Taunted from all sides following its calamitous management of the crisis of the this
Multilateral debt : Debt that is owed to the World Bank, IMF, regional development banks like the African Development Bank, and other multilateral institutions like the European Development Fund.
Private debt : Loans contracted by private borrowers regardless of the lender.
Public debt : All loans contracted by public borrowers.
Third World in the 1990s, marked by the systematic application of Structural Adjustment Plans, the world Bank
The International Bank for Reconstruction and Development (IBRD) was created in July 1944 in Bretton Woods (United States), on the initiative of 45 countries meeting for the first United Nations Monetary and Financial Conference. In 2011, 187 countries were members.
Created in 1944 in Bretton Woods within the framework of the new international monetary system, the Bank has capital contributed by the member countries and above all borrows on the international capital markets. The Bank finances sectoral projects, public or private, for Third World countries and the former Soviet bloc. It is made up of the following five subsidiaries:
The International Bank for Reconstruction and Development (BIRD, 189 members in 2017) grants loans in major sectors of activity (agriculture and energy), mainly to middle-income countries.
The International Development Association (IDA or IDA according to its English name, 164 members in 2003) specializes in the granting of very long-term (35 to 40 years, including 10 years of grace) loans at zero or very low interest rates to countries with the least advanced (PMA).
The International Finance Corporation (IFC) is the subsidiary of the Bank responsible for financing companies or private institutions in the Third World.
Finally, the International Center for Settlement of Investment Disputes (ICSID) manages conflicts of interest while the Multilateral Investment Guarantee Agency (MIGA) seeks to promote investment in developing countries. With the increase in indebtedness, the World Bank, in agreement with the IMF, developed its interventions from a macro-economic perspective. Thus, the Bank is increasingly imposing the implementation of adjustment policies intended to balance the balance of payments of heavily indebted countries. The Bank does not hesitate to “advise” countries subject to IMF therapy on the best way to reduce budget deficits, mobilize internal savings, encourage foreign investors to settle there, liberalize exchanges and prices. Finally, the Bank participates financially in these programs by granting structural adjustment loans to countries that follow this policy since 1982.
TYPES OF LOANS GRANTED BY THE WB:
1) Project loans: traditional loans for thermal power stations, the oil sector, forestry industries, agricultural projects, dams, roads, water distribution and sanitation, etc.
2) Sector adjustment loans which target an entire sector of a national economy: energy, agriculture, industry, etc.
3) Loans to institutions which serve to orient the policies of certain institutions towards foreign trade and to open the way to transnational corporations. They also finance the privatization of public services.
4) Structural adjustment loans, supposed to alleviate the debt crisis, which invariably favor neo-liberal politics.
5) Loans to fight against poverty.
Site: multiplied in the early 2000s semantic pirouettes in an attempt to restore its image. It is in this context that the World Bank announced with great fanfare in 2002 the launch of a new tool called To do business (” To do business “). Aiming to determine the “business climate” of the institution’s member countries in order to attract private investors, the World Bank published an annual report including a ranking of the best students according to a series of indicators that favor big capital. and allow it to benefit from public funding, tax facilities, etc.
In the space of 20 years, criticism of this report has accumulated. Incitement to deconstruct regulatory frameworks considered restrictive, race to reduce tax value and tax evasion, promotion of agribusiness and land and basement grabbing, facilitation of layoffs and opposition to social protection of workers, the To do business undoubtedly represented the best of neoliberalism.
In 2018, Paul Romer, then chief economist at the World Bank, acknowledged that the report had a serious ideological bias, influencing the final ranking of countries. His statements follow Chile’s sudden loss of 23 places under the presidency of “socialist” Michelle Bachelet.
After new irregularities in the 2020 report and under pressure from associations, civil society organizations, trade unions, academics combined with that of the UN and theOECD
Organisation for Economic Co-operation and Development
Created in 1960 and based at the Château de la Muette in Paris, the OECD brought together in 2002 the fifteen members of the European Union plus Switzerland, Norway and Iceland; in North America, the USA and Canada; in Asia-Pacific, Japan, Australia, New Zealand. Turkey is the only DC to be part of it from the beginning for geostrategic reasons. Between 1994 and 1996, two other Third World countries joined the OECD: Mexico, which forms NAFTA with its two northern neighbours; South Korea. Since 1995 and 2000, four countries from the former Soviet bloc have been added: the Czech Republic, Poland, Hungary and Slovakia. Then other accessions occurred: in 2010, Chile, Estonia, Israel and Slovenia, in 2016 Latvia, in 2018 Lithuania and, in 2020, Colombia became the thirty-seventh member.
Site: www.oecd.org, the World Bank had finally announced that it was temporarily ending the publication of the annual report To do business while simultaneously conducting an internal audit.
Among the first conclusions of the survey, the former president of the World Bank Jim Yong Kim (2012-2019) and Kristalina Georgieva, ex-executive director of the institution (2017-2019) and current director general of the IMF
International Monetary Fund
The IMF was created in 1944 in Bretton Woods (with the World Bank, its twin institution). Its purpose was to stabilize the international financial system by regulating the flow of capital.
To date, 188 countries are members (the same as the World Bank).
Click for more. , both allegedly helped to manipulate data from the report in favor of different countries including China.
After 20 years of scandals, this victory is undoubtedly to be welcomed. The fight against this oh so anti-democratic institution is not over yet. In the same press release, the World Bank indicated that it remained “firmly committed to promoting the role of the private sector in development” and already working “on a new approach to assess the business and investment climate”. With the International Finance Corporation (IFC), one of its five subsidiaries, the World Bank has many assets to continue spreading its deadly neoliberal ideology, all with the assistance of the International Monetary Fund (IMF).
Faced with the increase in the indebtedness of the countries of the South, poverty and inequalities, the CADTM remains faithful to its political line and calls for the replacement of the World Bank and the IMF by democratic institutions which put priority on the satisfaction fundamental human rights in the areas of development finance, credit and international trade.
CADTM International, September 20, 2021
Media contact: remi [at] cadtm.org