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The Soon Coming Judgment Of God Upon America and How To Escape It 136
world economy. Despite all the rhetoric about development and the alleviation of
poverty, the central function of these multilateral lending institutions has been to
draw the rulers and governments of weaker states more tightly into a world
economy dominated by large, transnational corporations.
Over the past five decades, the World Bank and the IMF have steadily
gained power and influence, becoming the key arbiters determining which
countries will receive international loans. This status gives the Bretton Woods
institutions the power to enforce economic policies written in Washington, where
both the Bank and the Fund are based. For many in the Third World, this harkens
back to colonial times.
The policies imposed by the World bank and the IMF are designed to
facilitate the repayment of debt: that is, the steady transfer of wealth out of Third
World countries to the bankers of the industrial countries. This transfer of wealth
has had devastating consequences for the poor majority. Money that could have
been used, invested in health, education and housing has instead been transferred
to wealthy bankers. Accordingly, Third World countries under IMF/World Bank
tutelage have seen infant mortality rates increase, schools and housing deteriorate,
unemployment skyrocket and the general health of the people decline.
445
A major policy decision that leads to failed projects is the Banks choice of international
consultants. The Bank often insists on consultants from London, New York or one of several
other major American cities. The consultants often have no experience in the nation for which
they will be working and this results in poor recommendations. An analysis of the success rates
of the portfolios of major third world nations receiving development project funding showed that
a number of these nations had success rates for completed projects of less than 67 percent. Some
were much less—“Bangladesh (66%), Philippines (65.8 %), Algeria (58.3%), Mexico (56%),
Brazil (55.9%), Kenya (48.2%), Tanzania (34.8%), Nigeria (26.3%) and Uganda (17.2%).”
446
In May of 1993 World Bank staff met with “policymaker representatives” from half of
the Banks borrowing countries who provided revealing and startling testimony on Bank policy.
Willi Wapenhans recorded over 400 pages of anonymous testimony that slammed the Bank for
ignoring local input in favor of policy mandated from bank headquarters, which was not
consistent. One borrower said that the Bank staff 'take a negotiating position not a consulting
position—they know what they want from the outset and aren't open to hearing what the country
has to say,'”
447
John Perkins is one of the consultants whose poor recommendations led to failed Bank
projects in third world nations. In his expose, Confessions of an Economic Hitman, he explains
that he was recruited by the National Security Agency (NSA) after college and subsequently
received a lucrative position as an international economist working with an American
construction firm that specialized in third world development projects. He was quickly promoted
to chief economist not because of his expertise but because of his willingness to falsify economic
forecasts; to make poor recommendation which led to failed projects. He says he was recruited
and trained to be an economic hit man. He explains:
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