I. Issues motivated for choosing the sudyThe World Bank is aninternational financial organization which was originally founded and build in1944. In this time it was its primarily task to help rebuilding Europe in asocial and financial way. Many places in Europe were enormously damaged by thesecond world war. After this first task appeared to be finished in a satisfyingway the institution shifted its mayor focus on a different task for which it isknown in the present time: Supporting countries and their inhabitants of middleto low wage levels. I am studying myself a subjectwhich is called “Public and Non-Profit management”.
It is particularly designedto support a career in the public and the non-profit sector. Since the actionsof the World Bank are allocated almost completely in the second sector I mightwell think of myself as being employed by this organization in the future.Therefore it is in my personal interest to know the most about this big playerin the non-profit sector. Meanwhile I am going to illustrate origin and historyof this institution, as I am going to evaluate their contemporary work withfocus on the below mentioned goal. FinallyI am going to give my own opinion future recommendations concerning on how theWorld Bank can meet their objectives.In the center of the analysis Iwill focus on the World Bank’s committed goal to end all world’s poverty until2030.
Therefore, I am going to check on the prior success, the possibility oftheir goal, their means to achieve it, the challenges they are facing and thesupport they receive throughout the world’s governments. II. History & OriginInitially the world bank wascreated in 1944 at the “Bretton Woods Conference”. As the same instant the”International Monetary Fund” was created alongside. Each of them is located inWashington D.
C. and work together in close cooperation. Under strict conditions theWorld Bank gave its first loan to France. It summed up to the amount of 250million USD.
Along with the “Marshall Plan”1947 many European countries received financial aid and the World Bank startedshifting its focus to Non-European countries. Starting 1974 the bank definedthe basic needs of people in development countries and aimed to fulfill thembetter. The amount of their given loans has significantly increased as theyshifted from only giving support to the improvement of infrastructure, whichwas their initial plan to boost local economies, over to giving aid in terms ofsocial services and to other public sectors.
As consequence from the sheer amount of given loans, the developingworld debt rose between 1976 to 1980 a drastically 20% each year. In 1980 along with a newpresident a new policy was called in existence. Alden W. Clausen did have a less positivepicture of development countries and he aimed to streamline developmentcountry’s economies in a way which should make it possible for them to repaytheir debt. As consequence of a lack of financial means in the lowest laddersof society many people especially children had to suffer. According to Unicefthe World Bank was responsible for “reduced health, nutritional and educationallevels for tens of millions of children in Asia, Latin America, andAfrica”.
In consequence the World Bankreceived harsh critics and they therefore started to change the organizationalagenda. Beginning in 1989 they started giving loans to NGOs and organizationswhich are committed to improving the enviremental situation throughout developmentcountries. Furthermore they realized climate change as a uprising newchallenge, which faces humanity as a whole and consequently committed to thegoal of banning 95 percent of ozone-harming chemicals till 2015. Furthermore,they called out the “Six Strategic Theme” defining further objectives of theinstitution. In 2000 the World Bank joinedthe “war on AIDS” and in 2011 they joined the Stop Tuberculosis Partnership. III. The goal of ending all poverty by 2030 The World Bank has the committedgoal to end all world’s poverty by 2030.
This goal was given by the memberstates, which are themselves financing its efforts by paying an annual fee. 2015the results of its prior work have been become clear, as a report of the WorldBank itself has unveiled: Therefore for the first time recorded, the absolutenumber of people living in complete poverty, which is defined by surviving ononly two dollar or less per day, has reached below the mark of ten percent. Thereport declared that only around 702 million people had to live in thatcondition, which equals to a percentage of nine point six of all the world’spopulation.
Back in 1990 it was still a significantly higher 36 percent (c.f.welt.
de; 2015). So there was already a drop of 26 percent in these twenty-five years,which indicates that another ten percent in the coming thirteen years might bevery well possible with a steady hold of the same progressAs the director of the WorldBank itself has declared the time-bound limit of their goal is empowering themto work harder and faster, it “forces you to change,” he said at a speech atthe Stanford Graduate school of business. (c.f. gsb.stanford.
edu; 2015)This is a mayor key and meanto achieve the World Bank’s ambitious goal: Change. The existing systems ofmoney flow keep the rich rich and the poor poor. Money generates money, if itis invested in assets, only if one must invest all of one’s income in the substantialresources to survive such as food and water, one cannot accelerate the own wealthas there is no backflow of the capital, but there is only consumption of thedaily resources in form of the needs of survival. Thereforea change of the system the poor are born into is a mayor key to changing theirliving conditions. With this factor there appears one of their mayor challenges,which will increase the difficulty of achieving the goal drastically: Followinga prognosis of the World Bank by 2020 already half of the world’s poor willlive in areas which are affected by (civil) war or other political conditionswhich actively interfere with the organization and its possibility to changethe socio-economic environment of the habitants living in these regions.
