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In today's edition: gene editing, CAP, enlargement

Also, in Tuesday’s edition: Armenia, brain cancer, Bauhaus, FCAS, antisemitism

The migrant fishermen who waited nine years to give evidence about the company that exploited them.

By Anis Chowdhury
SYDNEY, Jun 9 2026 (IPS)

The World Bank considers corruption a major obstacle to eradicating global poverty. The Bank officially has a zero-tolerance policy against fraud and corruption in its projects. Concerned with widespread corruption in Bangladesh, the Bank and the Government agreed on the Governance-oriented Country Assistance Strategy (GCAS) in 2006 and the Bank’s subsequent Country Partnership Strategy (CPS) ostensibly has been more selective on governance and anti-corruption (GAC) issues. Ironically, however, the Bank’s funding enables corruption. The Bank’s recent decision to advance a US$350 million loan allegedly for enhancing energy security is a glaring example.

Anis Chowdhury

Corruption-riddled energy sector

The Interim Government’s White Paper on the state of the economy documented the extent of collusion and corruption in the energy sector. It noted the authoritarian kleptocratic government’s inflated demand forecast, disregarding professional projections. Thus, the installed capacity hugely exceeds actual demand. Against the peak summer demand of approximately 17,000 MW, the installed capacity is nearly 32,000 MW (or 30,000 MW considering aging infrastructure). According to the White paper, this artificially “increased capacity was driven by unscrupulous motivations” to benefit the regime’s cronies who formed a monopoly cartel in the power sector.

A series of dodgy moves facilitated unprecedented misappropriation of public money in the sector. The first was the awarding of contracts to 17 private rental plants through ‘negotiation’ in 2010, circumventing the Public Procurement Rules. The second was the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, which protected energy contracts from competitive bidding and legal challenges. Such indemnity is a license for corruption, facilitating unchecked project approvals and non-transparent often dollar-denominated Power Purchase Agreements.

These agreements enabled the purchase of electricity from furnace-oil-based plants at prices 40-50% above market rates and from gas-fired plants at prices 45% above market rates, according to the Interim Government’s review committee. Initially established for a four-year period to address an emergency supply situation, the arrangement has been extended multiple times, allowing the cronies to be paid an exorbitant excess capacity charge.

The estimated total excess capacity/rental payment to the private sector from 2010-11 to 2023-24 was approximately US$2.93 billion. In the 2024-25 fiscal year alone the capacity charge was approximately US$3.42 billion, while nearly 63% of installed electricity generation capacity remained idle. According to the review committee, an estimated excess generation capacity of roughly 7,700 to 9,500 MW is causing an additional annual expenditure of US$900 million to US$1.5 billion in capacity payments.

The White Paper estimated that the rental power plants made as high as 35% profit against a standard 15%! The private sector power companies received payments from the government as rent for power plants under the guise of power purchase agreements, where corruption, rather than electricity supply, was the main objective.

Most of the operational private power plants in Bangladesh are owned/controlled by a group of five cronies. They control country’s power sector to loot vast amounts of money. While the kleptocratic regime beat the drum of “self-sufficiency” in electricity, its cronies were pillaging the state coffer.

While the cronies enjoyed excess profits through extraordinary corrupt practices, consumers paid the price. Electricity prices were increased 12 times at the wholesale level and 14 times at the retail level over 15 years during the kleptocratic regime, ostensibly to reduce losses and subsidy requirements. But neither losses nor subsidies declined.

The review committee recommended that contracts containing evidence of corruption should be cancelled immediately. It also recommended renegotiation of high-cost and unequal power purchase agreements to revise and convert them to a “take-and-pay” model following Pakistan’s example.

Instead of taking these recommended measures, the current government has chosen the path of the kleptocratic regime’s looting model. The decision to hike the electricity price will protect the fatty pockets of cronies at the expense of the common people.

The World Bank’s role

The Bank has been a prime advocate of privatisation of Bangladesh’s energy sector, citing widespread corruption and inefficiency of the publicly-owned power sector. It pushed for “unbundling” vertically integrated state monopolies, facilitating Independent Power Producers (IPPs), and mobilising private capital through financial guarantees – a strategy that supposedly should improve energy security and at the same time ease public fiscal burden.

