Non-Governmental Organizations are private, voluntary organizations made up of persons or associations that convene with a common objective. They range from grassroots organizations to known worldwide organizations. Some of the non-governmental organizations are funded by private means, while others depend partly on governmental funds1. Other non-governmental organizations meet their objectives by allowing mass memberships. World Bank is an example of an international Non-Governmental Organization that was formed in 1944.
The main aim of establishing the World Bank was to aid Europe in its renovation program, Europe needed financial support in order to enable it to heal from the critical results of World War II. However, the short time spent renovating Europe made the World Bank reroute its attention to developing countries. It accumulated funds from well-developed countries and used them in aiding financial development projects in upcoming countries. The World Bank has four partners with which it works in achieving its goals of lowering poverty, promoting economic development, and advancing the living conditions of the poor people in upcoming countries.
The World Bank’s main focus is on the third World countries. It works with IDA in providing long-term loans in friendly terms, hence aiding the development programs of needy countries. The International Finance Corporation established in 1956, also works with the World Bank in aiding private investors in meeting the goals of developing third world countries. It allows investors have access to funds from both local and external sources2. On the other hand, the Multilateral Investment Guarantee Agency together with the World Bank solves venture disagreements.
The World Bank should be considered as a friend by the majority of the countries in the world, it advocates for the well-being of the people worldwide. In its mission of eradication of poverty, the World Bank takes part in financing needy countries. In addition, the World Bank plays a significant role in promoting the economic growth of third-world nations. For instance, in 2012, the World Bank boosted the economic development of Kenya, one of the countries in Africa. It aided Kenya to complete its infrastructure program of constructing a superhighway that plays a significant role in boosting Kenya’s economy. In chipping in the financing of the construction of Kenya’s superhighway, the World Bank also contributed immensely in improving the quality of life of poor Kenya’s3.
owever, the World Bank participates in promoting hard living conditions to people in third-world countries. Its partial financial support to huge infrastructure projects to developing countries, like hydroelectric dams, contributes immensely towards the displacement of poor people without due regard to their interests or offering just compensation. In addition, the World Bank contributes towards the destruction of natural resources such as forests. For instance, in the year 1981, the World Bank-supported Brazil’s Polonoroeste development program of improving its main highway that ran across the forest, splitting the land, and offering ownership of land to settlers. The program led to intense movement and land gamble that resulted in great forest destruction.
In conclusion, despite the negative effects caused by the World Bank in financing developing countries’ projects, it plays a significant role in advancing the living of those countries’ citizens. The World Bank has played a significant role in advancing the living conditions of many people in the world by ensuring that it has helped lower poverty levels in developing countries.
Bibliography
Appleyard Dennis and Field Alfred. 1992. International Economics. Boston: Irwin.
Sodersten Bo. 1970. International Economics. London: Macmillan Press LTD. Sodersten Bo. and Reed Geofrey. 1994. International Economics: London: Macmillan.
Footnotes
- Dennis Appleyard and Alfred Field, International Economics (Boston: Irwin, 1992).
- Bo Soderston, International Economics (London: Macmillan Press LTD, 1970).
- Bo Sodersten and Geofrey Reed, International Economics (London: Macmillan, 1994).