Wednesday 13 August 2014

Back Side of World Bank

Everybody knows world bank Group which is a American bank & help developing countries by giving them loan for development activities.
And its motto is "working for a world free of poverty"
and its goals are:
* Eradicate extreme poverty and hunger
* achieve universal primary education
* promote gender equality
* reduce child mortality
* improve maternal health 
* combat HIV/AIDS, Malaria and other diseases 
* ensure Environment sustainability  
* Develop a Global partnership for Development

All this looks quite good as far as we don't get in detail of their working process. YES Definitely its goals are very Important and necessary in today's world & it shows a good heart of it (America) towards the word ,as they wanted to help the poor nations. its goal is remarkably excellent.

but then the other thing also comes into mind and that is WHY SO? 
WHY are they doing it, is it just that they want to help or its something else also, something Hidden , something Disguise, something under veil which also need to look upon when we are making our perspective towards it. and that is, what are their disguise short term plans &  their long term plans ?

Am specially focusing on its dark uncovered side only because its white face it beautiful , and it is know to every body you can check it on their website that, what good things they are doing or intended to do in developing economies. Its totally in black and white. But what ever is in Grey their , that is totally uncovered and on which majority of people(Nation, TV channels, Newspaper, and famous Economist and bloggers) don't focus. 

And that is a perspective on the Essential Condition which one needs to follow in order to get loan form world bank and its subsidiaries and that is its "STRUCTURAL ADJUSTMENT PROGRAMS" clause.

Most of the countries which takes loan form world bank, IMF or others are Weak Economies &  they want/took loan from these World banks just because they are going through immediate financial needs or crisis at their country & at that moment world bank by showing its "Poverty reduction and helping nature" stand gives them loan and poor countries thank the world bank like GOD and doesn't even think or bother about the long term and short term effects on their countries by taking a loan from World bank & Signing the agreement of SAPs (structural adjustment programs) 

 I here don't want to go on much detailed criticism on SAPs and just will focus on 2-3 major Policies under it, if analyse it in deeper and deeper you will found that world bank in disguise of helping other poor countries actually assaulting and harassing the Poor counties which took loan from it in short term as well as in long term and actually in broader terms making the lives of poor country more vulnerable and miserable.

SAPs important conditions are implementing first AUSTERITY & second FREE  MARKET  program and policy i.e., privatization and deregulation in key public services.

first Austerity means a reduction in the Interim financial budget amount of the host/poor country, this is happening on the moment when they are most required to increase their financial budget amount as the country is going through crisis. and people need help from government side. 
these polices includes cut in govt. spending and increase of tax amounts , when the people have least money as country is going through crisis and people had little money left with them. at this condition for taking a loan local govt have to cut existing help and raise taxes so the poor people move to extreme poverty  and this is completely opposite of world bank motto.

And second is this free market policy that is Privatization of public services like transport, telecom, infrastructure, energy generation and others like this & deregulation of local govt in these sectors and reduction of Trade barriers.
all this actually weakening the condition of poor economy which is already suffering financially as its Govt. and People both have less money, and people of native country don't even have much money to take benefit out of privatization but the Top foreign companies which is mostly of America have a lot of money to invest and raise their profit out of hit. Now they got chance to enter this poor economy as the trade barrier is also reduced, and this is how then these companies take benefit of this kind of poor Blackmailed country and now the companies of America misutilizing and take benefit of cheap resources at poor host country. 

And the money which is taken by the poor country to improve their economy indirect goes back to America by its Global MNC's which sends their profit back to homeland and atlast host country Remains with A Huge debt, its Repayment amount, its interest, less resource, more poor people, more poverty, their countries captured by Big MNC companies(america).

After the two World war all countries learns one thing and that is no country can dominate on others by Militarily but yes through Organisations like World Bank Group and others America has found a complete new way to control and dominate this world. AS nothing is permanent so this will also change.

Atlast just want to say what a BRILLIANT way of  a new world order. hope so this is wrong, and future will be bright, As India is the top receipts of world bank loan i.e.,$9 Billion which is 15% of the total loan given by world bank and its looks like India's GDP growth is proportional to the amount of loan it gets by world bank group. :P

for more on Structural Adjustment.



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