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What is the World Bank's goal and what do they do for under-developed and developing...

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channing97 | (Level 1) Valedictorian

Posted October 15, 2012 at 3:59 PM via web

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What is the World Bank's goal and what do they do for under-developed and developing countries?

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belarafon | High School Teacher | (Level 2) Educator Emeritus

Posted October 16, 2012 at 7:38 PM (Answer #1)

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The World Bank is an international organization with the purpose of reducing and fighting poverty around the world. Its main function is to provide loans to countries in need, and to contribute a portion of its yearly donations to humanitarian aid. Through their loan projects, several countries have been saved from economic collapse, with the express intent of helping those countries raise their living standards above the international poverty line. They also work with richer countries, private organizations, and private individuals to negotiate and trade charity and aid planning. Their intent for developing countries is to help the established infrastructure move to a high standard of living, and a more stable economy.

The World Bank has been criticised for various reasons. Between 1980 and the current day, the World Bank has been reforming and reorganizing to make their operations more efficient and to eliminate various areas of failure, fraud, and alleged corruption. Since its management is run by a smaller group of financially-stable or prosperous countries, it has been argued that the concerns of those countries overwhelm the concerns of smaller and poorer countries. There is also evidence showing that the World Bank's financial loans and operations are not actually working to help poor countries grow, instead often destabilizing their economies or causing them to become entirely dependent on the World Bank and other charity organizations. These criticism are being examined both legally and in public opinion.

 

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truthseekah | (Level 1) Salutatorian

Posted October 16, 2012 at 4:10 PM (Answer #2)

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As time goes by, it becomes increasingly evident that the World Bank's goal has become (or maybe was always was) malevolent toward third world countries.  The World Bank has systematically taken third world countries and crippled their economies, raped their environments and oppress their people.  The goal, as it seems, is to maximize the transfer of resources to the third world governments.

Aid most often fails because lending goes to governments, not to individuals. The governments are often, through their destructive economic policies, the cause of the economic problems that the aid wishes to rectify. International aid is a subsidy to bad economic policies and a bloated public sector. It succeeds, most often, in extending and prolonging bureaucratic control over the poor of the third world. Governments who would have been forced to change or collapse have been kept afloat by loans from the World Bank or the IMF and allowed to continue their destructive policies. This is something like an international welfare program, not for the poor of the third world, but for their governments. Much aid has been wasted in poorly planned, ill-administered projects of little benefit-such as crop-storage depots built where peasants never go, or funds allotted to buy a profitable private bus line in India and turn it into a money-losing public enterprise. Billions of dollars, collected from middle-class taxpayers of the West, have “aided” Third World elites to possess grand estates, private zoos, classic car collections, and Swiss bank accounts.

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