Monitoring Policy Making at the United Nations |
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The World Bank
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.
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Articles and Documents
2008 |2007 | 2006 | Archived Articles | Links and Resources
Do PRSPs Empower Poor Countries and Disempower the World Bank, or Is It the Other Way Round? (October 2003)
Frances Stewart and Michael Wang examined the policies and processes governments use to create the Poverty Reduction Strategy Papers submitted to the World Bank. They conclude that PRSPs give the appearance of civil society involvement, but international financial institutions really design and mandate the development policies. (Queen Elizabeth House)
After criticizing the IMF and World Bank for inaccurately evaluating development, former World Bank Chief Economist, Joseph Stiglitz stresses the need for a more democratic policy making team, to incorporate specifically the working class, i.e. labor unions into the discussion of development strategy.
A brief analysis by James Paul, Executive Director of GPF, about the relations between the World Bank (and other International Financial Institutions) and NGOs.2008
A Challenge of Economic Statecraft (April 2, 2008)
In this speech, World Bank President Robert Zoellick proposes a “New Deal for Global Food Policy,” which should not only focus on malnutrition and access to food, but also take into account broader development issues. Zoellick says the World Bank could push for a “Green Revolution” in sub-Saharan Africa or boost investment in agribusinesses. His plans reflect an endless trust in global market solutions, without acknowledging how these forces may be responsible for the global food crisis the World Bank proposes to solve. (World Bank)World Bank Pledges to Save Trees, Then Helps Cut Down Amazon (January 17, 2008)
This Independent article reports that the World Bank vowed to halt deforestation in Bali last month, but is simultaneously funding the cattle ranching industry in the Amazon. This industry actually propels forest destruction, by cutting down large swaths of forest to make way for cattle. Research shows that the strain placed on the Amazon could wipe out the forest - the world’s most important eco-system - by 2030.2007
Why South America Wants a New Bank (December 10, 2007)
Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela are all backing the initiative to establish the Bank of the South. The bank is an alternative to the World Bank and the IMF, whose unpopularity is growing in the South American continent. The founding countries say the bank will reduce their dependence on rich countries and international financial institutions while providing necessary alternative funds. Although experts approach the initiative with caution, some welcome the competition in the developing lending market. (BBC)Climate Contradictions: World Bank Sets Up Shop in Bali (December 4, 2007)
The World Bank seeks to play a key role in the UN climate conference in Bali. The Bank prides itself on being a “clearing house on carbon trading” and on being committed to reducing carbon emissions through specialized energy lending programs. Critics protest the Bank’s involvement given the World Bank and IMF’s subsidies to the oil industry and their lack of investment in renewable energy production. (Bretton Woods Project)Untying the Knots: How the World Bank Is Failing to Deliver Real Change on Conditionality
This report from EURODAD criticizes the effects of the World Bank’s Good Practice Principles (GPP) on loan conditionalities for poor countries. Intended as a means to reduce conditionalities, the principles have only reduced non-legally binding conditions. The frequency of legally binding conditions remains the same. Further, the GPPs have done nothing to alter the World Bank’s practice of forcing poor countries to deregulate their economies and open up their markets to competition from abroad.Zoellick Charts Inclusive Course At World Bank (October 9, 2007)
As poor countries turn to other sources for credit, World Bank President Robert Zoellick seeks to reverse the Bank’s current reputation as an almost irrelevant institution. With the slogan “Inclusive and sustainable globalization” Zoellick emphasizes the benefits to the US and Europe of free trade and cooperation with middle income countries such as China and India. He justifies collaboration as a means to better influence and control these economies so that their growth seems less threatening to richer countries. Critics wonder whether this is an appropriate objective for an institution that supposedly aids poor countries. (Wall Street Journal)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)
Following the turmoil surrounding former World Bank chief Paul Wolfowitz and national budget problems, many rich countries have lowered their contributions to the Bank. Governments increasingly channel aid funds through their own development agencies, rather than through the International Development Association of the World Bank. World Bank chief Robert Zoellick maintains that the Bank is still an important financial institution and the only one that can “analyze overall needs, share information, set priorities and avoid duplications and contradictions in aid programs.” But many governments question the future relevance of the Bank. (International Herald Tribune)The Post-Washington Dissensus (September 17, 2007)
