Committee for the Abolition of Third World Debt
CADTM

World Bank critics denounce Civil Society Forum

22 April 2005 by The 50 Years Is Enough Network


WASHINGTON, D.C. - Activist organizations that monitor the activities of the international financial institutions today released a statement signed by over 60 civil society groups from 25 countries denouncing a "civil society forum" organized by the World Bank and scheduled for April 21-22 in Washington.

"The large number and broad range of organizations endorsing this statement indicate the serious concern in civil society about the World Bank’s efforts to rewrite history to persuade people that the Bank is committed to working constructively and meaningfully with citizens’ groups," said Doug Hellinger, Executive Director of the The Development GAP, which coordinated a global civil society network that engaged current Bank president James Wolfensohn in a ten-country investigation of the impact of the Bank’s economic adjustment policies.

"This publicly funded institution has undertaken three major participatory exercises with civil society over the past decade and has walked away from all three in the end, declining to act on any of their major findings and recommendations. Furthermore, its mandated Poverty Reduction Strategy Papers, ostensibly designed to include citizens in national development planning, have likewise failed to provide an avenue for civil society input on the all-important macroeconomic programs that the Bank and IMF establish as the parameters for these national plans."

The statement asserts that "the prospect of helping to burnish the image of the World Bank at this moment assumes even greater importance in light of the U.S. government’s success in installing [Paul] Wolfowitz to serve as the Bank’s next president... We believe the Forum risks being used as a sign that civil society is open to collaborating with the Bank as it enters the Wolfowitz era."

"The approval of Wolfowitz as World Bank president could be the final nail in the coffin of the Bank’s legitimacy," said Virginia Setshedi of South Africa’s Anti-Privatisation Forum. "At a time like this we need to treat very cautiously any event sponsored by the Bank that claims to include critical voices."

The signers’ concerns about the image of World Bank openness that will be presented to the public extends to the portrayal of Wolfensohn, who is due to step down May 31 after ten years. "Wolfensohn will attend part of the meeting and is likely to take an unearned bow for very limited and dubious achievements," said Njoki Njoroge Njehu, director of the 50 Years Is Enough Network.. "He has been shown repeatedly that the Bank’s economic policies are destructive and unsustainable, yet he has made few changes in core policies over a long period of time. In some ways, the Bank is actually going backwards, and its use of rhetoric and phony poverty plans to cover its tracks needs to be highlighted, not celebrated, particularly as Wolfowitz takes over the Bank."

The statement, included with this release, is being widely circulated among civil society groups working on the Bank. In signing on, Lidy Nacpil of Jubilee South and the Freedom from Debt Coalition in the Philippines stated, "We must make clear that until the World Bank takes civil society and its concerns related to economic and environmental justice seriously, we will not provide platforms where it can claim otherwise. And we are very far from that point."

Statement:
WORLD BANK COURTS NGOs AS WOLFOWITZ TAKES HELM

On 21-22 April, the World Bank plans to host a Global Policy Forum in Washington, D.C., focusing on the "poverty reduction strategy" (PRS) process and World Bank-civil society relations. James Wolfensohn, President of the World Bank, is scheduled to attend for a few hours. It will likely be one of his last interactions with civil society before his ten-year presidency ends five weeks later and he is succeeded by U.S. Deputy Secretary of Defense Paul Wolfowitz.

The civil society organizations endorsing this statement believe that this Forum is designed as a public relations exercise by, and for, the World Bank. Conspicuous omissions from the list of those invited, as well as the content of the draft agenda, strongly suggest that the Bank intends to obscure its troubling record of betraying formal participatory processes developed with civil society and to avoid the most fundamental questions about the PRS now required of all low-income Bank borrowers.

The prospect of helping to burnish the image of the World Bank at this moment assumes even greater importance in light of the U.S. government’s success in installing Wolfowitz to serve as the Bank’s next president. Wolfowitz’s well-known role in planning and promoting the invasion and occupation of Iraq has raised reasonable fears that the World Bank will now be made more explicitly a tool of U.S. foreign and economic policy. We believe the Forum risks being used as a sign that civil society is open to collaborating with the Bank as the latter enters the Wolfowitz era. Given the outrage that has been expressed by groups around the world in response to this controversial appointment, that outcome would be very unfortunate.
Those of us who were invited to attend the Forum are therefore declining the invitation, and all of us wish to caution our colleagues around the world that this event will likely be dedicated to making the World Bank look good rather than addressing the serious problems in the Bank’s interactions with civil society. Participation in the forum also risks lending legitimacy to the PRS process, when its flaws are so serious that it may not be reformable.

