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The World Bank, based in Washington, is a multilateral institution that lends money to governments and government agencies for development projects. For more than twenty years, the Bank has imposed stringent conditions, known as "Structural Adjustment Programs," on recipient countries, forcing them to adopt reforms such as deregulation of capital markets, privatization of state companies, and downsizing of public programs for social welfare. Privatization of water supplies, fees for public schools and hospitals, and privatization of public pensions are among the most controversial Bank reforms. While the Bank insists that "fighting poverty" is its first priority, many critics believe instead that it is responsible for rising poverty. Many also criticize its cozy relationship with Wall Street and the United States Treasury Department. The stormy resignation of World Bank Vice President and Chief Economist Joseph Stiglitz in late 1999, and his subsequent public comments, suggest that the Bank is not as benign as it claims to be.
GPF Perspective
Human Health Expert to Lead World Bank through Controversial Coal Projects (July 2, 2012)
Articles and Documents
2014
Doing Business Report Undermining World Bank’s Credibility (August 28, 2014)
The World Bank’s Doing Business Report has been criticized by a global coalition of Civil Society Organizations to contain major methodological flaws. Such shortcomings threaten to undermine not only the report’s credibility but also the World Bank’s effectiveness in achieving its goals. Experts argue that a comprehensive overhaul of the existing indicators in the report will be necessary if it is still to serve as a useful instrument to assess the contribution of business to global development. Moreover, there is a need for the report to better align with moves towards a paradigm of greater country-owned and led development. Improved alignment will ensure that a country’s particular circumstances and political choices are not overlooked. (eurodad)
2013
IFC Under Fire on Environment, Social Safeguards (February 8, 2013)
Following complaints from affected communities, a review of International Finance Corporation (IFC) lending practices reveals gaps in the mechanisms to oversee third-party lending institutions. IFC is the lending arm of the World Bank that currently channels approximately 40% of its lending portfolio for development projects through other banks or microfinance institutions. Although financial intermediaries are expected to comply with IFC’s standards, there is no due diligence for ensuring environmental and social “do no harm” practices are met, turning the process into a mere “box ticking exercise.” The IFC expects their sub-clients to keep records of their operations but feel that greater oversight at that level is unnecessary. IFCs impact on development is potentially extended through financial intermediaries; however success is hampered since 60% of IMF funded sub-clients fail to meet these safeguards. (IPS)
Hastily Introduced World Bank Projects Threaten to Undermine Peace Process in Burma (January 22, 2013)
The 2011 ceasefire in Burma and the establishment of a new government have led to investments from the World Bank starting in 2012. The first round of funding targets community driven development projects that include conflict-affected communities. However, the Bank has ignored warnings from civil society groups concerned about the lack of inclusive consultations and impact assessments prior to project approvals. The Bank is now considering a $440million loan aimed at creating the “foundations for future economic growth”. This type of swift program implementation puts economic development ahead of political settlement in a region still sore from injustices experienced during decades of conflict. Rather than investing in government-led development projects, efforts on fostering political stability through transparent consultations with communities will ensure effective aid programs based on current needs. (Bretton Woods)
2012
World Bank Approves Contentious Ethiopia-Kenya Electric Line (July, 2012)
The World Bank has voted to approve funding for an electric transmission line that would link Kenya to the controversial Gilgel Gibe III dam in Ethiopia. The bank has previously refused to fund the dam itself due to lack of transparency. While the transmission line will greatly enhance the energy security in the region, the failure to address the accusations of abuse and environmental concerns may lower the credibility of the World Bank’s project. (IPS)
The World Bank: A Glimmer of a Possibility of Change (April 13, 2012)
