Crime and Disbursement

Episode #360: “To have my daughter summarily decide that I was complicit in genocide, I really had to think through again my logic for taking the position that we should stay. It sent me on a lot of soul searching,” confesses Ellen Goldstein, a former World Bank Country Director for Myanmar. This revelation, a central theme to her book “Damned If You Do”, encapsulates the dilemmas she faced during Myanmar's tumultuous democratic transition and the Rohingya crisis.

Goldstein's decades-long career, dedicated to poverty reduction, led her to Myanmar in 2017. Initially, the World Bank’s aid program brought economic reforms and growth. Yet, she quickly recognized that this prosperity masked deeper systemic issues, not reaching ethnic minorities in remote regions facing “exclusion, discrimination and abuse of civil liberties and human rights.” This exposed a fundamental flaw in the traditional development model, which often overlooked the political and systemic dimensions of poverty.

A critical juncture arrived in 2017 when the military's atrocities against the Rohingya escalated. Despite a pre-approved $200 million grant to the civilian government, Goldstein faced an agonizing moral choice: disburse the funds and risk complicity, or withhold them. She chose the latter. This controversial decision, though ultimately costing her job, became a catalyst for change. And so instead of withdrawing, as some advocated for at the time, the World Bank “stayed engaged but focused on other things, such as social inclusion in conflict areas, specifically for deprived ethnic minorities.”

This strategic pivot influenced a new World Bank approach for fragile states: “to never disengage but to try to engage in ways that could drive forward the right values.” Considering this shift, Goldstein advocates for moving beyond state-centric foreign aid and supporting non-state and resistance actors in Myanmar, showing how dedicated individuals can continue to create new pathways for justice and human well-being amidst tragedy.