The Mission of the World Bank

Introduction

Multinational organizations are the companies which have extended their products or services in various countries globally. This essay will be focusing deeply on the major multinational organizations like World Bank, and how it generates some fund to benefit less developed and emerging markets. Several multinational organizations have projects and policies which are meant to improve the livelihoods of many people globally (World Bank 2003). On the other hand, they also use their funds on the developing markets in some controversial and complicated ways but in rare cases. For instance, World Bank was established initially to support the reconstruction in Europe after the Second World War, but it has currently expanded its services substantively.

Main body

The World Bank has a mission of reducing poverty to the developing and emerging markets. The services of the World Bank have extended to over 184 countries. There are several sectors which are well known to have received and still receiving support from World Bank. In every year World Bank has a record of releasing $24 billion to support such sectors like agriculture, commerce, education, hospitals, etc. the World Bank has been giving out funds for bricks and mortar projects all with the final aim of improving the economic growth (World Bank 2003).

The Niger country is currently receiving over $300 million from World Bank to address the burning issues of HIV/AIDS and irrigation, more funds are also given to Niger to privatize state projects. Although World Bank is referred to as a bank, no individual persons can have an account or apply for a loan. This bank aims at giving loans, grants and other type of assistance to the developing and transition countries so as to reduce poverty. The multilateral investment guarantee agency is a branch of World Bank which specializes in giving support to private investments in developing countries.

The Organization for Economic Co-operation and Development is another multinational organization which has been extending its funds to support the developing countries. It has a mission of bringing together the government of various countries which have a common aim of adhering to the democracy and are committed to the market economy (Richard, 2009). Through this it turns possible for this organization to assist the developing countries to boost their standards of living, raise employment levels, maintain financial stability, and in supporting sustainable economic growth.

The European Bank for Reconstruction and Development is also a multinational organization which is rated as the largest single investor in eastern and central parts of Europe. It was established in 1991 with an objective of assisting the democratic and market oriented economies. This bank has a history of giving out loans, investments, and supporting both private and public projects with the main aim of improving the economy of the developing nations (Taylor & Francis Group 2004). This bank has contributed much in several projects related to roads and rail networks as well as production of hydrocarbon.

The European Bank for Reconstruction and Development has funded several developing countries, and provision of policies for conservation of environment and energy. Challenges from climate changes become a threat mostly to the developing countries, as it requires much funds and policies to be tackled successfully. That is the reason why the international financial institutions like EBRD volunteers to offer an innovative and long term solutions to the developing countries to have a sustainable growth (Taylor & Francis Group 2004).

Emerging markets are described as the developing countries which are advanced financially. They are marked by several financial structures such as banking systems, stock market, and other bodies which facilitate financial matters. Emerging markets as the same with developing markets have a deep, wide, and highly liquid in its economy and financial structure (Antoine, 2007). The emerging markets have several investment banks and a well structured system of managing the finances. When a country is defined as emerging or developing, it’s always in the state of rapid growth and industrialization in its social and commercial operations.

Conclusion

Less developed markets are those countries whose levels of financial structures and economic growths are below that of an emerging market. There is less advancement financially in a less developed market than in an emerging market. The capital markets and systems of commerce of less developed markets are not advanced. There are no crucial distinctions between emerging and less developed markets as the terms emerging/developing, and less developed means that industrialization is desirable in these countries. These are the countries which are in the process of advancing economically (Antoine, 2007). These are the reasons why the industrialized nations are creating a way to use their funds to assist in supporting developments of various sectors in these nations. The less developed and developing nations all constitute to the part of the developing world, and are late in creating an industrialized base. There are some common features which are found in both emerging and less developed markets. In both nations there are low national income, high level of unemployment, and rapid population growth. These are third world countries which rely on importing capital goods from the developed nations.

Reference List

Antoine, W. (2007). The Emerging Markets Century: How A New Breed of World-Class Companies Is Overtaking The World, Free Press.

Richard, W. (2009). The Organisation for Economic Cooperation and Development. 

Taylor & Francis Group. (2004). Europa World Year, Book 1, Taylor & Francis.

World Bank. (2003). A guide to the World Bank. World Bank Publications.