Christian NGO’s, The World Bank and the IMF
in the Fight against Poverty
Barend A. de Vries
Chief Economist and Director of Creditworthiness Studies, The World Bank (ret.)
and formerly Professor of Development and International Economics,
Johns Hopkins (Baltimore) and Georgetown Universities.
This paper identifies the main areas where Christian NGOs and the Bretton Woods Institutions (
BWIs, The International Monetary Fund and the World Bank) collaborate in improving operations and
policies essential to reducing poverty in developing countries (LDCs). It will first describe a Christian
NGO in Washington DC which has been particularly active and effective in working with the World
Bank in the interest of enhancing a broader agenda of social justice. The paper recognizes the strong
scriptural basis for the activities of Christian NGOs. The discussion of the principal sectors of BWIs and
NGO activity will focus on the need to improve the role of women in development, improvements in
health and education, the fight for sound environmental policies, action against excessive military
expenditures and improvement in the system of international finance for the poorest countries in
particular debt foregiveness.
Among the Christian NGOs the Washington-based Center of Concern stands out as a highly
effective policy group which works closely with the BWIs on their operational practices and policies.
Headed by Jim Hug, SJ. the Center meets regularly with representatives of the World Bank and the IMF.
It has been in the forefront of advice on the reform of World Bank policies. It has pioneered a greater role
of women in church and society (Maria Riley, OP). It has sponsored extensive research in agricultural
policies in LDCs (under Martin M. McLoughlin). On occasion of its 25th anniversary, the Center
cosponsored (with the archdiocese of Milwaukee) the 1987 conference “Social Responsibility in the Age
of Globalization”. The conference drew attention to thepossible anti-social effects of globalization, and
pointed to remedial measures so all, both rich and poor, could benefit from the fruits of globalization. In
1994 Jo-Marie Griesgraber of the Center organized the conference “Rethinking Bretton Woods” which
made a range of recommendations to enhance the policies and operations of the World Bank and other
institutions in poverty reduction and related fields.
From its earliest years the CoC has had a close relation with some of the most senior officers of
the BWIs. Among these Irving S. friedman stands out. He was a senior officer in both BWIs and help
found the CoC. He always had a strong interest in applying Christian ethical principles to the policies of
the BWIs. Another key member of the CoC family was Phil Land SJ, a theologian who also had a PhD in
economics, an unusual combination (shared also by Phil Wogaman of Wesley Theological Seminary, see
Wogaman, 1986). Phil taught at the Gregorian University in Rome, but left his post and subsequently
joined the CoC when he did not agree with the Vatican’s opposition to birth control, as expressed in the
1974 encyclical Humanae Vitae. At the Center he wrote extensively on Catholic Social Teaching and
inspired numerous younger workers, as was evident from the memorial service led by Jim Hug SJ after
Phil passed away. Phil and Irving got to know each other and worked closely together at the Beirut
meeting where Catholics and Protestants collaborated in the formation of the Society for Development
and Peace, a joint commission of the Vatican and the World Council of Churches set up to further an
international social justice agenda.
The collaboration between the CoC and the BWIs was also facilitated by the fact that a number
of IMF Managing Directors had a strong interest in applying ethical principals to the Fund’s policies
(Especially Pierre Paul Schweitzer and Michel Camdessus), as did Robert S. McNamara and Barber
Conable in the Bank.
The CoC has a permanent senior staff of only a handful members who have in-depth knowledge
of their fields and several mostly younger staff who come from different countries. (One exception is
Rene Springuel who was a senior officer of the World Bank and its teaching institute and is now in the
process of joining the CoC as a volunteer)
The CoC is engaged in several fields through policy advocacy and educational sessions. The
widespread interest and activities of the CoC is evident from the following list of activities on which it
commented in a recent report:
a) A peaceful end to terrorism;
c)The role of international financial institutions in global economic justice;
d) Appropriate activities for the World Trade Organization;
e) Sponsoring initiatives for fighting racism in the US
f) Furthering the Education for Justice network.
Another Washington-based Christian NGO is “Bread for the World”, headed by David
Beckmann. While with this organization Nancy Alexander wrote many well informed, incisive critiques
of the World Bank.
