Even the World Bank Has to Worry About the Competition


The International Consortium of Investigative Journalists has just published a deep look into the World Bank’s track record of ensuring that the projects it sponsors don’t end up harming local communities.

Since 2004, more than 3.4 million people have been economically or physically displaced by Bank projects, according to the report’s analysis of the lender’s data. And while the Bank has policies requiring it to reestablish and resettle such communities, the ICIJ’s investigation found that they were falling short, operating under a troubling lack of safeguards, through bank officials too willing to ignore abuses committed by local partners, and with an institutional culture that values closing big deals over following up on human rights.

After being presented with the ICIJ’s findings, the bank quickly promised reforms. But one part of the investigation contains this interesting passage, which suggests an unexpected reason the Bank may not be able to clean up its act: competition has gotten too stiff.

As it enters its eighth decade, the World Bank faces an identity crisis.

It is no longer the only lender willing to venture into struggling nations and finance huge projects. It is being challenged by new competition from other development banks that don’t have the same social standards—and are rapidly drawing support from the World Bank’s traditional backers.

China has launched a new development bank and persuaded Britain, Germany and other American allies to join, despite open U.S. opposition.

These geopolitical shifts have fueled doubts about whether the World Bank still has the clout—or the desire—to impose strong protections for people living in the way of development.

United Nations human rights officials have written World Bank President Kim to say they’re concerned that the growing ability of borrowers to access other financing has spurred the bank to join a “race to the bottom” and push its standards for protecting people even lower.

Today’s package of stories, published with the Huffington Post, is the first installment of a series reported in 14 countries by over 50 journalists. More than 20 news organizations were involved in the effort.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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