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World Bank Approves Guarantee Mechanism to Protect Private Deals With Risky Third World Governments

(June 3, 1997) The World Bank’s Executive Directors have quietly approved a new guarantee mechanism to protect commercial lenders that make joint investments with governments in some of the world’s poorest countries. The new guarantee mechanism is unchartered territory for the World Bank. It is designed to make large power and infrastructure projects attractive to commercial lenders in high-risk countries with governments that are considered uncreditworthy.

World Bank ‘could be partly to blame’ but information may have been withheld

(April 22, 1997) The World Bank is partly to blame for the plight of villagers affected by the Pak Moon dam, a bank expert said yesterday. Resettlement specialist Warren Wicklin III said the bank may have failed to obtain full information on the project when it was proposed to the bank for financing which is one reason why affected villagers did not receive adequate compensation. "It’s possible the Thai government withheld information that could have had a negative impact on our decision-making but it’s also our fault that we didn’t try to obtain correct and enough information either," he said.