A historical general assessment of the role of the World Bank globally with special reference to Brazil and Tanzania
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Date
1970
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University of Dar es Salaam
Abstract
Most member countries of the Bank are dependent, countries for part of their so-called development projects. Most of these countries realise that they are underdeveloped exploited oppressed and dependent because of the historical and present relationship between them and the capitalist/imperialist countries. They generally agree that this position must be changed. The method by which the position may be changed differ with different oppressed countries. However there is a general consensus that for these countries to be independent economically fast enough, resort must be made to development loans especially from the World Bank. This is made on the assumption that the World Bank, being [rather appearing to be an independent multilateral financial institution will be impartial and unexploitative. The World Bank publications [Annual Reports, Sector Papers, Reports of Annual meetings of the Board of Governors], indicate that the main function of the World Bank in this area is to help and guide the oppressed countries to achieve their economic goals which are for the establishment of developed national economies.The present thesis is based on the premise that it is not possible for an oppressed member country and in that behalf particularly Tanzania, to achieve a developed national economy by basically or substantially using loans from the World Bank.The world Bank, which was established out of the needs of capitalism in 1945 so as to refurbish capitalism and to act as an instrument by which the capitalist/imperialist countries, particularly U.S.A. could export their capital to the oppressed countries, serves as an instrument of exploitation compelled by economic laws specific to this epoch of imperialism. It cannot therefore serve as a basic instrument of economic development for the oppressed countries in any meaningful way. In part one we discuss the historical development of the World Bank, its lending and voting procedures, its sources of capital and its relationship with other international organisations. The global operations of the Bank are examined and one of the oppressed countries, Brazil, is taken as one of the two case studies of the role of the World Bank in the oppressed countries.Chapter one, entitled "The Historical Origins and development of the World Bank," we deal with the historical economic events which necessitated the establishment of the world Bank. It is shown that the Bank was established at a stage when capitalism was in a crisis after the two Imperialist World Wars. When the World Bank was established, already the relationship between the Capitalist/imperialist and the colonially oppressed countries been established as an exploitative one. The Bank merely came in to revive capitalism and act as an instrument of revived exploitation for the capitalist/imperialist countries on the basis of US. inspired policy of "multilateral imperialism" operating under neo-colonialism. The membership of the Bank is comprised of 130 countries of which only about 7 represent the capitalist/imperialist countries. These few countries control the capital, investments, management, voting power decisions and tha activities of the Bank. The preminence of the U.S.A.'s control of the Bank, it being the Bank's largest subscriber is shown. Then we discuss the affiliates of the World Bank and the relationship that exists between the World Bank and these affiliates. In Chapter two, we deal with the lending policy and procedures and activities of the Bank globally. It is shown that the Bank's global lending operations since its inception up to 1975 has amounted to $27,136.7 millions, of which $21,716.7 was lent to oppressed member countries alone!. According to the lending rules ( taking Brazil and Tanzania as examples), the amount of capital which is paid back is more than twice that which was borrowed. Instead of developing, the oppressed countries continue to be poor and dependent. The surplus value which is generated in these countries is extracted through raw materials, cheap labour and extractive industries import substitution which are the projects which the Bank finances. In chapter three we have a case study of Brazilian frustrations and hopes of Development Loans and Credits. Brazil is taken as an example of an oppressed country endowed with plenty of natural resources and which has tried to develop a national economy by using loans from the Bank and failed. In part two, we concentrate on the socio-economic history of Tanzania. We examine the colonial period and the post-independence period up to the Arusha Declaration and after it which is a period of heavy world Bank involvement in Tanzania. It is shown that Tanzania is no exception to the economic laws of imperialism. In chapter four section one, we discuss the economic structure of Tanzania before independence. It is shown how Tanzania having been incorporated into the capitalist system, became a supplier of raw materials for industries based first in Germany and then in Britain and an area of lucrative investment of finance capital and a market (dumping ground) of manufactured goods from the metropoles. Chapter Four : 2, concentrates on Tanzania after independence up to 1967, It shows that when Tanzania got independence and (even 10 years after the Arusha Declaration) the economic relationship with imperialism did not substantially change. Chapter five deals with the role of the World Bank in Tanzania, especially after 1967 and the implications of such role. It shows that contrary to the policy of self-reliance enunciated in the Arusha Declaration, 11 years after it, Tanzania is more dependent on external financing particularly from the World Bank loans and credits than ever before. It shows how the World Bank determines the type of projects that Tanzania trust implement and controls the major economic as well as some of the major political policies in Tanzania. In Chapter five we examine some aspects of the 1974 world Bank Appraisal Report of the economic position of Tanzania including its recommendation for future economic development. A critique of some aspects of the Appraisal Report is included.Chapter six is our conclusion. Here we stress the point made throughout the dissertation that loans and credits particularly from the World Bank are not the solution to the present poverty of the oppressed countries because the cause of poverty lies within the present international capitalist economic system.
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Keywords
International Bank for Reconstruction and Development, Economic assistance, Tanzania, Brazil
Citation
Sinare, H (1970) A historical general assessment of the role of the World Bank globally with special reference to Brazil and Tanzania, masters dissertation, University of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/detail.aspx?parentpriref=)