World Bank, Development Delusion and Other Interesting Articles

Just read a great and informative article about the World Bank entitled “The World Banks Development Delusion”. The article briefly explores the history of the Bank and argues the need for change in the funding approach used by the World Bank, in its attempts to facilitate development and reduce poverty. The article made the following interesting points:

  • History shows that most of the countries that have come under the sway of the World Bank – and its sister institution, the IMF – have experienced declining development outcomes over the past 30 years or so.
  • Developing countries need much more control over decisions that affect them. Power in the World Bank is presently apportioned according to members’ shares, just like in a corporation. Major decisions require 85% of the vote, and the United States, which holds about 16% of the shares (and controls the presidency), wields de facto veto power. The same is true of the IMF. Developing countries together hold less than 50% of the vote, which is shocking given that the institution supposedly exists to promote their welfare. • Development aid should be delinked from corporate bonds. This would take Wall Street’s interests out of the equation, eliminate the pressure to siphon wealth from debtors, and allow the bank to evaluate its performance on the basis of poverty reduction outcomes instead of loan volume, as is the current practice. (http://www.thoughtleader.co.za/jasonhickel/2012/09/28/the-world-bank-and-the-development-delusion/)

The article also reminded me about the poem The Development Set. Yes, I know I always mention this but it’s only because it’s so true and I have yet to see any real evidence of development finance institutions trying to steer away from being tarred by the same brush that tarred “The Development Set”.

Should you wish to find out more on unsustainable aid, read the article on the World Bank and its development delusions and or read the poem The Development Set, check out the links below:

The need for Sustainable Aid

Aid, Development and the Development Set

The World Banks Development Delusion

Infrastructure Development and Funding

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RIO+20:Renewing Commitment ?!?

Despite stating (in my previous post) that I wouldn’t spend too much/ or any time on Rio+20 I cant seem to prevent myself from having a little “vent”. For once, this doesn’t happen that often, I really wish that I was wrong. I had secretly hoped that I was wrong about my view that “Rio+20 is a waste of time and the money spent on Rio+20 would have probably had a better development impact if all efforts had been directed towards delivering tangible development outcomes!”

“Some 40,000 environmentalists and 10,000 government officials gathered with politicians from 190 nations for a meeting which the UN Secretary-General Ban Ki-moon said was “too important to fail”. (S Nair in the Tribune India)

I had hoped that at the close of the summit I would hear the awesome news that despite all the divergent views etc the summit was a success and then a plan of action with appropriate funds and an implementation team had been agreed upon and that the world would finally be able to see some effective development actions being implemented. Instead I find waiting in my inbox a copy of “The Future We Want“. The outcome of the Rio+20 Summit. The text starts with the following;

” We, the heads of State and Government and high level representatives, having met at Rio de Janeiro, Brazil, from 20-22 June 2012, with full participation of civil society, renew our commitment to sustainable development, and to ensure the promotion of economically, socially and environmentally sustainable future for our planet and for present and future generations.” (The Future We Want, 2012)

My first though was (and still is) “is that it!”…  I do understand that the begining does not comprise the message of the entire document but unfortunately the opening statement pretty much sums up the entire document. Thousands of powerful people, government representatives, the development set, the green bling brigade etc all met up in Rio to renew committment! We have been committed to sustainable development, poverty eradication, access to energy and safe drinking water for all etc etc etc…. for at least 20 years or so?

Could we not have had the same outcome if the key people had met up on skype, or via a conference call etc to renew “our” committment!, recognise what needs to be done, reaffirm other commitments and acknowledge that we have a problem? 

 But, as I said it’s just a thought, and there is no point in crying over spilt milk or wasted funds or a (rather large) carbon and ecological footprint.

Click here to link to the full the full text of the “The Future We Want“.