The World Bank controls this Forum, from deciding who is invited to what is on the agenda and how the meeting is conducted. The Bank is covering all the costs, which are undoubtedly substantial.

The absence from the invitation list of virtually all of the people involved in the World Bank’s previous significant engagements with international civil society should concern those considering attending. Several thousand organizations and individuals from the South and North were involved in these exercises from the civil society side, many of them prominent voices in international development. This suggests that the Bank is using its control to prevent the Bank’s recent history from being part of the discussion.

During the last ten years, the World Bank has participated in three lengthy international engagements with civil society on crucial development issues: structural adjustment (Structural Adjustment Participatory Review Initiative), large dams (World Commission on Dams), and oil, mining, and gas exploitation (Extractive Industries Review). In each of these initiatives, the Bank rejected the exercise’s ultimate findings when they turned critical of its operations and demonstrated a degree of bad faith so substantial as to cast suspicion on the Bank’s motivations in any interaction with civil society.

We understand that activists opposing specific World Bank projects or working to influence national economic policy in their respective countries sometimes find it necessary or helpful to meet with the Bank. We would distinguish this conference from such meetings on the grounds that it offers no new information and little realistic chance of influencing policy. The constricted agenda will also limit the possibilities of productive conversation — the first full day, for instance, is devoted to the controversial PRS process, but provides for no discussion of the program’s value or function, or of its single most controversial element, the exclusion of civil society from discussions on macroeconomic policy. In addition, the World Bank has yet to perform a serious review of the poverty impacts of the PRS, which would seem an elementary first step in evaluating its efficacy. Without any evidence that the PRS reduces poverty, the first day’s agenda on improving the PRS bypasses the essential question of whether the PRS is even viable.

What the meeting does offer is the chance for the World Bank to escape accountability for its previous failings while looking out on the gathered crowd and reassuring itself, the media, private funders, parliamentarians, and government officials that it is open and communicating with a broad range of civil society. It offers the Bank the opportunity to reassure itself that cosmetic engagements will suffice to satisfy civil society, and that no further, more substantive engagement is necessary. It also offers one more chance for Wolfensohn to be honored for changing the orientation of the Bank toward civil society, regardless of the fact that, under his presidency, the Bank refused to implement the results of extensive civil society engagements and to change highly detrimental aspects of its operations opposed by citizens around the world.

More ominously, the forum is designed, despite the Bank’s record, to enhance Bank-civil society relations at a time when the Bush Administration appears intent on intensifying the use of the institution to advance U.S. hegemonic interests through a new management team. Indeed, we can anticipate the promotion by the Wolfowitz Bank of structural adjustment and other free-market macroeconomic policies under the guise of "democratic reforms", as has been the practice of the Bush Administration.

Hence, we urge all civil society groups to approach with caution any suggestion that a new formal mechanism for ongoing consultations between civil society and the World Bank be created. One such formation, the Joint Facilitation Committee (JFC), is now ending its difficult and largely unproductive two-year lifespan, with many of its members apparently eager to be done with it. The JFC was set up two years ago by the Bank and selected non-governmental organizations for the expressed purpose of enhancing World Bank-civil society relations, while thousands of citizens’ groups were still trying to hold the Bank accountable for not complying with the results of previous engagements.

The JFC was originally slated to organize this Forum, but ultimately decided against it. Its other tangible project, a report on the Bank’s relations with civil society, which is due to be issued at the time of the Forum, has seen its credibility drawn into question because the Bank has provided its funding and because many groups involved in consultative processes, citing the Bank’s ultimate refusal to respect final outcomes, declined to participate.

Any new vehicle resembling the JFC — designed to promote cooperation between the World Bank and civil society without introducing accountability for the Bank’s actions — is likely to prove equally frustrating and controversial, particularly in light of the U.S. choice to lead the institution over the next five years. We urge our colleagues to turn away from distractions like the JFC, the Global Policy Forum and never-ending and often counter-productive "dialogue" with the Bank and to intensify the dialogue, strategizing and mobilizing within our own community to effect fundamental change in the international financial institutions and their pernicious practices.

