Subscribe to our free daily newsletters
  Energy News  




Subscribe to our free daily newsletters



TRADE WARS
US slams World Bank lending to rich countries like China
by Staff Writers
Washington (AFP) Nov 8, 2017


World Bank lending to countries like China that are rich enough to finance their own development hurts poor countries that need help, a senior US Treasury official said Wednesday.

David Malpass, Treasury's under secretary for International Affairs, cited China as a prime example of the practice, as the World Bank's biggest borrower with $2.4 billion in loans this year.

The Trump administration will push the World Bank to move countries towards graduation, as their economies grow and they are able to access private sources of financing, he told a House subcommittee.

"Many graduation-eligible countries, even those with strong market access, have continued to demand (World Bank) financing," he said in prepared testimony. "Adherence to the graduation policy has progressively weakened."

Malpass said that since 2009, countries eligible for graduation from World Bank aid have received, on average, 40 percent of the institution's lending. Currently 25 countries have incomes above the graduation threshold, and six are considered high income, exceeding $12,475 per capita.

However, income is only one factor taken into consideration when the World Bank decides whether to graduate a country. And some countries that graduated had to resume borrowing, including South Korea during the Asian financial crisis of the 1990s.

The current income level to begin to consider graduation is $6,895 per capita, and while Malpass singled out China, it was just over $8,200 last year. Uruguay was nearly double that figure at $15,200, according to World Bank data.

A World Bank spokesman told AFP the institution's shareholders -- of which the United States is the largest -- "are engaged in ongoing discussions over how to support countries in moving up the development spectrum to increase their contribution to global growth and stability" and to "maximize finance for development."

- Move to graduate -

Malpass, however, said the World Bank has failed to follow its own guidance and pursue discussions with countries ready to graduate, to phase them out of the lending program.

"Treasury has not found these graduation discussions to be serious or meaningful," he said. "We have strenuously argued for a more rigorous, transparent, and rules-based process."

He acknowledged that lending to richer countries helps the quality of the institution's portfolio, but said, "We think the World Bank can do a better job meeting its commitments to poorer countries while still pursuing a financially sound business model."

"An overriding objective for the administration is to ensure the World Bank is directing its resources to the people who need them most in the countries with the least access to private capital."

Malpass, who was a senior economic advisor to President Donald Trump during his election campaign, also raised concerns about China slowing the pace of its economic reforms.

While Beijing has made some progress in promoting consumption and addressing financial sector risk, he said, the US is "concerned that the liberalization seems to have slowed or reversed."

"China's unfair trading practices are unsustainable and harmful to the growth and prosperity of the US and many other nations," he said.

"The administration is committed to achieving a fair and reciprocal trading and investment relationship with China, including through market-based reforms."

TRADE WARS
China factory activity steady in October: independent data
Beijing (AFP) Nov 1, 2017
Chinese factory activity stabilised in October, according to independent data released Wednesday, one day after a disappointing official reading suggested output growth had slowed. The world's second-largest economy registered 6.8 percent growth in the third quarter of the year, down from 6.9 percent in the first two quarters. But experts have warned of a slowdown ahead as the country ti ... read more

Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Improving sensor accuracy to prevent electrical grid overload

Japan faces challenges in cutting CO2, Moody's finds

IEA: An electrified world would cost $31B per year to achieve

'Fuel-secure' steps in Washington counterintuitive, green group says

TRADE WARS
Scientists make progress in quest for fusion energy

Cool textiles to beat the heat

A novel layered superconductor based on tin and arsenic

Scientists design smart paper capable of detecting water, conducting electricity

TRADE WARS
New York sets high bar for wind energy

Construction to begin on $160 million Industry Leading Hybrid Renewable Energy Project

A kite that might fly

Scotland outreach to Canada yields wind energy investment

TRADE WARS
China Saves the World, and America Too by Going Off-The-Grid

In Morocco, a blue tourist town is turning green

Mechanochemistry paves the way to higher quality perovskite photovoltaics

OMCO Solar expands to met demand for field-fast racking systems

TRADE WARS
AREVA NP introduces FORERUNNER robot to optimize steam generator inspections

France backtracks on nuclear power reduction target

Nuclear energy programs may not increase likelihood of proliferation

Bulgaria extends life of Soviet-era nuclear reactor

TRADE WARS
Sandia speeds transformation of biofuel waste into wealth

Study identifies additional hurdle to widespread planting of bioenergy crops

Penn researchers mimic giant clams to enhance the production of biofuel

Research aims to help renewable jet fuel take flight

TRADE WARS
An effective solution for collecting spilled petroleum

Oil price response to OPEC report on demand muted

Statoil makes headway with Barents Sea field development

Iraq targets 1 million bpd output for disputed Kirkuk oilfields

TRADE WARS
Developing world says rich nations shirking on climate

Cities can cut greenhouse gas emissions far beyond their urban borders

Syria to join Paris climate pact, isolating US

EU to cut car emissions to meet climate targets, rival China




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement