World Bank plans funding for Pridnestrovie till 2011

For the first time ever, the World Bank wants to help Pridnestrovie by funding projects. But critics warn of a U.S. policy bias

BENDER (Tiraspol Times) - Pridnestrovie will be one of the World Bank’s priorities in its next regional four year plan 2008-2011, according to World Bank Country Manager Melanie Marlett.

Such an objective will be the first of the kind, she told journalists, while also informing them that Pridnestrovie is now seen as a priority in the World Bank's National Development Plan (NDP).

Melanie Marlett said that the World Bank does not yet know what activities it will carry out in Pridnestrovie, but intends to open discussions on this topic with the authorities. The unrecognized country, which is also known under the name Transnistria, has never before received any help from the World Bank.

The new budget for Pridnestrovie-based projects has not yet been determined, but is now being assessed and will be announced in the course of January or February. Although led by two different governments, the World Bank nevertheless considers Pridnestrovie a part of Moldova for budgetary purposes and money for Pridnestrovie will be part of the approximately 30 million USD which Moldova receives annually from the World Bank. Until now, none of this money has ever reached Pridnestrovie.

Melanie Marlett said that the budget for the next three years of the International Development Agency, which grants preferential credits, will be $41.6 billion for 50 countries, including Moldova and Pridnestrovie. This money is earmarked for countries with per capita incomes below $1,150.

American bank and policy bias

U.S.-centric, the World Bank is located near the American White House, on 1818 H Street, in Washington DC.

Although the World Bank has 185 member countries, the President of the bank is always an American, nominated by the President of the United States.

The World Bank is currently led by Robert Zoellick, who was moved to his current job from a post as Deputy Secretary of State at the U.S. State Department. He took over from scandal-tainted Paul Wolfowitz, a "neo-con" former Deputy Secretary of Defense who resigned after a corruption scandal involving unauthorized bank payments to a girlfriend.

Critics of the World Bank say that its decision-making structure is undemocratic, as the United States effectively has a veto on all decisions even though the country merely holds just over 15% of the shares in the bank. It has also been accused of being an instrument for promoting American interests in developing and emerging countries, especially due to the way that it attaches policy requirements to funds that it disburses. These policies sometimes run counter to what the countries themselves feel should be implemented.

There are not yet any indications of what sort of strings will be attached to the funds provided to Pridnestrovie. (With information from Info-Prim Neo)

See also:
» Free trade: Transdniestria cancels import duties on Moldovan goods
» Economy still strong in spite of sanctions
» Pridnestrovie President supports growth in private firms, open economy

On the web:
» World Bank Broken Promises