What Does The World Bank Actually Do?

With thousands of employees and 189 member
countries, the World Bank is one of the most powerful institutions in the world—funneling
billions of dollars every year into ending global poverty. But as the World Bank has grown larger, it
has also become more dysfunctional. High-budget projects with little oversight
have reportedly led to corruption, cover-ups and severe unintended consequences. So what exactly is the World Bank and how
did it get so powerful? Well, the World Bank, like many other international
organizations, was created in the aftermath of World War Two. In 1944, as the war was coming to an end,
Allied nations including the United States and the United Kingdom created the International
Bank for Reconstruction and Development, or IBRD, to rebuild Europe. In 1947, this bank issued its first loan to
France, which had been heavily bombed during the war, and financed similar initiatives
throughout the 1940’s, and 50’s. Eventually the IBRD became known colloquially
as the “World Bank”. In the early 1970’s, as post-war reconstruction
was winding down, the World Bank shifted its focus to reducing global poverty. Instead of funding only construction projects,
like building dams and generating electricity, the bank oversaw programs related to food
production, health, nutrition and development—all addressing poor communities. By the early 1980’s, the World Bank was
not only made up of finance and infrastructure experts, like economists and engineers, but
also society-focused experts like anthropologists and social scientists. These experts not only collaborate on infrastructure
projects, but work with local governments on policies and institutions that would bring
people out of poverty. For instance in India, the World Bank has
funded the construction of nearly ten thousand miles of roads that connect poor rural communities
to schools, markets and clean water sources. The project stimulated rural economies and
improved quality of life for thousands of people. In the past 45 years the World Bank’s objectives
have largely remained unchanged. The bank’s two stated goals are to reduce
extreme poverty, that is, people living on less than roughly $2 a day, and to raise incomes
of the poorest 40 percent of the population. It plans to do this by issuing low interest
loans, and low to zero interest credits and grants to developing countries. Oftentimes the World Bank funds initiatives
on its own, but it also partners with governments, private banks, and other multilateral organizations,
like the World Trade Organization or the UN. The World Bank gets its funds by selling bonds
to investors, collecting subscription fees from member governments and net earnings from
its assets. But many have alleged that these projects
often hurt the poor rather than help them. According to 2015 Investigative report, nearly
three and a half million people have been displaced over the last decade to make room
for World Bank funded projects. The organization has rules for so-called “involuntary
resettlement”, ensuring that families are not forced from their homes without warning,
and that those who are evicted are safely resettled elsewhere. However the World Bank has reportedly failed,
on many occasions, to live up to these standards. For instance in 2007, the bank loaned nearly
$70 million dollars to Kenya’s national forest service for a conservation project. However, Kenyan authorities reportedly used
the money to forcefully evict thousands of indigenous people who had been living in the
project area. Between 2007 and 2014, up to a thousand indigenous
homes had been ransacked or burned to the ground. Representatives from the World Bank have acknowledged
flaws in their involuntary resettlement program, but have yet to make any major changes. This isn’t the only criticism of the World
Bank. Many allege that loans to developing countries
end up in the pockets of corrupt leaders. Others criticize the way the institution is
governed, which gives considerable power to a small number of Western countries. Representatives from the World Bank have said
they are looking for better ways of achieving their goals. So while the bank remains a noble entity working
to end global poverty, it seems it has its own problems to fix as well. The World Bank was created in tandem with
the International Monetary Fund, and the two financial institutions still often work hand
in hand. So what is the IMF, exactly? Find out in this video. Since WWI, the world’s economies have become
interdependent on each other through trade and investment. While this helps strengthen the global financial
system it also creates weaknesses in the economic chain. Thank you for watching Seeker Daily! Please don’t forget to like and subscribe
for new videos every day.

23 thoughts on “What Does The World Bank Actually Do?

  1. The World Bank's stated official goal is the reduction of poverty. However, according to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of capital investment.

  2. What does the World Bank (along with the International Monetary Fund, and World Trade Organization) do:

    Kill poor people in poor countries so rich people can get richer through Structural Adjustment Policies attached to loans which destroy public services (water, sewage, education, healthcare etc.) to be bought by American corporations. Basically, global terrorism.

  3. All I heard was bla bla bla. In a world swamped with debt nothing she says makes any sense. Something is not right here.

  4. Ends the world of poverty….😂😂😂😂😂 they create poverty through wars. They obviously haven't heard of 3rd world countries. Why do some countries still not have clean drinking water? There's money for pipelines, rockets, Tanks etc…why is there nothing for irrigation pipelines getting water into drought areas????? There's a thought

  5. United Nations: created by the US and the UK
    World Bank: created by the US and the UK
    Commonwealth of Nations: created by the UK

    what I don't understand is that countries of the world don't understand that it's just made to make the UK and the US more powerful, what's so hard to comprehend bro

  6. Her pronounce is so good…How she learn it… if u have any good educational video that can help me learn and speak good english… pls share the link😭

  7. Where does it get all its billions from? Do they actually have it? What if one day we all decide to finish up paying the loans altogether, and whoever has money in the world bank decides to cash out, will the world bank actually have enough for the payout?

  8. World Bank is an evil organization which is a American puppet. All countries contribute to this Bank but funniest thing is when country asks for loan it has to take its own money as loan plus sign dangerous treaties.

    Countries must opt out of this org.

  9. They shall be erased from the face of Earth and the super rich clowns who run this farce from behind the curtains shall be handed their severed heads on platters. He won't show mercy to these corrupt mischief makers.

  10. It was Hitlers goal to take over the Worlds banking. Now China is trying to take over the worlds banking since it all goes through the internet to throw the whole world into Communistic control. Making everyone a slave and keeping the world poor basically Satan. Here in the USA we ate guaranteed that laws are suppose to be upheld but the government will not follow the laws under the Interception and Disclosure of Telecommunications which was amended to include the internet. Corruption is running amok within a nation making it lawless

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