Reaction to World Bank study

Hi Ted:

MANILA, Philippines -  Your recent article (“State banks corruption sources”, Sept. 15 2012) on state-owned banks. Although I have yet to read the whole World Bank report mentioned, my initial reaction to it is that this is again a “generalization” (as always, there could be a “rotten egg” in one basketful of good ones) of some sort, much the same in its report in 1989 stating that development banks are non-sustainable institutions (read: “dying”). Well, development banks (or more generally, development finance institutions or DFIs) are still very much “alive” today and are in fact cited for their countercyclical role and “filling in the gap” role during the recent (and lingering) global crisis. Not farther from home (Asia), DFIs were/are adequately used by governments to provide stimuli for SMEs as well as large industries and new growth economic drivers such as green technology projects. Obviously, since I work for an association of DFIs, I may be perceived as biased in favor of DFIs but I can say I am witness to most of their good work and advocacies during these challenging times. I do believe that there is a role to play for good-governed, well-managed state development banks in our part of theworld. 

Octavio B. Peralta

Secretary General

Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and World Federation of Development Financing Institutions (WFDFI)

2/F Skyland Plaza, Sen. Gil Puyat Ave.Makati City 1200, Philippines