The Human Condition — The World Bank Is Not All That It Seems To Be

The World Bank’s mission is to”end extreme poverty within a generation and boost shared prosperity” by lending money and giving out grants to private companies and governments in some of the poorest nations of the world. This money often goes towards building dams, preserving land, and developing health care systems. The World Banks’ goal is to develop and globalize “under developed” countries, sometimes by any means necessary. While the World Bank may have done some good in the world, it has also caused a surprising amount of damage to the very population of impoverished people it aims to aid. This is because the World Bank is more interested in national development than humane development.  The World Bank’s methods and behavior is subject to scrutiny and controversy. Several of such controversies will be discussed in the following entry.

When the World Bank undertakes projects in poor countries such as building dams, the very poor that were supposed to be helped are often harmed. They are often displaced without alternatives or compensation or their livelihoods are destroyed. In the last ten years, an estimated 3.4 million people have been displaced as a consequence of bank-funded projects and efforts. One mega-dam can negatively affect the lives of 50,000-100,000 people living along the banks of a river who made their living off of subsistence farming or fishing; a dam means fewer fish and an altered ecosystem. When someone is displaced as a result of one of these projects, they are forced to move or they lose at least part of their land. If someone is not physically displaced, they are at least economically displaced because their livelihood is affected. These projects often leave the poor even poorer. People who are forced to move often suffer higher rates of hunger, illness, and premature death. The World Bank funded such a project in India that forced the resettlement of people in the Narmada River Valley between 1979 and 1993. Lands that had been occupied since pre-historic times were destroyed causing many problems, the World Bank was to blame.

In Kenya, a World Bank funded land conservation project resulted in the burning of hundreds, maybe even a thousand, family’s homes in an attempt to evict them. These people were Sengwer people, indigenous to the forest being “conserved.”

In Brazil, the World Bank funded a project that improved the highway into the rainforest, subdivided the land, and allowed ownership of the land to private individuals, thus driving up traffic and land-grabbing and destroying much of the rainforest.

The World Bank seems to go forward with projects without any concern for the environment, history, and the well being of those affected.

Economically, the World Bank’s economic development endeavors wreak havoc on the poor of the world. The World Bank doles out loans and grants to governments and private corporations, but often at the expense of the general public. Unbeknownst to most, when the World Bank agrees to give a loan to a poor nation, it requires three things of the country first: 1) governments must remove all rules and regulations that obstruct the accumulation of profits, 2) they should turn over all assets, and 3) they must cut social programs. Although these loans are intended to help poor countries, the debt they consequentially accumulate ultimately hurt the debt leaden country, with most of the debt weighing upon the poor. Evidently, these actions hurt the general population and the poor and help the government, corporations, and most of all, the World Bank and its affiliates. This begs question as to the true motives of the World Bank.

When the World Bank was confronted about the destructive issues it has caused, the bank recognized these systemic problems and announced a plan to correct them in the future. It is imperative that the World Bank acts in accordance with its mission and helps the poor, not the rich.

There is always a price to change, to development. But must the poor be the ones who pay? And who decides what constitutes development? Is the destruction of history, natural beauty, and an ancient way of life development? Surely the World Bank should not have the power to make such grave decisions.

the world bank
The World Bank

This is the mission statement found on the home page of the World Bank’s website.

 

World Bank dam
NPR

This dam, between Zimbabwe and Zambia, is the world’s largest dam and was funded by the World Bank, creating serious consequences for poor people living near the river.

Sources: NPR (http://www.npr.org/blogs/goatsandsoda/2015/04/17/399816448/when-the-world-bank-does-more-harm-than-good), NPR (http://www.npr.org/2012/04/13/150557692/new-republic-controversy-over-world-bank-pick), Globalization 101 (http://www.globalization101.org/why-is-the-world-bank-controversial/), The World Bank (http://www.worldbank.org/en/about).

 

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