"Victory for millions", part II. posted by Richard Seymour

To qualify for debt relief, developing countries must "tackle corruption, boost private-sector development" and eliminate "impediments to private investment, both domestic and foreign".

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In truth, corruption has seldom been a barrier to foreign aid and loans: look at the money we have given, directly and through the World Bank and IMF, to Mobutu, Suharto, Marcos, Moi and every other premier-league crook. Robert Mugabe, the west's demon king, has deservedly been frozen out by the rich nations. But he has caused less suffering and is responsible for less corruption than Rwanda's Paul Kagame or Uganda's Yoweri Museveni, both of whom are repeatedly cited by the G8 countries as practitioners of "good governance". Their armies, as the UN has shown, are largely responsible for the meltdown in the eastern Democratic Republic of Congo (DRC), which has so far claimed 4 million lives, and have walked off with billions of dollars' worth of natural resources. Yet Britain, which is hosting the G8 summit, remains their main bilateral funder. It has so far refused to make their withdrawal from the DRC a conditionality for foreign aid.

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To qualify for World Bank funding, our model client Uganda was forced to privatise most of its state-owned companies before it had any means of regulating their sale. A sell-off that should have raised $500m for the Ugandan exchequer instead raised $2m. The rest was nicked by government officials. Unchastened, the World Bank insisted that - to qualify for the debt-relief programme the G8 has now extended - the Ugandan government sell off its water supplies, agricultural services and commercial bank, again with minimal regulation.

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Let's stick for a moment with Uganda. In the late 80s, the IMF and World Bank forced it to impose "user fees" for basic healthcare and primary education. The purpose appears to have been to create new markets for private capital. School attendance, especially for girls, collapsed. So did health services, particularly for the rural poor. To stave off a possible revolution, Museveni reinstated free primary education in 1997 and free basic healthcare in 2001. Enrolment in primary school leapt from 2.5 million to 6 million, and the number of outpatients almost doubled. The World Bank and the IMF -which the G8 nations control - were furious. At the donors' meeting in April 2001, the head of the bank's delegation made it clear that, as a result of the change in policy, he now saw the health ministry as a "bad investment".