[937] in peace2
NYTimes.com Article: World Bank Presses Inquiry on Economist Who Dissents
daemon@ATHENA.MIT.EDU (marcfrios@hotmail.com)
Fri Sep 7 13:56:51 2001
Reply-To: marcfrios@hotmail.com
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From: marcfrios@hotmail.com
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Date: Fri, 7 Sep 2001 13:38:47 -0700 (PDT)
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World Bank Presses Inquiry on Economist Who Dissents
By JOSEPH KAHN
WASHINGTON, Sept. 6 — The World Bank is conducting a disciplinary
investigation of one of its highest-ranking economists, who sharply
criticized the bank's record on fighting poverty in a recent book
and newspaper opinion article.
The economist, William Easterly, came under investigation by the
bank's office of business ethics and integrity after he wrote an
article in The Financial Times that summarized views expressed in
his book, several bank officials said. They said the inquiry, which
has not yet concluded, was started because Mr. Easterly did not
receive the required permission to write an article in a
general-interest publication.
In the article and the book, Mr. Easterly harshly assessed the
bank's half-century history of fighting poverty, arguing that it
has pursued a long list of failed elixirs and systematically
ignored the poor results of its programs.
He said the bank should encourage countries to adopt traditional
free-market policies and stop lending to corrupt and incompetent
governments.
The investigation of Mr. Easterly, which a bank spokeswoman
described as a routine enforcement of the World Bank's media and
communications policies, is being conducted at a time when its
president, James D. Wolfensohn, has come under attack from numerous
critics.
Right-wing economists say he has led the bank far astray of its
traditional mission to enhance economic growth around the world,
while those on the left say the bank under his leadership remains a
top- down institution that does too little to respond to the needs
of the poor. Critics have also put pressure on Mr. Wolfensohn to
forgive more third world debt.
Several bank officials said that Mr. Easterly's case is one of
several recent examples of how Mr. Wolfensohn has sought to assert
more control over a raging debate within the bank as he battles
outside critics.
The timing of the dispute is particularly sensitive because
thousands of protesters are expected to gather in Washington later
this month at the annual meetings of the bank and the International
Monetary Fund to oppose the way the lending institutions do
business.
Some protesters argue that the bank and the I.M.F. have failed to
alleviate — and may have worsened — poverty in developing
countries. Environmental, human rights and social activist groups
have also sought to force the bank, which is controlled by member
governments, to disclose more documents and allow the public to
express views about policies before they become final.
Separately, President Bush and his top advisers have pressed the
bank to rethink its antipoverty strategy. Mr. Bush proposed
replacing as much as half of the bank's loans to developing
countries with outright grants, a change that the World Bank
leadership has resisted.
Two influential opinion journals, Foreign Affairs and Foreign
Policy, have lengthy articles in their most recent issues that
question the direction Mr. Wolfensohn has taken the bank.
Although many of its critics have conflicting views about what is
wrong with the bank and what should be done to fix it, the flurry
of internal dissent and outside attacks have sapped morale and
created a sense of crisis, several people who work there say.
One close supporter of Mr. Wolfensohn said the bank was "under
attack by the forces of reaction," who are trying to undo the
changes Mr. Wolfensohn has brought since he took office six years
ago.
Mr. Easterly's views are among the most pointed. As a senior
adviser in the bank's research group, he has helped shape
antipoverty strategy for 16 years.
In his recent book, entitled "The Elusive Quest for Growth," Mr.
Easterly argues that the World Bank has systematically failed to
raise growth rates in the countries it seeks to help. He wrote that
two generations of bank leaders have been deluded by supposed
panaceas for growth, like increasing business investment, improving
education, limiting population growth, changing government policies
and forgiving past loans, all of which ultimately failed to raise
growth rates.
The developing world, including Africa, Latin America, South Asia,
East Asia outside Japan and former Communist nations in Europe,
grew at an average annual rate per capita of 0.1 percent from 1980
to 2000, according to the bank's statistics. East Asian nations
grew relatively quickly, but in the other regions, living standards
declined.
"Consider the facts and it soon becomes evident," Mr. Easterly
wrote in the op-ed page article, "that the $1 trillion spent on aid
since the 1960's, with the efforts of advisers, and foreign aid
givers, have failed to attain the desired results."
He proposed that the bank instead focus on creating incentives for
poor countries to adopt free-market policies, largely by halting
loans to nations that do not manage their economies effectively and
increasing loans to those that do.
Mr. Easterly declined to comment on his views or the bank's
investigation.
The agency's chief spokeswoman, Caroline Anstey, said it supports
Mr. Easterly's right to publish his book. She said the inquiry into
his newspaper article followed standard practice, and was not
intended to suppress dissent.
"This isn't about academic freedom," Ms. Anstey said. "Our
guidelines state simply that staff need to inform their managers of
contacts with the press, preferably before an interview, but if
not, afterward."
She said the inquiry involving Mr. Easterly had not concluded, so
it was unclear if he would be disciplined.
Several other people who work at the bank say its top officials
have recently taken a hard line on employees who violate guidelines
for communicating with the press.
In one recent case, Robert Wade, a professor at the London School
of Economics who has served as a paid consultant to the bank, was
cited for violating disclosure policies when he wrote an opinion
piece supportive of a bank lending program in China that was
canceled under pressure from outside critics.
"They are going to be tough on anyone who says anything that has
not already been vetted," Mr. Wade said.
http://www.nytimes.com/2001/09/07/business/07BANK.html?ex=1000895127&ei=1&en=458168eeeb07e420
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