World Bank rebuked for fossil fuel strategy

"The World Bank's drive to promote fossil fuel-generated power for 1.6 billion people lacking electricity will drive developing countries deeper into debt, a report by a development thinktank claims today.
Fossil fuels, such as oil, gas and coal, will never provide enough power for developing nations because of the cost of connecting remote communities to a national grid, whereas renewable forms of electricity generation could provide a cheaper solution, the New Economics Foundation says.
The subsidies paid by the World Bank and export credit agencies to fossil fuel industries to expand in the developing world, particularly Africa, are driving countries deeper into debt rather than helping the poor as is the declared intention, stresses the foundation. It criticises the president of the World Bank, James Wolfensohn, who has dismissed renewables as an expensive solution. The report says Mr Wolfensohn "at best has a bad grasp of basic economics and at worst reflects the entrenched interests of the Bank's major donors, the fossil fuel industries".
Rural communities in poorer countries, particularly in Africa, are often many miles from any kind of power grid. On current trends, in 2030 there will be more people relying on wood and dung for cooking and heating than there are now, according to the International Energy Agency.
But with small-scale hydro-electric schemes, wind and solar power, developing world villages could become self-sufficient in power. And the death rate among women and children from respiratory diseases brought on by fumes from unsuitable stoves would fall dramatically."