This article from the Inquirer gives a detailed analysis of the trends in international economic policy following the neo-liberal Washington Consensus. The discussion covers the World Bank’s Poverty Reduction Strategy Papers, neo-liberalism and neo-structuralism. The article also looks at “global social democracy” as represented by economists Jeffrey Sachs and Joseph Stiglitz, a take on global economics that values equity before growth. Although this view is a radical departure from the original Washington Consensus, Sachs and Stiglitz still argue that economic globalization can bring benefits. The author argues that globalization as the most recent stage of capitalism is merely an attempt by capitalists to overcome their “crisis of overaccumulation, overproduction and stagnation,” that does not benefit the poor countries.Corporate Power and Influence in the World Bank (August 2007)
The article presents an in-depth picture of the World Bank’s pro-corporate and pro-capitalist mindset.A significant amount of World Bank funding goes to the private sector and large corporations. This happens at the expense of local, small scale entrepreneurs. Corporate demands for profit override the social and economic safeguards of local communities. Further, World Bank economic reform packages are designed to create corporate friendly governments to govern corporate friendly capitalist economies. (Focus on Trade)Wolfowitz Tried to Censor World Bank on Climate Change (August 14, 2007)
According to documents recently made available to the public, the Bush administration repeatedly curtailed efforts by the World Bank to address the issue of global warming. The article argues that Paul Wolfowitz, the former President of the World Bank, got personally involved and removed the words "climate change" from a bank progress report and ordered the text to “shift the focus away from global warming.” (Independent)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)
A World Bank report titled “Population Issues in the 21st Century: The Role of the World Bank” claims that the priorities of some least developed countries, of donor countries and of aid organizations are changing as fertility rates have decreased in many poor countries, and governments are placing more emphasis on economic issues over health issues. As a result there is a shortage of funds disbursed for matters such as “family planning, reproductive health programs and contraception.” (allAfrica)Bank of the South: Toward Financial Autonomy (July 8, 2007)
On May 22, 2007, after two months of negotiations, Argentina, Brazil, Bolivia, Paraguay, Ecuador, and Venezuela reached an agreement on Banco del Sur which will begin functioning in 2008. The members created the institution for two main reasons: to finance regional development projects in a more autonomous and efficient way than the US/EU-dominated World Bank and IMF and to couteract the effects of decades of deregulation and other neoliberal policies. So far, all parties have agreed to the equal voting rights but still have to decide on other issues of responsibility. Critics doubt that Banco del Sur will be able to single-handedly replace the international financial institutions. (World Press)Latin American Governments and Foreign Investors (June 18, 2007)
The relations between governments and multinational companies are quickly changing in Latin America. Countries like Bolivia and Venezuela are leaving the International Center for the Settlement of Investment Disputes (ICSID) as they believe it is not “transparent and impartial enough” due to the heavy influence of the World Bank and Washington. The World Bank has long used its supremacy to force governments to implement policies favored by transnational corporations at the expense of the poor. To change this situation, Bolivia raised its royalty rates on hydrocarbons leading to an increase in revenues while Venezuela raised the royalties on foreign investors making huge profits. (World Economy & Development In Brief)Oxfam Calls for End to US Control over Appointment of World Bank President (May 18, 2007)
Oxfam urges reform of the World Bank presidential appointment process, calling the resignation of former Bank President Paul Wolfowitz “a rare opportunity for change.” The development agency argues that the next head of the Bank should be selected based on merit rather than unilaterally appointed by US President George W. Bush. The US government, however, shows little desire to change the status quo. (Guardian)Wolfowitz Saga Exposes Structural Flaws of the World Bank (May 15, 2007)
This YaleGlobal piece argues that the allegations of nepotism against World Bank President Paul Wolfowitz have exposed the underlying issue of “an outdated system of global governance” which grants disproportionate power to wealthy western nations. The US monopoly over leadership of the World Bank has muted criticism against Wolfowitz, as small countries dependent on the bank fear retaliation if they object, Europe looks to maintain control over the leadership of the IMF, and larger developing countries “seek quiet exit from the bank’s grip.”Adios, World Bank! (May 9, 2007)
An increasing number of Latin American countries – such as Venezuela, Ecuador, and Brazil – have paid off debts to the IMF and the World Bank in an effort to “break free” from the harsh conditionalities for debt relief imposed by the two institutions. Citing “doubts about the World Bank’s credibility [and] legitimacy,” Venezuela and Argentina have launched the “Banco del Sur,” or Bank of the South, a more democratic and development-focused alternative where “voting power will be based on financial need” rather than economic or political power. (TomPaine)US and EU “Need to Cede Power” in World Bank and IMF (April 21, 2007)
