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WB-Funded Projects Displaced 3.4m People in a Decade
World Economy

WB-Funded Projects Displaced 3.4m People in a Decade

An expose published Thursday by the International Consortium of Investigative Journalists (ICIJ) and its media partners has revealed that in the course of a single decade, 3.4 million people were evicted from their homes, torn away from their lands or otherwise displaced by projects funded by the World Bank.
Over 50 journalists from 21 countries worked for nearly 12 months to systematically analyze the bank’s promise to protect vulnerable communities from the negative impacts of its own projects.
Reporters around the world – from Ghana to Guatemala, Kenya to Kosovo and South Sudan to Serbia – read through thousands of pages of World Bank records, interviewed scores of people including former Bank employees and carefully documented over 10 years of lapses in the financial institution’s practices, which have rendered poor farmers, urban slum-dwellers, indigenous communities and destitute fisherfolk landless, homeless or jobless, IPS reported.
In several cases, reporters found that whole communities who happened to live in the pathway of a World Bank-funded project were forcibly removed through means that involved the use of violence, or intimidation.
Such massive displacement directly violates the Bank’s decades-old Twin Goals of “[ending] extreme poverty by reducing the share of people living on less than $1.25 a day to less than three percent of the global population by 2030 [and] promote shared prosperity by improving the living standards of the bottom 40 percent of the population in every country”.

  Violations
Far from finding sustainable ways of closing the vast wealth gaps that exist between the world’s richest and poorest people, between 2009 and 2013, “World Bank Group lenders pumped $50 billion into projects graded the highest risk for “irreversible or unprecedented” social or environmental impacts — more than twice as much as the previous five-year span.”
The investigation further revealed, “The World Bank and its private-sector lending arm, the International Finance Corp. (IFC), have financed governments and companies accused of human rights violations such as rape, murder and torture. In some cases the lenders have continued to bankroll these borrowers after evidence of abuses emerged.”
Between 2004 and 2013, the World Bank, together with the IFC, pledged $455 billion for the purpose of rolling out 7,200 projects in the developing world. In that same time period, complaints poured in from communities around the world that both the lenders and borrowers were flouting their own safeguards policies.

  Financial Intermediaries
In a report released earlier this month, Oxfam claimed that the “International Finance Corporation has little accountability for billions of dollars’ worth of investments into banks, hedge funds and other financial intermediaries, resulting in projects that are causing human rights abuses around the world.”
In the four years leading up to 2013, Oxfam found that the IFC invested $36 billion in financial intermediaries, 50 percent more than the sum spent on health and three times more than the Bank spent on education during that same period.
The new model, of pumping money into an investment portfolio in financial intermediaries, now makes up 62 percent of the IFC’s total investment portfolio, but the “painful truth is that the IFC does not know where much of its money under this new model is ending up or even whether it’s helping or harming,” Nicolas Mombrial, head of Oxfam International’s Washington DC office, said in a statement on Apr. 2.

  Lose Track
In a response to the ICIJ investigation released Thursday, Oxfam’s land advocacy lead Kate Geary stated, “ICIJ’s findings echo what Oxfam has long been saying: that the World Bank Group – and its private sector arm the IFC in particular – is sometimes failing those people who it aims to benefit: the poorest and most marginalized […].
“It’s not just Oxfam and the ICIJ who say this – these disturbing findings are backed up by the Bank’s own internal audits which found, shockingly, that the Bank simply lost track of people who had to be “resettled” by its projects. President Kim himself has acknowledged this as a failure – and he’s right. The situation is simply untenable and unconscionable. Enough is enough.”

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