This was one of the reasons that Paribas was chosen in the funding agreement in the Iraq Oil-for-Food Programme. The technique of oil pre-financing consists of loans secured on future oil revenues. It was developed in the 1970s by Marc Rich and his commodities brokerage Glencore and has been designated by the UN and the World Bank as a cause of impoverishment of oil producing countries and as one of key phenomena of kleptocracy.