THE ROLE OF WORLD BANK IN INTERNATIONAL ECONOMIC RELATIONS



FACULTY:               ART AND HUMANITY
DEPARTMENT:     HISTORY AND INTERNATIONAL RELATIONS
COURSE CODE:    HIR 305
COURSE TITLE:   INTERNATIONAL ECONOMIC RELATIONS
                                                                                                                                     
            The advent of World Bank was occasioned by the propensity to restore global peace following the collapse of the Second World War in 1944.
            The World Bank is a United Nations International Financial Institution that provides loans to developing countries for capital programs.

            The World Bank is a component of the World Bank group, and a member of the United Nations Development Group. The World Bank was created at the 1944 Bretton wood conference, along with three other institutions including the International Monetary Fund (IMF). The World Bank and the IMF are both based in Washington D.C, and work closely with each other.
            The world hope was dashed when the expected peace became a mirage and as the international community were still nursing the pains and injuries inflicted on her by the first world war of 1918.
            In a bide or an attempt to recover the vandalized destinies and the world ravaged economics, an attempt was therefore made to reposition the countries whose economics were badly battered.
            Consequently, the outcome of the post war international monetary conference held in Bretton Woods, New Hampshire, in USA in July 1944 conceived the idea for IMF formation.
            Finally, the International Monetary Fund (IMF) which metamorphosed into International Bank for Reconstruction and Development – World Bank was birthed in 1945. it subsequently commenced operation in 1947 with head quarters in Washington D.C., USA.
            The roles of the World Bank inter-alia include the following:
1.         The advancement of prospects for world peace.
2.         As a United Nations International financial institution, it provides loans     to developing countries for capital programs such as railroads, highways,          bridges, ports and recreational outfits etc
3.         As a component of World Bank that doubles as a member of United             Nations Group, there is the expansion of international franchising for    global business growth.
4.         With the established of the Administrative tribunal in 1980, the World        Bank became well positioned to adjudicate for world total peace.
5.         There was also the emphasis of the bank lending policies to service the third world debts and structural adjustment programmes designed to streamline the economics of the developing nations.
6.         The birth of the World Bank became an antidote in curbing the power – drunk of the leftists in Western Europe.
7.         It also to a very large extent promoted capitalist policies and strengthened the power of the corporate sectors.
8.         Another fundamental role of the World Bank is to smooth world commerce by reducing foreign exchange restrictions – tariffs, import duties and using its reserve of funds to lend to countries experiencing temporary balance of payments challenges to that international marketing can continue without interruption.
            Many European countries began receiving aid from other sources faced with this completion; the World Bank shifted its focus to non-European Countries. Until 1968, its loans were earmarked for the contracture, such as seaports, highway system, and power plants that world generate enough income to enable a borrowed country to repay the loan.
            World Bank Organizes Developments Market Place Awards which is a competitive grant program that surfaces and funds innovation, development projects with high potential for development impact that are scalable and / aor replicable
            The World Bank has been assigned temporary management responsibility of the Clean Technology Fund (CTF) focused on marking renewable energy cost – competitive with coal – fired power is quickly as possible, but this may not continue after UN’S Copenhagen climate change conference in December 2009, because of the Bank’s continued Investment in coal fired power plant.
            The World Bank collects and processes large amounts of data and generates them on the basis of economic models.
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