Rethinking FinanceAlternative voices for a new financial architecture

As talks aim toward an agreement on climate finance in December in Cancun, fault lines remain about the role of the World Bank. Contradictions in recent Bank lending and contributions to alternative financing mechanisms have fuelled ongoing debates about the Bank’s role.

The global economy is passing through a period of profound change. The immediate concern is with the financial crisis. Simultaneously, climate change remains unchecked, with the growth in greenhouse gas emissions exceeding previous estimates. Finally, malnutrition and hunger are on the rise, propelled by the recent inflation in global food prices. These three crises interact to undermine the prosperity of present and future generations.

Reminiscent of the New Deal introduced by the United States in the midst of the Great Depression seventy-six years ago, the current crisis, perhaps even more severe than the Great Depression, also needs a New Deal, but one with two additional adjectives - namely, being global to include developing countries and sustainable, both socially and ecologically.