ype of Investment:

Most of the times “development” in the developing countries take place by investing a
large bulk in projects such as building dams, setting up of large international companies
and commercial complexes. There is little or no investment in primary health care, safe
drinking water and basic education. This type of investment has jeopardized the very
lives to certain categories of people and seriously harmed many people in many
different ways. The World Bank has recognized the risks involved. With regard to large
scale irrigation projects the world bank itself has recognized that :
“Social disruption is inevitable in large scale irrigation projects... Local people often find
that they have less access to water, land and vegetation resources as a result of the
projects. Conflicting demands on water resources and inequalities on distribution can
easily occur both in the project are an downstream. Altering the distribution of wealth.”
In India the Narmada dam project funded by world bank has brought up immediate
issues with the type of investment which affected the lives of over a million people from
245 villages. These issues bring the rehabilitation of displaced people, their right to
livelihood the rate of compensation given to them, proper administration of the
rehabilitation program and treatment given by the police authorizes to the tribals who
opposing the project. There are large scale violation of human rights on these
immediate issues.

Basis for Investment Decision:

Economic decision making process is being taken away from governments and put in
the hands of financial “experts”. People and governments in developing states are not
effectively involved in decisions affecting their lives. This has impact both on state
sovereignty and human rights. People are not able to exercise their right to
development because they are not afforded the opportunity to participate in decisions
concerning their development.
Decision about investment by these globalized organizations are based almost
exclusively on financial concern including generating profits for banks in the developed
states and for other transnational corporations. As such, these concerns are external to
the state in which the investment is made, and subsequently fail to focus on social
welfare within the state.
Economic decisions most of the times have severely affected the vulnerable sections in
society. With the imposing o structural adjustment programme by the IMF, which
drastically cuts down the social sectors like health, education etc thousands of people
lose their jobs as government is the largest employer in most of the developing
countries. Those who are the most affected when governments are forced to change
their priorities are usually the poor, women and agricultural workers : Many developing
countries used to provide free education until the adherence to an IMF structural
adjustment programme for e.g. Education of girls in rural China since then has become
problematic. Schools have introduced fees, and the opportunity cost of sending a girl,
who can now be earning income, to school has increased. The result is that many girls
have been compelled to drop out of school, despite the legal requirement of nine years
of education. In rural China 80 percent were girls, mostly from rural and remote
mountainous areas and from minority groups, and there are still more than twice as
many illiterate women as men.
This happens as parents tend to make gender based financial choices. This occurs
despite the clear evidence that educating a girl in a developing country is an intelligent
investment. Cut in investment in people through education, health care and other social
services will have negative repercussions for years.

Type of Economic Growth:

This relates to the impact of damaging forms of economic growth. It is that growth
“which does not translate into jobs that which is not matched by the spread of
democracy that which snuff out separate cultural identities, that which despoils the
environment and growth where most of the benefits are seized by the rich.
Damaging economic growth is where crops are planted for export to gain foreign
exchange revenue while the people are deprived of their staple diet. This happens in all
developing and poor countries.
This can undermine food security. For example, in the Philippines by a Government
decision an increasing amount is land is diverted to producing live stock and
horticultural products for exports. Those who are displaced were growing traditional
crops such as corn and rice. They are expected now to go into the expanding export
production center. This does not necessarily happen with a consequent decline in
poverty levels and marginalization of many households. In India agro business
companies are acquiring land holdings from small and marginal farmers with bigger
firms going for production of items such as coffee, tea, sugar, flowers or shrimp for the
export market. The agricultural sector instead of planning to increase domestic
production to ensure food security, has shifted to increasing trade in non - food
agricultural commodities. This may seriously affect domestic consumption needs.
This kind of damaging economic growth is contrary to the right of self determination
which provides that “in no case may people be deprived of its own means of
subsistence.”