By Mehdi S.
Shariati
World
Public opinions regarding the United Nations and all of its component parts vary
from absolute ignorance of its history, structure and purpose to an outright
dismissal of the entire organization as a dysfunctional international agency.
Sandwiched between the two are the opinions of those who lament the "real"
United Nations and its departure from what it could be, and then there are those
who are operating within the context of realpolitik—the realist theory of
international relations-- and see it as viable mechanism for conflict resolution
provided that the governance and the decisions are left to the most powerful
nations. The reality, however, is that since its inception the United Nations
(including all of its affiliated agencies and programs) has tried to present
itself as truly supranational, united and a legitimate international body
attempting to serve the interests of humanity at large. Yet throughout its
history when it began as the "League of Nations" it has acted as anything but a
legitimate international organization. Big powers have repeatedly used the UN as
the alleged voice of the so-called "the international community" when
formulating and implementing hegemonic global policies (including war and
invasion) just to serve the interests of their own dominant classes. In recent
years, various events around the World have shed light on the most powerful
components of the United Nations --the Security Council, and the two affiliated
agencies --International Monetary Fund (IMF) and the World Bank. United Nations'
Security Council which has remained totalitarian since its inception and its
undemocratic veto system has served the interests of hegemonic powers, thereby
fomenting serious global crises. This paper examines the link between global
hegemonic policies and the United Nations Security Council, the IMF and the
World Bank.
The Background:
Immediately following
the first inter-imperialist war- World War I, Europe and North America decided
that future wars, particularly those fought on a global scale could be averted
by creating an international organization with all of the nation-states as
signatories. To that end the "League of Nations" was created (1). The League of
Nations was a supranational organization resulting from the Treaty of Versailles
in 1919–1920. U.S. President Woodrow Wilson was one of the principle architects
of the league. While he was supported by most of the league members, he was
opposed by the United States Congress which was vehemently against it on the
ground that it could undermine state sovereignty.
The advent of the
Second World War suggested that the League had failed in its primary purpose,
which was to avoid any future world wars. The United Nations was created after
the end of the war as a replacement for the league and equipped with a number of
now powerful and influential agencies and organizations. The term "United
Nations" was coined by the U.S. President Franklin D. Roosevelt whose pragmatism
and optimism encouraged him to see a World order resulting from the bloody
conflict as one based on cooperation rather than permanent conflict. His
successor, President Truman (2), however saw the World as a battleground of good
and evil (capitalist and communist). To Truman, the Soviet Union was not to be
trusted and if at all possible had to be isolated. Truman believed the ideology
espoused by the Soviet Union was inherently "anti-democratic", anti-capitalist,
anti-freedom and anti-free enterprise. The Cold War was descriptive of that mind
set and the context in which the United States' economic, political and military
decisions were made and implemented. Within a short period of time, the
Communist bloc led by the Soviet Union became a challenging and formidable
military power, and was perceived as a direct threat to Western democracies in
general and the "national security" of the United States in particular. The
divided world between the two antagonistic and competing camps of "Left" and
"Right," drew the Third World as the center of proxy wars and competition for
resources between the United States and the Soviet Union. In this context all of
the nationalists and progressive movements in the Third world were labeled
"communist" and therefore had to be contained or eliminated. Homegrown communist
influences in Europe, Greece and Turkey (among other places) were viewed by the
administration as an indication of Soviet expansionism. Both the United States
and the Soviet Union had veto power on the UN Security Council and from the
point of view of the Truman Administration, the Soviet veto power had to be
circumvented so as to prevent communist expansion. As one of the mechanisms of
preventing "communist expansion" as embedded in Truman's Four Point policy for
containing communism, the U.S. began formulating policies toward implementing
regional treaties. But the problem was that the United Nations' charter did not
allow such treaties and it had to be restructured. Regional treaties would have
allowed the United States to override the Soviet veto power while simultaneously
pursuing collective (regional) security outside of the United Nations.
