Tuesday, October 6, 2009

World Bank Running Low on Cash

In times of crisis, nation states look inward first, and protect themselves first.

The Bank, whose job it is to support low-income countries, has had to hand out so much cash in the wake of the financial crisis that it faces a shortfall in what it can spare for new projects within 12 months.

“By the middle of next year we will face serious constraints,” said its president Robert Zoellick, as he launched a major campaign to persuade rich nations to pour more money into the Washington-based institution.

He conceded that such a task was likely to be extremely difficult, given the difficulties facing countries in the wake of the developed world’s biggest recession since the Second World War.

1 "World Bank could 'run out of money' within 12 months" - The UK Telegraph

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