An international organization that provides long term loans, grants, and technical assistance, to help developing countries implement their poverty reduction strategies. As such, World Bank financing can be used in many different areas, from reform of health and education sector, to environmental and infrastructure projects, including dams, roads, and national parks.
Commencing operations on June 25, 1946, it approved its first loan on May 9, 1947 ($250m to France for postwar reconstruction, in real terms the largest loan issued by the Bank to date).
Together with five affiliated agencies created between 1956 and 1988, the Bank is part of the World Bank group. The Bank's headquarters in Washington, D.C are presently headed by president (1995-2005) James D. Wolfensohn. The Bank also serves as of several Implementing Agencies for the Globel Environment Facility (GEF).
Though repeatedly relied upon by impoverished governments around the world as a contributor of development finance, the Bank has been criticised by opponents of corporate "neo-colonial" globalization for undermining the national sovereignty of recipient countries through its pursuit of economic liberalisation.
One of the issues arising on repayment policy is that some loans were provided to dictators and military juntas even though the dictators did not have a popular mandate to represent the people. Loans used inefficiently, to enrich a very small part of the population, are still to be repaid by the entire population - even though the former leaders are out of power. A similar argument could be applied to bilateral loans made in these periods too.
