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The World Bank and the Triumph of Third World Statism
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14624 |
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CURRENT ISSUES
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5 / 1988 |
2,350 Words |
| Author
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James Bovard
James Bovard is an associate policy analyst for the Cato
Institute and has written on foreign aid for the New York
Times and the Wall Street Journal. |
The World Bank is probably the most powerful multilateral institution in the world. Each year, the World Bank distributes more than $15 billion to Third World and Eastern European governments. Unfortunately, the Bank has been almost uniformly a force for statism and increased political control of the economy around the globe. World Bank loans have often made life more miserable for the poorest of the poor.
The Bank is now seeking a 60 percent increase in its general capital in order to finance a large increase in its lending. But before Western governments and taxpayers approve an increase in Bank lending, it is important to better understand how the Bank is currently using the capital it now has.
The World Bank's raison d'etre in its early years was to encourage development. Now, the Bank exists largely to maximize the transfer of resources to Third World governments. Bank officials are leading a rhetorical crusade in favor of the private sector. But every time the Bank loudly praises the private sector, it silently damns its own record.
The World Bank has shown little or no concern for human rights in the distribution of its billions. In the late 1970s, the Bank helped finance the government of Vietnam's brutal collectivization policy that contributed to the deaths of tens of thousands of boat people in the South China Sea.
The World Bank has loaned the government of Indonesia over $600 million to remove--sometimes forcibly--several million people from the heavily populated island of Java and resettle them on comparatively barren islands.
... (1997 of 15051 Characters)
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