Gary Duncan, Economics Editor of The Times, says from Singapore that the World Bank will find it hard to ignore Britain's threat to withhold £50 million in funding if the Bank does not stop imposing economic conditions on poor countries:

"It is pretty unusual for a Government that has been as supportive as the UK has been on the whole issue of Third Wold development, and which is pivotal to the debate about the World Bank and IMF, to make such a vocal and public criticism of what are clearly core aspects of the World Bank's work.

"It's certainly going to hit home and to be taken seriously by everyone from Paul Wolfowitz, the World Bank President, downwards.

"Fifty million pounds is not a huge amount in the big scheme of things, not for the World Bank, but the fact that Britain has chosen to go public on it means that the World Bank will have to take it seriously.

"Mr Benn is also due to make a speech in London tonight to Transparency International, which campaigns against corruption, at which he is expected to question the World Bank's focus on corruption under Mr Wolfowitz.

"There are two points that are linked but should not be conflated. The £50 million is being withheld because of requirements that countries pursue certain policies, market liberalisation, privatisation etc. Mr Benn believes that the World Bank has not made enough progress on limiting that conditionality.

"Mr Wolfowitz himself is bound to be grilled about both these issue at a press briefing here in Singapore on Friday morning.

"One aspect of this is that rightly or wrongly Mr Wolfowitz is seen as the hard face of the Bush Administration, an ideologue installed at the World Bank to carry out a neocon agenda in the development world. A big part of the criticism from NGOs of the World Bank and IMF is that they foist a one-size-fits-all policy on the countries where they work.

"Personally I feel that Mr Wolfowitz has got a strong case for pursuing anti-corruption policies. But the fact that the type of criticisms that usually come from the NGOs are now coming from the British Government will fuel the debate."

Explore World News

• World Agenda

• Iraq News

• US & Americas News

• Europe News

• Middle East News

• Afghanistan News

• Asia News

• Africa News

• Ireland News

Times Recommends

• Experts baffled by vanishing sea lions
• CIA caught in a dirty and secretive war
• Double life of Umar Farouk Abdulmutallab