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donsu Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 11:41 AM
Original message
The real scandal at the World Bank

http://comment.independent.co.uk/columnists_a_l/johann_hari/article2486595.ece

Johann Hari: The real scandal at the World Bank
The Bank is killing thousands of the poorest people in the world


While the world's press has been fixated on the teeny-weeny scandal over whether the World Bank president Paul Wolfowitz helped to get his girlfriend a $300,000-a-year gig next door, they have been ignoring the rancid stench of a far bigger scandal wafting from Wolfie's Washington offices.

This slo-mo scandal isn't about apparent petty corruption in DC. It's about how Wolfowitz's World Bank is killing thousands of the poorest people in the world, and knowingly worsening our worst crisis - global warming - every day.

Let's start with the victims. Meet Hawa Amadu, 70-something, living in the muddy slums of Accra, the capital of Ghana, and trying to raise her grandkids as best she can. Hawa has a problem - a massive problem - and the World Bank put it there. She can't afford water or electricity any more. Why? The World Bank threatened to refuse to lend any more money to her government, which would effectively make it a leper to governmental donors and international business, unless it stopped subsidising the cost of these necessities. The subsidies stopped. The cost doubled. Now Hawa goes thirsty so her grandchildren can drink, and weeps: "Am I supposed to drink air?"

She is not alone. Half a world away, in Bolivia, Maxima Cari - a mother - is also thirsty. "The World Bank took away my right to clean water," she explains. In 1997 the World Bank demanded the Bolivian government privatise the country's water supply. So Maxima couldn't afford it any more. Now she has to use dirty water from a well her villagers dug. This dirty water is making her children sick, and she is sullen. "I wash my children weekly," Maxima says. "Sometimes there's only enough water to wash their hands and faces, not their whole body ... This is not a nice way to live." The newly elected socialist government of Evo Morales is planning to take the water back - and he is, of course, condemned and threatened by the World Bank.

-snip-

The campaign to make World Bank bonds as untouchable as apartheid-era investments has already begun. The cities of San Francisco, Boulder, Oakland and Berkeley have sold theirs. Several US unions have also joined. Even this small ripple has caused anxiety within the bank about the threat to its "AAA" bond rating.
-snip-
-----------------------------------------------------

the global daily death rate will go up and up and up.....
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cliss Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 11:50 AM
Response to Original message
1. Well, now....
Where there's smoke there's fire.

I knew that when the Wolfotwit scandal broke, there would be more. As the fighting continued, both sides started divulging things.
I knew there was more, I hoped the would keep going.

Well, there was more....
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rurallib Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 11:57 AM
Response to Original message
2. Thank you so much for this
Privatizing of human necessities is a horror (and terrorism to me). I have sent a letter to our rapid response group to see if we can start some action in this area.
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Mist Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 11:58 AM
Response to Original message
3. I thought the World Bank had been doing this for years--just that under
Wolfowitz it had become worse. More blatant corruption a la Bushco. But the World Bank aren't the good guys in this mess--it's just that Wolfowitz' way of doing things apparently was too much even for them.
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peacetalksforall Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:01 PM
Response to Original message
4. This world needs a massive size exposure of the World Bank and IMF.
Edited on Sun May-06-07 12:04 PM by higher class
We were raised to believe they were these helpful and watchful lenders. Throughout the decades we find that their best friends are leaders who get bought out and got bought out and allowed bank failures and wipe-out cycles repeatedly.

Then, knowing what they knew - our leaders went into Paraguay - got a deal with their leader. Moon moved in. AND THE US MILITARY. We built bases and moved some platoons in. WHY - Water, water, water, gas, copper, rich minerals. Paraguay is on the largest aquafir in this hemisphere - Moon bought nearby. Taking over the water in Bolivia (by the World Bank and private firms (French and Bechtel) means control of the people and also taking the gas and the rest of the stuff. You see, those earth resources don't beling to the people who live there who are citizens of their country - they belong to the corporations. Isn't it clear?

And then they get a new leader - a people's President - and not a World Bank leader. Oh no! That can't be. For decades the World Bank had it nice - got their people in there - Presidents - now exiles in Marbella, Ibiza, Coral Gables, London, Paris, Florence. Maybe Dubai?

So, the U.S. military is there. Wanna know the reason they gave - said something about terrorists crossing borders there areound Brazil, Argentina. Didn't say what kind, so we can only presume they meant al Queda. RIght?

I say a prayer that the nations of South American can pay off their debt with the help from each other.

Who needs these institutions that keep people in perpetual poverty?
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CrispyQ Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:10 PM
Response to Original message
5. Words fail me.
This dirty water is making her children sick, and she is sullen. "I wash my children weekly," Maxima says. "Sometimes there's only enough water to wash their hands and faces, not their whole body ... This is not a nice way to live."


k&r

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valerief Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:22 PM
Response to Original message
6. Bootstraps. Bootstraps and Jesus. And the daily platitude. That'll
fix the problem.

