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Pazza's avatar

The World bank, a force for good, or a global control mechanism?

Asked by Pazza (3094 points ) December 18th, 2009

Since I never studied economics (they didn’t teach us in school by the way!), I really shouldn’t have an opinion on it, apparently its not allowed!

So over to you mighty flutherers, what does the world bank do?

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16 Answers

grumpyfish's avatar

So. The World Bank provides capital loans to developing countries with the goal of reducing poverty?

I would agree that they maybe don’t always do their job correctly, they’re not trying to control the global markets, nor can they really.

The IMF I think is the organization you’re looking for =)

CMaz's avatar

No question… Global control.

Ria777's avatar

you can’t neatly categorize both things as just good or just bad. (note that I don’t know enough to give a more informed response. I meant as a general rule.)

Corporate_Avenger's avatar

The Federal Reserve is an American institution that is autonomous and answerable to no other governing body other than the appointment of it’s head by congress. If there is a global governing body that is headed by the U.N. it will without a doubt become a force to inflict retributive strikes against perceived enemies, ie., the United States and Israel. It will be the financial arm of the United Nations “Peacekeeping Taskforce”.

Pazza's avatar

@Corporate_Avenger
So, if a country isn’t doing as the UN wants, they will task the global governing body to impose sanctions?

(when you say global governing body, do you mean financial?)

Corporate_Avenger's avatar

If there were a global financial governing body, headed by the U.N., yes, I would say that may very well take place.

ragingloli's avatar

you know that the US is part of the UN (and not a weak part either) and will with almost absolute certainty veto any attempt at imposing sanctions against either the US or Israel (even if those sanctions were appropriate and just, which you seem to think is impossible)?

Pazza's avatar

@Corporate_Avenger
Do you think in that circumstance that it would be a force for bad if the country had no ties to the UN and was minding its own buisness?

Pazza's avatar

@ragingloli
I have no doubt.

Corporate_Avenger's avatar

@ragingloli – If it were a separate arm, it wouldn’t make a whole lot of difference. Again, I direct your attention to the Federal Reserve. If we as Americans cannot get the an American institution to allow an audit of its books, what chance do we stand against an organization like the U.N., should they like to put the screws to us. Collectively, it members have no love for the United States and most of them would love to see us fall. BTW, the U.S. only has veto power in the General Assembly, not in every committee and subcommittee, unless the results of a committee come before the floor of the General Committee.

ragingloli's avatar

@Corporate_Avenger
The GA’s resolutions are nonbinding statements about the consensus of the member states. E.g. they can not be legally enforced.
What really counts for sanctions is the security council, where the US has veto power. Moreover, as a voting power in the IMF, the US has over 17% of the votes, and major decisions, such as “putting the screw to you” require an 85% supermajority, which effectively means the US can block any such decision on its own, even if all others are against them.

Pazza's avatar

@ragingloli
I was under the impression that the world bank was ultimately an American bank, or controlled by persons living in the US?

Wouldn’t this give the US more power?

ragingloli's avatar

@Pazza
I think that was directed at CA, but yes, the chairman of the world bank is traditionally appointed by the US, being the largest shareholder in it. And just like the IMF, the world bank’s decisions require an 85% majority, which means, even there, with its 16% share, the US can block any decision it wants.

Pazza's avatar

Not as learned as Mr Perenti by any stretch of the imagination, but I lean very sharply to what he has to say.

http://video.google.co.uk/videoplay?docid=6573660441809242121&ei=JQosS6LZIpjD-QaBuqjVAw&q=michael+perenti&hl=en#

“almost the entire world is capitalist, and almost the entire world is poor!”

ragingloli's avatar

@Pazza
He’s good.

arpinum's avatar

The World Bank Has good intentions. Beg for aid money, then spend it. The problem has been that they don’t effectively spend the money, nor do they attempt to measure how well the money is spent. Their energies seem to have gone into begging for money, touting sexy aid programs which are of little, if any benefit, and tout their success based on how much money they dole out, not how effective that spending is.

Global control, look at the history of the IMF, though I think they quit most of that stuff after the USSR fell. Not really sure about their loan evaluation process now.

AGOA should be your current target for global control (though it restricts itself to Africa).

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