This document summarizes Emily Yao's presentation on how to keep third world countries dependent on aid from industrialized nations. It discusses how structural adjustment programs imposed by the World Bank and IMF require third world countries to liberalize their economies, reducing barriers to foreign investment and exports while cutting social services, which leads to economic hardship and environmental damage. This cycle of aid and debt repayment ensures third world countries remain poor and dependent, allowing industrialized nations continued access to resources and cheap labor while enriching themselves. The document calls for abolishing or reforming these institutions to break this cycle of oppression.

1. How to Keep the Third World
Countries at bay
Presentation
by
Emily Yao

2. Recipients of Aid
Single commodity countries
– prices fluctuates because of the world
market economy
Lack of trained people
– building an educational system takes time
– insufficient amount of people to learn the
technology

3. Recipients of Aid
Quest for capital
– seek it overseas because of lack of supply
Need for foodstuffs
– implemented policies to encourage cash
crops
– food for consumption diminished
– need food imports to feed citizens

4. Bilateral Aid
Direct aid from one country to another,
usually from First World countries to
Third World countries

5. Multilateral Aid
Aid that is funneled by a non-affiliated
agency, such as the World Bank or UN
agencies
– considered to be more objective
– less politically affiliated and more freedom
is granted to the developing country
– less intrusion

6. World Bank
History
– Created to help in reconstruction after
WWII
– Grant loans for non-profitable construction
like roads, schools, and housing projects.
– Loan money to less industrious countries
for promotion of their economic growth.

7. International Monetary Fund
Mission is to supply member states with
money to help them to overcome short-
term balance of payment difficulties
Money is only made available after the
recipients have agreed to policy reforms
in their economies-to structural
adjustment
Membership of the World Bank is
conditional upon membership of the IMF

8. Structural Adjustment
Programs
Grant other more
industrialized
countries, like the
US, access to
resources like
cheaper labor and
foreign investment
with lower export
tariffs.

9. Consequences of Aid
Economic deprevation
– Social expenditures are
slashed, like health and
education
Environmental 07.jpg
devastation
– Massive deforestation
– Near extinction of nearby
coastal fish

10. Structural Adjustment
Programs
Third World Countries
– national removal of subsidies to the poor
on basic food stuffs
– tax systems are made more repressive
– real wage rates are allowed to fall sharply

11. Structural Adjustment Loans
Not tied to one specific project
Governments had to agree on a drastic
program of liberalization for multi-million
dollar loans
– reduced state’s role in the economy
– lowering barriers to imports, removing
restrictions on foreign investment
– emphasizing production for export rather
than for local consumption

12. Privatization and Deregulation
Foreign investment is taking over the
developing countries
Less power and control on the part of
the developing state
Can raise rates, which make the poor
suffer
Local governments are given money to
let foreign investment take over.

13. Solutions
Abolish these institutions
Create a special UN agency to control
the World Bank and the IMF
Peoples and countries force change on
the institutions, by confronting them with
evidence of the injustices

14. Cycle of Oppression
Funding for Third World
Countries
– Never get out of debt
– Resources will be
depleted to pay the debt
– Third World countries will
get poorer
– Industrialized countries
will be more rich

15. Strategic implementation of
repayment
Conclusion
– Once offered funds, Third World Countries
will never be out of debt
– Kept in a cycle of repayment
– This binds the less industrialized countries
to ask for more funds
– The process of granting aid should be
slowed down or thrown out

16. Works Cited
Arnold, G.(1985). Aid and the Third World: The
North/South Divide. London, Great Britain:
Robert Royce Limited.
Danaher, K. (1994). 50 Years is Enough: The
Case Against The World Bank and the
International Monetary Fund. Boston, MA:
South End Press.

17. Works Cited
Hancock, G. (1989). Lords of Poverty: The free-
wheeling lifestyles, power, prestige and
corruption of the multi-billion dollar aid
business. London, Great Britain: MacMillan
London Limited.
Herman, E. S. (1995). Triumph of the Market.
Boston, MA: South End Press.