THE WORLD BANK AND THE DENIAL OF AFRICA'S RIGHT TO HEALTH
Fact Sheet by Ann-Louise Colgan of Africa Action
What is the World Bank?
The World Bank is one of the most important financial institutions in
the world, and the largest source of development loans for poor
countries. Created in 1944, the World Bank and its sister
institution, the International Monetary Fund (IMF), use the loans
they provide to developing countries to prescribe policies and major
reforms in the economies of these countries.
Why is the World Bank Important?
Over the past two decades, the poorest countries in the world have
turned increasingly to the World Bank and IMF for financial
assistance, because their impoverishment has made it impossible for
them to borrow elsewhere. The World Bank and IMF use this leverage to
dictate these countries' economic policies, and attach strict
conditions to their loans which give them great power over borrower
governments. The World Bank provides loans to over 80 countries, and
currently manages a loan portfolio of more than US$200 billion.
Who Controls the World Bank?
The World Bank is controlled by the world's richest countries -- the
U.S., the U.K., Canada, France, Germany, Japan and Italy, also known
as the G-7. Combined, these powers hold more than 40% of the votes on
its Board. They set the institution's agenda and the World Bank acts
in their interests, promoting a model of economic growth (called
neo-liberal) that pushes free markets and that benefits the richest
countries and the international private sector.
How did the World Bank gain influence in Africa?
In the 1980s, as market prices for export commodities slumped, and
international interest rates sky-rocketed, many African countries
found themselves in economic crisis, unable to repay mounting foreign
debts. In desperate need of new loans to pay off these debts, they
turned to the World Bank and IMF, who were very willing to lend them
money, as long as they instituted certain economic reforms in return.
These reforms, called "structural adjustment programs", adjusted the
economies of borrower countries to suit the interests of the
wealthiest players in the global economy. African countries, in need
of these loans, had no choice but to accept the conditions attached.
Over the past two decades, Africa's debt crisis has worsened, and the
failure of World Bank and IMF economic reforms has left African
countries more dependent than ever on new loans. The World Bank and
IMF, now major creditors to African governments, have gained huge
control over the running of African economies.
What does the World Bank do in Africa?
The World Bank uses its structural adjustment programs to effect
economic policy reforms in African countries. These reforms cut back
government services to the people, reduce trade barriers, and turn
economies into sources of cheap raw materials and cheap labor for
multinational corporations. The results have been a decline in
average incomes, worsening conditions of poverty and
underdevelopment, and an increase in Africa's foreign debt. Last year
(2000-2001), the World Bank provided loans totaling some US$3.4
billion to countries in sub-Saharan Africa, though this was still at
least US$250 million less than it took from African countries in debt
repayments. The World Bank claims to promote economic growth and
development in Africa - in reality it takes far more from the
continent than it gives.
How has the World Bank denied Africa's Right
to Health?
- Forced cut-backs in spending on health care
Over the past two decades, as part of structural adjustment, the
World Bank has forced African governments to reduce government
spending on health care. This has resulted in the closure of hundreds
of hospitals and clinics, and has left the remaining medical
facilities under-staffed and lacking in essential supplies. Under the
tutelage of the World Bank and IMF, in the 42 poorest countries in
Africa, spending on health care fell by 50% during the 1980s.
- Privatization of health care services, and introduction of "user fees"
The World Bank has forced African governments to privatize
government-held services such as health care, and to introduce "user
fees" for receiving basic care. This has created a two-tier system,
and has denied access to health care to the poor, who cannot afford
to pay these fees.
- Demanding debt repayments take precedence over health
Across Africa, governments are forced to spend more money on debt
repayments to the World Bank and rich country governments each year
than they do on health care for their own populations. The current
debt relief framework has not changed this fact, and Africa's AIDS
crisis continues to escalate.
- Intensification of poverty and underdevelopment
The World Bank's structural adjustment programs have not fostered
economic growth and development in Africa, but have instead
exacerbated conditions of poverty, food insecurity, and ill-health.
There has been an increase in the spread of poverty-related diseases
such as tuberculosis, and malnutrition has led to weakened immune
systems, particularly among children. Since the 1980s, the
devastating spread of HIV/AIDS has been facilitated by widespread
poverty and the lack of access to health care facilities. More than
17 million Africans have died of AIDS, and more than 25 million are
currently infected with HIV.
Africa Action's Position:
Health is a fundamental human right. Over the past two decades, the
right to health of Africa's people has been consistently undermined
by the policies and prescriptions of the World Bank and IMF.
Structural adjustment programs and Africa's worsening debt crisis set
the scene for the current health care crisis, and now have made it
impossible for Africans to deal with the massive health emergency
with which they are faced. The World Bank must take a large degree of
responsibility for this situation. It is an institution that
represents global minority rule, and it has used its power to exploit
African countries for the benefit of its stakeholders, and to deny
Africa's people the right to health. Africa Action calls for an
immediate end to World Bank policies that have caused such
devastation to the people of Africa.
What Can You Do? Boycott World Bank Bonds!
In the same way that the divestment movement helped to break the
power of the Apartheid regime over South Africa, the World Bank Bond
Boycott Campaign aims to break the power of the World Bank over
developing countries. The World Bank gets 80% of its funding from the
sale of its bonds on private financial markets. Boycotting World Bank
bonds therefore attacks both its primary source of financing and its
public image. Africa Action calls on you to ask your university,
religious institution, or city council to pass a resolution that it
will not purchase World Bank bonds. It is time to stand up for
Africa's Right to Health, and to demand accountability from the
institutions that uphold global apartheid.
Source: CP tech
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