The World Bank was created initially as the International Bank for Reconstruction and Development in the year 1944 along with half partner, the International Monetary Fund. These two international organizations were together known as ‘Bretton Woods’ twin sisters “. It was decided that the international bank would be assisting in the economic reconstruction of the damaged European economies during the establishment.
It was in the year of 1946, the international bank has its career launched as the multilateral development bank. Since that period IBRD was known to be the World Bank (World Bank, 2017). The headquarters of the World Bank is situated in Washington which is located opposite to the building of IMF and it is also located next to the White House. Membership in the IMF is a prerequisite for obtaining membership in the World Bank (Axelrod & VanDeveer, 2014).
The bank assists in the development and construction of the territories of the members by easing the investment of capital for constructive purposes. The bank also assists and promotes private investment and the long-term growth of BOP equilibrium and international trade using participation or guarantees in international investment and loans (Lin & Strasser, 2014).
The World Bank arranges the loans guaranteed or made by itself which facilitates urgent and more useful projects to receive preference. The bank facilitates fiancés to the projects from its in-house funds and capital that are raised by it including that of its members. The World Bank leads in providing expertise and advice as it gives more importance to the institutional infrastructure and technical assistance (Bosire & Lynch, 2014). With global development, the World Bank has been emphasizing more on this aspect instead of financial resources. Therefore, it is also called the “Knowledge Bank” (World Bank, 2017). The objectives and purpose of the bank are on the verge of constant change by the changing trends in the economy and financial sectors in the world (Ibsen, 2015).
The World Bank is supposed to have a very significant and defining role in the promotion and protection of international laws. The World Bank recognizes the expression of its role as an important organization of the UN which has effective participation in the establishment of international laws. As per Bosire & Lynch, the challenges and issues regarding the establishment of international laws are daunting and need a firm and wide alliance at the international level to address them. In the past decades, various binding instruments associated with international laws have been adopted, and a sequence of mechanisms that assist in monitoring the observance and establishment of international laws (Bosire & Lynch, 2014).
One of the most important priorities of the World Bank is to strengthen the executive and technical cooperation programs which envision observing the international standards and norms that get reflected in the legislation and practice of internal laws by the United Nations. According to Ng, Padilha & Pallis, the World Bank plays an important role in the promotion of international laws and in the construction and strengthening of international laws and policies through its activities in the countries where it operates (Ng, Padilha & Pallis, 2013). Focusing on the operations of the Bank, the most significant measure of the success of the bank would include minimizing poverty (Capannelli & Tan, 2014).
As per Sawer & Turner, the World Bank aims at creating an environment for countries to abide by international laws. Indeed, the scope of development is all-encompassing that demands the identification of political, economic, cultural, social, and civic rights (Sawer & Turner, 2016). This approach boosts the legal dimension of the strategies implemented by the World Bank that concentrates on, strengthening the governmental and democratic institutions along with other aims and objectives of the World Bank (Durand & Fournier, 2015). This perspective provides the role of international laws as empowering the legal and governmental institutions as obvious. The conflicts and various unwanted crimes that continue to mar humanity and pose threats and barriers to the development efforts of many countries can be prevented by protecting these international laws (Ibsen, 2015).
The World Bank believes that facilitating the conditions for the establishment and protection of international laws is an irreducible and central objective of security. By prioritizing international security for every country across the globe as the very basis of the approach of the Bank regarding security, the Bank assists countries in every part of the world to build lives with security. It has been less anticipating the articulation of its role in the promotion and abiding by the international laws of the member countries (Gomez‐Mera & Molinari, 2014).
The World Bank has been a specialized agency of the United Nations that promotes international security and laws in its member countries. The World Bank has Articles of Agreement that set out its wide scope of activity regarding international laws and security (Gomez‐Mera & Molinari, 2014). The Bank also establishes guidelines regarding the limit of international security. Indeed, some aspects of international laws are not included in the international laws. But the approach of the World Bank regarding the proliferation and regimes of international laws advances an interconnected and comprehensive vision of the internal security of the member countries.
No aspect of internal security can be assured without a strong, independent, and accessible judiciary. The World Bank has recognized the importance of efficient and open courts to exist along with intensively shared growth in the economy, contracts of which must be enforced, the rights regarding the property must be secured and protected, and the domestic and foreign investors need to have confidence in the legal security of their investments. However, the legal system executes more than this.
The legal and judicial system of any country should have the ultimate guarantee of equality under the law between the poor and the weak and the powerful, the citizen and the state. The eradication of this aspect would lead to theft and corruption that will undermine the stability of the societies as well as the integrity of the economies that are members of the World Bank and the world as a whole. The World Bank, however, assists with the projects regarding judicial reforms which remains the area in which it has obtained limited resources along with a wide scope of learning.
Axelrod, R.S. and VanDeveer, S.D. eds., 2014. The global environment: institutions, law, and policy. CQ Press.
Bosire, L.K. and Lynch, G., 2014. Kenya’s Search for Truth and Justice: The Role of Civil Society. International Journal of Transitional Justice, 8(2), pp.256-276.
Cantoni, D. and Yuchtman, N., 2014. Medieval universities, legal institutions, and the commercial revolution. The Quarterly Journal of Economics, 129(2), pp.823-887.
Capannelli, G. and Tan, S.S., 2014. Institutions for Asian Integration: Innovation and Reform. In The Political Economy of Asian Regionalism (pp. 143-167). Springer Japan.
Durand, C. and Fournier, S., 2015. Can Geographical Indications Modernize Indonesian and Vietnamese Agriculture? Analyzing the Role of National and Local Governments and Producers’ Strategies. World Development.
Gomez‐Mera, L. and Molinari, A., 2014. Overlapping institutions, learning, and dispute initiation in regional trade agreements: evidence from South America. International Studies Quarterly, 58(2), pp.269-281.
Henrich, J. and Ensminger, J., 2014. Theoretical Foundations: The Coevolution of Social Norms, Intrinsic Motivation, Markets, and the Institutions of Complex Societies. Experimenting with Social Norms: Fairness and Punishment in Cross-Cultural Perspective, p.19.
Lawrence, T.B., Amis, J.M., Munir, K., Hirsch, P. and McGahan, A., 2014. Inequality, institutions, and organizations. Organization Studies, 35(10), pp.1553-1558.
Lin, J. and Strasser, C., 2014. Recommendations for the role of publishers in access to data. PLoS Biol, 12(10), p.e1001975.
Ng, A.K., Padilha, F. and Pallis, A.A., 2013. Institutions, bureaucratic and logistical roles of dry ports: the Brazilian experiences. Journal of Transport Geography, 27, pp.46-55.
Sawer, M. and Turner, A., 2016. Specialized Parliamentary Bodies: Their Role and Relevance to Women’s Movement Repertoire. Parliamentary Affairs, 30, pp.1-15.
World Bank. 2017. World Bank Group – International Development, Poverty, & Sustainability. [online] Available at: http://www.worldbank.org/ [Accessed 26 Apr. 2017].Order Now