Today, the World Development Movement (WDM) warns that Gordon Brown’s proposals at the G20 to salvage the global economy could be wrecked by contradictions between his tough talk on re-regulating the banking sector and the UK’s continued push for banking liberalisation in developing countries through European free trade deals.

The new report, ‘Taking the credit’, reveals the extent of the negative consequences of the financial services liberalisation pushed on developing countries through EU free trade deals. These deals would lift restrictions on how multinational banks, like Barclays, HSBC, Santander operate in developing countries. The World Development Movement’s evidence shows such deals would mean that poor people and small businesses lose out on access to credit and other banking services.

WDM’s report, and a summary can be found at www.wdm.org.uk/takingthecredit

March 11th, 2009 World Development Movement