Coming to the World Bank, it is well-known that the establish­ment of that institution was more or less an afterthought. The British who were the brain behind Bretton Woods were mainly interested in the Fund, and the Bank was added on more as a temptation held out to the Soviet Union and other East European countries to join in the interest of reconstruction of their war-ravaged economies. There was hardly any thought given at that time to what might be entailed in a process of development for two-thirds of mankind

The developing world was the colonial world at that time and had little say in drawing up the Charter of the World Bank. And yet even today, after 25 years when the vast majority of the Mem­bership of the Bank -consists of countries which were never re­presented at Bretton Woods, vital and important issues are decided in the Bank Board by a reference to some ill-considered provi­sions in the Bank Charter. Thus we are told, as if it is part of some holy writ, that only project financing is proper and that non-project financing is to be undertaken only in exceptional circumstances. What is even worse, international tendering even extending to civil works and construction jobs in building roads or dams or irrigation canals is considered the corner stone of the Bank philosophy. The absurd length to which this doctrine is carried was illustrated recently when, I believe in the case of one Commonwealth country, even the construction of primary school building had to be submitted for international tendering.

Sir, I feel rather strongly on this because there is a danger that our multilateral institution will become the instrument for the pursuit of the commercial and political interests of their richer members. There is now a growing feeling that aid from multi­lateral agencies is better than bilateral aid, but if multilaterali­sation of aid results only in the pursuit of the same bilateral policies by the richer countries with the added authority of an international institution, I am not sure that we could have suc­ceeded in doing anything more than replacing King Log by King Stork.