This MercoPress article argues that the US and EU must “recognize the shift of economic power” toward Asia and Latin America or risk “forfeiting world economic leadership.” The author warns that emerging economies will become increasingly frustrated with the US and European dominance over the World Bank and IMF and may create regional rivals. However, the article does not fully address the need for greater inclusion of poor countries into the power structures of the two institutions, a key issue for reform.Why You Should Care About the World Bank and Iraq (March 13, 2007)
This Bank Information Centre article reveals that, in order to push for a resumption of its activities in Iraq, the World Bank tried to suppress the news that one of its employees was shot in the country. However, the World Bank is going against its own conditions for engagement which outline that the organization cannot operate in countries with ongoing conflicts and where staff cannot travel safely. The enormous attention given by the World Bank to Iraq in comparison to other countries suggests the president of the organization, Paul Wolfowitz, is using its role to promote US geopolitical interests.Wolfowitz Takes Actions to Gear Up World Bank for Iraq (February 16, 2007)
World Bank President Paul Wolfowitz is trying to expand Bank-funded projects in Iraq and to use the organization’s resources to achieve US military goals in the country. Most of the Bank’s Board Members oppose this idea, which they say constitutes a waste of donor resources and a distortion of the Bank’s mission. According to the founding articles of the World Bank Agreement, the organization cannot operate in countries with ongoing conflict. Further, the organization's staff is prohibited from traveling to Iraq for security reasons and this would make monitoring of the project very difficult in a highly corrupt environment. (Government Accountability Project)Time to Begin “Adapting” to Climate Change? (February 13, 2007)
Stating that “climate change is here and now,” officials at the World Bank are hiring experts on adapting to global warming rather than preventing it. This Christian Science Monitor article reports that, although both tactics are necessary to prepare for climate change, many environmentalists view adaptation as the “poorer cousin” to carbon emission reductions.Deadly Combination: The Role of Southern Governments and the World Bank in the Rise of Hunger (2007)
This report published by Norwegian Church Aid, Danish Church Aid, Church of Sweden and Brot-fur-die-Welt finds that ever since African governments began liberalizing trade, food security has worsened on the continent. In particular, economic liberalization has harmed poor subsistence farmers. The author suggests that to achieve the Millennium Development Goal of halving hunger by 2015, the World Bank and local governments must abandon their present governance and liberalization policies.2006
Press Release: Growth Prospects Are Strong, but Social, Environmental Pressures from Globalization Need More Attention (December 13, 2006)
Under the “central scenario” of the World Bank’s Global Economic Prospects 2007 world GDP will roughly double over the 2005-2030 period with developing country exports accounting for a significant share of the increase. While this growth could halve the number of people living on less than a dollar a day by 2030, the report also acknowledges that growing income inequalities and global warming could “jeopardize long-term progress.” Along with reducing barriers to trade, the report calls for stronger international institutions to tackle the stresses on the ‘global commons.’ At the national level the Bank calls for government investments in education and infrastructure “to ensure that the poor are incorporated into the growth process.”Wolfowitz Clashes with World Bank Staff and Mideast Chief Exits (December 12, 2006)
This Bloomberg News piece reports on World Bank president Paul Wolfowitz’ worrying praxis of staffing high-level positions in the Bank with individuals who are “short on expertise and long on political connections” to the US Republicans. New appointees replace 14 of the Bank’s 29 highest-level executives who have resigned since the former US deputy defense secretary assumed the presidency in June 2005. Among them is the Bank’s 30-year veteran vice president for the Middle East who stepped down after “resisting pressure to speed up the pace of lending and adding staff in Iraq.” Concerns have now resurfaced that Wolfowitz serves “to provide political cover for the White House” in Iraq.The Persistently Poor (December 8, 2006)
This Washington Post piece reports on the 2006 ‘Annual Review of Development Effectiveness’ compiled by the World Bank’s Independent Evaluation Group (IEG). While Bank management boasts about the World Bank’s contribution to economic growth in developing countries, the IEG study stresses that in many countries growth has failed to reduce poverty because it has been very unevenly distributed, and also very volatile. The report criticizes Bank programs for failing to adapt to local conditions and for not considering the poor’s vulnerability to price and currency liberalizations.Benn Backs Down on Threat to World Bank Funding (December 6, 2006)
