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Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)

Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

 

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  1. Avatar Chinekezie Oluchi Faustina says:

    Name: Chinekezie Oluchi Faustina
    Reg no: 2018/249787
    Dept.: Economics (major)
    Course: Eco 362

    Robert S. McNamara
    5th President of the World Bank Group, 1968 – 1981

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook.

    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.

    Role of the World Bank

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    War on Poverty

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  2. Avatar OCHONWU LOTACHI VIVIAN says:

    OCHONWU LOTACHI VIVIAN
    2018/248806
    ECONOMICS
    Assignment on 362
    The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss ?
    Answer :The eight Millennium Development Goals, embraced by 189 countries in 2000, are now widely accepted as a framework for measuring development progress. The goals focus the efforts of the world community on achieving significant, measurable improvements in people’s lives. They establish yardsticks for measuring actions, not just of developing countries but of the rich countries whose aid programs and trade policies affect the developing world. The MDGs also guide the World Bank and other multilateral institutions that help countries shape and implement development policies.
    Goal 1. Eradicate extreme poverty and hunger
    Goal 2. Achieve universal primary education
    Goal 3. Promote gender equality and empower women
    Goal 4. Reduce child mortality
    Goal 5. Improve maternal health
    Goal 6. Combat HIV/AIDS, malaria, and other diseases
    Goal 7. Ensure environmental sustainability
    Goal 8. Develop a Global Partnership for Development
    To meet the MDGs, a new consensus between developing and developed countries must be forged. Developing countries must improve their investment climate, quality of governance, and institutional capacity to provide public services and empower the poor. They also must undertake a sequenced opening up to foreign investment and trade. Countries willing to make necessary reforms should have the resources they need to tackle illiteracy, poverty, and disease. Working with the international financial institutions, developed countries must also lower trade .All over the world, in many different ways, countries have rolled back poverty and built the conditions for sustained, equitable growth. How can we find out about the implementation factors that triggered success and foster those approaches on a global scale to shrink poverty in the many parts of the world where it remains widespread? The purpose of this conference is to find out.
    Aid alone is not the answer. In spite of improvements in aid allocation and its effective use, many developing countries have failed to reduce poverty, often because of gaps in knowledge and capacity that keep them from adapting to their own circumstances the successful practices discovered and applied elsewhere.
    In a series of United Nations conferences during the 1990s the international community established a set of common goals, the Millennium Development Goals. These 25-year targets, to be achieved between 1990 and 2015, are the reason you and I have gathered here in Shanghai.As countries attempt to extend successful approaches to new places, or sustain them over time, they must be able to learn from past experience, to adapt an approach that worked in one area to local circumstances, to maintain programs through changes in political administration, and to communicate lessons of experience effectively.
    Creating an adequate investment climate and promoting social inclusion both appear necessary to sustain growth and reduce poverty. Creating an investment climate requires creating the conditions for markets to exist and regulate their functions effectively in order to correct market failures. Improving governance, promoting openness to trade and investment, and creating the appropriate infrastructure are among the main factors that contribute to facilitating investments. Social inclusion refers to the conditions which enable poor people to participate in a well-functioning socioeconomic system and which promote equity to prevent jeopardizing the growth process in the long run. Facilitating access of the poor to assets, services, and markets is necessary to ensure inclusive and sustainable development.widely shared.
    To enable poor men and women to play their roles effectively requires an empowering approach to development. An empowerment approach to development sees poor people as key resources and partners; it taps into their knowledge, skills, vigilance, and deep motivation to move out of poverty. Nobody has more at stake in poverty reduction than poor people themselves. The challenge is to remove obstacles from their way, invest in their assets and capability, and increase their access to opportunity.
    The millions of people who have participated in, and benefited from, fundamental shifts in development policy have a wealth of information to share. The World Bank and the government of China expect great things to emerge from the Shanghai conference.

  3. Avatar OCHONWU LOTACHI VIVIAN says:

    OCHONWU LOTACHI VIVIAN
    2018/248806
    ECONOMICS
    Assignment on 362

    The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss ?
    Answer
    The eight Millennium Development Goals, embraced by 189 countries in 2000, are now widely accepted as a framework for measuring development progress. The goals focus the efforts of the world community on achieving significant, measurable improvements in people’s lives. They establish yardsticks for measuring actions, not just of developing countries but of the rich countries whose aid programs and trade policies affect the developing world. The MDGs also guide the World Bank and other multilateral institutions that help countries shape and implement development policies.

    Goal 1. Eradicate extreme poverty and hunger

    Goal 2. Achieve universal primary education

    Goal 3. Promote gender equality and empower women

    Goal 4. Reduce child mortality

    Goal 5. Improve maternal health

    Goal 6. Combat HIV/AIDS, malaria, and other diseases

    Goal 7. Ensure environmental sustainability

    Goal 8. Develop a Global Partnership for Development

    To meet the MDGs, a new consensus between developing and developed countries must be forged. Developing countries must improve their investment climate, quality of governance, and institutional capacity to provide public services and empower the poor. They also must undertake a sequenced opening up to foreign investment and trade. Countries willing to make necessary reforms should have the resources they need to tackle illiteracy, poverty, and disease. Working with the international financial institutions, developed countries must also lower trade .

    All over the world, in many different ways, countries have rolled back poverty and built the conditions for sustained, equitable growth. How can we find out about the implementation factors that triggered success and foster those approaches on a global scale to shrink poverty in the many parts of the world where it remains widespread? The purpose of this conference is to find out.

    Aid alone is not the answer. In spite of improvements in aid allocation and its effective use, many developing countries have failed to reduce poverty, often because of gaps in knowledge and capacity that keep them from adapting to their own circumstances the successful practices discovered and applied elsewhere.

    In a series of United Nations conferences during the 1990s the international community established a set of common goals, the Millennium Development Goals. These 25-year targets, to be achieved between 1990 and 2015, are the reason you and I have gathered here in Shanghai.As countries attempt to extend successful approaches to new places, or sustain them over time, they must be able to learn from past experience, to adapt an approach that worked in one area to local circumstances, to maintain programs through changes in political administration, and to communicate lessons of experience effectively.

    Creating an adequate investment climate and promoting social inclusion both appear necessary to sustain growth and reduce poverty. Creating an investment climate requires creating the conditions for markets to exist and regulate their functions effectively in order to correct market failures. Improving governance, promoting openness to trade and investment, and creating the appropriate infrastructure are among the main factors that contribute to facilitating investments. Social inclusion refers to the conditions which enable poor people to participate in a well-functioning socioeconomic system and which promote equity to prevent jeopardizing the growth process in the long run. Facilitating access of the poor to assets, services, and markets is necessary to ensure inclusive and sustainable development.widely shared.

    To enable poor men and women to play their roles effectively requires an empowering approach to development. An empowerment approach to development sees poor people as key resources and partners; it taps into their knowledge, skills, vigilance, and deep motivation to move out of poverty. Nobody has more at stake in poverty reduction than poor people themselves. The challenge is to remove obstacles from their way, invest in their assets and capability, and increase their access to opportunity.
    The millions of people who have participated in, and benefited from, fundamental shifts in development policy have a wealth of information to share. The World Bank and the government of China expect great things to emerge from the Shanghai conference.

  4. Avatar Ugwu Cynthia Ugochukwu says:

    NAME: UGWU CYNTHIA UGOCHUKWU
    DEPT: ECONOMICS
    REG NO: 2018/245470
    COURSE TITLE: DEVELOPMENT ECONOMICS 2
    COURSE CODE: ECO 362

    ANSWERS:
    Millennium Development Goals are the international community’s most broadly shared, comprehensive and focused framework for reducing poverty. Drawn from the Millennium Declaration, adopted and agreed to by all Governments in 2000, the MDGs represent the commitments of United Nations Member States to reduce extreme poverty and its many manifestations: hunger, disease, gender inequality, lack of education and access to basic infrastructure, and environmental degradation.
    The MDGs set quantitative objectives to be achieved by 2015. They also drive international development policy by spelling out the responsibilities of rich countries to support poor countries through aid, debt relief and improved market access. The Goals confirmed the importance of the United Nations, with its unique legitimacy and convening power, as the multilateral body best placed to build global coalitions and political action to address global problems. At the Millennium Summit in 2000, the International Conference on Financing for Development in Monterrey in 2002, the UN World Summit in 2005 and other international events, world leaders pledged to establish national policies and strategies needed, and to provide the resources necessary to achieve the Goals. The MDG agenda has become a uniting and organizing principle for the work of the entire international system in the area of development — a testament to the universal buy-in into the Goals. The MDGs also provide a rationale for the United Nations family to work together more coherently and effectively, so as to give countries the support they need to achieve the Goals.
    The stakes are high. If the MDGs are implemented in time in all parts of the globe, 500 million fewer people will be living in extreme poverty and some 300 million fewer will go hungry, while 30 million fewer children will die before their fifth birthday. In addition, about 350 million more people will have access to safe drinking water and a further 650 million more to sanitation. Real economic and social opportunities will open up on an unprecedented scale.
    There is good news, including in sub-Saharan Africa, where the biggest challenges remain. Countries are demonstrating that rapid and large-scale progress is possible when Government leadership, policies and strategies for scaling up public investments are combined with financial and technical support from the international community. Malawi has raised agricultural productivity; primary school enrolment has gone up in Ghana, Kenya, the United Republic of Tanzania and Uganda; Zambia has improved access to basic rural health services; Niger has made strides in large-scale reforestation; Senegal is on track to meet the MDG target on water and sanitation; and malaria incidence has fallen in Niger, Togo and Zambia.
    Yet, at the midpoint between the adoption of the Millennium Declaration and the 2015 deadline for reaching the MDGs, large parts of the world remain off track. Even regions that have made substantial progress, including in Asia, face challenges in areas such as health and environmental sustainability. The number of extreme poor in Asia continues to rise, albeit at a decelerating rate compared to the 1990s. And in sub-Saharan Africa, not a single country is on track to achieve the MDGs by 2015. That is why Secretary-General Ban Ki-moon and I have made it a priority to scale up efforts to reach the MDGs around the world, particularly in Africa.
    A central element of this effort is the MDG Africa Steering Group, which the Secretary-General launched in September 2007, together with the leaders of the UN system and other major multilateral and intergovernmental organizations working for development in Africa, namely the African Development Bank, the African Union Commission, the European Commission, the International Monetary Fund, the Islamic Development Bank, the Organization for Economic Co-operation and Development, and the World Bank.
    Question(2)
    Good Governance is the process of making decisions that bring maximum satisfaction to the people and ensuring participation of all. There are several characteristics of good Governance. Rule of Law is prerequisite for good governance. It implies the absence of arbitrary power and formulation and implementation of well-established laws. Transparency ensures trustworthy working. People must have the right to information regarding government processes and policies while making each and every organ of Government response to the public for their acts making them responsible.

    THE MAJOR HINDRANCES TO GOOD GOVERNANCE IN DEVELOPING NATION’S ARE –
    1.Corruption
    According to Transparency International Report, “Corruption acts to diminish the ability of law enforcement to accomplish its mission. The prevalence of corruption diminished the ability of the law enforcement, adversely affected the judiciary, administration and is delaying the fair functioning of the society.
    2.Inefficiency of Bureaucracy
    Bureaucracy of India is not so efficient in management and administration. The capacity of policy implementation of our bureaucracy is very poor compared to other developing economies
    3.Nepotism and Politicization in Public Administration
    Nepotism is another swearword of our political affairs and administration. Privilege and unfair advantage to the family members, kith’s and kin on public resources is practiced widely, so the mass people are deprived. In addition, Corrupted and inefficient policing increases human rights violation, and false cases.
    4. Improper and non-observance of the rule of law: It is said that laws exist but are applied only in favour of privilege people or class. As a result justices suffer and denied to the common people although that is an important aspect of good governance.
    5. Improper use of resources
    Decentralisation and funding to the local government is not utilized properly and very often diverted to other purposes. So, the target group are not covered properly with the available resources
    6. Poor Planning Strategy
    Improper planning and use of resources result in scarceness in resources like electricity, water and fuel. Besides these, Insurgency, Naxalism and discrimination against the minorities and environmental degradation around this country and problems related to land reforms and tribal welfare also acts as hindrances to good governance. Without good governance, the benefits of public programs will not reach their target recipients, especially the poor. Emphasizing the strengthening of good governance at the national level, including the building of effective and accountable institutions for promoting growth and sustainable human development will remove the hindrances and pave way to good governance

  5. Avatar Onyibor chinedu says:

    Name: onyibor chinedu
    Reg no:2018/248795
    Dept: Economics
    Course:Eco 362

    (1)Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    (Ans)
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done.
    He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

  6. Avatar Nwankwo chidubem pascal says:

    Name : Nwankwo chidubem pascal
    Reg No:2018/245467
    Dept: Economics
    Course: Eco362
    Questions
    : In September 2000, leaders from about 189 nations ratified the Millennium Declaration. The declaration was an unprecedented global commitment and one of the most significant United Nations documents in recent times. It offers a common and integrated vision on how to tackle some of the major challenges facing the world of our time. The declaration has resulted in Eight Millennium Development Goals (MDGs) focused on reducing poverty, improving the quality of peoples’ lives, ensuring environmental sustainability, and building partnerships to ensure that globalization becomes a more positive force for all the world’s people. Also specific targets and indicators have been set and put in place for each of the goals, to be achieved by 2015.
    [05/02, 03:46] Christian Man: In your opinion do you think these goals were achieved? If yes,how? If no, why?
    2. Good governance is good for all nations but Nigeria and many developing countries seem to be far behind in their quest for good governance. Discuss!
    Answers
    Yes ,most of the goals have been achieveddue to the following reasons
    Goal 1: Eradicate extreme poverty and hunger
    Extreme poverty declined significantly in the two decades before 2015. In 1990, nearly half of the people in developing countries lived on less than $ 1.25 a day. By 2015, that share was down to 14 %. Globally, the number of people living in extreme poverty declined by more than half, falling from 1.9 billion in 1990 to 836 million in 2015. The share of undernourished people was almost halved – from 23.3 % in 1992 to 12.9 % in 2016. The number of people in the working middle class – whose purchasing power per person is above four dollars – almost tripled between 1991 and 2015.
    Goal 2: Achieve universal primary education
    The net enrolment rate for primary schools reached 91 % for all developing countries, up from 83 % in 2000. Around the world, about 100 million children of primary-school age did not go to school in 2000. That number dropped to an estimated 57 million in 2015. The greatest improvements occurred in sub-Saharan Africa.
    Goal 3: Promote gender equality and empower women
    In 2015, many more girls were in school than 15 years earlier. As a whole, the developing regions succeeded in eliminating gender disparity in primary, secondary and tertiary education. In Southern Asia, only 74 girls were enrolled in primary school for every 100 boys in 1990. By 2015, 103 girls were enrolled for every 100 boys.
    Goal 4: Reduce child mortality
    The global under-five mortality rate went down by more than half, dropping from 90 to 43 deaths per 1,000 live births from 1990 to 2015. The number of globally reported measles cases was reduced by 67 % in this period. In 2013, about 84 % of children worldwide received at least one dose of measles-containing vaccine. The respective figure for 2000 was 73 %.
    Goal 5: Improve maternal health
    From 1990 to 2015, the maternal mortality declined by 45 % worldwide. Globally, more than 71 % of births were assisted by skilled health personnel in 2014, an increase from 59 % in 1990.
    Goal 6: Combat HIV/AIDS, malaria and other diseases
    The number of new HIV infections fell by approximately 40 % between 2000 and 2013. In June 2014, 13.6 million people living with HIV were receiving antiretroviral therapy (ART) internationally, a huge increase from just 800,000 in 2003. ART averted 7.6 million deaths from AIDS between 1995 and 2013. Over 6.2 million malaria deaths were prevented between 2000 and 2015, primarily of children under five years of age in sub-Saharan Africa. The global malaria incidence rate fell by an estimated 37 % and the mortality rate by 58 %. Between 2000 and 2013, tuberculosis prevention and treatment interventions saved an estimated 37 million lives. The tuberculosis mortality rate fell by 45 % and the prevalence rate by 41 % between 1990 and 2013.
    Goal 7: Ensure environmental sustainability
    Terrestrial and marine protected areas in many regions have increased substantially since 1990. In Latin America and the Caribbean, coverage of terrestrial protected areas rose from 8.8 % to 23.4 % between 1990 and 2014. In 2015, 91 % of the world population had safe drinking water, compared with 76 % in 1990. While 147 countries met the drinking water target, 95 countries met the sanitation target, and 77 countries met both.

    Goal 8: Develop a global partnership for development
    Rich nations’ official development assistance (ODA) increased by two thirds in real terms from 2000 to 2014, reaching $ 135.2 billion. In 2014, Denmark, Luxembourg, Norway, Sweden and the United Kingdom exceeded the UN target of spending 0.7 % of gross national income on ODA.
    All summed up, the MDGs led to considerable progress around the world. To keep up the momentum, the UN adopted the Sustainable Development Goals (SDGs) as the follow-up agenda.

    2.
    Over the decades, there has been a recurrent and sustained argument that the Nigerian state, like its counterparts in Africa and other countries of the developing world, underperforms due to lack of state capacity1 to deal with the contemporary complexities of governance. The nature of the state, the public institutions through which legitimate power is exercised and enforced, is germane to the study of politics in any state (Smith, 2003, p. 108). Therefore, the issue of state capacity is central to understanding the African socioeconomic malaise. Clapham (2002) draws particular attention to the inherent challenges of state maintenance in weak societies and offers probable explanations to states’ incapacity, especially during the era of globalization. Of greater concern is his identification of structural and contextual variables that enhance the vulnerability of most African states like Nigeria.  examines the African sociopolitical and economic realities and attributes state’s failures to Africa’s historical heritage: history of weak political leadership, corruption, conflicts, and wars. There is no controversy about the series of symptoms of state failure and state collapse in Africa; the point of debate remains the extent of state’s incapacity displayed by the Nigerian state.
    The “petroleum-rich” Nigerian state, confronted by sociopolitical instability, high degree of corruption, mass hostility to the “public,” and poor macroeconomic management, continue to display the attributes of a state in crisis. Successive governments in Nigeria, like in many African states, lack the political will to initiate or sustain policy or structural transformation, or to embark on sound economic reform to reposition the state for greatness . No matter the upsurge of globalization and the prospects of the borderless state, the expectation is for states to take a decisive role in economic transformation, growth, and development and jettison every act that is inimical to improved livelihood as well as socioeconomic and political development of the country. With the weakness of the Nigerian state and its ineffectiveness, it has become challenging to eradicate impoverishment, engage in infrastructural development, and stem the tides of insurgency and terrorism, which have the potency to derail the country’s moderate political development.
    to the African idea of communalism among such others, should be people centered. Deploying, as a launch pad, the well-known African philosophical and sociopolitical thoughts enshrined in Omoluabi, Ujamaa, and Ubuntu, the article addresses how Africa, particularly Nigeria, has missed the “state capacity train” and also how self-interest, as against public interest, has become the dominant ethos in the governance of most African countries. The article further queried, What are the indicators of governance crisis in Nigeria? What are the factors responsible for governance crisis in Nigeria? These are the main questions addressed in the article.
    Without doubt, the Nigerian state stood in between exhibiting attributes of state collapse and state failure. According to, the Nigerian state has degenerated to the point where it is unable to provide minimal social security for its vulnerable population. This explains why the mass of the people continues to regard a low pumping price of oil as a social security and birthright. The article takes a holistic approach to understanding the role of successive political leadership in Nigeria and assesses their responses to the pressures and demands for sustainable democracy.

  7. Avatar Phil-eze Chidiogo says:

    DEVELOPMENT IN 1960s AND 1970s AND WORLD BANK LENDING

    The World Bank was created at the 1944 Bretton Woods Conference, along with the International Monetary Fund (IMF). The president of the World Bank is traditionally and Americans. The World Bank and the IMF are both based in Washington, D.C., and work closely with each other.
    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.
    With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    World Bank lending was intended to foster a welcoming environment for factors that leads to economic growth. In the 1960s and 1970s, more countries joined the ranks of developing nations as newly independent states emerged out of the grips of colonialism. Between 1973 and 1980, the World Bank led by Robert MC Namara, became a significant factor in the push to address social welfare in developing countries.

  8. Avatar Ugochukwu Ugonnaya Judith says:

    Name: Ugochukwu Ugonnaya Judith
    Regno: 2018/244297
    Dept: Social Sciencecience Education

    Globalization is defined as the increase in the flow of goods, services, capital, people, and ideas across international boundaries, according to the online course Global Business, taught by Harvard Business School Professor Forest Reinhardt.
    “We live in an age of globalization,” Reinhardt says in Global Business. “That is, national economies are ever more tightly connected with one another than ever before.”
    ADVANTAGES OF GLOBALIZATION
    1. Economic Growth
    It’s widely believed that increased globalization leads to greater economic growth for all parties. There are several reasons why this might be the case, including:
    * Access to labor: Globalization gives all nations access to a wider labor pool. Developing nations with a shortage of knowledge workers might, for example, “import” labor to kickstart industry. Wealthier nations, on the other hand, might outsource low-skill work to developing nations with a lower cost of living to reduce the cost of goods sold and pass those savings on to the customer.
    * Access to jobs: This point is directly related to labor. Through globalization, developing nations often gain access to jobs in the form of work that’s been outsourced by wealthier nations. While there are potential pitfalls to this (see “Disproportionate Growth” below), this work can significantly contribute to the local economy.
    * Access to resources: One of the primary reasons nations trade is to gain access to resources they otherwise wouldn’t have. Without this flow of resources across borders, many modern luxuries would be impossible to manufacture or produce. Smartphones, for example, are dependent on rare earth metals found in limited areas around the world.
    The ability for nations to “specialize”: Global and regional cooperation allow nations to heavily lean into their economic strengths, knowing they can trade products for other resources. An example is a tropical nation that specializes in exporting a certain fruit. It’s been shown that when nations specialize in the production of goods or services in which they have an advantage, trade benefits both parties.
    2. Increased Global Cooperation
    For a globalized economy to exist, nations must be willing to put their differences aside and work together. Due to this, increased globalization has been linked to a reduction—though not an elimination—of conflict. “Of course, as long as there have been nations, they’ve been connected with each other through the exchange of lethal force—through war and conquest—and this threat has never gone away,” Reinhardt says in Global Business. “The conventional wisdom has been that the increased intensity of these other flows—goods, services, capital, people, and so on—have reduced the probability that the world’s nations will fall back into the catastrophe of war.”
    3. Increased Cross-Border Investment
    According to the course Global Business, globalization has led to an increase in cross-border investment. At the macroeconomic level, this international investment has been shown to enhance welfare on both sides of the equation. The country that’s the source of the capital benefits because it can often earn a higher return abroad than domestically. The country that receives the inflow of capital benefits because that capital contributes to investment and, therefore, to productivity. Foreign investment also often comes with, or in the form of, technology, know-how, or access to distribution channels that can help the recipient nation.
    DISADVANTAGES OF GLOBALIZATION
    1. Increased Competition
    When viewed as a whole, global free trade is beneficial to the entire system. Individual companies, organizations, and workers can be disadvantaged, however, by global competition. This is similar to how these parties might be disadvantaged by domestic competition: The pool has simply widened. With this in mind, some firms, industries, and citizens may elect governments to pursue protectionist policies designed to buffer domestic firms or workers from foreign competition. Protectionism often takes the form of tariffs, quotas, or non-tariff barriers, such as quality or sanitation requirements that make it more difficult for a competing nation or business to justify doing business in the country. These efforts can often be detrimental to the overall economic performance of both parties.
    2. Disproportionate Growth
    Globalization can introduce disproportionate growth both between and within nations. These effects must be carefully managed economically and morally. Within countries, globalization often has the effect of increasing immigration. Macroeconomically, immigration increases gross domestic product (GDP), which can be an economic boon to the recipient nation. Immigration may, however, reduce GDP per capita in the short run if immigrants’ income is lower than the average income of those already living in the country. Additionally, as with competition, immigration can benefit the country as a whole while imposing costs on people who may want their government to restrict immigration to protect them from those costs. These sentiments are often tied to and motivated—at least in part—by racism and xenophobia.
    3. Environmental Concerns
    Increased globalization has been linked to various environmental challenges, many of which are serious, including: Deforestation and loss of biodiversity caused by economic specialization and infrastructure, development of Greenhouse gas emissions and other forms of pollution caused by increased transportation of goods.

  9. Avatar Ugwuoke Victor chinweokwu says:

    NAME:UGWUOKE VICTOR CHINWEOKWU
    DEPT. :ECONOMICS
    REG NO:2017/249587
    COURSES:ECO 362
    QUESTION
    (1)Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    ANSWER
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues.
    The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems.
    He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974.
    McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  10. Avatar Ajah Favour says:

    Name:Ajah Favour Chinyere
    Reg no:2018/241836
    Department:Economics
    Course code: Eco 362
    Course title:Development Economics 2
    Email: favourajah91@gmail.com

    Assignment

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    He believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.

    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.

    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period.

    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)

    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.

    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

    The first oil shock presented a particular challenge to the Bank and its member countries. McNamara responded by increasing the lending level even more. McNamara turned to the members of the Organization of Petroleum Exporting Countries (OPEC) to finance this increase. He negotiated with the Shah of Iran for a development fund supported and controlled by OPEC and administered by the Bank. This did not materialize due to opposition from the U.S. government, and McNamara’s support for the fund caused tensions with the U.S. Treasury.

    Tensions with the U.S. arose again when the Bank sought a general capital increase in the 1970s. After two years of negotiations, a selective capital increase of $8.5 billion was approved in 1976. While this provided some relief, it did not satisfy McNamara’s demands. He created a task force to consider “the future role of the Bank”, which concluded that an increase of $45 billion was needed to support the needs of the borrowers. The executive directors ultimately approved a capital increase of $40 billion in 1979, following the second oil shock.
    He was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.

  11. Avatar Akachukwu christian nonso says:

    Name ;Akachukwu Christian Nonso
    Dept ; Economics
    Regno;2018/249531
    course;Eco 362

    Assignment
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    Ans
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  12. Avatar ODOH, VICTOR CHUKWUEMEKA. REG NO: 2018/248582 says:

    Odoh, Victor Chukwuemeka
    2018/248582
    Economics
    Eco 362
    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

  13. Avatar Nwokolo chibuike says:

    Name: Nwokolo chibuike
    Reg no:2018/248270
    Dept: economics
    Course:Eco362
    Gmail :chibuikenwokolo20@gmail.com

    Answer
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.

    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.

    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.

    Role of the World Bank

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

  14. Avatar Nwogwugwu Chisom Jennifer says:

    Name: Nwogwugwu Chisom Jennifer
    Reg no: 2018/245129
    Department: Economics
    Eco 362 Assignment

    DEVELOPMENT IN THE 1960S AND 1970S

    In the 1960s, many policy makers realized that the formulated policies aimed at development in the developing world was not improving the circumstances of the poor.
    Some believed that accurate policies should be established and geared towards the execution of ‘GROWTH WITH EQUITY’. Due to the openly obvious misdistribution of wealth, the world bank in conjunction with the governments of the developing world established the social programs intended to address issues of poverty. Some of the programs includes:
    1.) Public safety
    2.) Health
    3.) Education
    4.) Infrastructure
    5.) Transportation etc
    All these measures to alleviate poverty in the developing world was in the light if the cold war with financial and technical assistance. The world bank and the governments of the developing world implemented the programs aimed at ‘GROWTH WITH EQUITY’.
    Although, project lending towards Infrastructure, agriculture and industry till continued, policies on rural and urban development wore introduced to alleviate poverty.

  15. Avatar Eze Amarachi Ruth says:

    Name: Eze Amarachi Ruth
    Department: Economics
    Reg number: 2018/248529
    When the Marshall Plan went into effect in 1947, many European countries began receiving aid from other sources. Faced with this competition, the World Bank shifted its focus to non-European countries. Until 1968, its loans were earmarked for the construction of infrastructure works, such as seaports, highway systems, and power plants, that would generate enough income to enable a borrower country to repay the loan. In 1960, the International Development Association was formed (as opposed to a UN fund named SUNFED), providing soft loans to developing countries.

    Before 1974, the reconstruction and development loans the World Bank made were relatively small. Its staff was aware of the need to instill confidence in the bank. Fiscal conservatism ruled, and loan applications had to meet strict criteria.
    The first country to receive a World Bank loan was France. The Bank’s president at the time, John McCloy, chose France over two other applicants, Poland and Chile. The loan was for US$250 million, half the amount requested, and came with strict conditions.
    From 1974 to 1980 the bank concentrated on meeting the basic needs of people in the developing world. The size and number of loans to borrowers greatly increased, as loan targets expanded from infrastructure into social services and other sectors.

  16. Name: Eze Nnenna Anthoniatta
    Department: Economics
    Reg No: 2018/248095

    QUESTION

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER

    On June 29, 2012,The World Bank Group committed $52.6 billion in loans, grants, equity investments, and guarantees to help promote economic growth, overcome poverty, and promote economic enterprise in developing countries during fiscal year 2012, which ends on June 30. As developing countries face strong economic headwinds, the Bank Group supported an estimated 884 operations to promote opportunity and get needed services to the poor – for example, by improving education and health services, promoting the private sector, building infrastructure, and strengthening governance and institutions.

    Mr Zoellick, the 11th president of the World Bank, turned around an institution in trouble in 2007, recapitalized the Bank, and expanded financing for the poorest countries following the food, fuel and financial crises of recent years. He modernized the Bank by making it more accountable, flexible, fast-moving, transparent, and focused on good governance and anti-corruption. He has increased representation of developing countries in governance and staffing and encouraged developing countries to set their own priorities rather than have them dictated from the Bank. His record has also been marked by an increased role for the private sector through IFC, which under his leadership has recruited sovereign wealth funds and pension funds to invest in poor countries, especially in Africa.

    The bank considers itself a unique financial institution that sets up partnerships to reduce poverty and support economic development. The World Bank supplies qualifying governments with low-interest loans, zero-interest credits, and grants, all to support the development of individual economies. They also provide Human Capital Project, National Immunization Support Project etc for developing countries also focusing on the Philippines.

  17. Avatar Osike+Solomon+Ugochukwu says:

    Name: OSIKE SOLOMON UGOCHUKWU
    Reg.No:2018/242458
    Department: Economics

    Question

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.

    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period. McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)
    McNamara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies.
    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil producing states to provide this support. OPEC agreed to increase their commitments – $2 billion by 1974, and by 1975 OPEC members were contributing 3 per cent of their GNP.
    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.

    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.

  18. Avatar GWOM PAUL JACOB says:

    Gwom Paul Jacob
    2018/243820
    ECONOMICS
    Eco. 362 ASSIGNMENT
    Development in 1960s and 70s and World Bank Lending

    In the 1960s, membership in the UN continued to expand and issues of development came to the attention of the international community through actions both within and outside of the UN. Some of the key UN resolutions, reports and events are highlighted.

    As the introduction to the Secretary-General’s report on Proposals for Action (E/3613 + Corr.2) states, 

    “At the opening of the United Nations development decade, we are beginning to understand the real aims of development and the nature of the development process. We are learning that development concerns not only man’s material needs, but also the improvement of the social conditions of his life and his broad human aspirations. Development is not just economic growth, it is growth plus change.”

    During this time, the practice of calling for international observances, such as international days, years and decades, grew as a practice to highlight development issues and concerns.

    THE WORLD BANK CONFRONTS POVERTY
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

  19. Avatar Asadu Emmanuel Chiagoziem says:

    Asadu Chiagoziem Emmanuel
    Economics
    2018/241853

    The cold war (1947-1989) led to the global realization that a majority of nations were severely underdeveloped, with a minute number of them being in the fetal stages of development. This realization was characterized by the fact that around 40% of people living in developing countries were living in absolute poverty. This bleak situation led the World Bank to move away from its sole focus of economic growth, thus expanding its ideals to encompass “poverty reduction.”

    The ideals that the bank adopted during this period were a very different one from its financial and prudent approach to the disbursement of loans and the adoption of countries into its organization. Robert McNamara was responsible for the bank’s focus on development and poverty. Although the bank maintained its investment(s) in infrastructure projects, it began to directly involve itself in the development of developing nations.

