What is the World Bank?

The World Bank is an international financial institution that provides financial and technical assistance to developing countries for development projects (such as infrastructure, education, healthcare, etc.) with the goal of reducing poverty and improving living standards.

How Does the World Bank Operate?

The World Bank is made up of two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD provides loans to middle-income and creditworthy low-income countries, while the IDA provides interest-free loans and grants to the world’s poorest countries.

Key Functions of the World Bank

1. Providing financial assistance for development projects

2. Conducting research and analysis on global economic trends and issues

3. Offering policy advice and technical assistance to developing countries

Criticism of the World Bank

While the World Bank plays a crucial role in funding development projects in developing countries, it has faced criticism for various reasons, including allegations of promoting policies that prioritize economic growth over social welfare, imposing harsh conditions on loan recipients, and lack of transparency and accountability.

Conclusion

The World Bank is an important international financial institution that works towards reducing poverty and promoting sustainable development in developing countries. While it has faced criticism, its efforts have made a significant impact on improving the lives of millions of people around the world.