The World Bank is an international organization that specializes in taking care of finances by helping different countries that are developing or those that present a situation of poverty when they need support in the economy either through loans or credits.
The World Bank is an international banking organization that is responsible for providing financing, advice and research to all developing nations.
- World Bank Characteristics
- What is the role of the World Bank
- How does it work
- Organizations that make up the World Bank
- Which countries make it up
- Importance of the World Bank
World Bank Characteristics
The World Bank is one of the most important institutions in the world and currently has a total of 189 members with offices located around the world. It is characterized by helping to maintain a good global balance through representatives in the countries that are its members. Its headquarters are located in the United States , specifically in Washington DC It has a total of 12 executive directors and 12 alternates , it also has a president who is appointed by the Executive Board of the institution.
The bank originated as an extension of the International Bank for Reconstruction and Development.
Its history begins in the year of its founding, 1945 , after the end of the Second World War . It emerged as a way to lend money to countries that needed to be rebuilt. It was initially founded together with the International Monetary Fund and little by little it managed to get practically all the countries of the world to join.
What is the role of the World Bank
There are several functions that the World Bank has and all are of great importance for the development of the countries. It is an institution that gives all the necessary financial support to developing countries, even those that are already considered developed. It carries out different types of analytical studies , forms of financing , different types of guarantees that can be used, analyzes the best way in which the debt can be reduced and also looks for how to strengthen the capacity and economic activities worldwide.
One of its also important functions is its constant fight against poverty and hunger, achieving universal education , promoting gender equality and giving more power to the female sex. It analyzes different ways of being able to reduce infant mortality and the health of pregnant women , combats serious diseases such as AIDS and malaria, to name a few, and is also in charge of establishing measures to ensure good environmental sustainability , promoting the same time, a global alliance for better development.
Among its main objectives are the following:
- Promote debt relief in underdeveloped countries or countries with high poverty rates.
- Improve the information technology infrastructure .
- Expand different types of trade agreements between countries.
- Improve access to medicines by establishing accessible prices for all.
- Reduce poverty through increased spending.
- Collaborate with countries that are facing financial crises .
- Improve access to different types of world markets .
- It promotes growth in a balanced way in the international field and stabilizes the balance of payments through foreign investment, increasing productivity, quality of life and the conditions of workers.
How does it work
This bank functions as a provider of financial and technical assistance to the countries through associations that are responsible for reducing poverty rates and also supporting the development of the economy . It works by giving economic loans to governments at very low interest rates, credits without any interest rate and subsidiesto achieve a better development of personal economies. These loans are specifically given for infrastructure, public administration, health care, and for private sector development. Another important aspect of its operation is that it provides advice in terms of research, policy analysis and technical assistance to the countries.
There have been several important people who have served as the presidency of the World Bank. Among them it is worth mentioning:
- Eugene meyer
- John J. McCloy
- Eugene R. Black
- Robert McNamara
- Alden W. Clausen
- Lewis T. Preston
- James D. Wolfensohn
- Paul Wolfowitz
- Jim Yong Kim
- David Malpass, who is the current president.
The main actions of the World Bank are based on the granting of financial loans with low interest rates to be able to financially support those countries in indigent economic conditions so that they can then invest in fundamental aspects with the objective of caring for society . It plays an important role in terms of development in policies and technical assistance so that countries can improve service delivery and development.
It also participates in the design of economic or social welfare projects , improves access to information and increases the quality of project designs. It works in open development that involves the use of free tools and knowledge to better understand development challenges.
Organizations that make up the World Bank
This bank is made up of five important organizations which are:
- International Center for Settlement of Disputes : this is aimed at investors and seeks to find different and effective solutions to foreign investment in the countries.
- Investor guarantee body : its main function is to be able to invest in those countries that are considered underdeveloped.
- International financial corporation: this corporation is the one that actively participates in order to promote investment within the private sector.
- International promotion association : it is in your hands to help develop everything related to basic services.
- International Bank for Reconstruction and Development : its role is vital and important as it is responsible for finding the means to reduce poverty rates in those countries facing serious economic situations.
Which countries make it up
In total there are 190 countries that have become members of the World Bank, only countries such as Monaco, Andorra, Cuba, North Korea and Liechtenstein are not part of it.
Among the main criticisms that have been made before the World Bank, we can mention the creation of the Sardar Sarovar dam in India, a situation that caused a large number of people to be displaced to places of greater poverty , where there were none of them. basic service. In India, money has also been turned in to promote open-pit coal mining and its inhabitants had to be relocated.
Many experts indicate that the bank has interests in the most industrialized countries favoring the export of polluting and dangerous waste . According to experts, their projects make small farmers worsen their situation every day as the companies that are given money try to replace crops with industrial crops . On occasions, the bank has lent money to dictatorships where human rights are violated and many of these projects do not respect indigenous peoples either.
Importance of the World Bank
Its importance lies in the possibility it offers to less developed countries to acquire loans so that they can be used to make improvements in the local economy and society . Thanks to this institution, many places have managed to modernize and provide better services to their inhabitants, reduce poverty and improve education .