However, although widely expected to be disbursed in the form of grants, the money will be administered by the World Bank mainly in the form of concessionary loans that poor countries will have to pay back to Britain with interest, the Guardian reported. The fund, which Britain hopes will attract 1.5 billion pounds, is to be launched in Japan at the summit of the Group of Eight (G8) industrialised countries in July.
The newspaper quoted a letter from two government ministers - environment minister Phil Woolas and international aid counterpart Gareth Thomas - as saying: “UK contributions from the environmental transformation fund… will need to be primarily concessional loans. We will also talk to other donor countries about the possibility of grants. The US, however, preferred giving grants rather than loans....Several countries joined environment and development groups to condemn the loans. “We need urgently to prepare for climate change, but we are not in a position to pay back loans,” said a spokesman for the Bangladesh high commission in London. “The climate situation has not been created by us. The money should come spontaneously from rich countries and not be a loan.” Bangladesh expects up to 80 million people to be displaced by climate change within 50 years.
A senior Brazilian diplomat was “indignant” that poor countries should have to borrow the money to prepare their populations for climate change. “It is not nearly enough money to tackle the problem, but I am not surprised. Increasing the debt of countries is not a good idea.”...
Soviet propaganda poster from around 1950. The text: "Who gets the national income? In the capitalist countries, the lion's share of it is collected by the exploiting classes. In the USSR, it is the working people who get it!" The chart behind the happy Soviet shopper (who holds packages with the names of Moscow stores) says "In 1950, the national income [will/did] exceed the pre-war level by more than 60%!" The artist's name might be "Gorovunov," from Wikimedia Commons