At the San Francisco
Conference, the United States successfully altered the UN Charter (Article 51)
so as to facilitate the formation of legally binding regional treaties. The Rio
Treaty was the first successful product. From the point of view of the American
policy makers, the new threat had to be dealt with by regional military and
economic (security) systems and organizations which could unify all members in a
region against a common enemy—the international communism. Through the various
security systems, the U.S. was able to utilize the resources of regional
governments without appearing to be interventionists. In the post war period as
in the pre war era, the U. S. was seeking an integrated world political and
economic system which could prevent the growth of anti-capitalist groups
everywhere. To that end it sponsored the creation of multilateral economic
agencies such as the IMF and the World Bank. The State Department articulated
its views on the new world system by warning that socialist victories would
destroy the institutions of Free enterprise and free trade and would deny the
United States access to the supply of strategic resources. (Foreign Relations,
Department of State Bulletin, February 16, 1947:291). Regional security systems
were essential because according to Dulles (1950:88), the United Nations
Security Council was "hobbled by the veto" (3). And as long as the Soviet Union
possessed this power, it could prevent the formation of regional treaties, veto
necessary actions to protect vital United States interests and increase its
sphere of influence. Therefore, the strategy called for an overhaul of the
United Nations Charter (Dulles, 1950:88). Formal acceptance of Article 51 made
the formation of a "collective self defense" a possibility. To Dulles and
Vandenberg, this provision was the" most effective method of "containing the
Soviet aggression". Alteration of the United Nations Charter enabled the United
States to proceed with regional treaties, and it was according to Dulles
(Dulles, 1950:93) "a blessing" for mankind, and to Vandenberg "a sunlight in a
dark world." And Dulles (1950) as one of the architects of the Cold War argued
and agreed that the United Nations was a "universal" and a "World" organization
designed to maintain peace, but he disagreed that it should be the only
organization in charge of world peace. The Truman Administration and indeed all
of the U.S. Administration, since, have used regional treaties in implementing
foreign policy. Regional treaties have allowed the powerful members to rule with
the veto power when and where necessary and use military alliances and force
when and where their interest warrants. Since the creation of the Security
Council the permanent members have used their veto power in support of their own
economic, political and military interest or those of their allies. China has
used its veto 6 times; France 18 times; Russia/USSR 123 times; the United
Kingdom 32 times; and the United States 82 times. The majority of Russian/Soviet
vetoes were in the first ten years of the Council's existence. Since 1984, China
has vetoed three resolutions; France three; Russia four; Britain ten; and the
United States 43.
The concern regarding
the oligarchic nature of the Security Council has raised the possibility of
giving it an appearance of democracy. Currently, in addition to the permanent
members, there are ten rotating seats which serve primarily as non-essential
members. Japan, Germany and Brazil have been contenders for a permanent seat on
the Security Council. The concern regarding the absence of a representative from
the Moslem World and Latin America, India and Africa has been registered and in
2004 former UN Chief Kofi Anan proposed the expansion of the Security Council to
24 members. These suggestions have remained merely at the level of suggestion.
Any change in the structure of the Council requires alteration of the UN charter
and the benevolent cooperation from the reluctant permanent members and that
will remain unlikely. Security Council Resolution #1674 of April 28, 2006,
explicitly states that the aim ought to "protect populations from genocide, war
crimes, ethnic cleansing and crimes against humanity." Lo and behold that these
very abhorrent and savage mistreatment of the weak and the defenseless have been
traced to big powers or their proxies in the post-colonial world.
To
understand the extent of the charges against those committing war crimes it is
necessary to have an unadulterated definition of "war crime" and apply it when
and where it takes place irrespective of the status of the perpetrator. History
of this issue shows that when any of the powerful countries or individuals
belonging to these countries are charged with war crime, the wheels of "justice"
turn very slowly if at all. And the resolutions against them are often treated
as formalities. However the reaction to charges against those belonging to the
so-called "rogue" states is much stronger. Frequent disregard for the rules and
regulations even for those internal to these organizations, has created crises
of credibility and legitimacy. This is also true of the discriminatory
application of sanctions as suggested by the Security Council resolutions.
Sanctions against a particular country or set of countries adversely influence
global economic transactions, in terms of human suffering caused by shortages,
high prices and lack of access to basic necessities, and overall have been
counterproductive. Even Security Council Resolutions that are made under
Chapter VII (threats to peace and acts of aggression) which are legally binding,
contain no specific mechanism for punishment or prevention. The consideration of
Chapter VII has been very selective such as the cases of Korea, Kuwait, and
variety of Sanctions imposed under the regime of capital elsewhere.
