The World Bank, the most important so-called development assistance agency, annually dispenses billions of dollars to Third World governments, ostensibly to "develop" their economics through a variety of loan projects. But even a superficial analysis reveals that the Bank is the perfect mechanism to help (i.e., subsidize) the large transnational corporations from the industrial countries to expand their industrial, commercial, and financial activities in the Third World, at the expense of the latter and particularly at the expense of the rural and urban proletariat. This article discusses Cheryl Payer's recent book, The World Bank: A Critical Analysis, in which she analyzes the Bank's role in the Third World and sets forth the major reasons why poverty, hunger, and malnutrition, as well as unemployment, and all the adverse social phenomena associated with them, are on the increase.
PIP: In this review of Cheryl Payer's recent book, The World Bank: A Critical Analysis, the World Bank's role in the third world and the reasons why poverty, hunger, malnutrition, and unemployment are on the rise are discussed. The World Bank annually gives billions of dollars to third world governments, supposedly to develop their economies through a variety of loan projects. In reality, the loans subsidized the transnational corporations from the industrial countries and expand their industrial, commercial and financial activities in the third world. Capitalism has brought technological innovations, lowered infant mortality rates, and lengthened life expectancy in the third world. But it has also resulted in rapid population growth and an increase in other problems. Food, water, medical services, sanitary facilities and housing are becoming scarce to the poor. The World Bank has used its large resources, distributed annually on an increasing scale to its member countries, to expand capitalism in the third world and to fortify the business activities of the transnational corporations, including the large transnational banks. Many of the underdeveloped economies are having a difficult time due to an immense debt burden from all the lending activities of the World Bank. It is believed that the World Bank and capitalism will not be able to resolve the economic and social problems of the third world, and that socialism holds more hope for the masses worldwide. Under socialism, the World Bank would cease to exist. The World Bank and other UN agencies speak much, but really care nothing about problems facing the third world. It is believed that the growth of these problems are the prelude to the coming revolution that so frightens the World Bank and its supporters.