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Topic: world bank and WTO rules
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ephemeral
rabble-rouser
Babbler # 8881
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posted 03 July 2005 10:05 AM
hope this is in the right forum...you know how when a country approaches the world bank for aid, the world bank offers aid on the condition that some product/service is privatized? and you know how, by WTO rules, a country can be penalized for denying business to a corporation? the corporation can sue a government for refusing to privatize its water or something, and the government has to pay to the corporation the amount in profits that the corporation would have made if it had been allowed to do business in that country. well, what happens when a country approaches the world bank for aid, and resists the pressure to privatize? i am pretty sure that it is denied aid, but is it also penalized further for resisting privatization? also, what happens if a corporation is allowed to step into the country, but does such a horrific job that the public drive it out of the country? (like water privatization in cochabamba, bolivia - ask me if you don't know much about it). is the country expected to return the aid it received? does it stop receiving aid?
From: under a bridge with a laptop | Registered: Apr 2005
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RP.
rabble-rouser
Babbler # 7424
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posted 05 July 2005 05:09 PM
I don't want to post an unthoughtful answer to this, but I can say that the WTO rules are well accessible.You are talking about 2 different things: The right of a foreign company to sue a government who interupts their business, and conditions for receiving aid. I'm also not sure if suing a gov't like that is just a part of NAFTA, or general WTO provisions. Using the Bolivian example, it seems to me that the gov't could be cut off by the World Bank AND be sued by the water company. I can't see them having to pay aid money back, but you never know........
From: I seem to be having tremendous difficulty with my lifestyle | Registered: Nov 2004
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