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Unformatted text preview: World Bank 4 Major Organizations within World Bank (focus on two) • International Bank for Reconstruction and Development (largest sub group) • International Development Association (1960) Goals • Primary Goal: Promote post war reconstruction (in Europe) • Second Goal: Promote development (became primary after reconstruction) • Establish a new (post war) order • Avoid economic problems that happened in the inner war period How World Bank’s approach to development • Initial approach was just to address poverty • Then approach switched to addressing economic growth (modernity) o Backlash to that then approach back to basic needs • Now, promotion of economic activity with governance and long term social indicators o It does this by developing human capital, improving health, and education. How World Bank Concedes Development? • World Bank essentially gives money out to the poor o Gives out loans with longer repayment periods at interest rates that are at or slightly below market rates o In addition to giving out loans tries to study what causes impact of poverty and hire experts for assistance to implement programs o Not just giving money but gives help of how to use that money to try to promote long term economic development o Includes money and projects focusing on infrastructure as well as business development, government institutions • IDA (second organization within World Bank) o Created in 1960s with specific goal to give out loans with longer repayments and grants with no repayments to poorest of the poor o Try to address poorest of the poor ant often at no interest How They Do It? •...
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This note was uploaded on 03/23/2011 for the course POLI SCI PS 147 taught by Professor Reyes during the Winter '11 term at UCSB.
- Winter '11