World Bank Complicit in Indian Corruption

A recent Wall Street Journal article, World Bank Disgrace, (hat tip: Prakash Advani) reports that an internal review of five WB health projects in India totaling US$ 569 million in loans shows major corruption. The report begins with

Credit Robert Zoellick for knowing how to put the best face on a profound embarrassment. On Friday, the World Bank president announced in a press release that the bank had “joined forces” with the government of India to “fight fraud and corruption” in that country’s health sector. This is happening at the same time that Mr. Zoellick’s colleagues are hounding bank anticorruption chief Suzanne Rich Folsom, the person primarily responsible for bringing the scandals to light.

Joining forces with the government of India to fight corruption is reminiscent of joining forces with General Musharraf to fight terrorism. One bank managing directed is reported as saying that she is “encouraged by the Indian government’s “strong resolve” to deal with corruption.” Exactly like the strong resolve of the fox in guarding the hen house. We can now all sleep soundly since the Indian government has resolved to . . . whatever.

If your corrupt government is strongly resolved to deal with corruption, you might be a third world country.

PS: Let’s remember that all the stolen money is a WB loan to India. That means, we, the tax-payers in India, have to ultimately pay back all the embezzled funds.

2 thoughts on “World Bank Complicit in Indian Corruption

  1. shlok Thursday January 24, 2008 / 12:22 am

    interesting post.
    also, checkout http://babugiri.com
    A website targeting common man to express thoughts and share experiences dealing with corruption…

    Like

  2. ghostwriter Saturday January 26, 2008 / 3:50 am

    It gets worse before it gets better. The World Bank anti-corruption chief who was pushing hard against corruption just resigned (or was made to)
    http://online.wsj.com/article/SB120062149338899483.html?mod=googlenews_wsj
    The WB is an interesting place. No one wants to borrow from it because of the ‘shock therapy’ economics that it recommends. Lending has actually fallen and staff positions cut. Now Fulsom comes along and with Wolfowitz (who appointed her) basically says – if we find corruption we will suspend lending (which is what they did). This got them into problems with folks desparate to meet lending targets (google Graham Wheeler). I guess the folks that needed to meet lending targets won.

    But the approach of stopping funding if corruption was uncovered a good one. At least it limited the Indian tax payer’s losses in good time!

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