World Bank

From Gothpoodle

The World Bank (officially the International Bank for Reconstruction and Development, or IBRD) is one of the most effective global financial organizations in existence. It is currently based in London, having moved there from Washington, D.C., in 2034.

The World Bank’s function is make large loans to national governments, or to private corporations on the condition that a national government guarantee repayment. The loans support long-term projects to improve local infrastructure and standards of living. The Bank usually arranges for technical assistance to accompany loaned funds, helping the recipient country to use the money effectively. Loans are often made conditional on economic reforms within the target country. Most loans are made to developing countries.

Over 170 nations are “members” of the World Bank. Decisions on loans and other policies are made by a vote of the board of governors, but a member nation’s influence is weighted according to its contributions to the Bank’s capital fund. As a result, the Bank is effectively controlled by the world’s wealthiest nations. In 2100 A.D., the European Union dominates World Bank policy, although Brazil, China, Japan, Korea, and Mexico are also influential.

Controversy has surrounded the World Bank for most of the past century. Some claim that its loans go to support corrupt local regimes or multinational corporations, doing little to improve the lives of ordinary people. Others point out that the Bank usually requires economic or social reforms before offering loans – thus making the Bank a tool for violating the sovereign independence of minor nations.