Chad Purchases Weapons with Oil Pipeline Money.

• Author: Runyan, Curtis
• Position: World Bank funding misused on military spending - Brief Article

Chadian President Idriss Deby purchased S4.5 million worth of weapons with money from the controversial Chad-Cameroon oil pipeline project, despite his agreement with the World Bank that the funds would be used on education, infrastructure development, and other social programs. (See Update, September/October 2000.) "The World Bank insisted that it could guide expenditures," said Korinna Horta of Environmental Defense. "The Chadian government's actions show this is just not true."

Critics of the 650-mile, $3.7 billion pipeline project, which the Bank approved in June 2000, warned that the massive undertaking would disrupt communities, destroy rainforest, and fuel government corruption. "Local NGOs had said all along that the project should be delayed because there is no way to guarantee the money is spent on poverty alleviation measures," said Horta. "The environment, human rights, and stability end up being an afterthought."

The World Bank responded to these concerns by Imposing "unprecedented" conditionalities on Chad's use of oil revenues, promising "to transform oil wealth into direct benefits for the poor, the vulnerable, and the environment." The plan requires that 10 percent of Chad's oil revenues be set aside for future generations, 5 percent for...