One
of the most striking instances of disregard for the Security Council Resolution
is the case of resolution number 242 by which Israel was to give up the land it
had conquered during the 1967 war. Lack of compliance on the part of Israel,
gave rise to another resolution (#338) following the 1973 Arab-Israeli war—and
the problem is escalating. Citing various UN sources, Mearsheimer (2006), argues
that "since 1982, the US has vetoed 32 Security Council resolutions critical of
Israel, more than the total number of vetoes cast by all the other Security
Council members. It also blocks Arab states' efforts to put Israel's nuclear
arsenal on the International Atomic Energy Agency's agenda." Yet, Hilary
Clinton, as the new Secretary of State has repeatedly ignored the resolutions
against Israel while coercing and publicizing various resolutions against Iran
and its peaceful pursuit of nuclear technology (as have most of her
predecessors). Resolutions number 242, 338, 1397, 1402, and 1515 regarding
Israeli occupation of Palestinian territories have been dismissed as hot air and
no sanction, restriction or military action has been proposed or applied.
Moreover, the absence of any credible interests in resolving the Palestinian/
Israeli conflict is evident in the sideshows in the form of conferences,
meetings, negotiations, "Roadmaps" and "Quartet." The Middle East Quartet was
formed in 2002 shortly after the start of the so-called "war on terror." Its
members are the United States, the European Union, the United Nations (!) and
the Russian Federation. It is interesting that not only the exclusive club of
hegemonic powers have formed it, its first envoy was a well known financier in
the Anglo-American orbit, former World Bank President Paul Wolfenson who as
expected decided that Hamas was the problem and as long as it did not go along
with the rules set by the powerful members of the Quarter, no peace was
possible. In September 22, 2004, statement made by the Quartet contained some
degree of integrity (as compared to that of 2002) by the acknowledgement of and
explicit use of the terms such contentious issues such as "occupation" and
"illegal settlements." In June, 2007 the Quartet named former British Prime
Minister Tony Blair whose hands were drenched in Iraqi blood was named the
special envoy. In its 2008 statement, as again and again dictated by the timing
of the events in the region and elsewhere however the blame was squarely placed
on Hamas and advised Hamas to stop its "violence" against Israel. It demanded an
answer regarding the fate of missing Israeli serviceman Gilad Shalit without any
references to tens of thousands of Palestinians in Israeli prisons (whose
release ironically has been a demand of Israeli peace activists) and it
reiterated the necessity of maintaining "law and order" in the occupied and
battered cities of Hebron and Jenin. It did mention the United Nations'
resolutions number 242, 338, 1397, 1402, and 1515 and it asked the "benevolent"
Israel to allow basic necessities into Gaza. Blair proposed "the Valley of Peace
Initiative" or "Peace Valley Plan", based on free enterprise development in the
Palestinian Authority territory of the West Bank along the Jordan/Israel border
in the Arava Valley region. As in the past the idea that one could dissolve the
aspirations of a people in the quagmire of Western style free enterprise system
and insisting that all is needed is the transformation of people and their
habitat rather than addressing their legitimate grievances.
Security Council has
the power to adjudicate and take action on the basis of its own judgment and
often without the presence of the presumed guilty. Iran's nuclear program is a
case in point. Iranians have repeatedly stated that their intention is peaceful,
yet in this case Iran is assumed to be "guilty" until proven "innocent."
Indications are that even if countries like Iran discover the cure for all
cancers and AIDS, increases its space exploration, and supports the victims of
militarism and expansionist policies of certain member states, it would be
twisted and presented as a threat. The U.S State Department's annual list of
most serious threats to the World (reads American interests), is no longer
topped by Al Qaeda. Rather now the most serious threats are the ailing U.S.
economy and Iran. Why Iran? It is very obvious that the launching of the first
"homemade" satellite by Iran via a homemade delivery system whereby Iran is now
ranked the tenth country in the World with that capability and allowing Iran to
break into the exclusive club for this technology, and of course the Israeli
bombardment of the "biggest prison on the planet"—Gaza and the Iranian support
for the Palestinian people, and the relentless anti-Iran activities of Israel
Lobby in the United States are the primary reasons. Granted that the appearance
of neutrality and integrity must be kept and the United Nations' Security
Council is desperately trying to find that badly needed image. In the past
peacekeeping initiatives and efforts have been the only source of providing for
that appearance of neutrality and integrity. But a close examination of the very
recent events around the world points to the contrary.
