Socially irresponsible programmes of transnational banks

Unsustainable use of transnational capital

Nature

Lending across borders to borrowers abroad is now big business for many transnational banks. Although transnational banks are increasingly engaged in socially responsible programmes in their home countries, they have not yet adequately extended similar programmes to the new market, although there are some examples (very few in number) in which transnational banks have extended this line of activity abroad. To the extent that the international market offers fewer opportunities for growth than in the early 1970s, many transnational banks recognize the importance of developing countries as a market.

Claim

The growing importance of developing countries as a market for transnational banks, especially for those with constituent or integral operations in developing countries, requires the extension of socially responsible programmes to these countries, such as, for instance, financing of training courses, small businesses and the like.

Foolish governments, promoting foolish projects, captured foolish loans, provided by even more foolish bankers. This festival of foolishness, that absolutely does not hour the capitalist system and offends democratic principles, brought dozens of third world countries to bankruptcy, in the most stunning impoverishment of the poor based on the enrichment of the rich (J K Galbriath).