    This involvement, led by McNamara, brought about a number of structural changes in the bank. Some of these changes were: An increase in the bank’s lending activities, the inclusion of China, Egypt and Indonesia, stricter loan assessment measures, direct diplomatic relationships with key member states and organizations, a increase of 40% for loans for rural agricultural projects and an increase in funding to the IDA (International Development Association).

    The World Bank during this period also took a more direct approach in the development of member states by establishing committees to review the external debt of member states in order to play an advisory role in the debt sustainability of these nations. This shift verified the idea that development was not fully possible if we only focus on infrastructure and economic growth.

  20. Avatar Ibukun+Bamiduro says:

    Name:Bamiduro ibukun obianuju
    Reg No:2018/243749
    Department: Economics
    Course: Eco 362

    Question

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant factor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and the development of small-scale industries and other critical programs that had a direct impact on the populace. Discuss

    Answer

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was a clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as an intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Role of the World Bank

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems, but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara, the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    Enlarging the Bank

    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.

    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period.

    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business, the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey and Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganization of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. The appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)

    Funding the Bank

    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled, and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.

    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait, and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

    The first oil shock presented a particular challenge to the Bank and its member countries. McNamara responded by increasing the lending level even more. McNamara turned to the members of the Organization of Petroleum Exporting Countries (OPEC) to finance this increase. He negotiated with the Shah of Iran for a development fund supported and controlled by OPEC and administered by the Bank. This did not materialize due to opposition from the U.S. government, and McNamara’s support for the fund caused tensions with the U.S. Treasury.

    Tensions with the U.S. arose again when the Bank sought a general capital increase in the 1970s. After two years of negotiations, a selective capital increase of $8.5 billion was approved in 1976. While this provided some relief, it did not satisfy McNamara’s demands. He created a task force to consider “the future role of the Bank”, which concluded that an increase of 45 billion dollars was needed to support the needs of the borrowers. The executive directors ultimately approved a capital increase of 40 billion dollars in 1979, following the second oil shock.

    McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.

    IDA Replenishment

    The task of raising the necessary IDA funding – concessional funds for the Bank Group’s poorest members became a personal challenge for McNamara. He used his extensive political contacts to bolster Congressional support in the U.S. He contacted prominent and persuasive people in the U.K., the Netherlands, and Kuwait to urge positive action for IDA.

    War on Poverty

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still, rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs are aimed at increasing employment opportunities, improving services, sites, and service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

    Oil Crisis

    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question of how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: assess the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil-producing states to provide this support. OPEC agreed to increase their commitments $2 billion by 1974, and by 1975 OPEC members were contributing 3 percent of their GNP.

    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to successful effective institutions, sound policies, continuous learning through evaluation and knowledge sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address increasingly global development challenges. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it can convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in-country offices.

    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

    Urban Development
    Globally, over 50% of the population lives in urban areas today. By 2045, the world’s urban population will increase by 1.5 times to 6 billion. City leaders must move quickly to plan for growth and provide the basic services, infrastructure, and affordable housing their expanding populations need.
    Today, some 55% of the world’s 4.2 billion inhabitants live in cities. This trend is expected to continue. By 2050, with the urban population more than doubling its current size, nearly 7 of 10 people in the world will live in cities.

    With more than 80% of global GDP generated in cities, urbanization can contribute to sustainable growth if managed well by increasing productivity, allowing innovation and new ideas to emerge.

    However, the speed and scale of urbanization bring challenges, including meeting accelerated demand for affordable housing, well-connected transport systems, and other infrastructure, basic services, as well as jobs, particularly for the nearly 1 billion urban poor who live in informal settlements to be near opportunities. Conflicts are on the rise, resulting in 60% of forcibly displaced people living in urban areas.

    Cities are also at the frontline of combating epidemics. Cities across the globe are currently being tested to the extreme with the COVID-19 pandemic. It is impacting not only public health but also the economy and social fabric. Simultaneously a health crisis, social crisis, and economic crisis, COVID-19are laying bare how well cities are planned and managed and the impact this is having on the extent to which each city can function or not especially during times of crisis.

    COVID-19 is a massive challenge for cities on the frontline, rich and poor alike. The measures taken to control the spread of the virus are having massive implications on cities due to their economic structure, their preparedness for such a crisis especially the state of their public health and service delivery systems, and the extent to which their population’s health and livelihoods are vulnerable, all of which are a function of the effectiveness of their urban governance systems.

    In normal times, there might be many attributes that cities strive to compete on and excel at the global level, including livability, competitiveness, and sustainability, but in any given day and especially in a time of crisis, a city must function well for its citizens.

    Building cities that work inclusive, healthy, resilient, and sustainable requires intensive policy coordination and investment choices. National and local governments have an important role to play to take action now, to shape the future of their development, to create opportunities for all.

  21. Avatar Ekpe Esther Chidinma says:

    Ekpe Esther Chidinma
    2018/250324
    Economic Department
    Eco362; Development Economic 2
    Robert McNamara was the first man that shaped the Bank as no one has done before. He came to Bank full of energy,very active, pushing to get things done. He had this firm belief that the problem of the developing world could be solved. What was needed was clear analysis of the problems and the determination in the application of appropriate remedies. Once this happened, success could not fail to materialize. He adopted an aggressive mission that emphasized the claims and expectation of the Bank developing member countries. To meet the needs of the developing world not the need to satisfy the investment community, became paramount in determining the type and quantity of the Bank activities.
    The World Bank to McNamara was an innovative, problem -solving mechanism to help fashion a better life for mankind in the decades ahead. Over 40 percent of people in developing countries by 1970s lived in absolute poverty and in response the World Bank project aimed to help the poor directly. World-Bank lend to member countries between 1968 and 1981 and it expanded into new sectors: environment,rural development,water, sanitation, education and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the level of the poor, which was different from the large infrastructure project that was determined in the first twenty years. The first loan for the environment was in 1971 for pollution control in Brazil and the Bank subsequently built environmental safeguard into it’s process

  22. Avatar Ikechukwu+ifechukwu+Victor says:

    Name: Ikechukwu Ifechukwu Victor
    Reg no: 2018/248667
    Dept: Economics
    Course: Eco 362
    Answer.
    In 1973, Robert McNamara, then President of the World Bank, was one of the earliest pioneers to boldly describe the alarming facts of absolute poverty in the developing world and to call for a rigorous response based on a moral imperative. In his 1973 Nairobi speech to the Board of Governors, McNamara outlined a strategy toward its reduction or elimination. While recognizing the hurdle that citizens in the developed world would have to overcome to allow increasing sums of money to be used to assist the poorest of the poor, he emphasized that rural development was to be the centerpiece of his plan to raise the productivity of the poor.
    Governments of the developing world were called to meet the “basic human needs” of their populations. As time went on, despite countries’ positive annual growth, malnutrition persisted, infant mortality remained high, life expectancy was low, illiteracy widespread, unemployment soared, income distribution skewed, and the gap between the rich and poor countries was growing. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure. The Integrated rural development (IRD) approach thus became the prototype for this assistance. These programs grew out of this original excitement of development practitioners, which hoped to transform undeveloped rural settings into cohesive communities, with profitable productive opportunities, and where members could enjoy basic public and social services. While rural development programs went on to benefit millions, rural laborers and the landless benefited, at best, indirectly. As many studies have attested, IRD projects achieved disappointing results. Some projects failed due to serious Institutional weaknesses, and progress was slowest where most needed—in Sub-Saharan Africa. Today, we ask the question some forty-two years later: What happened to the approach launched with such confidence and optimism? In the 1970s, the World Bank and other donor agencies entered poverty reduction and rural development in a major way with IRD programs. These programs focused on participation, community empowerment, and the decentralization of local institutions, arguing that this approach is able to achieve results by aligning development priorities with community goals. In practice, however, the programs suffered the same fate as earlier community development programs, becoming centralized, bureaucratic, and unable to coordinate actors on the ground. Some countries saw decentralization as a means of dismantling command economies, others a tool for poverty reduction, and still others as a path to grassroots empowerment. Regardless of the hope the approach held out at the outset, realities in the world economy sidetracked development practitioners to more pressing challenges.
    The world debt crisis of 1982 lasted well into the end of the 1980s, during which time the Bank’s main focus was stabilization and structural adjustment programs (SAP) via macroeconomic and sector policy reforms. At this time, the Bank was forced to face a renewed emphasis on poverty reduction in the midst of needing to mitigate the negative impacts and unintended consequences of SAPs, which had a draconian effect on the poor.

  23. Avatar Joseph Chinonso says:

    Name: Joseph chinonso
    Reg. No.: 2018/241859
    Dept: Economics

    Answer:
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    The 1980s and 90s brought additional challenges related to oil shocks, debt crises and environmentalism, and the Bank reacted by bringing new skills and safeguards into its work, as well as structural adjustment. Structural adjustment loans came with policy conditions, such as fiscal discipline, tax reform and liberalization of foreign direct investment; but while they were intended to improve the policy and institutional environment in which the loans were made, their overall effectiveness was debated internally and in the client community.

  24. Avatar EKE SUNDAY says:

    NAME: EKE SUNDAY
    REG NO : 2018/245405
    DEPARTMENT:EDUCATION ECONOMICS

    QUESTION
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    ANSWER:
    TO discuss the impart of world bank (1973) led by Robert Mcnamara on social welfare By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” These concepts transformed the Bank into the institution focused on development that we know today.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors:
    environment,
    rural development,
    water,
    sanitation,
    education, and others.
    The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 years.
    Furthermore ,
    “The World Bank – born out of the ruins of World War II – has grown into one of the most constructive instruments of human aspiration
    and progress. And yet it has only barely begun to
    develop its full potential for service and assistance.
    In the word of Mcnamara
    He said,
    There is so much more to do, so much more it
    ought to do to assist those who need its help.
    Robert Mcnamara He has almost doubled in real terms the volume of lending by the Bank Group.
    He has more than doubled the size of the professional staff.
    He has changed the administrative structure.
    He has improved the relations of the Bank Group with the other international and national aid agencies. He has given the developing member-countries significant new help in their efforts to reduce their birth rates and to reconcile economic growth with the protection to Carter for the social welfare of the people

  25. Avatar IBENYENWA+JUSTICE+JUNIOR says:

    Discussing more on World banks role in rural development, urban development, and development small-scale industry and other critical programs.
    According to https://www.britannica.com/topic/World-Bank, the full meaning of world bank is “World Bank Group” and it is an international organization affiliated with the United Nations (UN) and designed to finance projects that enhance the economic development of member states. Headquartered in Washington, D.C., the bank is the largest source of financial assistance to developing countries. It also provides technical assistance and policy advice and supervises—on behalf of international creditors—the implementation of free-market reforms. Together with the International Monetary Fund (IMF) and the World Trade Organization, it plays a central role in overseeing economic policy and reforming public institutions in developing countries and defining the global macroeconomic agenda. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

    World bank from ROBERT S. MCNAMARA (the 5th president of the world bank 1968 – 1981)
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    Brief History;
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    ROLE OF THE WORLD BANK:
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For him the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    • Avatar IBENYENWA+JUSTICE+JUNIOR says:

      Ibenyenwa Justice Junior
      2018/245647
      Economics
      Sorry Doc, I forgot to put my reg no and department

  26. Avatar Nduka Olisazoba Chiebuniem says:

    Name: Nduka Olisazoba Chiebuniem
    Reg No: 2018/241844
    Course: Eco 362(Development Economics)
    Department: Economics
    ASSIGNMENT
    Throughout his tenure at the Bank, McNamara worked hard to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a large group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  27. Name: Obodoagu Somtochukwu Lilian
    Reg. No: 2018/242452
    Department: Economics
    Course: Eco 362
    Assignment
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters
    McNamara eradicate poverty in the developing countries when he led the world bank between 1973 to 1980 by initiating new program, the world bank lent large sum to facilitate rural development, urban development and development of small scale industry.Bank loans also help to developed program for the improvement of health, educational services and family planning.

  28. Avatar Nnamani chidimma Esther says:

    Name: Nnamani Chidimma Esther
    Reg no: 2018/243795
    Department: Economics
    Assignment on 362
    Questions
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    concept of poverty within the institutional framework of the World Bank, from its inception to its establishment of the dollar-a-day global poverty threshold. The Bank’s evolving conceptualization of poverty and how it related to the development process affected the policies that were advanced to boost the productivity of underdeveloped countries. Internal and external influences and constraints conditioned the Bank’s approach to poverty and its alleviation from the beginning, when poverty was conceived as a political issue beyond the scope of the Bank’s mandate. Separating the political implications of poverty alleviation from the Bank’s development agenda was tenuous, and by the 1970s a universal, absolute concept of poverty became the focal point of Bank operations. The eventual monetization of global poverty reflected the increasingly technical nature of the Bank’s development work and its need for a practical yardstick by which to measure the success of its anti-poverty policies.

  29. Avatar Nwoko Nnamdi Netochukwu 2018/245660 says:

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  30. Avatar Name: Enemuo Paul Onyedikachi Reg: 2018/248652 says:

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    The 1980s and 90s brought additional challenges related to oil shocks, debt crises and environmentalism, and the Bank reacted by bringing new skills and safeguards into its work, as well as structural adjustment. Structural adjustment loans came with policy conditions, such as fiscal discipline, tax reform and liberalization of foreign direct investment; but while they were intended to improve the policy and institutional environment in which the loans were made, their overall effectiveness was debated internally and in the client community.

    In the 1990s, the Bank assisted former Soviet nations to redirect their economies after the dissolution of the Union of Soviet Socialist Republics, and many of these newly sovereign nations became World Bank members. In 1991, the Global Environment Facility (GEF) was established to further the focus on safeguarding the environment, and in 1996 the Heavily Indebted Poor Countries debt initiative was approved to enable poor countries to focus on sustainable development and reducing poverty. The World Bank added another institution to the group when the Multilateral Investment Guarantee Agency (MIGA) was formed in 1988 to provide political risk insurance and credit enhancement to investors and lenders.

  31. Avatar Nwankwo chidubem pascal says:

    Name: Nwankwo chidubem pascal
    Regno:2018/245467
    Dept: Economics
    Course Eco 362
    Assignment s and answer

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Personal History

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.

    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.

    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.

  32. Avatar Obiesie Mmesoma Rejoice says:

    Name: Obiesie Mmesoma Rejoice
    Reg no: 2018/245427
    Department: Economics Education

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize. McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Role of the World Bank
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development. McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    Enlarging the Bank
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets. McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership.

    Funding the Bank
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years. To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Robert to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

  33. Avatar OKOYE ARTHUR-KINGSLEY KANAYO. 2018/241820 says:

    NAME: OKOYE ARTHUR-KINGSLEY KANAYO
    REG NO: 2018/241820

    The adjustments from project lending to program lending – Reflections of the World’s bank shift to Growth equality.
    Some time in the 1960s , the strategy (the trickle-down) approach was observed by policy makers to not have carried along or ameliorated the status of the poor. In-fact, some believed that it worsened as time went on.
    Due to the very conspicuous maldistribution of income , the government and the world bank came into cooperation to establish mechanisms and social programs that was intended to directly address poverty. These programs were aimed at improving education, health, housing, transportation, water etc. The world bank had a handful of significant actors through its existence, one of which is Robert McNamara, whom led and agitated for the social welfare of developing countries.
    In his view, it was a commendable move/action (in the scenario of the cold war) to work with the government to eradicate absolute poverty in the developing states with financial, technical and advisory aid from the world bank and already Developed nations at the light of the cold war. These unfolding events led to Governments of developing countries to engage in State -run programs aimed at improving the lot of it’s respective citizens.
    The ‘growth with equity’ approach was evident in the new types of programs that were implemented at the world bank. Although, project lending aimed at the development of infrastructures – the industrial and agricultural activities were persistent as this was an already established means of survival. The programs implemented by Robert McNamara were emphatically directed at Eradication of abject poverty, thus inducing the world bank to engage in lending of large sums to facilitate urban development, development of small-scale industries and intentional rural development.
    Bank loans played a significant role by implementing programs which aimed at Improvement of health, nutrition, family planning and educational services.
    The major objective of these programs was to cater for the impoverished and underemployed sectors of the population in varying countries.

  34. Avatar Ofili+beluchi+joan says:

    NAME:Ofili Beluchi Joan
    CLASS:300 LEVEL
    DEPARTMENT:ECONOMICS
    REG NO:2018/241862
    ASSIGNMENT
    DEVELOPMENT IN THE 1960S AND 1970S
    The change to program lending reflected the world banks shift to ‘GROWTH WITH EQUITY’.
        In the 1960s, many policy makers realized that the formulated policies aimed at development in the developing world was not improving the circumstances of the poor.
       Some believed that accurate policies should be established and geared towards the execution of ‘GROWTH WITH EQUITY’. Due to the openly obvious misdistribution of wealth, the world bank in conjunction with the governments of the developing world established the social programs intended to address issues of poverty. Some of the programs includes:
    ·        Public safety
    ·        Health
    ·        Education
    ·        Infrastructure
    Transportation etc
      All these measures to alleviate poverty in the developing world was in the light if the cold war. With financial and technical assistance, the world bank and the governments of the developing world implemented the programs aimed at ‘GROWTH WITH EQUITY’.
      Although, project lending towards Infrastructure, agriculture and industry till continued, policies on rural and urban development wore introduced to alleviate poverty.  
     

  35. Avatar Nweke Melody chioma says:

    NAME: NWEKE MELODY CHIOMA
    CLASS:300 LEVEL
    DEPARTMENT:ECONOMICS
    REG NO:2018/243742
    ASSIGNMENT
    DEVELOPMENT IN THE 1960S AND 1970S
    The change to program lending reflected the world banks shift to ‘GROWTH WITH EQUITY’.
        In the 1960s, many policy makers realized that the formulated policies aimed at development in the developing world was not improving the circumstances of the poor.
       Some believed that accurate policies should be established and geared towards the execution of ‘GROWTH WITH EQUITY’. Due to the openly obvious misdistribution of wealth, the world bank in conjunction with the governments of the developing world established the social programs intended to address issues of poverty. Some of the programs includes:
    ·        Public safety
    ·        Health
    ·        Education
    ·        Infrastructure
    Transportation etc
      All these measures to alleviate poverty in the developing world was in the light if the cold war. With financial and technical assistance, the world bank and the governments of the developing world implemented the programs aimed at ‘GROWTH WITH EQUITY’.
      Although, project lending towards Infrastructure, agriculture and industry till continued, policies on rural and urban development wore introduced to alleviate poverty.  
     
     

  36. Avatar Nweke+Chidera+Philomina+2018/242345 says:

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    To McNamara, The World Bank was “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    As developing countries face strong economic headwinds, the Bank Group supported an estimated 884 operations to promote opportunity and get needed services to the poor – for example, by improving education and health services, promoting the private sector, building infrastructure, and strengthening governance and institutions

    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.

    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.

    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.

    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

  37. Avatar CHINWUBA IFEANYI INNOCENT 2018/242447. says:

    NAME: CHINWUBA IFEANYI INNOCENT.
    CLASS:300 LEVEL
    DEPARTMENT:ECONOMICS
    REG NO:2018/242447
    ASSIGNMENT
    DEVELOPMENT IN THE 1960S AND 1970S
    The change to program lending reflected the world banks shift to ‘GROWTH WITH EQUITY’.
    In the 1960s, many policy makers realized that the formulated policies aimed at development in the developing world was not improving the circumstances of the poor.
    Some believed that accurate policies should be established and geared towards the execution of ‘GROWTH WITH EQUITY’. Due to the openly obvious misdistribution of wealth, the world bank in conjunction with the governments of the developing world established the social programs intended to address issues of poverty. Some of the programs includes:
    • Public safety
    • Health
    • Education
    • Infrastructure
    Transportation etc
    All these measures to alleviate poverty in the developing world was in the light if the cold war. With financial and technical assistance, the world bank and the governments of the developing world implemented the programs aimed at ‘GROWTH WITH EQUITY’.
    Although, project lending towards Infrastructure, agriculture and industry till continued, policies on rural and urban development wore introduced to alleviate poverty.

  38. Avatar Goshen+Mmoneke says:

    Name: Mmoneke Goshen
    Department: Economics Education
    Reg No: 2018/249256

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

  39. Avatar Nnamani Dorathy nchido 2018/245743 Economics major says:

    Nnamani Dorathy nchido
    Economic
    2018/245743
    Assignment on 362
    RURAL DEVELOPMENT PROGRAM
    Governments of the developing world were called to meet the “basic human needs” of their populations. As time went on, despite countries’ positive annual growth, malnutrition persisted, infant mortality remained high, life expectancy was low, illiteracy widespread, unemployment soared, income distribution skewed, and the gap between the rich and poor countries was growing. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    The Integrated rural development (IRD) approach thus became the prototype for this assistance. These programs grew out of this original excitement of development practitioners, which hoped to transform undeveloped rural settings into cohesive communities, with profitable productive opportunities, and where members could enjoy basic public and social services. While rural development programs went on to benefit millions, rural laborers and the landless benefited, at best, indirectly. As many studies have attested, IRD projects achieved disappointing results. Some projects failed due to serious Institutional weaknesses, and progress was slowest where most needed—in Sub-Saharan Africa. Today, we ask the question some forty-two years later: What happened to the approach launched with such confidence and optimism?
    In the 1970s, the World Bank and other donor agencies entered poverty reduction and rural development in a major way with IRD programs. These programs focused on participation, community empowerment, and the decentralization of local institutions, arguing that this approach is able to achieve results by aligning development priorities with community goals. In practice, however, the programs suffered the same fate as earlier community development programs, becoming centralized, bureaucratic, and unable to coordinate actors on the ground. Some countries saw decentralization as a means of dismantling command economies, others a tool for poverty reduction, and still others as a path to grassroots empowerment. Regardless of the hope the approach held out at the outset, realities in the world economy sidetracked development practitioners to more pressing challenges.
    URBAN DEVELOPMENT PROGRAM
    Urbanization was a powerful socio-spatial force throughout most of the world during the twentieth century. Compared with the West, high and sustained rates of urbanization in developing countries have produced enormous problems for infrastructure and service provision (Berry 1981; Mabogunje 1981; Gilbert and Gugler 1982; Linn 1983). In their attempts to deal with burgeoning urbanization, Third World national governments tried to discourage the phenomenon by mitigating the push factors for migration to cities (El-Shakhs 1972; Brennan and Richardson 1986), altering the location of investment, and decentralizing economic activities to smaller urban areas (Lipton 1976; Forbes and Thrift 1987). However, such policies proved to be futile and ineffective after wasting.
    inevitability of hyper-urbanization under uneven capitalist development, policy-makers have had to confront its consequences, especially the alarming growth in the number of urban poor and their lack of access to basic services and infrastructure. A major consequence of rapid urbanization in the developing world is the prolific growth of slums and squatter settlements. This informal housing usually lacks, or has limited access to, clean water, sewerage systems, and electricity. In some instances, these dwellings constitute the housing of over 60 percent of the total urban population (Potter 1985; United Nations 1996; World Bank 2000a). However, neither the exceptional growth of Third World cities nor the deteriorating living standards of their urban poor was a major concern for international development agencies until the early 1970s. As poverty was regarded as an overwhelmingly rural problem, efforts were largely directed toward addressing rural underdevelopment. It was also believed that investment in the provision of social services and infrastructure for Third World cities would simply reinforce an existing “urban bias” that was already depriving rural areas of much needed capital and human resources (Stren 1994: 4). Thus, during the 1950s, for example, the World Bank’s lending focused solely on public utility projects, such as electric power and transportation. The Bank did not allocate funds for socially oriented development programs, such as health, education, and housing, for fear of promoting welfarism. In the late 1960s, however, a variety of internal and external forces influenced the institution to consider the poverty of developing countries. As part of this evolution in its thinking, the World Bank began to pay closer attention to urban issues. Mounting criticism resulting from increasingly visible physical manifestations of poverty by the mid-1960s (Abrams 1964; Ward 1965) eventually prodded the Bank to confront the problem. The World Bank reluctantly considered approaches to alleviating urban poverty and revised its antagonistic policy toward funding urban projects in 1972. Most of the Bank’s early interventions in poverty alleviation aimed to extend basic infrastructure to squatter settlements. After initiating an urban lending program in 1972, the Bank used its ample financial resources to assist with housing provision in the Third World. Sites-and-services and squatter upgrading were promoted by the Bank for a decade as acceptable solutions to the Third World’s housing problems. However, during the 1980s and 1990s, the Bank shifted its emphasis from project-based lending to macroeconomic management and “capacity-building,” concentrating on increasing productivity. As a consequence, its urban focus moved away from investing in specific projects, such as physical dwellings, toward the reform of urban finance and eventually toward privatization (World Bank 1991a, 1993a, 2000a). Although the World Bank has been involved in urban lending for more than three decades, there is a paucity of analysis on the history and evolution of the Bank’s approach to urban development. Most of the literature on the Bank’s urban programs has been produced by the Bank itself. While agricultural lending, structural adjustment, and the institutional structure of the World Bank have been the subjects of many studies (Torrie 1983; Havnevik 1987; Lipton and Paarlberg 1990; Miller-Adams 1999), similar analysis of the World Bank’s urban programs is lacking. For example, the Brookings Institution’s two-volume study (Kapur et al. 1997) on the first fifty years of World Bank programs dedicates only about thirty of its 2,000 pages to the Bank’s urban initiatives. While a few studies examining urban programs in specific cities do exist (Domicelj 1988; Pugh 1988, 1989a; Campbell 1990; Guarda 1990), no major works have been produced on the history of the World Bank’s urban program, the factors that led to the establishment of the Bank’s urban division, the relationships between the Bank’s urban programs and its broader development objectives, the impact of the Bank’s urban lending philosophy on urban development policy in general, or trends in the Bank’s urban lending program. This book addresses these gaps in the literature through an examination.
    SMALL SCALE INDUSTRY

    The World Bank Robert S. McNamara Fellowships Program (RSMFP) matches aspiring development economics researchers from developing countries with World Bank research economists creating unique opportunities for the fellows to participate in rigorous policy-relevant research in the World Bank’s Development Economics Vice Presidency (DEC). Fellows will be hosted at the World Bank in Washington, D.C. for 8 months (September to May each year) and work under the supervision of researchers in the World Bank’s Development Impact Evaluation (DIME) and Development Research Group departments, engaging in high-quality and policy-relevant research projects.
    By working with World Bank DEC researchers and their external academic collaborators from top universities, fellows will learn current research standards, acquire new econometric skills, and network with leading researchers in their field. They will have a unique opportunity to participate in rigorous policy-relevant research and widen their perspective on potential development questions, and how their research can address challenges in the developing world.
    World Bank’s Board of Executive Directors today approved a US$500 million International Bank for Reconstruction and Development (IBRD) credit to increase access to finance for medium and small scale enterprises (MSME) in agriculture, trade, light-manufacturing, and services. These will stimulate economic growth and create jobs.
    The Development Finance Project will provide stable funding to support the growth of Nigeria’s MSMEs through the establishment of a Development Finance Institution (DFI). The DFI will provide funding to eligible financial intermediaries to lend to MSMEs. The DFI would also provide partial risk guarantees to participating Commercial banks and other financial institutions.
    Limited access to private finance is a key obstacle to enterprise growth and entrepreneurship, particularly for young people, and it is a major obstacle faced by SMEs. Only 9.5% of Nigerian SMEs had a loan in the books or line of credit in 2011 and SME lending made up only 5% of total commercial bank lending.
    OTHER PROGRAM
    In his 13 years at the Bank, he introduced key changes, most notably, shifting the Bank’s economic development policies toward targeted poverty reduction. Prior to his tenure at the World Bank, poverty did not receive substantial attention as part of international and national economic development; the focus of development had been on industrialization and infrastructure.Poverty also came to be redefined as a condition faced by people rather than countries. According to Martha Finnemore, the World Bank under McNamara’s tenure “sold” states poverty reduction “through a mixture of persuasion and coercion.”McNamara negotiated, with the conflicting countries represented on the Board, a growth in funds to channel credits for development, in the form of health, food, and education projects. He also instituted new methods of evaluating the effectiveness of funded projects. One notable project started during McNamara’s tenure was the effort to prevent river blindness.
    In 1972, McNamara visited Santiago to meet President Salvador Allende to discuss the latter’s policy of nationalization, especially of the copper mining companies.McNamara’s son, Craig McNamara was living in Chile at the time, but the two did not meet owning to the rift over the Vietnam war. McNamara files stated in 1984: “I think my father truly respected Allende-his compassion, his humility. But he disapproved of the nationalizations”.The meeting with

  40. Avatar Favour Okpara says:

    Okpara Favour Amarachi
    2018/248953
    Economics

    Robert McNamara was a strong, experienced, and effective leader and manager. He was decisive and visionary, and elicited unquestionable follow-on by many, both within the World Bank and outside,he also had an unusual interest in precision.
    By the late 1960s,when Robert McNamara
    became the president of World bank,for the first time the Bank began
    to direct its attention to poverty reduction and so to
    put a priority on rural development. One focus was on
    improved access to development resources for small
    farmers who had been bypassed by previous development projects.
    McNamara believed that there is no inherent contradiction
    between the World Bank being a well-run, hard-headed, pru-
    dent, and careful investor of other people’s money, and at the
    same time being a socially responsible development institution,
    sensitive to the needs of basic human welfare.
    But in some respects work on poverty grew
    through the 1970s, and the Bank has called this its human focus period, emphasizing access of the poor to
    education and health services.
    In the 1980s, debt
    and finance became the focus. In the 1970s, and early
    1980s, developing countries took on a lot of debt. The
    Bank started concentrating on structural adjustment
    loans—large loans that come with certain conditions
    on what the country can do with the money, and
    what kinds of policies they need to implement, primarily focused on liberalization, marketization, and privatization.

    The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals:
    i)To accelerate economic growth
    ii)To reduce poverty.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others.

  41. Avatar Ukwuma Ifunanya Clara says:

    Ukwuma Ifunanya Clara
    2018/243088
    Economics Department
    ECO 362 Assignment.
    ANSWER.
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism,to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  42. Avatar UDEZE OBIANUJU CHARITY says:

    NAME: UDEZE OBIANUJU CHARITY

    REG NO: 2018/244283

    DEPARTMENT: EDUCATION ECONOMICS

    COURSE: DEVELOPMENT ECONOMICS

    QUESTION:

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER:

    MaNamara recognized the struggles of citizens in developing countries and therefore decided to assist such poor countries by making rural development the centerpiece of his plan.
    The major aim of the McNamara program was to provide for the poor and the under-employed sectors of the population in a country.To achieve his plan which is eradicating absolute poverty, he assembled the governments of the developing nation’s in order to meet the basic needs of their population.
    As time went on, MaNamara’s obsession to assist those in absolute poverty persisted as he saw that even though the people grew, their lives were not getting better. Certainly indices of poverty such as unemployment, low life expectancy, malnutrition, etc still dominated such countries.
    MaNamara as a result of his desire to eradicate absolute poverty adopted what was called the Integrated Rural Development (IRD) with which he intended to transform undeveloped rural settings into cohesive communities, with profitable productive opportunities, and where members could enjoy basic public and social services. While rural development programs went on to benefit millions, rural laborers and the landless benefited, at best, indirectly.
    But contrary to what was intended, the Integrated Rural Development failed as a result of serious institutional weaknesses.
    Some of the reasons why the Integrated Rural Development program failed are as follow:
    1.Communities were not adequately consulted or involved in project design, implementation, and monitoring. Even in projects with the objective of high levels of participation, local knowledge was often a construct of the planning context.
    2. It exhibited the usual top-down approach. Central government officials continued to make decisions on project design and implementation.
    3. The projects were often too complex, with numerous components and executing agencies, entering into many sectors simultaneously, demanding too much from weak institutions and leaving little to no capacity building.
    4. It lacked adequate communication
    5. It made countries to think that agricultural development was unimportant.
    6. The rural poor dwellers had little political voice.
    7. The rural sector has been discriminated against; the urban bias means that the rural communities suffer from non-existent social services.
    Benefit of the Integrated Rural Development program
    One major benefit of IRDP us that it raised the levels of the Below Poverty Line(BPL) families that n the rural areas above the poverty line on a lasting basis by giving them income general assets and access to credit and others.