As one of the most
influential components of the United Nations, Security Council has caused
immense damage to the point that the pronouncement of "collective security" and
the claim of "peacekeeping" efforts are suspect. It has dispatched close to
100,000 "peacekeeping" force to about twenty spots around the World and
investigative reports show that the misconduct of the force is not limited to
straight jacketing those nation-states the security council deems unfriendly,
but bribery and rape of young girls in some of the areas (such as Congo) where
they are deployed. As it stands the five permanent members of the Security
Council are five of the top ten largest arms merchants in the World as others
are vilified as threats to the security of the planet. And they are the top
nuclear arm countries which are using the IAEA to keep their exclusive club
intact. The most extensively used formal mechanism for the purpose of military
action, is the Military Staff Committee. Its members are military
officers from the permanent member countries. Security Council operates under
the pretense of "collective security" and that has invariably caused the
"humanitarian" militarism and legitimate interventions when the permanent
members desire. The criticism of Security Council is increasing as the hegemonic
elite- the five permanent members meet privately and decide what to do with
other peoples' lives. It is ironic that the very Security Council that
authorizes military action against a state under the guise of a threat to the
so-called "civilized world," has a junta style structure. There is no guarantee
that cautious China and Russia as two of the five veto wielding powers, will
continue to maintain independence and integrity on key international issues. The
pressure from more advanced members, and their own global interests are more
likely to force changes in their future priorities. As it stands the junta style
power of the Security Council will adversely affect everyone including those not
in the developing world. Even some western governments in the Anglo-Saxon orbit
have called for the elimination of the structure of the council. Paul Martin of
Canada advocated abolishing permanency at the council, while others such as the
governments of Iran and Venezuela have advocated the broadening of the Security
Council.
UN and its Affiliated Agencies:
Throughout its
existence, the United Nations system has grown in scope and function. For the
most part the cover of legitimacy for various international and supranational
organizations demands their association with an organization which is perceived
as legitimate and international. In the same manner that the Security Council
has been for the most part trying to present itself as a democratic and
legitimate component of the United Nations, several of the affiliated agencies
have been struggling with the crisis of legitimacy. Two of the most widely
criticized UN affiliated agencies are the IMF and the World Bank and all of
their subunits. To understand the functioning of the World Bank and the IMF one
must understand the philosophy undergirding their being as it is the case for
all other institutions. Once there is an understanding of the philosophy and the
ontological dimensions, one can readily see the behavior and predict the
outcome. The philosophy undergirding the functioning and the structure of the
IMF and the World Bank is rooted in the market fundamentalism, private sector
dominance, and the ruthless and discredited neoliberalism of the past three
decades. It is with an understanding of this philosophy that one pursues truth
behind the rhetoric's, slogans and false models and promises. These two
institutions and affiliated agencies work together. Their structure is similar
to any private corporation and the voting power determined by the amount of
resources put in by a member state. Thus wealthy nations have veto power and
therefore in control of these agencies. Historically, wealthy Western countries
(particularly the United States) have dominated these two institutions (as it is
the case for the rest of United Nations) and will continue to do so. To Volker
Rittberger (1973:223) the Bank and the IMF represent
"…supranational-bureaucratic peak of the Western controlled international
capitalist iceberg which extends across most underdeveloped countries…"
THE INTERNATIONAL MONETARY FUND (IMF): The
Epitome of Monetary Terrorism
In April of 1944, the
Bretton Woods Conference produced an organization that was to bring "stability"
to the chaotic prevailing global monetary system. The previous international
monetary system (the Gold Standard) was blamed for all of the economic problem
and the two World Wars. The new system designated the United States Dollar as
the key currency whose value was determined by gold. Once the value of the US
dollar was determined based on gold, then all other currencies were pegged
against the dollar. Thus US dollar became the universal currency acceptable in
most of the world as means of international payment. But this was the basis of
formulating policies at the service of global capitalism. As a United Nations
agency, the IMF has been the key global financial institution is empowered to
facilitate capital accumulation through economic growth. To that end it dictates
policies to member nations particularly those that are not part of the core
capitalist states. At first glance, the promotion of capital accumulation and
economic growth may not be such a bad policy since they are perceived as
positive development. What could be wrong with capital accumulation and economic
growth if the benefits reach ordinary people? This is precisely the problem and
throughout most of its history, the IMF as indeed it sister organization the
World Bank have not had the interests of everyone in mind. Capital accumulation
has winners and losers and indeed for the most part it is a zero sum process.
