Bangladesh: our sovereignity is not for sell out to IFI’s

9 March 2009 by Equity and Justice


Summary

During last couple of weeks in January 2009, there was news coverage in the country’s major print media that the representatives of WB World Bank
WB
The World Bank was founded as part of the new international monetary system set up at Bretton Woods in 1944. Its capital is provided by member states’ contributions and loans on the international money markets. It financed public and private projects in Third World and East European countries.

It consists of several closely associated institutions, among which :

1. The International Bank for Reconstruction and Development (IBRD, 189 members in 2017), which provides loans in productive sectors such as farming or energy ;

2. The International Development Association (IDA, 159 members in 1997), which provides less advanced countries with long-term loans (35-40 years) at very low interest (1%) ;

3. The International Finance Corporation (IFC), which provides both loan and equity finance for business ventures in developing countries.

As Third World Debt gets worse, the World Bank (along with the IMF) tends to adopt a macro-economic perspective. For instance, it enforces adjustment policies that are intended to balance heavily indebted countries’ payments. The World Bank advises those countries that have to undergo the IMF’s therapy on such matters as how to reduce budget deficits, round up savings, enduce foreign investors to settle within their borders, or free prices and exchange rates.

and IMF IMF
International Monetary Fund
Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.

http://imf.org
(World Bank and International Monetary Fund) would visit Bangladesh sometime in February to support government in preparing MTBF (Mid Term Budgetary Framework) and also to advice government in the issue.. Meantime the chief of Asian Development Bank visited the country and assured government to provide so called necessary financial support (this will be off course as mostly as debt) for infrastructure development. In view of the past and as it is already reported in the news paper, as it seems the seasons of IFI (international financial institutions) missions visits Equity Equity The capital put into an enterprise by the shareholders. Not to be confused with ’hard capital’ or ’unsecured debt’. and Justice Working Group ( Equity BD) organized a press conference at the National Press Club and urged the government to develop pro people national budget ignoring the domination and advice of the World Bank, IMF and ADB, and off course upholding the sovereignty to take our economic decisions. Equity BD also urged the government to give emphasis of internal revenue generation, domestic production and employment creation so that government could reduce its dependency on external financial sources to in Annual Development Program.

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