Chapter Two. the Origin of the World Bank
CHAPTER TWO. THE ORIGIN OF THE WORLD BANK. CHAPTER TWO THE ORIGIN OF THE WORLD BANK 2.1 AN INTRODUCTION TO THE WORLD BANK The International Bank for Reconstruction and Development (IBRD) is an institution, which was formed after the devastation of the economies of Europe, According to Harry Dexter White “No matter how long the war lasts nor how it is won, we shall be faced with three inescapable problems: to prevent the disruption of foreign exchange and the collapse of monetary and credit system to assure the restoration of foreign trade and to supply the huge volume of capital that will be needed virtually throughout the world for reconstruction, for relief and for economic recovery” 1. The idea of reconstruction was the first to be conceived, focusing only the involved allies in the war and not the rest of less developed countries. Together with its sister institution, the International Monetary Fund (IMF), they were established 2. By December 31, 1945, 29 countries had approved the bank’s Articles of Agreement. In March 1946, the board of governors of the World Bank and the International Monetary Fund were inaugurated in Savannah, where they adopted the institutions’ statute and elected the bank's executive directors. The board first met on May 7, 1946. The bank’s first president, Eugene Meyer, took office on June 18, and the bank opened its world headquarters at 1818 H Street, NW, Washington, DC, on June 25 1 946. They are what have come to be known as Bretton Woods institutions. But, later there was a greater need for the 73 IBRD to widen its goal by thinking beyond reconstruction.
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