From 21 to 1959, the IBRD had “more than two hundred loans … $4,500 million ($4.5 billion). Brooches, supra note 2, to 301. As of June 1994, IBRD had granted 3,660 loans worth approximately $250 billion, and IBRD and IDA had, together, provided 6,105 loans worth approximately $334 billion. WB 1994 Report, 8, circa 233. See also Infra Note 94. 16 The threats to deny repayment of World Bank loans referred to in Note 11 all appear to be based on political and economic reasons rather than legal reasons. However, as stated in text 102-05 infra, unprecedented legislative changes are under way in many former Soviet republics. In this climate of radical legislative change and uncertainty, the likelihood that internal pressure in the event of non-payment will occur in the form of legal challenges is halted, as the World Bank and other MDB loans in these countries are increasingly required to repay. For a review of certain other specific disputes that might arise if an MDB loan contract was expressly or implicitly subject to local law, see infra, Part V, of this article. 28 See the opera WB.
Man, supra note 12, at OP 7.01, `3-6 (July 1994). Most World Bank loans are project loans, not balance-of-payments loans. For a given project, described in detail in the loan agreement, a World Bank loan reflects decisions made through negotiations between World Bank staff and government officials on the specific goods and services to be acquired with the proceeds of the loan. See id. The World Bank also participates in balance-of-payments aid known as adjustment credits. This takes the form of loans that depend on the adjustment of certain economic and fiscal adjustments on the part of the borrowing country. See Head, Supranational Law, supra note 1, at 629; Shihata, supra note 1, with 25:27, 58:59. 7 z.B. Patricia Adams, The World Bank`s Finances: An International S-L Crisis, Pol`y Analysis No. 215 (Cato Institute), October 3, 1994, at 1 a.m. (affirming that the World Bank must be “closed” because “its irresponsible loans expose Western taxpayers to a possible World Bank bailout comparable to U.S.
savings and rescue loans); Carol Barton, Structural Adjustment: Deadly “Development, Global Advocates Bull., Oct. 1994, at 1, 2-5, 27, 31, 33-35 (World Bank critic for its structural adjustment credits). A more comprehensive assessment of the World Bank is generally that of Bruce Rich, Mortgaging the Earth – The World Bank, Environmental Impoverishment, and the Crisis of Development (1994). Rich says the World Bank`s credit has caused “profound damage to man and the environment” and expresses the hope that readers will exert political pressure to either “radically reinvent the institution or end its funding.” Id. to xii-xiii. Many analyses naturally go the other way. See z.B., Henry Owen, The World Bank: Is 50 Years Enough?, Foreign Aff., Sept.-Oct. In 1994, at 97, 108 (concluded that the criticisms of the right and left are false and that the World Bank has a good record). 53 A third sentence of provisions of the World Bank`s Terms and Conditions carries the legal status of World Bank loan contracts at the time of signing, that is, the legal meaning of the signing deed. Section 12.01 of the Terms and Conditions provides that a loan agreement and a guarantee agreement “take effect only when satisfactory evidence has been presented to the bank … That the implementation and delivery [of these agreements] have been duly authorized or ratified on behalf of the borrower and the surety by all necessary governmental and commercial measures.” IBRD 1985 Terms and Conditions, 14, No. 12.01 a.