World Bank

According to the World Bank website:

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the common sense. We are made up of two unique development institutions owned by 184 member countries; the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role in our mission of global poverty reduction and the improvement of living standards. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together we provide low-interest loans, interest-free credit and grants to developing countries for education, health, infrastructure, communications and many other purposes.

The Bank says it aims to help governments in developing countries to reduce poverty by providing them with money and the technical expertise they require for a wide range of projects, including education, health, infrastructure, communications, government reforms and many other purposes. An independent panel was created in 1993 to certify that the World Bank’s operations remained true to their outlined operational polices and procedures.

History

The origins of the World Bank can be traced back to the era of the Second World War as a consequence of the UN Monetary and Financial Conference at Bretton Woods, New Hampshire in 1944. According to a book on globalisation by the American economist Joseph Stiglitz, the World Bank evolved from the International Bank for Reconstruction and Development as "part of a concentrated effort to finance the rebuilding of Europe after the devastation of World War II and to save the World from future economic depressions".

The economist Robert Olivier writes, "their major objective was to provide a world within which competitive market forces would operate freely, unhampered by government interference, for they supposed that market forces would produce optimum results for the entire world".

According to an article for The Age,

Since its inception, the World Bank has lent and given grants and credits worth $400 billion which is spent on specific projects such as freeways and dams.

Criticism

The World Bank has been heavily criticised about its operations in developing countries. Critics believe that the World Bank was formed not to fight poverty but to provide a front to fund US business interests, and argue that since the bank's existence, worldwide poverty has increased.

An editorial in The Ecologist argues:

That this is so should come as little surprise. The World Bank, IMF and WTO were not created with poverty alleviation primarily in mind. They were designed at the United Nations Monetary and Financial Conference at Bretton Woods, New Hampshire, in July 1944, to fulfil quite another agenda. To cite Henry Morgenthau, then US Treasury Secretary and president of the conference, the purpose was, "the creation of a dynamic world economy," to sustain the domestic American economy's continuous expansion by ensuring it sufficient access to foreign markets and raw materials.

People

President: Paul Wolfowitz

World Bank

The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Affiliates

• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency
• International Centre for Settlement of Investment Disputes (ICSID)

Contact

Website: http://www.worldbank.org