NGOWG Letter to WBank President

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Linda K Tracy

Feb 1, 1995, 8:01:39 PM2/1/95
---------- Forwarded message ----------
Date: Wed, 1 Feb 1995 09:30:16 -0500 (EST)
From: Milt Shapiro <>

/* Written 11:29 AM Feb 1, 1995 by gn:ngowg in igc:reg.mexico */
/* ---------- "NGOWG Letter to WBank President" ---------- */
From: Marcos Arruda - Geneva, 27/1/95-

Dear friends,

This is the cover letter to Mr. L. Preston, President of the World
Bank, which presents to the Bank the publication of structural
adjustment in Mexico and the Working Paper by the NGO Working
Group on the World Bank, "The Challenge of Poverty Eradication".
The latter text can be obtained from the NGOWG (


Mr. Lewis Preston

President - The World Bank

1818 H Street NW

Washington DC 20433 - USA

Geneva, 25 January 1995

Ref.: Two NGOWG publications.

Dear Mr. Preston,

We are happy to send you and your colleagues three copies of the
publication "The Polarization of Mexican Society", A Grassroots
View of World Bank Economic Adjustment Policies", produced by
Equipo Pueblo/Mexico and Development Gap/USA, on behalf of the NGO
Working Group on the World Bank.

This is a popular version of the NGOWG study on structural
adjustment in Mexico, discussed with the World Bank in the October
1993 meeting of the NGO-World Bank Committee. It is a timely
publication, considering the recent events related to increasing
social unrest and the exchange rate crisis in Mexico.

We believe that the Mexican financial crisis is a timely
opportunity for the Bank to rethink its structural adjustment
policies. In the October 1993 meeting, NGOs and consultants
argued, among other things, that the path followed by the Mexican
economy was largely financially unsustainable (at least without
external backing such as the USA, the $ 6 billion swap loan
facility, its collateral in Treasury bonds, and now its $ 40
billion financial aid package). Again, an intervention completely
outside the realm of the market. An intervention that, in our
view, may rescue the Mexican economy and the NAFTA in the short
run, but that will not guarantee the survival of the Mexican model
in the longer run, in case its basic policies remain unchanged.
Year 1994 has shown that the model is socially dangerous, and the
current crisis may indicate that soon it may also prove
politically unsustainable. There is still some time to change
course. Will the Mexican government have the courage to do so? The
Bank can certainly help. And it can also help other countries also
to change their course, especially if we take into account that
the USA or any other country in the North probably will not be in
a position to rescue any other Southern country which may undergo
a similar crisis.

In the light of these events, we believe that it is proper for us
to point out once more the value for the Bank of its interaction
with NGOs in the context of the NGO-World Bank Committee.

We are also taking the opportunity to send you the final version
of the Working Group's Working Paper "The Challenge of Poverty
Eradication". The official Working Group paper, "The World Bank -
The Next Fifty Years: an NGO Perspective", will soon be sent to
you by the Working Group Chair Iqbal Asaria.

Warm regards and best wishes for the new year,

Marcos Arruda


. Equipo Pueblo/DGap/NGOWG - "The Polarization of Mexican Society"
- 3 copies

. NGOWG - "The Challenge of Poverty Eradication".

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