As a United Nations
agency, the IMF has the power to monitor and dictate the economic policy of the
member states. Its representative in the member country has access to vital
national statistics of the country and on that basis it decides the extent of
its policy involvement. One very critical factor that the IMF uses to decide the
policy is the degree of indebtedness of the member country to international
banks mostly located on the core capitalist countries. IMF refers to the policy
package it imposes on the member nation as "structural adjustments." The label
of "Structural adjustments" creates an impression that the IMF indeed is looking
after the interests of the member nation and all of its inhabitants. The
reality, however suggest anything other than the stated intent. If we were to
call the IMF policies "austerity measures", we will perceive of the world in an
entirely different form. Austerity simply means hardship and in particular belt
tightening for the working class and the poor of the former colonial
territories. Austerity measures are imposed when a country in indebt and in
order to enable the country to service its debt. Most of the previously
colonized territories after independence were left with devastating economic and
social infrastructure by the very colonial empires which robbed these
territories of their resources (often with the aid of comprador groups and
modernizing agents) and after decolonization, they were encouraged to borrow so
as to build the needed infrastructure (i.e, roads, schools, hospitals, and other
necessary infrastructures). The persistent question is how are they going to
service the debt? It is not possible for the debtor to write a check in their
own currency to pay the interests on the debt they must obtain hard currency (U.S
dollar, the currencies of the pre-Euro and now Euro). To obtain these
currencies, they must earn it. Here where the IMF attempt to help the creditors
in the collection process. These countries are then asked to 1) increase their
exports which often include food as cash crop in the midst of hunger, 2) lower
the wage rate, 3) eliminate or reduce expenditures on social programs, and if
necessary borrow just to pay the interests on the existing debt, and 4)
privatization which often ends up in the theft of public resources by a very few
parasitic and well connected individuals. These are the components of the
austerity program. Calling it structural adjustments will not change the reality
on the ground and a great number of the countries around the world are suffering
from the debilitating "debt trap." Debt trap (title of a great book on
IMF by Cheryl Payer) simply means borrowing just to pay the interest on an
existing debt. That is, even increasing exports which include food leading to
more hunger, and the other components of austerity measures are not sufficient
to pay for the interests on the debt. Some countries have resorted to the
production of illicit drugs (opium, marijuana, cocaine and heroine) in order to
obtain the necessary hard currency to pay their creditors. If there is to be any
relief, they must be capitalist friendly and that would be good for a limited
time.
The social, economic, political and
environmental damages caused by indebtedness are enormous. Hunger,
deforestation, pollution, soil depletion, spread of diseases, lack of
investments in sanitation, education, transportation, health and medicine and
overall degradation and repression have been increasing at an alarming rate.
Hunger exists because countries are forced to sell food as a cash crop, and if
the international market demands a commodity for several years and the framers
are encouraged to produce the same crop on the same land (abandon the ancient
method of crop rotation), the soil loses its nutrients and that would lead to
desertification; deforestation occurs because there is demand for limited food
that can be had once the trees are removed and the forest products are dictated
from the advanced countries; the separated population from the land now
rendered useless moves to the cities and cities are not built to house so many
people, hence the spread of diseases; pollution and the spread of diseases are
often ignored as long as they remain within the confines of the peripheral
countries. But the moment theses diseases (such as AIDS) begin appearing in the
center, then there is an outcry accompanied by racist labels, and pill pushers
sales representatives and catalogues; Current diseases could have been prevented
had the world community worked in concert to check the spread of these diseases.
But as long as the ongoing brutal, ugly and subtle imperialism on a global scale
is not challenged, these problems will multiply. What is the United Nations
doing about these kinds of threats to the "peace and security" of the world
(Article 27) caused by the policies of non other than one of its own agencies?
The association between the rise of epidemics and worsening endemic diseases
with the economic policies dictated by the IMF is becoming much more frequent.
The Journal of Public Library of Science reported on the possible link between
the role of the IMF in a country and the rise in tuberculoses (TB). "The
researchers concluded that "IMF economic reform programs are strongly associated
with rises in tuberculoses mortality rates in post-communist Eastern European
and FSU [former Soviet Union] countries….." (Multinational Monitor, 2008:8). TB
kills 1.7 million people every year and based on the study when countries
submitted to the IMF program, they experienced an increase of 13.9 percent in TB
incidents and an increase of 16.6 percent in mortality rates.
