EIR World Bank Interventions Win Converts, Earn Expulsion
October 11, 2014 • 12:34PM

The ongoing IMF/World Bank Fall forum in Washington received a much needed dose of reality when two representatives of EIR challenged the group think which prevailed on several of the forums nominally claiming to deal with the 'world's most pressing issues.' At a World Bank event titled "Jobs, Growth and Shared Prosperity," with a panel that included the World Bank expert on jobs creation (a British subject), the head of a Central Bank in Asia and a vice president of the Turkish Central Bank whose presentations were primarily on "spreading the wealth" and on creating labor-intensive jobs for the lower 40%, with no discussion of creating productive jobs through real development, one EIR representative began by noting that the talk of "bottom-up" job creation has to be looked at differently, taking Prime Minister Narendra Modi and his India as an example of a successful approach. India, a poor country, put a rocket into orbit around Mars, at a fraction of what it would have cost in the United States, by calling on thousands of Indians to participate, small companies collaborating for a national purpose, and, through that, inspiring nations to return to manufacturing and expanding skilled work and infrastructure for the nation as a whole.

None of the panelists responded. However later, the second EIR representative took up the same issue, looking at the question of credit and energy. His concise explanation of the concept of directed credit, using the example of Egypt, for large-scale development and job creation, and energy-flux density, looking at the vast expansion of nuclear power being developed by the BRICS, and the urgency of nuclear fusion, transformed the event.

In response, the Turkish central banker, in paraphrase, totally supported EIR's proposal. Scientific development, he said, is essential for creating new products, thus creating new demand. It is precisely the lack of scientific progress which is the plague of the developing nations. And, the economy absolutely depends on infrastructure—but investment is the problem. We bankers only provide short-term credits, but infrastructure needs long-term financing. Today at the G-20 meeting, the focus was on infrastructure, and the need for long term financing. The World Bank and other institutions need to issue long-term credits. With that, developing countries can invest, and can create defined pension funds for our population, which then provides another source of long term funding for infrastructure.

At the conclusion, the British jobs expert from the World Bank was tasked to sum up the meeting's discussion, and correctly pointed to the fact that the Bank has to stop thinking only of jobs for today, but rather jobs for 15 years from now—the projects and the education needed for the long term.

The day concluded with a press conference in which World Bank President Jim Yong Kim (a Korean-American) announced the creation of a $24 billion New Global Infrastructure Facility, several (Anglophile) countries, and about 25 private companies (see separate report)—a total scam based on "freeing up private capital" to build infrastructure.

Following the event, EIR spoke with Kim, asking if the World Bank would collaborate with the Asian Infrastructure Investment Bank and the BRICS New Development Bank. Kim waffled, saying the World Wank would collaborate wherever it suits them. Angela asked if it suits them to collaborate on nuclear power and high-speed rail. Kim's blunt response: "The World Bank does not invest in nuclear power."