  43. Avatar Owoh Chiamaka Philia says:

    Name: Owoh Chiamaka Philia
    Reg No.: 2019/247552 (2/3)
    Course Code: Eco 362
    Course Title: Development Economics
    Assignment on Eco 362
    Answer:
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    Role of the World Bank
    The World Bank was, McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    War Against Porverty
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions. From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period. One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold. Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education. McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    Important/Function of Social Welfare;
    Social welfare is actually one of the government’s policies, aimed at providing assistance to members of the society particularly, the needy and the less privileged families in the society. Social welfare focuses on the quality of those governed and not necessarily about the standard of living of a people. Whereas it has to do with the provision of conducive environment for the governed.
    The environment in this context include, the land, the water and the air. It is about the provision of essential social services for the people. Essential services, such as provision of financial assistance to the aged members of the society, who could not work and the unemployed youths in an organized society, who could not gain or secure themselves employment.
    Moreso, social services like, provision of health care for the sick in the society and provision of education to those members of the society, who could not afford themselves education are also inclusive.
    Government’s social welfare is important, given the fact that, it allows for a system where members of the society particularly, the less-privileged can enjoy their fundamental rights, and as well, access a good number of social amenities as provided by the government.
    However, social welfare is important in many ways, they include;
    1. It Alleviate Poverty Among the Members of the Society:
    The number one reason why social welfare is important is that, it allow members of the society particularly, those disadvantaged members of the society to benefit from such services. They however, portrayed why the government should work for the well-being of its citizenry. In Nigeria, there are so many poor people living in this country, who by the virtue of their citizenship deserve such social services from their government. They are entitled for government’s social welfare programs. Such social welfare programs are expected to help alleviate the level of poverty among this set of members of the society. Therefore, it is mostly the disadvantaged members of the society, who stand to benefit greatly from social welfare policy of the government. So any government that prides itself in enacting the social welfare law or rule and implement same for the benefit of the less-privileged does so at its own good.
    Why? The reason is obvious. Any government that takes the welfare of its citizens as a top priority is likely to deduce the number of poor people in the society hence, lessen the rate of crime. Looking at it from another angle, social welfare programs do boost society’s economy.
    2. It Put Government on its Toe And Make it Pragmatic:
    Secondly, why social welfare is important is that, while looking at the importance of social welfare policies, it is important to also note that, administering this policy is the sole responsibility of government. And in most cases government do get strapped for funds. And because of fiscal problems, government do run what I may described as ‘large deficits’ annually. Therefore, a goverment that must succeed need be prudent and pragmatic in implementing social welfare policies to the benefit of its citizenry. It therefore become incumbent on the part of government to be smarter, sit to its responsibilities, and do more than expected in ensuring that social welfare policy work in order to avoid wasting the public funds while administering social welfare that is of no value to its citizenry.
    It is a program that put a government on its toe to deliver dividends of governance to its people. Therefore, it is critical to have a well defined social welfare policy and program for the good of the governed and the government.
    3. It Helps Government to Maximize Waste Of Public Funds Through Legislature’s Oversight Functions:
    Morso, social welfare policy as stated earlier is very important since it alleviate poverty among the members of the society and allow for quality lives of these people. It is designed to solve some of the societal problems.
    Be that as it may, some government officials can and do abuse the system hence, the growing rate of poverty in Nigeria. And since social welfare is a means to an end, and not the other way round, it can call for the lawmakers in the state or in the National Assembly to engage profoundly in the policy and program of social welfare through its oversight functions so as to strike a balance by ensuring that a number of citizens benefit from the program, as well as, ensuring social welfare program’s cost effective, and minimization of waste on the part of the Executive, while implementing the social welfare policy. And if at all, waste is avoided and the policy is beneficial to the members of the public, such a success will spur the lawmakers to allot more funds for social welfare programs in future budgets.
    4. It Avails Members Of The Public An Opportunity To Engage Themselves In Positive Adventure:
    It will interest us to know that, first and foremost, the social welfare is designed and developed towards assisting members of the public especially, the disadvantaged members of the society with a view to alleviate poverty. The social welfare program also serves as an opportunity to some risk households to avial themselves of such opportunity in maintaining and preserving their dignity as human. Social welfare policy and program, apart from addressing issues related to poverty, for example, crime among the younger generation and mental disorder among the members of the society, occasioned by depression. It also give some members of the public an opportunity to engage themselves in positive adventure.
    The Impact Of Social Welfare In National Development
    Limited research is being done by scholars and researchers concerning the impact of social welfare on economic development in most developed countries. According to Jungsub Shin, “average welfare spending levels in most advanced industrial democracies are now between 20 and 28 percent of GDP”. (qtd. in
    M “Organization for Economic Co-operation and Development” 430) The question is why do the proportions of social welfare expenditures in most developed countries make up for almost three-tenths of the country’s GDP? What is the economic impact of such a high proportion of government social welfare expenditure? Social welfare in western developed countries is always an argumentative topic in today’s society. People argue the impact of social welfare on economic development.
    A) Scholars With Positive Views: James Griffin outlines that the reason for high social welfare expenditures in most developed countries is because “welfare rights are often classed as ‘positive’ rights, in contrast to ‘negative’ rights such as not being prevented from choosing one’s own goals (autonomy) and not being interfered with in their pursuit (liberty)” (28). He points out that social welfare is regarded by most developed countries as the progress of a country. He states that social welfare not only guarantees people’s freedom but also guarantees people to pursue their goals.
    B) Scholars with negative views According to Lene Aarøe and Michael Bang Petersen, the active social welfare system in most western developed countries may “reinforce the effect of the laziness” (694). In other words, he means that active social welfare makes people lazy. Because social welfare is so good, people can live without working hard. Laziness directly affects the economic development of companies and countries. Assar Lindbeck mentions that “if we do not watch out for hazardous dynamics, there is a risk that the welfare state will destroy its own economic foundations” (9). He notes that western countries welfare systems have disadvantages. He thinks that if western developed countries do not pay attention to the harmful effects of the welfare, the welfare system will seriously damage the country’s economy. According to Paul de Beer and Ferry Koster, with the development of today’s modern society, “individualization and globalization render the welfare state unsustainable in the long run” (219). Paul de Beer and Ferry Koster describe that “individualization and globalization” (219) make competition among countries fiercer. They think that welfare makes the whole country unable to adapt to today’s global development, and welfare is not good for the long-term development of the country. Although the welfare system brings “social rights” to citizens, “social rights” can also “legitimize the very inequalities which markets produced” (Moran 399). He means that the defects of welfare in most western developed countries make the market more unfair. Citizens have too many rights are not good for market management
    C) THE ECONOMIC IMPACT OF SOCIAL WELFARE
    A. People who support social welfare
    1) Social welfare system promotes redistribution: In the article entitled “The Multidimensionality of Welfare State Attitudes: A European Cross-National Study”, Femke Roosma et al. state that the main goal of welfare is to achieve social equity through the secondary distribution of income and resources. Welfare system alleviates injustice in society, so that people in the society can earn money in an equal position. Social equity plays an important role in the development of the country’s economy, so social welfare is beneficial to the healthy development of the national economy. For example, Roosma states that in a competitive market, in order to allocate “scarce resources” (qtd. in Roemer 237), society need to distribute or “redistribute” (237) resources fairly. Roosma also tell us with the development of “democratization” and “industrialization”, making “redistribution a matter of justice and an urgent societal problem” (qtd. in Fleischaccker 237). The emergence of welfare aims to solve the unfair problems in the process of national economic development through “redistribution” (237). Redistribution “[reallocates] life chances by giving people equal opportunities and a certain socio-economic status” (237). He mentions that in today’s modern society, the redistribution of resources in welfare state is of great significance to social justice. The welfare state applies the fairness to every distribution of society in an effort to make people believe in the fairness of the system. The goal of the welfare is to give everyone equal rights, and fair redistribution gives people more chances to develop economic throughout the process of welfare system.
    2) Social welfare system brings vitality to the market: What’s more, Roomsa tells us in recent decades “welfare policies emphasise activation of people for the labour market or other forms of societal participation” (239). People have working passion can help to transfer “welfare to workfare” (239). He explains to us that social welfare brings energy to the market by promoting social equity. Social equity let people not be treated unfairly in the workplace, so people will be more energetic in the work. If people are lazy in their work, even if more people participate in production, it will still not promote the development of the company. Only when people’s work is active, the country’s economy can develop. Therefore, social welfare is beneficial to the healthy development of the national economy. Welfare aims to make people generally benefit, so welfare system does lots of effort to promote social justice. Social justice. It plays an important role in the development of country’s economy.
    B. People who are against social welfare
    1) Social welfare system increases unemployment: Firstly, social welfare reduces the number of
    employees, thus reducing the company’s output, which eventually slows down the speed of national economic development. With fewer productive people in society, the country’s economy will no longer growing. In “Welfare State Institutions and Labor Market Trends,” Dr. Martin Ehlert, a researcher at the Berlin Social Science Center, points out that unemployment payments in the United States “coverage of almost all industries-leading to a wide variety of unemployment compensation policies throughout the country” (70). From his words, we can see that the country’s social welfare gives unemployed people in various industries “unemployment compensation” (Ehlert 70), so that people do not have to worry about their survival after losing their jobs. For example, Ehlert states that in Germany, “[s]ince 1998, the unemployed receive 67 percent of their former monthly net wages if they live with children and 60 per cent if they live without children” (71). Ehlert uses data to prove to us that if the unemployed people don’t work, they can still get more than half of their original salary. People in welfare countries do not have to worry about being unable to live without work, because if they are unemployed, they can receive subsidies from their countries. Above we can see that if there are more people who are not working in the society, this will not only increase the government’s subsidy cost, but also reduce the company’s output. Robert H. Haveman, a professor of economics at University of Melbourne, states that “in both the United States and Western Europe, the long￾duration unemployment rate has been secularly increasing” (44). He points out that the problem of increasing number of unemployed people is common in developed welfare countries. The reason why we research the relationship and impact of welfare policy on the “unemployment rate” is because the welfare policy plays an important role in “dealing with the labor market” (Rueda et al. 296). In addition, Rueda’s point of view prefers to support that “the welfare state today remains a powerful buffer between unemployment and inequality” (296). He thinks that the main reason for unemployment is because of welfare policy. Due to welfare policy, unemployment situation in welfare state will be more severe. A lot of unemployed people will cause fewer people in the companies to provide goods. With fewer companies providing goods, the economic level of the country will naturally decrease, which eventually slows down the speed of national economic development. Therefore, with fewer productive people in society, the country’s economy is no longer growing. High social welfare will eventually be harmful to the economy.
    2) Social welfare system increases government burden: Secondly, social welfare increases the government’s financial spending, which eventually
    slows down the speed of national economic development. With the increasing proportion of social welfare spending in government finances, government’s financial pressure will continue to increase and its economy will continue to decrease. According to Claus Offe, a professor emeritus of political sociology at the
    Hertie School of Governance, “welfare state has become too heavy a burden on the economy, the growth potential and competitiveness of which are consequently seen to suffer from the excessive costs and rigidities” (504). In other words, he points out that government huge social welfare spending actually increases the production cost of companies. If the production cost is too high, companies will lose profit. As a result, companies have to stop production. Companies stop production will slow down the development of the welfare state economy. What’s more, government huge financial spending is not good for the healthy development of the economy. Greece is a typical country, so let’s take Greece as an example. Sofia Vasilopoulou and Daphne Halikiopoulou state that “since the eruption of the eurozone crisis in late 2009, Greece has plunged into deep recession” (14). They argue that Greek government’s huge welfare spending leads the country’s economy to be in a big trouble. Vasilopoulou and Halikiopoulou state that “austerity measures increase taxes on income and property, sales taxes rise from 19 percent to 23 percent, and the tax-free threshold for income has lowered significantly. All sectors of the population suffered, especially the middle class” (14). They mean that because Greece’s current economic situation is bad, and Greek government is not wealthy, so Greek government has to takes measures to increase government revenue and reduce people’s consumption by raising taxes. Increasing taxes by Greek government causes a decline in living standards for almost all Greeks, and many people become poor as a result. Increasing taxes will cause Greece’s economy even worse. During the time of economic difficulty, “Greek citizens increasingly lost their trust in the system,” and “the legitimacy of the system is called into question” (Vasilopoulou and Halikiopoulou 15). Greek government has to collect taxes from people’s daily consumption and production in order to pay for welfare. A large part of benefits of people’s production are used to pay taxes to the government, which makes people’s live difficult and country’s economic in danger. Because the economy of welfare state is not energetic, companies and individuals will find it hard to make money. Therefore, social welfare will eventually slow down the speed of national economic development. High social welfare is harmful to the economy.
    3) Social welfare system reduces market efficiency: Social welfare system actually imposes great pressure on the development of companies and the national economy. Welfare makes the country’s market poor efficiency, which seriously blocks country’s economic progress. For example, according to data from Femke Roosma’s survey of 22 European countries in 2008, Roosma says that “the European public is most critical about the welfare state’s effectiveness: About 50-60 % perceive substantial abuse and underuse of welfare benefits” (243). He mentions that more than half of the people in European society think that the efficiency level of their countries is very low. People from 22 European countries also believe that country does not allocate welfare properly. Some people may try to get more benefits provided by the government to avoid their responsibilities, and at the same time some people may not fully enjoy the convenience of welfare. The lack of proper allocation benefits in the welfare state will make people realize that welfare leads to social injustice, which is contrary to the goal of the welfare. Also, according to data from Femke Roosma’s survey of 22 European countries in 2008, Roosma says that there is a “relatively high correlation of 0.538 between the dimensions efficiency and outcomes-policy” (244). This result shows “an inefficient system will cause poor policy outcome” (244). He wants to tell us that the efficiency of a country has a great impact on the results of a national policy. According to the first example above, we see that welfare can lead to inefficiency, and from this example we can continue to see that inefficiency can make the government’s policies worse. The failure to implement government policies is not conducive to the healthy development of the country. Roomsa says “such disappointment with the welfare state’s outcomes may lead to decreasing legitimacy” (244). Welfare does not achieve the expected results. The legal effect of welfare has declined, and people no longer believe that welfare can bring justice to society and promote economic progress. Therefore, social welfare system actually imposes great pressure on the development of companies and the national economy. Welfare makes the market poor efficiency, which seriously blocks country’s economic progress.Advances in Economics, Business and Management Research, volume 15077
    CONCLUSION:
    To sum up, in the face of global competition in today’s society, the impact of high social welfare on economic development has always been a controversial topic. Western developed countries’ social welfare system has the characteristics of equalization, universalization, high fiscal expenditure, and government burden. The political system of a country is closely related to its economy. Nowadays, a group of people question the legitimacy of the system. High welfare is a double-edged sword, so how to maintain high welfare under the background of capital globalization still needs to be tested.

  44. Avatar Okoye favour says:

    NAME:OKOYE FAVOUR
    REG NO:2018/249186
    ECONOMICS DEPARTMENT

         After the world war,the world Bank was created,initially it was created so as to help those contries that were drastically destroyed during the war ,by giving out loans to help them rebuild the damages as a result of the war.
            The world Bank embarked on a strategy to help developing nations which is known as PROJECT LENDING. Project lending is a process where by the world Bank gives out loan to developing nations to focus on the strategic sectors that aids growth eg infrastructure,industries etc Project lending believes that investing in those sectors that aids growth will make the whole economy grow together. Even after giving out this loans to developing nations the world bank discovered that some countries were still doing poorly as a result of focusing the money on those sectors and eventually the money did not reach other sectors,this made the world Bank embark on another project called PROGRAMME LENDING. 
            The aim of programme lending was to grow the economy equally that is investing on all the parts of the economy,so as the economy grows simultaneously.
    NAME:OKOYE FAVOUR
    REG NO:2018/249186
    ECONOMICS DEPARTMENT

         After the world war,the world Bank was created,initially it was created so as to help those contries that were drastically destroyed during the war ,by giving out loans to help them rebuild the damages as a result of the war.
            The world Bank embarked on a strategy to help developing nations which is known as PROJECT LENDING. Project lending is a process where by the world Bank gives out loan to developing nations to focus on the strategic sectors that aids growth eg infrastructure,industries etc Project lending believes that investing in those sectors that aids growth will make the whole economy grow together. Even after giving out this loans to developing nations the world bank discovered that some countries were still doing poorly as a result of focusing the money on those sectors and eventually the money did not reach other sectors,this made the world Bank embark on another project called PROGRAMME LENDING. 
            The aim of programme lending was to grow the economy equally that is investing on all the parts of the economy,so as the economy grows simultaneously.

  45. Avatar Ugwu Emmanuel chibuike says:

    Name: Ugwu Emmanuel chibuike
    Reg no: 2019/248403
    Department: education economics

    The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle- and low-income countries.
    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.

  46. Avatar Urama Isaac Anenechukwu says:

    Name: Urama Isaac Anenechukwu
    Reg. no: 2018/243823
    Course Code: Eco 362
    Department: Economics
    Lecturer: Dr. Anthony Orji, (Rt. Hon. Mr President)
    First online Assignment on Development Economics 2. (Eco 362)

    ANSWER:
    The World Bank is an international organization that helps emerging market countries to reduce poverty. Its first goal is to end extreme poverty. It wants no more than 3% of people to live on $1.90 a day or less by 2030. Its second goal is to promote shared prosperity. It wants to improve the incomes of the bottom 40% of the population in each country.1 Since 1947, the World Bank has funded more than 12,000 projects.2

    The World Bank is not a bank in the conventional sense of the word. Instead, it consists of two organizations. One is the International Bank for Reconstruction and Development, which provides loans, credit, and grants. The second is the International Development Association, which provides low- or no-interest loans and grants to low-income countries.
    The Bank works closely with three other organizations in the World Bank Group:
    (1). International Monetary Fund (IMF)
    (2) The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments.
    (3). The Multilateral Investment Guarantee Agency (MIGA) insures lenders and investors against political risk such as war.
    (4). The International Centre for the Settlement of Investment Disputes (ICSID) settles investment disputes between investors and countries
    History of the World Bank
    The World Bank was created in 1944 out of the Bretton Woods Agreement, which was secured under the auspices of the United Nations in the latter days of World War II. The Bretton Woods Agreement included several components: a collective international monetary system, the formation of the World Bank, and the creation of the International Monetary Fund (IMF).
    Since their founding, both the World Bank and the International Monetary Fund have worked toward many of the same goals. The original goals of both the World Bank and IMF were to support European and Asian countries needing financing to fund post-war reconstruction efforts.
    Both the World Bank and IMF outlasted the collective international monetary system which was central to the Bretton Woods Agreement. President Nixon halted the Bretton Woods international monetary system in the 1970s. However, the World Bank and IMF remained open and continued to thrive on providing worldwide aid.
    The World Bank and IMF are headquartered in Washington, D.C. The World Bank currently has more than 10,000 employees in more than 130 offices worldwide.10
    Though titled as a bank, the World Bank, is not necessarily a bank in the traditional, chartered meanings of the word. The World Bank and its subsidiary groups operate within their own provisions and develop their own proprietary financial assistance products, all with the same goal of serving countries’ capital needs internationally.
    The World Bank’s counterpart, the IMF, is structured more like a credit fund. The differing in the structuring of the two entities and their product offerings allows them to provide different types of financial lending and financing support. Each entity also has several of its own distinct responsibilities for serving the global economy.
    Through the years, the World Bank has expanded from a single institution to a group of five unique and cooperative institutional organizations, known as the World Banks or collectively as the World Bank Group. The first organization is the International Bank for Reconstruction and Development (IBRD), an institution that provides debt financing to governments that are considered middle income. The second organization within the World Bank Group is the International Development Association (IDA), a group that gives interest-free loans to the governments of poor countries.

    The International Finance Corporation (IFC), the third organization, focuses on the private sector and provides developing countries with investment financing and financial advisory services. The fourth part of the World Bank Group is the Multilateral Investment Guarantee Agency (MIGA), an organization that promotes foreign direct investments in developing countries. The fifth organization is the International Centre for Settlement of Investment Disputes (ICSID), an entity that provides arbitration on international investment disputes.
    World Bank FAQs
    What Is the Purpose of the World Bank?
    The World Bank is an organization that provides funds, advice, and research to developing nations to help advance their economy and combat poverty.
    Who Owns the World Bank?
    No person, organization, government, or nation owns the World Bank. It is an organization made up of member countries, represented by a Board of Governors. 11 This Board governs the organization, creates policies, and appoints executive directors. The executive directors govern the Bank’s business and budget, and grant loan approvals. The president and managers manage the day-to-day operations.
    Where Does the World Bank Get Its Money?
    The World Bank receives funding from wealthy nations and from the issance of debt securities, such as bonds.
    Which Country Is the World Bank In?
    The World Bank is headquartered in Washington D.C.; however, it has locations in more than 130 countries, including Benin, Argentina, and China.12
    Who Is the CEO of the World Bank?
    The World Bank is led by President David Malpass.13 The organization’s Board of Directors is comprised of four separate Boards, one for each division of the World Bank. Each Board oversees the operations of their respective sector. For example, the Board for the International Bank for Reconstruction and Development (IBRD) oversees the operations for that segment, and the Board for the International Development Agency (IDA) oversees the operations for that segment

    A Brief History of World Bank And IMF
    The 1944 Bretton Woods Conference established The World Bank. Its loans helped European countries rebuild after World War II.29. That made it the world’s first multilateral development bank.
    It was funded through the sale of bonds. Its first loans were to France and other European countries.29 Since then, the Bank has worked with developing countries such as India and China on projects that include rail.
    World Bank lending became controversial. Many countries used their loans to prevent a sovereign debt default. That debt was often a result of overspending and extensive borrowing. Even with the World Bank’s help, many countries devalued their currencies, which caused hyperinflation.
    To combat this, the Bank required austerity measures. Borrowing countries had to agree to cut back on spending and support their currency. Unfortunately, this usually caused a recession, making it difficult to repay the Bank’s loans.

    Founded at the Bretton Woods conference in 1944, the two institutions have complementary missions. The World Bank Group works with developing countries to reduce poverty and increase shared prosperity, while the International Monetary Fund serves to stabilize the international monetary system and acts as a monitor of the world’s currencies. The World Bank Group provides financing, policy advice, and technical assistance to governments, and also focuses on strengthening the private sector in developing countries. The IMF keeps track of the economy globally and in member countries, lends to countries with balance of payments difficulties, and gives practical help to members. Countries must first join the IMF to be eligible to join the World Bank Group; today, each institution has 189 member countries.
    The World Bank Group
    The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.a
    World Bank Attacked Poverty.
    Early world Bank was centered on the concept of economic development.
    It was quite obvious during the early days of the world bank that the reconstruction of the Europe will take priority over development but in a actuality, the world Bank only made few laon to Europe, and this was due to the us marshal plan, which took over most of the finances for the reconstruction of Europe, this US Marshal Plan was usually called “European Recovery Plan (ERP)”.
    It was an American initiative to aid Western Europe in which US gave the sum of $13 Billion (US Dollars) at that time, which is approximated to $130 Billion (US Dollars) in current US Value to Europe in economic support to help rebuild the western Europe after the 2nd world war.
    Since that initiative by The US had eliminated one of the main responsibilities of the world Bank, the world Bank then made many laons to many developing countries within the next 3 decades, and this made many developing nation grew

    The GATT vs. the WTO
    GATT Paved the way for the WTO to took over in place of GATT. A component of the WTO enforces aspects of GATT
    The GATT lives on as the foundation of the WTO. The 1947 agreement itself is defunct.9 But, its provisions were incorporated into the GATT 1994 agreement. That was designed to keep the trade agreements going while the WTO was being set up. Therefore, the GATT 1994 is itself a component of the WTO Agreement.
    What Is the World Bank?
    The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle- and low-income countries.
    Currently, the World Bank has two stated goals that it aims to achieve by 2030. The first is to end extreme poverty by decreasing the number of people living on less than $1.90 a day to below 3% of the world population. The second is to increase overall prosperity by increasing income growth in the bottom 40% of every country in the world.
    KEY TAKEAWAYS
    The World Bank is an international organization that provides financing, advice, and research to developing nations to help advance their economies.
    The World Bank and International Monetary Fund (IMF)—founded simultaneously under the Bretton Woods Agreement—both seek to serve international governments.
    The World Bank has expanded to become known as the World Bank Group with five cooperative organizations, sometimes known as the World Banks.
    The World Bank Group offers a multitude of proprietary financial assistance, products, and solutions for international governments, as well as a range of research-based thought leadership for the global economy at large.
    The World Bank’s Human Capital Project seeks to help nations invest in and develop their human capital to produce a better society and economy.
    Understanding the World Bank
    The World Bank is a provider of financial and technical assistance to individual countries around the globe. The bank considers itself a unique financial institution that sets up partnerships to reduce poverty and support economic development.
    The World Bank supplies qualifying governments with low-interest loans, zero-interest credits, and grants, all to support the development of individual economies. Debt borrowings and cash infusions help with global education, healthcare, public administration, infrastructure, and private-sector development. The World Bank also shares information with various entities through policy advice, research and analysis, and technical assistance. It offers advice and training for both the public and private sectors.
    Examples of What the World Bank Does
    The World Bank provides financing, advice, and other resources to developing countries in the world especially in the areas of education, public safety, health, and other areas of need. Often, nations, organizations, and other institutions partner with the World Bank to sponsor development projects.
    Human Capital Project
    In 2017, the World Bank created the Human Capital Project, which seeks to help countries invest in and develop their people to be productive citizens and active contributors to their economy.1 World leaders are urged to prioritize investments in education, healthcare, and social protections, and, in return, they will realize a stronger economy full of healthy, thriving adults.
    The Human Capital project outlines how governments should invest in providing quality, affordable childcare to support and improve child development, increase women’s access to better employment opportunities, and increase economic growth, to name a few.
    To build human capital globally, the World Bank has identified several areas of focus: the Human Capital Index (HCI), measurement and research, and country engagement.2
    Created in October 2018, the Human Capital Index summarizes a nation’s investments in its human capital, specifically concerning health and education. The index is used to identify what is lost from the lack of investments in human capital; it also prompts leaders to think of how to remedy these deficiencies.
    Beyond analyzing human capital, the World Bank measures the effectiveness of a nation’s educational and healthcare systems. Doing so helps them identify what should be continued and what should be changed. It can also give insight on where to allocate resources.
    Country engagement requires a country to take a “whole government” approach to addressing factors that compromise human capital. The nation, its leaders, and influencers band together to champion reducing poverty and increasing shared prosperity.
    National Immunization Support Project
    In April 2016, the World Bank approved the National Immunization Support Project for Pakistan.3 This project, costing an estimated $377.41 million, aims to increase the equitable distribution of vaccines to children ages 0 to 23 months.
    The project consists of five components that are designed to enhance the country’s vaccine distribution to the most vulnerable. The first component creates a governance structure and addresses logistics, monitoring, and evaluation systems. The second component involves performance planning and the alignment of skilled human resources.
    The third component increases the awareness of and promotes the program among Pakistan’s citizens, as well as addresses how their schools’ curriculum aligns with this initiative. The fourth component makes it possible to obtain the necessary equipment to widely distribute vaccines and increase the supply chain for vaccines. Lastly, the fifth component includes being able to expand the program’s reach and enhance research and development in this field.
    Improving the Educational system
    The Learning for the Future project was created to enhance children’s readiness for school and the effectiveness of secondary instruction in specific Kyrgyz Republic communities.4 The project consists of two components: increasing the equitable access of early childhood education and improving the effectiveness of instruction in secondary education.
    To meet these objectives, the program establishes 500 community-based kindergarten programs, which will allow for the enrollment of 20,000 children. To increase the effectiveness of instruction, the project finances a training program for 500 new teachers and provides digital resources to complement existing learning resources (e.g., textbooks). The project also assesses how well students learn, cognitively and non-cognitively.
    World Bank Financials
    The World Bank is an organization, rather than a bank. Therefore, its financials are not comparable to traditional financial institutions.
    Within the organization operates different sectors: the International Bank of Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).5
    The World Bank has loaned the most money, $122,746.71 million, to India.
    The IBRD, the original World Bank, loans money to creditworthy low-income or middle-income countries. For the fiscal year ended June 30, 2020, the IBRD recorded net interest revenues of $2,414 million and allocable income of $1,381 million. Its equity-to-loans ratio was 22.8%.6
    The IDA issues credits, or interest-free loans, to the poorest nations. For the fiscal year ended June 30, 2020, the World Bank recorded an adjusted net income of $724 million and a deployable strategic capital (DSC) ratio of 35.8%, which is the available capital divided by the capital needed to support the portfolio.7
    IFC provides funds and guidance to the private sector for the purpose of helping developing nations stay on a growth trajectory. For the fiscal year ended June 30, 2020, the World Bank recorded net income loss of $1,672 million and a total comprehensive income loss of $2,424. Its DSC ratio was 18%.8
    Lastly, MIGA directs investments to the poorest countries to help reduce poverty and improve the welfare of a nation’s citizens. For the fiscal year ended June 30, 2020, the World Bank recorded net interest revenues of $57 million.
    For the fiscal year 2020, the World Bank has distributed $27,975.99 million in IBRD loans, $22,423.69 in interest-free loans or credits, and $7,991.47 million in grants.9
    It should be Noted again that the World Bank Group consists of five organizations:
    1. The International Bank for Reconstruction and Development
    The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries.
    2. The International Development Association
    The International Development Association (IDA) provides interest-free loans — called credits — and grants to governments of the poorest countries.
    Together, IBRD and IDA make up the World Bank.
    3. The International Finance Corporation
    The International Finance Corporation (IFC) is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.
    4. The Multilateral Investment Guarantee Agency
    The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders.
    5. The International Centre for Settlement of Investment Disputes
    The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes

  47. Avatar Peter Emmanuel uzoma says:

    Name: Peter Emmanuel uzoma
    Reg no: 2018/246577
    Department : education/economics
    Assignment
    The World Bank is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
    Together, IBRD and IDA form the World Bank, which provides financing, policy advice, and technical assistance to governments of developing countries. IDA focuses on the world’s poorest countries, while IBRD assists middle-income and creditworthy poorer countries.
    IFC, MIGA, and ICSID focus on strengthening the private sector in developing countries. Through these institutions, the World Bank Group provides financing, technical assistance, political risk insurance, and settlement of disputes to private enterprises, including financial institutions.
    The speed and scale of urbanization brings challenges, including meeting accelerated demand for affordable housing, well-connected transport systems, and other infrastructure, basic services, as well as jobs, particularly for the nearly 1 billion urban poor who live in informal settlements to be near opportunities. Conflicts are on the rise, resulting in 60% of forcibly displaced people living in urban areas.
    Once a city is built, its physical form and land use patterns can be locked in for generations, leading to unsustainable sprawl. The expansion of urban land consumption outpaces population growth by as much as 50%, which is expected to add 1.2 million km² of new urban built up area to the world in the three decades. Such sprawl puts pressure on land and natural resources, resulting in undesirable outcomes; cities consume two thirds of global energy consumption and account for more than 70% of greenhouse gas emissions.
    Cities play an increasingly important role in tackling climate change, because their exposure to climate and disaster risk increases as they grow. Almost half a billion urban residents live in coastal areas, increasing their vulnerability to storm surges and sea level rise. In the 136 biggest coastal cities, there are 100 million people – or 20% of their population – and $4.7 trillion in assets exposed to coastal floods. Around 90% of urban expansion in developing countries is near hazard-prone areas and built through informal and unplanned settlements.
    In 2017, the World Bank created the Human Capital Project, which seeks to help countries invest in and develop their people to be productive citizens and active contributors to their economy.1 World leaders are urged to prioritize investments in education, healthcare, and social protections, and, in return, they will realize a stronger economy full of healthy, thriving adults.
    The Human Capital project outlines how governments should invest in providing quality, affordable childcare to support and improve child development, increase women’s access to better employment opportunities, and increase economic growth, to name a few.
    To build human capital globally, the World Bank has identified several areas of focus: the Human Capital Index (HCI), measurement and research, and country engagement. Created in October 2018, the Human Capital Index summarizes a nation’s investments in its human capital, specifically concerning health and education. The index is used to identify what is lost from the lack of investments in human capital; it also prompts leaders to think of how to remedy these deficiencies.
    The World Bank is an organization, rather than a bank. Therefore, its financials are not comparable to traditional financial institutions. Within the organization operates different sectors: the International Bank of Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
    The IBRD, the original World Bank, loans money to creditworthy low-income or middle-income countries. For the fiscal year ended June 30, 2020, the IBRD recorded net interest revenues of $2,414 million and allocable income of $1,381 million. Its equity-to-loans ratio was 22.8%.
    The IDA issues credits, or interest-free loans, to the poorest nations. For the fiscal year ended June 30, 2020, the World Bank recorded an adjusted net income of $724 million and a deployable strategic capital (DSC) ratio of 35.8%, which is the available capital divided by the capital needed to support the portfolio.
    IFC provides funds and guidance to the private sector for the purpose of helping developing nations stay on a growth trajectory. For the fiscal year ended June 30, 2020, the World Bank recorded net income loss of $1,672 million and a total comprehensive income loss of $2,424. Its DSC ratio was 18%.
    Lastly, MIGA directs investments to the poorest countries to help reduce poverty and improve the welfare of a nation’s citizens. For the fiscal year ended June 30, 2020, the World Bank recorded net interest revenues of $57 million.For the fiscal year 2020, the World Bank has distributed $27,975.99 million in IBRD loans, $22,423.69 in interest-free loans or credits, and $7,991.47 million in grants.

