WORLD
BANK
Lucas Rizoli Feb. 15, 2008

9

World War 2
Europe & East Asia devastated
Soviet advance
Economic dissatisfaction
US war-time boom

Allies seek economic control
Europe & East Asia devastated
Soviet advance
Economic dissatisfaction
US war-time boom

Allies seek economic control
Pay for reconstruction
Soviet advance
Economic dissatisfaction
US war-time boom

Allies seek economic control
Pay for reconstruction
Establish capitalism
Economic dissatisfaction
US war-time boom

Allies seek economic control
Pay for reconstruction
Establish capitalism
Economic security
US war-time boom

Allies seek economic control
Pay for reconstruction
Establish capitalism
Economic security
Open markets to US

Bretton Woods, 1944
World Bank
Fixed exchange rates
USD at its heart
International Monetary Fund (IMF)
Open markets
International Trade Organization

Bretton Woods, 1944
World Bank
Fixed exchange rates
USD at its heart
International Monetary Fund (IMF)
Open markets
International Trade Organization

1946 HQ in Washington DC
Capitalization of $12 billion
1947 $250 million to France
$195 million to Netherlands
$ 40 million to Denmark
1948 $ 16 million to Chile
$ 34 million to India

1946 HQ in Washington DC
Capitalization of $12 billion
1947 $250 million to France
$195 million to Netherlands
$ 40 million to Denmark
1948 $ 16 million to Chile
$ 34 million to India

Owned by member states
Buy shares by offering capital
Votes proportional to shares

Owned by member states
Buy shares by offering capital
Votes proportional to shares
President appointed by US President

Owned by member states
Buy shares by offering capital
Votes proportional to shares
President appointed by US President
Changes to Charter require 85% majority
US can block any change

1946 HQ in Washington DC
Capitalization of $12 billion
1947 $250 million to France
$195 million to Netherlands
$ 40 million to Denmark
1948 $ 16 million to Chile
$ 34 million to India

European Recovery Program

Marshall Plan

Marshall Plan
$13 billion in US aid to Europe
No US love for Japan
Grant, not loan
Conditional

Marshall Plan
Pay for reconstruction
Establish capitalism
Economic security
Open markets to US

Marshall Plan
Pay for reconstruction
Establish capitalism
Economic security?
Open markets to US

1946 HQ in Washington DC
Capitalization of $12 billion
1947 $250 million to France
$195 million to Netherlands
$ 40 million to Denmark
1948 $ 16 million to Chile
$ 34 million to India

Bank for Reconstruction & Development
Development Association
Finance Corporation
Multilateral Investment Guarantee Agency
Centre for Settlement of Investment Disputes

Bank for Reconstruction & Development
Development Association
Finance Corporation
Multilateral Investment Guarantee Agency
Centre for Settlement of Investment Disputes

Developing,

Developing, emerging,

Developing, emerging, newly industrialized World

Money for countries in need
Bad/no credit
Below-market interest

Money for countries in need
Bad/no credit
Below-market interest
Development & investment

Money for countries in need
Bad/no credit
Below-market interest
Development & investment
Positive effects
Education, AIDS, corruption, poverty

AIDS

Structural Adjustment
Conditions on loan/grant
Neo-liberal policy changes

Structural Adjustment
Conditions on loan/grant
Neo-liberal policy changes
Cuts to gov’t spending

Structural Adjustment
Conditions on loan/grant
Neo-liberal policy changes
Cuts to gov’t spending
Privatization

Structural Adjustment
Conditions on loan/grant
Neo-liberal policy changes
Cuts to gov’t spending
Privatization
Deregulation

Poverty Reduction Strategies
Conditions on loan/grant
Neo-liberal policy changes
Cuts to gov’t spending
Privatization
Deregulation

Dramatization

Broke-istan

Structural
Adjustment
$
Broke-istan

Structural
Adjustment
$
Broke-istan I.O.U.

Structural
Adjustment
$ I.O.U.
Broke-istan

Branch
$
Structural
Multinationals
Adjustment
$
Foreign
Interests
Broke-istan

Structural
Multinationals
Adjustment
$
$
Foreign
Interests
Branch Broke-istan

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan
$

Structural
Multinationals
Adjustment
$
$ Foreign
Interests
Branch Broke-istan

Structural
Multinationals
Adjustment
$
$ Foreign
Interests
Branch Broke-istan
$

Branch
Branch $
Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan
$

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan Branch
$ $
Branch
$

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan Branch
$ Branch
$
$

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan Branch
$ Branch
$
$

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan Branch
Branch $ $
$

Structural
Multinationals
Adjustment
$ $
$
$ Foreign
Interests
Branch Broke-istan Branch
Branch

Structural
Multinationals
Adjustment
$
Foreign
Interests
Branch Broke-istan Branch
Branch

Structural
Multinationals
Adjustment
Foreign
Interests
Broke-istan
Branch
Branch
Branch

Structural
Adjustment
Broke-istan

Structural
Adjustment
I.O.U.
Broke-istan

Structural adjustments beneficial?
Poor countries at disadvantage
Generate wealth for multinationals
Lack of success stories

Structural adjustments beneficial?
Blamed for a lot
Difficult to measure success

World Bank created to rebuild after WW2
Acts in poor countries
Money and programmes for development

World Bank directed by rich countries
Insist on structural adjustments
Problems, perhaps damage

Image Credits
Phoosh Curt Carnemark, World Bank
Economics class Portrait of curious boy, Indonesia
Living and sleeping on streets, India
Matthew Bradley Construction workers, China
World Bank PR Vampire’s card Teacher and schoolchildren, Bhutan
Furniture factory, Ghana
Greg Schmigel
Protester March to IMF, Washington DC Ray Witlin, World Bank
Worker in field, India.
Aheavens
Wolfowitz (both) US National Archives via PingNews.com
Robert McNamara Briefing (NARA)
Larsj
Mount Washington Hotel, Bretton Woods, NH, USA Wikipedia
(Adapted from) Industrialized countries 2007
Nick Wiebe
Stephen Lewis