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Contributions from
the Column
Monitor
USA undermining generic pharma production
Germa-Russian President’s Programme extended
KfW Bank Group promotes good governance
Oil: World Bank and Chad reach agreement
Dispute over World Bank malaria programme
United Nations: Stalled reforms
International peacebuilding efforts inadequate
Liberia: UN negotiates timber embargo
Aid for more trade
06/2006
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World Bank and Chad reach agreement
The World Bank and the government of Chad have settled their dispute over the use of oil revenues for the time being and have resumed cooperation. The compromise both parties agreed to in late April – before the controversial presidential elections in Chad – provided for the Chadian government to reserve 70% of oil revenue for poverty reduction measures in future. The remainder may be diverted into the general national budget. Nonetheless, it may not be spent for military purposes. In return, the World Bank will release the loans it suspended this year after President Idriss Déby’s government unilaterally changed an agreement over the use of oil revenues (see D+C/E+Z 2006:2, p. 49).
That agreement, according to which 90% of oil revenues were to be spent on development, was a precondition for the World Bank’s decision to participate in the construction of the pipeline from Chad to the coast of Cameroon. The compromise now reached takes into consideration the government’s precarious budget position, which the World Bank maintains is further aggravated by the growing refugee problem in Chad. The Bank stresses that a final agreement with the government in the dispute over oil money is yet to be concluded. (ell)
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