The Christian NGOs are on solid scriptural ground in pursuing and enhancing anti-poverty
policies. The Bible has a strong and prevailing focus on the problems of the poor and oppressed. In the
history of salvation (Heilsgeschichte) the Bible presents several examples of God’s saving arm in
protecting His people against enslavement and oppression. Jesus emphasizes that the poor have a place at
the table in the realm of God (Lk 14: 13-14). (See B. A. de Vries, 1998, chapters 7 and 9)
Principal Sectors for Collaboration
The two BWIs work together closely in improving the conditions for economic growth which is
basic for effective anti-poverty action. They collaborate with their developing countries’ members
(LDCs) in working out a policy framework for achieving both economic and monetary stability, and
social justice. The frameworks have been expressed in various papers agreed between the two
institutions, as for example the policy framework papers agreed between the two BWIs for countries
receiving concessionary assistance, and the present Poverty Reduction Strategy Papers. Shortly after
arriving at the Bank in 1968 McNamara started Country Program papers which he reviewed personally
and later discussed with the Board of Directors. In the collaboration between the two BWIs the Fund’s
principal contribution is the pursuit of appropriate macro-economic policies, while the Bank’s focus is on
particular sectors. A number of these sectors are of concern to both the BWIs and Christian NGOs, as
follows:
First, the role of women is of crucial importance for economic development performance. In
many LDCs (India, the Middle East, Africa and a number of Latin American countries) women are at a
severe economic and moral disadvantage. The parents of Christian NGOs do not come to this issue with a
clean slate. The early Christian church soon developed an anti-women bias. Mary Magdalene, one of the
leaders of the church who was present at the resurrection, was accused of being a prostitute by the early
fathers. The great theologian Thomas Aquinas called women “misbegotten males”. And there was little
recognition of women in the church of Jean Calvin. And even today women are in an inferior position in
the Catholic hierarchy.
Despite all this most NGOs will now recognize that de-activating half the population through
discrimination against women puts society and the economy at a disadvantge in improving productivity
and total production. They are now of course interested to work for effective equality and in this respect
they can work closely with the World Bank. Under its president Barber Conable (1986-91) (prodded by
his wife Charlotte who was an effective feminist leader and teacher) the Bank started giving explicit
attention to the effects of operations and policies on the role of women in the socio-economic arena. In
this context the Bank had to give more attention to health policies and the education of women,
especially younger ones. More educated women tend to have fewer children, which is of interest to a
sane population policy. Likewise better health practices are central to the effectiveness of women in the
labor market. The World Bankis now also seeking to give central attention to the fight against AIDS. In
brief, education and health are sectors in which NGOs are active so that in these areas they have a strong
basis for collaboration with the World Bank.
Another major area of collaboration is the protection of the environment. The Judeo-Christian
message has a strong commitment to the love of nature. All creatures have their reason for being here in
the eyes of their Maker. Human beings, created in the image of God, cannot ravish creation but must
sustain it. In the view of the 1990 Oxford Declaration economic systems must be shaped so that a healthy
ecological system is maintained over time. Both the Pope (in his message of January 1, 1990, on occasion
of the World Day of Peace) and the US Catholic Bishops (1991) have spoken in favor of a positive proenvironment policy. The bishops’ views echo those expressed by James Nash of Wesley Theological
Sminary (1991). (See Barend A. de Vries, 1998, pp 112-118).
Environmental degradation weighs most heavily on the poorest strata of the population, as is for
example evident from the periodic flooding damage in
Bangladesh, flooding which could be prevented by reducing deforestation caused by
the use of wood for fuel. It were NGOs that put pressure on the United States Treasury which in turn
forced the World Bank to adopt more pro-environment policies. The Bank now requires that an
envronmental assessment be made in all is lending operations, a policy introduced during Barber
Conable’s presdidency.
In a number of key areas the Fund and the Bank have collaborated closely in increasing resources
for fighting poverty, issues on which the NGOs are also active. Military expenditures are an obvious
culprit in absorbing resources which otherwise may be used for poverty reduction. Both BWIs have been
active in drawing attention to the ill effects of defense outlays. The IMF, using its leverage on domestic
policy priorities and the composition of budget expenditures, has drawn attention to the ill effects of
military expenditures (as did World Bank president George Woods, 1963-68, in his negotiations with
India). Fortunately in the post-Cold War era the military have absorbed less resources, although new
funds are now needed in the fight against terrorism.
Finally the NGOs have been vocal in calling for a reduction in the external debt burden on the
poorest countries. In response primarily to NGO pressure, as well as more general economic
considerations, the two BWIs have taken a number of steps to reduce debt burdens with the assurance
that the funds so released will be put to work in fighting poverty. Much can still be done in this area to
assure excessive debt is not a handicap to development. For example, the conditions for inclusion in
present debt reduction schemes are too harsh and leave many of the poorest countries still in debtor
prison. Another major contribution made by the World Bank is the financing of the poorest countries on
concessionary terms through the International Development Association (IDA). Replenishing IDA is a
rather unpopular effort which requires steady attention and pursuasion by the Bank.