Endorsed by:

Focus on the Global South

Shalmali Guttal, India/Thailand

Jubilee South Africa

Dennis Brutus South Africa

The Development GAP

Steve Hellinger USA

Lokayan and Intercultural Resource Centre

Smitu Kothari India

Centre for Civil Society Univ. of KwaZulu-Natal

Patrick Bond

South Africa

50 Years Is Enough Ntwk

Soren Ambrose USA

Freedom from Debt Coalition & Jubilee South

Lidy Nacpil

Philippines

Bretton Woods Project

Jeff Powell

U.K.

Jorge Carpio

FOCO

Argentina

Community Development Library

Mohiuddin Ahmad

Bangladesh

BanglaPraxis

Zakir Kibria

Bangladesh

LOKOJ Institute

Arup Rahee

Bangladesh

Ashraf-Ul-Alam Tutu

Coastal Development Partnership (CDP)

Bangladesh

Proyecto Gato

Jan Cappelle

Belgium

European Coalition for Just and Effective Drug Policies

Joep Oomen

Belgium

Bart Staes

Member of European Parliament

Belgium

FIAN

Jonas Vanreusel

Belgium

Cândido Grzybowski

Brazilian Institute of Social and Economic Analyses (IBASE)
Brazil

Rede Brasil

Brazil

Council of Canadians

Maude Barlow

Canada

Halifax Initiative Coalition

Michael Bassett

Canada

Blue Planet Project

Anil Naidoo

Canada

The Development Institute

Atherton Martin

Dominica

Institute for Economic Relocalisation

France

Friends of the Earth- Germany (BUND)

Maja Goepel

Germany

WEED Daniela Setton

Germany

SAPRIN Hungary

Karoly Lorant

Hungary

Enviro. Support Group

India

The Other Media

Madhumita Dutta

India

Delhi Forum

Souparna Lahiri

India

River Basin Friends

Ravindranath

India

Public Interest Rsch Centre

Kavaljit Singh

India

Rural Volunteers Centre

Arup Kumar Saikia

India

Sanjai Bhatt

India

Yayasan Duta Awam

Muhammad Riza

Indonesia

CRBM

Antonio Tricarico

Italy

ATTAC Japan

Yoko Akimoto

Japan

Equipo Pueblo

Domitille Delaplace

Mexico

Centro de Encuentros y Diálogos Interculturales

Gustavo Esteva

Mexico

Water Energy Users’ Federation-Nepal

Neeru Shrestha

Nepal

South Asian Solidarity for Rivers & Peoples (SARP)

Gopal Siwakoti ’Chintan’

Nepal

Friends of the Earth Intl.

Longgena Ginting

Netherlands

A SEED Europe- The Disinvestment Campaign

Filka Sekulova

Netherlands

Inst for Global Networking, Information and Studies

John Y. Jones

Norway

Chashma Lok Sath

Mushtaq Gadi

Pakistan

NGO Forum on ADB

Charity P. Cantillo-Dela Torre and Lala Cantillo

Philippines

Freedom from Debt

Ana Maria R. Nemenzo

Philippines

Fnd for Media Alternatives

Alan Alegre

Philippines

Josua Mata

Alliance of Progressive Labor (APL)

Philippines

Forum on African Alternatives

Demba Moussa Dembele

Senegal

Anti-Privatisation Forum

Virginia Setshedi

South Africa

Social Movements Indaba

South Africa

Muslim Youth Movement of South Africa

Na’eem Jeenah

South Africa

Centre for Civil Society

Raj Patel

South Africa

African Women’s Economic Policy Network (AWEPON)

Uganda

Christian Aid

Olivia McDonald

U.K.

World Development Mvmt.

Martin Powell

U.K.

Global Exchange / CodePink

Medea Benjamin

USA

Africa Action

Salih Booker

USA

Center of Concern

Aldo Caliari

USA

TransAfrica Forum

Bill Fletcher, Jr.

USA

Public Citizen

Sara Grusky and Wenonah Hauter

USA

Sunita Dubey

USA

International Rivers Network

Patrick McCully

USA

East Timor Action Network

John M. Miller

USA

The Oakland Institute

Anuradha Mittal

USA

Sisters of the Holy Cross

Ann Oestreich IHM

USA

Center for Economic Justice

Michael Casaus

USA

Peter Rachleff

USA

Medical Mission Sisters- Alliance For Justice

Susan Thompson

USA

Gender Action

Elaine Zuckerman

USA

Public Services International

Cam Duncan

USA

United Church of Christ Network for Environmental and Economic Responsibility

Rev. Douglas B. Hunt

USA


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