  48. Avatar ONWE, IRENE EBERE says:

    NAME: ONWE, IRENE EBERE
    REG NO: 2018/242201
    DEPARTMENT: EDUCATION AND ECONOMICS
    Email: onwe.irene.242201@unn.edu.ng

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER:
    In discussing the above, By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    Robert McNamara’s address to the Board of Governors at the 1973 Annual General Meeting in Nairobi, Kenya. In this famous speech, McNamara proposed a strategy for rural development with an emphasis on productivity of smallholder agriculture. He warned that official development assistance (ODA) is inadequate, and that over 800 million people live in absolute poverty. In the five years immediately following this speech, Bank Group financing of development efforts increased by over 40%.

    In this context he clarified his views regarding the distinction between absolute and relative poverty. Relative poverty means differences in affluence or well-being of populations within countries or across countries—some are faring better than others. Absolute poverty is a condition of life so degraded by disease, illiteracy, malnutrition, and squalor as to deny its victims basic human necessities. Absolute poverty is a condition of life affecting hundreds of millions of people and is the lot of some 40 percent of the 2 billion people living in the developing world. In addition, McNamara pointed to continued protracted problems of the developing countries: an insufficiency in foreign exchange due to trade difficulties, the inadequate flow of Official Development Assistance (ODA) from developed to developing countries, and the growing debt burden. Against this backdrop McNamara presented what the next five-year program of the Bank (1974–78) would look like. It was to address the challenge of poverty and economic growth. Put simply, “the growth is not equitably reaching the poor; and the poor are not significantly contributing to growth.” In order to change this, there was a fundamental need to reorient development policies, requiring accelerated action by the governments of virtually all developing countries, with support from an expanded flow of ODA. To reduce the distortion in income distribution within countries, a major part of the program should attack absolute poverty. McNamara pointed out that, while some of the absolute poor lived in urban slums, the vast majority lived in rural areas. And there the World Bank should confront their poverty. McNamara went on to outline a strategy for rural development. Rural poverty is largely concentrated on very small farms with low productivity and uncertain tenure of land. Traditionally, observers saw limited potential to improve the lot of the rural poor. And yet there was evidence that small farms have a great deal of untapped potential for cost-effective increases in productivity, and the fundamental goal of the program should be to increase the productivity and production of small farmers. McNamara outlined some of the key elements of a strategy to achieve precisely that objective, including access to credit, acceleration of land and tenancy reform, assured availability of water, expansion of extension services and applied research, greater access to public services, and organizational changes for supporting smallholder agriculture. For the Bank, increased productivity of the small subsistence farmer became a major goal for the 1974-78 period. Beyond doubt, this Nairobi speech became a milestone in the orientation of the World Bank, focusing on the bottom 40 percent of the populations in low-income countries and on the rural poor. This firm and strategic orientation built on McNamara’s own impulse and also on that of other organizations—bilateral agencies and nongovernmental organizations (NGOs) that had long been addressing rural poverty. The bottom line was that economic growth alone, while indispensable, was not sufficient to ensure economic development. To achieve human development, objectives of social equity had to be considered alongside economic growth.

  49. Avatar Chimezie Chiamaka Victoria says:

    Name : Chimezie Chiamaka Victoria
    Reg no : 2018/242202
    Email osvictoria70@gmail.com
    Yes. Between 1973 and 1980 the world bank led by Robert mc namara became a significant actor in the push to address social welfare in developing countries this was because at that time the world bank had made partnership with central banks of other countries to improve areas and programs which will lead to an improved welfare of nations. These growth can be noticed in the equity program which came as a result of the new program that was initiated by the world bank.loans given by the world bank helped in developing program which improved the health, nutrition, family planning, education of the people. The main aim of these programs was to provide for the Improvement of the under employed sector of the economy and citizens of the country ie providing vaccines to minimize effects of deadly diseases, assist people in getting good food and nutrition. Note that before this program no family planning, but the world bank aid in raising consiousness on the NEW.

  50. Avatar Ezeaku Anderson Esomchukwu says:

    Name: Ezeaku Anderson Esomchukwu
    Reg no: 2018/242413
    Dept: Economics
    Course code: Eco 362

    in his 13 years at the bank, Robert McNamara introduced key changes, most notably, shifting the banks economic development policies toward targeted poverty reduction. By the 1970s, over 40% of people in developing countries lived in absolute poverty and in response the world banks project aimed to help the poor directly. World bank president Robert McNamara coined the term “absolute
    poverty” in his 1973 Annual meeting speech, and was the first to communicate the world banks twin goal’s”to accelerate economic growth and to reduce poverty.” These concepts transformed the bank into the institution focused on development that we know today.
    Lending to member countries increased twelve fold between I968 and 1981 and expanded into new sectors: environment, rural development, water, sanitation, education and others. The global effort to eradicate river blindness is one example of how the bank worked to improve the lives of the poor, which was different from the last infrastructural projects that were done in the banks first 20 years. The first loan for the environment was in 1971 for pollution control in Brazil, and the bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise.

  51. Avatar Okonkwo chinaza favour says:

    NAME: OKONKWO CHINAZA FAVOUR
    REG NO: 2018/242315
    DEPARTMENT: ECONOMICS

    DEVELOPMENT IN THE 1960’S AND 1970’S AND THE WORLD BANK LENDING

    The world was founded in the 1940’s and originally, it’s loans were to helped rebuild countries devastated by world war II and to improve economic development. After the European recovery program took over the responsibility of reconstructing Europe, the world bank focus shifted from reconstruction to development with heavy emphasis on infrastructure such as dams,roads, electricity etc, industry and agriculture. The world bank project lending to the developing countries was intending to create an enabling environment for the factors that leads to economic growth.
    Many developing nation’s witnessed an increase in their GDP but these economic growth was accompanied by uneven distribution of resources. In addition, these development program tends to favour industrialization over agriculture development coupled with rural urban migration, all these led to increased poverty in many less developed nations.
    Due to these increased poverty, there was a shift which tends towards the eradication of poverty. The world bank established a social program which was to directly address poverty through improving education,health, housing, transportation and energy. The shift to program lending reflected the world bank shift to equity from growth even though project lending which aimed at the development of infrastructure, industry and agriculture continued.

  52. Avatar Nwakpa Ruth Nnenna. 2018/242402. Economics department department says:

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)

    Funding the Bank

    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.

    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

    McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.

  53. Avatar Mbaso Raluchi says:

    NAME: MBASO RALUCHI
    REG NO: 2018/242437
    DEPARTMENT: ECONOMICS

    The world bank, is an organization made up of member countries, formed by a Board of Governors, this Board controls the organization, generates policies, and determines executive directors. The executive directors controls all the Bank’s business. The president and managers direct the daily activities.
    Robert McNamara examined the principal issue to ascertain economic growth. His interests were on Latin American economies and expectations for increased lendings in education and agriculture. He resolved to achieve equitable distribution of the benefits of increased production, balanced growth, export diversification, strengthened regional cooperation. He stared that spontaneous population growth has a negative effect on economic growth and emphasized the importance of stabilizing population growth. McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports. Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.
    The world bank has helped developing countries, it works with the government and private sectors to enhance their economic growth, it focuses on dealing with the major economic problems nations faced after the cold war. The drive was to completely eradicate poverty, hence they supported development through loans to countries to supported education and health care facilities, extractive activities, food production and agricultural activities . The bank tries to promote strategies that leads to economic success. It tries to address critical issues while paving way for sustainable development.
    World bank continued lending towards particular development projects of countries because that is the aim of the bank. As economists, we know that Improvements in health care, educational infrastructures, better trading environment are all necessities towards attaining economic growth. Hence the projected lending is simply a rational decision by the world bank.

  54. Avatar OKELEKE CHINEMEMMA VICTORY says:

    • Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)
    • NAME: Okeleke chinememma Victory
    • REG NO : 2018/247843
    • DEPARTMENT: ECONOMICS
    • QUESTION:
    • Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical program that had direct impact on the populace. Discuss
    Discussion:
    Prior to 1970s and 1980s when World bank started their programs, there was nothing like family planning, but it was the campaign of world bank that led to it’s recognition.McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources. The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries. The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period. These programs were aimed at improving
    (a) Housing
    (b) Education
    (c) Health
    (d) Energy
    (e) Transportation.
    And other welfare activities that enhances sustainable development in an economy and promote economic development. The world bank looked at certain critical areas that affect general improvement of lives even vaccination against deadly diseases.

  55. Avatar Nelson Favour Ogechukwu says:

    Name: Nelson Favour Ogechukwu
    Reg No: 2018/245389
    Dept: Education Economics
    Email: nelsonfavour38@gmail.com
    Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    Reference
    https://www.worldbank.org/en/archive/history/past-presidents/robert-strange-mcnamara

  56. Avatar Onyezor Jessica says:

    NAME : ONYEZOR JESSICA NGOZICHUKWU
    REG NO: 2018/249716
    DEPARTMENT: ECONOMICS

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a critical mass of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development. McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today. Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 years. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

  57. Avatar CHIGOZIE+ONYEDIKACHUKWU+GODSWILL+2018/241849 says:

    The 5th President of the world bank, Robert McNamara carried out a great activity in his tenure as the President, which really impacted the poor developing countries at that time. He helped jn the eradication of poverty amongst various poor countries by working hand in hand with the various rulers or government of the various countries. Not just working with them but also supplying the necessary capital to these various countries in the form of loans, which enabled them develop their infrastructures as well as other crucial sectors of its economy. Its is recorded in history that he is the first to carry out such an act as the President of the world bank. came to the Bank brimming with energy, forceful, active, pushing to get He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. Ever since the tenure of McNamara,the Bank began to address problems of income disparity and poverty. They became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

  58. Avatar Onah Munachimso Modester says:

    Onah Munachimso Modester. 2018/242421
    Economics.
    During that period of time,the cold war wanted to be a hindrance to the work of the world bank. They wanted to work with the government to eradicate poverty in the developing nations. The government of the developing countries improved their nations with the help of world bank. The world bank lent large amount of money to facilitate rural and urban development and the development of small scale industry. Bank loans also helped in the improvement of family planning,health, nutrition and educational services. This helped for the provision of impoverished and under employed sectors of the population in a country.Edit
    For the poorest developing countries in the world, the bank’s assistance plans are based on poverty reduction strategies; by combining an analysis of local groups with an analysis of the country’s financial and economic situation the World Bank develops a plan pertaining to the country in question. The government then identifies the country’s priorities and targets for the reduction of poverty, and the World Bank instigates its aid efforts correspondingly.

  59. Avatar Ezenwa+chibuzo+franklin says:

    NAME: EZENWA CHIBUZO FRANKLIN
    REG NO: 2018/242324
    EMAIL:Chibuzofranklin1000@gmail.com
    Dept : Education/economics
    Assignment
    ANSWER

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    Personal History of mcNamara

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    Role of the World Bank

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Funding the Bank
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.

  60. Avatar Uche Constance Chidera says:

    Name: Uche Constance Chidera
    Reg.No.: 2018/250689
    Department: Economics(Major)
    Course Code: Eco 362
    Email Address: derance1234@gmail.com

    Assignment Question:

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Assignment Answer:

    The developments and changes in the social life have led to change in the social needs.The economic crises experienced after the 1970s caused problems and criticized the Keynesian welfare state. Budget deficit was one of the problems that were faced due to the increase in unemployment, the decrease in economic growth, and the increase in retirement age and health expenditures due to the aging of the population.

    For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%.Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981.

    The World Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    McNamara encountered some challenges due to the oil shock,then came opposition from the U.S. government, and McNamara’s support for the fund caused tensions with the U.S. Treasury. But McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment of which one of the issue that came to characterize the McNamara presidency was the problem of population growth that led to absolute poverty. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    To tackle these problems of absolute poverty,strategized plans and programs were made,such as:

    -He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These method grew exponentially more in complex.

    -McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    -He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    -In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation.

    -He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.

    McNamara’s project lending aided in addressing social welfare to eradicate absolute poverty in the developing countries. These programs helped to boost the economies of these developing countries and helped to redistribute income evenly.

  61. Avatar NWIGBO BLESSING CHIAMAKA says:

    Robert S. McNamara
    5th President of the World Bank Group, 1968 – 1981
    Robert Strange McNamara, 1916 – 2009
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    Role of the World Bank
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Enlarging the Bank
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Robert McNamara in front of the Bank’s Main Complex.
    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.
    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period.
    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.
    The drastic increase in lending activities stimulated a debate over project quantity versus quality.
    WAR ON POVERTY.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  62. Avatar Ikechukwu Mmesoma Maryann says:

    Ikechukwu Mmesoma Maryann
    2018/241875

    In the past twenty years there has been a new wave of global interest in project finance as a tool for economic investment. Project finance helps finance new investment by structuring the financing around the project’s own operating cash flow and assets, without additional sponsor guarantees. Thus the technique is able to alleviate investment risk and raise finance at a relatively low cost, to the benefit of sponsor and investor alike. Though project finance has been in use for hundreds of years, primarily in mining and natural resource projects, its other possible applications—especially for financing large greenfield projects (new projects without any prior track record or operating history)—have only recently received serious attention. This is particularly so in developing markets.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  63. Avatar Folarin Gift Funmilayo says:

    Reg No: 2018/241234
    Department: Education/Economics
    Course Code: ECO 362
    Course Title: Development Economics 2

    1. Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer:
      Robert S. Mcnamara, (born June 9, 1916, San Francisco, California, U.S.—died July 6, 2009, Washington, D.C.), U.S. secretary of defense from 1961 to 1968 who revamped Pentagon operations and who played a major role in the nation’s military involvement in the Vietnam War. As early as 1965, however, McNamara had privately begun to question the wisdom of U.S. military involvement in Vietnam, and by 1967 he was openly seeking a way to launch peace negotiations. He initiated a top-secret full-scale investigation of the American commitment to Vietnam (later published as The Pentagon Papers), came out in opposition to continued bombing of North Vietnam (for which he lost influence in the Johnson administration), and in February 1968 left the Pentagon to become president of the World Bank. In his 13-year tenure as head of that institution, McNamara displayed what was generally regarded as great sensitivity to the needs of Third World nations. He retired from the World Bank in 1981 but remained active in many other organizations. He addressed issues such as world hunger, East-West relations, and other policy matters.
          McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports. Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending.
           McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers. The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period. The task of raising the necessary IDA funding – concessional funds for the Bank Group’s poorest members – became a personal challenge for McNamara. He used his extensive political contacts to bolster Congressional support in the U.S. He contacted prominent and persuasive people in the U.K., the Netherlands and Kuwait to urge positive action for IDA. McNamara’s efforts were successful. IDA replenishment amounts increased from an annual rate of $400 million in the second replenishment to $4 billion during the sixth. Some of this increase was automatically eaten up by rapid inflation during this period, but in real terms, IDA resources more than doubled between the fourth and sixth replenishment. Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period. One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers. He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold. Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    References
    1.https://www.worldbank.org/en/archive/history/past-presidents/robert-strange-mcnamara

    2.https://www.britannica.com/topic/Harvard-University

  64. Avatar Roland Ifeanyi Godwin says:

    Reg No: 2018/241822
    Department: Economics
    Course Code: ECO 362
    Course Title: Development Economics 2

    1. Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer:
    The history of the concept of poverty within the institutional framework of the World Bank can be traced, from its inception to its establishment of the dollar-a-day global poverty threshold. The Bank’s evolving conceptualization of poverty and how it related to the development process affected the policies that were advanced to boost the productivity of underdeveloped countries. Internal and external influences and constraints conditioned the Bank’s approach to poverty and its alleviation from the beginning, when poverty was conceived as a political issue beyond the scope of the Bank’s mandate. Separating the political implications of poverty alleviation from the Bank’s development agenda was tenuous, and by the 1970s a universal, absolute concept of poverty became the focal point of Bank operations. The eventual monetization of global poverty reflected the increasingly technical nature of the Bank’s development work and its need for a practical yardstick by which to measure the success of its anti-poverty policies.

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions. He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president. The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development. McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries. McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president. Namara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies. The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil producing states to provide this support. OPEC agreed to increase their commitments – $2 billion by 1974, and by 1975 OPEC members were contributing 3 per cent of their GNP. In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated. Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.

    References
    1.https://www.cambridge.org/core/journals/journal-of-global-history/article/abs/monetization-of-global-poverty-the-concept-of-poverty-in-world-bank-history-194490/F4C9C5503AC12C640452E224B3896FA8
    2.https://www.worldbank.org/en/archive/history/past-presidents/robert-strange-mcnamara

  65. Avatar Molokwu Chiamaka Goodness says:

    Molokwu Chiamaka Goodness
    2018/242393
    ECONOMICS

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    McNamara’s arrival to the World Bank presidency profoundly marked its history. Evoking the connection between security and development, McNamara stated that economic backwardness and the contradictions of modernization opened the doors to ideological radicals. For that reason, “without internal development, at least to a minimum level, order and stability are impossible”. This approach was related to Washington`s recognition of the failure of its predom-inantly military approach followed in Vietnam. This explains the US government’s emphasis on the increase of multilateral aid over bilateral aid, since according to Washington, the WB and the other MDBs could raise funds and make loans to peripheral countries geopolitically relevant to the US, without attracting direct criti-cism of its foreign policy and without the economic burden of bilateral programs. Assuming the position, McNamara stated that the balance of the ‘dec-ade of development’ was “disappointing” because income inequality among states had increased and the majority of the population of the planet lived in extreme conditions, despite the increase of rates of economic growth in large parts of the world. All this im-plied the recognition that the benefits of growth had not flowed downwards, as ‘trickle-down’ doctrine preached. According to McNamara, it was no longer valid to suppose that growth would necessarily lead to the reduction of poverty8. It was necessary to distin-guish them conceptually and to approach them in a separate and direct manner. On the other hand, McNamara denied that the reduction of poverty would occur at the cost of growth -as the immense majority of economists (inside and outside the World Bank) at that time stated-, insisting on its centrality. The slogan of the ‘assault on poverty’ was at the core of the new administration’s discourse. In its name, the McNamara administration more than doubled the loan portfo-lio. There was a considerable expansion of loans to the agricultural sector and, to a lesser degree, for social ‘purposes,’ such as education, basic sanitation, nutrition, urban hous-ing, and family planning. Although disbursements for Asia were intensified, operations in Africa and Latin America proportionally increased more. McNamara established annual loan targets for each country and defined that each employee’s professional efficiency would be assessed according to the volume of funds involved in projects for which they were responsible. Thus, the imperative of ‘moving the money’ at any cost became one of the most striking marks of the organizational culture of the World Bank.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters

  66. Avatar Ezema Samuel Nnamdi says:

    Ezema Samuel Nnamdi
    REG.NO. 2018/249458
    THE WORLD BANK CONFRONTS POVERTY
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimedEze to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    War on Poverty

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  67. Avatar Udeh Josephine Nkemakoram says:

    Udeh Josephine Nkemakoram
    2018/241843
    300 l
    Economics
    Eco 362
    Robert McNamara shaped the Bank as no one before him. He believed that world problems could be solved with the right financing. The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.“ He sharply increased the level of lending to developing countries, even when they faced the oil shock levels rose, funded by OPEC.
    IDA replenishment negotiations were stalled: The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
    In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position.
    He emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

  68. Avatar Ifiegbu Ononuju Julie star says:

    NAME: IFIEGBU ONONUJU JULIE.
    REGISTRATION NUMBER: 2017/245848( DEFERRED STUDENT).
    DEPARTMENT : ECONOMICS EDUCATION.

    QUESTIONS.
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    By the late 1960s, when Robert McNamara Became its president, for the first time the Bank began To direct its attention to poverty reduction and so to Put a priority on rural development. One focus was on Improved access to development resources for small Farmers who had been bypassed by previous development projects; success was mixed at best, however, and agricultural lending fell drastically in subsequent years. But in some respects work on poverty grew Through the 1970s, and the Bank has called this its human focus period emphasizing access of the poor to education and health services. But critics argued these Efforts were ineffective due to failure to work directly with people living in poverty and comprehend their constraints, or to deal with elites who undermined or siphoned resources from projects. In the 1980s, debt and finance became the focus. In the 1970s, and early 1980s developing countries took on a lot of debt. The Bank started concentrating structural adjustment loans—large loans that come with certain conditions on what the country can do with the Money, and What kinds of policies they need to implement, primarily focused on liberalization, marketization, and privatization. The activities of the Bank to a large extent merged with the Fund in this period and were heavily criticized by many economic development specialists and by developing countries. For example, the poor Were harmed by the emphasis on policies such as“cost recovery” for services that in many cases in Africa and elsewhere was expected to extend to school and health care fees. The goal of debt reduction was often explicit; Primary beneficiaries would include Foreign banks. “Structural adjustment” loans were designed to promote a fundamental restructuring of the economies of countries plagued by chronic trade and budget deficits by improving the macroeconomic policy environment with an emphasis on (a) mobilizing
    (b) improving public-sector efficiency by stressing price-determined allocation of public investments and improving the efficiency of public Enterprise,
    c) improving the productivity of public-sector investments by liberalizing trade and domestic economic policies, and (d) reforming institutional arrangements to sup port the adjustment process Critics of structural adjustment programs point to the fact that they frequently lead to increased hardships for the very poor and on occasion have substantially reversed the benefits of earlier economic progress. By the mid-1990s, the Bank resumed a greater focus on poverty.
    McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade

  69. Avatar Ugwu Chikaodinaka Augustina says:

    Name: Ugwu Chikaodinaka Augustina
    Reg no: 2018/246451
    Course: eco 362
    Dept: Economics

    Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth, it is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries.

    SMEs are less likely to be able to obtain bank loans than large firms; instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises. The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending. East Asia And Pacific accounts for the largest share (46%) of the total global finance gap and is followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%). The gap volume varies considerably region to region. Latin America and the Caribbean and the Middle East and North Africa regions, in particular, have the highest proportion of the finance gap compared to potential demand, measured at 87% and 88%, respectively. About half of formal SMEs don’t have access to formal credit. The financing gap is even larger when micro and informal enterprises are taken into account.

    What We Do
    A key area of the World Bank Group’s work is to improve SMEs’ access to finance and find innovative solutions to unlock sources of capital.
    Our approach is holistic, combining advisory and lending services to clients to increase the contribution that SMEs can make to the economy including underserved segments such as women owned SMEs.
    Advisory and Policy Support for SME finance mainly includes diagnostics, implementation support, global advocacy and knowledge sharing of good practice. For example we provide;

    – Financial sector assessments to determine areas of improvement in regulatory and policy aspects enabling increased responsible SME access to finance.

    – Implementation support of initiatives such as development of enabling environment, design and set up of credit guarantee schemes.

    – Improving credit infrastructure (credit reporting systems, secured transactions and collateral registries, and insolvency regimes) which can lead to greater SME access to finance.

    – Introducing innovation in SME finance such as e-lending platforms, use of alternative data for credit decisioning, e-invoicing, e-factoring and supply chain financing.

    – Policy work, analytical work, and other Advisory Services can also be provided in support of SME finance activities.

    – Advocacy for SME finance at global level through participating and supporting G20 Global Partnership for Financial Inclusion, Financial Stability Board, International Credit Committee for Credit Reporting on SME Finance related issues.

    – Knowledge management tools and flagship publications on good practice, successful models and policy frameworks.

  70. Avatar Ezeorah Mariagoretti Ukamaka says:

    Name : Ezeorah Mariagoretti Ukamaka
    Department: Social Science Education
    Registration Number: 2018/244494

    Answers

    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.[5] It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group.
    The World Bank Group is an extended family of five international organizations, and the parent organization of the World Bank, the collective name given to the first two listed organizations, the IBRD and the IDA:
    1. International Bank for Reconstruction and Development (IBRD)
    2. International Development Association (IDA)
    3. International Finance Corporation (IFC)
    4. Multilateral Investment Guarantee Agency (MIGA)
    5. International Centre for Settlement of Investment Disputes (ICSID)

    1973-1980
    From 1973 to 1980 the bank concentrated on meeting the basic needs of people in the developing world. The size and number of loans to borrowers greatly increased, as loan targets expanded from infrastructure into social services and other sectors.
    These changes can be attributed to Robert McNamara, who was appointed to the presidency in 1968 by Lyndon B. Johnson.  McNamara implored bank treasurer Eugene Rotberg to seek out new sources of capital outside of the northern banks that had been the primary sources of funding. Rotberg used the global bond market to increase the capital available to the bank. One consequence of the period of poverty alleviation lending was the rapid rise of Third World debt. From 1976 to 1980, developing world debt rose at an average annual rate of 20%.
    The World Bank Administrative Tribunal was established in 1980, to decide on disputes between the World Bank Group and its staff where allegation of non-observance of contracts of employment or terms of appointment had not been honored.

  71. Avatar E-Patrick Dalosah says:

    NAME: E-PATRICK DALOSAH
    REG NUMBER: 2018/242457
    DEPARTMENT:ECONOMICS
    LEVEL:300
    COURSE CODE: ECO 362

    Robert McNamara born in 1916, shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular.
         The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.
         The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity.

    Early-Stage SME Finance
    In Lebanon, the Innovative Small and Medium Enterprises (iSME) project is a $30 million investment lending operation providing equity co-investments in innovative young firms in addition to a grant funding window for seed stage firms. As of August 2019, iSME’s co-investment fund has invested $10.23 million across 22 investments and has been able to leverage $25.47 million in co-financing, demonstrating its ability to crowd in private sector financing and expand the market for early stage equity finance in Lebanon. To date, 60 out of 174 grantees had leveraged the iSME funding to raise a total of $13.1 million from various funding sources, a leverage ratio of 5.3 times. Overall, stakeholders’ consultations suggest that the iSME project could play an even larger role in the future financing of the Venture Capital (VC) sector by supporting existing VCs and emerging players, including increasing attention on a fund of funds approach, which could also cover growth funds (later stage and private equity).

    In India, our MSME Growth, Innovation and Inclusive Finance Project improved access to finance for MSMEs in three vital but underserved segments: early stage/startups, services, and manufacturing. A credit line of $500 million, provided to the Small Industry Development Bank of India (SIDBI), was designed to provide an affordable longer-term source of funding for underserved MSMEs. Technical assistance of about $3.7 million complemented the lending component and focused on capacity building of SIDBI and the participating financial institutions (PFIs). In addition to directly financing MSMEs, disbursing a total of $265 million in loans, the project pushed the frontiers of MSME financing through the development of innovative lending methods that reduced turnaround time, reached more underserved MSMEs, and crowded in more private sector financing. It also reached new clients, women-owned MSMEs, and MSMEs in low-income states. The project supported SIDBI to scale-up of the Fund of Funds for Startups, which aims to indirectly disburse $1.5 billion to startups by 2025.

  72. Avatar Ifiegbu Ononuju Julie says:

    NAME: IFIEGBU ONONUJU JULIE.
    REG NO : 2017/245848 (DEFERRED STUDENT).
    UNIT : ECONOMICS EDUCATION.
    Email: juliexfib@gmail.com

    QUESTION.

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss.

    ANSWER.
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    By the late 1960s, when Robert McNamara Became its president, for the first time the Bank began To direct its attention to poverty reduction and so to Put a priority on rural development. One focus was on Improved access to development resources for small Farmers who had been bypassed by previous development projects; success was mixed at best, however, and agricultural lending fell drastically in subsequent years. But in some respects work on poverty grew Through the 1970s, and the Bank has called this its human focus period emphasizing access of the poor to education and health services. But critics argued these Efforts were ineffective due to failure to work directly with people living in poverty and comprehend their constraints, or to deal with elites who undermined or siphoned resources from projects. In the 1980s, debt and finance became the focus. In the 1970s, and early 1980s developing countries took on a lot of debt. The Bank started concentrating structural adjustment loans—large loans that come with certain conditions on what the country can do with the Money, and What kinds of policies they need to implement, primarily focused on liberalization, marketization, and privatization. The activities of the Bank to a large extent merged with the Fund in this period and were heavily criticized by many economic development specialists and by developing countries. For example, the poor Were harmed by the emphasis on policies such as“cost recovery” for services that in many cases in Africa and elsewhere was expected to extend to school and health care fees. The goal of debt reduction was often explicit; Primary beneficiaries would include Foreign banks. “Structural adjustment” loans were designed to promote a fundamental restructuring of the economies of countries plagued by chronic trade and budget deficits by improving the macroeconomic policy environment with an emphasis on (a) mobilizing
    (b) improving public-sector efficiency by stressing price-determined allocation of public investments and improving the efficiency of public Enterprise,
    c) improving the productivity of public-sector investments by liberalizing trade and domestic economic policies, and (d) reforming institutional arrangements to sup port the adjustment process Critics of structural adjustment programs point to the fact that they frequently lead to increased hardships for the very poor and on occasion have substantially reversed the benefits of earlier economic progress. By the mid-1990s, the Bank resumed a greater focus on poverty.
    McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade

  73. Avatar Umeh Chinaza Lucy says:

    Name: Umeh Chinaza Lucy
    Reg no: 2018/246901
    Course code: Eco 362
    Department: Education Economics
    Assignment
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    DISCUSSION

    Firstly, The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
    The world bank led by Robert McNamara in 1973 and 1980 as the significant actor was to address social welfare in developing country. In his sense of vision it was of vital importance For the world bank to work with the government to eradicate absolute poverty in developing nations. Although the project lending was directed towards the development of infrastructure, industry and agriculture still continued, The program that was introduced during Robert McNamara era were directly aimed at the eradication of absolute poverty. The world bank loaned large sums to facilitate rural development, urban development and development of small-scale industry and other critical programmes that had direct impact on the population.

