124/YOUR MONEY OR YOUR LIFE!
McNamara's point of view greatly amplified tendencies that
already existed in the Bank. These tendencies bolstered its institu
tional power while further neglecting the complex and distinct social
realities of countries lumped together in the 'developing countries'
category. Easily quantifiable objectives were defined to measure
progress. Complex social realities were reduced to so many sets of
target figures and group totals. Everything came to be seen in terms
of profitable undertakings, gradually increasing production and pro
ductivity, the evolution of earnings, and so on.
It was not too difficult to foresee the results of such an approach,
applied everywhere in an identical fashion. At best, it would be
ineffective; at worst, it was so inappropriate from a social and envi
ronmental angle as to condemn many projects to failure.
Development and the Security of the 'Free World'
It was also under McNamara's stewardship that the Bank began to
build up its 'new style' portfolio of projects aimed at combating
poverty. The main objective was rural development and agriculture
-a sector whose share ofBank loans rose from 18.5 per cent in 1968
to 31 percent (S3.8 billion) in 1981.
The World Bank joined the struggle against the spread of
communism in the Third World. It set up projects aimed at alleviating
poverty in both the cities and the countryside. These included
housing improvements, the installation of water pumps and power
lines. For the first time, health and education projects also accounted
for a significant share of the Bank's undertakings.
It was as part of his crusade against communism that McNamara
opted to tackle the scourge of absolute poverty. Never before had the
Bank seen its work for development as part and parcel of a
programme to alleviate poverty. But McNamara was convinced that
if steps were not taken against growing inequality in the distribution
of wealth in developing countries, from time to time there would be
popular uprisings threatening capitalist countries in the centre.
McNamara's time at the helm of the World Bank coincided with
the spread of struggles for liberation and revolution: the Portuguese
Revolution of 1974, freeing Africa's last colonies; final defeat for
American troops in Vietnam in 19 75; and the Nicaraguan
Revolution of 19 7 9. There were also major social and political crises,
even in the capitalist heartland: the Black civil rights movement and