Thursday, March 19, 2009

THE WORLD BANK REQUESTS 7% OF ALL STIMULUS BILLS PASSED GLOBALLY

While nations across the globe try to pass stimulus packages into faltering economies, one request for capital may surprise even those that are attentive to the mounting financial difficulties of our times. The World Bank has called for "wealthier" countries to include 7% of their passed stimulus packages to go to them, in order to help less developed countries. The sum of the total amount from such a proposal would amount to between 10 - 12 billion, according to The World Bank.

While this suggestion may initially sound reasonable, and even palatable, it is important to note that the monies requested have debt attached from contributing countries. A larger issue, perhaps, is how will the monies be allocated, and under what terms? Furthermore, how will this indebtness affect the countries that accept the finiancial support? Will those countries have to give up natural resources in order to pay back debt? Before we support such a "blind" cause, there are many questions to still be answered.



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