    Inconcluson Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success co
    untries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

  74. Avatar Hassan Fadhilah Olamide says:

    Hassan Fadhilah Olamide
    2019 /245672 (2/3)
    Education Economics
    Eco 362
    Assignment
    Question : Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Answer :
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    In 1973, forty years ago, then World Bank President Robert McNamara, former president of Ford Motor Company and former defense secretary to Presidents John Kennedy and Lyndon Johnson, delivered in Nairobi, Kenya, a solemn speech in which he proposed to the Board of Governors of the Bank a “new strategy”.The “ambitious objective” (sic) of McNamara was “to eradicate absolute poverty by the end of this century” (i. e. 2000). This goal is possible, McNamara explained, because “if the courageous decisions are made, then the pace of development can accelerate.”Kim adds ethical arguments to his economic analysis: “Is there anyone here today who would not want to erase this stain from our collective conscience?”
    McNamara had said the same in 1973: “Should we not make the moral precept our guide to action? The extremes of privilege and deprivation are simply no longer acceptable.”Four decades apart, the discourses of Nairobi and Georgetown are very similar. It has been argued that now the World Bank will pay more attention to inequalities and Kim said that, because of unequal distribution, “even if rapid economic expansion in the developing world continues, this doesn’t mean that everyone will automatically benefit from the development process.”
    But McNamara had already noticed, in 1973, that “despite a decade of unprecedented increase in the gross national product of the developing countries, the poorest segments of their population have received relatively little benefit (because) rapid growth has been accompanied by greater maldistribution of income in many developing countries.”Kim argues today that “ending extreme poverty is not enough. We must also work to boost the incomes of the poorest 40 percent of the population in each country.”
    Along the same lines, McNamara said four decades ago that “the growth of GNP is essentially an index of the welfare of the upper income groups. It is quite insensitive to what happens to the poorest 40%, who collectively receive only 10-15% of the total national income.”While 40 years ago the World Bank president criticized as “shortsighted” the “politically privileged elites” that “are rarely enthusiastic” over fighting poverty, the present World Bank President hails that “US President Barack Obama and UK Prime Minister David Cameron endorsed the vision of ending extreme poverty globally.”

  75. Avatar Chidozie Julieth Chisom says:

    NAME – CHIDOZIE JULIETH CHISOM
    REG NO – 2018/250055
    DEPARTMENT – EDUCATION ECONOMICS
    Course code -Eco 362
    Email – chidoziejulieth165@gmail.com

    ANSWER:
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears
    The ambitious objective of McNamara was to eradicate absolute poverty by the end of this century” (i. e. 2000). This goal is possible if the courageous decisions are made.
    he emphasized that “eradicating poverty means in practice the elimination of malnutrition and illiteracy, the reduction of infant mortality, and the raising of life-expectancy standards to those of the developed nations.”
    But due to unequal distribution, even if rapid economic expansion in the developing world continues, this doesn’t mean that everyone will automatically benefit from the development process.
    But McNamara had already noticed, in 1973, that “despite a decade of unprecedented increase in the gross national product of the developing countries, the poorest segments of their population have received relatively little benefit (because) rapid growth has been accompanied by greater maldistribution of income in many developing countries.”
    The role that the richer nations would not turn away from, was clearly spelled out forty years ago. McNamara said then: “If the governments of the developing world who must measure the risks of reform against the risks of revolution – are prepared to exercise the requisite political will to assault the problem of poverty in the countryside, then the governments of the wealthy nations must display equal courage. They must be prepared to help them by removing discriminatory trade barriers and by substantially expanding Official Development Assistance.”
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health.
    McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  76. Avatar OCHEME CHRISTIANA ENE says:

    REG NUMBER: 2018/249273
    DEPARTMENT: ECONOMICS(300L)
    COURSE: DEVELOPMENT ECONOMICS II(ECO 362)

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Over the years, the institutional framework of the World Bank has changed considerably. The World Bank consists of five separate organizations.
    Initially, all bank lending was channeled through the International Bank for Reconstruction and Development (IBRD), the branch of the World Bank established following Bretton Woods.
    At the time, its principal concern was rebuilding economies shattered during World War II. Loans are offered on commercial terms to borrowing governments or to private enterprises that have obtained government guarantees, but rates are modest due to the bank’s high credit rating for its own borrowing.
    In the late 1960s, Robert McNamara became its President. Between 1973 and 1980, the World Bank, became a significant actor in the push to address social welfare in developing countries. Its main objective was to eradicate absolute poverty in developing nations. While project lending was in place to see that there was development of infrastructure, industry, and agriculture in developing countries, program lending was introduced. Work on poverty grew
    through the 1970s, and the Bank has called this its human focus period, emphasizing access of the poor to education and health care services. The World Bank saw that project lending was not sufficient as only a particular set of people, that is, “those with connection” benefitted from it. This program sought to develop the economies of developing nations as the other set of people, that is, those who remained poor didn’t benefit. Access to education and better health care facilities, increased participation in SMEs, and so many others. This helped to a great deal improve the economies of developing countries. Obviously, the critics would be there but McNamara’s thoughts and actions are still in play in economies as of today.

  77. Avatar OGBONNAYA GERALDINE UGOCHI says:

    Name: Ogbonnaya Geraldine Ugochi
    Department: Economics
    Registration Number: 2018/241833
    Course title: Development Economics ||
    Course code: ECO 362

    ASSIGNMENT

    McNamara’s arrival to the World Bank presidency profoundly marked its history. Evoking the connection between security and development, McNamara stated that economic backwardness and the contradictions of modernization opened the doors to ideological radicals. For that reason, “without internal development, at least to a minimum level, order and stability are impossible”. This approach was related to Washington`s recognition of the failure of its predominantly military approach followed in Vietnam. This explains the US government’s emphasis on the increase of multilateral aid over bilateral aid, since according to Washington, the WB and the other MDBs could raise funds and make loans to peripheral countries geopolitically relevant to the US, without attracting direct criticism of its foreign policy and without the economic burden of bilateral programs. Assuming the position, McNamara stated that the balance of the ‘dec-ade of development’ was “disappointing” because income inequality among states had increased and the majority of the population of the planet lived in extreme conditions, despite the increase of rates of economic growth in large parts of the world. All this im-plied the recognition that the benefits of growth had not flowed downwards, as ‘trickle-down’ doctrine preached. According to McNamara, it was no longer valid to suppose that growth would necessarily lead to the reduction of poverty. It was necessary to distinguish them conceptually and to approach them in a separate and direct manner. On the other hand, McNamara denied that the reduction of poverty would occur at the cost of growth as the immense majority of economists (inside and outside the World Bank) at that time stated, insisting on its centrality. The slogan of the ‘assault on poverty’ was at the core of the new administration’s discourse. In its name, the McNamara administration more than doubled the loan portfolio. There was a considerable expansion of loans to the agricultural sector and, to a lesser degree, for social ‘purposes,’ such as education, basic sanitation, nutrition, urban hous-ing, and family planning. Although disbursements for Asia were intensified, operations in Africa and Latin America proportionally increased more. McNamara established annual loan targets for each country and defined that each employee’s professional efficiency would be assessed according to the volume of funds involved in projects for which they were responsible. Thus, the imperative of ‘moving the money’ at any cost became one of the most striking marks of the organizational culture of the World Bank.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The McNamara administration was also engaged in the search for an instrument replicable in the urban environment. The first World Bank projects in 1972 continued the focus on sites and services, whose objective was to balance maximum cost recovery with minimum subsidy. The basic procedure consisted of limiting subsidies for land purchases and the construction of basic infrastructure to the minimum possible, leaving the new owners responsible for constructing houses and a large part of the costs. This focus provided a means to exploit unpaid labor, lowering the reproduction costs of the labor force and feeding social conformism through access to property. Following this, there emerged the focus on slum upgrading, which demanded the minimum physical demolition and resettlement of people, with the advantage of fully serving the canonization the slum habit with the discourse of ‘helping the poor help themselves’ and the incremental illusion of ‘build-it-yourself’. The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Placed at the center of the World Bank research was the question of poverty. Until then, poverty had been practically ignored as a theoretical question in the economic literature, appearing in a vague manner, frequently associated with benefits and welfarism. For Washington and McNamara, the reduction of poverty in the Third World was linked to the fight against communism and to the improvement of US security, conceived as a condition for the “free world’s” security. The slogan of the ‘fight against poverty’ actually configured a limited and conservative response to a myriad of social complaints. With direct roots in the injunctions of the Cold War and grafted on to the Bank by Washington, the ‘assault on poverty,’ however, lacked two important elements in those years: a theory, and a means that could be replicated and assessed. In effect, the World Bank lacked a response which could give coherence, both internally and externally, to the projects which the institution had been implementing in agriculture, education, and urban housing, and also did not have an instrument which could allow the measurement of results.
    Nevertheless, for the World Bank the most important consequence of basic necessities was the consecration of health and education as priority and fundable areas, linking them to the fight against poverty and the reconfiguration of social policies. At the end of 1979, the institution began to authorize loans exclusively for health. What balance can be made of McNamara’s crusade against poverty’? First, World Bank loans for projects with some ‘poverty oriented’ component (not necessarily the principal) officially did not rise above one third of the total. However, this figure is overestimated, as staff exaggerated the level of project coverage, increasing the number of beneficiaries considered poor, since professional ascension depended on the volume of loan under the supervision of each employee. Second, when compared to the magnitude of investment made by states for development, World Bank loans were always derisory. In fact, the impact of the organization’s actions concentrated on the formation of ideas and practices related to economic and social administration. From this perspective, funding was more important as a lever to induce changes in public expenditure and public policies. In many cases, public administration agencies responsible for the regulation of entire sectors of the economy were built with loans and/or technical assistance from the World Bank.

  78. Avatar Ezeamenyi chinonso ifesorochukwu says:

    NAME: EZEAMENYI CHINONSO IFESOROCHUKWU
    REG: 2018/251370
    DEPT: EDUCATION/ECONOMICS
    EMAIL ADDRESS: nonsofavour732@gmail.com

    As developing countries face strong economic headwinds, the Bank Group supported an estimated 884 operations to promote opportunity and get needed services to the poor – for example, by improving education and health services, promoting the private sector, building infrastructure, and strengthening governance and institutions.
    The World Bank Group institutions contributing to this financial outcome are: the International Bank for Reconstruction and Development (IBRD), which provides financing, risk management products, and other financial services to members; the International Development Association (IDA), which provides interest-free loans and grants to the poorest countries; the International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees and advisory services to private-sector business in developing countries; and the Bank Group’s political risk insurance agency, the Multilateral Investment Guarantee Agency (MIGA).

  79. Name: Onyeabo Michael Chukwuebuka
    Reg No: 2018/248280

    Many policymakers realized in the 1960s that the trickle-down approach to development was not improving the lives of the poor.

    As the rich became richer and the poor became poorer as a result of the unequal distribution of wealth, the World Bank shifted from project lending to program lending to ensure growth with equity. The World Bank, in collaboration with developing-country governments, launched a social program aimed at improving housing, education, health, energy, and transportation.

    Between 1973 and 1980, the then-Secretary-General of the United Nations, Robert McNamara, was a driving force in the push to address social welfare in developing countries. McNamara believed it was critical for the World Bank to collaborate with governments to eradicate absolute poverty in developing countries through financial and technical assistance from the World Bank and developing countries. During McNamara, the World Bank lends large sums to facilitate rural development, urban development, and small-scale industry development. This effort aimed to provide for a country’s impoverished and under-employed population.

    However, the program was not a full success.

  80. Name: Onyeabo Michael Chukwuebuka
    Reg No: 2018/248280

    Many policymakers realized in the 1960s that the trickle-down approach to development was not improving the lives of the poor.

    As the rich became richer and the poor became poorer as a result of the unequal distribution of wealth, the World Bank shifted from project lending to program lending to ensure growth with equity. The World Bank, in collaboration with developing-country governments, launched a social program aimed at improving housing, education, health, energy, and transportation.

    However, the program was not a full success.

  81. Avatar Adigwe ifeoma Favour says:

    Name : Adigwe ifeoma Favour
    Reg no : 2018/241871
    Department : Economics department

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    McNamara, President of the World Bank, reported on the Bank’s operations in fiscal year 1972 and reviewed the progress of the Five-Year Program for 1969–73. He assessed the current state of development in member countries and outlined the program for the five years 1974–78.

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Role of the World Bank

    The World Bank is an international development organization owned by 187 countries. Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    Enlarging the Bank
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.

  82. Avatar EZEA SOPULUCHUKWU LUKE says:

    NAME:: EZEA SOPULUCHUKWU LUKE
    REG NO:: 2018/251024
    DEPARTMENT:: ECONOMICS (Major)
    COURSE::ECO 362
    ASSIGNMENT
    1..Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    ii::The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    III::McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.

    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period.

    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.
    iv::Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

  83. Avatar Onuigbo Chidimma says:

    Name : Onuigbo Chidimma
    Department : Education/Economic
    Reg num : 2019/249019
    Assignment
    Development in 1960s and 70s and World Bank lending
    Answers
    Development is an act of bringing new things into existence, it’s a continuous process.
    Development since 1960 to 70s
    In the 1960s, membership in the UN continued to expand and issues of development came to the attention of the international community through actions both within and outside of the UN. Some of the key UN resolutions, reports and events are highlighted.

    As the introduction to the Secretary-General’s report on Proposals for Action (E/3613 + Corr.2) states,

    “At the opening of the United Nations development decade, we are beginning to understand the real aims of development and the nature of the development process. We are learning that development concerns not only man’s material needs, but also the improvement of the social conditions of his life and his broad human aspirations. Development is not just economic growth, it is growth plus change.”

    During this time, the practice of calling for international observances, such as international days, years and decades, grew as a practice to highlight development issues and concerns.

    Key events, documents and resolutions, 1960-1970
    Decades:

    1960-1970: First United Nations Development Decade: A/RES/1710 (XVI)
    1960

    Second Conference on the Law of the Sea
    Geneva, 17 Mar.-26 Apr. 1960
    Report: A/CONF.19/8 (Vol. I & II) (60.V.6)
    1961

    Dag Hammarskjöld died in office
    U Thant appointed Secretary-General
    International Health and Medical Research Year: A/RES/1283 (XIII)
    World Food Programme (WFP) established
    Specialized Agency agreement with International Development Association (IDA, part of the World Bank Group)
    UN Conference on New Sources of Energy
    Rome, 21-31 Aug. 1961
    Report: E/3577/Rev.1-ST/ECA/72 (62.I.21)
    1962

    Economic and social consequences of disarmament : report of the Secretary-General transmitting the study of his Consultative Group (E/3593/Rev.1; 62.IX.1)
    The United Nations Development Decade : Proposals for Action : Report of the Secretary-General (E/3613 + Corr.2; 62.II.B.2)
    1963

    Joint Declaration of the Developing Countries made at the 18th session of the General Assembly, 11 November 1963
    First action by the Group of 75 (became G-77)
    A/RES/1897 (XVIII) Annex
    1964:

    UN Conference on Trade and Development (UNCTAD) established
    23 March – 16 June 1964, First session of UN Conference on Trade and Development (UNCTAD I)
    E/CONF.46/141 (Vol. I): Final Act and Report
    E/CONF.46/141 (Vol. II): Policy Statements
    G-77 Joint Declaration of 15 June 1964 included in the Final Act and Report, page 66-68
    Towards a New Trade Policy for Development : Report by the Secretary-General of the UN Conference on Trade and Development
    Known as the Prebisch Report
    E/CONF.46/3
    See CEPAL’s guide on Raul Prebisch for additional information
    1965

    International Cooperation Year: A/RES/1907 (XVIII)
    World Population Conference (2nd)
    Belgrade, 30 Aug.-10 Sept. 1965
    Report
    Vol. I: E/CONF.41/2 (66.XIII.5) Summary Report
    Vol. II: E/CONF.41/3 (66.XIII.6) Fertility, Family Planning, Mortality
    Vol. III: E/CONF.41/4 (66.XIII.7) Projections, Measurement of Population Trends
    Vol. IV: E/CONF.41/5 (66.XIII.8) Migration, Urbanization, Economic Development
    Council Membership increases, in accordance with A/RES/1991 (XVIII)
    UN Security Council: from 11 to 15
    Economic and Social Council: from 18 to 27
    A/RES/2029 (XX): Consolidation of the Special Fund and the Expanded Programme of Technical Assistance in a United Nations Development Programme (UNDP)
    A/RES/2106 (XX): International Convention on the Elimination of all forms of Racial Discrimination
    Procedural history for the ICERD
    1966

    A/RES/2186 (XXI): Establishment of the United Nations Capital Development Fund
    A/RES/2200 (XXI): International Covenant on Economic, Social and Cultural Rights, International Covenant on Civil and Political Rights and Optional Protocol to the International Covenant on Civil and Political Rights
    Procedural history for the ICESCR
    Procedural history for the ICCPR
    1967

    International Tourist Year: A/RES/2148 (XXI)
    A/RES/2188 (XXI): General review of the programmes and activities in the economic, social, technical cooperation and related fields of the United Nations, the specialized agencies, the International Atomic Energy Agency, the United Nations Children’s Fund and all other institutions and agencies related to the United Nations system
    1968

    International Year for Human Rights: A/RES/2081 (XX)
    International Conference on Human Rights
    Tehran, 22 Apr. – 13 May 1968
    Final Act: A/CONF.32/41 (68.XIV.2)
    Procedural History from the Audiovisual Library of International Law
    UNCTAD II
    New Delhi, 1 Feb.-29 Mar. 1968
    TD/97 Vol. I: Report and Annexes: TD/97 + Corr.1 + 3 (68.II.D.14)
    TD/97 Vol. II: Commodity Problems and Policies (68.II.D.15)
    1969

    Partners in development : Report of the Commission on International Development
    Commission financed by the World Bank
    Known as the Pearson Commission, after Chairman Lester B. Pearson
    DHL call number: IBRD (02) C734 (English, French, Spanish)
    Study of the Capacity of the UN Development System
    Called for by the Governing Council of UNDP
    Known as the Capacity Study or Jackson Report
    DP/5 Vol.I & Vol. II
    A/RES/2411 (XXIII): International Development Strategy
    1970

    International Education Year: A/RES/2306 (XXII), A/RES/2412 (XXIII)

  84. Avatar Ugwuoke Godwin Izuchukwu says:

    NAME: Ugwuoke Godwin Izuchukwu
    REG. NO: 2018/249529
    DEPARTMENT: ECONOMICS

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara implemented the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)

    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.

    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

  85. Avatar Isiguzo Purity Ezinne says:

    Name: Isiguzo Purity Ezinne
    Reg. No: 2018/242353
    Email address: isipurity4real@gmail.com
    Course code: Eco 362

    ANSWER

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries.

    Robert Strange McNamara, born in Oakland, California on the 9th of June, 1916 served as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries.

    The World Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded.

    It was obvious that these countries required more assistance than they had been receiving, and he (McNamara) set out to make the Bank a “critical mass” of financial and technical power.

    McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice.

    The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade.

    All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.

    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions.

    Its loans helped European countries rebuild after World War II. That made it the world’s first multilateral development bank. It was funded through the sale of bonds.  Its first loans were to France and other European countries

    In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads.

    With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal.

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974.

    McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing.

    He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries.

    The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global.

    On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

  86. Avatar Onyemaechi Favour Ozioma says:

    Onyemaechi Favour Ozioma
    2018/244292
    Edu/Eco
    Eco 362(Development Economics)
    An Assignment: Between 1973 and 1980, the World Bank led by Robert McNamara become a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the cold war) for the World Bank to work with government to eradicate absolute poverty in developing nations.
    Although project lending aimed at the development of infrastructure, industry and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development and development of small scale industry and other critical programs that had direct impact on the populace. Discuss.

    The World Bank was founded in 1944 named International Bank for Reconstruction and Development later renamed World Bank. Overtime, the World Bank group which is the largest development institution has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The World Bank works with countries government, the private sector, civil society organizations, regional development banks, think tanks and other international institutions on issues ranging from climate change, conflict, security, education, agriculture, finance and trade. All this effort was to reduce extreme poverty in developing countries.
    Between 1973 and 1980 when Robert McNamara became the leader, he emphasis the roles and objectives of World Bank and he act significantly to achieve these objectives as the leader.
    Originally, World Bank loans helped to rebuild countries devastated by world war II that is for Reconstruction. As time goes on the focus shifted from Reconstruction to development with a heavy emphasis on infrastructure such as dams, electricity, irrigation system, pipe borne water road that will facilitate standard of living for the developing countries. With the founding of the International Finance Corporations in 1956, the institution became able to lend to private companies and financial institution in developing countries. The world Bank also extend their loan to small scale industry so as to able met up the competition in production.
    Today the Bank group’s works touches nearly every sector that are important to fighting poverty, supporting Economic growth and ensuring sustainable gains in the quality of lives in developing countries. Whlie sound project selection and design remain paramount, the bank recognize a wide range of factors that are critical to success; effective institution, sound policies continues learning through evaluation and knowledge sharing and partnerships, including with the private sector. The bank has long standing relationship with more than 180 member countries and it taps these to address development challenges that are increasingly global.

  87. Avatar Stephen Ifessy Precious says:

    Stephen Ifessy Precious
    2018/244261
    Education/Economics
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    McNamara oversaw a fundamental shift in the Bank Group’s mission from a lender for reconstruction and development to guiding government policies and serving the poor. He steered the institution through the end of the post-WWII era, the 1970s Oil Crisis, and a significant increase in staff and lending, while imparting a new vision focused on the alleviation of extreme poverty. His shifting of the Bank Group’s policies on population and health, social and rural development, program lending, and other areas reverberate through the institution 40 years later.
    The Bank’s stated purpose is to “bridge the economic divide between poor and rich countries.” It does this by turning “rich country resources into poor country growth.” It has a long-term vision to “achieve sustainable poverty reduction.”
    War on Poverty
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    To achieve this goal, the Bank focuses on several areas:
    1. Overcome poverty by spurring growth, especially in Africa.
    2. Help reconstruct countries emerging from war, the biggest cause of extreme poverty.
    3. Provide a customized solution to help middle-income countries remain out of poverty.
    4. Spur governments to prevent climate change.
    5. Work with partners to bring an end to AIDS.
    6. Manage international financial crises and promote open trade.
    7. Work with the Arab League on three goals: improve education, build infrastructure, and provide microloans to small businesses.
    From 1974 to 1980 the bank concentrated on meeting the basic needs of people in the developing world. The size and number of loans to borrowers greatly increased, as loan targets expanded from infrastructure into social services and other sectors.
    These changes can be attributed to Robert McNamara. McNamara implored bank treasurer Eugene Rotberg to seek out new sources of capital outside of the northern banks that had been the primary sources of funding. Rotberg used the global bond market to increase the capital available to the bank. One consequence of the period of poverty alleviation lending was the rapid rise of Third World debt. From 1976 to 1980, developing world debt rose at an average annual rate of 20%.

  88. Avatar Ezeh Uchechukwu Evelyn says:

    Name: Ezeh Uchechukwu Evelyn
    Reg no: 2018/241821
    Department: Economics ( Major )
    Course: Development Economics ( Eco 362 )

    World Bank, in full World Bank Group, international organization affiliated with the United Nations (UN) and designed to finance projects that enhance the economic development of member states. Headquartered in Washington, D.C., the bank is the largest source of financial assistance to developing countries.
    It was founded in 1944 at the UN Monetary and Financial Conference (commonly known as the Bretton Woods Conference), which was convened to establish a new, post-World War II international economic system, the World Bank officially began operations in June 1946. Its first loans were geared toward the postwar reconstruction of western Europe. Beginning in the mid-1950s, it played a major role in financing investments in infrastructural projects in developing countries, including roads, hydroelectric dams, water and sewage facilities, maritime ports, and airports.
    The World Bank Group comprises five constituent institutions:
    1) the International Bank for Reconstruction and Development (IBRD)
    2) the International Development Association (IDA)
    3) the International Finance Corporation (IFC)
    4) the Multilateral Investment Guarantee Agency (MIGA)
    5) the International Centre for Settlement of Investment Disputes (ICSID).
    The World Bank provides low-interest loans, interest-free credit, and grants. It focuses on improving education, health, and infrastructure. It also uses funds to modernize a country’s financial sector, agriculture, and natural resources management.

  89. Avatar Oyibe Ebere Izuinya. 2018/245131 says:

    NAME: OYIBE, EBERE IZUINYA
    REG. NO: 2018/245131
    DEPARTMENT: ECONOMICS
    COURSE: ECO 362
    E-mail: ebereoyibe@gmail.com

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley majoring in economics. His personal experiences during the great depression and the liberal Outlook at Berkeley combined to shape his liberal social outlook. In 1937, he did management courses in Harvard Business School where he acquired the management techniques that became the characteristics of his leadership style.
    McNamara applied his management style in the military during world war 11 and in a private industry (Ford Motor Company). In 1960, he was appointed president of Ford Motor Company but after one month, he was called to the new Kennedy administration to serve as a secretary of Defense with a mandate to bring the military under control through the application of efficient management. He was later nominated the next president of Word Bank to serve as the 5th president.
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    MCNAMARA’S FIGHT AGAINST POVERTY.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  90. Avatar Mbah+Chisom+Mary says:

    NAME : Mbah Chisom Mary
    DEPARTMENT : Education/ Economics
    REG NO : 2018/244295
    EMAIL : chisommary111@gmail.com
    ANSWER
    Robert S. McNamara (1916-2009) was the most powerful American Secretary of Defense in history and in many ways the architect of the modern war on terror. He was an immensely talented and successful man, whose career went up like a rocket from the beginning.
    Robert S. McNamara is retiring from the World Bank in June 1981, after 13 years as its President. During his tenure, there has been a sea change in the quality as well as the quantity of the Bank’s lending operations and the development policies that it pursued.
    Early on, even before he had come to the World Bank, Mr. McNamara had recognized as “the central historical event of our times” the need to speed up the development of the poorest countries that made up the Third World. He clearly felt that developing countries need to devise policies and investment programs to assist the poor in their societies to become more productive and to ensure an equitable distribution of basic services to them. In response to these needs, Mr. McNamara sought to shape the policies and programs of the Bank to improve the lot of the poorest. He had a vision that saw the Bank as a key instrument for restructuring the world’s economy so that the majority of its population—the poorest two thirds—could enjoy a fair share of the earth’s resources. He saw this as the Bank’s mission, one that could be accomplished by fashioning Bank programs and policies in consultation with, and in response to, the needs of member countries. But he also saw the Bank’s role as a pioneer in the field, providing leadership in this direction for national and international agencies.
    Early on, he asked his senior staff why no loans had been made to several important developing countries (such as Egypt and Indonesia) and to very many of the most underdeveloped countries (in, for example, the Sahelian zone). The reply was (in part) that there were severe financial constraints on the amount of money the Bank could raise in the markets. ‘Then give me a list of all projects which you would undertake if there were no financial constraints.” That was the origin of the Five-Year Plan to double Bank lending, which he announced in his first speech to the Governors in 1968. That speech was to serve as McNamara’s manifesto. It proclaimed his belief that poverty could be eradicated and that the power to do so was at hand if the will was there. As he put it: “The parable of the talents is a parable about power—about financial power—and it illuminates the great truth that all power is given to be used, not to be wrapped in a napkin against risk.” But it was always clear to Mr. McNamara that this development instrument must be not only powerful but also precise. He therefore concentrated on improving the quality of Bank loans—directing them more precisely to break the constrictions on growth and development.
    In his early speeches, Mr. McNamara dwelt with great emphasis on the numbers of poor people in the developing world and on the population explosion that was multiplying those numbers. It was the billions of poor people that forced him to mobilize multibillions of dollars to finance economic projects to improve their lot. On the other hand, he was to learn from intensive travel in the Third World, not just to capitals but to the rural areas of some of the poorest countries, that this development assistance never adequately trickled down to the rural poor. From these firsthand observations he devised, over a period of time, a comprehensive attack on “absolute poverty”—a phrase he coined and to which he gave a clearly defined meaning. The essence of this attack on poverty was to use development assistance to make the poor more productive; in particular to help millions of small farmers produce enough to feed themselves adequately and to have a surplus to sell to the cities.
    This program of self-sufficiency in food was required to provide the solid base on which member countries could hope to build real growth. In addition to Bank help, there remained obligations for the governments of the developing world: to ensure that the state’s social services (pure water, health clinics, education, and so on) were directed to the poor masses wherever they were and not just to the privileged (and usually urban) few. In this approach, resources were to flow directly to the poorest, and their basic needs were to be met earlier and more extensively than they could be by a strategy of generalized growth in national product. More important, from Mr. McNamara’s point of view, such a program could have a decisive effect in reducing fertility rates—so that the planet’s population might stabilize earlier and at a lower figure.
    Goals of development
    “…the principal goals of development… are: to accelerate economic growth, and to eradicate absolute poverty.
    The two goals are intrinsically related, though governments are often tempted to pursue one without adequate attention to the other. But from a development point of view that approach always fails in the end. The pursuit of growth without a reasonable concern for equity is ultimately socially destabilizing, and often violently so. And the pursuit of equity without a reasonable concern for growth merely tends to redistribute economic stagnation.
    Any successful effort to combat poverty would have to do two basic things:
    a) Assist the poor to increase their productivity; and
    b) Assure their access to essential public services.
    Development is clearly not simply economic progress measured in terms of gross national product. It is something much more basic. It is essentially human development; that is, the individual’s realization of his or her own inherent potential.”
    Absolute poverty is a condition of life so degraded by disease, illiteracy, malnutrition, and squalor as to deny its victims basic human necessities … a condition of life so limited as to prevent realization of the potential of the genes with which one is born; a condition of life so degrading as to insult human dignity—and yet a condition of life so common as to be the lot of some 40 per cent of the peoples of the developing countries.

  91. Avatar Nwajuagu Divine Ndubuisi says:

    Name: Nwajuagu Divine Ndubuisi
    Reg no: 2018/248278
    Email: nwajuagudivine22@gmail.com

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold. After this rural development became the next focus. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

  92. Avatar Ubochioma Favour Ugomma says:

    UBOCHIOMA FAVOUR UGOMMA
    SOCIAL SCIENCE EDUCATION (ECO EDU)
    2018/245392
    princessfavluv@gmail.com

    Owing to the great increase in the poverty level in developing countries between 1973 and 1980, Robert McNamara who was the then PRESIDENT of the WORLD BANK came up with different techniques/ways of erradicating absolute poverty.

    Absolute poverty is a condition of life so degraded by disease, illiteracy, malnutrition, and squalor as to deny its victims basic human necessities.

    McNamara had a vision that saw the Bank as a key instrument for restructuring the world’s economy so that the majority of its population,the poorest two thirds could enjoy a fair share of the earth’s resources.He then came up with a solution known as PROJECT LENDING.
    This involved the collection of loans from Banks and large sums to aid rural development, urban development and development of small scale industries.
    The aim of this was to improve several sectors of the population in a country.

    The essence of this attack on poverty by Mr McNamara was to use development assistance to make the poor more productive; in particular to help millions of small farmers produce enough to feed themselves adequately and to have a surplus to sell to the cities.Mr. McNamara laid great emphasis on the numbers of poor people in the developing world and on the population explosion that was multiplying those numbers. This led him to mobilize multibillions of dollars to finance economic projects to improve their lot.
    But it was always clear to Mr. McNamara that this development instrument must be precise.He therefore concentrated on improving the quality of Bank loans,directing them more precisely to break the constrictions on growth and development.This required an effort far more substantial than that needed to double and quadruple the financial resources of the institution.

    GOALS OF DEVELOPMENT.
    In the words of President ROBERT MCNAMARA;

    “the principal goals of development are: to accelerate economic growth, and to eradicate absolute poverty.
    “Any successful effort to combat poverty would have to do two basic things:

    1.Assist the poor to increase their productivity; and

    2.Assure their access to essential public services.”

  93. Avatar Ik-Ukennaya Ezekiel says:

    Name: Ik-Ukennaya Ezekiel
    Reg. No: 2018/ 249 788
    Department: Economics
    Email : ezekielikukennaya4@gmail.com

    Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)
    Question:
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programs that had direct impact on the populace. Discuss

    Answer:
    The world Bank, led by Robert McNamara between 1973 and 1980, became a significant actor in the push to address social welfare in developing nations. This is in-line with program lending initiative which reflects the World Bank shift from project lending to achieve” Growth with Equity” in developing countries. In the 1960s, many policy makers found out that the trickle-down approach to development of project lending was not improving the lives of the poor. Some of them believed that the benefits of project lending were trickling- up instead of trickling- down. Because of the obvious faulty distribution of wealth, the World Bank in collaboration with governments of developing countries established social programs intended to directly address poverty. These programs aimed at improving housing, education, health, energy and transportation to directly improve the lives of the impoverished.
    In the view of McNamara, it was imperative for World Bank to work with governments to eradicate absolute poverty in developing nations. He helped the governments of developing countries to implement state- run programs aimed at improving the lot of the nation’s citizens through financial and technical assistance from World Bank and developed nations.
    Although project lending aimed at development of infrastructure, industry, and agriculture still continued, the programs initiated during McNamara era were directly aimed at the eradication of absolute poverty to reflect the “Growth with Equity” initiative. The World Bank lent large sums to facilitate rural development, urban development and development of small scale industry. The Bank loans were also used to develop programs for the improvement of health, nutrition, family planning and educational services because these projects help to eradicate absolute poverty in developing countries as they help to improve the welfare of the poor.

