Lending institution

Lending institution

At least The Jakarta Post now refers to the World Bank
as a "lending institution" instead of donor. There is still
something wrong though. Countries that provide funding to the
World bank are still being called donors. Let's get this
straight: When the U.S. provides funding for the Eximbank
(informally known as the Boeing bank) it does not call itself a
donor. However, when it provides funding -- also for export
promotion -- to the International Bank for Reconstruction and
Development (informally known as the World Bank) it does.

Regardless of export promotion having damaged some countries'
competitiveness, it is the grease of trade because it creates
purchase power. Nothing against that, but why doesn't the World
Bank's president -- who is always an American -- call the U.S. an
export promoter instead of "donor?" It may not sound so virtuous
but it is closer to the truth.

It is profitable to be labeled a donor. According to Bretton
Woods Committee, Banking Success' The World Bank, the United
States and the Developing World, Washington D.C., 1988:
"America's interests in the World Bank are often overlooked, its
exports to World Bank projects exceeded US$1.6 billion in 1987,
which is more than the $1.5 billion it has made in direct cash
contributions over the institution's 40-year history."

OSALDO COELHO

Bandung, West Java