- js reader version
- view hidden posts
- tags and related articles
by Michael R. Kratke
Friday, Jun. 22, 2007 at 2:25 AM
Many developing countries that gained needed credits only on World Bank conditions are poorer today than before. The Good News is that the cartel of creditors is dissolving. Former debtors threaten to become independent.
THE WORLD BANK’S CUSTOMERS ARE DISAPPEARING
The personnel change from Paul Wolfowitz to Robert Zoellick will not stop the decline and fall
By Michael R. Kratke
[This article published in: Freitag 23, 6/8/2007 is translated from the German on the World Wide Web, http://www.freitag.de/2007/23/07230201.php.]
In Heiligendamm, the big sponsors of the World Bank assembled. Nothing happens in international development assistance against the will of the G8 states. They are the main actors in the cartel of the creditor states of the North. For years, the World Bank has acted as their long arm and heavy club in the countries of the South.
In the meantime the World Bank has cleaned up its corruption affair. Wolfowitz left and Zoellick has taken over. Nothing is changed – either in the dominance of the US or in the inflexible neoliberal policy pursued by the Bank ever since it cooperated with its big sister, the IMF, in the eighties. Wolfowitz and Zoellick dine in the same neoconservative club. Both beat the drums for the Iraq war; both are closely allied with the Bush dynasty.
Still world bankers are corrupted even when the right things are verbally promoted. At the top of the hierarchy of the 10,000 highly trained economists employed by the enterprise, the executives receive 0,000 a year. A top functionary of the most powerful development assistance organization of the world earns more in a day than the per capita income of a third of the world’s population earns in a year. How can these people understand what they inflict with their credit policy? What for them is only the budgetary reorganization of a debtor country that must cut social- and education spending to appease its international creditors – is a catastrophe for the people who survive on less than two dollars per day: no schoolbooks, no medicines and no doctors.
The World Bank now has greater problems than narrow-minded and corrupt top functionaries. It is mired in the most serious financial crisis of its history. Its legitimation as a bank of developing countries is permanently damaged. Its customers run away. The Wolfowitz affair would have been a good opportunity for symbolic policy. There were many other candidates for the post of head of the World Bank – like Mohammed Yunus awarded the 2006 Nobel Prize for peace for his work for micro-credits. However a banker of the third world like professor Yumus obviously doesn’t get a chance in the elite circle of “global governance.” As the largest shareholder of the World Bank, the US traditionally has the privilege of proposing the president. The European partners may propose a candidate for the post of IMF head.
Up to today, the World Bank has awarded over 0 billion in credits to developing countries and has lived from the chronic debt crisis in this part of the earth for 25 years. Together with the IMF, the World Bank has hardened into the severe disciplinarian that drums economic rationality – above all “budgetary discipline” – into debtor countries. Many developing countries that only gained needed credits on World Bank conditions are poorer today than before. Wherever it can, the Bank meddles vigorously as an agent of the creditor cartel in the internal affairs of debtor countries (one example is the notorious structural adjustment program, SAP). This is still the crux of development policy. The G8, the big players in the World Bank, are mainly responsible for the disaster – as long as they understand development policy as the perpetual magic formula of neoliberal dogma: opening markets, liberalization and freedom of capital transactions! The World Bank still acts as the spearhead of privatization in the countries of the South and forces their governments to impose school fees and tuitions and transfer railroads, hospitals and water- and electricity supply to private profiteers. Terrible devastations occurred in the states handed over to this policy. Many experts of the World Bank have recognized this. Joseph Stiglitz is the most prominent rebel of the econocracy.
The Good News is that the cartel of creditors is dissolving. The wards of the World Bank are freeing themselves from its coercion. Brazil, Argentina, Ecuador, Chile and other threshold countries have paid off their debts ahead of time. In April 2007, the Venezuela government announced it would repay .3 billion of credits incurred before 1999, five years before their due date. Shortly after that, President Chavez declared Venezuela’s withdrawal from the World Bank and the IMF. It is no wonder he has advanced to the most-hated man by international financial experts because the World Bank lacks revenues, the constantly expanding credit sums. The world of international finance markets which includes the World Bank depends on the constant growth of credits and fictional capital or debts. A bank from which customers run away and revenues collapse has to close.
Even worse for the World Bank, former debtors threaten to become independent and have their own structures. Venezuela and Argentina have announced the founding of the Bank of the South. Brazil, Bolivia, Ecuador and Paraguay, other states in Central America and the Caribbean want to join. Venezuela and Ecuador are Latin America’s two largest suppliers of crude oil. Money is not lacking to give a good start to the new development Bank of the South. This policy could win many admirers.
Report this post as:
Change Links 2018 July posted
More Pix: "Families Belong Together," Pasadena
"Families Belong Together" March, Pasadena
Short Report on the Families Belong Together Protest in Los Angeles
Summer 2018 National Immigrant Solidarity Network News Alert!
Watch the Debate: Excluded Candidates for Governor of California
Change Links June 2018 posted
The Montrose Peace Vigil at 12 Years
Unity Archive Project
Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi
CA Senate Bill 1303 would require an independent coroner rather than being part of police
Three years after OC snitch scandal, no charges filed against sheriffs deputies
California police agencies violate Brown Act (open meetings)
Insane Company Wants To Send Nuke Plant Waste To New Mexico
Change Links May 2018
Worker-Owned Car Wash on Vermont Closed
GUIDE TO REBEL CITY LOS ANGELES AVAILABLE
lausd whistle blower
Help KCET and UCLA identify 60s-70s Chicano images
UCLA Luskin: Casting Youth Justice in a Different Light
Change Links April 2018
Nuclear Shutdown News March 2018
Join The Protest Rally in Glendale on April 10, 2018!
Spring 2018 National Immigrant Solidarity Network News Alert!
Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A.
Steve Mnuchin video at UCLA released
Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups
More Local News...
Un monde de pauvreté
14 Disturbing Facts About Scott Gottlieb, Trump's FDA Head
Behind the scenes at fbi National Academy
Treasury Takes Aim at Shell Companies
Paraphysique de l'intelligence
Oklahoma GOP Senator Jim Inhofe's Bloody Record
Globalization: hope on the horizon despite Fake Liberals.
Sorry President Trump,Ted Cruz Texas Judicial System,is Worse Than Many Shithole Countries
The Shortwave Report 07/20/18 Listen Globally!
The System Question as a Survival Question
Nation's Largest Voting Machine Co., ESS, Admits Lying Re Having Installed Remote Control
Du pain et des jeux
Paraphysique de martyrologie
Children Incorporated Earns 4-Star Rating on Charity Navigator
Democratic Socialists of America
Leonard Peltier Non Violent Native American Political Prisoner since 1970's
Paraphysique miscellanées de l'aggiornamento
FBI Investigated LA County Sheriff Baca,Why Not Hank Skinner's Persecution?
Updated Partial List Of Famous Vegetarians, Vegans, & Fruitarians
The Shortwave Report 07136/18 Listen Globally!
Social Policy as Social Infrastructure
Vol I: 84 Varieties Of GOP Election Fraud
Texas Can Call it An Execution,But It is A State Sponsored Murder of Hank Skinner..
June 2018 Honduras coup update
Maria Estrada doubles down on racist support
New York Women in Film & Television Announces 2018 NYWIFT Ha Phuong Scholarship Recipients
Trapps de la domination, trapps de l'aliénation
Please Work For The Defeat Of Brett Kavanaugh And Why
More Breaking News...