Blackwell Encyclopedia of Sociology Online

Extract

The World Bank is a multilateral development bank that provides low-interest loans, interest-free credits, grants, and technical assistance to middle- and low-income countries in Africa, Asia, Latin America, and Eastern Europe. The Bank's twin goals are to reduce poverty and increase economic growth. It originated in the 1944 Bretton Woods conference with its sister organization, the International Monetary Fund (IMF), to stabilize the international economy after World War II. The Bank raises funds through the sale of bonds on the international market and through donations from member states. Voting is weighted by the size of member nations' economies and the United States has the most influence. The Bank makes loans at concessional rates for infrastructure, agriculture, social programs, and private enterprise development. Since the debt crisis of the 1970s, the Bank has required structural adjustment policy reforms as a condition of its loans. Critics charge that World Bank policies have hurt the most vulnerable, increased poverty, and damaged the environment.The World Bank has two components, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD loans funds to credit-worthy developing countries. This “hard-loan window” has more favorable terms than commercial loans, with a typical loan term of 15 to 20 years ... log in or subscribe to read full text