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The Agreement Which Created The World Bank

In the midst of the global fight against the COVID 19 pandemic, the World Bank announced in September 2020 a $12 billion plan to provide a vaccine to “low- and middle-income countries” as soon as it was approved. The plan is expected to affect more than two billion people worldwide. McNamara was replaced in 1980 by U.S. President Jimmy Carter`s candidate, Alden W. Clausen. [16] [17] Clausen replaced many of McNamara`s staff and created another centre of gravity. His 1982 decision to replace the bank`s chief economist, Hollis B. Chenery, with Anne Krueger was an example of this new focus. Krueger was known for his criticism of development finance and for calling Third World governments “rent-seeking states.” Each organization of the World Bank Group operates according to procedures established by its contractual provisions or by an equivalent government document. These documents describe the terms of membership and the general principles of organization, management and operations. To promote global public goods, the World Bank is working to combat communicable diseases such as malaria, provide vaccines in several parts of the world and join combat troops. In 2000, the bank announced a “war on AIDS” and in 2011 the Bank joined the “Stop TB” partnership. [19] The World Bank Group (WBG) is a family of five international organizations that provide loans outside developing countries.

It is the world`s largest and best-known development bank and an observer of the United Nations Development Group. [6] The bank is headquartered in Washington, D.C. in the United States. In fiscal 2014, it provided approximately $61 billion in loans and assistance to “developing and transition countries.” [7] The Bank`s stated mission is to achieve both objectives: ending extreme poverty and building shared prosperity. [7] In 2015, financing for development policy amounted to some USD 117 billion. [8] Its five organizations are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). The first two are sometimes collectively called the World Bank. The World Bank has long been criticized by non-governmental organizations such as the indigenous group Survival International and scientists such as Henry Hazlitt, Ludwig von Mises and its former chief economist Joseph Stiglitz. [69] [70] [71] Henry Hazlitt argued that the World Bank, with the monetary system in which it was designed, would promote global inflation and “a world where international trade is dominated by the state” if supported. [72] Stiglitz argued that the Bank`s so-called market reform policy is often detrimental to economic development if it is poorly implemented, too quickly (“shock therapy”), in the wrong order or in weak and uncompetitive economies.

[70] [73] Similarly, Carmine Guerriero notes that these reforms have established regulatory institutions in developing countries that are typical of the common law legal tradition because they are allegedly more effective according to the theory of legal origin.