Monday, September 25, 2006

World Bank policy chiefs urge caution on anti-graft campaign


World Bank policymakers called for a cautious approach to combatting corruption and promoting good governance to ensure that the Bank stays focused on fighting poverty in developing countries.

"If we are to reach the poor, we must find ways of providing support for development in challenging environments," South African Finance Minister Trevor Manuel told a meeting of the World Bank Development Committee. "The Bank's new enhanced framework on governance and anti-corruption should not compromise the Bank's core mission of poverty reduction."

The committee's one-day session here was likely to be dominated by discussion of an aggressive anti-corruption campaign spearheaded by World Bank President Paul Wolfowitz.

While no one in the Bank opposes the initiative in principle, several members, notably Britain, France and Germany, are wary about attaching restrictive conditions to development assistance.

Wolfowitz's initiative would link Bank financial aid to commitments by beneficiary countries to good governance, such as transparency in public procurement, and anti-corruption measures.

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