The Bank has been providing loans ostensibly to help Bangladesh improve its energy security. But that has made the country heavily reliant on imported Liquefied Natural Gas (LNG) and fossil fuels and has locked Bangladesh into steep capacity payments, draining foreign exchange reserves. Thus, the Bank’s loans allegedly for ensuring energy sector security have created a vicious circle of debt burden and plunder of public coffer through hefty capacity payments.

Instead of further advancing loans of US$350 million, the Bank should have told the government to implement the recommendations of the Interim Government’s review committee; i.e., cancel the unscrupulous agreements with IPPs and stop fiscal bleeding through unfair capacity payments. The savings from the capacity charges would have been more than enough to pay for the imports of LNG without incurring additional debt burden.

The Bank’s anti-corruption record

Why does the Bank advance loans to the sector riddled with widespread corruption? The Bank’s anti-corruption record is at best disappointing globally. The Bank once took a firm anti-corruption stance in Bangladesh when it pulled out of the Padma Bridge project alleging corruption. But it scrambled to recover its lost ground when other lenders with strategic interests came forward to fill the gap.

Evaluating the Bank’s engagement in Bangladesh during 2011-2020, the World Bank’s own Independent Evaluation Group concluded, “Despite a trend of deterioration in the country’s institutional quality and economic management, the Bank Group significantly increased financing to Bangladesh over the review period, making Bangladesh one of the largest borrowers”.

As a lending agency, the Bank’s existence depends on debtor countries’ borrowings, regardless of its lofty ideals, such as poverty reduction. A fundamental flaw in the international aid system: “the donors are more desperate to give than the recipients are to receive”. Therefore, the Bank takes a “pragmatic” approach, and tolerates corruption.

Then why did the Bank declare zero-tolerance policy against corruption? Perhaps this is because it has to satisfy the public anti-corruption sentiment in creditor nations; their citizens do not want to see their tax dollars being misappropriated.

Renowned political economist, Robert Wade conceptualises this as gesturing to appease creditor governments while acting to the contrary to appease borrower governments. Thus, the Bank’s “organised hypocrisy” enables corruption in poor borrower countries.

Anis Chowdhury, Emeritus Professor, Western Sydney University (Australia). He held senior UN positions in Bangkok and New York and served as Special Assistant to the Chief Advisor for Finance (with the status and rank of State Minister) in the Professor Yunus-led Interim Government. Anis has written extensively on macroeconomic issues, sustainable development, international financial architecture and political economy. E-mail: anis.z.chowdhury@gmail.com; a.chowdhury@westernsydney.edu.au

IPS UN Bureau

 

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By Jomo Kwame Sundaram and Felice Noelle Rodriguez
KUALA LUMPUR, Malaysia, Jun 9 2026 (IPS)

Recent geopolitical trends threaten more food crises, especially in developing countries. A new IPES-Food report urges a strategy of ‘resilient self-reliance’, proposing available opportunities to improve equity, sustainability and solidarity.

Jomo Kwame Sundaram

Enhancing vulnerability
The New Geopolitics of Food. Navigating policies for resilient self-reliance argues that international food systems have been profoundly transformed by the geopolitical changes of the last four decades.

Geopolitics – referring to political sanctions, trade disputes, military conflicts, multilateral challenges, aid cuts, planetary heating, and corporate interests – is affecting food availability worldwide.

Corporate interests have increasingly reshaped food systems over the last half-century – promoting selective trade liberalisation, deregulation, privatisation, financialization and cost reductions, ostensibly to improve food security efficiently.

Prioritising cost and fiscal savings led to the neglect and closure of buffer stocks. Food systems became more vulnerable as price volatility worsened.

Just-in-time supply chains have also been more susceptible to geopolitical shocks, planetary heating, and market manipulation.

World Bank structural adjustment programmes made developing countries more reliant on food and input imports. Tariffs and sanctions have disrupted food supplies worldwide.

Felice Noelle Rodriguez

Supplies have become more vulnerable to disruption, whether due to poor harvests or political sanctions. Price volatility has also worsened food insecurity, even in large countries.

