World Bank Slammed by MSP

25 February 2008

PRESS RELEASE

For Immediate Use

World Bank Slammed by MSP

Dr Bill Wilson, MSP for the West of Scotland, last week lodged a Parliamentary motion supporting the Independent People’s Tribunal on the World Bank Group in India. The tribunal, at which the views of leading figures from legal, literary, religious and scientific spheres were represented, condemned the World Bank Group for approving loans that “have caused extensive social and environmental harm”.

Speaking after lodging his motion, Dr Wilson said that he was aware that Nobel Prize-winning economist and former World Bank Chief Economist, Joseph Stiglitz, had also found fault with the institution and with the International Monetary Fund. Dr Wilson said that in the past too much pressure had been applied for developing countries to open up their economies too quickly: “This is not how today’s leading economic powers developed. It’s hypocritical and destructive to allow multinationals untrammelled access. Local businesses in developing countries often cannot compete with multinationals and jobs and local expertise are lost.

“In the case of India it is fair to say that the World Bank’s policy contributed to the deaths of many poor people. According to the Tribunal’s jury, World Bank-sponsored policies put tremendous pressure on the poorest people in India and the suicides of 137,000 poor farmers between 2001 and 2007 were at least partly attributable to this.”

Dr Wilson continued, “To make the point about the effects of World Bank pressure clearly I can do no better than quote from the jury’s statement:

‘India's farmers must now compete with imports from the heavily subsidized farms of the European Union and North America, at the same time when even the most meager state assistance for the poorest farmers is reduced. India was once self-sufficient in food production; its food security is now dependent on imports. It is clear to us that major World Bank Economic Restructuring, Structural Adjustment, and Sector Loans have directly promoted and helped to finance these economic policy changes which are a disaster for much of India's more than 700 million rural inhabitants, and most disastrous of all for poor farmers.’”

Dr Wilson concluded, “The tale of woe goes on and on. The rich should not get richer at the expense of the poorest in society. I welcome the Tribunal’s report, and sincerely hope that the World Bank will change its approach. If it does not do so, then I call upon the new Indian Government to put the interests of the poorest in Indian society first and to resist the blandishments of those who appear to act only for the benefit of multinational companies.”

Notes to Editors

1. Text of Bill Wilson’s motion

Date of Lodging: 22 February 2008
Short Title: Independent People’s Tribunal on the World Bank Group in India

S3M-01400 Bill Wilson (West of Scotland) (SNP): That the Parliament

notes the Independent People’s Tribunal on the World Bank Group in India, which involves retired justices of the supreme and high courts, leading writers, religious leaders, activists and academics; agrees with its condemnation of the World Bank for approving loans that “have caused extensive social and environmental harm”, unduly influenced the Indian policy-making process and promoted the establishment of common effluent treatment plants that failed to meet environmental norms, and further notes that Indian Government and World Bank officials failed to represent themselves at the tribunal despite two weeks’ notification.

2. Website of World Bank Group in India Tribunal

http://www.worldbanktribunal.org/