A tale of private funds in the 3rd World

Richard Brooks' article over at First Post is well worth a read.

He asks how Labour’s big business love-in has perverted a fund set up to help the poor saying that

as global food shortages devastate some of the world's poorest countries, a British government-owned international development fund set up 60 years ago this month stands accused of deserting them.

The CDC fund is 60 years old but has been ravaged by New Labour over the past 11 years

CDC soon established a reputation as an effective developer of businesses which, in awkward parts of the world and not spectacularly profitable, would have struggled to attract private investors.

But Labour has tried to expand the fund whilst not inserting more money by using private initiatives.In particular its chief executive requiring higher returns on projects resulting in what Oxfam said

"investments are in things like shopping malls... which cater to the wealthy elite or expatriate community. These have a neutral or even negative impact for the poor

By 2004,Hilary Benn had sold off the job of running the funding to private equity with predictable results.Record profits last year but invsetments in high return sectors such as power construction and mobile phones.Hardly helping the agricultural infrastructure.