Published only days before the World Bank confirmed the appointment of the American candidate, Bretton Woods Project highlights four major issues that a credible new president should tackle. Next to putting an end to the rigged appointment process, the new president should steer away from its neoliberal, unaccountable and unrepresentative ways. A good place to start would be the containment and reform of the International Finance Corporation (IFC), the bank’s private sector arm. This institution is a major facilitator of land grabbing and one of several of the bank’s subsidiaries that is irreconcilable with any legitimate conception of development. (Guardian)
An African President of the World Bank Is Not the Solution, When the Bank Itself is the Problem (April 3, 2012)
The fervent and ongoing speculation and debate as to who should become the new President of the World Bank has thrown up a number of candidates – most notably Ngozi Okonjo-Iweala who would become the first African, and the first female to lead the Bank. The Bank’s relationship with Africa has been marred by controversy. Many have seen it as detrimental to the continent. This All Africa article argues against electing an African as a sop to sentimentality, and instead urges a deeper skepticism of the Bank’s aims, methods, and future in Africa. (allAfrica)
Obama Administration’s Nomination of Jim Yong Kim for World Bank President is a Victory for Reform (March 23, 2012)
In the past, the nomination and election of the World Bank’s President has been largely influenced and dominated by the US. However, CEPR Co-director Mark Weisbrot argues that this election process is undergoing meaningful changes. The nomination of Jeffrey Sachs opened the doors for the nomination of candidates other than “a [US] political insider or a banker.” The nomination of Nigerian Finance Minister Ngozi Okonjo-Iweala by several African countries, for instance, represents an unprecedented challenge to the US government’s traditional domination. Although these developments ought to be welcomed, the Bank’s process is still deeply flawed and the majority of the world’s countries are not yet involved. (Centre for Economic and Policy Research)
Should We Celebrate a Decline in Global Poverty? (March 16, 2012)
The WB is the only provider of global poverty figures. Despite the global financial crisis and surging food prices, the Bank’s latest estimates suggest that the percentage of people living on less than $1.25 a day declined between 2005 and 2010. The Bank’s data incorrectly signals that the first MDG of cutting global extreme poverty in half has been achieved. This Share the World’s Resources article critically examines the issues regarding the WB’s latest figures, stating that the WB regularly use faulty methodology to come up with statistics that support their longstanding view that “liberalization and globalization [help] to reduce poverty worldwide.” (Share the World’s Resources)
Do World Bank Country Classifications Hurt the Poor? (March 12, 2012)
The World Bank’s country classification system divides member countries into low, lower middle, upper middle and high income countries. Whether a country is low income or middle income affects many things, such as eligibility for concessional lending from multilateral banks, donor aid policy and trade access. To determine a country’s status, the Bank exclusively uses income per capita. But does this system accurately capture a country’s state of socio-economic development? This Policy Innovation article presents the controversies surrounding the Bank’s classification system and maintains that “it produces results that do not reflect real-world situations.” Author Seth Kaplan proposes a more sophisticated and less arbitrary country classification system that is gradual and measures levels of development rather than levels of income. (Policy Innovations)
The World Bank Needs its Own Lionel Messi to Come Off the Bench (February 27, 2012)
In this blog-post from Voices of the South, former executive director of the Argentinean Centre for Human Rights and Environment (CEDHA) Jorge Taillant illustrates with a witty analogy why it is so important for the future World Bank’s (WB) president to be from a developing country. In soccer, so Taillant states, “when your front runners simply aren’t cutting the mustard, the coach looks to the bench for new and energetic blood.” The WB urgently needs its own Lionel Messi to come off the bench and work development magic. (Voices of the South)
We Need a New World Order at the World Bank (February 17, 2012)
As soon as World Bank president Robert Zoellick announced that he would step down at the end of June, rumors abound on his succession. Taking into account the well-known and controversial "gentlemen's agreement," "giving" Europe the IMF and the US the World Bank, it is not unlikely that either Hillary Clinton or Lawrence Summers will get the job. Jayati Ghosh argues that this developed world privilege has never been so unjustifiable. Not only has the time in which the G7 "ran the world" gone by, but the "conflicts of interest"-argument stating that recipient countries should not run the agencies has also lost legitimacy, particularly when Lagarde assumed leadership at the IMF and became involved in Eurozone bailouts. It is time that the Bank is run by "the best candidate" who can count on support from the developing world. (Guardian)
