For those interested in development issues the Private Sector Development
Strategy (PSDS) that makes World Bank loans conditional on privatisation
makes interesting reading.
The WB argues that improving the investment climate increases domestic and
foreign investment leading to capital accumulation, hence growth, hence
development.
Future WB loans are conditional on client LDCs implementing privatisation of
government run social services and infrastructure enabling efficiency gains
and increased output competition policy deregulation and strengthening of
property rights.
PSDS rises equity issues - access to essential private sector run social
services now depends on ability to pay. Subsidies are offered to the very
poor to ensure access. However subsidies impose high administration costs
and are open to leakage ie abuse Privatization of essential basic services
inevitably lead to deeper inequity, and safety nets fail to prevent this
Save the Children
See http://rru.worldbank.org/documents/PSDStrategy-April%209.pdf for details
and http://multinationalmonitor.org/mm2002/02september/sept02corp1.html for
an excellent critique
Maggie lives on...
Regards
Richard Young
AST Teacher of Business Studies, Economics & ICT
Deputy Head of VI Form - Year 12
Wood Green School
Woodstock Road
Witney OX28 1DX
Tel 01993 702355
Fax 01993 774961
www.woodgreen.oxon.sch.uk
BECTa/Guardian Secondary School Web Site of the Year 2001
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