  94. Avatar AGBO LOVETH AMARACHI says:

    NAME: AGBO LOVETH AMARACHI
    REG.NO : 2018/ 248 680
    DEPARTMENT: EDUCATION ECONOMICS
    EMAIL: lovethamarachi84@gmail.com

    Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)
    Question:
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programs that had direct impact on the populace. Discuss

    My View:
    The world Bank, led by Robert McNamara between 1973 and 1980, became a significant actor in the push to address social welfare in developing nations. This is in-line with the “Growth with Equity” initiative which is a shift from project lending to program lending. In the 1960s, many policy makers realised that the trickle-down approach to development of project lending was not improving the lives of the impoverished in the society. Some of them believed that the benefits of project lending instead of trickling- down were trickling- up. Because of the obvious maldistribution of wealth, the World Bank in collaboration with government of developing countries established social programs intended to directly address poverty. These programs aimed at improving housing, education, health, energy and transportation to directly improve the lives of the poor.
    In the view of McNamara, it was imperative for World Bank to work with governments to eradicate absolute poverty in developing nations. He helped the governments of developing countries to implement state- run programs aimed at improving the lot of the nation’s citizens through financial and technical assistance from World Bank and developed nations.
    Although project lending aimed at development of infrastructure, industry, and agriculture still continued, the programs initiated during McNamara era were directly aimed at the eradication of absolute poverty to reflect the “Growth with Equity” initiative. The World Bank lent large sums to facilitate rural development, urban development and development of small scale industry. The Bank loans were also used to develop programs for the improvement of health, nutrition, family planning and educational services because these projects help to eradicate absolute poverty as they help to improve the welfare of the poor in developing countries.

  95. Avatar MELONE BENEDETTE CHINENYE REG NO: 2018/242196. DEPARTMENT: SOCIAL SCIENCE EDUCATION: (EDUCATION+ECONOMICS) says:

    BETWEEN 1973 and 1980

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    The World Bank promotes long-term economic development and poverty reduction by providing technical and financial support to help countries reform certain sectors or implement specific projects—such as building schools and health centers, providing water and electricity, fighting disease, and protecting the environment .

    The Work Bank help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.

    Sustainable urban and rural development is about improving the quality of life in a locality, including ecological, cultural, political, institutional, social and economic components without leaving any burden e.g the result of a reduced natural capital and an excessive local debt—on future generations.

    Role of Small and medium scale enterprises are to help the government in increasing infrastructures and manufacturing industries, reducing issues like pollution, slums, poverty, and many development acts. Small scale manufacturing industries and cottage industries play a very important role in the economic development of developing countries.

    These are some of the reasons why the World Bank assist these Rural development, Urban development and development of small scale industry.

  96. Avatar Olayiwola Nurudeen Akanni says:

    Name: Olayiwola Nurudeen Akanni
    Reg No: 2018/246563
    Department: Economics
    Course: Eco 362
    Question
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    Answer
    Robert S. McNamara being the 5th President of the World Bank Group, 1968 – 1981
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Personal History
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960
    McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    Role of the World Bank
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Enlarging the Bank
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.
    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff during this period.
    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.
    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)
    Funding the Bank
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.
    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.
    The first oil shock presented a particular challenge to the Bank and its member countries. McNamara responded by increasing the lending level even more. McNamara turned to the members of the Organization of Petroleum Exporting Countries (OPEC) to finance this increase. He negotiated with the Shah of Iran for a development fund supported and controlled by OPEC and administered by the Bank. This did not materialize due to opposition from the U.S. government, and McNamara’s support for the fund caused tensions with the U.S. Treasury.
    Tensions with the U.S. arose again when the Bank sought a general capital increase in the 1970s. After two years of negotiations, a selective capital increase of $8.5 billion was approved in 1976. While this provided some relief, it did not satisfy McNamara’s demands. He created a task force to consider “the future role of the Bank”, which concluded that an increase of $45 billion was needed to support the needs of the borrowers. The executive directors ultimately approved a capital increase of $40 billion in 1979, following the second oil shock.
    McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.
    IDA Replenishment
    The task of raising the necessary IDA funding – concessional funds for the Bank Group’s poorest members – became a personalchallenge for McNamara. He used his extensive political contacts to bolster Congressional support in the U.S. He contacted prominent and persuasive people in the U.K., the Netherlands and Kuwait to urge positive action for IDA.

    Robert McNamara delivering a speech.
    McNamara’s efforts were successful. IDA replenishment amounts increased from an annual rate of $400 million in the second replenishment to $4 billion during the sixth. Some of this increase was automatically eaten up by rapid inflation during this period, but in real terms, IDA resources more than doubled between the fourth and sixth replenishments.
    Pearson Commission
    President George Woods had called for a “grand assize” of development experts to revitalize the donor community, and McNamara took up this proposal upon joining the Bank. He asked Lester Pearson, former prime minister of Canada, to head a commission which was to be independent of the Bank but would work in close proximity to McNamara. The Pearson Commission report Partners in Development, issued in 1969, gave a fresh impetus to development assistance. The commission supported an expanded role for the bank in aid coordination through the creation of further consultative groups and through increased monitoring of the external debt of the developing countries. The commission also highlighted the burden imposed by uncontrolled population growth. The Commission’s report was successful in energizing donor support, and facilitated the third IDA replenishment, which doubled IDA resources.
    War on Poverty
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    Public Sector and Private Sector
    Robert McNamara with Pope John Paul II.
    McNamara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies.
    Oil Crisis
    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil producing states to provide this support. OPEC agreed to increase their commitments – $2 billion by 1974, and by 1975 OPEC members were contributing 3 per cent of their GNP.
    Structural Adjustment
    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.

  97. Avatar Unadike Fabian Chinemezu says:

    NAME: UNADIKE FABIAN CHINEMEZU
    REG NO: 2018/249698
    DEPARTMENT: ECONOMICS
    COURSE CODE: ECO 362

    QUESTION
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER
    Robert S. McNamara(1916 – 2009) was the 5th President of the World Bank Group, 1968 – 1981.
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    THE WORLD BANK:
    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
    With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

  98. Avatar Onuh Onyinye says:

    Name :Onuh Onyinye
    Reg number :2018 /241872
    Department :Economics department
    Email :onuhonyinye7@gmail.com

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.”
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems.

    He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    Structural Adjustment

    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.

    We must realize, he said, “that human degradation is the most
    dangerous pollutant there is.” And he concluded: “In the end,
    it is respect for man-and his home-that brought us to this
    conference. When we leave, let us go with the conviction that
    that respect can and must be translated into practical action.
    The leading edge of that action must be to protect man from the
    one hazard which can injure not only his habitat and his health
    -but his spirit as welL Poverty. Cruel, senseless, curable
    -poverty.”
    Also according to McNamara.

    “The task of political leadership in the wealthy world is to
    match that resolve and courage with a greater commitment to
    equity between their own affluent nations and the grossly disadvantaged developing nations.”

    In a speech with leaders in Kenya, Robert McNamara noted
    ” In Africa, for example, we set out to triple our lending – and we have done so.
    We undertook operations, for the first time, in Indonesia and in the five years have committed
    $523 million there.
    For the poorest and least developed of our member countries, those with average per capita
    incomes of $120 or less, we have nearly tripled our lending. During the Five-Year Program period we have initiated 217 separate projects in these countries.
    The goal of the world Bank through its lending to developing countries in the 1960s-70s was the attack of absolute
    poverty which exists to a totally unacceptable degree in almost all of developing member
    countries: a poverty so extreme that it degrades the lives of individuals below the minimal norms
    of human decency. The absolute poor are not merely a tiny minority of unfortunates – a
    miscellaneous collection of the losers in life-a regrettable but insignificant exception to the rule.
    On the contrary, they constitute roughly 40% of the nearly two billion individuals living in the
    developing nations.
    Some of the absolute poor are in urban slums, but the vast bulk of them are in the rural areas. And
    it is there – in the countryside – that we must confront their poverty.
    We should strive to eradicate absolute poverty by the end of this century. That means in practice
    the elimination of malnutrition and illiteracy, the reduction of infant mortality, and the raising of
    life-expectancy standards to those of the developed nations.
    Essential to the accomplishment of this objective is an increase in the productivity of small-scale
    agriculture.

  99. Avatar ISIGUZO PURITY EZINNE says:

    Name: Isiguzo Purity Ezinne
    Reg. No: 2018/242353
    Email address: isipurity4real@gmail.com
    Course code: Eco 362

    ANSWER

    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries.

    Robert Strange McNamara, born in Oakland, California on the 9th of June, 1916 served as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries.

    The World Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded.

    It was obvious that these countries required more assistance than they had been receiving, and he (McNamara) set out to make the Bank a “critical mass” of financial and technical power.

    McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    McNamara believed that the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice.

    The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade.

    All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.

    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions.

    Its loans helped European countries rebuild after World War II. That made it the world’s first multilateral development bank. It was funded through the sale of bonds.  Its first loans were to France and other European countries

    In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads.

    With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal.

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974.

    McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing.

    He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries.

    The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global.

    On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

  100. Avatar Sochima Anne Nwosu says:

    Name: Nwosu Sochima Anne
    Dep: Economics
    Reg no: 2018/242291
    Course: Eco 362

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and POVERTY. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  101. Avatar Joseph Ruth Tochukwu says:

    JOSEPH RUTH TOCHUKWU
    2018/245132
    ECONOMICS DEPARTMENT

    ASSIGNMENT ON ECO 362

    In the 1960s,many policymakers realized that the trickle down approach to development was not improving the circumstances of the poor. In fact, some believe that the benefits were trickling up.
    Because of the very obvious maldistribution of wealth, the world bank in conjunction with governments in less developed countries established social programs intended to directly address poverty. These programs were aimed at improving housing, eduation,health,energy and transportation.
    Between1973 and 1980,the world Bank led by Robert McNamara became a significant actor in the push to address social welfare in less developed countries. In his view, it was imperative(in light of the cold war) for the world bank to work with governments to eradicate absolute poverty in less developed countries. With financial and technical assistance from world bank and developed nations,the governments of less developed countries implemented state run program aimed at improving the lot of their nations citizens.
    Although project lending aimed at the development of infrastructure, industry and Agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty.
    The world bank lent large sums to aid rural development, urban development and development of small scale industry. Bank loans also helped to develop programs for the improvement of health,nutrition, family planning and educational services.
    The aim of this effort was to provide for the impoverished and underemployed sectors of the population in a country.

  102. Avatar Ezechukwu Rita Chioma says:

    Name: Ezechukwu Rita Chioma
    REG NO: 2018/250327
    DEPARTMENT: Economics
    EMAIL ADDRESS: rita.ezechukwu.250327@unn.edu.ng

    ECO 362 ( DEVELOPMENT ECONOMICS 2) FIRST ASSIGNMENT;

    ANSWER:
    After the World war 2, the world Bank and IMF decided to look into the plight of many developing countries economies ( especially western European economies). World Bank in their early days had the reconstruction of Europe as their main motive. However, with the intervention of US ( United States) Marshal plan called the European Recovery program (ERP), the world Bank motive shifted from the reconstruction of Europe to giving of loans to many developing countries, which led to the growth of many developing nations. World Bank engaged in project lending that stressed the development of infrastructure, industry and agriculture which aimed at helping developing nations achieve sustainable economic development. Provision of adequate infrastructures was to come first as it will provide conducive environment for industry and agriculture to thrive. Electric power was needed by industries to function, good road was needed for transportation and so on.
    Notwithstanding the fact that the above initiative (project lending) led to the growth of per Capita income and Gross National Product (GNP) of developing countries, it brought about unequal distribution of wealth and income, as only those in the government sector, those employed in the industry, or those related to them benefited. Agriculture was neglected which led to increased poverty rate in the rural areas. The development that was suppose to generate wealth which was believed will trickle down to the poorest sector of the economy was found to be trickling up. All this was happening between the 1960s and early 1970s.
    Hence, haven seen that the project lending was creating another problem in the economies of developing countries, World Bank led by Robert McNamara created another initiative ( Program Lending). With program lending, world Bank was looking forward to achieve “growth with equity”. Growth with equity is a system that advocates for not equal but equitable share of the resources of the economy among different sectors of the economy.
    Between 1973 and 1989, the move to address social welfare was championed by world Bank, led by Robert McNamara. McNamara was of the view that poverty in developing countries can be eradicated if the world Bank should choose to work with the government. Hence, world Bank and developed countries financial assistance helped the government of developing countries to implement state-run programs aimed at improving the welfare of the citizens of the nation. World Bank lent money to developing countries inorder to facilitate rural and urban development; development of small-scale Industry; development of programs for the improvement of health, nutrition, family planning and educational services.
    In summary, instead of focussing only on sponsoring projects in core sector of the economy, which was believed will generate wealth that will trickle down to the poorest sector of the economy ( which was never the case), world Bank led by McNamara decided to also engage in program lending which focused on providing for the impoverished and under-employed sectors of the population of the country which directly aims at eradication of absolute poverty.

  103. Avatar Omeke Chinenye Joy says:

    Name: Omeke Chinenye Joy
    Reg. No.: 2018/244290
    Department: Social Science Education [Education Economics]
    Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    Answer
    The world Bank confronts poverty
    The World Bank was a result of the conference held at the Mount Washington Hotel in Bretton Woods in 1944 known as the Bretton Woods Conference. While the conference resulted in the formation of two institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank), the creation of the World Bank was not the primary focus rather the aim was to create the framework for post-war international economic cooperation and reconstruction.
    On April 1, 1968, Robert S. McNamara became president of the World Bank. During his long tenure (ending June 1981), he transformed the bank by moving poverty reduction to center stage. He sought to redefine the bank as a bona fide “development agency” and not just a financial institution and was a forceful agent of change. His arrival coincided with a shift in academic thinking and research about development. This shift began when orthodox views of development focusing on economic growth—were questioned, and studies found that physical capital played a smaller-than-expected role in economic growth. Moreover, it appeared that a “residual factor” existed in macroeconomic statistical models. This residual factor was believed to be investment in education, innovation, entrepreneurship, and later, health. The concepts of “human capital” and “human development”—investments in people also gained acceptance. The basic needs approach to development influenced the way academics and policymakers viewed development, later forming the cornerstone of the US Agency for International Development program.
    Moreover, internal bank studies and country mission reports revealed that hundreds of millions of people in developing countries were living in extreme poverty and lacking health clinics, primary and secondary schools, and safe drinking water. Such conditions of “underdevelopment” were key barriers to productivity, economic growth, and poverty reduction, and poverty was a direct result of insufficient investments in health and education.
    The bank’s gradual shift toward more social sector lending began with an emphasis on population control, which McNamara regarded as the first step to alleviating poverty. In a landmark speech at the University of Notre Dame in 1969, he urged the international community to address population growth, the “most delicate and difficult issue of any era in history.” Population control was a major focus for other development agencies at the time, particularly the Ford Foundation and US Agency for International Development. By 1970, McNamara had established the Population Projects Department in the World Bank and continued to advocate population control in speeches and dialogue with governments. On August 26, 1974, the report Population Policies and Economic Development, which analyzed the effect of rising populations on poverty, was published. However, population control failed to develop into a strong lending program, perhaps because it could not meet the bank’s interest in projects that were both acceptable to borrowers and attractive to bank shareholders.
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978).
    Since 1970, McNamara had been advocating bank support for health and nutrition programs, as in speeches at Columbia University (1970) and the bank’s annual general meetings (1972). In June 1973, he requested a health policy paper from bank staff. The resulting 1975 Health Sector Policy Paper was one of the bank’s first efforts to generate and disseminate knowledge on health policy issues. In 1974, one of the bank’s most successful programs, the Onchocerciasis Control Program (OCP), was created to eliminate onchocerciasis (river blindness) and enhance country and regional control of the disease. This health initiative involved 11 countries in West Africa and was sponsored, along with the World Bank, by United Nations Development Program (UNDP), Food and Agriculture Organization, and WHO. It also involved the private sector and non-governmental organizations. Onchocerciasis is caused by a parasitic worm and is spread by black flies that breed in fast-flowing water. The group determined they could stop flies from transmitting the disease by treating the water flow. The OCP also established a program of insecticide application to prevent the growth of black flies.
    Under his leadership also, the bank formulated the concept of “sustainable development,” which attempted to reconcile economic growth and environmental protection in developing countries. Another feature of the concept was the use of capital flows (in the form of development assistance and foreign investment) to developing countries as a means of narrowing the income gap between rich and poor countries. The World Bank added another institution to the group when the Multilateral Investment Guarantee Agency (MIGA) was formed in 1988 to provide political risk insurance and credit enhancement to investors and lenders. The bank has expanded its lending activities and, with its numerous research and policy divisions, has developed into a powerful and authoritative intergovernmental body.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    In the wake of the debt crisis of the early 1980s, the World Bank focused its efforts on providing financial assistance in the form of balance-of-payments support and loans for infrastructural projects such as roads, port facilities, schools, and hospitals. Although emphasizing poverty alleviation and debt relief for the world’s least developed countries, the bank has retained its commitment to economic stabilization policies that require the implementation of austerity measures by recipient countries.
    REFERENCES
    The Changing role of World Bank in Global Health. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1449852/
    The world Bank international organization. Retrieved from: https://www.britannica.com/topic/World-Bank
    https://www.worldbank.org/en/archive/history

  104. Avatar OKPUZOR EMMANUEL CHIDERA. Registration number: 2018/242433. Economics department says:

    ECO 392 ASSIGNMENT.
    NAME: OKPUZOR EMMANUEL CHIDERA
    REG NUMBER: 2018/242433.
    DEPARTMENT: ECONOMICS.
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    In the early 1940’s, World bank and IMF popularly the breetonhood institutions were formed to reduce poverty substantially as well as to develop the economies of developing countries. It was quite obvious during the early days of the world bank that the reconstruction of Europe will take priority in the development but in actuality the world bank made only few loan to Europe due to the US marshall plan which took over most of the financing for the reconstruction of Europe.
    In other to view the economy of developing countries, the World bank engaged in project lending to increase the nation’s ability( of developing nations) to sustain development through generating income from projects. Early work bank project lending was intended to foster the welcoming environment for the factors that lead to economic growth.
    Between 1973 and 1980, the world bank became a significant actor in the push to address social welfare in developing countries. This was led by Robert McNamara. Robert McNamara shaped the bank as no one before him. He came up to the bank brimming with energy, forceful, active, pushing to get things done. He adopted an aggressive mission that emphasized the claims and expectations of the bank’s developing member countries.
    The bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. The growth with equity approach was evident in the new types of program that were initiated at the world bank.
    The World bank is an international organization dedicated to providing financing, advice, and research to developing nations to add to their economic development. They lent large sums to facilitate rural development, urban development and development of small-scale industry. Bank loans also helped to develop programs for the improvement of health, nutrition, family planning and educational services. They help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and government. The world bank promotes long term economic development by providing technical and financial support to help countries reform certain sectors or implement specific projects. The aim of this was to provide for the impoverished and underemployed sectors of the population in a country.

  105. Avatar Unegbu Charles Emeka 2018/241829 Economics says:

    The bank loans helped to develop programs for the improvement of health , nutrition, family planning, and educational services. the aim of this effort was to provide for the impoverished and underemployed sector of the population in a country.

  106. Avatar Okonkwo Theophilus Nwabueze 2018/241839 says:

    The World Bank Group is committed to fighting poverty in all its dimensions. We use the latest evidence and analysis to help governments develop sound policies that can help the poorest in every country, and focus our investments in areas that are critical to improving lives.

  107. Avatar UNEGBU EMEKA CHARLES says:

    It meant that Bank loans also helped to develop programs for the improvement of health,nutriton, family planning, and educational services. the aim of this effort was to provide for the impoverished and under-employed sectos of the population in a country. to help them develope and improve their economy.

  108. Name: ugwuoke cornelius chinemeogo
    Reg no: 2018/241852
    A change in program lending reflected the world bank shift on growth with equity. In the 1960’s many policy makers realized that the trickle down approach to development was not working while trying to address poverty.
    1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries.In the early 1970s the Bank began to concentrate more of its efforts on activities that would benefit poor people directly. It was widely recognized that the benefits of rapid growth in the 1950s and 1960s had resulted in relatively little improvement for many of the world’s poorest people. Even within some countries that had enjoyed rapid growth in average per capita income, few of the benefits had “trickled down” to the poor. The Bank argued that economic growth was essential for the reduction of poverty, but that special efforts were required to raise productivity and income among the poor.The global economy became increasingly troubled during the 1970s as successive oil price shocks, recession, and inflation took their toll. A severe recession in the industrial countries in the early 1980s, plus the international debt crisis, broke the momentum of Third World development. Economic growth slowed down in nearly all developing countries; many saw a decline in their per capita income. The proportion and number of the world’s people in absolute poverty (unable to afford a diet with the minimum acceptable number of calories) went up.
    The Bank turned its attention, urgently, to helping countries cope with the crisis in development. Progress against poverty is virtually impossible in countries beset by financial crisis and economic decline, so it made sense for the Bank to stress policies that would help restore the momentum of development. But some critics have charged that the Bank retreated from its poverty mandate in the process.
    Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace.
    Although during that time bank loans also helped to develop programs for the improvements of health, nutrition, family planning etc
    The aim was generally to provide for the improvised and under employed sectors of the population of the countries.

  109. Avatar Nnadebe Jane Amarachi (2018/241863) says:

    Name: Nnadebe Jane Amarachi
    Reg no:,2018/241863
    Depatment: Economics.

    The World Bank is an international organization that helps emerging market countries to reduce poverty. Its first goal is to end extreme poverty. It wants no more than 3% of people to live on $1.90 a day or less by 2030. Its second goal is to promote shared prosperity.
    The Bank’s stated purpose is to “bridge the economic divide between poor and rich countries.” It does this by turning “rich country resources into poor country growth.” It has a long-term vision to “achieve sustainable poverty reduction.”

    To achieve this goal, the Bank focuses on several areas:

    Overcome poverty by spurring growth, especially in Africa.
    Help reconstruct countries emerging from war, the biggest cause of extreme poverty.
    Provide a customized solution to help middle-income countries remain out of poverty.

    Spur governments to prevent climate change.
    Work with partners to bring an end to AIDS.

    Manage international financial crises and promote open trade.

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

    The 1980s and 90s brought additional challenges related to oil shocks, debt crises and environmentalism, and the Bank reacted by bringing new skills and safeguards into its work, as well as structural adjustment. Structural adjustment loans came with policy conditions, such as fiscal discipline, tax reform and liberalization of foreign direct investment; but while they were intended to improve the policy and institutional environment in which the loans were made, their overall effectiveness was debated internally and in the client community.

    To the world bank,Poverty is a complex problem that must be addressed at all levels of society. The Bank’s poverty reduction experts work within many areas and programs to meet our goals. Here are some of the key areas we focus on.

    Climate change

    Climate change is expected to hit developing countries the hardest. Higher temperatures, changes in precipitation patterns, rising sea levels, and more frequent weather-related disasters pose risks for agriculture, food, and water supplies. At stake are recent gains in the fight against poverty, hunger and disease, and the lives and livelihood of billions of people in developing countries.

    Community-driven development

    Community-driven development programs encourage villages, urban neighborhoods, or other household groups to managing their own development resources. It is a bottoms-up approach to development that seeks to give communities and local governments control over planning and investments. Community-based development efforts have had mixed results.

    Disaster risk management

    Natural disasters push people into poverty and make the poor even poorer. Before the 2004 Asian tsunami, for example, about one-third of the population in some coastal regions of Indonesia lived in poverty. After the disaster, nearly half of the population in those regions existed below the poverty line and depended on food aid. Cost-effective risk reduction programs, such as early warning systems, better building codes and emergency preparedness strategies are the best defense against future catastrophes, and for quick recovery.

    Education

    Education is a powerful driver of development and one of the strongest instruments for reducing poverty and improving health, gender equality, peace, and stability. There has been great progress in the last decade; many more children attend schools and girls’ education has improved. Still, many low-income countries remain off track to meet the 2015 Millennium Development Goals for education. Even when children complete school, they often do so without acquiring basic knowledge and skills. This can perpetuate the cycle of poverty, especially when labor markets demand a more skilled and agile work force than ever before.

    Energy

    More than 1.3 billion people live without electricity, hampering their ability to study, become entrepreneurs, work and connect with the outside world. About 3 billion people use solid fuels — wood, charcoal, coal, and dung — for cooking and heating, with serious health implications, especially for women and children. $40 billion in new capital investment per year is needed so that the energy poor can have environmentally sustainable energy services by 2030. This is in addition to annual operating costs of about $450 billion just to sustain energy services at current levels. So bringing environmentally sustainable energy to all is a tall order, but essential for poverty reduction and social inclusion.

    McNamara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies.

  110. Avatar Eze Chibuike Benjamin says:

    Name: Eze Chibuike Benjamin
    Reg no: 2018/244287
    Dept: Education/Economics
    Date: 18/1/21
    Course title: Development Economics
    Course code: Eco 362

    The Bank’s first loan was to France and loans to other European countries followed. But when the 1947 Marshall Plan took over post-war reconstruction efforts in Europe, the Bank quickly shifted to funding infrastructure projects around the world in sectors such as power, irrigation, and transportation. The first loan to a non-European country was to Chile in 1948 for $13.5M USD for hydroelectric power generation. The Bank also initiated a technical assistance program and in 1955 established the Economic Development Institute to provide training to officials from member countries.

    During the early years, the Bank evolved to meet the needs of its members. In 1956, the International Finance Corporation (IFC) was established to focus exclusively on the private sector, and in 1960 the International Development Association (IDA) was created to provide resources for less creditworthy members. The IFC’s first loan was to Brazil, in the amount of $2M USD, for the manufacture of electrical equipment. The Bank also mediated three international disputes that had an economic element: the nationalization of Iran’s oil industry; the development of the Indus River Water system; and the financing for the Aswan High Dam on the Nile.

    THE WORLD BANK CONFRONTS POVERTY
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

  111. Avatar Julius Loveth Olachi says:

    NAME: JULIUS LOVETH OLACHI
    REG NO: 2018/242294
    DEPT: ECONOMICS

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace.

    For the first two decades following World War II, the bulk of World Bank lending was used to finance the building of infrastructure related to energy and transportation, as much of Europe’s infrastructure had been destroyed. Rising pressure to increase the flow of funds to poorer nations, following the economic recovery of Europe, led to a similar pattern of investment in developing countries.
    By the late 1960s, when Robert McNamara
    became its president, for the first time the Bank began
    to direct its attention to poverty reduction and so to
    put a priority on rural development. By the late 1960s, when Robert McNamara
    became its president, for the first time the Bank began to direct its attention to poverty reduction and so to put a priority on rural development.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

    To alleviate poverty, He focused on key areas such as:
    a.) Education
    b.) Community driven development
    c.) Microfinance
    d.) Hunger,etc .
    the Poverty Reduction Strategy Paper
    (PRSP) approach was introduced jointly with the IMF.
    Although intended to improve on this experience, it remained very uneven, most obviously because of its weak connection to actual budgets. However, debt burdens did begin to decrease in Africa during the 2000s through various initiatives. The Bank was sometimes criticized in this period for placing too little emphasis on government institutions for fostering development such as coordination and industrial policy.

  112. Avatar ISAAC BRIGHT CHISOM says:

    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

  113. Avatar BENJAMIN GIFT IHUNANYA says:

    Economic growth slowed down in all parts of the world during the second half of the 1970s and the first half of the 1980s.After almost three decades of remarkable progress since the end of the Second World War, economic conditions started to deteriorate in the 1970s. Before the oil price shock of 1973, the annual growth of world gross product had been at 5.3 per cent, while during the rest of the 1970s, annual world growth reached only 2.8 per cent.By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” . These concepts transformed the Bank into the institution focused on development.

    Over time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.

  114. Avatar Ezeilo Kanayochukwu Chimuanya (2018/242412) says:

    Robert McNamara came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    1.IDA Replenishment
    The task of raising the necessary IDA funding – concessional funds for the Bank Group’s poorest members – became a personal challenge for McNamara. He used his extensive political contacts to bolster Congressional support in the U.S. He contacted prominent and persuasive people in the U.K., the Netherlands and Kuwait to urge positive action for IDA.
    2. Pearson Commission
    President George Woods had called for a “grand assize” of development experts to revitalize the donor community, and McNamara took up this proposal upon joining the Bank. He asked Lester Pearson, former prime minister of Canada, to head a commission which was to be independent of the Bank but would work in close proximity to McNamara.
    3. War on Poverty
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues.McNamara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies.
    4. Oil Crisis
    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution.
    5. Structural Adjustment
    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.

  115. Avatar Eze Ugochukwu Ethel says:

    Name: Eze Ugochukwu Ethel
    Dept: Social Science Education (Education Economics)
    Reg.no: 2018)245419
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: ” to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today. Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 years. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

  116. Avatar IBEZIM CHISOM PRECIOUS - 2018/242340 says:

    NAME: IBEZIM CHISOM PRECIOUS
    REG NO: 2018/242340
    DEPT: ECONOMICS
    COURSE: DEVELOPMENT ECONOMICS II

    The World Bank and International Monetary Fund (IMF) have played a significant role in the development of the global economy since the beginning of the twenty-first century. It is necessary to investigate the ‘how’ of the entire process – both the favorable and bad decisions – and learn from them. The most essential aspect is how these groups minimized the overall impact of absolute poverty in developing countries.
    The Bretton Woods Institutions, which included the IMF and the World Bank, were established in the 1940s. The pioneers had a bigger picture in mind for the world. They hoped that the IMF and the World Bank would contribute to global peace and prosperity.
    Following WWII, the World Bank concentrated on poverty alleviation, with financing centered on the concept of economic development. The World Bank initially prioritized Western Europe’s rehabilitation over the economic development of developing countries. The United States of America gave $13 billion to Western Europe as a form of economic support through its European Recovery Program (ERP). The Marshall Plan was born as a result of this.
    The World Bank’s commitments were decreased as a result of the ERP’s huge support, allowing it to turn its focus to developing economies. In the 1960s and 1970s, the world’s number of developing countries increased, and numerous colonies gained independence. Initially, these new states were concerned with establishing and consolidating their sovereignty. Their principal issue was the recognition of their sovereignty and the right to self-determination. Many countries expected that once this was in place, their economies would prosper and they would make progress. Unfortunately, colonial powers used many of the ex-colonies as raw material suppliers and marketplaces for industrial and manufactured goods. Few of these countries have the necessary infrastructure and industrial power to maintain economic growth.
    The World Bank initiated project lending to assist developing nations in improving their economies, with the goal of increasing a country’s ability to sustain economic development through project funding. Infrastructure, industrial, and agricultural growth were prioritized in these loans. As a result, the World Bank’s project lending was aimed to build an environment conducive to economic growth.
    Later, the World Bank admitted that economic expansion in developing countries was accompanied by unequal income and wealth distribution. Although the post-colonial development push resulted in better rates of economic growth and prosperity in emerging countries, the majority of the gains were concentrated in sectors that actively participated in what became a “state-led” economic development process. Economic expansion benefited only those with a government tie or foreign investment.
    As a result, a large number of people migrated from rural areas to urban areas, where many struggled to find work. Furthermore, development efforts prioritized industrial growth over agricultural growth, resulting in increased rural poverty. Some policymakers anticipated that as the economy improved, the wealth disparity between rich and poor would narrow. They believed that if government policy backed industries that appeared to be doing well, the entire country would benefit. In other words, increased prosperity as a result of progress will “trickle down” to the most disadvantaged members of society.
    The change to program lending coincided with the World Bank’s shift to “growth with equity.” It is crucial to emphasize that project lending and program lending are not mutually incompatible. Many politicians recognized in the 1960s that the “trickle-down” development method was not improving the lives of the poor. Several people, in fact, assumed that the benefits were “trickling up.” Because of the obvious maldistribution of wealth, the World Bank developed social initiatives aimed at directly alleviating poverty in conjunction with developing-country governments.
    These projects aimed to improve housing, education, health, energy, and transportation. Robert McNamara’s World Bank emerged as a prominent actor in the endeavor to address social welfare in developing countries between 1973 and 1980. Given the cold war, he believed it was critical for the World Bank to work with governments to reduce absolute poverty in developing countries.
    With financial and technical aid from the World Bank and wealthier countries, developing-country governments created state-run initiatives aimed at improving the situation of their citizens. The World Bank’s new sorts of initiatives reflected the “growth with equity” agenda.
    The World Bank made large loans to aid with rural development, urban growth, and the development of small-scale industries. Bank loans also helped to build efforts to promote health, nutrition, family planning, and educational services. The initiative’s purpose was to serve the poor and underemployed parts of a country’s population.

