ASSIGNMENT: 2

Course Title:
International Business

. Submitted By:

Ali Raza
Ismael Umer

SuSbmitted To:
. Dr. Hussnain Kamboh

Roll No:
78
76

BBA EVENING SECTION

 TABLE OF CONTENTS
Topic: ................................................................................................................................................3
Introduction: .....................................................................................................................................3
Function: ...........................................................................................................................................3
Objective: ..........................................................................................................................................3
Advantages: .......................................................................................................................................4
Disadvantages: ..................................................................................................................................5
Topic:
Explanation of World Bank with its introduction, function, objective, advantages and
disadvantages.

Introduction:
The World Bank is an international financial institution founded in 1944 to reduce global poverty
and support development. Comprising two main entities—the International Bank for
Reconstruction and Development (IBRD) and the International Development Association
(IDA)—it provides financial and technical assistance to developing countries. Its mission is to
end extreme poverty and promote shared prosperity by funding projects that improve
infrastructure, education, health, and governance. The World Bank operates through a unique
partnership of member countries, and its funding and expertise aim to tackle global challenges
and foster sustainable economic growth.

Function:

The World Bank plays a crucial role in fostering global development and reducing poverty
through a multifaceted approach. It provides financial support to developing countries via loans,
grants, and credits, enabling them to undertake projects that improve infrastructure, health,
education, and governance. In addition to financial resources, the World Bank offers technical
assistance, helping countries design and implement effective development programs and
strategies. Its extensive research and data collection efforts generate valuable insights into
economic trends, poverty, and development challenges, guiding policy decisions. By focusing on
capacity building, the World Bank strengthens institutions and systems in developing countries,
enhancing their ability to manage projects and policies sustainably. It engages in policy dialogue
with governments and stakeholders to shape and refine development strategies. The institution
also offers risk management tools to mitigate economic and environmental risks. Through
partnerships with international organizations, private sector entities, and civil society, the World
Bank leverages additional resources and expertise. Monitoring and evaluation processes ensure
that projects are effective and that resources are utilized efficiently. Additionally, the World
Bank facilitates knowledge sharing, enabling the exchange of best practices and innovations. In
times of crisis, such as natural disasters or economic shocks, it provides rapid support to help
countries recover and rebuild. Overall, the World Bank’s diverse functions work synergistically
to promote sustainable development, enhance global economic stability, and improve the quality
of life for people in developing countries.

Objective:

The World Bank’s objectives are centered on fostering global development and reducing poverty
through a comprehensive and targeted approach. The primary goal is to end extreme poverty by
drastically reducing the number of people living on less than $2.15 a day, focusing on the
world’s poorest nations. Parallel to this, the World Bank aims to promote shared prosperity by
improving the incomes and living standards of the bottom 40% of the population in developing
countries, ensuring equitable economic benefits. Sustainable development is another key
objective, with a focus on supporting projects that protect the environment and utilize natural
resources responsibly. Enhancing global economic stability is crucial, as the World Bank seeks
to build resilient economies capable of withstanding and recovering from economic shocks.
Investing in human capital through improved education and health services is also a priority,
aiming to elevate the quality of life and expand opportunities for individuals. The development
of critical infrastructure, such as roads and water systems, is essential for economic growth, and
the World Bank supports these initiatives. Promoting good governance by strengthening
institutions, improving public sector performance, and ensuring transparency and accountability
is vital for effective development. Economic integration is encouraged to help developing
countries participate more fully in the global economy. Additionally, fostering innovation and
technology adoption addresses pressing global challenges and drives progress. Lastly, building
partnerships with international organizations, governments, and the private sector amplifies the
impact of development efforts. These objectives collectively guide the World Bank’s mission to
create a more equitable, sustainable, and prosperous world.

Advantages:

• Provides financial assistance to developing countries to fund their development projects

• Offers policy advice and technical assistance to help countries develop their economic and
social policies

• Supports poverty reduction and economic growth by investing in infrastructure, healthcare,

education, and other social sectors

• Helps countries achieve the United Nations' Sustainable Development Goals (SDGs) by
providing funding and expertise

• Facilitates international cooperation and knowledge sharing among countries

• Provides a platform for developing countries to access international markets and trade
opportunities

• Helps to reduce debt burden of developing countries by providing debt relief and restructuring

• Supports private sector development and investment in developing countries

• Provides emergency assistance to countries affected by natural disasters and conflicts

• Enhances transparency and accountability in government spending and economic policies

• Fosters good governance and anti-corruption efforts in developing countries

• Supports environmental sustainability and conservation efforts in developing countries

Disadvantages:

• Criticized for perpetuating poverty and inequality in developing countries through its lending
practices
• Often prioritizes economic growth over social and environmental concerns
• Has been accused of imposing conditionality on its loans that can harm local economies and
environments
• Has been criticized for its lack of transparency and accountability in decision-making and
project implementation
• Has been accused of ignoring the needs and concerns of local communities in its development
projects
• Has been criticized for its role in promoting neoliberal economic policies and privatization of
public services
• Has been accused of not doing enough to address the root causes of poverty and inequality,
such as structural issues and political instability
• Has been criticized for its limited focus on addressing climate change and environmental
degradation
• Has been accused of not doing enough to promote social justice and human rights in
developing countries
• Has been criticized for its lack of representation and participation from developing countries in
its decision-making processes
• Has been accused of perpetuating debt dependency and increasing debt burden for developing
countries
• Has been criticized for not providing adequate funding for development projects, especially in
the poorest and most vulnerable countries