Introduction
The World Bank was established with the main aim of alleviating poverty by providing aid to developing countries. For many years, the institution has given billions of dollars both as loans and grants. However, its effectiveness has been questioned because despite the support, many countries have remained stuck in poverty. The World Bank has been ineffective in its roles because of the poor review of projects, weak implementation of organizational policies, and failure to alleviate extreme poverty.
The World Bank’s Effectiveness
The Bank has failed to alleviate poverty on many fronts. In 2007, the corporation gave Tanzania technical and financial aid to the tune of $1.42 billion to implement the urbanization of water resource management (Andasu). More than a decade later, the objectives have not been attained, and the program has been described as a failure. The number of Tanzanians that have access to clean drinking water has declined even though the project was implemented (Andasu). This is an example of the Bank’s ineffectiveness with regard to the implementation of its programs. On the contrary, countries like Singapore and Hong Kong have grown exponentially through the support of the organization. For example, their economies have grown so massively that the living standards in those countries are similar to those in developed countries (Andasu). The World Bank has vast resources. However, it has failed in its mission to alleviate poverty, especially in developing countries (Thomas). This has been attributed to power distribution issues. Developed countries account for approximately 14% of the global population. However, they make the major decisions that determine the distribution of resources.
The Bank has failed in the implementation of policies. Third-world countries have huge debts primarily due to the organization’s ineffective structural measures. They include the development of exports, the privatization of public companies, and the opening of markets through the elimination of customs barriers (Andasu). Open markets create stiff competition between local producers and multinational conglomerates. Moreover, many states have lost control of strategic development elements to the private sectors through the process of privatization. The World Bank main goals is not the alleviation of poverty but the extension of its geopolitical presence in the countries it supports. For example, a World Bank project to improve drainage systems in Nigeria led to the eviction of 9,000 people in Lagos without resettlement (Andasu). The organization has a poor record with regard to the review and implementation of its programs.
The organization’s ineffectiveness can be seen in its initiative of persuading the private sector players like Wall Street to join in the fight against extreme poverty. The main source of funding was the member governments that included developed countries. However, they have become critics. Developing countries are now getting the majority of development money from their financial markets. About 1.3 billion people live in poverty and the organization’s financial resources have dwindled (Thomas). As a result, it is trying to persuade the private sector in the US and other countries to join their programs. Post World War II, the World Bank was effective in spurring economic growth in developing countries. They funded the construction of roads, dams, pipelines and other forms of infrastructure (Chavkin). However, providing aid to dictators, engaging in environmental destruction, and funneling resources to emerging economies led to a change in its fortunes (Chavkin). An investigation conducted by the International Consortium of Investigative Journalists revealed that the World Bank has failed to enforce its policies, thus negatively affecting the poor around the world (Chavkin). Poor review of projects puts citizens in danger and the organization works with governments that violate human rights.
Conclusion
The World Bank’s poor oversight and a lack of proper policy enforcement rendered the organization ineffective. Despite its numerous projects in developing countries, millions of people live in extreme poverty. It has been criticized because the major concern is expanding its geopolitical presence in specific nations rather than eradicating poverty. Its dwindling financial resources have lowered its effectiveness and the ability to attain goals.
Works Cited
Andasu, Akhil. “World Bank and Its Failure: Have Global Governance Institutions Failed Developing Countries?” Business Club, 2017, Web.
Chavkin, Sasha, et al. “How the World Bank Broke Its Promise to Protect the Poor”. The Huffington Post, 2015, Web.
Thomas, Landon. “The World Bank is Remaking Itself as a Creature of Wall Street.” The New York Times, 2018, Web.