A South Shift in World Economy

World Bank rewrites 'History'

World Bank has altered the world financial circuit for once and ever. BRIC ( Brazil, Russia, India and China ) nations and Korea has ascended the ladder on voting rights. This is nothing but the reflection of the post recessionary financial scenario. The announcement came after the meeting of World Bank Chief Robert E. Zoellick with the global leaders. India will have 7th largest stake in voting shares. But the Asian tiger is not satisfied yet. This is due to the increasing financial muscles of China. They have moved up to 3rd position in the hierarchy. As a tail end to this new history,it is Japan which has lost around its one tenth of the voting rights. 

However this cannot be seen as a gesture of free liberalism in the world order, but just because of the fact that India, China and Brazil have largely contributed to tide over the financial crisis that hit the world economy in the end of 2008. The World Bank agreed to raise its lending resources by more than $86 billion at a time when the world is still recovering from an economic downturn.  Zoellick said that more than half of the increase will come from developing countries.

Despite this change, World Bank has to traverse extra miles to gain a human face. Many loans given by World Bank are tied to the restructuring of the domestic economy in Developing countries. This is indeed a national sovereign question. And many times in the past World Bank and IMF acted as the stooges of US imperial interests. This was much visible during the Cold War Era and in the time of every recessionary phase. Now we can expect a new balance of power and paradigm shift in the world economy getting apace. 

Still Africa and most of the Latin American countries are under the shade of poverty. The World Bank Structural Adjustment Programmes ( SAP ) have wretched many havocs in African Economy. This included forcing the countries to cut down the spendings on Public welfare measures , privatising the public sector companies and pressurizing them to increase the interest rates. According to the report published byAsad Ismi ( Impoverishing a Continent: The World Bank and the IMF in Africa ) during 1960 - 1980, the GDP per capita grew by 36 % and it actually fell to 15 % during 1980 - 2000. Thus help becomes a havoc. 

This course of affairs needs urgent correction. And the new set of priorities and conditions of World Bank need to reflect the ground realities of Africa. Now there are widespread allegations that World Bank helps MNC's in many transactions and loans. This back stage dealing must be curtailed and more transparency need to brought into the affairs. Only by stretching the economic bandwagons further to spread to the continents, we can dream of a new Economic Era. And that rests on the safe hands when Power blends with responsibility. 

Gokul B. Alex

'clarity is rhythm'