The Pros And Cons Of The World Bank

The World Bank, created in 1944, was made to provide assistance to poverty-stricken or financially unstable countries around the world. Although it originated as an amazing idea, today the World Bank sometimes causes more harm than benefit in the countries that it intends to assist ("International Monetary Fund and World Bank," n.d.). One example of this is the Chixoy Power Project the World Bank funded in Guatemala. In 1978, the project was started " with the intent of “bringing development” to Guatemala" (Russell, 2015). However, this project leads to one of the most horrific genocides in Guatemalan history.

I do not believe that it is possible for the World Bank to assist nations with fair loans since the government entity were the previous colonial masters to nations receiving these loans. This is also reinforced by the fact of few actual examples of these loan programs aiding bowering nations. Loan programs provided by the World Bank give predatory nations access to a countries internal economy and the ability to structure to that it benefits their global interests. The word predatory has been used several times in this paper to describe the World Bank but with the largest donors being countries like the United States, France, and Germany, where capitalism is the doctrine can that be disputed? How are to expect these countries to not to capitalize and further their financial interests when history and geopolitics show this to be the

Some international development banks have been blamed for imposing policies that ultimately destabilize the economies of recipient countries.

The World Bank is known to fund many infrastructure projects in developing countries, presumably as a means to achieve their goals of increasing development in those countries. Hydroelectric dams are some of the much-maligned infrastructure projects funded by the World Bank. In a report authored by employees of the World Bank itself, the authors themselves highlight the “adverse environmental and related social impacts” of large dams, while attempting to draw a distinction between “relatively good dams and bad dams”. (Ledec & Quintero, 2003)

During the 1980s, the bank emphasized lending to service Third-World debt, and structural adjustment policies

During, and in the years after the World War 2, there was a significant need of financial aid, especially in Europe. The structural US were almost untouched, and their economy was rising. Soon they became the new superpower. At a conference held in Bretton Woods, New Hampshire, in 1944, the World Bank (WB) was founded for purposes of reconstruction in Europe. The head office was placed in Washington, and the bank president was American. When the economic situation in Europe stabilized, the WB shifted its focus. The WB evolved from being a postwar lender in Europe, into one of the most influential financial institution today, because of its funding in the development world on different continents. This text will deal with the World Bank,

Critics of neocolonialism portray the choice to grant or to refuse granting loans (particularly those financing otherwise unpayable Third World debt), especially by international financial institutions such as the International Monetary Fund, and the World Bank, as a decisive form of control. They argue that in order to qualify for these loans (as well as other forms of economic aid), weaker nations are forced to take steps (structural adjustments) favourable to the financial interests of the IMF/WB, but detrimental to their own economies and often safety, increasing rather than alleviating their poverty.

The World Bank, created after World War II by the superpowers, is supposed to be an anti-poverty bank. The idea behind it was to help people out of poverty, through projects, and give them an economic opportunity. The projects were mainly concentrated on less developed areas in developing countries, where the World Bank provides loans for capital programs. The World Bank Group states their mission as to end extreme poverty within a generation and boost shared prosperity. After 71 years today, more than 60% of the African population depend on land for subsistence (FAO, 2015), the most it has ever been. This puts into question why these world problems not only remain, but increase. Poverty is persisting around the globe, and African countries are among the lowest ranked in Gross Domestic Product per capita. Despite the mission of ending poverty, a new report showed the worldwide destructive legacy of World Bank projects (Prupis, 2015).

Since the World Bank’s inception, it has changed from an organization dedicated to wartime recovery to one focused on a variety of projects, including HIV/AIDS treatment, environmental protection, and other methods of to improve quality of life. However, its growth as an international organization has not been without controversy. There have been criticisms regarding its leadership and its practice of loan giving. While the public face of this institution says it is dedicated to improving the quality of life of the impoverished, its actions run counter and have even resulted in economic, social, and environmental degradation. Instead, the World Bank has become another politicized tool for powerful countries to exert its influence on other countries. The World Bank has changed for the worst in its mission to improve international quality of life; however, this can be rectified by increased cooperation between the World Bank and loan acceptors.

The World Bank is an international organization that strives to work with countries to end poverty and increase global economic growth. Created in 1944 they have locations in five countries, each managed by their host country and are headquarter in Washington, DC. With over 10,000 employees the World Bank supplies countries with the tools needed to progress and sustain.

World Bank’s influence is expanding due to the enormity of the challenges it is facing. Challenges of the modern world in most cases cannot be handled by single state or institution (W.Scharpf, 1994). Issues of climate change or poverty will not be limited by

The World Bank and IMF were created with the aim of promoting development through financial assistance and to work on poverty reduction. Since its creation in 1941 the World Bank has loaned and supported many projects around the world and empowers local communities to support them (Levin Institute, 2017) . According to the World Bank data, the bank has committed to lend or has given 338 billion dollars between 2004 to 2013 (Chavkin, 2017). However, despite its economic support the bank is blamed for displacement and death of millions. One investigation on the World Bank funded projects show that more than 3.4 million people were displaced over the past decade. (NPR, 2015) . One of the World Bank supported project that forced 70,000 indigenous people was the forced villagization in Gambella, Ethiopia (Human Rights Watch, 2012). The government called the eviction the “ Commune Center Development Plan and Livelihood Strategy’ and asserted that it planed the program in order to bring the scattered rural population together with the aim of providing them health centers and other public services closer to the area (Epstein, 2013). However, it was found out that the government relocated the population in order to give their fertile land to foreign investors (ibid).

The report, titled ‘How the World Bank breaks its promise to protect the poor’, says the

Critics of the World Bank and IMF have argued that policies implemented by African Countries, intended to control inflation and generate foreign exchange to help pay off the IMF debts, often result in increased unemployment, poverty and economic polarization thereby impeding sustainable development.

individuals so that the long term interest of the country would be exposed to external danger. On the other hand, critics argued that prohibition against private ownership of land is a serious limitation on the freedom of citizens. It was supposed to be left for personal decision of individuals and families who have the right of possession and ownership of land. This position seems to win the support of international institutions such as the World Bank and International Monitory Fund (IMF) (Dessalegn, 2011).