In September 2006, UK Secretary for International Development Hilary Benn announced that Britain would withhold £50 million worth of funding to the World Bank until the bank stopped imposing stringent demands of privatization and liberalization on poor countries. Times, London reports that Benn has now decided to release the money, saying that his concerns have been eased as the World Bank’s November progress report showed positive results with “reducing the use of ‘economic policy conditionality.’” Meanwhile NGOs call the decision “premature” and urge Britain to be tougher in next year’s funding negotiations with the bank.Split Highlights Growing Call to Rethink Conditionality (November 23, 2006)
This Bretton Woods Project piece displays the increasing pressure on the World Bank to change the way it imposes economic policy conditions on poor countries receiving loans or grants from the Bank. In September 2006 the British government decided to withhold £50 million worth of funding to the Bank until it made “satisfactory progress” in improving its use of conditions. The Bank’s own November 2006 progress report concludes that such progress has been achieved. Meanwhile NGOs around the world continue condemning World Bank conditionality. Also, the Norwegian government has gathered development officials from seven major donor countries “to discuss more appropriate and effective conditionality for the future.”Research, Knowledge, and “Paradigm-Maintenance”: the World Bank’s Development Economics Vice-Presidency (November 20, 2006)
As the world’s largest center of development research, the World Bank’s development economics vice-presidency (DEC) serves as a resource for academics, policymakers, and aid agencies. Although the DEC claims impartiality, this Bretton Woods Project article describes six ways in which the center promotes the “neo-liberal free-market paradigm,” including manipulating data to support that paradigm and discouraging dissent.Corrupting the Fight Against Corruption (October 27, 2006)
Having himself been one of the main forces in putting corruption on the World Bank’s agenda, Joseph E. Stiglitz in this piece makes recommendations for improving the bank’s approach to combating corruption. Pointing out that bribe payments often come from Western based corporations, Stiglitz further calls on rich governments to tie tax deductibility for corporations to transparency in all dealings with foreign governments. Stiglitz also voices the concern of some critics that the corruption agenda is “itself corrupted” with rich governments using it to cut aid to countries that don’t please them. (Project Syndicate)Wolfowitz Reined In by Ministers (September 19, 2006)
The months preceding the September 2006 annual meetings of the Bretton Woods Institutions had seen “mounting tensions between [World Bank] president and the governments of its key donor countries.” Governments worried that Bank president Paul Wolfowitz had pursued his anti-corruption strategy in an arbitrary and “high-handed fashion,” suspending loans to several countries. This Times article reports that the issue caused embarrassment for Wolfowitz at the meetings. While approving his anti-corruption strategy, ministers insisted that the program needed continued oversight by World Bank member countries.Urgent Need to Invest More in Developing World's Record Youth Population, Says World Development Report (September 16, 2006)
Focusing on youth, the 2007 annual World Bank publication reports that the world population of people aged 12-24 has reached a record 1.3 billion, living mainly in poor countries. According to the report, this “demographic dividend” creates a short “window of opportunity” for poor country governments to stimulate social and economic development, before this huge generation reaches middle-age. The report strongly emphasizes the importance of governments investing in better education, healthcare and job training thereby “expanding opportunities,” “improving capabilities,” and “offering second chances” to the young.UK 'Threat' to World Bank Brings a Little Cheer (September 15, 2006)
The British Department for International Development (DFID) will withhold £50 (US $95) million from the World Bank unless it stops demanding that poor countries privatize public services and liberalize trade as conditions for aid and loans. British NGOs would prefer DFID withhold all money to the Bank, rather than just a tiny fraction of the £1,3 (US $2,4) billion pledged over the next three years. But the NGOs welcome the move as a “partial victory” for their advocacy to have the British government put pressure on the World Bank to change its policy. (Inter Press Service)Analysis Casts Doubt on Bank Scorecard: CPIA Numbers Made Public for the First Time (September 11, 2006)
Evaluating countries’ economic, structural and public policies, the World Bank’s Country Policy and Institutional Assessment (CPIA) plays a central role in the Bank’s allocation of grants and low-interest loans to poor countries. This Bretton Woods Project article reveals how countries that fare well on the CPIA frequently have lower GDP growth, score lower on UN’s Human Poverty Index, and perform worse on Transparency International’s Corruption Perception Index, than countries with lower CPIA scores. This suggests that the Bank bases its ranking more on such criteria as ease of doing business than on an impartial assessment of countries' policies and institutions.How the World Bank’s Energy Framework Sells the Climate and Poor People Short (September 2006)
