World Bank indicted for meddling with India`s policies
criticism against the World Bank (wb) has just become strident. At a time when India has become the biggest recipient of wb loans, a people's tribunal in Delhi has accused the bank of trying to influence the country's policies in favour of the corporate sector. Questions are also being raised whether it is India or the bank that benefits from the lending business.
The Independent People's Tribunal on the World Bank, held at Jawaharlal Nehru University (jnu) from September 21 to September 24, publicly audited programmes introduced by the bank in India for developmental activities. After listening to 60-odd depositions made by activists, economists, lawyers and researchers, the jury, in its preliminary findings, charged the bank with serious violations of democracy and human rights and indicted it for meddling with India's sovereignty.
The tribunal's condemnation has come after wb's lending to India increased by 169 per cent in 2006-2007 over the previous year. The bank has sanctioned credit worth us $3.8 billion to India, the highest lending from any multilateral bank to any country.
The jury, which included activist Aruna Roy, former Supreme Court judge P B Sawant, writer Arundhati Roy and economist Amit Bhaduri, noted that the bank had a negative influence on India's national policies. The bank said it was not accountable to the people's tribunal and stayed away.
Accusations and anguish The accusations levelled against the bank were many, whether it was 137,000 cases of suicide by farmers between 2001 and 2007, fisherfolk's problems with costal zone management, water privatization in Karnataka and Delhi, relocation of slum dwellers or rehabilitation of tsunami victims. The consensus that emerged at the tribunal was that in the name of development, the bank has helped corporates make billions while ignoring the need for equity, community participation and local problems. The view adopted by the tribunal was that wb had tactically planned its agenda in such a manner that countries seeking assistance would be forced to change their policies and laws according to its dictates. Bureaucrats on deputation to wb and similar organizations, like the Asian Development Bank and the International Monetary Fund, return home only to become clearing agents for these institutions.
The bank has also positioned itself as a credible knowledge provider, funding policy-oriented research. During 2005-08, the bank plans to undertake 15 major studies, including strategic issues in India's water sector, agricultural marketing and value chain development. The bank uses such research, prepared jointly with Indian policy and economic research institutions and think tanks, to push policy