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  • 20
    Feb
    2013
    7:06am, EST

    Almost $50 billion left Russia illegally in 2012, bank chief says

    Grigory Dukor / Reuters

    Russia's Central Bank Governor Sergei Ignatyev has generally kept a low profile during his 11-year tenure.

    By Douglas Busvine and Katya Golubkova, Reuters

    MOSCOW - Nearly $50 billion was transferred out of Russia illegally in 2012 and more than half this sum may have been controlled by a single group of people, the country's central bank said on Wednesday. 

    Sergei Ignatyev, chairman of the Bank of Russia, was citing the findings of a study that the bank said it would publish later on Wednesday. 

    "You get the impression that they (half the transfers) are all controlled by one well-organized group of people," Sergei Ignatyev, chairman of the Bank of Russia, told the Vedomosti daily in an interview.

    Ignatyev, who is due to retire in June, declined to identify the group in response to a reporter's question at the Federation Council, the upper house of parliament, where he was due to deliver an address.

    But the central bank analysis appears to be an indictment of President Vladimir Putin's brand of state capitalism, which critics say has allowed official corruption to flourish on a huge scale.

    'Bribes and kickbacks'
    It also marks an unusually strong intervention by Ignatyev, who during his 11-year tenure has kept a generally low profile, seeking to preserve the central bank's policy autonomy without pushing for full, Western-style independence from politics.

    Putin is due to nominate a successor to him in March, but no front runner has yet emerged.

    The central bank study found that $49 billion, or around 2.5 percent of gross domestic product, was spirited illegally out of Russia last year.

    "It can be payment for narcotics ... 'grey' imports ... bribes and kickbacks to officials (and) managers making large-scale purchases," Ignatyev told Vedomosti. "It can be schemes to avoid tax."

    Of the total, the central bank estimates that $14 billion is related to trade operations, with the remainder made up of $35.1 billion in "dubious" capital transfers.

    The latter represents 60 percent of last year's officially reported total net capital outflows of $56.8 billion, according to the study. 

    Related:

    Full Russia coverage from NBC News

    Copyright 2013 Thomson Reuters. Click for restrictions.

    19 comments

    Pffft. Compared to Wall St., The Chicago Board of Traitors and the Banksters this is chump change.

    Show more
    Explore related topics: business, russia, economy, europe, fraud, currency, finance, world-bank, graft, featured
  • 19
    Nov
    2012
    10:14am, EST

    No nation immune to climate change, World Bank report shows

     

    By Anna Yukhananov, Reuters

    WASHINGTON — All nations will suffer the effects of a warmer world, but it is the world's poorest countries that will be hit hardest by food shortages, rising sea levels, cyclones and drought, the World Bank said in a report on climate change. 

    Under new World Bank President Jim Yong Kim, the global development lender has launched a more aggressive stance to integrate climate change into development. 


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    "We will never end poverty if we don't tackle climate change. It is one of the single biggest challenges to social justice today," Kim told reporters on a conference call on Friday. 

    The report, called "Turn Down the Heat," highlights the devastating impact of a world hotter by 4 degrees Celsius (7.2 Fahrenheit) by the end of the century, a likely scenario under current policies, according to the report. 

    Climate change is already having an effect: Arctic sea ice reached a record minimum in September, and extreme heat waves and drought in the last decade have hit places like the United States and Russia more often than would be expected from historical records, the report said. 

    Such extreme weather is likely to become the "new normal" if the temperature rises by 4 degrees, according to the World Bank report. This is likely to happen if not all countries comply with pledges they have made to reduce greenhouse gas emissions. Even assuming full compliance, the world will warm by more than 3 degrees by 2100. 

    In this hotter climate, the level of the sea would rise by up to 3 feet, flooding cities in places like Vietnam and Bangladesh. Water scarcity and falling crop yields would exacerbate hunger and poverty. 

