Bankrolling poor!

IIPM BEST MBA INSTITUTE

ADB should not follow World Bank

The biggest financial powerhouse of Asian region – Asian Development Bank (ADB) – in its recently held 40th meet at Kyoto, grappled with the same old theme of managing liberalisation while keeping the growing poverty & inequalities under check. Restructuring the four decade old institution, in tune with the changing scenario (driven by burgeoning inequalities & challenges to environment), remained high on agenda during the meet. This meet suggested that the Bank change its focus from “fighting extensive poverty to more inclusive growth, emphasizing environmentally sustainable growth over traditional economic growth, & moving from a primarily national, country by- country focus to a more regional focus.”

The emphasis on environment was enough to draw the American wrath, which condemned the Bank for diverting from its core business of beating poverty. Protesters in Japan also blamed the Bank for doing too little to fight poverty and rather catering more to the interests of Japanese trading houses and investing in infrastructure projects in less-developed Asian nations. There is no doubt whatsoever that Asia is fast replacing Europe as the engine driving the global economy. But despite the encouraging economic indicators, threats of widespread poverty, environmental deprivation and hunger are bigger than ever (roughly 1.9 billion people in the Asian region are earning less than two dollars a day). And this, of course, is the biggest challenge.

Under such circumstances , it becomes all the more imperative for the Bank to refrain from any allurements to follow the World Bank or IMF model, based on exploiting poor nations for the good of MNCs. The Bank may increase its sphere of influence, but any digression from people-oriented programmes will, in fact, only harm the Bank’s image.

B&E edit bureau: Vikash Kumar

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative