The World Bank

What does it do?

The World Bank is a globally supported & financed institution that provides loans,
financial and technical assistance to developing countries around the planet. It is made up
of two unique development institutions owned by its 185 member states: The
International Bank for Reconstruction & Development (IRBD) and the International
Development Association (IDA). The Worlds Banks primary aims are global poverty
reduction and improving living standards, particularly among the worlds poorest & less
economically developed nations.

The IRBD aids middle income and poor but creditworthy countries. The IDA focuses
on helping the worlds poorest nations. It does this primarily through the offer of long-
term interest-free loans. Most of the financial assistance given to the worlds 81 poorest
countries is financed by the richer members of the World Bank, such as the USA, UK.
The USA is the largest contributor; hence the offices of the World Bank are based in
Washington DC. The influence that Western nations have over the World Bank, due to
their contributions, has caused some to criticize it as a neo-liberal institution to support
US & Western business interests, indeed the President of the World Bank is always an
American. Conversely the IMF is headed by a European. Despite such criticisms the
World Bank is a vital institution in the fight against global poverty. It supports countries
in need of assistance by identifying 5 key areas to encourage growth and raise living
standards.

1. The World Bank believes, stable government with an educated bureaucracy is

necessary to promote growth. The World Bank helps to support governments,
educate is officials and fight corruption which is responsible in much of the
developing world for stalling growth.

2. Infrastructure Creation: The world bank funds infrastructure projects and helps
to establish effective judicial and legal systems, where needed to encourage
foreign investment and the creation of property rights to protect the environment
and promote growth

3. Financial Systems, the World Bank aids developing countries in their creation of
robust financial systems to support business and creation of credit to encourage
domestic growth and expansion of firms.

In assistance to the worlds poorest countries, the IDA branch of the World Bank gives
grants to fight malnutrition, HIV/AIDs, and the lack of effective sanitation and or clean
water. All vital if countries are to support a healthy labour market .