Part 2-II Section Outline

50th Anniversary of the World Bank & the IMF Prompts Criticisms

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1. Environmental Criticisms of the BWIs by Environmental Organizations and Indigenous and Local Populations in the Developing World
   1. The World Bank: Criticized for Contributing to Adverse Environmental Impacts in the Developing World.
      1. Critics charged that the World Bank funded projects that contributed to massive environmental damage.
         1. CASE STUDY: Nepal: The Arun III hydroelectric project sparked protest around the world and was ultimately abandoned by the World Bank.
         2. Critics linked other controversial projects funded by World Bank to environmental degradation in the developing world.
      2. Critics of the World Bank alleged that it advanced the interests of industrial countries and their environmentally destructive policies.
         1. CASE STUDY: In 1994, Greenpeace charged that the World Bank had neglected its duties, undermining implementation of the Montreal Protocol.
         2. Critics claimed the World Bank enabled exploitation of natural resources in developing countries by the industrialized world.
         3. Critics charged that the World Bank facilitated the export of environmentally harmful technologies from the industrialized world to developing countries.
      3. The World Bank was criticized for worsening the plight of the small farmer.
         1. CASE STUDY: Bangladesh: Hajera's story—how a flood control project funded by the World Bank threatened the livelihood of Bangladeshi rice farmers.
         2. Critics contended that the World Bank ignored project design flaws and poor planning, pushing ahead with expensive and sometimes harmful or unnecessary initiatives.
   2. The International Monetary Fund was also Criticized in the Early 1990s for Contributing to Adverse Environmental Impacts in the Developing World.
2. Human Rights Criticisms of the BWIs in the Early 1990s
   1. Critics of the World Bank Claimed that it Habitually Funded Projects that Undermined Human Rights.
      1. Forced resettlement of indigenous and local populations as a part of initiatives funded by the World Bank was reviled by critics in the early 1990s.
         1. CASE STUDY: Indonesia's transmigration program—critics asserted that the plan was a failure, pointing to rampant poverty, strife, and disease at resettlement sites.
      2. World Bank critics alleged that the institution threatened the rights of indigenous peoples.
      3. In the early 1990s, the World Bank was charged with failing to deal with women's role in development.
   2. More Criticisms of the BWIs: Observers Claimed that Structural Adjustment Programs Exacted Enormous Social Costs on Developing Countries.
      1. CASE STUDY: Latin America: Finance Ministers from three countries touted by the World Bank and IMF as "model economic reformers" challenged the BWIs' fiscal policies.
   3. The BWIs Were Reviled by Critics for Making Loans to Nations that had a History of Human Rights Violations.
3. Critics Charged that BWI Funding Policies and Preferences Fostered State-Controlled and Therefore Inefficient Economies
   1. Supporters of Liberalized Markets Claimed that the BWIs Promoted State-Dominated Development.
   2. Fiscal Conservatives Criticized BWI Lending as Encouraging Risky Investments.
   3. The BWIs were also Criticized for Failing to Distinguish Between "Good" and "Bad" Credit Risks.

[Part Two Bibliography]

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