BERD Is the Word

THE BUSH Administration has committed U.S. tax dollars to a new multilateral development bank for Eastern Europe—the Bank for European Reconstruction and Development. BERD is to be initially capitalized at $12 billion; the U.S. paid—in capital contribution is $73 million for next year alone. While the U.S. will be the largest single contributor-providing 10 per cent of the capital-the European Community will have a 51 per cent controlling majority. Under the proposed charter, 60 per cent of the BERD’s funds would be earmarked for private-sector activities, and 40 per cent for governments.

Establishing this bank is a serious mistake, for the following reasons:

RK

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Robert W. Kasten Jr.

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THE BUSH Administration has committed U.S. tax dollars to a new multilateral development bank for Eastern Europe—the Bank for European Reconstruction and Development. BERD is to be initially capitalized at $12 billion; the U.S. paid—in capital contribution is $73 million for next year alone. While the U.S. will be the largest single contributor-providing 10 per cent of the capital-the European Community will have a 51 per cent controlling majority. Under the proposed charter, 60 per cent of the BERD’s funds would be earmarked for private-sector activities, and 40 per cent for governments.

Establishing this bank is a serious mistake, for the following reasons: