The Purpose Of The World Bank

The World Bank was created for the purpose of bringing poor economic countries assistance so they can advance and develop much faster than they normally would. According to the World Bank's website, this assistance is provided in the form of loans with very small interest rates, grants, and zero-to-low interest credits (What We Do). While the World Bank was created with strong, positive goals in mind, the outcome of their efforts are often poor. The bank has helped develop countries, but they have also been responsible for causing debt levels to rise to levels that are almost impossible for them to repay. The whole purpose of this bank is to close the gap and create greater equality for all, but history shows that differences in inequality are rising.

To answer this question we must look at examples from countries the bank has "helped", some including Brazil, Somalia, Ghana, and the Philippines. Policies and reforms pushed by the World Bank have all-around worsened conditions in these countries, causing a majority of citizens to get their wages lowered, and freedoms to be involved in political practices stripped or lessened (Why The World Bank...). According to Almedia, an economist interviewed by the Washingtion Post, the bank in Brazil has become so big and powerful that "No matter how smart it is, they cannot compete with a bank that receives subsidies from the government" (Forero 2013). Now because the World Bank in Brazil is so big, and other banks cannot compete, the World Bank becomes almost a monopoly to a sense. The damage occurs when interest rates are raised, even as high as ten percent, believed to cause private lenders unable to develop in Brazil (Forero 2013). If we want to boost development in developing countries, such as Brazil, then the growth of the economy needs to grow in relevance with the growth of the World Bank, otherwise the country will suffer