Wednesday, April 3, 2013
Financial Crisis: There Is Always Hope
What the World Bank Is Doing http://www.worldbank.org/financialcrisis/bankinitiatives.htm
Recovery from the global financial crisis remains fragile. Persistent risks to economic health include high unemployment, debt and low growth in developed countries, and access to financing for developing countries. In addition, food prices in 2012 remain volatile and near their 2008 peak, and millions of people in the Horn of Africa and Sahel regions face food shortages as a result of drought.
Since the onset of the financial crisis in 2008, the World Bank Group has committed more than $280 billion to developing countries, including record commitments in education, health, nutrition, population, and infrastructure, providing much-needed investments in crisis-hit economies:
Throughout the crisis, the Bank Group has helped keep children in school, health clinics open, and microfinance loans flowing to women. The Bank Group’s commitments for social protection for the poorest and most vulnerable—including school feeding and cash transfer programs, such as Mexico’s Oportunidades -- reached more than $9 billion in 72 countries during fiscal years 2009-2011 (FY09-11). That figure is seven times the pre-crisis level of $1.2 billion.
Although the global financial crisis is still an issue, there are some positive areas that are being recognized. The World Bank has been providing an effort towards the development and support for developing countries and those in need. What can we take from this? Does this show progress in the pursuit of a better global economy? Should the World Bank Group consider using money to help in other areas as well?
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I found the agriculture aid section most interesting while reading this article. This link, http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21928797~menuPK:34480~pagePK:64257043~piPK:437376~theSitePK:4607,00.html, provided more information on this subject. It is better that the World Bank aid seems to focus on increasing human capital, as opposed to just dumping food/money into a developing country.
ReplyDeleteWhat the World Bank is going in terms of helping those developing countries in need is great. I think it's a great start in trying to help those in need to get them on the right direction moving forward. That being said, it's the people and local government that needs to take action into their own hands once helped out by the world bank. Countries cannot just rely on the World Bank for financial needs. Once gifted by the opportunity to succeed its the local governments job, as well as the people to contribute to their economy in order for prospering.
ReplyDeleteI agree with Jake. This is an example of leading a horse to water, the world bank can only help people so much until people need to start being able to rely on themselves. It is great to have that kind of aid from the world bank but if the aid isn't being used efficiently then it doesn't do very much good.
ReplyDeleteI totally agree with jake and shane on this one, I am all for helping those in need, but the local governments and the people have to step up after they are aided and/or be shown different ways to improve. Just like the saying goes, give a man a fish and he eats for a day, show a man how to fish and he eats for a lifetime.
ReplyDeleteI agree with jake, shane, and ryan on this. It is great that they are spending money to help countries in need, however it would be ideal if some of the money could be spent to teach and implement changes in the local governments. Then future funds could be used more efficiently and could be spread out among even more countries.
ReplyDeleteA similar problem was seen during the eurozone bailouts, as Greece was bailed out, yet there were not enough economic policy changes and eventually another bailout was needed.