Upside Down World- “Beyond Reform: It’s Time to Shut Down the World Bank”

Originally published on January 23, 2014 at Upside Down World.  Written by Cyril Mychalejko

“Recent conflicts surrounding World Bank-supported projects in Honduras demonstrate that the World Bank is beyond reform, and needs to be shut down.

Source: Toward Freedom

The World Bank came under fire again last week when its ombudsman revealed that the bank’s investment in a palm oil project in Honduras worsened human rights abuses and violent conflicts.

The World Bank’s Compliance Advisor Ombudsman (CAO), the independent auditor for the International Finance Corporation (IFC), the bank’s private sector arm in charge of providing investments in developing countries in order to spur private sector growth, investigated a $30 million loan (half of which has been released thus far) to Corporación Dinant, a Honduran palm oil and snack food giant. The loan to Dinant was made just five months after a 2009 military coup in the country removed President Manuel Zelaya, a democratically-elected president seeking moderate labor and land reforms. Zelaya was replaced by a de-facto dictator who used the country’s military and security apparatuses to violently oppress social movements and political opposition.

Such investment on the part of the World Bank has further undermined democracy in the country and empowered Honduran elites profiting from recent political turmoil.

The CAO report suggests that there is an institutional culture of indifference at the World Bank that incentivizes staff  “to overlook, fail to articulate, or even conceal potential environmental, social and conflict risk” in order to streamline the approval of loans, while failing to follow its own policies and procedures to prevent such things.

 

 

 

“The IFC loaned millions of dollars to a project, even though it was known that its operations were already enmeshed in killings and other violence… the Dinant case should serve as a warning about the pitfalls of investing without proper oversight,” said Jessica Evans, senior international financial institutions researcher and advocate at Human Rights Watch.

The CAO cited reports by human rights groups which documented the murder of 102 people associated with peasant movements in the Bajo Aguán Valley of Honduras, where Dinant’s operations escalated decades-long land disputes. Most of the deaths are blamed on death squads composed of Dinant’s private security working in concert with US-backed Honduran military forces. The company refuses to accept any responsibility.

The IFC has denied many of the CAO’s findings. However, it stated that it would work with Dinant to reform its security operations, along with environmental and social management procedures, even though a company spokesperson told Al Jazeera that its security forces were not responsible for any violence surrounding land disputes—and in fact were victims, while suggesting a number of the CAO’s other allegations were “unfounded.”

Kris Genovese, senior researcher at the Centre for Research on Multinational Corporations, called the IFC’s response “totally inadequate” and that any future funding should be suspended.

“The CAO notes that Dinant was not in compliance with the IFC’s policies on the day the loan was made, and over five years later, continues to be out of compliance. An Action Plan that makes the same commitments that have gone unfulfilled this whole time holds little promise,” Genovese explained.

The CAO is also investigating the IFC’s investment in Ficohsa, a Honduran bank with a long relationship with Dinant. Peter Chowla, coordinator of the UK-based Bretton Woods Project, told the Financial Times, “The IFC was wildly irresponsible in investing in a private commercial bank, Ficohsa, in 2011 despite knowing that the bank’s third-largest client was Dinant and the IFC being well aware of the allegations of human rights abuses surrounding Dinant’s palm oil plantations. It highlights yet again IFC staff’s recklessness towards the impacts of its investments on poor people, while ensuring their corporate partners profit.”

The IFC’s investments with third party lenders such as Fichosa have been a long-standing problem; the relationship was audited by the CAO in February 2013. The Inter Press Service noted that a majority of the IFC’s third party lenders “failed to improve their environment and social practices following IFC investment” and that the IFC’s “oversight mechanisms include no capability to assess whether that lending…is helping or harming local communities and overall development indicators.”

The World Bank’s history of investing in projects resulting in murder and human rights abuses suggests that efforts to reform the bank is a fool’s errand. During the early 1980s, in neighboring Guatemala the World Bank lent hundreds of millions of dollars for the Chixoy Hydroelectric Dam project during the bloody military dictatorships of Fernando Romeo Lucas García and Efraín Ríos Montt. One of the results of the World Bank’s project was a series of planned massacres that left 440 Mayan Achi men, women, and children murdered.