Justice Delayed 30 Years in Guatemala (January 4, 2012)
In 1982, the western-backed military in Guatemala killed 440 civilians and displaced 32 communities along Rio Negro to make way for the Chixoy Hydroelectric Dam, a World Bank funded project. The World Bank continued to support the project despite knowledge of human rights abuses. It argued that its Articles of Agreement did not require consideration of human rights in its funding decisions. This Al Jazeera article examines what the World Bank must change during its safeguard review process in order to meet international law standards. (Al Jazeera)
2011
Does The Much Maligned World Bank Deserve a Thumbs Up from the DfID? (September 2, 2011)
The Department for International Development’s (DfID) latest review of its policy towards the World Bank (WB) expresses its accord with the bank’s ideology and practices. It ignores persistent fundamental flaws such as loan conditionality and the bank’s hierarchical decision-making structure. According to this article, if the bank’s idealistic mandate is ever to be fulfilled, it is time for the DfID to leave behind minor issues and concentrate on the bank’s major structural deficiencies. (Guardian)
'Sweeping' Changes in Global Economy Could Challenge Dollar's Role - World Bank (May 17, 2011)
The dollar’s role as the international reserve currency has been called into question by economists and policy makers as a result of the 2008 financial crisis which pushed the world into recession. This World Bank report believes that by 2015 emerging markets will account for half of global economic growth. The international economic order will necessitate a shift away from the dollar and towards other currencies for the purposes of trade. (Wall Street Journal)
World Bank Faults Itself for East Timor's Struggles (April 23, 2011)
The World Bank’s internal auditors have released a scathing report blasting the bank’s performance over the past decade in East Timor. The report critiques the bank for its unsatisfactory support of education and its strict adherence to procurement rules, which stalled the construction of health clinics that were badly needed. World Bank officials acknowledge that some polices were ill-advised. (New York Times)
2010
Watch Out: The World Bank is Quietly Funding a Massive Corporate Water Grab? (November 2, 2010)
The World Bank keeps investing in corporate water privatization. Through its funding arm, International Finance Corporation (IFC), it invested $139 million in Veolia Voda - the Eastern European branch of Veolia which is the world's largest private water corporation. Even though privatization of water "has been an epic failure in Latin America, Southeast Asia, North America, Africa and everywhere else it's been tried," the World Bank chooses to encourage the profit driven, short-sighted projects in Eastern Europe. By doing so, the World Bank and the IFC promotes water as a commodity even though the UN has declared it to be a basic human right. (AlterNet)
Clampdown on Tax Havens: Where Does the International Finance Corporation Stand? (October 21, 2010)
The World Bank claims to be willing to take strong action to stop investments in companies registered in tax havens. Yet it fails to make sure that the International Finance Corporation (IFC) stops supporting companies that operate in such areas, making the World Banks ambitions seem hollow. Each year more than $600 billion bleeds out of poor countries in tax evasions. As institutions mandated to support development of poor countries, both the World Bank and the IFC have the obligations to make sure their investments are not supporting economic leakages in afflicted countries. (Eurodad)
World Bank Report on Land Grabbing: Beyond the Smoke and Mirrors (September 19, 2010)
Considering the influence the World Bank possesses, its recently released report on land grabbing is in most ways a disappointment. It has the ability to access both governments and corporations in a way that journalists or NGOs never could, but yet the conclusion of the report lacks both edge and new information. The Bank claim originality, but "if the World Bank really wanted to lift the veil of secrecy [around land grabbing] it would start by putting legal documents in the public domain". Their fail in doing so clearly indicates the hidden agenda of the World Bank's own interests in private land investments. (Grain)
Dodging World Bank Schizophrenia - the Looting on Africa Continues? (September 9, 2010)
