NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, April 28, 2016

By Andrew Rice:

In a shantytown perched in the hilly outskirts of Lima, Peru, people were dying. It was 1994, and thousands of squatters — many of them rural migrants who had fled from their country’s Maoist guerrilla insurgency — were crammed into unventilated hovels, living without basic sanitation. They faced outbreaks of cholera and other infectious diseases, but a government austerity program, which had slashed subsidized health care, forced many residents to forgo medical treatment they couldn’t afford. When food ran short, they formed ad hoc collectives to stave off starvation.

A Catholic priest ministering to a parish in the slum went looking for help, and he found it in Jim Yong Kim, an idealistic Korean-American physician and anthropologist. In his mid-30s and a recent graduate of Harvard Medical School, Kim had helped found Partners in Health, a scrappy nonprofit organization whose mission was to bring modern medicine to the world’s poor. The priest had been involved with the group in Boston, its home base, before serving in Peru, and he asked Kim to help him set up a clinic to aid his flock. No sooner had Kim arrived in Lima, however, than the priest contracted a drug-resistant form of tuberculosis and died.

Kim was devastated, and he thought he knew what to blame: the World Bank. Like many debt-ridden nations, Peru was going through “structural adjustment,” a period of lender-mandated inflation controls, privatizations, and government cutbacks. President Alberto Fujimori had enacted strict policies, known collectively as “Fujishock,” that made him a darling of neoliberal economists. But Kim saw
calamitous trickle-down effects, including the tuberculosis epidemic that had claimed his friend and threatened to spread through the parish.

So Kim helped organize a conference in Lima that was staged like a teach-in. Hundreds of shantytown residents met development experts and vented their anger with the World Bank. “We talked about the privatization of everything: profits and also suffering,” Kim recalls. “The argument we were trying to make is that investment in human beings should not be cast aside in the name of GDP growth.” Over the next half decade, Kim would become a vociferous critic of the World Bank, even calling for its abolition. In a 2000 book, Dying for Growth, he was lead author of an essay attacking the “capriciousness” of international development policies. The “penalties for failure,” Kim concluded, “have been borne by the poor, the infirm, and the vulnerable in poor countries that accepted the experts’ designs.”