A little over 20 years later the World Bank lent Canadian mining giant Goldcorp (then Glamis Gold) $45 million for an unpopular gold mine in Guatemala which not only spilled more indigenous blood, but was also an investment marred by violating indigenous rights and the improper evaluation of the project’s environmental impacts.

Around the world, from Ethiopia to Indonesia and Peru, the World Bank finds itself embroiled in controversies surrounding human rights violations, environmental destruction, and social discord. NGO’s for years have been calling for sweeping reforms at the World Bank, but to no avail.

It’s time to recognize that the World Bank is an institution incapable of reform, and is indeed unworthy of reform efforts. The only humane option is to focus efforts to close the bank immediately and to start building alternative financial institutions that promote local, community-led development projects guided by the principals of sustainability and solidarity rather than free market doctrine.

Otherwise, the pile of corpses will continue to grow in the name of progress and development—and reform.

Cyril Mychalejko is an editor at www.UpsideDownWorld.org, an online magazine covering politics and activism in Latin America.”

Advertisement

The historic march for Peace – its political motivations, the price of peace, and who was excluded

Foto: EFE

NB: Please check the original posted on Tuesday in Spanish for links.

“Until there are no longer first and second class citizens of any nation…there will be war” – Haile Selassie, former Emperor of Ethiopia

On Tuesday on the streets of Bogota bodies million Colombians took to the streets, saying they do not want more threats to the integrity and security of the same bodies. These bodies, after 49 years of murders, massacres, injuries, landmines, forced disappearances, forced recruitment, forced displacement, rape, torture, kidnappings, bombings, and threats, they want to bring to reality the dream of peace in Colombia in instead of a war against the rebels.

The mass mobilization occurred on the symbolic date of April 9, the second annual National Day for Memory and Solidarity with Victims, and the anniversary of the 1948 assasination of populist Jorge Eliecer Gaitán Ayala. His murder unclenched the civil war from 1948-58 known as “La Violencia”.

Some in the media are talking that tens of thousands attended the mach just in the Bolivar Plaza (in front of Congress, Colombia’s version of Hyde Park). Others, especially on social media networks (and later reports in the media) report 900,000 to one and a quarter million marching just in the capital.

In a sense, Tuesday’s march can be considered historic in that it demonstrates a complete change in the political tone of mass mobilizations. Just 5 years ago on February 4th, there was also the “historic” march which Barranquillero Engineering studenet Oscar Morales organized through Facebook called “One Million Voices Against the FARC”, which mobilized for the first time in years, millions of Colombians against this armed group. Nevertheless, this march was strongly criticized for its partiality (forgetting the crimes of the paramilitaries and the Armed Froces) and for validating the anti-guerrillero and war-mongering discourse of the political establishment and its counterinsurgency. It’s worth mentioning that former President Alvaro Uribe supported officially endorsed the march.

Now what we see is a peaceful march against war and for peace, organized by some entities which are by no means non-controversial (ex Senator Cordoba and the Marcha Patriótica have been accused by the Defence Minister, Juan Carlos Pinzón of having ties to the marxist insurgency).  Nevertheless, the nation in this occasion seemed to have been unified by a diverse march, without taking much notice of the social and political differences of the participants. This contrasts the march 5 years ago against the FARC-EP which was heavily supported by the middle and upper classes, and was explicitly linked to certain political interests.

Even though the march was organized by people who still have an ambiguous and controversial position in the public imaginary, the march and its gesture for peace wre well received by many sectors of mainstream opinion – the President of Colombia Juan Manuel Santos himself invited Colombians to march. The U Party was also in favour of the march (breaking away from Uribe’s opposition to it), and the Mayor of Bogotá and former M-19 guerrilla, Gustavo Petro also had passionately called on Colombians to unite in this gesture of solidarity towards the ‘victims’.

Basically, the marchers of the MP, who came from all parts of the country, many from rural areas/the Other Colombia, invited the urban and middle/upper class Colombia to temporarily forget their differences and march for a common peace. And the invitation, surprisingly, was accepted by the urbanity which only a few years ago was marching in pro of the counterinsurgency.

