Blog #8: World Bank increases loan capacity to $300bn

Summary:The World bank has just recently agreed to an increased loan amount to assist impoverish countries in their times of need. This will all happen over the next decade, and this is happening to adapt to the changing world. In a meeting with the International Monetary Fund, Jim Yong Kim stated that the World Bank is doing this in efforts to end extreme poverty by the year of 2030. The bank has undergone a serious amount of restructuring in order to prepare for this great change, and one of those changes is being able to double the amount of money that they are able to give to middle income countries. The bank is also looking to cut unnecessary fund out in order to increase the amount of money that they can save. They will share prosperity between the lowest 40% of developing countries, but while focusing on them, they will not overlook the others that need help as well. They will insure a strategy that ensures that no country is left behind.

Analysis:
This is great news to hear that the World Bank is putting forth effort to help get countries out of poverty. They acknowledge that 2/3 of the worlds most impoverished people are all gathered in just 5 countries, but they also note that these are not the only people that need help. With loan capacity being raised, this could possibly help people get out of poverty faster, but what about the amount of debt that countries are putting themselves in as they accept a higher amount of money. Maybe, as they get these loans from the World Bank, they will create more jobs for their citizens and consequently these citizens can work to help build the economy and finally the end result will be the countries generating enough funds to pay these loans off. But, if the countries don't spend their loan amount wisely, then this calls food disaster. I am in hope that the people who are in charge of distributing funds, have a well planned out budget and have the authority to carry those plans out. If they have great leadership, it will take them, hopefully, a shorter amount of time to implement their plans as opposed to if they have people who don't know what they are doing that are in authority.

 http://www.publicfinanceinternational.org/news/2014/04/world-bank-increases-loan-capacity-to-300bn/

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