On the other hand, the Provisions of the World Bank refer only to the possibility that a dispute could be resolved “with the agreement of the parties.” See IBRD 1985 Terms and Conditions, see 14, 10.04 a). 14 See International Bank for Reconstruction and Development, General conditions Applicable on Loan and Guarantee Agreements – Dated January 1, 1985, 5.08 [IBRD 1985 general terms and conditions]. How these terms and conditions of sale are included in a particular loan agreement is discussed in the text under and infra 27-44 below. 12 IBRD and IDA can both provide loans to Member States, state-owned enterprises or private entities. When a loan is granted directly to a public company or private body, the IFP is necessary (and IDA is authorized) for the loan to be guaranteed by the government of the Member State in which the project is being implemented. See article of the International Bank`s agreement for reconstruction and development, July 22, 1944, art. III, No. 4(i), 60 Stat. 1440, 2 UNTS 134, modified 16.
1965 16 UST 1942, 606 UNTS 294 [hereafter the IBRD Charter] (which came into force on 27 December 1945), reprinted in the amended version of 17 December 1965 in 1 basic documents of international economic law 427 (Stephen Zamora – Ronald A. , 1990) [hereafter basic documents]; Article of the agreement of the International Development Association, January 26, 1960, art. V, 2 (d), 11 UST 2284, 439 UNTS 249 [hereafter the IDA Charter] (came into force on 24 September 1960). As IDA`s objective is to reduce the external financing burden of poorer countries, IDA loans (technically called “loans”) have traditionally been granted only to Member States, not to state-owned enterprises or private bodies. Aron Broches, The World Bank, in International Financial Law-Lending, Capital Transfers and Institutions 251, 262 n.72 (Euromoney Publications, 1980); WB 1992 Report, p. 1, 4 a.m.; The World Bank, World Bank Operational Manual, at OP 7.00 `2, `3 n.4 (loose-leaf, July 1994) [hereafter the opera WB. Man.]. The ADB, IDB and AFDB also all or almost all loans to states and state-owned enterprises. See John W.
Head, International Contracting Opportunities Under Projects Financed by the World Bank and Related Institutions, Int`l Contract Advisor, Spring 1995, at 41, 44 [contracting]. The EBRD is required in its charter to benefit from 60% of its loans to the private sector (i.e. entities that are neither (1) owned or controlled by the State, and (2) to benefit from a guarantee from the State or a State entity), while it has had difficulty achieving this objective due to changes in political conditions in its countries of activity. See Head, Supranational Law, supranote 1, at 647-48. See also Matthew H. Hurlock, New Approaches to Economic Development: The World Bank, the EBRD, and the Negative Pledge Clause, 35 Harv. Int`l L.J. 345, 372 (1994).
The IFC provides loans exclusively to the private sector. See IFC 1994 Report, 8, at 1. 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.