The cruelty of the worldmasters never ceases to amaze me.
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Cerridwen Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:26 PM
Response to Original message
7. Remember to mix in the deadly ingredient called "vulture funds"
and you'll have an even larger picture of this recipe for disaster.


<snip>

US courts

The vulture funds raise most of their money through legal actions in US courts. Those actions against foreign governments can be stayed by the word of the US President and that is where lobbying and political influence becomes important.

Debt Advisory International are very generous to their lobbyists in Washington. They have been paying $240,000 a year to the lobby firm Greenberg Traurig - although recently they jumped ship to another firm after Greenberg Traurig's top lobbyist was put in jail.

Paul Singer has more direct political connections. He was the biggest donor to George Bush and the Republican cause in New York City - giving $1.7m since Bush started his first presidential campaign.

Rudi Guiliani is the favourite to be the next Republican presidential candidate and a leaked memo from his campaign shows that Paul Singer has pledged to raise $15m for Guiliani's campaign.

<snip>

much more info at link



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PDJane Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:42 PM
Response to Original message
8. The death rate is, I'm convinced, planned.
There are too many people on the planet for all of us to live the lifestyle that the US aspires too. The fastest way to fix that is either an engineered epidemic or mass starvation.

Of course, global warming will do it first, if we don't do something about that fast.

The powers that be are greedy beyond belief, and unfettered privatization is NOT the way to go.
We need a massive democratic uprising. We need to declare the right of people to water, education and medical care; and then work to get there. The folks who talk about the "free market" and "capitalism" don't actually have to work at the bottom. If they did, they'd change their minds in a hurry.
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Cleita Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 12:49 PM
Response to Original message
9. Years ago when I was a child living in a copper mining
area of Chile that was exploited by American companies at the expense of Chileans, I became convinced from listening to Chileans, that their copper should be nationalized for the sake of their children. The mines were notorious for polluting the air and the ground and the locals felt that they could be regulated under government control as well as bring in needed revenue into the country from exports.

This idea never went away after I was living happily ever after here in America. I have seen the damage that private corporations do to natural resources especially the logging and mining industries in this country. I have become convinced that natural resources should be nationalized and the proceeds from the extraction of those resources be used for the people and to lessen their tax burden.

It's unconscionable that water would be sold to anyone. Even the ancient Romans, who held the same business beliefs our neo-cons today hold, believed in delivering with their aqueduct engineering, clean water for drinking, cooking, washing and bathing to all its citizens regardless of their economic status. Their reason was very practical. They knew brackish water bred diseases and that could lead to plague and plague is equal opportunity. It spreads to everyone regardless of how privileged they are.

When it comes to banking, my first job was in a bank and back then banks could only operate in one state and Savings & Loans could not perform all services that full service banks did. It kept these corporations small and under scrutiny by the government and for the most part, it kept them honest. Overseas banks also could not set up shop on our shores. I thinks it's time for a body of first world nations to start breaking up these behemouths as well as other international corporations not only for the sake and well-being of their countries but to help third world nations become first world nations.

So to recap:

All a nation's natural resources, including water, belong to the people. They should be under government control to be extracted and used for the benefit of the people and under environmental regulations. They should only be used for commerce for the benefit of all the people of that nation.

Banks and other corporations should by law be broken down into smaller and more manageable entities. Never should they get bigger than the government they are incorporated in. Never should they be allowed to be international and never should international corporations be allowed to operate on our shores without a hefty price to pay for the privilege of doing business here.




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Vincardog Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 01:38 PM
Response to Reply #9
10. What you said
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 02:19 PM
Response to Original message
11. Harming the poor on a large scale--and ripping them off with personal corruption--
go hand in hand. Cheney kills a hundred thousand people without a thought, meanwhile padding the pockets of his own company with billions of taxpayer dollars--the future solvency of the pension system for our elders, the money for universal health care, and good schools. He steals big, and all the Repuli-cons imitate him, from Wolfowitz to Cunningham to Abramoff to Ney and Delay, the entire party gone egregiously corrupt, padding personal accounts, and throwing fat, do-nothing, government contracts to their cronies. It was the same in South America. The corrupt rich incurred the World Bank loans, ripped off the money, and left the poor to pay the debt, in the reduction or elimination of even the most fundamental life services, like water, and certainly in the ability of the country to improve its economy and social conditions. Enter the global corporate predators--to enslave the work force in sweatshops, and rip off the country's natural resources.

This is why South American countries are rebelling against the World Bank, and have formed their own bank, the Bank of the South, to help each other get out from under onerous World Bank/IMF debt. It started with Venezuela using some of its oil profits to bail out Argentina (which was a basketcase, due to World Bank/IMF policy) on easy terms that promoted social justice. Argentina is now well on the way to recovery. Venezuela thus created a healthy trading partner for itself, Brazil and other countries. Bolivia and Ecuador will be next. And Paraguay just joined. The World Bank is how global corporate predators shoved "free trade" deals on these countries (get the country into deep debt, then rape the work force, rip off the natural resources, and dump first world products on their markets, to kill local enterprise). The answer of South America's new leftist (majorityist) governments: Mercosur, the South American trade group, and probable precursor to a South American "Common Market" and common currency (to get off the US dollar).

