In April 2007, a scandal broke out around the president of the World Bank, Paul Wolfowitz. He had granted a salary increase of nearly 50% in 2005 to his girlfriend, Shaha Ali Riza. This salary hike was double the amount allowed under the employee guidelines. Beyond the depravity of the character, the Wolfowitz affair is in fact indicative of the confidence crisis currently affecting the World Bank.
Founded in 1944, the World Bank for Reconstruction and Development, commonly known as the World Bank, was supposed to rebuild countries destroyed by war.
France was its first client in 1946. From there, it has gradually evolved into a body that funds development aid in the poorest countries. Today this institution has the primary objective of reducing poverty in a world where almost one billion people earn less than a dollar a day.
[...] It meets at least once a year and may delegate its powers (other than those mentioned above) to the 24 directors who are responsible for daily operations and the policies of the Bank billion worth of loans are granted on an average each year to the poor and developing countries at a preferential rate with repayment periods between 15 and 20 years. IDA, founded in 1960, is dedicated to the poorest countries. Its activity aims to reduce poverty by providing grants and interest-free loans to fund programs to reduce inequalities and improve people's living conditions. [...]
[...] President to choose the president of the World Bank and IMF. This process of appointing the President of the World Bank is debatable. b. The effectiveness and usefulness of the champion of development aid challenged The effectiveness of the World Bank's policy against poverty has also been questioned. These detractors criticized the bank's preferred technique of earnings and assimilating profits at the expense of development of Member States. The countries are becoming poorer as the bank only lends them money rather than giving it to them. [...]
[...] An aggiornamento decision mechanism essential The World Bank faces the risk of marginalization if it does sort out the controversial issues that it is surrounded with. Brazil now wants the World Bank to have open and transparent processes without intervention and unrestricted applications according to nationality. Several NGOs have also requested that a chairperson of the World Bank be appointed based on the criteria of competence. "This is a multilateral institution and there should be a multilateral process to appoint its President," said Bernice Romero, campaign director of Oxfam International. [...]
[...] Recent revisions of the doctrine of the World Bank The World Bank wants to have a more harmonious relationship with its recipient countries. This is the reason why it has reformed the fight against corruption. The anti-corruption policy of the World Bank was challenged under the presidency of Paul Wolfowitz. A major embezzlement took place before the World Bank denounced itself. On September the Wall Street Journal unveiled a report issued by the Department of Institutional Integrity dated November This report clearly stated the liability of the Bank in financing a health project in India. [...]
[...] The World Bank has increased its reliance on the use of public authorities and the granting of aid to develop diversified sectors such as infrastructure, agriculture, housing etc b. The World Bank policy against poverty The World Bank is also establishing policies to interact with certain countries. These actions may be transverse: The World Bank announced on March that over the next three years, a grant of nearly 300 million USD was to be given to Uzbekistan at a rate of 90 to 100 million per year to be credited for two to three projects per year . [...]
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