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May 14, 2004

World Bank and IMF Frauds

Vodkapundit tells us about the level of corruption at the World Bank : $ 100 billion and rising. And we've all seen UNScam. And as Stephen quite properly notes, Enron went bust rapidly when the scam was found out, yet nothing like this has happened to these international bureaucracies. ( I recall the comment from the Economist : Enron went bust as the markets reacted, in fact they reacted so swiftly that the bureaucrats had not even had time to sharpen their pencils.)
May I just push the envelope a little here ? What about the IMF? A little history :
1991 - late 1996 I lived and worked in Moscow, doing all sorts of stuff. Then 1997 I was based in California, going to Moscow once a month ( and that's some commute ). I remember being there when the IMF announced that it would support Yeltsin's Govt with a huge loan : several billion $. Whew, sighs of relief all round as we all knew that the Govt was bust. Hell, they were paying 130 % interest on Rouble T Bills. 10 days later the Govt defaults, half the banks go bust. And do you know what ? Those billions had also gone walkabout. Seems that the connected simply cashed the IMF cheque, exchanged all their roubles for those lovely new dollars and sent it all to Switzerland. $ 3 or $ 4 billion, yes, billion in 10 days.
Trawl through more of the IMF, World Bank and various International Aid programmes. My guess would be somewhere from 20 - 50 % of all of the money sent out gets used that way.
As Peter ( Lord ) Bauer pointed out : " Foreign aid is a way to take money from poor people in rich countries and give it to rich people in poor countries."
Abolish the lot of them.

May 14, 2004 in Scams and Frauds | Permalink


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