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policies in developing nations, may be more a dispute about speed than direction.
"The World Bank actively shapes energy policies in developing countries and should be backing green and low carbon energy.
It means altering international trade rules to prevent interference with domestic policies in developing countries designed to eradicate hunger and poverty.
Smith has clearly done her research but her critique of western aid policies in developing nations – namely, that financial aid is often ill-conceived, poorly executed and rarely sustained – is scarcely new or unexpected.
"For over two decades Itic has promoted tobacco-friendly fiscal policies in developing countries that have helped fuel the global tobacco epidemic, but governments and international organizations like the World Bank are increasingly realising that Itic is nothing more than a secret mouthpiece for big tobacco companies," said Matt Myers, president of the Campaign for Tobacco-Free Kids.
The Bank said two-thirds of global poverty reduction in the last half-century had been the result of faster growth, and that explained why it was using its financial clout to support policies in developing countries that led to a more rapid expansion in output.
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"Sharp swings in investor sentiment and financial conditions will continue to complicate the conduct of macro policy in developing countries," the report said.
Professor Stiglitz, a Nobel laureate who is reachable only by sending e-mail to a member of his staff, heads the Initiative for Policy Dialogue, a group he founded to explore alternatives for economic policy in developing countries.
Because the United States controls IMF policy in developing countries, the only three countries approved for the FCL have been Mexico, Colombia and Poland – three countries with right-wing governments (Álvaro Uribe was president in Colombia at the time) that Washington considers strategic allies.
This year's winner (the first awarded the prize in an even-numbered year) is Esther Duflo. Duflohas been a leader in using randomized field experiments to address important questions concerning public policy in developing countries.
Local content requirement (LCR) is a popular government policy in developing countries to regulate foreign direct investment.
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