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coup d’etat… in action

Just today morning, I saw this news item blaring on my screen on the TOI website, India – Largest Borrower from World Bank! This was absolutely uncalled for… yet inevitable!

However, over the past few weeks, this subject has enthused me… and with my little research I have realized that the key objective of World Bank policies have been to strengthen the domination of certain countries over other, less-developed countries.

The Bank’s constant concern has been to maintain US global leadership and my reasons are:
1. The World Bank has never committed itself to promoting the development of developing countries.
2. The World Bank has supported dictatorial regimes.
3. The World Bank does not respect human rights. This can be seen in the cases of loans granted to colonial powers and the support given to the apartheid regime of South Africa.

So, how on earth can one affirm the conventional and popular belief that the World Bank’s main objectives are development and the fight against poverty, and that its decisions are based purely on economic assessment and not on political considerations. Goes back to my discussion on the EHMs… yet again. It’s all a big mess out there!

When the World Bank was created in 1944, publicly its role was supposed to be:
– To rebuild countries ravaged by World War II
– To help developing countries

However, on another level, its real function was to impose US economic and financial leadership. The World Bank did not concern itself with the development of developing countries at any time in its history. Loans / aid granted to developing countries are used for buying both foreign capital goods and consumer goods. And this aid illustrates the influence that can be wielded over countries in debt. For example, the privatization of companies that were state property would never have happened if the countries had not been extremely indebted, to the point of needing new loans.

At the end of it all, I would highlight that World Bank never made an effort to promote development or human rights and it was concerned only with supporting and enforcing western power’s world domination.

  1. June 4, 2007 at 10:06 am

    Recently, I happened to read “Globalization and its Discontents” – by Jo Spiglitz (a World Bank Insider) – a nice (though dry) read about the unjust policies of IMF + WB since its inception.
    What I found irritating about this book though is that the author feels – inspite of those organizations deliberately messing everything up it is still naive on the part of people to think that there is a conspiracy! – he tries simplistically attributing it to mismanagement.
    Well…the only non-objectionable thing which the WB has done in all its history was to chuck out that f***** Wolfowitz a couple of weeks back.

  2. June 4, 2007 at 10:33 am

    @ Shujath

    Absolutely, itz all about pushing-under-the-carpet tactics… with these global optimists making the up-the-down-stairs journey for the world economy more faster!!!

    I haven’t read this Stiglitz book but heard of it being an interesting read and more importantly, it offers solutions for globalization to benefit all 🙂 All b*#% s~#*^ I must admit!

  3. June 4, 2007 at 12:22 pm

    well tat was some good piece of info..well am not much into economics n all…but this really was kinda eye-opener for me…..

  4. June 4, 2007 at 1:23 pm

    @ Fargz

    yea, oflate, global economics has begun to enthuse me!!! Keep visiting this for more inputs 🙂

  5. June 8, 2007 at 10:32 pm

    I see the book has moved you a lot, I should admit, I had the same effect and it still has.

    However InshaAllah I will start with the other two books (thousand barrels a sec and the end of oil) once I finish my current book “Road to Mecca” which is taking ages due to some commitment or the other.

    Have a good week end, albeit you have got just one day left.


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