The IMF and the world bank were established after world war II as mutual organizations through which member countries could help each other with post war reconstruction and development , The voting and governance structure of both organization reflect the early vision . Today however , both lend only to developing and transition countries and both condition their lending heavily on broad changes in borrower’s economic policies , increasing intrusiveness of institution work changing the nature of their relationships with stake holders. The World Bank Group mission
-improve living standards of people in the developing world -development bank which provides loans , policy advise , technical assistance & knowledge sharing services to low and middle income countries to reduce poverty. -promote growth to create jobs and empower poor people to take advantage of these opportunities. One of the most powerful instituitional mechanism of contemporary global governance Changing shape of bank policies and practices
The bank’s Neoliberalism
Established in 1944 , commence in 1946 , issued 1st loan of US$250 million to france in 1947 for post war reconstruction Initial focus on war , conflict and reconstruction of its post conflict member states Throughpromotion of trade , private investment and equilibrium in balances of payments During 2004 the bank issued US$20.1 billlion in development funding : shift in emphasis in bank discourse During second half of 1990s , shifted focus from one of restoring war torn economies to one that focus on poverty reduction as the overarching goal of its work . D.wolfensohn (1995-2005) : comprehensive development framework designed to enhance contry ownership of bank policies , contemporary neoliberal ‘good governance discourse’ : reduction of global poverty , knowledge sharing , capacity building and partnership forging between the public and private sectors Strong element of bank policy making
The bank has become particularly keen to highlight the multi disciplinarity of its bureaucratic credentials : as an organization embodying a seemingly diverse range of sectors and staff specialities Bigger , broader , and far more complex insititution
Bank does not constitute a single entitity , it is the combination of 5 specialsed agencies : the International Bank for Reconstruction and development (IBRD) biggest of the 5 groups. The bank is formally owned by 184 member countries , (governor + alternate governor + director in WDC) The IBRD has 184 member countries , to be a member of the IBRD a country must 1st be a member of the International Monetary fund (IMF) Bank was designed at inauguration to be financed by governments and not through private capital . Bank’s earliest embodiment was largely dependent on selling bonds on international financial markets to raise the bulk of its capital , with the subscription of members supplying the rest of its funds. Gained wall street confidence becoz of insistence on the fiscal and monetary discipline of borrowing countries and through the bank’s own engagement in ‘ sound banking practices’ embodied in easily defined , and strictly supervised , public utilities policies. The bank receives funding from its member govt through the subscription of shares , with each member country contributing an amount as determined by the bank = subscribing shares of the capital stock of the bank. The US , the largest shareholder , is therefore the largest state source of funding to the bank . Subscription of shares , 2 parts “ 20%-bank , paid to as needed by the bank , 80% call only when absolutely required by the bank to meet its article obligation. IDA : International Development Agency provide interest free credit and grant financing , according to the bank is the worlds largest source of concessional assistance forty of the richest member country provide the capital for this funding by making contributions every 4 yrs . 2002 – US$9 billion from donors ,...
Please join StudyMode to read the full document