    Extreme heat waves would devastate broad swaths of the earth's land, from the Middle East to the United States, the report says. The warmest July in the Mediterranean could be 9 degrees hotter than it is today -- akin to temperatures seen in the Libyan desert. 

    The combined effect of all these changes could be even worse, with unpredictable effects that people may not be able to adapt to, said John Schellnhuber, director of the Potsdam Institute for Climate Impact Research, which along with Climate Analytics prepared the report for the World Bank. 

    "If you look at all these things together, like organs cooperating in a human body, you can think about acceleration of this dilemma," said Schellnhuber, who studied chaos theory as a physicist. "The picture reads that this is not where we want the world to go.

    Shocked into action
    As the first scientist to head the World Bank, Kim has pointed to "unequivocal" scientific evidence for man-made climate change to urge countries to do more. 

    Kim said 97 percent of scientists agree on the reality of climate change. 

    "It is my hope that this report shocks us into action," Kim, writes in the report. 

    Scientists are convinced that global warming in the past century is caused by increasing concentrations of greenhouse gases produced by human activities such as the burning of fossil fuels and deforestation. These findings by the UN's Intergovernmental Panel on Climate Change were recognized by the national science academies of all major industrialized nations in a joint statement in 2010.

    Kim said the World Bank plans to further meld climate change with development in its programs.

    Last year, the Bank doubled its funding for countries seeking to adapt to climate change, and now operates $7.2 billion in climate investment funds in 48 countries. 

    The World Bank study comes as almost 200 nations will meet in Doha, Qatar, from Nov. 26 to Dec. 7 to try to extend the Kyoto Protocol, the existing plan for curbing greenhouse gas emissions by developed nations that runs to the end of the year. 

    They have been trying off and on since Kyoto was agreed in 1997 to widen limits on emissions but have been unable to find a formula acceptable to both rich and poor nations. 

    Emerging countries like China, the world's biggest emitter of greenhouse gases, have said the main responsibility to cut emissions lies with developed nations, which had a headstart in sparking global warming. 

    Combating climate change also poses a challenge for the poverty-fighting World Bank: how to balance global warming with immediate energy needs in poor countries.

    In 2010, the World Bank approved a $3.75 billion loan to develop a coal-fired power plant in South Africa despite lack of support from the United States, Netherlands and Britain due to environmental concerns. 

    "There really is no alternative to urgent action given the devastating consequences of climate change," global development group Oxfam said in a statement. "Now the question for the World Bank is how it will ensure that all of its investments respond to the imperatives of the report." 

    Kim said the World Bank tries to avoid investing in coal unless there are no other options. 

    "But at the same time, we are the group of last resort in finding needed energy in countries that are desperately in search of it," he said. 

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    18 comments

    News Flash: Science confirms Climate Change Crisis “WILL NOT”happen. 26 years of science saying a climate change crisis could happen and never saying it “will” happen is as good as saying it “WILL NOT” happen. Not one single IPCC crisis report isn’t showered …

    Show more
    Explore related topics: climate-change, world-bank, featured, commentid-featured
  • 16
    Apr
    2012
    1:11pm, EDT

    World Bank picks health expert Kim as president

    By msnbc.com news services

    The World Bank on Monday chose Korean-born American health expert Jim Yong Kim as its new president, maintaining Washington's grip on the job and leaving developing countries questioning the selection process.

    Kim, 52, won the job over Nigeria's widely respected finance minister, Ngozi Okonjo-Iweala, with the support of Washington's allies in Western Europe, Japan, Canada and some emerging market economies, including Russia, Mexico and South Korea.

    Unlike previous World Bank elections, the decision was not unanimous. "The final nominees received support from different member countries, which reflected the high caliber of the candidates," the Bank said in announcing its board's decision.

    Kim, president of Dartmouth College, will assume his new post on July 1 after the Bank's current president, Robert Zoellick, steps down.