In conclusion, in these key areas of policy and operational practices the IMF and the World Bank
are working closely with NGOs: the role of women in church and society, the environment, military
expenditures and external finance for development. They respond to pressure from the NGOs who in
turn have had a wholesome effect on the international development effort in favor of the poorest of the
poor. Regular meetings between the NGOs and the two BWIs continue to provide a framework for
continuous collaboration which opens new perspectives for policy improvements. These have a favorable
effect on the level of external finance, the specific purpose of external assistance and the conditions on
which it is made available, all of them in the interest of reducing poverty.
Readings
Catholic Church:
Pope Paul VI: Populorum Progressio (On the Development of Peoples), 1967. A major statement
on social-economic development with specific policy advice which broke new ground for Catholic Social
Teaching.
Pope John Paul II: Message on occasion of the World Day of Peace, January 1, 1990.
Economic Justice for All, Pastoral Letter on Catholic Social Teaching and the US Economy,
1986. An authoritative and comprehensive statement on poverty conditions in the USA, with policy
advocacy, written in part in protest against the shortcomings of the Reagan administration in the social
arena. The statement’s principal author was Rembert Weakland OSB, archbishop of Milwaukee. It was
widely read in the US and abroad, and followed by similar statements made by other churches and in
other countries.
The US Catholic Bishops message “Renewing the Earth”. (Washington DC, 1991)
“And God Saw that it was Good”. Catholic Theology and the Environment.
Edited by Drew Christiansen SJ and Walter E. Grazier. United States Catholic
Conference, 1996.
Presbyterian Church (USA). “Restoring Creation for Ecology and Justice”. A Report Adopted
by the 202d General Assembly (1990)
Dent, Martin and Bill Peters: “ The Crisis of Poverty and Debt in the Third World.” Great
Britain, Ashgate, 1999. Application of the 2000 Jubilee to the Debt Problems of the Developing
Countries, critical of the attitude taken by the International Financial Institutions, written from a British
standpoint.
de Vries, Barend A. “Champions of the Poor, The Economic Consequences of Judeo-Christian
Values”, Washington DC, Georgetown University Press, 1986. A review of the principal economic
policy requirements for fighting poverty in the US and the developing countries, and of the positions
taken by the Jews, the Catholic Church, the Mainline Protestant churches and the Evangelicals.
de Vries, Margaret Garritsen, “The IMF in a Changing World, 1945-85”. Washington DC, the
International Monetary Fund, 1986. A review of the Fund’s operations and policies, and a review of the
Fund operating in a troubled world economy.
Kirshner, Orin: The Bretton Woods-GATT System , Retrospect and Prospect After Fifty Years”.
New York, M.E. Sharpe, 1996. Twenty five leading experts give their views on the state of international
trade and finance issues.
Land, Philip S. SJ: “Catholic Social Teaching. As I Have Lived, Loathed and Loved It”, with a
Foreword by James Hug SJ. Washington DC, Center of Concern and Loyola University Press (Chicago,
Ill), 1994. An authoritative review of the history and content of the social teachings of the Catholic
Church, written by someone who deeply felt its message and honestly acted upon it.
Oxford Declaration on Christian Faith and Economics. (1990) Philadelphia, Evangelicals for
Social Action.
Mason, Edward S. and Robert E. Asher: “The World Bank since Bretton Woods”, Washington
DC, The Brookings Institution, 1973. A critical and authoritative review of the develoment of World
Bank policies in its first 25 years.
McLaughlin, Martin M: “World Food Security” A Catholic View of Food Policy in the New
Millenium. Washington DC, The Center of Concern, 2002. Explores why one
seventh of the global population is starving and what can be done to correct this situation. Dr.
McLaughlin was vice president of the Overseas Development Council and is a consultant to the US
Catholic Conference on food policy issues.
Nash, James A. “Loving Nature” Ecological Integrity and Christian Responsibility. Nashville,
The Abbingdon Press, in collaboration with the Churches’ Center for Theology and Public Policy, 1991.
A Comprehensive Application of Christian Ethics to Issues in Ecology.
Wogaman, J. Philip: “Economics and Ethics. A Christian Inquiry” Philadelphia, Fortress Press,
1986. Gives an overview and summary of the views of a leading Protestant (Methodist) theologian who is
also an accomplished economist.
The World Bank, 2002 Annual Report. Gives more detail on the sector operations and policies
discussed in this paper.