ESSAY: evaluate the effectiveness of the world bank in promoting economic growth and development Flashcards
1
Q
Definitions of world bank, growth, development
A
world bank= a financial institution which offers long term loans and support to countries to enhance their economic development
growth=increase in the value of GDP
development= increasing the overall welfare of peoples lives
2
Q
Why world bank may be good?
A
BETTER AT PROMOTING DEVELOPMENT THAN GROWTH
- they provide long term loans to help countries invest into sustainable development projects eg clean energy and solar panels in developing countries
- helps to reduce poverty, offering loans, grants and advice for how people can improve their prosperity collectively
- health care improved, especially fighting against AIDS and malaria in some of the poorest countries
- helping after a civil war or natural disaster to help rebuild parts of poor countries
3
Q
Why the world bank may not be so good?
A
Its focuses are based on sustainable development and long term help in developing countries, rather than helping short term cyclical growth problems in developed countries
- IMF may be better in promoting growth than development, as they provide short term loans to help countries get over balance of payment problems or during recessions
- they can help with inequality and poverty but are more centred towards helping in the short term with loans that they expect to get paid back
- less likely to help in developed countries where demand side polices might be more effective
4
Q
What it depends on??
A
- are they having growth problems or development problems
- is it long term/structural, or cyclical deficiency
- how developed the country is
