Steve Berkman Interview

An interview with Steve Berkman a former World Bank staffer and contributor to A Game As Old As Empire: The Secret World of Economic Hit Men and the Web of Global Corruption. In his essay, "The World Bank and the $100 Billion Question," Berkman explains how the World Bank has pushed a debt-based development strategy for Third World countries for decades. Hundreds of billions in loans were supposed to bring progress, yet the programs have never lived up to their promise. Instead, governing elites amass obscene fortunes while the poor shoulder the burden of paying off the debts. Berkman presents an inside investigator’s account of how these schemes work to divert development money into the pockets of corrupt elites and their First World partners. Berkman joined the World Bank’s Africa Region Group in 1983. Hired to provide advice and assistance on capacity-building components for Bank-funded projects, he worked in twenty-one countries. Within a few years, he realized that the Bank’s approach to economic development was a failure, but his attempts to convince management of the extent of the problem went unheeded until the arrival of President James Wolfensohn in 1995. Retiring in that same year, he was called back to the Bank from 1998 to 2002 to help establish the Anti-Corruption and Fraud Investigation Unit and was a lead investigator on a number of cases. Since 2002 he has provided assistance to the U.S. Senate Committee on Foreign Relations on legislation calling for reform of the multilateral development banks and Senate consideration of the United Nations Convention Against Corruption. He is currently finishing a manuscript on the World Bank that provides an inside look at the Bank’s management, its lending operations, and the theft of billions of dollars from its lending portfolio. Recorded July 3, 2007