Module: VI – International Development Assistance
Name of course: Multilateral Development Banks and the Private Sector
Rome, April, 2011
Part I: General
Having in mind that the key mission of The World Bank (WB) is overcoming poverty and boosting economic growth in developing countries, the core question is whether this clear objective have lost its true meaning during the way.
By looking at the WB lending activities it is evident that those had constant increase in past five fiscal years, even during last financial crisis, and even reached a record in 2009. This means that the role of WB during this period was significant and crucial but reality is that crisis had broth even more damage do developing countries by hitting those who were suppose to help them. By looking at this single indicator it can be said that activity of The Bank is good but, effectiveness behind these landings is unfortunately different issue. Does it really reflect increase in welfare of those who were t here to be helped in real proportion of amount of help? This is again always actual question whether aid is affective or not and can be argued a lot but, evidences suggest that it is not always the case.
As every bank, WB plays very good its role of the lender of last resort by imposing its conditionality on those who really don’t have many other alternatives. In order to avoid negative repercussions of conditionality and strong political influences, it would be good to fix its conditionality rather than end it. Good way of starting would be higher level of transparency and enforcement, clear policy arrangements as well as institutional and public support within a receiving country.
The whole concept known as “NEW WORLD, NEW WORLD BANK” seems to loose its objective stated previously. Is it necessary to call it new in order to emphasize its success in crisis and create differentiation between these two periods? Having in mind that the...