International Finance Essay

1292 words - 5 pages

IntroductionWorld Bank History of the World Bank with various functions Pro as well as Con, unfortunately; the Con outweighs the Pro, because of poor leadershipConceived during World War 2 at Bretton Woods, New Hampshire, the World Bank initially helped to rebuild Europe after the war. The World Bank's first loan of $250 million was to France in 1947 for post-war reconstruction.The area of reconstruction has remained an important focus to the Bank's work, given the natural disasters, humanitarian emergencies, and post conflict rehabilitation needs that affect developing and transition economics.Today the World Bank has sharpened its focus on poverty reduction as the overreaching goal of all its work. The World Bank once had a homogeneous staff of engineers and financial analysts-based solely in Washington, D.C. Today it has a multidisciplinary and diverse staff including economists, public policy experts, and social scientists, 40 percent of the staff-based in country offices.The complexity of the bank is bigger, broader, and more complex. It has become a Group, encompassing six closely associated development institutions:1.The international Bank for Reconstruction and Development (IBRD)2.The International Development Association (IDA)3.The International Finance Corporation (IFC)4.The Multilateral Investment Corporation (IFC)5.The Multilateral Investment Guarantee Agency (MIGA) and6.The International Settlement of Investment Disputes (ICSID)More than ever before, the Bank is playing an important role in the global policy arena. It has effectively engaged with partners and clients in complex emergencies from post-conflict work in Bosnia, to post-crisis assistance in East Asia to post-hurricane clean up in Central America to post-earthquake support in Turkey and Kosovo and East Timor.1948 to presentIn Washington, there is the headquarters of both the World Bank and the International Monetary fund. They face each other on the same street. The issue comes to mind of whom exactly controls them.In order to find that answer we look back to after World War I. At this time, the moneychangers were attempting to consolidate the central banks under the guise of peacemaking. To stop future wars they put forward the formation of a world central bank, and named it the Bank of International Settlements, a world court called the World Court in the Hague, and a world executive for legislation called the League of Nations.In 1966, a book entitled Tragedy and Hope, Carrol Quigley writes:"The powers of financial capitalism had [a] far-reaching [plan], nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole." "The system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in meetings and conferences.""This was the apex of the system, it was the Bank of International...

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