In October 1989, the Third World Foundation announced the institution of an annual Third World Prize of US$100,000 at the inaugural function of the foundation in London to go to the individual or group who made the year's most outstanding contribution to Third World development, especially in the economic, social, political or scientific fields.
The funding of the work of the foundation was provided by the Bank of Credit and Commerce International (BCCI) before the bank was controversially shut down in 1991.
In The BCCI Affair: A Report to the Committee on Foreign Relations United States Senate by Senator John Kerry and Senator Hank Brown December 1992 (widely known as the Senator Kerry Report) under the heading BCCI'S RELATIONSHIP WITH FOREIGN GOVERNMENTS CENTRAL BANKS, AND INTERNATIONAL ORGANIZATIONS, an allegation made reads
“BCCI would make a form of payments to high ranking officials through one of its Foundations, which would create an annual "prize," and bestow it upon a person either whom BCCI wished to influence, or whose receipt the prize would provide BCCI needed legitimacy. For example, from 1980 to 1988, a BCCI foundation called The Third World Foundation bestowed an annual Third World Prize of $100,000”.
The statement did not have the backing of any documents to corroborate that BCCI was involved in the work of the Foundation and influenced its Advisory Committee on its deliberations to bestow the award of the Third World Prizes.
Among the inconsistencies and contradictions in the Senator Kerry Report is the acknowledgment, “The Subcommittee has not obtained internal BCCI documents describing its global strategy for bribery, or any list of payments made to officials".
The Senator Kerry Report appears to have chosen to degrade BCCI's support for the Third World Foundation's initiative to institute the award of annual prizes to honour individuals and institutions and to recognise their valuable contributions for the advancement of the Third World cause. They were nominated after proper deliberations by members of the Selection Committee constituted by the Board of Trustees of the Third World Foundation.
The references in the Senator Kerry Report to the award of two prizes are glaring examples of misrepresentation and misinformation, and the motive doing so is questionable given that these were relied upon along with other allegations to justify the forced closure of BCCI. It is pertinent that the Selection Committee members were all from the Third World.
The Report stated that the 1982 Third World Prize was awarded to "Zhao Ziyang, the Chinese premier. Again, BCCI was looking to, and soon thereafter was able to, become one of the first foreign banks to open offices in China". The fact is that the Prize was awarded to the Philippines-based International Rice Research Institute (IRRI) for the excellence and relevance of its scientific contribution to the Third World in improving the productivity and production of rice and rice-based cropping systems. The Prize was presented by Zhao Ziyang at the 1983 South-South Conference held in Beijing in 1983. The decision for Zhao Ziyang to present the Prize would have been taken by the Third World Foundation who instituted the Third World Prize and not by BCCI.
On the misleading statement in the Report that soon after the 1982 Third World Prize was awarded to Zhao Ziyang, the Chinese premier, BCCI was able to become one of the first foreign banks to open offices in China, the Chinese premier was never awarded the prize, and the decision to grant BCCI permission to open a branch to conduct banking operations in China was the decision by the regulator of the banking system in China, the People's Bank of China (the country's central bank).
On left is Chinese Premier Zhao Ziyang (Left) with Dr S M Swaminathan, Director General, International Rice Research Institute (IRRI) Philippines (on right).
The Report stated that the 1987 Third World Prize was awarded to "The International Planned Parenthood Federation of India, presented by Jose Sarney, President of Brazil. In this very period, BCCI was seeking to strengthen its ties to President Sarney, and had just purchased a bank in Brazil through nominees which included close associates of Sarney." The 1987 Prize was in fact awarded to the International Planned Parenthood Federation (IPPF), a charity with its Central Office in London U.K. and financially supported by governments, trusts, and foundations. The decision for President Sarney of Brazil to present the Prize would have been taken by the Third World Foundation that instituted the Third World Prize, and not by BCCI.
The Senator Kerry Report does not also provide any facts or a proper rationale that establishes immoral intentions behind the decisions of the Third World Foundation to award any of the prizes to persons and institutions whom BCCI wished to influence or had influenced, such as Bob Geldorf, the singer-musician and social activist, Willy Brandt the former Chancellor of the Federal Republic of Germany, S. S. Ramphal the Secretary General, Commonwealth Secretariat and Nelson Mandela the South African anti-apartheid revolutionary who served as the first president of South Africa, with his wife Winnie Mandela who was a leading opponent of apartheid during the latter part of Nelson Mandela’s imprisonment.
- 1986 Third World Prize awarded to Bob Geldorf
A colonial mindset
The Report does appear to reveal the apparent colonial mentality on the treatment of people of the Third World had not gone and remained ingrained in the authors including those in the Selection Committee notwithstanding that they were persons of high standing and enjoyed an international reputation.
Primary function of the Third World Foundation
The work of the Third World Foundation revolved mainly around debating fundamental issues of global concern and examining important issues around colonialism, trade, anti-colonial consciousness and exploitation of the development, trade and environment by rich northern countries.
Noble Prize
The unfair criticism of the Third World Prize of the Third World Foundation and funded by the Bank of Credit and Commerce International (BCCI) is an example of the double standards practiced in the West in many spheres of life and work. An example is giving acceptance and prominence to the Noble Prize for Peace when it is common knowledge that the Noble Foundation and the Noble Prizes are funded from the fortune made by Alfred Bernhard Nobel, the Swedish inventor of dynamite and other explosives that he sold to the great powers. Nobel did not have the best public image, when his brother died, a French newspaper confused him with Alfred Noble and used the headline “The merchant of death is dead.” It then stated that Nobel “became rich by finding ways to kill more people faster than ever before.” The premature obituary was possibly what motivated Alfred Nobel to create the namesake prizes in order to enhance his legacy.
The award consists of a gold medal and cash sum. Many Laureates have been contemporary and highly controversial political actors, the awards have often been seen by local authorities as “interference” in national matters.
The Noble Prize committee has also been heavily criticised several times for honouring personalities who have fuelled wars and denied massacres, instead of cultivating peace around the world.