To change the way the World Bank lends money to developing countries
(reducing interest rates in global lending from the World Bank and making sure projects are run by countries where the projects are held)

The World Bank and International Monetary Fund (IMF) are the largest and most influential of the International Financial Institutions (IFIs). Along with smaller regional banks, they have a huge influence on the economies of developing countries.

Often referred to as the Bretton Woods Institutions, the decisions of the World Bank & IMF affect the lives of millions. However, the damaging strings that the World Bank & IMF attach to aid, loans and debt relief often make it more difficult for poor countries to effectively tackle poverty.

These strings and conditions, combined with the technical advice they give, often force poor countries to cut vital spending on health and education, or to privatise their public services.

Tying aid and debt relief to economic policy conditions such as privatisation is undemocratic, ineffective and often causes more harm than good.
Rich nations dominate the World Bank & IMF. For example, the UK has a bigger say at the IMF than all 42 countries of sub-Saharan Africa combined. Rich countries are also able to maintain influence over the institutions through the process of selecting leaders: the head of the IMF is always a European, while the head of the World Bank is always an American.

From www.actionaid.org.uk

We want the United Kingdom Youth Parliament to calling on the UK to use its influence in the World Bank to change two of its policies:

1) Reducing Interest Rates from Global lending from the World Bank

Many developing countries owe huge debts to rich countries and to institutions such as the IMF and World Bank. This means that they have to spend a large proportion of their tax revenues on paying back rich western creditors, rather than meeting the basic needs of their own people.

These debts not only hurt those in poverty, they are also deeply unjust. Often, loans were made by irresponsible creditors to corrupt regimes which are no longer in power. Some loans were for failed projects designed by creditors, often to meet western interests rather than the needs of the poor. Yet it is the poor, not the creditors, who pay the price of these mistakes.

From www.actionaid.org.uk

2) Making sure projects are run by countries where the projects are held

The world bank basically takes donations from developed countries such as the UK and America and lends it to less developed countries such as those within Africa. When the World bank or IMF lends money to there are often many strings attached, such as which organisations will run the project the money is spent on. It is often the case that the organisation will be a large corporation from one of the donor countries such as the UK or America.

By paying the money to a company from a UK or American country the money will go back to those countries rather than staying in the economy of the country which took the loan, where it would help build the economy and welfare of that country. However the country is still left with the debt!

In addition many of the other strings mean that the how the project is managed will be of more benefit to the donor countries than the ones taking the loan.

Example:

In Tanzania, Japanese funded advisors installed expensive diesel irrigation pumps instead of the conventional irrigation used in Tanzania. As the result of the high price of diesel, the cost of irrigation in now three times that of other areas. Only one in three pumps is now in use because no one can afford the diesel and no one is available to repair them.

How does your campaign have an impact on all young people?

This campaign relates to UK foreign policy so is not a devolved issues. It relates to the way we a a society interact with the world around us and the way the actions of our governments work to keep young people from other parts of the world in poverty.

What would be the ultimate goal of this campaign?

Ultimately we aim to get the UK Government to use its power and influence in the world bank to reduce interest rates from global lending from the world bank and make sure the projects its lends money to are run by the countries where the projects are held.

To do this we want to use a variety of tactics such as flash mobs, the organisation of a festival similar to live aid and meetings with decision makers to raise awareness of the issue and  encourage the public to lobby their MPs.

What challenges do you expect to face if this was to become a national campaign?

There are many challenges to this campaign, the World bank is a large multinational institution so it will be difficult to influence. America also holds the majority of the power in its decision making process. However in 2006 the UK withheld its donations to the world bank in protest over some of these issues, so we are optimistic we can get the UK to take a strong stance on the issues

news.bbc.co.uk/2/hi/business/5344752.stm