I. The World Bank is an international

I. Issues motivated for choosing the sudy

The World Bank is an
international financial organization which was originally founded and build in
1944. In this time it was its primarily task to help rebuilding Europe in a
social and financial way. Many places in Europe were enormously damaged by the
second world war. After this first task appeared to be finished in a satisfying
way the institution shifted its mayor focus on a different task for which it is
known in the present time: Supporting countries and their inhabitants of middle
to low wage levels.

I am studying myself a subject
which is called “Public and Non-Profit management”. It is particularly designed
to support a career in the public and the non-profit sector. Since the actions
of the World Bank are allocated almost completely in the second sector I might
well 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 player
in the non-profit sector. Meanwhile I am going to illustrate origin and history
of this institution, as I am going to evaluate their contemporary work with
focus on the below mentioned goal.  Finally
I am going to give my own opinion future recommendations concerning on how the
World Bank can meet their objectives.

In the center of the analysis I
will focus on the World Bank’s committed goal to end all world’s poverty until
2030. Therefore, I am going to check on the prior success, the possibility of
their goal, their means to achieve it, the challenges they are facing and the
support they receive throughout the world’s governments.



II. History & Origin

Initially the world bank was
created in 1944 at the “Bretton Woods Conference”. As the same instant the
“International Monetary Fund” was created alongside. Each of them is located in
Washington D.C. and work together in close cooperation.

Under strict conditions the
World Bank gave its first loan to France. It summed up to the amount of 250
million USD.

Along with the “Marshall Plan”
1947 many European countries received financial aid and the World Bank started
shifting its focus to Non-European countries. Starting 1974 the bank defined
the basic needs of people in development countries and aimed to fulfill them
better. The amount of their given loans has significantly increased as they
shifted from only giving support to the improvement of infrastructure, which
was their initial plan to boost local economies, over to giving aid in terms of
social services and to other public sectors.  
As consequence from the sheer amount of given loans, the developing
world debt rose between 1976 to 1980 a drastically 20% each year.

In 1980 along with a new
president a new policy was called in existence.   Alden W. Clausen did have a less positive
picture of development countries and he aimed to streamline development
country’s economies in a way which should make it possible for them to repay
their debt. As consequence of a lack of financial means in the lowest ladders
of society many people especially children had to suffer. According to Unicef
the World Bank was responsible for “reduced health, nutritional and educational
levels for tens of millions of children in Asia, Latin America, and

In consequence the World Bank
received harsh critics and they therefore started to change the organizational
agenda. Beginning in 1989 they started giving loans to NGOs and organizations
which are committed to improving the enviremental situation throughout development
countries. Furthermore they realized climate change as a uprising new
challenge, which faces humanity as a whole and consequently committed to the
goal of banning 95 percent of ozone-harming chemicals till 2015. Furthermore,
they called out the “Six Strategic Theme” defining further objectives of the

In 2000 the World Bank joined
the “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 committed
goal to end all world’s poverty by 2030. This goal was given by the member
states, which are themselves financing its efforts by paying an annual fee. 2015
the results of its prior work have been become clear, as a report of the World
Bank itself has unveiled: Therefore for the first time recorded, the absolute
number of people living in complete poverty, which is defined by surviving on
only two dollar or less per day, has reached below the mark of ten percent. The
report declared that only around 702 million people had to live in that
condition, which equals to a percentage of nine point six of all the world’s
population. 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 be
very well possible with a steady hold of the same progress

As the director of the World
Bank itself has declared the time-bound limit of their goal is empowering them
to work harder and faster, it “forces you to change,” he said at a speech at
the Stanford Graduate school of business. (c.f. gsb.stanford.edu; 2015)

This is a mayor key and mean
to achieve the World Bank’s ambitious goal: Change. The existing systems of
money flow keep the rich rich and the poor poor. Money generates money, if it
is invested in assets, only if one must invest all of one’s income in the substantial
resources to survive such as food and water, one cannot accelerate the own wealth
as there is no backflow of the capital, but there is only consumption of the
daily resources in form of the needs of survival.   Therefore
a change of the system the poor are born into is a mayor key to changing their
living conditions. With this factor there appears one of their mayor challenges,
which will increase the difficulty of achieving the goal drastically: Following
a prognosis of the World Bank by 2020 already half of the world’s poor will
live in areas which are affected by (civil) war or other political conditions
which actively interfere with the organization and its possibility to change
the socio-economic environment of the habitants living in these regions. (ibid)

