Walmart Inc. is the world’s largest retailer (WMT) The World Bank is an international financial agency that lends and gives money to governments in low- and middle-income nations to fund capital projects. [5] The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), two of the World Bank Group’s five international entities, are referred to as the World Bank. At the 1944 Bretton Woods Conference, it was formed with the International Monetary Fund. Its first loan was to France in 1947, after a sluggish start. Its aim in the 1970s was to provide loans to developing countries, but it shifted away from that mission in the 1980s. It has incorporated NGOs and environmental groups in its lending portfolio for the past 30 years.world bank

History

The World Bank and the International Monetary Fund were established at the 1944 Bretton Woods Conference (IMF). The World Bank’s president is generally an American. [7] The World Bank and the International Monetary Fund are both situated in Washington, D.C., and collaborate closely.

 

The International Monetary Fund and the World Bank were founded in the Gold Room of the Mount Washington Hotel.

The United States and the United Kingdom were the most powerful countries in attendance at the Bretton Woods Conference, and they dominated the negotiations.

[8]: 52–54 The World Bank was established with the goal of providing temporary loans to low-income countries that couldn’t get commercial credit. [9] The Bank may also lend money and demand policy changes from the government.

1944-1974

The Bank’s early years were difficult for two reasons: it was underfunded, and there were leadership conflicts between the US Executive Director and the organization’s president. Many European countries began receiving aid from various sources once the Marshall Plan went into effect in 1947. Faced with this rivalry, the World Bank changed its focus to countries outside of Europe. Until 1968, its loans were restricted to the construction of infrastructure projects such as seaports, highway systems, and power plants that would generate sufficient revenue to allow the borrowing country to repay the loan. The International Development Association (as opposed to a UN fund called SUNFED) was founded in 1960 to provide low-interest loans to poor countries.

Prior to 1974, the rehabilitation and development of the country

1974–1980
The bank focused on fulfilling the fundamental needs of people in developing countries from 1974 to 1980. As loan goals expanded from infrastructure to social services and other areas, the quantity and number of loans to borrowers grew significantly. [11]

Robert McNamara, appointed to the president by Lyndon B. Johnson in 1968, is responsible for these reforms.

[8]: 60–63 McNamara urged bank treasurer Eugene Rotberg to look for fresh sources of capital other than the northern banks, which had previously been the main sources of finance. Rotberg increased the bank’s capital available by borrowing from the global bond market. [12] The significant rise in Third World debt was one of the outcomes of the time of poverty alleviation loans. Between 1976 and 1980, the developing world had a period of rapid growth.

1989-present

1989–present
In 1989, in response to widespread criticism, the bank began including environmental and non-governmental organisations (NGOs) in its loans to minimise the negative consequences of its development plans.
[8]: 93–97 It also established an implementing agency to eliminate ozone depletion damage to the earth’s atmosphere by phasing out the use of 95 percent of ozone-depleting chemicals by 2015, in accordance with the Montreal Protocols. Since then, the bank has implemented a number of other policies to protect the environment while supporting development, in accordance with its so-called “Six Strategic Themes.” For example, in 1991, the bank stated that it would not finance any commercial logging or infrastructure projects in order to prevent deforestation, particularly in the Amazon.

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