortunate by
facilitating productivity-enhancing investments without adding to the
debt burden of the world's poorest nations.
The World Bank's own analysis indicates that the proposal for IDA would
have a gradual and modest effect on reflows.
