Environmental activists could be hurting Third World countries by pressuring banks not to lend money to development projects that will benefit the worlds poor, says Neil Hrab of the Competitive Enterprise Institute.
Banks caving in to the demands of environmental groups are doing little to improve the lives of the poor, says Hrab. Consequently, many foreign governments are perturbed over what they view as foreign meddling by activist groups:
Indeed, Third World governments are becoming more outspoken in defending their projects, and some are looking at self-financing when banks refuse loans.
Hrab questions the effect that turning down such loans will have on banks, especially if developing countries view them as siding with anti-growth NGOs. Banks may wish to help preserve the environment, but should not do so at the risk of hurting the poor or jeopardising their own reputations, he says.
Source: Neil Hrab, No-Growthers Green Line Shouldnt Deter Bank Loans, Investors Business Daily, June 17, 2004.
For more on International Issues http://eteam.ncpa.org/policy/International_Issues/
FMF Policy Bulletin/ 6 July 2004
