The World Bank: inception, evolution, purpose, and responsibilities

World Bank was established in 1944 with its headquarters at Washington, DC. It was formed as a single organization that later expanded to a group of five strongly connected development institutions. The five members of the World Bank Group include the International Bank for Reconstruction and Development (IBRD), the International Development Association, the International Finance Corporation (IFC), the Multilateral Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID). The main reason behind its inception was to smooth the progress of post-war reconstruction and reorganization. However in the present times, its main objective is to alleviate worldwide poverty. It also focuses on:

the sustainable growth in the most underprivileged countries, helping weak states y providing solutions to the special confrontations, providing capital and investment for middle-income countries, global problems and disasters such as hazardous diseases, trade and climatic changes

Arab world as there are innumerable opportunities for development in that part of the globe,

Supporting development by pooling their resources for the attainment of best international knowledge ("About Us - History," worldbank.org).

The World Bank has loaned an enormously large amount of money to the developing world since its inception. The World Bank has turned out to be an exceptionally powerful player on a global level in the prevailing years. It is the only largest source in the world that lends money to the governments for developmental purposes. Furthermore, the contribution of the World Bank in a project or involvement in a country is regarded highly imperative as it opens up the gates for provision of funds from other banks as well. The Bank has certain conditions related to loans that influence the developmental work in the borrower nations. It also provides economic advices to aid nations for the reformation (French 10+).

Despite all the work done by the World Bank globally, it has faced heavy criticism for investing in various projects that proved to be environmentally destructive. In Dec 1992, it was found out that over one third of the projects in which the Bank invested were deteriorating too badly (Adams 146). It had given loans for the construction of dams that generated power and flooded out the adjacent areas simultaneously. Pristine rainforests were cut down in order to promote the agricultural development schemes financed by the World Bank. The Bank also provided capital in mining processes that generated revenue but polluted natural water resources. The questions have risen about the transformation of the World Bank into an organization that supports sustainable development. The Bank did take some major steps for the same criticism in the 1990s but it still has to pull alongside with the rhetoric. It is highly desirable for the World Bank to channelize its loans towards the sustainable development in order to maintain its privileged status in the world. It is significantly important to reduce global poverty and protect the natural resources at the same time as it is the responsibility of the Bank to do so (French 10+).