    The United States has held the presidency since the World Bank's founding after World War Two, while a European has always led its sister institution, the International Monetary Fund.

    Unlike previous heads of the World Bank, Kim is not a politician, a banker or diplomat. He is a trained physician and anthropologist who has worked to bring health care to the poor in developing countries, whether fighting tuberculosis in Haiti and Peru or tackling HIV/AIDS in Russian prisons.

    There had been a three-way contest for the presidency of the poverty-fighting institution until Friday when former Colombian finance minister Jose Antonio Ocampo withdrew. He said the process, which was meant to be based solely on credentials, had become highly political.

    South African Finance Minister Pravin Gordhan welcomed the fact that non-Americans competed for the post for the first time, but also said there were concerns the process was not fully merit-based.

    "I think we are going to find that the process falls short of that," Gordhan told the Foreign Correspondent's Association in South Africa, adding that there were also "serious concerns" the decision was made without full transparency.

    Reuters contributed to this report.  

    Show more
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  • 28
    Feb
    2012
    11:42am, EST

    Chinese protester: World Bank will 'ruin China'

    A Chinese protester disrupts World Bank President Robert Zoellick during a press conference in Beijing Tuesday shouting, "this report from the World Bank is poison!" NBC's Ed Flanagan reports.

    By Ed Flanagan, NBC News

    BEIJING – These days it seems everyone has an opinion about what China’s economy needs to do to continue to prosper.

    Yesterday was the World Bank’s turn to give its two cents as it released a new joint-report with the Chinese Development Research Center entitled, “China 2030: Building a Modern, Harmonious, and Creative High-Income Society.”

    The ambitious report attempts to lay out a new development strategy for China that emphasizes a gradual transition to a market economy, serious economic and labor reform and an eventual shift from an economy powered by state-owned businesses to private enterprise.

    It was that latter condition that appeared to be a step too far for Du Jianguo who created a stir during a press conference by World Bank President Robert Zoellick at the bank’s Beijing headquarters Tuesday.

    Du, a self-described “independent scholar of politics and economics,” stood up as Zoellick was talking and began to shout slogans like, “state-owned industry should not be privatized!” and “this report from the World Bank is poison!” 

    He also handed out an essay he had written, aptly titled, “WB [World Bank] Go home with your poison!”


    Privatization debate
    Du was pulled from the room by staff, but continued his protest outside where he claimed that the World Bank was corrupting China’s banking sector so much that it was beginning to resemble what he deemed a terrible role model: Wall Street.

    “The World Bank wants Chinese banks to become like Wall Street,” said Du. “Do they want Chinese banks to turn into liars and parasites?”

    Back inside the conference room, Zoellick acknowledged the intense debate that his bank’s report had generated in China between nationalists and economic liberalizers on the mainland, but defended it by saying that was “the point of any good research report.”

    The debate comes at a sensitive time in China as it gears up for a leadership change later this year and a possible change in economic strategy under presumed future-President Xi Jinping.

    The drive for greater economic liberalization and an increased focus on private enterprise by supporters of the study would come at the expense of expansive governmental support for state-owned enterprises that have become economic titans in China due to access to low-cost credit from state banks and protection from foreign competitors.

    Proponents of the state-driven model argue that state-owned enterprises are a source of national strength and pride and should be protected.

    Not so say others, who argue that private enterprise actually creates more jobs in China and should be nurtured to spur renewed growth.

    Such proponents of economic liberalization will face a tough slog against men like Du, who are unabashed skeptics of the World Bank and made it a point to say so.

    "We have no reason to accept their poison,” said Du later of the World Bank. “After they ruin China, they will ruin the whole world."

    58 comments

    Dont blame the chinese for doing what is good for China. We could learn a lot from them in terms of putting our countries interests first and not cow towing to international companies that will sell us out for a buck.

    Show more
    Explore related topics: china, world-bank, featured, market-economy, robert-zoellick, ed-flanagan

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