Anne Williamson identifies the World Bank’s switching from loans to grants as one of the policies designed to help the empire solidify control of the “third world.” Among other benefits an outright grant avoids the problems that arise when one of the World Bank’s clients defaults on their loan. Grants will also facilitate the placement of American “advisors” throughout countries “benefiting” from the bank’s generosity. These advisors will make sure the recipient governments stay loyal to the empire. Perhaps this is why the conservative establishment has endorsed replacing loans with “performance-based grants” (e.g. the World Bank will give money to governments who obey the US).

Thanks to Daniel for brining Williamson’s article to our attention.