Protesters roast World Bank on '60th anniversary'

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WASHINGTON - Dozens of protesters wearing party hats and blowing noisemakers threw a mock birthday party for the World Bank and IMF on Wednesday to urge the lenders to cancel the debt of the world's poorest nations.

"It's no time for a party, it's time to drop the debt!" protesters organising the "Unhappy Birthday Party" chanted in a park across from World Bank headquarters in Washington.

This year marks the 60th anniversary of the foundation of the World Bank and International Monetary Fund at the Bretton Woods conference in July 1944.

The Jubilee USA Network, an advocacy group for the developing world, presented nearly 11,000 "Unhappy Birthday" cards to the World Bank at the party. The cards, asking the bank and fund to cancel impoverished country debt, were signed by people from 40 US states and more than 20 countries.

Critics say many poor nations are severely restricted by debt-servicing requirements that tie up resources and prevent them from addressing national needs.

Several thousand anti-globalisation protesters are expected to join rallies this weekend in Washington at semiannual meetings of the IMF and World Bank. One of their key demands is for the lenders to use their own funds to eradicate poor country debt.

World Bank spokesman Damian Milverton said using the lenders' reserve funds to cancel all debt would effectively put the institutions out of business.

The lenders use funds to help buffer the shocks of economic crises around the world.

Milverton said the World Bank and IMF are working to increase debt relief and to bring more countries into debt-reduction programmes such as the HIPC initiative for Heavily Indebted Poor Countries.

"Some countries are still paying too much on debt servicing but we are trying to bring those countries through the debt relief programme. Those countries that are coming through are seeing real savings, and putting them to effective use," he said, adding HIPC has freed up US$1.3 billion ($2.08 billion) a year for education, health and other social spending in 27 countries.

The World Bank advocates a three-pronged approach to poverty reduction comprised of debt relief, expanded international aid and free trade.

- REUTERS