(ibid)Another possibility to end theworld’s poverty as of today is redistributing the world’s wealth as there ismore than enough money to supply every singly person not only with theiressential human needs but also with education. The problem facing the organizationis obviously the human nature: The average human seems not to be affected bysuffer and pain, which does not take place in its on (social) environment.Since humans organize themselves mainly in a free market concept, where thereis no boundaries given to the acceleration of wealth, the neuro-physical wiresof the human brain seem to contradict any approach of a fair world-widedistribution: The moment a human receives (mainly visual) information that heor she has successfully enriched its own wealth, the brain releases dopamine,which again makes that individual feel better for a moment. This is because ofour society’s imprinting of the picture of money.
Humans are by culture,advertisement campaigns and their very own interpersonal experiences hardwiredto identify money with success. In their subconsciousness on the other side,money became associated with survival. While survival is the main thrive of ourbrain, the accumulation of money became identified with surviving. (c.f.tagesspiegel.
de; 2017)The downside to this effect isthat the human body gets quickly used to those kick of dopamine, and afterwardsrequests them on a regular basis, the subject basically gets addicted to gettingever more money. This is the crucial hoax which is contrasting with the idea ofa redistribution. Human society is already stuck in a system which in every wayencourages and rewards the endless accumulation of money.A third and at the moment mainlyapproached solution to the goal to end all poverty by 2030 is investing: As thepoor are not possibly to create growth on their own, because of the abovementioned problematic, a third party has to generate that growth, in this casethe World Bank. Unfortunately the sheer amount of capital needed to generatethe necessary growth can not be created by the Bank alone so additionally thecountry’s governments themselves have to invest in their people. The main subjectof invests needs to be health as an undernourishment and insufficient basichealth may lead to cognitive degeneration and disorder of small children. (c.f.
ncbi.nlm.nih.gov; 2014) 26 percent of all childrenunder five in development countries are stunted due to the above-mentionedreasons.
As the example of Peru proves quick results can be achieved in thisdomain too: They accomplished to half its rate of children stunted in merelyeight years with the support of the World Bank. Creating an environment in which investments areleading to create a health system benefiting the whole of its country is thereforea main target of the World Bank in the progress of ending the World’s extremepoverty. In fact, such investments can produce an economic return of ten to oneas a report of the Lancet Commission has shown. (c.f. globalhealth2035.org; 2013)Lastly a main factor for successfullyachieving their goal is gathering huge amounts of correct data, displayingongoing occurrences and results.
To collect these the World Bank is investingseveral hundreds millions of dollars alone. (ibid) Making their attemptsconsiderably more difficult is the present lack of natural data sources of suchkind. Almost half of the countries the World Bank is working are lackingsufficient systems to accumulate this household-level data recording main criteria’slike consumption, income-development et cetera. (c.f. worldbank.org; 2017) Without this data it is near impossible to achievetheir goal and the World Bank is forced to hold thousands of interviews in eachsingle one of these countries.
Time and money is invested to follow up on thelack of information, crucial to create a working, well-balanced and transparentsystem to eradicate extreme poverty. IV. Lessons learnedThe quest to end all extremepoverty by 2030 demands for a symphony of several, individual, equally importantscopes. By concentrating on only one of them, as done in the early years of theorganization’s existence their goal cannot be successfully completed. (ibid) Furthermore, not only the dataof the countries in which the World Bank is active must be complete and correct,but also the World Bank itself has to render account to a transparent andeffective way of accounting and auditing. The countries on stake are often suchof harming and destructive living environment in which invested money is alwaysat risk of being abducted in corrupted ways and may lead to sustaining thesefatal socio-economic situations, as it has happened before. (ibid) Thereforethe World Bank must take own control of the invested monetary means, monitortheir streams and ensure that it induces to the development of the life situationof the world’s poor.
Finally, it is out of controlfor the World Bank to ensure peace in regions which are for example devastated bycivil war. To face this task, it demands for a world-wide cooperation of notjust NGOs but also neighboring and high-developed countries and theirgovernments. They have to offersolutions which will benefit all the affected country’s inhabitants in a waythat afterwards the way will become clear for accurate and efficient investmentsand methods to finally completely erase the world’s extreme poverty. V.
Recommendations for the FutureTo complete their committedgoal the World Bank relies on global support. To gain such support, everycountry’s population has to come to the conclusion that this global cooperationis the only and the necessary way to encounter the World’s poverty. Thus, theWorld Bank’s quest needs to receive the necessary attention, it has to reachthe international medial awareness. Consequently, it might be a required step toshift some monetary means into marketing campaigns later on. In stead of shifting it, itmight as well also try to accumulate the additional monetary funds on its own,by offering a transparent and well-working way of investments into the healthsystem of affected development countries.
As mentioned above such investmentscan lead to a revenue of ten to one, which is remarkable even for SiliconValley standards. To realize this including option, the World Bank needs to crafta well-thought and tested revenue system, to ensure the investor’s satisfactionand thereby create a self-nourishing, self-expanding network of ‘profitable’development help.