Another possibility to end the
world’s poverty as of today is redistributing the world’s wealth as there is
more than enough money to supply every singly person not only with their
essential human needs but also with education. The problem facing the organization
is obviously the human nature: The average human seems not to be affected by
suffer and pain, which does not take place in its on (social) environment.
Since humans organize themselves mainly in a free market concept, where there
is no boundaries given to the acceleration of wealth, the neuro-physical wires
of the human brain seem to contradict any approach of a fair world-wide
distribution: The moment a human receives (mainly visual) information that he
or she has successfully enriched its own wealth, the brain releases dopamine,
which again makes that individual feel better for a moment. This is because of
our society’s imprinting of the picture of money. Humans are by culture,
advertisement campaigns and their very own interpersonal experiences hardwired
to identify money with success. In their subconsciousness on the other side,
money became associated with survival. While survival is the main thrive of our
brain, the accumulation of money became identified with surviving. (c.f.
tagesspiegel.de; 2017)

The downside to this effect is
that the human body gets quickly used to those kick of dopamine, and afterwards
requests them on a regular basis, the subject basically gets addicted to getting
ever more money. This is the crucial hoax which is contrasting with the idea of
a redistribution. Human society is already stuck in a system which in every way
encourages and rewards the endless accumulation of money.

A third and at the moment mainly
approached solution to the goal to end all poverty by 2030 is investing: As the
poor are not possibly to create growth on their own, because of the above
mentioned problematic, a third party has to generate that growth, in this case
the World Bank. Unfortunately the sheer amount of capital needed to generate
the necessary growth can not be created by the Bank alone so additionally the
country’s governments themselves have to invest in their people. The main subject
of invests needs to be health as an undernourishment and insufficient basic
health may lead to cognitive degeneration and disorder of small children. (c.f.
ncbi.nlm.nih.gov; 2014)

26 percent of all children
under five in development countries are stunted due to the above-mentioned
reasons. As the example of Peru proves quick results can be achieved in this
domain too: They accomplished to half its rate of children stunted in merely
eight years with the support of the World Bank.  Creating an environment in which investments are
leading to create a health system benefiting the whole of its country is therefore
a main target of the World Bank in the progress of ending the World’s extreme
poverty. In fact, such investments can produce an economic return of ten to one
as a report of the Lancet Commission has shown. (c.f. globalhealth2035.org; 2013)

Lastly a main factor for successfully
achieving their goal is gathering huge amounts of correct data, displaying
ongoing occurrences and results. To collect these the World Bank is investing
several hundreds millions of dollars alone. (ibid)

Making their attempts
considerably more difficult is the present lack of natural data sources of such
kind. Almost half of the countries the World Bank is working are lacking
sufficient systems to accumulate this household-level data recording main criteria’s
like consumption, income-development et cetera. (c.f. worldbank.org; 2017)  Without this data it is near impossible to achieve
their goal and the World Bank is forced to hold thousands of interviews in each
single one of these countries. Time and money is invested to follow up on the
lack of information, crucial to create a working, well-balanced and transparent
system to eradicate extreme poverty.  



IV. Lessons learned

The quest to end all extreme
poverty by 2030 demands for a symphony of several, individual, equally important
scopes. By concentrating on only one of them, as done in the early years of the
organization’s existence their goal cannot be successfully completed. (ibid)

Furthermore, not only the data
of 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 and
effective way of accounting and auditing. The countries on stake are often such
of harming and destructive living environment in which invested money is always
at risk of being abducted in corrupted ways and may lead to sustaining these
fatal socio-economic situations, as it has happened before. (ibid) Therefore
the World Bank must take own control of the invested monetary means, monitor
their streams and ensure that it induces to the development of the life situation
of the world’s poor.

Finally, it is out of control
for the World Bank to ensure peace in regions which are for example devastated by
civil war. To face this task, it demands for a world-wide cooperation of not
just NGOs but also neighboring and high-developed countries and their
governments.  They have to offer
solutions which will benefit all the affected country’s inhabitants in a way
that afterwards the way will become clear for accurate and efficient investments
and methods to finally completely erase the world’s extreme poverty.



V. Recommendations for the Future

To complete their committed
goal the World Bank relies on global support. To gain such support, every
country’s population has to come to the conclusion that this global cooperation
is the only and the necessary way to encounter the World’s poverty. Thus, the
World Bank’s quest needs to receive the necessary attention, it has to reach
the international medial awareness. Consequently, it might be a required step to
shift some monetary means into marketing campaigns later on.

In stead of shifting it, it
might 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 health
system of affected development countries. As mentioned above such investments
can lead to a revenue of ten to one, which is remarkable even for Silicon
Valley standards. To realize this including option, the World Bank needs to craft
a well-thought and tested revenue system, to ensure the investor’s satisfaction
and thereby create a self-nourishing, self-expanding network of ‘profitable’
development help.