When discussing African growth, the World Bank prefer to use the concept of GDP instead of speaking of human development. When solely looking at the general African GDP, World Bank representatives claim that the continent is not getting poorer - on the contrary they claim the African GDP to be at a much higher level today than it was 15 years ago. But using the GDP automatically means excluding factors like environmental quality and how the capital is distributed amongst citizens. The World Bank cannot ignore the fact that in spite of capital intensive natural resource extractions, African economies continue to suffer extreme distortions and social inequality. (Pambazuka News)
World Bank Revamps Voting Structure (April 26, 2010)
The World Bank has announced a new voting structure that gives emerging economies like China, India, and Brazil a greater say in the decisions of the 186-nations institution. China was the biggest beneficiary as it is now the 3rd largest share-holder, behind the US and Japan, at 4 percent. The South African Finance Minister has expressed his disappointment in the restructuring, saying the results have diluted the voting power of sub-Saharan countries. Many question the Bank's claim that this new arrangement gives developing countries an enhanced share of voting rights at 47 percent. Most of those who have received increased voting power are emerging economies, near the upper tier of the global system, and increasingly close partners with the powers-that-be. (Al Jazeera)
IFC's Mining Investments: A Black Hole for Human Rights? (April 16, 2010)
The International Finance Corporation (IFC), the private sector lending arm of the World Bank, is in the final stages of crafting its Sustainability Policy and Performance Standards. The latest draft has removed certain language that was making progress on human rights and other critical issues. This article reveals major abuses in past IFC funded projects. More importantly, it highlights the need for stronger standards to protect people and the environment. (Bretton Woods Project)
Secret World Bank Shake Up? (April 16, 2010)
Internal reforms with potentially far-reaching consequences are underway at the World Bank. The reform proposals were developed without public consultation and in a very short period of time, allowing only limited discussion with shareholder governments and stakeholders. Not surprisingly, the planned reforms reinforce existing bank approaches, particularly its focusing on financing infrastructure and the private sector. The Bank also intends to expand its role as a "knowledge provider" (do we really need more of the Bank's biased "knowledge?"). Among the most radical changes is a proposal to provide a new "risk framework," which supposedly will change the way the Bank selects and evaluates its investment projects. (The Bretton Woods Project)
How to Rebuild Haiti (February, 1 2010)
World Bank President, Robert Zoellick, has made a strong statement on Haiti reconstruction and aid. But it remains to be seen what the Bank will actually do after years of negative influence on the islands economy. Zoellick highlights cash-for-work programs so Haitians can themselves be paid for reconstruction of their country. Debt-relief is also mentioned - Haiti is stifled by a debt burden of nearly $1 billion (The World Bank).
Fostering Impunity or Accountability? Sweeping Changes at the World Bank - IDA (January 2010)
This review of the World Bank provides a critical assessment. In response to the global economic crises, Bank lending to middle-income countries increased while funds to lower income countries did not change at all, in spite of the difficulties these economies are facing. The review also assesses the Bank's role in gender empowerment as well as environment and climate change projects. (Heinrich Boell Foundation)
2009
World Bank Health Work Flawed Still Pushing Privatization of Services (July 10, 2009)
2008
World Bank's 'Wrong Advice' Left Silos Empty in Poor Countries (December10, 2008)
Who Should Control the Bank? (September 29, 2008)
The World Bank's New Poverty Estimates – Digging Deeper Into A Hole (August 26, 2008)
New Data Show 1.4 Billion Live on Less Than US $1.25 a Day, but Progress Against Poverty Remains Strong (August 26, 2008)
A Challenge of Economic Statecraft (April 2, 2008)
World Bank Pledges to Save Trees, Then Helps Cut Down Amazon (January 17, 2008)
2007
Why South America Wants a New Bank (December 10, 2007)
Climate Contradictions: World Bank Sets Up Shop in Bali (December 4, 2007)
Untying the Knots: How the World Bank Is Failing to Deliver Real Change on Conditionality
Zoellick Charts Inclusive Course At World Bank (October 9, 2007)
Accountability in Complex Organizations: World Bank Responses to Civil Society (October 2007)
For decades, NGOs have criticized the World Bank for primarily representing the interests of rich countries and obstructing development in poor countries. This Harvard Business School paper argues that NGO campaigns have succeeded in bringing some accountability to the Bank. For example, citizens can now report World Bank violations of social and environmental safeguards to a complaint mechanism. But, the report calls the reforms "cosmetic" as the Bank has not reformed its core structures and policies.
