WORLD BANK Working for a World Free of Poverty. By: Lena Drewes. The History. Established on July 1 st , 1944 Originally known as the International Bank for Reconstruction and Development (IBRD) World Bank became the official title in 1975
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By: Lena Drewes
Reducing poverty by giving loans to developing counties with very low interest rate (0.5%)
As stated on the official World Bank website (these are also the MDG)
and decision making power)
Each may send one representative to serve as part of the World Bank
Each country provides financial contributions, known as quotas, which are based on the size of the country and its economy.
Traditionally held in Washington 2 out of 3 years, every 3rd year it is held in a different member country
The World Bank is an endless target of criticism, from both left and right wing
The World Bank has encouraged countries to integrate “into the world economy by requiring governments to open up to global trade, investment, and capital” as stated in by Ngaire Woods. The World Bank’s idea was not only to make the world a better place but to use globalization as a solution to the world’s economic challenges.
The World Bank is providing the necessary money for many developing counties to set up businesses and improve their overall living conditions. As shown in the examples on the previous slide the living conditions have been so dramatically improved that life expectancy has risen by 20 years in some countries. These living conditions may be those of the outsourced workers and the people working for large corporations in the United States or other developed countries.
As said on the YouThink! website of the World Bank, “Some economists have described globalization as a fast train for which the countries need to "build a platform" to get on. This platform is really about creating a foundation to make sure the country functions well. It includes property rights and rule of law, basic education and health for the people, and reliable infrastructure (such as ports, roads, and customs administration).” They went on to say, “International organizations, such as the World Bank, bilateral aid agencies and nongovernmental organizations, work with developing countries to establish this foundation to help them prepare for global integration.”
In summary, the World Bank is using its influences and money to help the developing countries begin to integrate into the globalized world. The World Bank is working to give these countries a fair chance at becoming more developed by improving basic living conditions, therefore increasing life expectancy and enabling more people to get an education so that they can be knowledgeable about their own lives and the future of their countries, and maybe even have a part in the development of the country into a large contributor to the worlds trading and exchange market.
The World Bank creates interdependence between the developed and developing countries by enabling an access path between them. Using the funds/quotas from the developed countries, the World Bank lends money to the developing countries with very little interest. This allows the developing countries to improve their living and working conditions, which makes more efficient work possible. However, the World Bank gets to decide which project will get funding and since the fund givers/ rich and influential member countries have a say in this process, the chosen projects often end up benefiting the developed countries by needing Northern technology and knowledge in order to be successful. This can result in the World Bank controlling what the developing countries do and need. However, this opens markets for the member countries to invest in, and it improves the lives of those in the developing world so it benefits both sides. Also with the new funds, the developing countries can begin to produce more exports of their own and these can then be bought by the developed world, for a probably cheaper price than if the products were made in the developed countries Although the rich and poor countries do need each other since the poor need money for better living conditions and education and the rich need the poor countries for production and investments, the problem is that the World Bank can also create more of a dependency, and the World Bank may gain more influence over the world economy by choosing only what they think is worth funding.