 

World Bank Report On Poverty Censored
posted
21st September 2000
by
Charlotte Denny for Guardian Weekly
A World Bank report described as the most detailed investigation
yet into global poverty has come under fire from development charities,
which accused the Bank of censoring the radical conclusions of an
earlier version. Aid agencies said that criticisms of orthodox economic
policies in a draft printed on the Web in January had been removed
from the final version of the Bank's world development report, published
last week. "It is a comprehensive overhaul in which much of the
draft's critique of conventional Bank thinking has been replaced
by an apologia for business as usual," said Duncan Green, of Cafod,
the Catholic aid agency. The report's original author, Professor
Ravi Kanbur, resigned in June after apparent disagreements with
more orthodox economists at the Bank over his insistence that redistributive
taxation policies and social spending were vital in tackling global
poverty. Prof Kanbur's draft criticised free- market reforms advocated
by the Bank and the International Monetary Fund, which it said had
harmed poor people in some countries.
The final version omits most of the sections describing the downside
of market reforms, and concentrates on their benefits for economic
growth. The draft blamed the rapid opening of financial markets
for the crisis that swept Asia three years ago, and advocated that
countries use controls to stem speculative flows of capital. In
the final version this section has been cut to a line recommending
a "cautious approach" to the process of liberalising financial markets
and using capital controls as a transition measure. The Bank denied
the charges of censorship, and said the key messages of Prof Kanbur's
draft had survived. The final report argues that economic growth
is crucial but often not sufficient to improve living standards
in poor countries. It advocates a three-prong approach of expanding
economic opportunities for the poor, while empowering them, and
providing security against social and economic shocks..nd
to poverty. These foot-soldiers are mobilisi
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