Loans For Bureaucrats By Bureaucrats

The IADB loan to Guatemala for the purpose of "generating more tax revenue" is another example of the current inflation of funding promoted by international bureaucracy to pay the salaries of national bureaucracies.

Thursday, September 20, 2012


An article by Jose Raul Gonzales in the blog of Guatemala's economic think tank CIEN, reveals one of the many cases in which international financial organizations, supposedly created to help nations develop, engage in financing consulting activities, which end up being just expenses instead of financing real economic sectors.

González notes: "They say that [the loan is] for 'supporting reforms that will help increase revenue, strengthen tax administration and the control mechanisms of national and municipal debt.' What hypocrisy! Are we going to take on additional debt because national and municipal debt is out of control? It seems so. The loan is equal to nearly Q1, 900 million ($238 million) in more bureaucracy. Nowadays the SAT spends Q640 million ($80 million) a year, and the Ministry of Finance, another Q315 million ($40 million). The loan is more than double the budget of both entities. Who can be so naive as to think that the money will be used for anything other than to encourage more bureaucracy, more waste and corruption?

We are seeing another loan, in which the only winners will be those who get to spend the money, whilst Guatemalan taxpayers will have to pay the bill. This short-sighted vision of national and international bureaucrats will never take us down the so-called 'development route'. The ill-named Interamerican Development Bank has always been good at increasing our debt, but very bad to account for the benefits of its loans".

Another similar situation is the $100 million loan recently approved by the IADB for the Salvadoran energy bureaucrats. Said project is described as: "two-tiered loan, aimed at the institutional and policy-making framework. Its component are Macroeconomic Stability, Improvement and Consolidation of Institutional Capacity, Promotion of Renewable Energies, Bioenergy and Energy Efficiency; and improvements to Regulation and Promotion of private participation in the Electric Sector".

More information at the IADB website

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International Bureaucrat Promotes Greater Taxation

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An international bureaucrat, whose salary is exempt from paying taxes, is one of the main supporters of tax increases in Costa Rica.

Alberto Barreix, tax expert from the Inter-American Development Bank (IDB), boasts that he has supported more than 50 tax rises in various countries.

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