Christian Aid Wants Benn to Press for World Bank Reform

After resolving a dispute over conditions attached to aid for poor countries, the UK government decided earlier in the week to release the £50 million it had withheld from the World Bank earlier this year.

Following the decision, relief agency Christian Aid is calling on UK international development secretary Hilary Benn to continue to use his influence to lever more reform at the World Bank.

"The task at hand is not complete," said Olivia McDonald, Christian Aid's senior policy officer.

"The World Bank's latest report shows that it is still attaching economic conditions to aid. It continues to push for privatisation and liberalisation, sometimes even under the guise of improving governance. This directly contravenes the government's own policy and it is hypocritical for us to continue funding the Bank when its economic policies have been proven to cause so much damage to poor people.

"Christian Aid applauds Hilary Benn's initiative on this issue. We urge him continue to be bold and to push for deeper, genuine reform. The UK is the World Bank's biggest donor after the United States. Mr Benn should use this financial clout to bring about lasting change - either by reducing the UK's next contribution to the Bank or by making it conditional on a total halt to economic policy conditions," said Ms McDonald.

The UK government announced the decision to withhold £50 million of its contribution to the World Bank in September regarding continued use of economic conditions on loans to poor countries. Since then, Christian Aid has pushed Benn, to go further.

Benn said the move was meant to hold the World Bank and the International Monetary Fund "to the commitments they have made to work closely with governments to ensure their conditions are drawn from national strategies and reflect national priorities". He said in a statement that his decision to release the £50 million "will depend on satisfactory progress".

Britain has been vocal in trying to secure a better deal for African recipients of aid. Prime Minister Tony Blair put African development at the centre of his presidency of the G8 wealthy nations last year.

In an interview with BBC radio, Benn said the World Bank was right to place conditions on its loans when such measures helped fight corruption and improve government openness.

But when it comes to economic policy choices, "I don't think it's right that we should be telling other countries what to do," he said.

Benn mentioned privatisation and opening up trade as areas where the World Bank should allow developing nations to chart their own course without interference.

"We're really saying to the bank, 'Can you please demonstrate that actually you are changing the way in which you use conditionality in relation to economic policy,'" Benn said.