Aaron,
The answer here seems to be that the WB should get back to its core function of funding specific development projects and get away from its involvement with the IMF in the structural adjustment programs. This has been proposed and may well be adopted. Barkley Rosser ==============
i concur. there was an interview with stiglitz in a recent edition of the Multinational Monitor (?/00) where he made a fairly convincing point that ties into the above (if anyone has a different opinion, i am all ears).
he said that countries have a fairly set amount of capital available for investment. by using only internal funds for development, they are depleting this capital reserve. however, external development loans (WB) do not diminish the available present native capital which could be used for schools, health care, etc. thus they could invest WB funds in addition to native capital...assuming that the WB loans are invested in a manner that would allow the debt plus interest to be repaid with comfort.
i wish he expanded on his last point more. i suppose he means that investment in schools equals a more educated workforce equals more productive workforce. or health care will allow for a lower absenteeism rate whcih means that the investment was "wise".
comments?
aaron