Write 10 page essay on the topic Evolution of the World Bank.The World Bank is a group of five closely associated international organizations responsible for providing finance and advice to countries

Write 10 page essay on the topic Evolution of the World Bank.

The World Bank is a group of five closely associated international organizations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty. Its five agencies are: International Bank for Reconstruction and Development (IBRD). International Finance Corporation (IFC). International Development Association (IDA). Multilateral Investment Guarantee Agency (MIGA). and International Centre for Settlement of Investment Disputes (ICSID). The World Bank's activities are particularly focused on economically backward developing countries. These activities are in fields such as agriculture and rural development (e.g. irrigation, rural services), human development (e.g. education, health), infrastructure (e.g. roads, urban regeneration, electricity), governance (e.g. anti-corruption, legal institutions development) and environmental protection (e.g. pollution reduction, establishing and enforcing regulations). Each of these organizations has their own aims and objectives. The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries for developmental activities. Most of the times loans or grants for specific projects that may result in improvement of policy changes. For instance, loans to improve coastal environmental management that may be linked to development of new environmental institutions at national and local levels and to implementation of new regulations to limit pollution. The main activities of the IFC and MIGA include investment in the private sector and capitalizing insurance respectively (Wikipedia, 2007a).

The IBRD was established in 1944 as the original institution of the World Bank Group. It is structured like a cooperative that is owned and operated for the benefit of its'185 member countries (web.worldbank.org, 2007). IBRD raises most of its funds on the world's financial markets. In 1946 the Bank had an authorized capital of $10 bi11ion, worth about 20 times as much today. However, all through its development it has been singularly garnered more controversy and criticism than any other international financial or development institution. In 1993 the Bank's total callable capital was almost $166 billion, though of that only $10.53 was paid in (Rich, 1994). The income that IBRD has been generated from the time of its inception has allowed it to fund development activities and to ensure its financial strength. As a result of this it is enabled to borrow at low cost and offer clients good borrowing terms (web.worldbank.org, 2007). From mid 1946 to mid 1986 the World Bank lent a total of $160 billion for 4,000 different projects in around 100 countries, and has even more increased in the last few decades. By any reckoning the Bank's resources are huge (Hardy, N.D.). Till date IBRD has not suffered any losses