  117. Avatar OBELEZE CHRISTIANTUS IFEANYI says:

    NAME: OBELEZE CHRISTIANTUS IFEANYI
    REG NO: 2018/242407
    EMAIL: OBELEZECHRISTIANTUS@GMAIL.COM
    QUESTION
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant factor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss?
    ANSWER
    Robert McNamara, who was the President of the World Bank, gave a speech to the Bank’s Board of Governors in 1973 in Nairobi, he emphasized the alarming situation of the absolute poor in the developing world and proposed a rigorous approach to fight this poverty. The strategy he outlined for this poverty reduction or elimination was to be centered on an integrated approach to rural development. The World Bank therefore vigorously championed the cause of rural development in the 1970s defining rural development as: “a strategy designed to improve the economic and social life of a specific group of people- the rural poor. It involves extending the benefits of development to the poorest among those who seek a livelihood in the rural areas. The group includes small-scale farmers, tenants and landless” (World Bank, 1975). Following McNamara’s 1973 speech, the World Bank adopted a rural development strategy in 1975 (World Bank, 1975) which was a major element not only in the Bank’s poverty alleviation initiative, playing a dominant role in its lending during the 1970s and 1980s, but influenced in a major way other donor support for agriculture and rural development. Governments and donors saw rural development as a strategy to improve the economic and social life of people in the rural areas, specifically the rural poor. Rural development has therefore been expected to extend the benefits of development to all those seeking a livelihood in rural areas including smallholders, tenants and the landless. Since rural development’s basic intention is to reduce poverty and to strengthen human wellbeing in rural areas, it must clearly be designed not only to promote production and 5 raise productivity to increase food availability and incomes, but also to improve basic services such as health and education as well as infrastructure. The concept of a rural development program therefore is seen as extending beyond any particular activity or single sector. A program of rural development, whether at the area, regional or national level is expected to include a mix of activities including projects or programs to increase agricultural productivity and production, provide employment, improve health, education and infrastructure, expand communications and improve housing. Given the above expectations of rural development programs, it was commonly agreed that a successful rural development program would demand some form of coordinated development at the rural level and therefore this led to the introduction of the concept of integrated rural development (IRD), a model that emphasized coordinating the various sectoral actions of the state at the local level. Because of its nature, IRD became a complex and multisectoral model, the success of which was dependent on the interaction of multiple factors and performance of different entities, whose integration are a necessary prerequisite to effective implementation
    The World Bank’s Rural Development Strategy adopted in 1975 seems to have led the way in terms of the main approach to rural development financing. The strategy had a major influence on the Bank’s lending program and operational policies and eventually on the lending approach of other development finance institutions both bilateral and multilateral. The new strategy made the Bank shift the focus of its development efforts towards smallholders. The earlier financing pattern had been one of supporting mostly large-scale agricultural production or plantations, although donors and governments had started financing some smallholder projects in the 1960s, especially those that were export oriented. This change in emphasis by the Bank influenced a similar evolution among other donors and borrowing governments and was a notable achievement of the rural development strategy. In broader terms while the impact of the strategy was appropriate and effective, it was felt more in Asia than in Africa. However rural people in Africa did benefit from rural infrastructure investments, with increases in food production in several countries, and approaches developed to help subsistence farmers. Most of the projects during the decade in the form of integrated rural development projects were often too complex and overwhelmed the weak management capacity of state institutions of a number of African countries, including the parastatals set up to manage them. Many became technocratic and remote from local people’s needs. Programs became dependent on external expertise from donor countries for their design, implementation and management. A number of projects failed due to serious institutional weaknesses, and progress was slowest where most needed—in Sub-Saharan Africa. A lot of the IRD projects therefore achieved disappointing results.
    By January 1972, the World Bank report Possible Bank Actions on Malnutrition Problems led to the establishment of a bank nutrition unit. In 1973, Alan Berg’s book The Nutrition Factor and a 1973 nutrition policy paper, which called for a more active role in nutrition, reinforced McNamara’s support for eventual bank lending in that area. However, the bank did not approve its first loan for nutrition (to Brazil for $19 million) until 1976.
    Since 1970, McNamara had been advocating bank support of health and nutrition programs, as in speeches at Columbia University (1970) and the bank’s annual general meetings (1972). In June 1973, he requested a health policy paper from bank staff. The resulting 1975 Health Sector Policy Paper was 1 of the bank’s first efforts to generate and disseminate knowledge on health policy issues. In 1974, 1 of the bank’s most successful programs, the Onchocerciasis Control Program (OCP), was created to eliminate onchocerciasis (river blindness) and enhance country and regional control of the disease (Figure 2). This health initiative involved 11 countries in West Africa and was sponsored, along with the World Bank, by United Nations Development Program (UNDP), Food and Agriculture Organization, and WHO. It also involved the private sector and nongovernmental organizations.

    Because the bank was not notably engaged in health issues at the time, its decision to tackle river blindness was a turning point. The program, which continued for some 30 years, protected an estimated 34 million people from river blindness and cleared nearly 25 million hectares of land for agricultural use. The OCP gave the bank a boost in the health sector. In 1979, the bank established a health department and a policy to consider funding stand-alone health projects, as well as health components in other projects.
    These efforts in the health arena were influenced by the growing recognition in academic and policymaking development discourse that the basic needs approach was essential to poverty reduction. McNamara, in particular, engaged with this dialogue. In his 1976 address to the annual general meeting of the board of governors in Manila, the Philippine Islands, he underscored the need to reexamine trickle-down economics and to focus on the unmet basic human needs of hundreds of millions of people in developing countries. Over the ensuing years, he called for further research within the bank before endorsing a full-scale lending program for basic needs.
    Despite its failure to become fully institutionalized in World Bank culture and policy, the basic-needs approach laid the foundation for further expansion in the bank’s HNP sector. Official recognition of this shift came most publicly in the World Development Report, 1980 which demonstrated that malnutrition and ill health were 2 of the worst symptoms of poverty and that both could be addressed by direct government action, with bank assistance. The report also suggested that improving health and nutrition would likely accelerate economic growth. After a series of research papers suggested that health and education were directly productive, these findings were incorporated in the World Development Report, 1980 to argue for greater emphases on social sector lending.
    Because the bank was not notably engaged in health issues at the time, its decision to tackle river blindness was a turning point. The program, which continued for 30 years, protected an estimated 34 million people from river blindness and cleared 25 million hectares of land for agricultural use.
    The bank translated development theory and research into action by creating the Population, Health, and Nutrition Department in October 1979 and allowing stand-alone health loans. A 1980 Health Sector Policy Paper was 1 of the first attempts to provide a rationale for stand-alone investments in the health sector.

  118. Avatar AGUBUZO+SOMTOCHUKWU+THELMA says:

    NAME : AGUBUZO SOMTOCHUKWU THELMA
    REG NO: 2028/242444
    DEPARTMENT: ECONOMICS.

    Robert McNamara led world bank from 1968 – 1981. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.He emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities. The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions. From the beginning, McNamara tried to grasp the causes of economic under developmen, This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    The main concentration of the McNamara era was on the eradication of absolute poverty. They aimed at reducing poverty in developing countries. McNamara introduced Rural development which was introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure

  119. Avatar Ani+Obinwanne+Fortune says:

    WORLD BANK:
    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
    With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.

    World bank from ROBERT S. MCNAMARA (the 5th president of the world bank 1968 – 1981)
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty.Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    PERSONAL HISTORY:
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    ROLE:-
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

  120. Avatar Ugwu chidera loveth says:

    Ugwu Chidera Loveth
    2018/241235
    Economics Education.

    After just one month as Ford’s president, however, McNamara resigned to join the John F. Kennedy administration as secretary of defense. In his new post he successfully gained control of Pentagon operations and the military bureaucracy, encouraged the modernization of the armed forces, restructured budget procedures, and cut costs by refusing to spend money on what he believed were unnecessary or obsolete weapons systems. McNamara was also at the centre of a drive to alter U.S. military strategy from the “massive retaliation” of the Eisenhower years to a “flexible response,” emphasizing counterinsurgency techniques and second-strike nuclear-missile capability.

    As early as 1965, however, McNamara had privately begun to question the wisdom of U.S. military involvement in Vietnam, and by 1967 he was openly seeking a way to launch peace negotiations. He initiated a top-secret full-scale investigation of the American commitment to Vietnam (later published as The Pentagon Papers), came out in opposition to continued bombing of North Vietnam (for which he lost influence in the Johnson administration), and in February 1968 left the Pentagon to become president of the World Bank
    McNamara displayed what was generally regarded as great sensitivity to the needs of Third World nations. He retired from the World Bank in 1981 but remained active in many other organizations. He addressed issues such as world hunger, East-West relations, and other policy matters.

    Considered to be one of the major strategists behind the war, McNamara was reviled by many in the peace movement. Some were also critical of the information he conveyed about the situation in Vietnam. McNamara visited Vietnam several times during his tenure as secretary of defense. During a later visit, he reportedly began to develop reservations as to whether the United States would be able to secure a victory over the communists.

  121. Avatar Ugwu chidera loveth says:

    After just one month as Ford’s president, however, McNamara resigned to join the John F. Kennedy administration as secretary of defense. In his new post he successfully gained control of Pentagon operations and the military bureaucracy, encouraged the modernization of the armed forces, restructured budget procedures, and cut costs by refusing to spend money on what he believed were unnecessary or obsolete weapons systems. McNamara was also at the centre of a drive to alter U.S. military strategy from the “massive retaliation” of the Eisenhower years to a “flexible response,” emphasizing counterinsurgency techniques and second strike nuclear missile capability.

    As early as 1965, however, McNamara had privately begun to question the wisdom of U.S. military involvement in Vietnam, and by 1967 he was openly seeking a way to launch peace negotiations. He initiated a top-secret full-scale investigation of the American commitment to Vietnam (later published as The Pentagon Papers), came out in opposition to continued bombing of North Vietnam (for which he lost influence in the Johnson administration), and in February 1968 left the Pentagon to become president of the World Bank
    McNamara displayed what was generally regarded as great sensitivity to the needs of Third World nations. He retired from the World Bank in 1981 but remained active in many other organizations. He addressed issues such as world hunger, East-West relations, and other policy matters.

    Considered to be one of the major strategists behind the war, McNamara was reviled by many in the peace movement. Some were also critical of the information he conveyed about the situation in Vietnam. McNamara visited Vietnam several times during his tenure as secretary of defense. During a later visit, he reportedly began to develop reservations as to whether the United States would be able to secure a victory over the communists.

  122. Avatar Aroh oluchukwu perpetua says:

    Name:Aroh oluchukwu perpetua
    Reg no:2018/243120
    Course code:326
    Department: Economics
    Question
    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss
    Answer
    In 1973-1980 Robert McNamara led the world bank to work with the government to eradicate poverty in developing nation was when he became the world bank president in the late 1960s, Robert McNamara, for the first time (the Bank )began to direct its attention to poverty reduction and so to put a priority on rural development.
    McNamara reported on the Bank’s operations in fiscal year 1972 and reviewed the progress of the Five-Year Program for 1969–73. He assessed the current state of development in member countries and outlined the program for the five years 1974–78.

    His(McNamara’s) role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    Then his operations against poverty in the developing nations:
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  123. Avatar Ugwuoke Solomon chukwuemeka says:

    The World Bank
    The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle- and low-income countries.

    Currently, the World Bank has two stated goals that it aims to achieve by 2030. The first is to end extreme poverty by decreasing the number of people living on less than $1.90 a day to below 3% of the world population. The second is to increase overall prosperity by increasing income growth in the bottom 40% of every country in the world.

    Between 1973 and 1980, the World Bank, led by Robert McNamara, shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    Eradication of poverty
    Friom the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress.
    He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people,

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  124. Avatar Ugwuoke Solomon chukwuemeka says:

    Ugwuoke Solomon chukwuemeka
    2018/250872
    Economics major

    The World Bank
    The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle- and low-income countries.

    Currently, the World Bank has two stated goals that it aims to achieve by 2030. The first is to end extreme poverty by decreasing the number of people living on less than $1.90 a day to below 3% of the world population. The second is to increase overall prosperity by increasing income growth in the bottom 40% of every country in the world.

    Between 1973 and 1980, the World Bank, led by Robert McNamara, shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.

    Eradication of poverty
    Friom the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress.
    He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people,

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  125. Avatar EYA+Samson+Nnaemeka says:

    THE WORLD BANK:
    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
    With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

    World bank from ROBERT S. MCNAMARA (the 5th president of the world bank 1968 – 1981)
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    HISTORY:
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    Duty OF THE WORLD BANK:
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

  126. Avatar Stephen Faith Kuranen says:

    Name: Stephen Faith Kuranen
    Reg.no: 2018/242333
    Department: Economics Major
    Course code: Eco 262 (Developmental Economics)
    Assignment.
    •Discuss the program of Robert McNamara on eradication of poverty.
    • World Bank lending to developing countries and social welfare in developing countries.
    Answer.
    The record of the Bank’s operations under my predecessors is excellent by any standards. Profits have been good and have risen steadily in recent years.The security of our investment depends on our borrowers’ development and hence their interests and ours coincide.This accumulated experience now allows us to cope efficiently with a much larger volume of work. It is, however, clear that if our work is to increase, our staff must increase. Consequently, we have set in motion a worldwide recruiting drive to find and hire economists, engineers, financial analysts, and other specialists in our field.It is no longer enough to invest in traditional infrastructure: in power, transport, and communications but, the needs and the opportunities in the developing world now point unmistakably to such fields as agriculture, education, and population planning.
    In developing countries with excessive birth rates, loans in the field of population planning have perhaps the highest economic benefits of all. The blunt fact is that unless the rampant rate of population growth is reasonably moderated in many of these nations, not only will their developmental projects be finally overwhelmed, but their capability of repaying foreign loans will simply be eroded within a decade or two.
    Robert McNamara said, In the twenty-three years in history of the Bank, there have been no losses on its loans — no government has failed to honor its obligations. The Bank has not been a target for debt repudiation as have bilateral aid agencies and private credit corporations. The reason is obvious. Developing nations are convinced that it is in their own best interest to keep impeccable relationship with the Bank.
    Acheivements.
    Our lending operations, both in number and in amount are up substantially over last year. And, at the same time, our cash and liquid security balance has increased. It now stands at $1.7 billion — up $400 million over the level at the beginning of the year.so we will say the World Bank is an entirely unique financial institution. It is unique in its security and strength.And it is unique in its purpose and programs.

    References.
    https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.worldbank.org/en/news/speech/1969/05/14/address-by-mr-robert-s-mcnamara-president-world-bank-group-to-the-new-york-bond-club.

  127. Avatar Eze Joy Ozioma says:

    Name-Eze Joy Ozioma
    Reg No-2018/242430
    Assignment on Eco 362
    THE ROLE OF WORLD BANK
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.

    ROLE OF WORLD BANK IN ERADICATION OF POVERTY
    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    Oil Crisis
    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil producing states to provide this support. OPEC agreed to increase their commitments – $2 billion by 1974, and by 1975 OPEC members were contributing 3 per cent of their GNP.
    Structural Adjustment
    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.
    Rural Development
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    Urban Development
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    WORLD BANK LENDING THROUGH THE 1960s To 70s
    In Quest to combat poverty from the developing nations, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries. McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    Bank commitments increased from an annual level of about $1 billion in 1968 to over $13 billion in fiscal 1981. Governments were urged to speed up the preparation of appropriate projects to expedite the increased lending. McNamara quickly realized that a list of individual projects for a particular member country should conform to an overall development strategy, and in 1969 he instituted the practice of creating Country Program Papers.
    The proposed increase in the Bank’s activities required a rapid expansion in the number of staff. Between 1968 and 1973 the professional staff increased in number by 125%. The staff as a whole grew from 1,600 at the time he took over to 5,700 when he left in 1981. In addition to the increase in numbers, the nationality diversification of staff was increased. The results of these simultaneous changes caused some degree of tension and strain among staff.
    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)
    Funding the Blank
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.
    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.
    The first oil shock presented a particular challenge to the Bank and its member countries. McNamara responded by increasing the lending level even more.

  128. Avatar ODO RUTH SOMTOCHI. 2018/242445 says:

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.

    McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.

    War on Poverty

    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.

    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.

    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.

    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.

    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.

    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.

    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

  129. Avatar ONYEUKWU OBIOMA EMMANUEL says:

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    Role of the World Bank
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.
    Enlarging the Bank
    McNamara was never constrained by the Bank’s tradition of financial prudence. He felt that the daunting problems faced by the world required daring and risk-taking. Upon his arrival at the Bank, McNamara was surprised at what he considered the small volume of lending the Bank had made compared to the vastness of the needs. He developed an elaborate system of numerical reporting tables that provide complete and up-to-date pictures of the lending program and country needs: the Bank’s balance sheet, cash flow, lending program, and borrowing requirements. These reporting methods grew progressively more complex as McNamara insisted that more data be included in the reports.
    McNamara also decided that the Bank’s organizational structure required an overhaul. With an expanding volume of business the system of large centralized projects departments and geographical regional departments became unwieldy and bureaucratic. In 1972 he hired McKinsey & Co. to analyze the existing structure and business and to make recommendations for change. McNamara followed the process closely and in 1972 a major reorganizaiton of the Bank took place. Responsibility for lending was placed in the hands of regional vice presidents, who had control over resources required to meet agreed output targets.
    McNamara expanded the geographical range of the Bank’s lending, and the Bank became actively engaged in all countries that needed help. He re-established lending relationships with Egypt and Indonesia, and the latter became one of the Bank’s most important country programs. McNamara took personal charge of the membership negotiations with the People’s Republic of China. The prospect of extending the Bank’s support to a country with a billion people was a fascinating challenge for McNamara, and he used his considerable political skills to expedite membership. In May 1980, the People’s Republic of China assumed its membership in the Bank.
    The drastic increase in lending activities stimulated a debate over project quantity versus quality. McNamara denied that increased lending would sacrifice project quality, insisting that the same sound appraisal methods would be used. In fact, the appraisal process became more rigorous and sophisticated, the amount of staff time devoted to preparation and appraisal increased, and conditions designed to safeguard implementation and project supervision became more extensive. Nevertheless, there was a widespread perception among the staff that quality was being sacrificed for quantity. (The issue was never satisfactorily resolved during McNamara’s tenure, and this perception persisted until the 1992 Task Force on Portfolio Management pointed out the tension between new commitments and effective implementation.)
    Funding the Bank
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.
    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.
    The first oil shock presented a particular challenge to the Bank and its member countries. McNamara responded by increasing the lending level even more. McNamara turned to the members of the Organization of Petroleum Exporting Countries (OPEC) to finance this increase. He negotiated with the Shah of Iran for a development fund supported and controlled by OPEC and administered by the Bank. This did not materialize due to opposition from the U.S. government, and McNamara’s support for the fund caused tensions with the U.S. Treasury.
    Tensions with the U.S. arose again when the Bank sought a general capital increase in the 1970s. After two years of negotiations, a selective capital increase of $8.5 billion was approved in 1976. While this provided some relief, it did not satisfy McNamara’s demands. He created a task force to consider “the future role of the Bank”, which concluded that an increase of $45 billion was needed to support the needs of the borrowers. The executive directors ultimately approved a capital increase of $40 billion in 1979, following the second oil shock.
    McNamara was willing to examine new approaches to mobilize resources for development. In 1975 he introduced the “third window” lending, an attempt to leverage limited concessional funds. And he attempted to create a separate energy affiliate to assist developing countries in the improvement of their energy position. He was also ready to consider a recommendation of the Brandt Commission that the statutory ratio between the Bank’s lending and its equity be relaxed. Only the “third window” proposal came into being, but these efforts illustrate McNamara’s untiring search for new ways to mobilize resources.
    IDA Replenishment
    The task of raising the necessary IDA funding – concessional funds for the Bank Group’s poorest members – became a personal challenge for McNamara. He used his extensive political contacts to bolster Congressional support in the U.S. He contacted prominent and persuasive people in the U.K., the Netherlands and Kuwait to urge positive action for IDA.
    War on Poverty
    Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    From the beginning, McNamara tried to grasp the causes of economic underdevelopment. He knew that economic development was a multifaceted, multidimensional process, yet was always looking for some single key to the problem. This constant search for answers was reflected in the sequence of dominant themes in the work of the Bank during the McNamara period.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica.
    McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold. Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    McNamara did not see private capital as a realistic option in addressing critical development needs. But his reliance upon government intervention sometimes meant turning a blind eye to coercive practices – the involuntary collectivization of farmers in Tanzania, for example – and could lead the Bank to ignore the inefficiency and economic cost of government policies.
    Oil Crisis
    The oil shocks of the 1970s proved to be the most serious threat to the fight against poverty. No longer was the burning question how to reduce the number of the poor, but rather how to prevent a massive increase in their number. McNamara responded in his proven method: asses the damage, express it in numerical terms; and then work on a solution. He estimated that the poor countries needed an additional three to four billion dollars in concessional assistance, and he urged the industrial countries and the oil producing states to provide this support. OPEC agreed to increase their commitments – $2 billion by 1974, and by 1975 OPEC members were contributing 3 per cent of their GNP.
    Structural Adjustment
    In response to the oil crises, McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade.

  130. Avatar Imo onyinyechi mirabel says:

    NAME:imo onyinyechi Mirabel
    REG NO:2018/246751
    DEPT:EDUCATION/ECONOMICS
    COURSE:ECO 362
    EMAIL:mirabelimo@gmail.com

    What Is the World Bank?
    The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle- and low-income countries.
    World Banks
    Through the years, the World Bank has expanded from a single institution to a group of five unique and cooperative institutional organizations, known as the World Banks or collectively as the World Bank Group. The first organization is the International Bank for Reconstruction and Development (IBRD), an institution that provides debt financing to governments that are considered middle income. The second organization within the World Bank Group is the International Development Association (IDA), a group that gives interest-free loans to the governments of poor countries.

    The International Finance Corporation (IFC), the third organization, focuses on the private sector and provides developing countries with investment financing and financial advisory services. The fourth part of the World Bank Group is the Multilateral Investment Guarantee Agency (MIGA), an organization that promotes foreign direct investments in developing countries. The fifth organization is the International Centre for Settlement of Investment Disputes (ICSID), an entity that provides arbitration on international system.
    Robert McNamara being the 5th president of the world bank group between 1968 to 1981 shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

    Role of the World Bank
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    The World Bank supplies qualifying governments with low-interest loans, zero-interest credits, and grants, all to support the development of individual economies. Debt borrowings and cash infusions help with global education, healthcare, public administration, infrastructure, and private-sector development. The World Bank also shares information with various entities through policy advice, research and analysis, and technical assistance. It offers advice and training for both the public and private sectors.

    The World Bank provides financing, advice, and other resources to developing countries in the areas of education, public safety, health, and other areas of need. Often, nations, organizations, and other institutions partner with the World Bank to sponsor development projects.

    Human Capital Project
    In 2017, the World Bank created the Human Capital Project, which seeks to help countries invest in and develop their people to be productive citizens and active contributors to their economy.1 World leaders are urged to prioritize investments in education, healthcare, and social protections, and, in return, they will realize a stronger economy full of healthy, thriving adults.

    The Human Capital project outlines how governments should invest in providing quality, affordable childcare to support and improve child development, increase women’s access to better employment opportunities, and increase economic growth, to name a few.
    To build human capital globally, the World Bank has identified several areas of focus: the Human Capital Index (HCI), measurement and research, and country engagement.

  131. Avatar Kalu Melody Chinaza says:

    Name: Kalu Melody Chinaza
    Department: Economics
    Registration number:2018/245127
    An assignment on Eco 362(Development Economics)

    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal.

    Currently, the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.

    Hence, theWorld Bank has lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace.

  132. Avatar Okafor Ifunanya Chioma says:

    Name:Okafor Ifunanya Chioma
    Reg.No:2018/241851
    Department:Economics

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations.  Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize. He was the 5th World Bank President.McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded.Throughout his tenure at the Bank, McNamara struggled to gain a clear understanding of the problems the developing countries were facing.He also emphasized the need for projects supporting education, urban poverty and government to meet the basic needs of human.
    Before the McNamara era, the bank in conjunction with the government in developing countries established social programs intended to address the poverty. And McNamara pushed to address these. With the financial and technical assistance from world bank and developed countries, the governments of developing countries implemented state-run programs aimed at improving their standard of living.And the bank loans given to the developing countries also helped in implementation of programs aimed at improving healthcare and other facilities.

  133. Avatar ILEME OBINNA PATRICK says:

    REG NO: 2018/242297
    DEPARTMENT OF ECONOMICS
    DEVELOPMENT ECONOMICS II (ECO 362)

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    McNamara’s most important legacy remains the focus on poverty reduction. The belief
    that there would be no prospect for lasting, stable, and sustainable development without
    the eradication of poverty took hold during his tenure at the Bank. Poverty came to be
    seen as the major obstacle to achieving the balanced and sustainable development that
    all were struggling for.
    The poverty focus began to be shared widely by bilateral agencies (especially the US
    Agency for International Development, USAID), several nongovernmental organizations (NGOs), and several academic centers in the 1950s and the 1960s, especially in Europe
    (for example, at the Institute for Development Studies at Sussex University in the
    United Kingdom and various research centers in France). The World Bank began
    to direct its attention to poverty reduction and so to put a priority on rural development. One focus was on improved access to development resources for small farmers who had been bypassed by previous development projects. In practice, their activities and achievements remained somewhat diffused and uncoordinated. The advantage of World Bank research and policy work was its learning from innovations and research of others, assessing and adapting them, helping countries implement them at scale, and learning again from experience and, importantly, ongoing evaluation. It was in this process that McNamara and his team, through his speeches and policies and
    through the World Bank’s lending program, had a powerful impact on policies and programs of developing countries in all regions of the world and among the donor community. But in some respects, work on poverty grew through the 1970s, and the Bank has called this its human focus period, emphasizing access of the poor to education and health services. It took McNamara’s initiative to promote a general understanding and recognition that, not only could the poor contribute effectively to the growth process, but a lasting, balanced development process could not take place without the full participation and contribution of the poor.
    This emphasis on development for people became central. McNamara’s personal
    commitment to reaching people is reflected in the ample time he devoted to field
    visits. Some of the World Bank’s publications following the McNamara era further
    solidified the focus on the social dimensions of development.
    As mentioned, this focus on the poor came with a further distinction between the
    “absolute poor” and those who were defined as “relatively poor.” By and large, the
    poor were classified as the bottom 40 percent of a population in any given country.
    This emphasis, especially on the “absolute poor,” was upheld long after McNamara
    left the World Bank, and it is still widely recognized as the universal goal for all
    development institutions.

  134. Avatar Eze Uchechukwu says:

    • Eco. 362 (Online Discussion/Quiz 14-01-2022–Development in 1960s and 70s and World Bank Lending)
    • NAME: UCHECHUKWU
    • REG NO : 2018/241866
    • DEPARTMENT: ECONOMICS
    • Email: uchechukwu.eze.241866@unn.edu.ng
    • QUESTION:
    • Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    Discussion:

    Before McNamara era, project lending have in existence even after the Introduction of program lending. It worth noting that project lending involves “growth with inequality” where distribution or allocation of resources is not done fairly but according the interest not aligned to the general public. The project (project lending) also deal on development or improvement in infrastructure, Industry and agricultural but focused firstly on development social infrastructure such roads, health center, power supply and others capital goods to sustain the ‘three core’ object of the project because without road and Infrastructural facilities in place the development of industry will be at the mercy of mediocrity and development will be completely retarded. So the project enable first on building roads to enhance development in the social.
    Someone can quickly say that project lending was growth with inequality that is equal opportunities. While program lending wanted to bridge the inequality gap that was created by project lending. However, with the financial and technical assistance from World bank and developed countries, programs that will enhance and lead to improvement of lives in the developing countries were established. Bank loans also helped to develop program for the improvement of health, Nutrition, family, planning and educational services. The aim if this effort was to provide for the impoverished and under employed sectors of the population in a country. The growth with equity was initiated by world bank that was when the new type of programs were introduced. The question now is why was it called growth with equity? It was because it involved everyone. The Masses equally participated, the projects and program were made general and no one was excluded (social inclusion) it provided common platform where the haves and haves not can express themselves. Although, project lending aimed at the development of infrastructure, industry and agriculture still continued. It was noted that the world bank lent huge some of money to facilitate.
    (a) Urban development
    (b) Rural development
    (c) Development of small scale industries.
    The world bank looked at certain critical areas that can affect general improvement of lives even vaccination against deadly diseases.
    Prior to 1970s and 1980s when World bank started their programs, there was nothing like family planning, but it was the campaign of world bank that led to it’s recognition.

  135. Avatar Ogbuewu Cosmos Nnachetam says:

    Name: Ogbuewu Cosmos Nnachetam
    Reg No: 2018/243754
    Department: Economics

    The then World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals which was to accelerate economic growth and to reduce poverty. These concepts transformed the Bank into the institution focused primarily on development because during the 1970s, over 40% of people in developing countries lived in absolute poverty so, in response, the World Bank’s projects aimed to help the poor directly.
    The Worlds bank then made provisions to lend to member states. between 1968 and 1981, Lending to member countries increased twelve-fold and expanded into several new sectors such as: environment, rural development, water, sanitation, education, etc.
    Also, During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

  136. Avatar Kalu Ezinne obiwe says:

    NAME: KALU EZINNE OBIWE
    REG NO: 2018/247194
    COURSE CODE: ECO 362
    COURSE TITLE: ECONOMICS DEVELOPMENT 2
    EMAIL: kaluezinne007@gmail.com
    ASSIGNMENT: Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    McNamara adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities. The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara as the spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters. To McNamara, the world bank was “an innovative, problem-solving mechanism to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development. McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

    McNamara War on Poverty
    McNamara struggled to gain a clear understanding of the problems the developing countries were facing throughout his tenure at the bank. He traveled extensively, and consulted with a wide group of development thinkers. He insisted on spending time in the field, visiting schools and population clinics, talking to farmers and extension workers. And he pushed the Bank to be more inquisitive about development issues. The Bank’s economic research capacity expanded under the leadership of Hollis Chenery. The collection and processing of data became an important institutional response to the quest for better understanding and more effective solutions.
    One issue that came to characterize the McNamara presidency was the problem of population growth. McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers. He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.

    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education. McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    McNamara’s sharply increased level of lending necessitated a quantum leap in mobilizing both conventional and concessional resources. When McNamara arrived at the Bank, the climate for a massive increase of development aid was unfavorable. The UN Development Decade resulted in some donor fatigue as development problems persisted. Despite the adverse economic situation (the Bank’s liquidity was low, necessitating a temporary suspension of lending toward the end of George Woods’ tenure; IDA replenishment negotiations were stalled; and the US Treasury refused permission for the Bank to enter the capital market with any large issues), McNamara announced that in his first five years the Bank’s net borrowing would increase to three times the level of the previous five years.
    To accomplish this he proposed to increase borrowings from central banks; break into the European pension trust market, and borrow more in Switzerland, Kuwait and Italy. He looked outside of Wall Street to Germany, Japan, and the oil-rich Middle East. He hired Eugene Rotberg to take command of his ambitious borrowing plans. McNamara’s plans were extraordinarily successful, and the Bank’s net borrowings averaged $780 million per year during the first five years of McNamara’s presidency.

