The origin of the third world plight Essay


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The Third universe states have continued to witness some of the most ambitious times in their pursuit for existent development that would catapult their economic systems to process those 1s of the first universes. However these states have been bedeviled by major obstructions of bad administration. corruptness. and development by the first universe states. Of great concern has been the part of major universe organic structures that have continued to impoverish these economic systems in the name of back uping them. The World Bank stands out as one of the perpetrators.


Many times is when some people do non understand what is meant by the term ‘third universe plight’ . This in footings agencies. they are those states that still are developing. The 3rd universe states are greatly in significant indebt cape harmonizing to statistics. More than 50 % of the people populating in 3rd universe states are populating below the poorness line: this is below a dollar a twenty-four hours.

It is thinking. how this is go oning. but the World Bank has attributed all this. In 1986 –1987. the World Bank’s president Barber Conable said that the World Bank had been a great success. yet it merely oppresses the authoritiess in the 3rd universe states. In 1962. Robert McNamara who was the bank’s president led it to accomplish higher loans degrees and by the clip he was vacating in 1981. the degrees had increased from $ 883 million to over $ 12 billion. ( James Bovard )

McNamara and the World Bank supported Nyerere’s dictatorial government and the bank gave more assistance to Tanzania hence the cause of the current wretchedness of the Tanzanian people. This sort of act by the World Bank was desiring. as it merely devastated the 3rd universe states. In late 1970’s. the World Bank besides financed the Vietnamese’s authorities therefore promoting their barbarous policies that brought about a batch of deceases of the boat people in the south sea. The bank was to finance an irrigation undertaking that was hazardous. as it would be subjected to rebellion among the husbandmans. Farmers who resisted the undertaking ended up being drowned in the sea. ( James Bovard )

The World Bank lent $ 600million to the Indonesian authorities to forcibly take people from Java Island and resettle them in the waste islands. It was due to this transmigration. that force erupted in Indonesia. taking to the deceases of 1000s of people. Despite this fact. the bank termed this as the “largest voluntary migration. ” This was clarion of the Bankss hypocrisy as it violated human’s rights. The bank provided capital to the Ethiopian Marxist government of Mengistu Haile Mariam. ( James Bovard )

In 1984 – 1985. Ethiopia was struck by dearth and this forced the authorities to forcibly deport people in northern Ethiopia to the South. It is believed that more deceases occurred as would hold been caused by the dearth. The authorities introduced the villagilization plan but many people still rebelled against it and were killed. Despite of all this occurrences. the bank still continued to impart money. as it was non concerned with the citizens but seemed to supply more aid to the administrative officials and politicians. ( James Bovard )

The World bank is extremely to fault on the poorness in the 3rd universe states as it uses to coerce to this states to impart more money than which is borrowed. The audit of Madagascar Morondava Irrigation and Rural Development Project is a good illustration. where by the new authorities was pressured by the bank to accept the undertaking so as to be submitted to the executive managers. It is apparent that the World Bank gave incorrect advice to the 3rd universe states and it’s clearly brought in Western Africa in the undertaking of advancing chocolate and java. This merely failed because the bank had encouraged the husbandmans to turn hard currency harvests in unsuitable dirts. ( Barbara G 18 )

The universe bank in the late 1970’s and early 1980’s purpose. was to impart money in order to hike nutrient production in Africa and other developing states but this did non go on as about 20 % of the nutrient production had fallen because much of the bank’s investings went to large irrigation strategies and province farms therefore wastage of money. It is due to the bank’s hapless investings that dragged down the full economic systems of the 3rd universe states. ( Peter T. Bauer 21 )

In 1980. the universe began Structural Adjustment Loans plans that encouraged policy reforms. Most of these loans were chiefly traveling to the authoritiess of the 3rd universe states in refunding their debts to the bank or the international fleeting fund.

In 1984. a statement from a universe bank’s functionary was eccentric. as he said. “if China is to keep a sensible growing rate and manageable debt service payments. it will necessitate to obtain the necessary extra alien capital at an mean involvement rate below the market rate. ” This implied that even investings in the 3rd universe states would non be greater than the Bankss involvement therefore seting 3rd universe states into deeper poverty’ ( Peter T. Bauer 23 )

Problems faced by the 3rd universe states

  1. Malnutrition- a good illustration is in Kenya whereby a bank study found terrible malnutrition widespread among the donees. Barbara Gunnell concluded ‘the existent also-ran is the Kenyan authorities. or future coevalss of Kenyans who will travel on paying the World Bank involvement on the loan. ’ This was due to the fact that the bank had invested $ 20 million in Bura irrigation but when the so president Daniel Moi toured Bura he found ‘eroded irrigation canals. abandoned secret plans. hapless harvests. tumbledown and insanitary lodging. zebra croping on irrigated land and on air of decay’ ( Peter T. Bauer 23 )
  2. Diseases -a batch of diseases have become broad spread in these 3rd universe states and they include ; The AIDS pandemic. malaria. cholera among others.
  3. Poor infrastructure- hapless insfrastructure has become a major menace to these states as many accidents occur though roads that are constructed good but the cost of care is rather high hence they become bedraggled. ( Peter T. Bauer 24 )
  4. Desertification- an illustration is in Botswana whereby two farm animal undertakings that were to advance cowss lifting resulted to overgrazing. The bank farther introduced a 3rd farm animal undertaking despite the fact that it led to overgrazing. ( Peter T. Bauer 26 )
  5. Displacement- the bank is passing about half a billion dollars in the largest westwards-flowing river in India to dam it. This was proved that it would stop up displacing 1000s of people and destructing a batch of land but the World Bank went in front with its program.
  6. Insecurity- the 3rd universe states have been faced with high rate of insecurity as foreign direct investings have been directed to other parts hence of no benefits to these states every bit high offense rates still continues. ( Peter T. Bauer 33 )
  7. Poverty – many people in the 3rd universe states are populating below the poorness line due to the indebt cape that they have to their givers. international fleeting fund and the World Bank. ( Peter T. Bauer 34 )


It is apparent that though the World Bank has helped these states. it is majorly to fault for dragging their economic systems. For all states in the universe to be at par. it merely would be best to call off of. the debt of the alleged 3rd universe states. The bank ought to promote decreases in imparting capital to enable these states economic systems to turn. It could besides non impart capital that will be of bad usage. as this lone benefits politicians of these states and continues to deteriorate their economic systems.

Plants Cited

Barbara Gunnell. “The Great Bura Irrigation Scheme Disaster. ” African Business ( April 1986 ) : 18.

James Bovard: The World Bank vs. the World Poor: Policy Analysis: Retrieved on 13ThursdayMay 2008 from hypertext transfer protocol: //www. cato. org/pubs/pas/pa092. hypertext markup language

Peter T. Bauer:Equality. The Third World. And Economic Delusion:Cambridge. Harvard University Press. 1981 p. 21.