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Submitted by Anonymous on
The world bank's approach to development needs more than tinkering- it needs a rehaul. If the true mission is to fight poverty, world bank investors need to look at the real life impact of projects they support. The world bank sent investors to the village of Kulon Progo in Central Java, Indonesia to potentially invest in an iron mining project that has, even in its planning phases, created high levels of animosity between farmers and working class people, and those government employees and the upper class. Family members and neighbors are becoming enemies with the introduction of a project that provides economic stimulation in a place where it is not necessary, and with a project where the overwhelming majority opposes it. Microfinance projects in Bali, Indonesia have created negative social impacts. For example, some lenders will only provide loans to farmers who commit to raising pigs that will be fed imported pig feed which leads to a larger pig, which grows at a faster rate. This is changing traditional methods of farming and is creating dependency on imported feed, whereas traditional methods of raising pigs do not require the purchase of pig feed at all. It's time to assess how the money is being spent and how the loans are being disbursed- MFI ratings and incidence of default do not paint the full picture. The world bank has got some homework to do if their true mission to to fight poverty.