World Bank loans
World Bank loans
It seems a pity that Donna Woodward in her turn appears to
have missed the main point which I at least perceived from
Jeffrey Winters' article. This was that if the World Bank
officials were aware that any portion of their funds were being
used for purposes which would not benefit the people of
Indonesia, then it should not be the responsibility of
Indonesians to repay the sums misused. It does seem clear that
the Bank officials were indeed aware of such misuse, and we are
now only arguing about the level -- which probably is
indeterminate, but it would appear that there is consensus that
it was at least 20 percent.
De Tray's threat that to default on the loan in this way would
result in abandonment by the Bank and the international community
is contentious to say the least. His wish to focus on the future
is understandable. But the people of Indonesia will spend the
next several decades with a millstone of debt around their necks.
Experience in other parts of the world has shown that this
will seriously hinder development. I do think there is a very
strong case for the Bank and the international community to
accept a degree of responsibility for this situation and explore
the possibility of debt relief for that portion of the loans
which manifestly did not benefit the people who must bear the
burden of their repayment.
CHRIS W. GREEN
Jakarta
It seems a pity that Donna Woodward in her turn appears to
have missed the main point which I at least perceived from
Jeffrey Winters' article. This was that if the World Bank
officials were aware that any portion of their funds were being
used for purposes which would not benefit the people of
Indonesia, then it should not be the responsibility of
Indonesians to repay the sums misused. It does seem clear that
the Bank officials were indeed aware of such misuse, and we are
now only arguing about the level -- which probably is
indeterminate, but it would appear that there is consensus that
it was at least 20 percent.
De Tray's threat that to default on the loan in this way would
result in abandonment by the Bank and the international community
is contentious to say the least. His wish to focus on the future
is understandable. But the people of Indonesia will spend the
next several decades with a millstone of debt around their necks.
Experience in other parts of the world has shown that this
will seriously hinder development. I do think there is a very
strong case for the Bank and the international community to
accept a degree of responsibility for this situation and explore
the possibility of debt relief for that portion of the loans
which manifestly did not benefit the people who must bear the
burden of their repayment.
CHRIS W. GREEN
Jakarta