I think that the reflections of the editor of the popular Semana weekly (one of the most read publications in Colombia) best describes the political moment that occurred on Tuesday:

In this sense, perhaps the main lesson of April 9th is not just that the government achieved an important popular support in the street for its political negotiation [with the FARC], but that Colombians from very different sides, including oppositional ones, were able to coincide on one day in complete calm around a common objective. After the march, of course, this differences will continue. But, there are very few precedents of an alliance that goes beyond the most engrained of the establishment and the most ‘hardcore’ of the Left in favour of peace and a negotiated solution. Even the FARC and the ELN gave their support to the march.

Nevertheless, the pece march, ironically, despite its unifying character, also surfaced deep social and political divisions that the peace process has accentuated. Oponents of the march included the rare combination of the Democratic Alternative Pole (el PDA or El Polo, one of Colombia’s few progressive/left-wing parties that grew out of the demobilization of the M-19 guerillas), even though Polo congressmen and Mayor Ivan Cepeda and Gustavo Petro atended, and of course ex-President and his Puro Centro Democratico/Pure Democratic Centre, Alvaro Uribe. The Leftists, for their part, did not want to legitimize a politicization of the peace process used by the President for his re-election. The Uribistas/right-wingers, considered that negotiating with an armed group would be to legitimize it and that the President is negotiating “issues of nation” with a group of “narcoterrorists”. In particular, the Ex-President through his online commentary on Twitter said that the march was “disrespectful” to the victims of the insurgents.

–

The march nevertheless has many political interests behind it – first of all, it legitimized, partially, the Marcha Patriotica and the ex-Senator. Also, just because Santos did not march to the Bolivar Plaza (as the editor of Semana recounts, there was ‘no photo with the President and Piedad Cordoba’), it is easy to see how the march gave the President a big help in achieving the ‘popular mandate’ for the peace talks. Ex-President Andres Pastrana and several others had been criticizing the President for a negotiation seemingly without any popular support being carried out in secrecy in a far-off capital in the Caribbean. This march gave Santos an answer to those critics.-

In Colombia, like in any part of the world, there is no free lunch. Peace in Colombia should be created a plurality of actors, and it should be for all Colombians no matter who they are, as was the march on Tuesday. Peace should not belong to any one political party or leader, but as the Democratic Alternative Pole has argued, this is not the case.

In the same sense, we must ask ourselves, this march and this peace, its for whom, and by whom? Those who currently have a seat at the negotiating table in Havana, discussing the beginning of the end of a long and blood-soaked conflict are generals, government representatives who are almost exclusively from Bogota. They are not a broad representation of those who have the most interest in a  demobilization of the FARC-EP – those living in the communities under their control. On the other hand, it is not the thousands of forced combattants/child soldiers that are representing the FARC-EP at the table, nor their victims, but Ivan Marquez, the no. 2 in this guerrilla organization and the leader of the Caribbean Block, who is wanted for several counts of war crimes and crimes against humanity by Interpol and the Colombian justice system.

In other words, what is being negotiated in Havana is a peace between murderers. The government as much as the guerrillas claim that they are the victims and that neither has committed to recognizing their complicity or facing their victims.

This lack of recognition of their crimes (from both parties), and this discourse in PRO of peace (which was the official government line at the march) was very different to the many placards from victim’s groups marching on the streets of Bogota that demanded memory, justice, and truth.

Not to say that the good should the be the enemy of hte perfect, but it must be recognized that like everything in Colombia, this process is experiencing a centralization and a bureaucratization which is taking away power and a place to speak for the communities that continue to live in Colombia’s multiple war zones. As analysts of the CINEP have argued, a durable and legitimate peace needs to be regionalized/come from the rural areas.

The government emphasis on prudence (which the guerrillas have also respected) towards the talks makes much sense given the chaotic nature of the previous attempt in the Caguán. Some have talked of submitting the accord to a Constituent/popularly elected Assembly or putting it to a referendum as was done in Guatemala (which could be coopted and defeated by the right-wing). Nevertheless, it would be a shame if this peace, like the incomplete peace of 58 which ended the era of “La Violencia” but began the era of the FARC, would be like the war in Colombia – imposed by the powerful on ‘The Other Colombia’ without consulting nor giving space for the voices who live there.