New World Bank Chief Confronts Aid Shortfall (September 24, 2007)
The Post-Washington Dissensus (September 17, 2007)
Corporate Power and Influence in the World Bank (August 2007)
Wolfowitz Tried to Censor World Bank on Climate Change (August 14, 2007)
At World Bank, Climate Change Isn't Part of the Equation (August 12, 2007)
This Los Angeles Times article discusses how the World Bank disregards environmental matters such as climate change, due to the influence of its biggest supporter, the United States. Kristalina Georgieva, the World Bank's strategy and operations director for sustainable development, stated that the issue of climate change is politically very contentious and said that it will take at least two years before the World Bank includes carbon emissions into its decision-making process.
World Bank Warns On Family Planning, Economic Growth (July 24, 2007)
Bank of the South: Toward Financial Autonomy (July 8, 2007)
Latin American Governments and Foreign Investors (June 18, 2007)
Oxfam Calls for End to US Control over Appointment of World Bank President (May 18, 2007)
Wolfowitz Saga Exposes Structural Flaws of the World Bank (May 15, 2007)
Adios, World Bank! (May 9, 2007)
US and EU "Need to Cede Power" in World Bank and IMF (April 21, 2007)
Why You Should Care About the World Bank and Iraq (March 13, 2007)
Wolfowitz Takes Actions to Gear Up World Bank for Iraq (February 16, 2007)
Time to Begin "Adapting" to Climate Change? (February 13, 2007)
Deadly Combination: The Role of Southern Governments and the World Bank in the Rise of Hunger (2007)
2006
Press Release: Growth Prospects Are Strong, but Social, Environmental Pressures from Globalization Need More Attention (December 13, 2006)
Wolfowitz Clashes with World Bank Staff and Mideast Chief Exits (December 12, 2006)
The Persistently Poor (December 8, 2006)
Benn Backs Down on Threat to World Bank Funding (December 6, 2006)
Split Highlights Growing Call to Rethink Conditionality (November 23, 2006)
Research, Knowledge, and "Paradigm-Maintenance": the World Bank's Development Economics Vice-Presidency (November 20, 2006)
Corrupting the Fight Against Corruption (October 27, 2006)
Wolfowitz Reined In by Ministers (September 19, 2006)
Urgent Need to Invest More in Developing World's Record Youth Population, Says World Development Report (September 16, 2006)
UK 'Threat' to World Bank Brings a Little Cheer (September 15, 2006)
Analysis Casts Doubt on Bank Scorecard: CPIA Numbers Made Public for the First Time (September 11, 2006)
How the World Bank's Energy Framework Sells the Climate and Poor People Short (September 2006)
World Bank Revamp Needs Close Scrutiny, Groups Say (August 14, 2006)
Time for the Glue Factory: The IFC and 50 Years of Corporate Welfare (July 26, 2006)
Multilateral Trading System: Time for a New Approach (June 26, 2006)
Beware the Big, Bland Wolf: The First Year of Paul Wolfowitz at the World Bank (June 5, 2006)
US President George W. Bush's decision to nominate hawk Paul Wolfowitz for the position of President of the World Bank proved widely unpopular among international civil society organizations. While Wolfowitz has not enacted changes that further this discontent with his position, he has also not resolved the pressing problems at the World Bank. This Bretton Woods Project article suggests that Wolfowitz must actively pursue the elimination of corruption and debt and increase the autonomy that poor countries have over economic decisions in order to restore a meaningful role for the World Bank.