MP Welcomes Stand Against World Bank Conditionality

Loughborough MP Andy Reed has this week welcomed the decision by the Government to withhold £50 million of its contribution to the World Bank if the organisation does not provide satisfactory evidence of its successfully implementation of reforms to the way it attaches conditions to its aid.

The conditions imposed by both the World Bank and the International Monetary Fund breach the commitment made by the UK Government in 2005 not to force poor countries to liberalise their economies in order to receive aid and debt relief.

Andy welcomed the progress made at the Singapore meeting of the IMF and World Bank and the pledge by World Bank leaders to provide a detailed report on progress in overhauling the bank's application of lending conditions by November.

He also welcomed the announcement by the Secretary of state for international development Hilary Benn that he would only release the £50 million if the report was satisfactory.

Reed said:

“I am delighted that the government decided to take a stand against the World Bank’s use of conditionality to force countries to liberalise their economies.”

“The economies of many poor countries are often damaged by the conditions that the Bank attaches to their loans and hopefully this decision will put further pressure on the Bank to reconsider its policy on conditionality.”

“I am glad that this Labour Government has taken yet another step in the path towards making poverty history.”