Following yesterday's decision by the UK government to withhold £50 million of its contribution to the World Bank regarding continued use of economic conditions on loans to poor countries, Christian Aid is calling on international development secretary, Hilary Benn, to go further.

"We now urge Britain to go the extra mile and withhold all its monies," the charity's head of policy Charles Abugre said in a statement.

"This is a very welcome development and vindicates Christian Aid's long held belief that economic conditions imposed on poor countries by the World Bank and the International Monetary Fund can be disastrous for poor countries."

The money was earmarked specifically for the implementation of World Bank improvements. It is separate from Britain's main commitment to the Washington-based institution, which London said in 2005 would total £1.3 billion, or US$2.45 billion, over three years.

Benn said the move was meant to hold the World Bank and the International Monetary Fund "to the commitments they have made to work closely with governments to ensure their conditions are drawn from national strategies and reflect national priorities". He said in a statement that his decision to release the £50 million "will depend on satisfactory progress".

Britain has been vocal in trying to secure a better deal for African recipients of aid. Prime Minister Tony Blair put African development at the centre of his presidency of the G8 wealthy nations last year.

In an interview with BBC radio, Benn said the World Bank was right to place conditions on its loans when such measures helped fight corruption and improve government openness.

But when it comes to economic policy choices, "I don't think it's right that we should be telling other countries what to do," he said.

Benn mentioned privatisation and opening up trade as areas where the World Bank should allow developing nations to chart their own course without interference.

"We're really saying to the bank, 'Can you please demonstrate that actually you are changing the way in which you use conditionality in relation to economic policy'," Benn said.

Danny Leipziger, World Bank vice president for poverty reduction and economic management, said Benn's comments were the first he had heard of Britain's protest.

"If he'd said that 10 years ago I think it would have been a strong debating point," he told BBC radio from Singapore where he is attending IMF meetings, arguing that the bank had improved over the past decade.

Christian Aid has long campaigned against World Bank and IMF policies in the developing world. Yesterday, the charity led a rally 'The Beat Goes on', as hundreds marched by the Treasury to urge the UK government to withhold money from the World Bank and IMF. Popular celebrities such as Ronan Keating and Damien Lewis joined in the protest.