Wars in Ukraine, Iran and elsewhere have disrupted supplies, spiking prices, and have most hit poor food-importing countries. Powerful governments have also weaponised food supplies for political reasons, as against Cuba.

Major donor countries have cut aid, with lethal consequences for the most vulnerable, as in Sudan, Palestine, Afghanistan, and the Democratic Republic of Congo.

The legitimacy and capacity of multilateral institutions – such as the UN, World Trade Organization (WTO) and World Health Organization (WHO) – have been deliberately undermined by superpowers abusing international arrangements for their own advantage.

Food prices have been much higher since 2020, following the COVID-19 pandemic, the Ukraine and Iran wars, and other major disruptions. For instance, the Hormuz fertiliser disruptions will hurt food supply for some time to come.

Import bills have risen sharply, worsening debt burdens in poor food-importing countries. Food inflation has hurt low-income communities most, especially when governments juggle imports with debt servicing.

Corporate concentration has also worsened fertiliser and food supply and price volatility, especially hurting smaller producers. Powerful interests have also abused food crises for profit.

Geopolitics has also worsened environmental crises, as planetary heating intensifies extreme weather events, hurting crop yields and food availability.

Managing markets
To enhance food security, governments must effectively influence markets with appropriate policy instruments.

The report proposes adapting policy tools once widely used before corporate-inspired neoliberal reforms, to improve contemporary market management, supply resilience and price stability.

Public stockholdings (PSHs) involve government procurement, storage, and timely release of stocks to enhance food security, including by stabilising prices. PSHs can thus help smallholdings while improving emergency preparations.

Using minimum support prices with its Targeted Public Distribution System, India subsidises grain for two-thirds of its people, while insulating national food prices from international volatility.

Meanwhile, the Economic Community of West African States (ECOWAS) has established a Regional Food Security Reserve to pool members’ stocks and collectively respond to crises.

Supply management
Other supply management mechanisms include production quotas, marketing boards, and import controls.

Market management has also supported other policy goals aimed at improving rural vitality, equity, food sovereignty, environmental sustainability, and democratic participation.

Thus, unlike in the US, Canada’s dairy, poultry, and egg production is subject to quotas and negotiated minimum prices to limit price volatility and stabilise farm incomes.

But policy implementation remains challenging. PSH programmes are often complex and costly, and risk leakage, corruption, and inefficiency.

Government commitments, such as trade agreements, limit policy options. Supply management measures may also raise consumer prices and favour wealthier farmers, as neoliberal critics have been quick to exaggerate.

But these policy tools can also support small-scale producers, reduce waste, strengthen national supply chains, and mitigate risks posed by highly centralised industrial agriculture.

Resilient Self-Reliance
The report promotes resilient self-reliance, requiring appropriate market management to stabilise food supplies and improve equity, sustainability, and food sovereignty.

Resilient self-reliance combines resilience (the ability to withstand and recover from shocks) with food self-reliance (the capacity to meet food needs with domestic production and cooperative trade).

The report recommends innovative trade partnerships, including international buffer stocks and cooperative regionalism, citing CARICOM’s regional food strategy.

Resilient self-reliance upholds food sovereignty norms, emphasising farmer rights, agroecology, territorial markets, and democratic governance, stressing equity, diversity, ecological balance, and flexibility.

Managing markets can also support agroecological transitions, culturally appropriate food diversity, territorial markets, and strategic reserves to cushion shocks.

Vulnerable countries, often due to earlier neoliberal reforms, typically try to reduce their susceptibility to international market volatility, but are usually less able to do so.

Market management mechanisms, agroecological practices, territorial markets, and cooperative trade arrangements can help ensure more stable and equitable food systems.

Stressing the urgent need for policy reform, the authors argue that recent geopolitics not only threatens crises but also offers new opportunities to reform food systems for greater equity, solidarity and sustainability.

For instance, the Hormuz crisis may spur developing economies to accelerate transitions to more renewable energy, thereby reducing their vulnerability to fossil fuel and other energy imports.

IPS UN Bureau

 

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