The IMF has been
pushing for privatization and deregulation of everything capable of producing
any amount of profit since its inception. There are too many cases of the IMF
dictating economic policies to that end and there are too many victims. Just to
illustrate, here are a few cases; Ghana's rain water in the country side is
fenced and sold. In 2000, the IMF approved a $300 million loan to Ecuador with
an existing debt of $15 billion. The preconditions imposed an "Economic
Transformation Law" primarily concerned with the interests of international
financial institutions (Finer and Huta, 2005). Perhaps the most sweeping
economic policy based on the free-market", globalization, and neoliberalism is
the IMF's removal of any kind of barriers to capital inflow and outflow. The
elimination of restrictions, regulations and requirements introduced in 1995,
were according to the IMF reduced the ability of countries to effectively
compete in the international economy. Following the removal of "capital control"
mechanisms, several Asian economies such as Thailand, the Philippines South
Korea and Indonesia experienced a devastating crash in 1997-1998. In a matter of
a few weeks some one million people in Thailand and 21 million people in
Indonesia found themselves in the ranks of poor (Bello and Guttal, 2005). Only
those countries such as Malaysia which closed the capital markets, --effectively
cutting the hands of speculators, remained outside of the failed economies of
the 1990s.
The International Bank for Reconstruction and
Development-- The World Bank:
The World Bank Group,
which is composed of the International Bank for Reconstruction and Development (IBRD),
the international Finance Corporation (IFC) and the International Development
Association (IDA), is one of the most controversial organizations affiliated
with the United Nations. The plan for the IBRD was drafted by the meeting of the
head of ten industrial countries at Breton Woods in April of 1945 and
implemented in 1946 and the other two components were added later. The
International Finance Corporation was primarily concerned with investing in the
private sector of the developing world; and the International Development
Association which has been for the most part making soft loans (insignificant
amount) to the very poorest of all the countries if they qualify. In its
formative years, the Bank concentrated on the Western European recovery and once
that task was completed, it turned its attention although for a different
purpose to the Third World. A review of the World Bank practices, suggest that
its lending practices for specific projects have been primarily at the service
of the dominant global private sector led by multinational corporations allied
with local capital. Often the practice of granting a project to a corporation is
a based on bidding and that as documented is replete with corruption such as
kickbacks, bribery among others. The fundamental aim of the World Bank is to
promote foreign investments and to enhance the profitability of these
investments by multinational corporations, while make some money for itself.
Like the IMF, the World Bank works closely with the US Treasury, powerful
financial institutions as well as multinational corporations. Citing a U.S.
Treasury Department study, Carol Stitt an advisor to the World Bank said "….
for every $1 invested by the government in the World Bank, $2.50 returned to the
U.S. economy through U.S. corporations, which obtain contracts for
bank-sponsored projects" (Lernoux, 1980).
The bank monitors
member countries in the same manner that the IMF does and it is guided by the
same philosophy –free market capitalism and survival of the fittest. The bank
facilitates private investments in the developing world and it provides helpful
information about the country to foreign investments. In fact it is consistent
with the IMF policies of ranking countries in terms of risk and profitability of
investment. If either of these two institutions does not have a favorable view
of the country or the country refuses their dictates, investors are alarmed and
loan applications are denied. The World Bank compiles an annual report called
the Doing Business. The report ranks countries based on their policy on
labor unions, wages and working conditions. If a country raises the wage rate
above the already low minimum wage and imposes regulations regarding working
conditions and bargaining efforts, and it makes it difficult to fire workers, it
will receive a low ranking from the bank. On the other hand countries that
regularly violate labor standards and maintain brutal working conditions receive
high ranks (Bakvis, 2006).
The Bank has in the
past attempted to deal with massive global indebtedness as has been the IMF.
What is striking is that both the IMF and the World Bank are the police of the
global financial transactions and from time to time as the crisis reaches a
boiling point that threatens the entire system, they suggest new strategies. For
example the bank in collaboration with the United States Treasury came up with
the "Brady Plan" in order to ease the debt burden by the developing world in the
1980s. As a "counter-insurgency" measure the plan reviewed the balance sheet of
a total of 42 countries out of 165 developing countries which were determined to
be "Highly Indebted Poor Countries" and in need of help. Finally it was decided
that the creditors should work with theses countries in the restructuring of
their debt if they undertake structural reform—free up money through reduction
in social services to pay the creditor. However in 2002, only 20 of the eligible
42 were able to initiate the necessary reform (see Bello and Guttal, 2005 for an
excellent indictment of these two institutions in many ways similar to an
earlier work by Teresa Hayter 1980, Cheryl Payer 1984, and Penny Lernoux 1980).
