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3rd world gets $23b WB loan a year

Arms spending to be examined
WASHINGTON. Apr 37: The World Bank should examine how much a Third World na tion spend* on arms when considering making « k>an to that country, the head of the multilateral bank says, reports
The World Bank has to look at the level of military spend Ing to determine the capacity of a country to deal with devel opment Issue* (tn case) there
fo a tremendous diversion of resource* tn unconatructive 3d' LUnlTp'r^^nT^ Conable told a new* confer ence Friday
Ihe Bank I* the biggest ain gle source of aid to the Third World, lending over 23 billion dollar* a year. Conable s prede ceaaor* have been wary of military issues, since the Bank Is owned by 155 countries and some of them are under mill tary dictatorship*
Conable said the United Nation* Development Programme will put out a report later this year suggesting ways of looking at the problem.
"Military spending is not purely a fiscal issue, because there s an emotional surcharge on it." he said. "But It does have fiscal consequences."
He added that each country has to be considered *epa ratety but that there are some rules of thumb that could be applied. He did not say what they were.
But one former president of the Bank. Robert McNamara, proposed tn a speech on Thursday that aid should de-Cnd on low military spending the country that gets it.
"It is. I believe an essential part of the solution to the waste represented by excessive rnllllary spending in poor countries/ he said in a Speech
McNamara was US Secretary of Defence under Presidents John F Kennedy and Lyndon Johnson
McNamara suggested that countries get special consider ation if they spend les* than 2 dollars a ye*r on security out of every 100 dollars of their total production.
The US Arms Control and Disarmament Agency lists 18 countries that spent 10 dollars or more out of every 100 dollars on security in 1988 They include Iraq. Libya. Syria. Israel. Jordan. Yemen and Vietnam
Dozens of others spent more than 2 dollars. A few spent less than I dollar, including Brazil. Costa Rica. Nigeria. Gambia and Zaire.
The Washington-based World Bank is a sister lending Institution of the International Monetary Fund. It provides development-oriented loans to around 40 of the world's poor nations at favorable terms.