World Bank

Introduction2

Discussion2

Objectives2

Major Developmental Programs3

Impact on Economies3

Unending cycles4

Conditions and Reforms (SAP)4

Conclusion6

References7

World Bank

Introduction

World Bank was developed in December 1945 during the conference of United Nations on monetary and financial needs. The conference was held in Breton Woods at the New Hampshire. The bank was previously known as the International Bank of Reconstruction and Development. Headquarters of World Bank is located in Washington D.C. There are local offices of the Bank in 124 member countries. At present, the number of members of this international agency is 184.

In order to achieve the mentioned objectives, the Bank focuses on promoting an environment that encourages investments, sustainable growth and employment opportunities. All these factors aim to grow the economy by involving the poor people in the investment process (Moore, 2005). It also empowers the residents of the country that wishes to achieve economic development.

The purpose of this assignment is to discuss the role of World Bank towards the economies of the member countries. It also considers the objectives of World Bank and its alignment with the structural adjustment programs.

Discussion

Objectives

The main objective of World Bank is to work to eliminate the poverty from the world. It has five international organizations working for the same cause. The major concern of these divisions is to provide finance to the countries that are suffering from poverty and want to achieve economic development. These divisions also give advices to the member countries in order to encourage and safeguard them for international investment. The Bank focuses on the less developed and developing countries in offering its financial services (Bello, 2008).

Major Developmental Programs

The Bank serves to bring sustainable economic growth in the following fields as the main focus:

Human development

Rural development

Protection of environment

Infrastructure development

Governance

Human development includes provision of basic facilities including health, shelter and education. The rural development emphasizes on the agricultural development including irrigation and rural services (Oxfam, 2007). Environmental protection includes the efforts of establishment of regulations, reduction of pollution and enforcement of environmental policies. Infrastructural developmental programs work towards the construction of roads, stabilization of electricity and regeneration of urban regions. The developmental programs that work towards the governance is anti-corruption and development of legal institutions (Theodore, 2010). According to the statistics of 2005 provided by the official website of World Bank, Bank has provided financial help to 20.4 billion dollar USD and was involved in 245 projects. The Bank carried out 1800 developmental projects in member developing countries.

Impact on Economies

Developing countries are the primary group that experience economic and financial instabilities at the time of crises. This was witnessed in early 1980s and in 1990s. The debt crises that these developing countries face at the times of crises force them to borrow extensively from the creditors and institutions like World Bank. The funds are required in order to keep the economies running. The purpose of World Bank in providing the loans is to finance the developmental projects that can generate more income for the developing country. This will make the economies flourish and the country dependence on the foreign ...