The presidents of the World Bank since its inception have been interesting. From
prior to McNamara to the architect of Iraq Invasion Paul Wolfowitz who resigned
after an scandal to Robert Zelleck who is the 11th President of the
Bank and like his predecessors comes either from the ranks and file of CEOs of
the private sector or Military Industrial Complex appointed by the President of
the United States. there is a long history which confirms the belief that the
World Bank group, although affiliated with the United Nations, primarily
represents the interest of the dominant few in the global economy.
The promotion of the
private sector as a matter of policy for the World Bank has been relentless
since its appearance. Step by step guidelines of global capitalist strategy
either in the form of World trade through removal of barriers, globalization and
project financing have been implemented by the Bank. In 2000, the Bank drafted a
new "Private Sector Development Strategy" (PSDS) and was adopted in 2002.
In it, the bank reaffirms its commitment to the sanctity of the private sector
and to improving the "investment climate" (Tannenbaum, 2002). In 2005, a report
by the European Network on Debt and Development (Eurodad) "found
that the World Bank still attached privatization, market opening and
deregulation requirements to more than 70 percent of its IDA loans and grants."
And the economic condition policies viewed by many as devastating have "remained
virtually unchanged…." (Multinational Monitor, 2007:7). The World Bank has been
actively promoting carbon trading for profit which financing projects that are
detrimental to the ecosystem. A report prepared by Janet Redman found that the
World Bank promotes the use of fossil fuel by way of carbon trading and found
that the Bank charges 13 percent commission on its $2 billion in carbon trading
(cited in Wysham, 2008:25).
The push for
privatization for the sole purpose of capital accumulation has caused major
social, economic and political dislocation around the world. There is no country
in the global south hat has not been adversely affected by their policies. The
mounting problems around the world from hunger to cholera, to AIDS, to violence
against children (in the form of child labor, and the use of children for body
parts among others), to soil erosion and deforestation, to persistent Malaria,
environmental degradation, chronic malnutrition, to rising illiteracy (estimated
to reach 700 million in a few years) to an estimated 1.4 billion people in
poverty and as compared to previous years the number is on the rise and so many
other problems are addressed among others by other well known United Nations
agencies.
Now what is that world
at large hears and sees as United Nations' efforts in dealing with the massive
socio-economic and environmental problems? The World is familiar with United
Nations through the worldwide presence of United Nations Educational Scientific
and Cultural Organization (UNESCO) which ostensibly promotes the arts, education
and cultural training; International Labor Organization (ILO) primarily
concerned with labor issues and interests including the widespread problem of
child labor. It is ironic that the very policies of the World Bank and the IMF
specifically tailored for indebted countries are the causes of child labor and
exploitation of labor; United Nations Food and Agricultural Organization (UNFAO)
often at the service of agribusiness and their control of food production and
distribution; United Nations Refugee, United Nations International Children's
Emergency Funds (UNICEF) concerned with the welfare of children around the
world. Yet millions are hungry, abandoned, abused, murdered and sent to work on
a daily basis; United Nations International Atomic Energy Agency (IAEA),
concerned with the spread of nuclear weapons and nuclear proliferation, but
controlled by the very nuclear club (and their allies) that controls the
security Council; World Health Organization (WHO) and its annual data on the
worsening global health conditions and what it assumes to be the causes; General
Agreement on Tariffs and Trade (GATT) that promotes a world sans borders when it
comes to trade through lower tariffs and quotas and standardization in the same
manner that the most reviled and recently created World Trade Organization
(WTO), and a few lesser know agencies. For the most part these agencies are
assigned the tasks of alleviating the symptoms of the structural damage caused
by the most powerful agencies such as the IMF and the World Bank. No one ought
to assume that all of the contemporary problems experienced by the developing
World are caused by these multilateral agencies. But what one can say with
certainty is the fact that the policies of the IMF and the World Bank along with
the dictatorial power of the United Nations Security Council are responsible for
a great number of these problems and as long as the contemporary hegemonic
structure is in place, the illness will persist and more agencies will be needed
to treat some of the symptoms.
