The role of the World Bank in world affairs

The World Bank is an international finance agency established by the United Nations, providing loans, grants, and other forms of aid to developing and low income countries. The World Bank is actually a name for two organizations which often work in coordination, the International Bank of Reconstruction and Development and the International Development Association.

The stated goal of the World Bank is to alleviate poverty in an environmentally sustainable and economically sound manner. This is accomplished through a mix of loans and grants which fund development projects and social welfare programs ranging from building factories and schools to providing vaccinations, and even assisting in the repayment of debt.

The World Bank’s role in the international economy has evolved over time, responding to changing economic contexts both internally and externally. Currently, the World Bank exists as an organization which provides financial assistance to nations which may not have access to other forms of credit.

In doing so the IBRD and IDA are able to assist those nations which are the most impoverished. The World Bank’s increasing emphasis on environmentally sustainable development is significant in ensuring that economic growth is not gained at the expense of the local environment.

I will more clearly explain the role of the World Bank in world affairs, discussing how its past efforts have shaped its current outlook on the most effective and efficient ways to provide aid to those countries most in need.

The World Bank first provided loans for reconstruction and other development programs in the wake of World War II. The bank staff started giving loans to European countries, first France. France agreed to strict oversight over the spending of funds provided by the World Bank and the French government prioritized debt repayment to the World Bank over debt owed to other nations or organizations. After the Marshall plan, many European countries received aids from the United States and thus the World Bank became less necessary in the region.

The World Bank instead began to focus more on the non-European countries and they started giving loans to countries to finance development projects which generate income, making it easier for countries to pay back their loans. In the period between 1968 and 1980 the World Bank focused more on poverty alleviation, focusing on the basic social needs of the citizenry. During this period, the number of loans increased dramatically, and many developing nations became overwhelmed by their debts to World Bank.

While Robert McNamara was the president of the World Bank, he shifted the focus of the World Bank policy and focused more on improving the literacy rates and the agricultural reform. He also started new procedures to fasten the process of collecting information from borrower nations.

During this period, many public protests caused a shift the priorities of the World Bank. The World Bank main priorities are poverty alleviation and focus more specific on the sustainable development programs which can improve the lives of the third world citizens.

Since new the turn of the new millennium, the World Bank focused more on achieving the Millennium Development Goals (MDGs) that were made by the U.N. In other words, the World Bank focused primarily on the middle income counties to give those loans with low interest rates so they can start working on developing their infrastructure and other basic needs for their citizens.

At the same time, The IDA provides loans with low interest or grants to poor and low income countries because they can not afford paying them back. Moreover, IBRD is a non-profit market that can help those countries to by their high credit rating.

The World Bank’s mission is to deliver aids to poor, low, and middle income countries so that they can achieve increased development while providing social programs to those suffering from the worst poverty.

The achievement of MDGs helps those countries to develop an investment environment for the international market and this would help to push their economies. This would provide jobs for many people and sustainable growth. Investments loans and development policy loans are the two types of loans provided by the World Bank. They are for the social and economic development projects.

In conclusion, the World Bank is now moving towards achieving most of the MDGs and they are changing and developing the economies for these countries so that they can stand on their own on the international level.

The World Bank’s role in the international economy has evolved over time, responding to changing economic contexts both internally and externally. The World Bank’s increasing emphasis on environmentally sustainable development is significant in ensuring that economic growth is not gained at the expense of the local environment. The World Bank focused primarily on the middle income counties to give those loans with low interest rates so they can start working on developing their infrastructure and other basic needs for their citizens

To dig more about this issue

World Bank


International bank for reconstruction and development


International Development Association


United Nations Millennium Development Goals