The World Bank

The World Bank is closely linked to the IMF. The Bretton Woods agreement created both organisations. They share a building in Washington DC. Their voting systems are similar, based on each country's economic power. In the 1980s and 1990s, both followed a similar economic plan, the Washington Consensus.

However, the IMF and the WTO mainly set rules for global trade. The World Bank's main job is to redistribute wealth. At first, it helped rebuild Europe after the war. From the 1960s, it focused more on developing nations. After communism fell, it aided transitioning countries.

The World Bank offers low-cost loans. These loans support big investment projects. It also provides expert help. The Bank’s methods have changed over time. Early on, it backed big projects like power, phones, and transport. In 1968, Robert McNamara became president. He had been the US Defence Secretary. The Bank then started to focus on basic needs projects.

The World Bank once expanded into areas like education and human rights. A shift occurred in 1980 with A.W. Clausen replacing McNamara. Ann Krueger became chief economist in 1982. Both favoured market ideas over traditional development funding. The Bank then focused on structural adjustment policies, like the IMF. Deregulation, privatisation, and export-led growth became priorities. Poverty in Latin America, Asia, and Africa often increased, not decreased. World Bank programmes were broader than the IMF's, with a longer-term view. However, the focus on trade expansion, especially cash crops, maintained dependency and poverty. Development gaps widened in the 1990s. Trade imbalances let rich countries profit from capital-intensive goods. Developing countries sold low-price, labour-intensive goods. The World Bank, along with the IMF, moved wealth from poorer areas to richer ones.

The World Bank kept its focus on neoliberal ideas. Since the early 1990s, it has faced criticism and started to reform. It now considers the environmental costs of projects. The Bank supports sustainable development. It also stresses good governance and anti-corruption efforts. This rejects the idea of minimal government. The state is important for order, safety, and basic social care. Since 2002, poverty programmes involve talks with recipient countries. More local control and custom projects are needed. 'Partnership' is now emphasised. To show a willingness to listen to developing countries, especially after the 2007–09 crisis, the Bank increased its capital by $86 billion in 2010, the first increase in 20 years. It also gave sub-Saharan Africa another seat on its board. Developing countries' voting power rose to 47 per cent, aiming for 50 per cent.