The World Bank was formally established on December 27,following the ratification of the Breton Woods agreement. Two years later, the Bank issued its first, and largest, loan:
The International Monetary Fundis another one. Many countries sent people to attend the Bretton Woods Conference. The most powerful countries with people there were the United States and United Kingdomwhich controlled most of the negotiations. Careful screening of loan applications was common.
The bank wanted to provide loans for reconstruction and development, but if they lent out too much, there would be less trust in the bank. There were very strict rules about the use of the funds. Bank staff made sure that the French government would have a balanced budget and pay back what it owed to the World Bank first before it paid back other countries.
To get the loan, the French government removed the Communist coalition government.
The loan to France was given very quickly after that. Untilloans were used mainly to pay for projects that would help the country pay it back such projects as portshighway systems, and power plants.
The amount of money being loaned out grew bigger, and more loans were given. This was because the loans were not just given for infrastructure, but also for social services and other things. These changes were made by Robert McNamara who became the president in McNamara started a new system of gathering information from nations applying for loans.
This helped the bank to process loan applications much faster. To give out more loans, McNamara told bank treasurer Eugene Rotberg to find new sources of money, because the northern banks that had lent out the money did not have enough. Rotberg used the bond market to increase the amount of money that the bank could lend.
Environmental groups and NGOs were also lent money, to help fix the things that the people were complaining about. The World Bank headquarters in Washington, D.
This means lending mainly to countries that are not very poor, at interest rates which are a little bit higher than the ones it borrows at. The IDA provides low or no interest loans and grants to the poorest countries.
They will also meet the MDGs by helping countries to become good places for investment, jobs and sustainable growth. This it is postulated will help the country's economic growth through investment and help the poor to share the results of economic growth.
The World Bank says that there are five key factors necessary for economic growth: Making governments stronger and more educated.
Making laws to encourage business, and protect individual and property rights. Development of Financial Systems: Starting strong systems that can lend and borrow in many different situations. Stopping corruption in governments.
Research, Consultancy and Training: The World Bank looks very carefully at local groups of people, and the needs of the country, to develop a strategy that works best for that country. The government then says what it will do to help stop poverty, and the World Bank works with it.
While richer nations sometimes pay for their own aid projects, Robert B. Zoellick, the president of the World Bank, said when the gifts were announced on December 15,that World Bank money "is the core funding that the poorest developing countries rely on".
He is responsible for chairing the meetings of the Boards of Directors and for running the Bank.World Bank Essay - How Does Climate Change Affect Us?
Words | 14 Pages. part of the year was the flood season. Groups of people, helpful volunteers gathered, and started to build an obstacle on the two sides of the river, to prevent the frightening mass of water flowing, and drowning the city.
The World Bank Group works in every major area of development. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Words Essay on World Bank The World Bank is one of the three Breton Wood Institutions which were created in to rebuild the destroyed Europe after World War II.
Later, after the economic revival of Europe, the World Bank's activities became focused on developing countries. By financing infrastructure projects, poverty should be reduced. 1 The World Bank was founded to address what we would today call imperfections in international capital markets.
Its founders thought that countries would borrow from the Bank.
Essay # 2. The International Bank for Reconstruction and Development. The International Bank for Reconstruction and Development (IBRD) is the oldest of the World Bank Group institutions established in to help Europe recover from the .
The World Bank was formally established on December 27, , following the ratification of the Breton Woods agreement. The concept was originally conceived in July at the United Nations Words Essay on World Bank.