  137. Avatar Name: Chris-Nwaije Ihuoma Nancy Reg no: 2018/241847 says:

    Name: Chris-Nwaije Ihuoma Nancy
    Reg No: 2018/241847
    Economics Department

    Robert Mcnamara was the first world bank president to set poverty reduction (real improvements in the lives of poor people) as the bank’s objective in the context of the Cold War and the directions of US foreign aid policy.

    In 1973, Robert McNamara, then President of the World Bank, was one of the earliest pioneers to boldly describe the alarming facts of absolute poverty in the developing world and to call for a rigorous response based on a moral imperative. In his 1973 Nairobi speech to the Board of Governors, McNamara outlined a strategy toward its reduction or elimination. While recognizing the hurdle that citizens in the developed world would have to overcome to allow increasing sums of money to be used to assist the poorest of the poor, he emphasized that rural development was to be the centerpiece of his plan to raise the productivity of the poor.

    Governments of the developing world were called to meet the “basic human needs” of their populations. As time went on, despite countries’ positive annual growth, malnutrition persisted, infant mortality remained high, life expectancy was low, illiteracy widespread, unemployment soared, income distribution skewed, and the gap between the rich and poor countries was growing. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.

    The Integrated rural development (IRD) approach thus became the prototype for this assistance. These programs grew out of this original excitement of development practitioners, which hoped to transform undeveloped rural settings into cohesive communities, with profitable productive opportunities, and where members could enjoy basic public and social services. While rural development programs went on to benefit millions, rural laborers and the landless benefited, at best, indirectly. As many studies have attested, IRD projects achieved disappointing results. Some projects failed due to serious Institutional weaknesses, and progress was slowest where most needed—in Sub-Saharan Africa. What happened to the approach launched with such confidence and optimism?

    In the 1970s, the World Bank and other donor agencies entered poverty reduction and rural development in a major way with IRD programs. These programs focused on participation, community empowerment, and the decentralization of local institutions, arguing that this approach is able to achieve results by aligning development priorities with community goals. In practice, however, the programs suffered the same fate as earlier community development programs, becoming centralized, bureaucratic, and unable to coordinate actors on the ground. Some countries saw decentralization as a means of dismantling command economies, others a tool for poverty reduction, and still others as a path to grassroots empowerment. Regardless of the hope the approach held out at the outset, realities in the world economy sidetracked development practitioners to more pressing challenges.

    The world debt crisis of 1982 lasted well into the end of the 1980s, during which time the Bank’s main focus was stabilization and structural adjustment programs (SAP) via macroeconomic and sector policy reforms. At this time, the Bank was forced to face a renewed emphasis on poverty reduction in the midst of needing to mitigate the negative impacts and unintended consequences of SAPs, which had a draconian effect on the poor.

    By the early 1990s, the formal IRD approach was discredited and abandoned by the World Bank and most donors. Large-scale irrigation and rural development project lending was replaced by support for human development sector. Tough lessons had been learned. To improve a community’s “well-being” in social, economic, and environmental terms, outside-initiated transformation does not come easily. Practitioners had learned that target communities—not their national, nor regional governments, nor even their village headmen—must have true ownership over this process or it does not work. Necessary community mobilization requires extensive work for which the international donor community does not have the appetite, expertise, nor patience in pursuing given their institutional priorities, and legal and financial frameworks. Policy makers must keep these considerations in mind as they consider how best to harness the power of communities.

    Some reasons IRDs fell short of expectations:

    • Communities were not adequately consulted or involved in project design, implementation, and monitoring. Even in projects with the objective of high levels of participation, local knowledge was often a construct of the planning context.

    • IRD projects exhibited the usual top-down approach. Central government officials continued to make decisions on project design and implementation.

    • IRD projects were often too complex, with numerous components and executing agencies, entering into many sectors simultaneously, demanding too much from weak institutions and leaving little to no capacity building.

    • Countries began to view agriculture as a declining sector and thus unimportant for development. As a sector, agriculture growth depends on the successful, simultaneous development of other parts of the rural sector.

    • Political power of the urban elites explains the urban bias so characteristic of policies, institutions, and expenditure patterns in developing countries.

    • Rural communities tend to be more dispersed, poor, inarticulate and disorganized and rural areas suffer from their own inequality: the rural elite.

    • Rural poor have little political voice. Communities with greater capacity, political networks, or wealth are more likely to propose and win subprojects.

    • The rural sector has been discriminated against; the urban bias means that the rural communities suffer from non-existent social services.

    The IRD approach was well-intended in the face of McNamara’s daunting cry for help. His gamble to empower communities to achieve better results was a good one. Now in hindsight, we can say that decades of its use has afforded many lessons learned, offering policy makers and government officials better tools and methods to design projects with a more realistic, seasoned approach to reach the poorest of the poor. National governments have gained understanding of what it means to listen to their local communities in order to help them. While ownership was never fully achieved with IRD programs, IRDs as a tool in the World Bank’s arsenal have not disappeared from the World Bank portfolio.

    In 1973 Robert McNamara, then president of the World Bank, speaking to his board of directors in Nairobi, proposed a concrete target:

    “We should strive to eradicate absolute poverty by the end of this century. That means in practice the elimination of malnutrition and illiteracy, the reduction of infant mortality, and the raising of life-expectancy standards to those of the developed nations.”1

    McNamara had a clear notion of the relation between poverty and inequalities:

    “The basic problem of poverty and growth in the developing world can be stated very simply. The growth is not equitably reaching the poor. And the poor are not significantly contributing to growth (…)”

    “Despite a decade of unprecedented increase in the gross national product (GDP)of the developing countries, the poorest segments of their population have received relatively little benefit. Nearly 800 million individuals – 40 percent out of a total of 2 billion – survive on incomes estimated (in U.S. purchasing power) at 30 cents per day in conditions of malnutrition, illiteracy, and squalor. They are suffering poverty in the absolute sense.”

    To confront this problem, he said, developed countries should commit to increasing ODA up to 0.7 percent of their GDP by 1975, as pledged in a 1970 General Assembly resolution and improve the terms of trade of developing countries. The latter should, in turn, tackle internal inequalities, particularly through land reform, since absolute poverty was then mainly a rural problem.

    References:
    https://www.socialwatch.org/node/17284
    https://advocacy.thp.org/2015/08/what-happened-to-integrated-rural-development/

       My thoughts:
    The project and program lending policies of the World Bank under the leadership of Robert McNamara was not as successful as it should have been, due in large part, to the reasons listed above some of which include not quite understanding the intrinsic differences in the economic, political and cultural structure of these developing countries in which most of the World’s poor reside. Till date, poverty eradication seems to have remained an illustrious goal the world keeps trying to attain. It seems a lesson in futility especially in light if the pandemic, which put even more people in extreme poverty, and the ever expanding population of these developing countries. Poverty eradication is still a target of the world bank, sdgs, mdgs, indeed most global institutions and programs are targeting the reduction of persons living in absolute poverty in the world. The United Nations declared “freedom from fear of want” as one of the human rights in its Universal declaration of 1948

    Robert Mcnamara succeeded in the sense that he was the first president to redirect the objectives of the World Bank from being primarily concerned with making “desirable investments” for the developed countries (that fund its programs) to an intensive, intentional and almost aggressive lending to the poorer countries to lift their masses out of poverty. He expanded the portfolio of the world bank and has set a legacy and a target the bank seems determined to attain. The World Bank has continued to support developing countries I order to attain this goal.

  138. Avatar ANYANWU COLETTE CHINAZAEKPERE says:

    NAME: ANYANWU COLETTE CHINAZAEKPERE
    REG. NO: 2018/242442
    DEPARTMENT: ECONOMICS (MAJOR)
    EMAIL: colettechinazaekpere@gmail.com
    COURSE: ECO 362

    The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace.

    The World Bank considers itself a unique financial institution that sets up partnerships to reduce poverty and support economic development.
    The World Bank supplies qualifying governments with low-interest loans, zero-interest credits, and grants, all to support the development of individual economies.

    Partnering with Governments
    Together, IBRD and IDA form the World Bank, which provides financing, policy advice, and technical assistance to governments of developing countries. IDA focuses on the world’s poorest countries, while IBRD assists middle-income and creditworthy poorer countries.

    Partnering with the Private Sector
    IFC, MIGA, and ICSID focus on strengthening the private sector in developing countries. Through these institutions, the World Bank Group provides financing, technical assistance, political risk insurance, and settlement of disputes to private enterprises, including financial institutions.

    The World Bank has supported governments in designing, implementing, and evaluating Community-driven development (CDD) programs operate on the principles of transparency, participation, accountability, and enhanced local capacity.

    programs across a range of low to middle-income countries, including countries affected by fragility, conflict, and violence.
    Sustainable economic growth continues to offer the surest path out of poverty.
    The World Bank supports investments in countries that underpin long-term growth and that help to meet the needs of their citizens.
    The world bank work with policy makers to develop markets, institutions, and economies that are stable, equitable, and efficient.
    The world bank help countries to meet their essential infrastructure needs in a way that ensures sustainability.
    Through analysis, advice, financial instruments, convening power, and crucially, a solid evidence base, we provide our clients with the tools to make informed development decisions for lasting impact.

    The programs respond to a variety of urgent needs including access to clean water, rural roads, school and health clinic construction, nutrition programs for mothers and infants, and support for micro-enterprises.

    Reaping the benefits of digital technologies

    Digital technologies are rapidly changing the way people, businesses, and governments communicate, transact, and access services and information. The digital economy is becoming a critical driver of economic growth, investment, and job creation, so the adoption of digital technology by traditional industries is important for improving productivity and opening access to new markets.
    The World Bank supports countries and their citizens as they take advantage of these opportunities.
    This support includes expanding affordable Internet access to the more than 4 billion people who remain unconnected, developing digital infrastructure, and building the digital skills and institutions necessary to participate in the digital economy. In October 2016, the Bank launched a new Digital Development Partnership (DDP) with participants from the public and private sectors to operationalize the lessons of the World Development Report 2016: Digital Dividends.
    The DDP will help to close the global digital divide to ensure that everyone can reap the economic and social benefits of connectivity. The IDA-financed Regional Communications Infrastructure Program has supported nine countries in eastern and southern Africa, which have significantly increased access, improved quality, and lowered the cost of international connectivity by as much as 90 percent through market competition reforms and thousands of kilometers of network infrastructure investment.

    Pursuing low-carbon energy
    Access to modern, reliable, and affordable energy is critical for countries to meet their development needs, but it must be pursued in a sustainable manner. The World Bank works with governments to provide low-carbon options for energy access that fit every country’s circumstances, including renewable sources like solar.

    For example, the Bank is providing more than $1 billion in lending for India’s solar projects, including a rooftop solar initiative that will deliver electricity to millions.
    Through off-grid solutions, over 1 million households in Ethiopia are gaining access to energy, mostly with solar lanterns and home systems. Smart grids are boosting the uptake of renewable energy in Turkey, Ukraine, and Vietnam. Comprehensive analytical tools—like the Regulatory Indicators for Sustainable Energy (RISE), which assess countries’ policies and regulatory support for sustainable energy—help governments to craft policies that attract private sector investments as well as to track progress toward access to energy for all.

    Partnering with the private sector on infrastructure

    The World Bank is committed to helping governments make informed decisions about improving access to quality, sustainable infrastructure services, including where appropriate, using public-private partnerships. During this fiscal year, several initiatives occurred to support good decision making by policy makers on infrastructure projects, often in collaboration with other multilateral development banks (MDBs) or development partners. In April 2017, the second Global Infrastructure Forum took place under the theme Delivering Inclusive, Sustainable Infrastructure. Participants from the MDBs, the G-20 (Group of 20), client countries, civil society, and the private sector discussed how MDBs can best work with countries and the private sector to create markets for infrastructure projects.

    Expanding knowledge was also a priority. With partners from across the multilateral development community, the Bank released an updated online Public-Private Partnerships: Reference Guide, which included new contributors and the addition of topics ranging from environmental and social issues to risk mitigation and credit enhancement. In addition, the Global Infrastructure Facility—a partnership to expand the market for private financing of infrastructure in emerging markets—hit a milestone with 20 investment projects now under support, with the combined potential to catalyze more than $13 billion in commercial financing.

    Growing through better transport connectivity

    Transport enables the movement of people, goods, and ideas around the globe, and provides better access to economic opportunities, such as jobs. Transport also plays a major role in social inclusion. Rural roads can unlock a world of opportunities for isolated communities, while urban transport that benefits low-income com- munities can promote access to affordable ways to reach jobs. Ensuring that such outcomes are sustainable means tackling climate change mitigation in this sector—which accounts for 23 percent of the world’s energy-related CO2 emissions—by supporting the development of low-carbon, efficient transport systems. In Dar es Salaam, Tanzania, for example, a $225 million IDA credit and a $200 million IDA Scale-Up Facility credit are supporting the expansion of the city’s bus rapid transit system. The system’s first phase has already reduced travel time and costs for commuters, saving them up to 90 minutes a day.

    Facilitating trade and integration

    Increased trade integration has helped to drive economic growth in developing economies in recent decades, lifting millions out of poverty. The World Bank works with governments to design and implement policies to maximize trade competitiveness in both goods and services. The Great Lakes Trade Facilitation Project is facilitating cross-border trade between the Democratic Republic of Congo and its neighbors in eastern and southern Africa by reducing costs, time wasted, and harassment to improve the operating environment at the border for traders. The project targets the constraints faced by small-scale traders, especially women, in cross-border trade. It seeks to improve land and lake border facilities and develop systems to better connect farmers to regional markets.

    Promoting investment through reforms to reduce risk

    Reducing real or perceived risks to investors across macroeconomic, business, and financing dimensions is a prerequisite for creating markets that can attract the investment needed to create opportunity. In the Arab Republic of Egypt, for example, the World Bank has provided a series of development policy loans to support a reform program that is helping the country to recover from a downturn in investment. The reforms introduced by the government have boosted confidence in the Egyptian economy. They sparked strong interest by foreign investors, as evidenced by a sharp rise in portfolio inflows in January 2017, which amounted to $1.2 billion, a 10-fold increase compared to only a few months earlier. In Haiti, with World Bank Group support, the government secured $203 million in actual investments and support for 15,800 new direct jobs in the country’s garment sector. The joint World Bank–International Finance Corporation (IFC) Haiti Investment Generation Program brought together public officials, the private sector, and foreign investors on promotion strategies and special economic zones. Despite the challenging local environment, the program helped to attract new investors to the garment sector.

    Boosting agriculture to create jobs

    Roughly 80 percent of the world’s extreme poor live in rural areas and depend largely on farming to make a living. Because the food system currently provides more jobs than any other sector in many countries, boosting agriculture can be one of the most powerful tools against poverty. For nearly a decade, the Bank-supported Bihar Rural Livelihoods Project, popularly known as ”JEEViKA,” improved the livelihoods of more than 1.8 million women from rural households in Bihar, India. The project established ’one-stop shops’ for agriculture, which connected farmers with credit, inputs, agricultural training, and farmer field schools. Backyard poultry farms, dairy training, product marketing assistance, and other livelihood interventions helped to boost annual incomes by 30 percent. Job skills training improved employment prospects for over 29,000 rural youth. The project also empowered women and marginalized groups with access to government institutions and financial services, enabling $98 million in credit and facilitating more than $22.5 million in household savings.

    Providing safe water and sanitation for all

    As the world’s largest multilateral source of financing for water in developing countries, the World Bank is committed to working closely with partners to achieve the visionof “A Water-Secure Worldfor All.” To this end, the Bank prioritizes the sustainability of water investment, and supports financingthat includes mobilizing private capital to move toward safe water and sanitation for all. The work promotes inclusive accessto the benefits of water, institutions that manage water equitably, and resilience to help countriescope with the impact of external shocks on water. In Bangladesh, for example,a rural water supply and sanitation project has provided nearly 1.2 million people with access to improved water sources and hygienic latrines. Water and sanitation service delivery cannot be addressed separately from sustainable and safe management. With the United Nations, the World Bank convened a High-Level Panel on Water committed to acting on developing water resources, and in September 2016, issued an Action Plan thatwill help to ensure theavailability and sustainable management of water and sanitation for all.

    Mobilizing domestic resources for effective services

    Countries that can effectively deliver services grow faster, innovate, and respond more quickly to internal and external shocks. But without a sufficient revenue base, governments have difficulty funding basic state services, such as road construction, health care, and public safety. Research has found that countries that collect less than 15 percent of GDP in taxes are at a disadvantage, not only in providing services but also in economic growth. The World Bank’s Global Tax Team has stepped up its work in coordinating across institutions on international tax issues and delivering country-based interventions. In Armenia, for example, the Bank is helping the government to strengthen tax collection to overcome some of the setbacks it incurred during the financial crisis. So far, about 35,000 tax inspectors have been trained, about 96 percent of tax services are provided electronically, and the amount of tax collected has gone up 38 percent.

    These programs have consistently shown an ability to deliver an increase in access to quality infrastructure and services in a cost-effective manner, in ways that have broad community support.

    Experience has shown that when given clear and transparent rules, access to information, and appropriate technical and financial support, poor communities can effectively organize to identify community priorities and address local problems by working in partnership with local governments and other institutions to build small-scale infrastructure and deliver basic services.

    The World Bank recognizes that CDD approaches and actions are important elements of an effective poverty-reduction and sustainable development strategy.

    In many countries, CDD operations are the only safety net available to reach remote and vulnerable groups in a timely and credible manner. They have a strong track record in moving funds quickly and flexibly in response to disasters and global crises such as the COVID-19 pandemic. For instance, as a complement to household cash transfers, community-level (block) grants that are based on community emergency plans can be distributed to rural villages and urban neighborhoods since community leaders often know best what the specific needs are in each community.

  139. Avatar Owoh+Anayo+Jonathan says:

    NAME: OWOH ANAYO JONATHAN
    DEPT: ECONOMICS
    REG NO: 2018/250325
    COURSE TITLE: DEVELOPMENT ECONOMICS 2
    COURSE CODE: ECO 362
    ANSWERS:
    THE WORLD BANK:
    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
    With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
    Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.
    Today the Bank Group’s work touches nearly every sector that is important to fighting poverty, supporting economic growth, and ensuring sustainable gains in the quality of people’s lives in developing countries. While sound project selection and design remain paramount, the Bank Group recognizes a wide range of factors that are critical to success—effective institutions, sound policies, continuous learning through evaluation and knowledge-sharing, and partnership, including with the private sector. The Bank Group has long-standing relationships with more than 180 member countries, and it taps these to address development challenges that are increasingly global. On critical issues like climate change, pandemics, and forced migration, the Bank Group plays a leading role because it is able to convene discussion among its country members and a wide array of partners. It can help address crises while building the foundations for longer-term, sustainable development.
    The evolution of the Bank Group has also been reflected in the diversity of its multidisciplinary staff, who include economists, public policy experts, sector experts, and social scientists, based at headquarters in Washington, D.C., and in the field. Today, more than a third of staff are based in country offices.
    As demand for its services has increased over time, the Bank Group has risen to meet them. For perspective, the World Bank made four loans totaling $497 million in 1947, as compared to 302 commitments totaling $60 billion in 2015.

    World bank from ROBERT S. MCNAMARA (the 5th president of the world bank 1968 – 1981)
    Robert McNamara shaped the Bank as no one before him. He came to the Bank brimming with energy, forceful, active, pushing to get things done. He brought with him the firm belief that the problems of the developing world could be solved. What was needed was clear analysis of the problems and determination in the application of appropriate remedies. If this happened, success could not fail to materialize.
    McNamara eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.
    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.
    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    PERSONAL HISTORY:
    Robert Strange McNamara was born in Oakland, California in 1916. He attended University of California at Berkeley, majoring in economics and excelling in his studies. His personal experiences during the Great Depression and the liberal outlook at Berkeley combined to shape his liberal social outlook. He enrolled in the Harvard Business School in 1937 and it was here that he acquired the management techniques that became characteristic of his leadership style. The concept of management based on the accumulation and analysis of quantitative data appealed to his disciplined mind and provided him with a tool for exercising control in uncertain conditions.
    He applied this management style in the military during World War II and in private industry (Ford Motor Company) after the war. The aggressive new management techniques earned McNamara and his colleagues the nickname “Whiz Kids.” In November 1960 McNamara was named president of Ford Motor Company. But after only one month in this position, McNamara was called to the new Kennedy administration to serve as Secretary of Defense, with a mandate to bring the military under control through the application of efficient management.
    McNamara quickly became involved in the substance and politics of government administration, and Presidents Kennedy and Johnson sought his advice on defense, foreign policy, and international relations. The Vietnam War claimed much of McNamara’s time and energy at the Defense Department, and over the years he began to feel that victory in this war was impossible. His thinking on the war gradually diverged from that of President Johnson, and Johnson abruptly nominated McNamara as the next World Bank president.
    ROLE OF THE WORLD BANK:
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries.

  140. Name: Uwa chioma Maryjane
    Department: Economics
    Reg no: 2018/241876
    Email: chiomauwa112@gmail.com
    Course code: Eco 362
    Course title: Development Economics II
    Assignment
    Discuss development between 1973 and 1980( world bank led by Robert Mc NAmara):
    The world bank initially were interested in the reconstruction of Europe but since the US took over the reconstruction of Europe due to the US marshall plan in which $13 billion US dollars was given to Europe, the world bank focused on issuing loan to developing countries. The world bank focused on project lending which the aim was to sustain an economic development through generating income for projects. Early World bank lending focused on the development of Infrastructure, Industry and Agriculture. The post colonial push to develop resolved to a high rate of growth and increase in income but the increase in income was focused on sector that were directly involved in what became a state led process of economic development. Only those directly involved in industries, government benefitted the most.
    In the 1960s many policy maker discovered that this approach did not benefit the poor. The world bank led by Robert Mc Namara in conjunction with government of developing countries established social programs which aimed at improving housing, education, health, energy and transportation. Although the project lending aimed at improving infrastructure, industry and agriculture still continued, the program initiated during the Mc Namara era was directly aimed at the eradication of absolute poverty. In Robert Mc Namara’s view it is imperative( in light of the cold war) for the world bank to work with government to eradicate absolute poverty in developing nations. With financial and technical assistance from the World bank and developed nations the government of developing nations implemented state run programs aimed at improving the lot of their nations citizens. The world bank lent large sum to facilitate rural development, urban development and development of small scale industry. Bank loans also helped to develop programs for the improvement of health, nutrition, family planning and educational services which aimed at providing for the impoverished and under employed sector of a populace in a country.

  141. Avatar Ifiegbu Ononuju Julie star says:

    QUESTION.

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    ANSWER

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.
    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 y ears. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.
    By the late 1960s, when Robert McNamara Became its president, for the first time the Bank began To direct its attention to poverty reduction and so to Put a priority on rural development. One focus was on Improved access to development resources for small Farmers who had been bypassed by previous development projects; success was mixed at best, however, and agricultural lending fell drastically in subsequent years. But in some respects work on poverty grew Through the 1970s, and the Bank has called this its human focus period emphasizing access of the poor to education and health services. But critics argued these Efforts were ineffective due to failure to work directly with people living in poverty and comprehend their constraints, or to deal with elites who undermined or siphoned resources from projects. In the 1980s, debt and finance became the focus. In the 1970s, and early 1980s developing countries took on a lot of debt. The Bank started concentrating structural adjustment loans—large loans that come with certain conditions on what the country can do with the Money, and What kinds of policies they need to implement, primarily focused on liberalization, marketization, and privatization. The activities of the Bank to a large extent merged with the Fund in this period and were heavily criticized by many economic development specialists and by developing countries. For example, the poor Were harmed by the emphasis on policies such as“cost recovery” for services that in many cases in Africa and elsewhere was expected to extend to school and health care fees. The goal of debt reduction was often explicit; Primary beneficiaries would include Foreign banks. “Structural adjustment” loans were designed to promote a fundamental restructuring of the economies of countries plagued by chronic trade and budget deficits by improving the macroeconomic policy environment with an emphasis on (a) mobilizing
    (b) improving public-sector efficiency by stressing price-determined allocation of public investments and improving the efficiency of public Enterprise,
    c) improving the productivity of public-sector investments by liberalizing trade and domestic economic policies, and (d) reforming institutional arrangements to sup port the adjustment process Critics of structural adjustment programs point to the fact that they frequently lead to increased hardships for the very poor and on occasion have substantially reversed the benefits of earlier economic progress. By the mid-1990s, the Bank resumed a greater focus on poverty.
    McNamara believed that rapid population growth was the greatest barrier to economic progress. The Bank’s first financing for family planning was in 1970 in Jamaica. McNamara realized that economic growth without equitable distribution did little to change the worst economic problems. He turned to Hollis Chenery, head of the Bank’s economic research department, who focused on the problems related to the uneven income distribution in developing countries. Chenery’s Redistribution with Growth was published in 1974. McNamara presented the results of Chenery’s research at the 1972 UNCTAD Conference in Santiago, Chile. He stated that in the early stages of a country’s economic growth the poorest segment of society was liable to suffer the most. This was most evident in subsistence agrarian economies, and McNamara recommended measures such as land and tenancy reform and programs to increase the productivity of small farmers.
    He also emphasized the need for projects supporting education. During his tenure lending for education increased threefold.
    Rural development was the centerpiece of the second five-year plan, introduced in Nairobi in 1973. To raise the productivity of the rural poor, the Bank increased lending to agriculture by over 40 percent, and three out of every four projects included components to help smallholder farmers. The integrated rural development project became the prototype for this assistance. Rural development programs benefited millions of people, but still rural laborers and the landless benefited, at best indirectly. Institutional weaknesses, such as tenant and land reform, hindered progress, and progress was slowest where it was most needed – in Sub-Saharan Africa.
    McNamara also launched an attack on urban poverty, where he again attempted to raise the productivity of the poor. Urban assistance programs aimed at increasing employment opportunities, improving services, sites-and-service projects, squatter settlement programs, small-scale enterprise financing, and plans for basic services in transport, electricity, water supply, and education.
    McNamara also urged governments to meet the “basic human needs” of their populations. Despite annual growth, malnutrition was common, infant mortality high, life expectancy low, illiteracy widespread, unemployment growing, income distribution skewed, and the gap between the rich and poor countries was growing. He devised strategies to address specific needs: literacy, nutrition, reduction in infant mortality, and health. McNamara’s obsession to assist those in “absolute poverty” remained the backbone of his presidential tenure.
    McNamara urged developing countries to adjust their economic policies: change the pattern of use and production of energy, increase the production of food grains, and revise their policies of subsidized capital, overvalued exchange rates and excessive regulation. He also asked donor countries to actively support structural adjustment programs. He called for a fundamental reorientation of economic policies to accomplish higher savings and investment rates, greater efficiency in the domestic use of capital, and more emphasis on the private sector than he had previously advocated.
    Some executive directors objected to these programs: some did not see this short-term response as appropriate for an institution meant to support long-term investment; some felt uneasy at what they felt was an unwarranted intrusion by the Bank into a country’s economic policies. Support for structural adjustment was obtained only when the Bank assured the directors that this was to be a short-lived program to meet immediate needs. Structural adjustment operations subsequently became a major aspect of the Bank Group’s lending throughout the next decade

  142. Avatar Orungbemi Timothy Anuoluwapo 2018/241848 says:

    Between the year 1973 and 1980, McNamara the president of World Bank took the role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.
    The World Bank was, to McNamara, “an innovative, problem-solving mechanism…to help fashion a better life for mankind in the decades ahead.” The primary consideration driving the Bank was the needs of the developing countries. It was obvious that these countries required more assistance than they had been receiving, and he set out to make the Bank a “critical mass” of financial and technical power. McNamara realized that the Bank could not solve by itself the world’s problems; but it could provide leadership and the will to leverage the world’s resources for development.
    McNamara believed that there was a direct link between concerns about military security and economic development. For McNamara the threat of warfare was a consequence of the widening income gap between the industrial and developing countries. During the 1970s McNamara placed agricultural development at the centre stage and helped establish farsighted public strategy and public institutions at the global, regional and country levels. In Africa in 1975 the Bank was already financing a variety of well-motivated integrated projects in food and export crop production which relied on the Bank’s internal technical expertise on agriculture – staffed largely by experts with substantial experience and knowledge of colonial Africa. Unlike Asian countries which were too large for direct rule, and were largely administered by nationals, African countries lacked native capacity. Designed by expatriates, externally funded projects were based on external expertise. The projects often entailed extension of tried and trusted colonial approaches to service delivery in support of modes of small holder food and export crop production.
    USAID continued to make concurrent investments in Land Grant type universities, much as it did in Asia, in seed production and distribution systems. But the externally funded projects were too large and complex for the capacity of African countries to implement.

  143. Avatar Onyekwelu Collins Obinna says:

    Name: Onyekwelu Collins Obinna
    Reg No: 2018/251026
    Dept: Economics

    Robert McNamara, 5th President of the World Bank Group(1968 – 1981) eschewed the cautious, Wall Street-oriented approach of his predecessors. He adopted an aggressive mission that emphasized the claims and expectations of the Bank’s developing member countries. The needs of the developing world – not the need to satisfy the investment community – became paramount in determining the type and quantity of the Bank’s activities.

    By the 1970s, over 40% of people in developing countries lived in absolute poverty and, in response, the World Bank’s projects aimed to help the poor directly. World Bank President Robert McNamara coined the term “absolute poverty” in his 1973 Annual Meeting speech, and was the first to communicate the World Bank’s twin goals: “…to accelerate economic growth and to reduce poverty.” (World Development Report, 1978). These concepts transformed the Bank into the institution focused on development that we know today.

    Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into new sectors: environment, rural development, water, sanitation, education, and others. The global effort to eradicate river blindness is one example of how the Bank worked to improve the lives of the poor, which was different from the large infrastructure projects that were done in the Bank’s first 20 years. The first loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently built environmental safeguards into its process. During the 1970s economists were the primary advisers in the Bank, but staff with different skills in anthropology, sociology, environmental science and other sectors were hired to provide even more expertise to clients.

    The Bank that McNamara left in 1981 was completely transformed from the institution he had entered thirteen years earlier. It was a much larger organization, and much more complex. Its membership had continued to expand, and with the People’s Republic of China assuming full participation, it was well on its way to becoming a universal organization. The Bank began to address problems of income disparity and poverty. The Bank diversified into sectors of activity where progress was inevitably slow and unspectacular. And the Bank became more deeply involved in the economic and social conditions of its borrowers. It diversified its sources of funding, drawing from a growing number of international sources.

    McNamara’s role as a spokesman for the developing countries and the size and financial weight of the organization that he led assured the Bank a position of authority as intermediary between the rich and poor countries. The Bank played a critical role in many developing economies, and its coordination of aid with other donors greater increased the leverage it wielded. The strengthening of the research staff stimulated interaction with the academic community and allowed the Bank to claim a role as an intellectual leader in development matters.

  144. Avatar Okoye Chidimma Favour says:

    OKOYE CHIDIMMA FAVOUR
    chidimmafs700@gmail.com
    ECONOMICS EDUCATION
    ECO 362

    ASSIGNMENT:

    Between 1973 and 1980, the World Bank, led by Robert McNamara, became a significant actor in the push to address social welfare in developing countries. In his view, it was imperative (in light of the Cold War) for the World Bank to work with governments to eradicate absolute poverty in developing nations. Although project lending aimed at the development of infrastructure, industry, and agriculture still continued, the programs initiated during the McNamara era were directly aimed at the eradication of absolute poverty. The World Bank lent large sums to facilitate rural development, urban development, and development of small-scale industry and other critical programmes that had direct impact on the populace. Discuss

    DISCUSSION:

    The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The current president is David Malpass, the
    headquarter is in Washington, D.C., United States.
    Founded in July 1944, Bretton Woods, New Hampshire, United States.
    The World Bank Group provides financing, policy