FOR IMMEDIATE RELEASE CONTACT: Neil Watkins (202-822-1180 x208, cell: 210-3241) April 10, 2000 Neil Tangri (202-387-8030, cell: 301-602-7653)
ACTIVISTS AIM FOR WORLD BANK'S ACHILLES' HEEL: BOND BOYCOTT LAUNCHED
Washington, D.C. -- As the World Bank braces for mass protests in the streets of Washington, D.C., one attack is being launched from an unexpected quarter -- the financial markets.
The World Bank raises 80% of its funds through bonds which are sold to investors on private capital markets. Today is the public launch of a boycott against World Bank bonds, which is being organized in eleven countries, including South Africa, Ecuador, and Pakistan. Beverly Bell, Director of the Center for Economic Justice said, "The fact that labor unions, churches, universities, and municipalities own these bonds gives ordinary citizens the opportunity to take power away from this destructive institution."
"When investors realize that their money is being used to damage the environment, destroy indigenous communities and trample human rights, they will move their investments to less controversial projects," says Neil Tangri of Washington, D.C.-based Essential Action. Even before the campaign’s official launch, several socially responsible investment firms (including Trillium Assets Management of Boston and Progressive Assets Management of New York) have pledged not to buy World Bank Bonds. In addition, the city of Berkeley, California and Local 9423 of the Communications Workers of America in San Jose, California have passed resolutions to boycott the future purchase of World Bank bonds. Similar resolutions have been initiated in communities and institutions throughout the United States.
"We need to break the power of the World Bank over developing countries, as the divestment movement helped break the power of the Apartheid regime over South Africa; this is why we support the boycott of World Bank bonds," said Dennis Brutus, a Patron of Jubilee 2000 South Africa and former South African political prisoner.
"Berkeley was the first city to boycott companies which did business in South Africa. We led the way in going after corporations which are doing business in Nigeria and Burma. Today we are proud to speak out against environmental degradation and other destruction caused by the World Bank with a similar action," said Pratap Chatterjee, a member of the Community Environmental Commission of the City of Berkeley.
Kevin Danaher of Global Exchange, the San Francisco based human rights organization, said: "We aim to go after the World Bank's Achilles’ heel, which is its public reputation. The World Bank has come under increasing criticism for its record on poverty reduction, human rights and the environment.”
The bond boycott is only one of multiple initiatives against the IMF and World Bank, many of which will be launched in this week’s protests in Washington, DC. Also, the Meltzer Commission of the U.S. Congress recently proposed strictly curtailing the Bank’s functions and influence.
Dr. Vineeta Gupta, a medical doctor based in Punjab, India and one of the organizers of the boycott, was blunt. "The World Bank is subjugating our economic and social independence. It's time that we shut the Bank down, and this boycott is a great start."
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