IMF and World Bank are losing clout in developing countries

[Judi Lynn]

IMF and World Bank are losing clout in developing countries

Developing nations are organising within the IMF and World Bank to counter their neoliberal policies

Mark Weisbrot
The Guardian, Thursday 30 May 2013

There is a battle going on within and outside the World Bank right now over its flagship Doing Business report and index. This may not appear to be exactly a household issue, but the fight is a very significant one for a number of reasons.

The index ranks countries according to the "ease of doing business", including such things as starting a business, enforcement of contracts, paying taxes and other indicators. It has been under attack for years because it has a built-in bias against many regulations that people who care about the progress of humanity might see as important: employment protections; necessary taxation; health, safety and environmental regulation; and of course most state-led development policies.

As noted recently, the fact that the Bank gives higher marks for "fewer restrictions on permits for construction" means it ignores the safety and environmental concerns that can contribute to disasters such as last month's Bangladesh factory collapse.

There is evidence that countries have deregulated in harmful ways in order to get a better ranking. And despite years of controversy and a 2008 internal evaluation critical of the index, the Bank still uses it as a criterion for lending to low-income countries.

More:
http://www.guardian.co.uk/commentisfree/2013/may/31/imf-world-bank-lose-influence-developing

[Laelth]

1. k&r for exposure. n/t

-Laelth

[The Magistrate]

2. And They Damned Well Should, Ma'am

Those bodies do far more harm than good, and always have.

[Doctor_J]

3. Maybe the citizenry there don't like their countries

being considered nothing more than investment opportunities and natural resource reservoirs - some sort of global property

[jade3000]

4. Important topic, always glad to see it addressed, nt

[crimepaysintheusa]

5. Imf caused HUGE INCREASE IN DEATH RATES DUE TO STARVATION IN AFRICA

PROFITS OF FAMINE

http://www.thirdworldtraveler.com/Africa/Profits_Famine.html

The situation is similar in Malawi where, in 2001, the IMF told the government to slash its strategic grain reserve from 165,000 metric tons (MT) to between 30,000 and 60,000 MT. The IMF advocated this on cost grounds, and because erroneous data persuaded them that the coming year's harvest would increase stocks. A year later, when people were already beginning to die of starvation, the IMF denied disbursement of a $47 million tranche of loans to the Malawian government amid accusations of impropriety in the government's efforts to mitigate the famine. The government accused the IMF of causing the famine, while the IMF blamed the government for corruption before admitting that it had, perhaps, behaved insensitively. Horst Koehler, managing director of the IMF, said at a British parliamentary hearing:
n the past we (the IMF) have not given enough attention to poverty and social safety nets when proposing structural changes. But structural changes are always accompanied by dislocation. We must live with permanent change in order to achieve economic growth in developing countries. .. [developing countries] should be able to produce food for themselves-and we should help them strengthen capacity to produce food.
Meanwhile, thousands were starving, and grain was being stockpiled by speculators betting that the famine would drive up maize prices-behaving, in short, precisely as they ought in a free market with high demand and a tight supply.

[hrmjustin]

6. Welcome to DU my friend!

[Kali]

7. good points, but no need to shout

welcome to DU

[In_The_Wind]

8. Hello ~ crimepaysintheusa

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