WORLD BANK

Group of Members:

Atos, Erika Reign

Bayrante, Aliah
Llantos, Marygrace
INTRODUCTION

The World Bank comprises two primary institutions: The first primary is the International Bank
for Reconstruction and Development, and the second primary is the International Development
Association. The International Bank for Reconstruction and Development equips loans and
additional economic assistance to middle-income and creditworthy low-income countries. In
contrast, the IDA provides grants and interest-free loans to the poorest countries in the world.
In addition to providing financial assistance, the World Bank offers technical assistance and
advisory services to help countries develop policies and programs promoting economic growth
and poverty reduction. It includes expertise in public financial management, education and health
systems, and infrastructure development.
The World Bank is governed by a board of directors comprising representatives from the bank's
member countries. The board sets the bank's policies and approves its lending activities.
The World Bank is often criticized for its lending policies and the conditions it attaches to its
loans. Some critics argue that the bank's loans can harm the environment, exacerbate poverty,
and lead to unsustainable debt burdens for developing countries. Others argue that the bank's
policies prioritize the interests of wealthy countries over the needs of the poor.
Despite these criticisms, the World Bank remains an essential source of financing and support
for development projects worldwide. Its work is guided by the belief that sustainable economic
growth and poverty reduction are essential for creating a more peaceful, equitable, and
prosperous world.
World Bank is to promote international cooperation and coordination on development issues.
The bank works closely with other international organizations, including the United Nations, the
International Monetary Fund, and regional development banks, to align their efforts and ensure
they work together effectively. The bank also works with civil society organizations, the private
sector, and other stakeholders to engage them in development and promote collaboration
between different sectors.
World Bank's work focuses on promoting more sustainable development. The bank seeks to
promote economic growth and poverty reduction and ensure development is environmentally
sustainable and socially inclusive. The bank's programs often include measures to promote
environmental conservation, climate change mitigation and adaptation, and gender equality,
among other issues. The bank also ensures that development projects are designed and
implemented in ways that include marginalized communities, such as women, ethnic minorities,
and people with disabilities. By promoting sustainable development, the World Bank seeks to
guarantee that the benefits of economic growth are shared equitably and that future generations
are not loaded with the costs of unsustainable development practices.

