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Paper Topic:

World Banks appaorch to lending `Basic Needs`




The World Bank 's lending policy has been formulated in response to the strong leadership of Bank presidents , based on abundant economic analysis of borrowing countries by the Bank 's staff . The Board of Executive Directors has formal responsibility for developing the Bank 's lending policy , but its role has generally been passive . The history of Bank lending can be classified into three periods , based on its lending policy (1 ) fiscal years 1946-67 (2 ) fiscal years 1968-81

(3 ) fiscal years 1982 - to the present (Caufield , 1996

Before Robert McNamara became President in April of 1968 , the World Bank had a strong tendency to equate development with economic growth . The objective of Bank lending was to assist in the economic growth of developing countries , which it was thought could be achieved technically regardless of political factors within the borrowing countries Accordingly , infrastructure-related projects , such as electric power projects , transportation facilities , port development telecommunications facilities , and other public utilities , were considered to be worthy of finance by the IBRD and the IDA . The Bank also recognized investments in social sectors , such as education health , nutrition , and family planning , to be fundamental to development . However , the Bank 's lending criteria were based on rather conservative market-economy and growth-oriented principles , such as financial returns on invested capital , creditworthiness , and economic performance of the borrowing countries . The contribution of social sectoral projects to increased production and the rate of return of...

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