The World Bank's objective "a world free from poverty" and the IMF dream "a world free from financial crisis" have gained recognition throughout the globe. There is no doubt that these are crucial and daunting goals and no financial institution, other than these two, dares to dream of such objectives. However, today, the World Bank's future is in a crisis over the pay scandal involving Paul Wolfowitz, former President of the World Bank and on the other hand, the impact of IMF loans has been widely debated, giving both the appearance of having lost their age-old glory. Now a spate of crises—ranging from financial to institutional to moral—is diluting the integrity and impartiality of these two global institutions.
The Bank is providing assistance in the form of billions of dollars to developing countries such as India, China, Africa and Latin America. Critics say that the Bank has poured hundreds of billions of dollars into Africa over the years, but it has had very little economic impact if one goes by the GDP growth rate and annual output of goods and services. The Bank claims that "recognizing that any program to assist in controlling corruption worldwide, needs to start with the example of best practices at home, the Bank has taken initiatives to stamp out conflicts of interest and any possible corrupt practices among its own staff." |
