Globalization and the Role of World Bank

Role of Globalization

Shouldn't we all treat globalization as a challenging opportunity? Globalization means increased interconnectivity and interdependence with the economies of the entire world. It encompasses international trade, investment, and finance – helping in augmenting the national incomes of economies. Technologies got transferred in a manner that fostered better communication. It also speaks of the global environment, crime, violence, and terrorism, untapped potential across economies and employment opportunities that led to better economic integration. Globalization also speaks of the dreaded financial crunch, fear among workers to loose jobs and issues alike.

Dual side of Globalization

Globalization is all about risks and opportunities, which should be managed at the national level by a strong social, structural, and financial system. Globally, there is a need to establish a strong international financial architecture and get rid of the challenges thrown open to us. This is where globalization and role of World Bank cannot be denied.

Role of the World Bank in Globalization

Low-Income Countries – Debt relief would be given to the low income countries and the process should get going vigorously. It is here that the World Bank has a vital role to play by working with governments and ensure strong governance, effective judicial systems, and a robust financial system. All these would help fight corruption. If these initiatives are not taken, attracting foreign and domestic investment would be difficult and thus globalization shall fall back upon us.

Middle-Income Countries – Statistically, 80% of the world's poor live in middle-income countries. These are the countries which require utmost help for a strong financial stability. For that, the structural and social reforms should be in place for the next stage of development. The mission of tackling global poverty is the main agenda and the only important tool to achieve overall development.

World Bank is focusing on –

• Secure long-term funding
• Give advisory services
• Create the right policy and institutional framework
• Address weaknesses in the social, structural, and sectoral policies

Future of globalization and World Bank's role

In next 25 years, the population of the entire world would go up by 2 billion to a figure of 8 billion people. The 98% of the surge in population would be in the developing countries. In 2008, more than 47% of the global population lived in urban areas. By 2020, 4.1 billion, or 55% would be living in urban areas. The World Bank is now aiming at maintaining parity in education and is also aiming at achieving the gender equality goals.

We all must work towards building up a commitment towards global poverty reduction. After all, the benefits of globalization should be harnessed for delivering prosperity to the nations.

Last Updated on 5/18/2011