HISTORY

The World Bank was based in July 1944 during the United Nations Monetary and Financial
Conference, more comprehended as the Bretton Woods Conference, held in Bretton Woods,
New Hampshire, United States. The conference was accompanied by representatives of 44
countries who gathered to discuss the reconstruction and development of the world economy
after World War II.
During the conference, it was admitted that there was a need for an international institution to
provide financial assistance to countries affected by the war and to promote economic
development in the post-war era. The World Bank was thus created as a specialized agency of
the United Nations to provide loans and technical assistance to producing countries to help their
economic development and reconstruction.
The World Bank's initial focus was on financing the reconstruction of war-torn Europe through
the International Bank for Reconstruction and Development, one of its two original institutions.
The other institution was the International Development Association, established in 1960 to
provide concessional loans and grants to the world's poorest countries.
Over the years, the World Bank has expanded its focus to address various development
challenges, including poverty reduction, education, health, infrastructure, and environmental
sustainability. Today, the World Bank Group comprises five institutions: the IBRD and IDA, the
International Finance Corporation, the Multilateral Investment Guarantee Agency, and the
International Centre for Settlement of Investment Disputes.
Overall, the World Bank has significantly promoted global economic development and reduced
poverty, particularly in developing countries. However, it has also faced criticism and
controversy over its policies and practices, including concerns over its accountability,
transparency, and the impact of its projects on local communities and the environment.
The World Bank was founded in 1944, and its primary objective was to help rebuild the
devastated economies of Europe after World War II. In 1946, the World Bank made its first loan
of $250 million to France, struggling to rebuild after the war.
From 1946 to 1967, the World Bank expanded its lending activities to include developing
countries. The Bank's initial focus was on financing large infrastructure projects, such as dams,
roads, and power plants, essential for economic development.
In 1950, the World Bank launched its International Development Association (IDA) to provide
loans and grants to the world's poorest countries. The IDA was developed to provide low-interest
loans to support these countries' economic development.
During this period, the World Bank also developed its technical assistance programs to help
member countries build the necessary institutional capacity to manage their economies
effectively. It included providing expertise in agriculture, education, and public health.
In 1960, the World Bank introduced its first structural adjustment program to help countries
address macroeconomic imbalances and increase their productivity. These programs were
controversial because they often required countries to implement unpopular economic policies,
such as reducing government spending and devaluing their currencies.
Throughout this period, the World Bank's lending activities were mainly funded by selling bonds
in international capital markets. The Bank also received contributions from member countries,
which were operated to fund technical assistance programs and grants.
The World Bank was influential in promoting economic development and reducing poverty
during this period, although its policies and programs were sometimes controversial.
From 1968-1981, the World Bank focused on lending to developing countries and supporting
economic growth and poverty reduction. However, several significant changes in the Bank's
approach and policies occurred during this period.
In 1968, Robert McNamara became the President of the World Bank. McNamara brought a new
sense of energy and urgency to the Bank's mission and introduced some reforms to increase the
efficiency and effectiveness of the institution.
One fundamental change McNamara introduced was the creation of the Poverty Reduction and
Economic Management (PREM) network within the Bank. This network provided technical
assistance and policy advice to member countries on issues such as poverty reduction, fiscal
management, and public sector reform.
Another significant change during this period was the Bank's increased focus on social
development and the role of women in development. In 1972, the Bank established the
Population, Health, and Nutrition Department to address issues related to population growth,
maternal and child health and nutrition. The Bank also began to fund projects specifically
targeting women, such as microfinance programs and initiatives to improve access to education
for girls.
The Bank's lending activities also underwent significant changes during this period. In the early
1970s, the Bank shifted its focus from large-scale infrastructure projects to more targeted
investments in agriculture, education, and health sectors. It was seen as a more effective way to
promote economic growth and poverty reduction, particularly in rural areas.
The Bank also introduced new lending instruments, such as sectoral and structural adjustment
loans, designed to provide more flexible and targeted support to member countries. Structural
adjustment loans, in particular, were controversial because they often required countries to
implement economic reforms, such as reducing government spending and liberalizing trade
policies, as a condition of receiving the loan.
Finally, during this period, the Bank emphasized environmental and social sustainability. In
1980, the Bank introduced its first environmental policy, emphasizing the need to consider the
environmental impacts of Bank-funded projects and promote sustainable development.
Overall, (1968). -1981 was a time of significant change and evolution for the World Bank. It
sought to adapt to changing global economic and social conditions and become a more effective
institution for promoting economic development and poverty reduction.
Since 1995, the World Bank has focused on promoting economic growth and poverty reduction
in developing countries while adapting to new global challenges and changing priorities.
One significant development during this period was for the adoption of the Millennium
Development Goals in 2000, which set out specific targets for reducing poverty, improving
health and education, and promoting sustainable development. The World Bank played a crucial
role in supporting the MDGs through its lending activities and policy advice to member
countries.
In 2015, the MDGs were substituted by the Sustainable Development Goals (SDGs), which set
even more ambitious targets for ending poverty and promoting sustainable development by 2030.
The World Bank has continued supporting the SDGs through lending activities and technical
assistance to member countries.
During this period, the Bank also focused on social and environmental sustainability. It
introduced new policies on social and environmental safeguards, which require that the Bank's
projects do not provoke harm to individuals or the environment, that affected communities are
consulted, and has a say in project design and implementation.
The Bank has also increasingly focused on addressing climate change and promoting sustainable
energy solutions. In 2013, it launched the Climate Change Action Plan, which includes a
commitment to provide $100 billion per year in financing for climate change mitigation and
adaptation by 2020.
Another significant change during this period was the increasing part of the personal sector in
action. The Bank has continued to work with private investors and support private sector
development in developing countries. In 2018, it launched the International Development
Finance Club, a group of 23 national and regional development banks working together to
mobilize private sector financing for sustainable development.
Finally, the Bank has also faced criticism and controversy during this period, particularly
regarding its lending policies and the impacts of its projects on local communities and the
environment. Critics have argued that the Bank's focus on economic growth and neoliberal
policies has sometimes come at the outlay of social and environmental sustainability. There have
been calls for greater accountability and transparency in the Bank's operations.
Overall, 1995-now has been a time of continued evolution and adaptation for the World Bank. It
seeks to address new global challenges and promote sustainable development in a rapidly
changing world.

OBJECTIVES
The World Bank has several objectives for reducing poverty and promoting sustainable
economic growth in developing countries. Some of the main objectives of the World Bank are:

1. To reduce poverty: One of the primary goals of the World Bank is to reduce poverty and
promote shared prosperity. The World Bank aims to achieve this by providing financial
and technical assistance to developing countries to help them improve their economic and
social conditions.

2. To promote sustainable economic growth: The World Bank promotes sustainable

economic growth in developing countries by supporting infrastructure development,
private sector investment, and economic policy reform.

3. To improve access to essential services: The World Bank aims to improve access to
essential services such as education, healthcare, and clean water and sanitation,
particularly for the most vulnerable and marginalized populations.

4. To promote good governance: The World Bank supports efforts to improve governance
and fight corruption in developing countries, as these factors are critical for sustainable
development.

5. To address climate change and environmental sustainability: The World Bank recognizes
the importance of addressing climate change and environmental sustainability in its work
and supports efforts to reduce greenhouse gas emissions, promote renewable energy, and
improve natural resource management.

 The World Bank aims to promote sustainable economic development and reduce poverty in
developing countries by supporting the most vulnerable and marginalized populations.