–

Uribe and his ‘Pure Democratic Centre’ movement say that they are not opposed to peace per se, but that they are against ‘peace with impunity’. The diversity in the march Tuesday perhaps showed that the majority of Colombians want to put their differences aside and take advantage of this rare opportunity for a viable accord with the guerrilla force that just a few years ago was labeled ‘narcoterrorist’ and just a few decades ago was thought invincible. Nevertheless, just because the Uribistas have not gone out into the streets marching does not mean that they do not have support, nor that all victims are in favour of the process.

Peace, like everything, will come with a price. the FARC-EP have repeatedly said that they will not go to jail under any circumstances as part of an agreement. They consider themselves the victim of state and paramilitary violence; they want to do politics with guarantees of security and they do not want to address their victims, to say nothing of paying jail time for their crimes.

So, one could say that in a way, Alvaro Uribe is right. Undoubtedly, there must be a trade-off between ‘peace’ and ‘justice’. Many on the Left, with  good reason, were very critical of the demobilization process with the AUC paramilitaries. Nevertheless, it is very strange that the voice which is asking for justice for the FARC-EP for their crimes is the counterinsurgency ex-President, and that other commentators who criticized the deal with the paras are mute on this point. In any event, it has to be said that that balance between peace and justice is a very delicate and controversial issue; within the mainstream media, politicians, and the majority of analysts I have read who are in favour of the process, there is a language of forgiveness and reconciliation used which presupposes that the victims of the FARC-EP owe the guerrillas forgiveness because they all owe the country reconciliation. However, the trade-off between how much peace and how much justice is not something that can be imposed from Havana or Bogota. The peace in 58 was a peace between murderers, powerful interests, and it was imposed, leaving open and unhealed the wounds that would leave the soil of Colombia fertile for the bloodshed of the next half-century.
–

 

Finally, the war in Colombia in many ways is and is not against the FARC-EP. These guerrillas continue to displace, kill, threaten, forcibly recruit, and commit all kinds of war crimes and crimes against humanity, but the violence of new paramilitary groups is much more of a threat to public security than are the guerrillas, as reported by the conflict think tank Corporación Nuevo Arco Iris. This is not to say that the human suffering of the victims of the FARC-EP should be given less priority because the violence of the emerging paramilitaries is greater, but it is to say that a peace accord with the FARC-EP (and even with the ELN) will not put an end to war and violence in Colombia in a holistic way.

In fact, on Tuesday morning before the march Presidenet Santos on his Twitter account recognized the unfortunate murder of Ever Antonio Cordero Oviedo, a human rights activist working towards land restitution who was killed in Valencia, Cordoba. This man was but one of thousands of Colombians who continue to be victimized by this new manifestation of paramilitarism, for whom the government discourse that these groups are ‘merely criminal gangs’ reduces them to being outside of the ‘armed conflict’ and into the realm of ‘general delinquency’. In other words, for these thousands of victims, there was no mass march. In these thousands are also ADOM in Chocó and the women of the Enchanted Valley in Cordoba.

In Colombia, economic development of certain sectors is tied to war. The war in Colombia is a kind of institution in and of itself. Disarming this institution (literally), whose roots are have nexuses with so many other institutions such as the political and economic power of the nation, as well as the military industrial complex, will come at a high price. The war in Colombia is a very profitable business, and to end it there has to be a fundamental change in Colombian society.

This peace process must therefore be transformative for Colombian society. It can not only be reconciliation between victims and perpetrators (two identities which often intersect), but also a new social contract that begins to break down that wall which divides The Two Colombias. The peace with the FARC-EP must be a process that not only begins other peaces with the ELN and the neoparamilitary groups, but also that begins a wider conversation about the structural violences of poverty, patriarchy, racism, inequality, state violence, and above all classism which produced the guerrillas in the first place

Will the country have this conversation? Who knows. 10 years ago it was impossible to imagine a negotiation with the ‘narcoterrorists’ and now it is something which receives general support. It took a decade of counterinsurgency, displacement, murders, cooptation by the state by paramilitarism, and Total War, but at least this march showed that Colombians can change their opinion and leave aside warmongering and hate against the guerrillas in favour fo a supposedly common good (a national peace). However this change, as what will come after it, will also have its price.

—