Wolfowitz Corruption Drive Rattles World Bank

The World Bank’s goal is to alleviate poverty by providing low-interest loans to some of the poorest countries in the world. Yet those poorest countries also have high rates of corruption. Critics of World Bank leadership question whether the fight against corruption will take priority over the fight against poverty, eventually diminishing assistance to the countries most in need. Critics express concern that countries will be categorized as corrupt or not, with funding dispersed to the latter. The World Bank has blacklisted some firms accused of corruption and encourages other aid organizations and lenders to follow suit. No exact figures are available on World Bank fraud, but some estimate that 10 to 25 percent of funds could end up in the wrong hands via kickbacks, extravagant purchases unrelated to projects, rigged bids and bribes. Regardless of World Bank funding, routine corruption in any nation concentrates wealth in the hands of a few, destroys social trust and increases global poverty. – YaleGlobal