UNITED NATIONS

Programmes providing small loans are not effective for reducing poverty, stated a report published by the United Nations Department for Economics and Social Affairs. The micro credit concept has gained a lot of popularity during the last 10 years. But according to the report, the programmes had many limitations when tried as a substitute for long-term aid projects. The funds expended were modest. However, the report said there were certain exceptions like the Grameen Bank in Bangladesh where the credit programme had succeeded. The author of the report, James Kanu, has warned against siphoning of development assistance funds away from agriculture, health education and infrastructure repairs to untested micro credit schemes.

The United Nations secretary-general, Kofi Annan, has said that globalisation is one of the most profound challenges facing the world. In his annual report to the UN General Assembly, he stated that "only universal organisations like the UN have the scope and legitimacy" to ensure that all states benefit from globalisation. According to him, global markets trade not only in economic goods but also in social ills. He expressed concern about African countries being left behind in development but blamed their governments for the worsening situation.