The World Bank has long been criticised by non governmental organisations, such as the indigenous rights group Survival International, and academics, including its former Chief Economist Joseph
Stiglitz, Henry Hazlitt and Ludwig Von Mises. Henry Hazlitt argued that the World Bank along with the monetary system it was designed within would promote world inflation and "a world in which international trade is State-dominated" when they were being advocated Stiglitz argued that the so-called free market reform policies which the Bank advocates are often harmful to economic development if implemented badly, too quickly ("shock therapy"), in the wrong sequence or in weak, uncompetitive economics. One of the strongest criticism of the world Bank has been the way in which it is governed. While the Word Bank represents 188 countries, it is run by a small number of economically powerful countries. These countries (which also provide most of the instituiton’s funding) choose the leadership ans senior management of the World Bank, and so their interests dominate the bank. The unequal voting power of western countries and the World Bank’s role in developing countries makes or similar to the South African Development Bank under apartheid, and therefore a pillar of global apartheid. In the 1990 s, the World Bank and the IMF forged the Washington Consensus, policies which included deregulation and liberalisation of markets, privatisation and the downscaling of government.
Though the Washington Consensus was conceived as a policy that would best promote development, it was criticized for ignoring equity, employment and how reforms like privatisation were carried out. The Washington Consensus placed too much emphasis on the growth of GDP, and not enough on the permanence of growth or on whether growth contributed to better living standards. The United States Senate Committee on Foreign Relations report criticised the World Bank and other international financial institutions for focusing too much "on issuing loans rather than on achieving concrete development results within a finite period of time" and called on the institution to "strengthen anti-corruption efforts". Criticism of the World Bank often takes the form of protesting as seen in recent events such as the World Bank Oslo 2002 Protests, the October Rebellion, and the Battle of Seattle. Such demonstrations have occurred all over the world, even amongst the Brazilian Kayapö people. Another source of criticism has been the tradition of having an American head of the bank, because the United States provides the majority of World Bank funding. "When economists from the World Bank visit poor countries to dispense cash and advice," observed The Economist in 2012, "they routinely tell governments to reject cronyism and fill each important job with the best candidate available. It is good advice. The World Bank should take it."
1. Which of the following is/are the reasons of World Bank's criticism?
(a) The way in which the World Bank is governed.
(b) The immunity which the World Bank requires to conduct its work in fair manners.
(c ) It is supposed that the World Bank is a pillar of global apartheid.
1) only (A)
Stiglitz, Henry Hazlitt and Ludwig Von Mises. Henry Hazlitt argued that the World Bank along with the monetary system it was designed within would promote world inflation and "a world in which international trade is State-dominated" when they were being advocated Stiglitz argued that the so-called free market reform policies which the Bank advocates are often harmful to economic development if implemented badly, too quickly ("shock therapy"), in the wrong sequence or in weak, uncompetitive economics. One of the strongest criticism of the world Bank has been the way in which it is governed. While the Word Bank represents 188 countries, it is run by a small number of economically powerful countries. These countries (which also provide most of the instituiton’s funding) choose the leadership ans senior management of the World Bank, and so their interests dominate the bank. The unequal voting power of western countries and the World Bank’s role in developing countries makes or similar to the South African Development Bank under apartheid, and therefore a pillar of global apartheid. In the 1990 s, the World Bank and the IMF forged the Washington Consensus, policies which included deregulation and liberalisation of markets, privatisation and the downscaling of government.
Though the Washington Consensus was conceived as a policy that would best promote development, it was criticized for ignoring equity, employment and how reforms like privatisation were carried out. The Washington Consensus placed too much emphasis on the growth of GDP, and not enough on the permanence of growth or on whether growth contributed to better living standards. The United States Senate Committee on Foreign Relations report criticised the World Bank and other international financial institutions for focusing too much "on issuing loans rather than on achieving concrete development results within a finite period of time" and called on the institution to "strengthen anti-corruption efforts". Criticism of the World Bank often takes the form of protesting as seen in recent events such as the World Bank Oslo 2002 Protests, the October Rebellion, and the Battle of Seattle. Such demonstrations have occurred all over the world, even amongst the Brazilian Kayapö people. Another source of criticism has been the tradition of having an American head of the bank, because the United States provides the majority of World Bank funding. "When economists from the World Bank visit poor countries to dispense cash and advice," observed The Economist in 2012, "they routinely tell governments to reject cronyism and fill each important job with the best candidate available. It is good advice. The World Bank should take it."
1. Which of the following is/are the reasons of World Bank's criticism?
(a) The way in which the World Bank is governed.
(b) The immunity which the World Bank requires to conduct its work in fair manners.
(c ) It is supposed that the World Bank is a pillar of global apartheid.
1) only (A)
2) Only (B)
3) Only (C)
3) Only (C)
4) only (A) and (B)
5) Only (A) and (C)
2. Why did the Brazilian Kayapo people participate in demonstration, as mentioned in the passage?
(a) To launch protest against loan policy of the world Bank.
(b) To demand high remuneration for Bank employees.
(c) To oppose the appointment of head of the World Bank
1) Only (A) and (B)
5) Only (A) and (C)
2. Why did the Brazilian Kayapo people participate in demonstration, as mentioned in the passage?
(a) To launch protest against loan policy of the world Bank.
(b) To demand high remuneration for Bank employees.
(c) To oppose the appointment of head of the World Bank
1) Only (A) and (B)
2) only (B) and (C)
3) only (A) and (C)
3) only (A) and (C)
4) Only (A)
5) only (B)
3. Which of the following statements is false according to the given passage?
1. The Washington consensus placed too much emphasis on the growth of the GDP.
2) Free market reform policies advocated by the Bank are often harmful to economic development if implemented badly.
3) A small number of economically powerful countries run the world Bank.
4) As the United States has veto power, it can prevent the World Bank from taking actin against its interests.
5) None of these
4. According to the Passage what was the observation of “The Economist”?
1. All the economists of developed countries favoured the inclusion of the third world countries in bank’s economic development forum.
2. Economists visiting poor countries more often than not advice governments to reject cronyism.
3. Majority of the economists in the world bank are usually Americans, because America does majority of funding.
4. All the economists of the World Bank usually are Americans, because America does the majority of funding.
5. Economists from poverty ridden countries are usually less attentive to their loan requirements.
5. Which of the following happened when Washington Consensus was envisaged?
(A) Liberalisation of markets
(B) Employment
(C) Privatization and downscaling of government
5) only (B)
3. Which of the following statements is false according to the given passage?
1. The Washington consensus placed too much emphasis on the growth of the GDP.
2) Free market reform policies advocated by the Bank are often harmful to economic development if implemented badly.
3) A small number of economically powerful countries run the world Bank.
4) As the United States has veto power, it can prevent the World Bank from taking actin against its interests.
5) None of these
4. According to the Passage what was the observation of “The Economist”?
1. All the economists of developed countries favoured the inclusion of the third world countries in bank’s economic development forum.
2. Economists visiting poor countries more often than not advice governments to reject cronyism.
3. Majority of the economists in the world bank are usually Americans, because America does majority of funding.
4. All the economists of the World Bank usually are Americans, because America does the majority of funding.
5. Economists from poverty ridden countries are usually less attentive to their loan requirements.
5. Which of the following happened when Washington Consensus was envisaged?
(A) Liberalisation of markets
(B) Employment
(C) Privatization and downscaling of government
l) Only (A) and (B)
2) only (B) and (C)
3) only (A) and (C)
3) only (A) and (C)
4) All (A), (B) and (C)
5) None of these
5) None of these
