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The response addresses the queries posted in 1758 words with references.

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The response addresses the queries posted in 1758 words with references.
// The cooperation among nations is very much essential for their growth. The 'Global Financing' fulfils the financial needs of a nation, which supports the development of a nation. As per the instructions, we will discuss about the World Bank. //


The World Bank was established after the IInd world war. When it was established, recession prevailed in the entire world. It manages more than $200 Billion portfolio. It is the largest the public sector lender, which provides short term, as well as, the long term credit to the member nations to overcome the financial crunch. While bank lends money to the members, the money comes with strings attached. The policy prescription by foreign corporation called SAPs, 'Structural Adjustment Policies' bring strings. It says that borrower nation opens its economy for foreign corporation, permission to access the country's worker and environment at bargain basement prices. There are 184 members in the World Bank.

SAP (Structural Adjustment Policies) allows across the border privatization of public owned industries and utilities. It also emphasizes that the Government should cut in the spending and increase expense on the health and education (The World Bank and International Monetary Fund, 2007). Some times, certain nations protest the World Bank polices. They say that World Bank imposes irrelevant policy on them. The World Bank has two closely related entities- the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which provide the loan on low or without interest and donation to countries that have adverse or no access to international credit markets (The World Bank, 2009).

The Role of World Bank in the Global Financing

No nation can fulfill its all the financial needs through its own sources. It has to take help of other nation to satisfy its short term and long term financial need. The World Bank is an institution, which helps all the member nations. If any state has financial requirement, it can take the loan from the World Bank. The World Bank imposes some restriction on the borrower nation.

The World Bank provides the loan at very low 'Interest Rate'. It helps the nation in eliminating the poverty. It also gives the loan for the reconstruction and development of the nations.

So it is a significant institution for the developing nations. The aim of the World Bank is not to earn profit; whereas its aim is to help the poor and needy nations.

// The World Bank is a boon for the poor and developing nations. As per the instructions, we should move further and will discuss the importance of the World Bank in global financing operation. It is only assistance; you are free to add more, if you find it appropriate.//

After the second war, the world economy had ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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