Mr Goodall Gondwe, do we accept any World Bank loan?

So now everybody loves the World Bank. The comment in the Nation does not look at any of the World Bank policies, it just loves the money. But the Breton Woods Institutions are not always the best for Malawians. If you read this report page 16-18 you see that they caused a lot of hardship for us with their loan conditionalities.

The same you see in this report on page 22-23. Quotation:

“Because of these conditionalities, thousands of Malawians starved to death,
the government was denied its policy space, our National Assembly positions
were disregarded, the World Bank disregarded advice and its own findings of the
Poverty and Social Impact Assessment (PSIA) and when our government recently
reversed the programmes, the World Bank opposed.”
Collins Magalasi, Head of Policy, Action Aid International Malawi

These institutions are accountable to their financiers, the biggest by far being the US. So they promote policies that are good for the US and other developed countries, not necessarily for us. Developed countries want cheap raw materials and markets for their finished products, like they have used us since the first days of colonisation. Now they are neo colonialist, not having to shoulder the burden of subjecting us with the military, but doing it cheaper, with Breton Woods institution loans that we have to pay back. We should be critical of their policies instead of accepting everything because there is a loan to be had.

Of course for some people in government it is a good idea to have money floating around, so they can operate (compare Cashgate) and the consequences of the conditionalities are for the population.


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