World Bank Book Claims: "We Hear the Poor"
A review of the book
by Kevin Danaher
Global Exchange
Voices of the Poor: Can Anyone Hear Us?
by Deepa Narayan, World Bank and Oxford University Press,
2000,
343 pp.
Reviewed by Kevin Danaher, Global
Exchange
Don't be fooled by the title of this new book from
the World Bank. It contains useful documentation of the symptoms
of global poverty, but it fails to address the causal roots of
inequality:
a market-based economy dominated by large corporations. Because
markets respond only to money, it is understandable that inequality
gets worse every year as market redistribute wealth and resources
toward those who already have money. How else to explain the
simple
fact that inequality ˜ the distance between the ruling elites and
the majority who are poor ˜ is worse than ever and keeps getting
more obscene every day?
Over the past 50 years the globalization of the
economy ˜ led by the World Bank, the IMF and transnational
corporations
˜ has proceeded at a quickening pace. This globalization of market
forces has greatly increased inequality. The United Nations
Development
Program (UNDP) reports in its 1998 Human Development Report that
the richest 20 percent of the world‚s population consumes 86% of
the world‚s resources, and the poorest 80% of the world‚s people
account for just 14% of global consumption spending.
The book also fails to address the role of the
World Bank (and its sister institutions, the IMF and World Trade
Organization) in promoting this economic model that puts profits
of corporations ahead of people and the environment.
Voices of the Poor comes in response to
intensified criticism from grassroots organizations which have
pointed
out that transferring large sums of money from first world elites
to third world elites does far more to cement the transnational
alliance of elites than to promote balanced development. The book
˜ along with recent rhetoric lamenting poverty by World Bank
President
James Wolfensohn and other top officials is a sure sign that we
in the movement are winning moral and ideological battle. When
your
opponent starts mouthing your ideology, it's a sure sign you've
got him on the ropes.
The book does affirm things the opposition
movement
has known for years, such as: "Development assistance is
geared
to move large amounts of money through inefficient and frequently
corrupt bureaucratic systems with little flexibility." (p.
282) But the Bank makes it seem as if "corruption" is
a psychological flaw of third world elites, rather than a structural
feature of the global political economy in which third world elites
are more beholden and accountable to elites in Washington and Wall
Street than to their own people. Evidence from dozens of countries
shows that the policies promoted by the World Bank are disastrous.
Structural adjustment policies may help countries make payments
on their foreign debts but the majority of the population suffers
lower wages, reduced social services and less democratic access
to the policy-making process.
Brazil is a huge country with every natural
resource
you can imagine. Yet there are between 7 million and 10 million
abandoned children, living on the streets with no adult supervision.
Although the Brazilian government has been collaborating with IMF
and World Bank officials in making payments on the foreign debt,
Brazil is deeper in debt now than it was twenty years ago. The
commercialization
of agriculture has pushed millions of family farmers off the land
into crowded urban slums. Brazil ranks as one of the most unequal
societies in the world.
Mexico is well endowed with petroleum, good
farmland,
an abundant labor supply, mineral resources and forests. Yet despite
some years of high GNP growth rates, the standard of living of most
Mexicans is worse now than it was twenty years ago. More than half
the population is either unemployed or underemployed; family
farmers
are being forced off their farms; environmental destruction is
mounting;
poverty-driven crime has soared; and the corruption of Mexican
elites
(more beholden to outside money than to their own people) is
legendary.
Across Africa there are dozens of countries that
have been under the tutelage of the free-market pushers for
decades,
and what has it gotten them? Great amounts of wealth have been
extracted
from the continent, external debt and interest payments have
skyrocketed,
real wages have declined, social services have deteriorated, the
environment has been decimated, and hopelessness is
spreading.
Until the World Bank changes its policies in
profound
ways, no amount of "listening to the poor" will fix what's
wrong with the world.
* Kevin Danaher‚s latest book is Globalize
This!:
The Battle Against the World Trade Organization and Corporate
Rule.
(Monroe, Maine: Common Courage Press )
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