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Paper Topic:

World Banks appaorch to lending `Basic Needs`

WORLD BANK 'S APPROACH TO LENDING BASIC NEEDS

2009

BANK 'S LENDING POLICY FORMULATION

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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