Examining the World Bank’s ‘Investment Framework for Clean Energy and Development,’ nine non-governmental organizations reveal that the bank invests US$2-3 billion a year in greenhouse gas-producing fossil fuel projects, yet only five percent of its overall energy financing in renewable energy projects. The bank thereby fails “to reap the double dividend” of fighting both poverty and climate change with locally available renewable energy technologies. “Public funding for fossil fuels is a complete anachronism,” and this report insists on a complete halt to the practice. Countries must redirect energy financing into renewable technologies through an “appropriate multilateral framework,” and not the Western dominated World Bank. (Friends of the Earth)World Bank Revamp Needs Close Scrutiny, Groups Say (August 14, 2006)
The World Bank announced that it will merge its social and environment departments with its infrastructure department. The World Wildlife Fund applauds the plan, expecting large development projects to apply “world-class environmental standards.” NGOs such as the Bretton Woods Project and the Bank Information Centre, on the other hand, warn that this move may relegate social and environmental concerns to the backseat in project planning. Environmentalists and independent analysts say they will closely follow the details of the reorganization. (Inter Press Service)Time for the Glue Factory: The IFC and 50 Years of Corporate Welfare (July 26, 2006)
This article calls attention to the faults of the private sector lending arm of the World Bank, the International Finance Corporation (IFC). Although the IFC spouts rhetoric of “poverty reduction,” it supplements already large and well funded projects for oil, gas and mining infrastructure to a far greater extent than it finances health and education projects. This 50 Years Is Enough Network piece calls for the elimination of initiatives that depend on the IFC and suggests that development projects should “focus on the community and its needs instead of profit and its dictates.”Multilateral Trading System: Time for a New Approach (June 26, 2006)
This letter to the trade ministers of the World Trade Organization on behalf of 131 organizations worldwide criticizes the Doha Round and suggests that more attention go to public policy priorities. Specifically, the letter finds fault with the undemocratic decision-making process among trade ministers and the overarching tendency to favor rich nations when imposing new trade laws. It proposes a new “aid for trade” plan that addresses adjustment costs and does not demand the liberalization planned under the Doha Round. (Our World Is Not for Sale)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.World Bank and IMF Conditionality: A Development Injustice (June 2006)
This Eurodad report critiques International Monetary Fund (IMF) and World Bank lending policies. The conditions that these institutions impose on already impoverished borrowers further the administrative and economic burdens of these governments. Eurodad suggests that the IMF and the World Bank reconsider the conditionality prerequisites for loan approval.Afterthoughts: Critics Plan Offensive as IMF-World Bank Crisis Deepens (April 27, 2006)
The International Monetary Fund (IMF) faces “a huge squeeze on the budget,” and the World Bank approaches an even bigger crisis, INQ7 argues. Rich countries continue to dictate some of the Bank’s most important decisions and poor countries increasingly turn elsewhere to obtain loans. After years of trying to reform the Bretton Woods institutions, some NGOs have changed their strategies and are now seeking to disempower the two institutions.IMF – World Bank: Donor Nations to Focus on Growing States (April 24, 2006)
At the annual Spring Meeting of the International Monetary Fund (IMF) and the World Bank, the IMF’s 184 member countries authorized proposals that will increase the influence of a few emerging economies, such as China and Turkey. However, the US will probably oppose any significant decrease of its 17% share in votes, since it benefits from being the Fund’s only veto power. The World Bank discussed how poor countries could cope with the effects of climate change, produced by rich countries’ industries. To cut their own greenhouse emissions, poor countries request financial support from the “polluters.” (New York Times)World Bank Trade Programs Must Tackle Poverty (March 23, 2006)
A study released by World Bank’s Independent Evaluation Group (IEG) says that the Bank has not done enough to foster sustained export-growth and to tackle poverty in poor countries. While encouraging market liberalization, the Bank failed to address poor countries’ vulnerability caused by their dependence on few export products. The report also encourages the Bank to consider the particular needs of every country in its recommendations. (Reuters)Breaking Ranks at the World Bank (February 17, 2006)
After years of promoting market deregulation, the World Bank finally admits the limited effects of these policies on reducing poverty. According to a World Bank report, Latin America’s high poverty and inequality can explain the region’s bad economic performance over the last few years. The report encourages governments to assure a more equal income distribution. However, it remains unclear if the World Bank will back up its new thinking with real action. (Washington Post)World Bank Slammed for Retreating on Whistleblower Protections (February 11, 2006)
The image-driven anti corruption campaign of World Bank President Paul Wolfowitz has neither improved the transparency of the Bank, nor provided sufficient protection for internal whistleblowers. This article calls on the World Bank to publish a report on whistleblower protection grievances within the institution carried out by the Government Accountability Project. (Inter Press Service)Archived Articles
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