Did World Bank go wrong in banning Wipro- Software-Infotech-The Economic Times
This episode raises two sets of concerns. First, while the bank insists on holding the developing countries to the highest standards of transparency, its own actions remain shrouded in mystery. To-date, it has offered no explanation of why it took seven long years to act against Wipro. Did the World Bank rules change in the interim, which it then applied retroactively?
Or, did the bank realise one fine morning that it had failed to enforce the rules that had existed all along and then proceeded to enforce them with vengeance, turning Wipro into a sacrificial lamb? When and precisely what action did the bank take against its own staff members? Why the reluctance to reveal the timing and nature of actions and cause of departure of offending employees?
Also disturbing is the fact that the bank waited to make its decision public until a major corporate scandal in the country broke out. Judging by the comments on various newspaper websites, the bank’s press note has left the distinct impression that the Wipro leadership is cut from the same corrupt cloth as the outgoing Satyam leadership. Unsurprisingly, Wipro shares plunged 8% the following day. (via Did World Bank go wrong in banning Wipro- Software-Infotech-The Economic Times).
First, the World Bank is actually a US-Euro Club – to fool the world, with the intentions of the Bretton Woods. The world should have never accepted what the West calls the World Bank.
And second, the World Bank list of banned entities were significantly, from two sectors – Software and Pharma. These are the two sectors where the US still has a lead – and the Indians are its biggest challengers. Generic pharma firms from Indiahave become world beaters – and the Indian software companies have built up US$50 billion a year business, in less than 10 years. These 50 billion dollars have come out of US pockets.
At least, the actions against Wipro and Nestor Pharma were pathetic excuses to ban a business – and no Third Party arbiter will uphold these actions.
Third, on January 9, Standard & Poor’s announced that Greece, Spain and Ireland were on review for a possible downgrade, indicating that a Eurozone country could default.
Whats the Quicktake
These actions seem like offensive actions from the US – to undermine its competitors and to bolster US businesses. It makes me doubt about the Satyam saga. To carry the conspiracy theory thread forward, was there a Merrill Lynch-Ramlinga Raju ‘deal’?
Modern day protectionism, huh?