Role of World Bank

Role of World Bank

Introduction

The World Bank is a financial institution which provides loans to all the developing nations for their development and capital programs. The primary objective of World Bank is to reduce poverty and to enable the developing nations to prosper. The World Bank should stay committed and focused to provide foreign and capital investment and trade to nations all across the globe. World Bank also helps in creating a systematic infrastructure in the developing nations. It also helps the developing nations in creating an adequate financial system and also implements a proper legal system which will further promote system in developing nations.

Thesis statement

The policies and financial programs of World Bank have a positive impact on the nation state and their development.



Discussion

Historical evolution

The World Bank is one of the major institutions which were created in the year 1944 at the Bretton woods conference. Since its inception till the year 1965, the World Bank used to concentrate on low level lending. The management of the bank used to provide loans for the purpose of reconstruction and development to developing nations. Since the year 1968, the bank also made strategies to meet the needs of people of developing countries. Therefore, the size and the number of loans to borrowers increased tremendously since their targets shifted from infrastructure to other sectors of social services. Since 1989, many people criticized World Bank policies. After criticism World Bank transformed its policy and incorporated many environmental groups and NGOs. Since then World Bank has taken up many policies in order to maintain and sustain development.

World Bank and nation state

Nation states are states in the global world which have their own individual identity and political legitimacy. The nation states have their own political and geographical entity and have a similar ...