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At a meeting of the members of the World Bank in Singapore today,
politicians from dozens of countries will discuss whether they are
for corruption or against it. A surprisingly large number will be
for it. Not that they will be asking for bribes themselves, you
understand: these are men and women of the highest integrity.
Rather, they will say that if aid to the Third World sometimes means
taking money from poor people in rich countries and giving it to
rich people in poor countries, then the World Bank should stop being
so agitated about it.
They will be
directing their anger against Paul Wolfowitz, the neocon architect
of the Iraq War, who has agitated many people in his time. Since
becoming president of the World Bank last year, he has earned the
opposition of member governments and many among his staff for his
zero-tolerance of corruption. When copies of the bills of the
President of the Republic of Congo, Denis Sassou-Nguesso, showed
that he had spent 169,000 pounds on putting up himself, his butler,
his personal photographer, hairdresser and about 50 other members of
his entourage at the marble-clad Palace Hotel in Madison Avenue, New
York, Wolfowitz listened to the anti-corruption groups which said
that oil wealth was benefiting the elite rather than the 70pc of the
population who live on less than 1.15 pounds a day. When he wasn’t
satisfied with the audits of the state oil company, he suspended
debt relief.
He has also
suspended hundreds of millions of dollars in loans to India,
Bangladesh and Ethiopia and taken a hard look at the cautionary tale
of Chad. In the late Nineties, optimists claimed the destitute
sub-Saharan state could provide a model for the poor world when the
World Bank agreed to fund a new oil pipeline on condition that the
Chadian government agreed to spend revenues on health and education.
The local dictator reneged on the terms, so Wolfowitz suspended aid.
Members of the
World Bank’s board have told the New York Times that he was
‘over-emphasising’ corruption while the French are complaining that
he is using it as an excuse to cut budgets. The figures don’t
justify the cost-cutting charge - World Bank lending has risen on
Wolfowitz’s watch - but I think I understand the roots of the
disquiet he generates. Wolfowitz is a conservative who, during his
career, has championed democracy in the Philippines and Indonesia,
feminism in Iran and opposition to Saddam Hussein in Iraq, causes
that were once the preserve of the liberal-left.
Once, when book
editors were heaping deserved praise on Reading Lolita in Tehran,
Azar Nafisi’s poignant account of educated women suffering under the
Iranian mullahs, I managed to silence a literary dinner party for
the first and I suspect only time in my life by asking if they
realised the ‘Paul’ Nafisi had dedicated her book to was Paul
Wolfowitz.
That aid money
should not go to bloated elites is something the liberal-left
supports. Indeed, it was James Wolfensohn, Wolfowitz’s
liberal-minded predecessor who first said that the World Bank must
take corruption seriously. Wolfowitz unnerves people because he
behaves as if he means it and throws up intractable dilemmas in the
process.
The paradox of
aid is that the more money a country needs, the more likely it is to
be stolen. The Republic of Congo and Chad have some of the poorest
people on earth. What should you do for them? If you send aid, the
odds are that the elites will steal money meant for others. If you
don’t, you lose the chance that some at least will get past the
thieves. If governments or charities make a fuss, they risk being
thrown out of poor countries. If they don’t, they collaborate with
the political systems that keep poor people poor. The Make Poverty
History Campaign, which supported last year’s Live8 concert, escaped
the dilemma by pretending it didn’t exist. In a speech last week,
Hilary Benn, the International Development Minister, did much better
when he acknowledged the problem and tried to find a way out by
emphasising good governance.
He opposed
Wolfowitz by asking: ‘Why should a child be denied education; why
should a mother be denied healthcare; or an HIV positive person Aids
treatment, just because someone or something in their government is
corrupt?’ Rather than suspend loans, the World Bank should help
build responsive and accountable governments. The trouble for Benn
is that regimes that inflict the greatest suffering don’t want to be
responsive. For Sudan’s genocidal rulers and the kleptomaniacs of
Zimbabwe, reform would mean loss of power.
I hope you can
see that Wolfowitz agitates so many people because he raises
questions that have no easy answers. I am not fit to provide them.
All I can suggest is that it would be a mistake for the French,
Oxfam, Christian Aid, Benn and all the rest of them to get into the
position where it is ‘neoconservative’ to oppose corruption.
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