The World Bank is finished in South America. So is "free trade." Country after country are rejecting them. The latest "free trade" deal is by far the most corrupt--with Colombia, where a huge rightwing paramilitary scandal has erupted, with the top echelon of the Uribe government involved in drug trafficking, mass murder of union organizers, leftists and peasants, and plots against the Andean democracies (Venezuela, Bolivia, Ecuador), larded with $4 billion in military aid from the Bush Junta. But Colombia is a dinosaur. It is very isolated. And that became very obvious when Bush visited Latin America recently, and got publicly lectured by Latin American leaders, from Brazil to Mexico, on the SOVEREIGNTY of Latin American countries. (The corporatist president of Mexico even mentioned Venezuela as an example. I was amazed. I think they all know that the main plotting in Colombia was against Chavez and Venezuela.)

You wonder why our war profiteering corporate news monopolies demonize Hugo Chavez as a "dictator" (a laughable charge--no more valid than calling FDR a "dictator," as the Reichwing did then)? Because notions of Latin American self-determination and regional cooperation are coming out of Venezuela, one of the healthiest democracies in South America, where THE PEOPLE defeated a fascist military coup in 2002, and demanded the return of Constitutional government and their elected leaders--the President and the National Assembly. So Hugo Chavez owes his life--and his power as president--TO THE PEOPLE, who elected him and then defended him. It is THESE PEOPLE--not Chavez alone--and like-minded people in other South American countries--who are effecting a sea change in Latin American politics and economics. The Bush State Department, and its echo chamber, the corporate press, try to personalize this vast and revolutionary political movement, by calling up old stereotypes--cigar-chomping, gun-toting communist insurgents; South American "strong men," etc. But this is a DEMOCRATIC revolution, and profoundly visionary--often led by the indigenous (as with Evo Morales in Bolivia*). It is the biggest threat to the global corporate predators that has ever come along. And they focus on Chavez so that WE won't see what's really going on, and get any ideas from it.


----------------

*(In Bolivia, Bechtel Corp. came in (invited by corrupt fascists) and privatized the water in Cochabamba, then jacked up the prices to the poorest of the poor--even charging poor peasants for collecting rainwater! The Bolivians rose up--the uprising that led to Evo Morales' election as president--and threw Bechtel out of their country. Very scary stuff to global corporate predators. The latest from Bolivia is that the big landowners and fascists in the oil/gas rich provinces--in cahoots with the oil companies, of course, and probably with the rightwing paramilitaries of Colombia (and the Bush Junta)--are plotting to split their provinces off from the federal government, headed by Morales, so that the poor gain no benefit from Bolivia's rich resources. They are threatening insurrection. Morales has his hands full. But I think that the OAS, which now has many new leftist (majorityist) governments as members, and the consensus of leaders surrounding Bolivia (Brazil, Argentina, Chile) may work to keep Bolivia whole. Venezuela and Ecuador will also be influential in what happens in Bolivia. Peru has a very corrupt "free trade" leftist in charge--but there is a big (real) leftist movement pressuring that government, as there is in Paraguay (where the Bush Cartel is rumored to have purchased a large landholding, possibly as a launching pad for paramilitary wars against the democracies, to get control of their oil, gas and other resources)).
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mia Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-06-07 02:27 PM
Response to Original message
12. "genocide for the World Bank" .... Vandana Shiva (Water Wars)
From interview....
http://www.inmotionmagazine.com/global/vshiva3.html

I remember two regions in particular where I did surveys for governments when the water started to get scarce and they were wondering, “Why is there no water?” I said, “Show me your plans. Show me your policies.” I started reading and I found that at a certain point the World Bank had said, “Stop growing millet. Start growing sugar cane. Stop growing subsistence crops. Start growing cash crops.” And that shift to very, very water-demanding crops, all World Bank requirements, lead to groundwater being mined and creating water famine.


My dream is one day to make a bill for genocide for the World Bank because more than any other agency it has destroyed the hydrological systems of this planet in its arrogance and blindness.

In Motion Magazine: Why would they suggest these changes?

Vandana Shiva: Because the World Bank only looks at returns on investment. It drags countries into borrowing. It forces loans on them and then wants to maximize return on loans. Well, loans don’t come out of stable eco-systems. Loans come out of cash crops. Loan payments, interest payments. They are squeezing out loan re-payments by killing water systems and killing people who depend on them.



I heard Vandana Shiva Speak in Miami at The World Women/s Congress for a Healthy Planet in 1991.
I still have the tape that I bought from the conference.


World Bank, WTO, and corporate control over water
by Vandana Shiva

http://www.thirdworldtraveler.com/Water/Corp_Control_Water_VShiva.html
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