Huge pension fund pulls out of world bank

NEW REPORT SHOWS TIAA-CREF SOLD REMAINING WORLD BANK BONDS

Campaign Commends Pension Fund Giant for Decision, Encourages Other Funds
to Follow Lead


WASHINGTON, DC -- The World Bank Bonds Boycott campaign confirmed today
that TIAA-CREF, the nation's largest private pension system with more than
$275 billion in assets under management, has sold its remaining holdings of
World Bank bonds. The confirmation was made following the release of the
TIAA Investment Profile 2002 this month which showed no holdings of World
Bank bonds in that fund.

"We commend TIAA-CREF for its decision to sell its World Bank bonds, and we
want to encourage other pension funds to follow their lead," said Neil
Watkins, the campaign's coordinator at Center for Economic Justice.

TIAA-CREF acknowledged in November 2002 that it had sold holdings of World
Bank bonds in three of its funds, but at the time it was unclear as to
whether TIAA-CREF had sold a fourth bond holding, in the TIAA traditional
account. "With the release of the TIAA Investment Report 2002, we are now
able to confirm that TIAA-CREF is fully out of World Bank bonds," said Watkins.

In a statement on November 6, 2002, a TIAA-CREF spokesperson confirmed that
the pension fund had sold off three of its bonds, citing financial
reasons. "We have held World Bank bonds and we no longer do," TIAA-CREF
spokesman Patrick Connor told AFX News - Global Ethics Monitor at the time.
"The only reason we don't have them now is that the returns would not be as
attractive as other investments," said Connor.

The World Bank Bonds Boycott campaign announced today that its next step
would be to work with TIAA-CREF members to urge the fund to consider
adopting a formal policy against purchasing World Bank bonds in the future.

The campaign will also target other private and public pension systems
around the U.S. to sell their World Bank bonds or at least adopt a policy
against future investment. The World Bank Bonds Boycott urges pension funds
and institutional investors to consider both financial and social risk
factors associated with investing in World Bank bonds. One financial risk
factor to consider is that a growing number of World Bank borrowers have
defaulted or are considering default on payments to the institution. The
campaign has produced an analysis of risk factors associated with holding
World Bank bonds, which is available at
 http://econjustice.net/wbbb/tools/WBB_Risk_Assessment.pdf.

The World Bank raises a majority of its funds by selling bonds. Launched by
civil society organizations from more than 35 countries in 2000, the World
Bank Bonds Boycott campaign has organized more than ninety institutional
investors to commit not to buy World Bank bonds, including eight U.S.
cities, dozens of religious institutions and labor unions, and ten
investment funds in the US with assets under management of more than $16
billion. The boycott calls on the World Bank to cancel its debt claims
against impoverished countries, stop promoting privatization and
macroeconomic austerity programs, and stop funding oil, gas, mining and dam
projects.