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Exposing The World Bank’s Lies – Jomo Kwame and Anis Chowdhury

The following is an excerpt from an article written by Dr Jomo Kwame Sundaram and Anis Chowdhury. The World Bank has been fraudulent. I am not surprised at all. 

SYDNEY and KUALA LUMPUR: The World Bank has finally given up defending its controversial, but influential Doing Business Report (DBR). 

In August, the Bank “paused” publication of the DBR due to a “number of irregularities” after its much criticized ranking system was exposed as fraudulent.

Apparently, data from four countries – China, Azerbaijan, the UAE and Saudi Arabia – was “inappropriately altered”, according to the Wall Street Journal. Exposure of these irregularities was the final straw: now, it is uncertain whether the DBR will return after its suspension.

Exposing the lie

After Chief Economist Paul Romer told the Wall Street Journal two years ago that he had lost faith in the “integrity” of the DBR, and apologized to Chile for possibly politically motivated data manipulation, he was forced to resign. 

Romer later received the so-called Economics Nobel Prize subsequent to his resignation. 

Justin Sandefur and Divyanshi Wadhwa of the Center for Global Development (CGD) exposed how ostensibly methodological tweaking changed Chile’s and India’s DBR rankings to bolster “market-friendly” Piñera and Modi vis-à-vis their more centrist opponents. 

Doing Business vs SDGs

For the Doing Business Report, it did not matter if reducing regulations harmed the environment or employment conditions, or if lowering taxes constrained governmental capacity to fund public investment and provide decent public health or social protection as long as such “reforms” lowered the costs of doing business.

  • Singlehandedly, Djankov exposed the shallowness of the Bank’s commitment to the Sustainable Development Goals (SDGs). 
  • By undermining social and environmental dimensions, Djankov exposed the Bank’s actual attitude to sustainable development.

Such ranking competition has encouraged debilitating investor-friendly government behaviour. The index has become a tool for governments to formulate, evaluate and legitimize their economic policies. 

Indonesia’s recent “Omnibus Bill” ostensibly for job creation includes many market-friendly reforms that would most certainly boost Indonesia’s DBR ranking. The bill, from a government increasingly influenced by the World Bank, is now widely criticised for heavily favouring powerful business interests at the expense of workers, human rights and the environment.

The World Bank must also end other similar ‘ideologically driven’ exercises, such as its Enabling the Business of Agriculture (EBA) and Investing Across Borders (IAB) indicators, which prioritise FDI, typically at the expense of some SDGs.

Our Land; Our Business highlighted that the EBA will encourage corporate land grabs and undermine smallholder farmers who produce 80% of food consumed in the developing world.

In January 2017, over 158 organizations and academics from around the world denounced the EBA to the World Bank President and its five Western donors (USAID, DFID, DANIDA, the Netherlands, and the Gates Foundation), demanding its immediate end.

Favouring Foreign Direct Investment

The Bank’s International Finance Corporation (IFC) introduced its Investing Across Borders (IAB) indicators in 2010. IAB indicators encourage frameworks that limit benefits for host countries besides enhancing the harmful effects of cross-border investment deals.

One size never fits all

The rise and fall of the DBR expose the dangers of using and exaggerating the significance of standardised rankings for very different countries and business environments. 

Growth drivers and constraints are very context specific, so reform priorities should also be context specific. Therefore, a one-size-fits-all approach ..is very problematic, especially one based on the interests and priorities of particular institutions and powers.

The Bank should stop doing harm by concentrating on its original mandate of intermediating finance at the lowest possible cost for sustainable development, relief and recovery in our extraordinary times. 

It should stop misleading the world, especially developing countries, with its highly biased supposed knowledge products.

My comments : Do you all recall the IMF? International Monetary Fund? Our Brader was very friendly with the IMF. Of course he still does not understand anything about the IMF. Here is a pop question – do you think the Brader will understand what is being said by Jomo in this article about the fraudulent misrepresentations by the World Bank?

The World Bank, the IMF, the United Nations and all these international organisations are all set up by the Western powers, using a lot of Western money. Do you honestly think they will NOT WANT a return on investment or ROI from their money?

Have you heard of the World Wildlife Fund? 

They want us to stop developing our lands to save the tigers from extinction. 

But they have done absolutely nothing about the fact that the majority of the world’s known tiger population is kept in private zoos and private homes in the United States of America. 

And look at this photograph below here. You can see two great white hunters who have just shot and killed a huge African elephant. They have taken the mandatory ‘trophy’ picture.

The guy who shot the elephant was the older guy in the picture who is actually Juan Carlos the King of Spain at that time (circa 2012). 

King Juan Carlos was also the Honorary President of the World Wildlife Fund in Spain for 44 years – from 1968 until he shot this elephant in 2012. 

If you look at the easy way the King is holding his large bore elephant gun it is obvious that this was not the first time he went out shooting large animals. 

Juan Carlos was also becoming an embarrassment. He was involved in financial scandals, corruption and sexual escapades which finally forced him to abdicate in 2014 and run away from Spain. He lives in exile in the UAE.

The whole damn lot are hypocrites. The World Bank, the IMF, the WWF, the United Nations.

Here is a pop question – has the United Nations ever stopped any wars? 

Instead the US and the UK use the UN to declare war against countries. 

The UN mandated war against Iraq, the UN mandated war against Afghanistan, etc.

Shithole countries nonetheless but they do not deserve to be bombed and have millions of their people killed.

Just keep this in mind folks – they are all liars.

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