CONCLUSION:
The
world is desperately in need of a solution to the crises of socio-economic and
political violence, lack of direction, and utter disregard for the declining
moral and ethical standards. The reality points to a very frightening prospect
and to a world that is not governed by any moral codes, ethical values,
international law and the absence of credible enforcing institutions. As the
behavior of certain permanent members even in the formative years of the United
Nations reveals, the current dysfunctionality of the UN is neither a recent
problem nor it is a matter of bureaucratic inefficiency. Rather it is built into
the hegemonic structure itself and the need for an alternative system with a
philosophy and mission statement suitable for a sustainable global social,
political and economic system is becoming increasingly urgent. As long as the
world is managed by those very few so called "fit" who pursue their own selfish
interest at the expense of the great majority, they are given the right to
codify rules, regulations, morality and ethics and to write history. Are we to
assume that the world is ruled by the fittest of the human species? If so then
the results suggest that there is a cancer on the body of humanity and unless
the world reverses its course and changes the culture of violence, the cancer
will destroy it. Recently at Davos we heard calls for more deregulation, more
free market, more capital inflow/outflow, more speculations, more free trade and
much more free this and free that. Angela Merkel of Germany and Gordon Brown of
Britain suggested the creation of a Security Council Economic Commission for
more policing of the World economy. This however is not in opposition to the
neoliberalism that Davos has been promoting. It simply means for control of the
World economy by a few—a few that control Security Council itself. There is a
hopeful sign that there is a growing awareness regarding the very oligarchic
structure of global institutions and the various mechanisms of transfer of
wealth from the poorest to richest. The developing world is displaying an
advanced degree of awareness that often dwarfs that of their counterparts in the
advanced industrial and capitalist countries. As their awareness advances
inexorably, the hope for a better world must be sustained. It is not the
hoarding and the wasteful consumption of resources --the foundation of uni-polar
and bi-polar hegemonic system that has ruled the world. It is a world free of
hegemonic tendencies, respect for the rules that everyone can live by. As long
as hegemonic powers control the structure and set policies, the structure will
remain detrimental to the health of the "real" international community. No one
should believe that United Nations ought to solve the World's pressing problems,
but no one expects the United Nations to be one of the causes of the problems.
It is time for the United Nations and all of its agencies to renounce past
practices on the part of some of its agencies, adopt a new paradigm, and join
the voices speaking on behalf of the under-privilege at the World Social forum
rather than as a cheer leader on the sideline for the voices of greed and
failure at the World Economic Forum at Davos.
ENDNOTES:
- In the nineteenth century, the quest for peace began with the "Concert of
Europe," the "Geneva Convention," and the "Hague Convention,"
"Inter-parliamentary Union and culminated in the "league of Nations.".
- The Administration made sure that the
existing and future treaties and organizations (United Nations Charters in
particular) were structured and restructured in a manner which reflected the
economic, political and military security considerations of the United
States and its allies. The critical issue for the Truman Administration was
the prohibition of regional treaties by the existing united Nations Charter
agreed upon at Yalta. To Truman, the Yalta Agreement was a give away and a
diplomatic tragedy. Despite his reverence for President Roosevelt, Truman
thought Yalta was a mistake. The San Francisco Conference was an attempt to
correct what had gone wrong at Yalta. The participants at this Conference
attempted a reorganization of the United Nations Charter and a reduction in
Soviet Veto power.
-
As a member of Security Council, the Soviet
agreement to the charter was a must. It had to be obtained regardless of the
tactics. To do so, the United States delegates thought it was necessary "to
proceed rather drastically and to depart from what might be called the best
diplomatic manners." To Dulles (1950), in order to "force" the soviet hand,
United States threatened to cut off financial aid to the soviets should they
refuse to go along with its request. These maneuvers followed by a press
statement which publically committed the United States to the equivalent of
Article 51. As the first step toward the formulation of a permanent regional
military the Conference Succeeded in neutralizing the Soviet's impact and
thus paved the way for the formation of a regional security system. John
Foster Dulles as a delegate to the Conference joined Truman, Vandenberg and
Harriman in denouncing the Soviet Union by stating that the Communists must
never be trusted. Dulles and Senator Vandenberg argued on behalf of the
administration that there was a need for provisions allowing regional
treaties and organizations which could foster peace. Dulles recognized that
under the United Nations charter it was very difficult to prevent the
communist domination of various countries in the region. Republican Senator
Arthur Vandenberg the influential supporter of Truman's foreign policy in
the Senate, along with other delegation members convened the Conference by
declaring that "FDR's appeasement of Russia is over..."(Vandenberg,
1953:176).
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... Payvand News - 02/23/09 ... --
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