Many traders may have heard of the World Bank Report. The World Bank is an international organisation which has two goals. The first is to end poverty. The second is to boost shared prosperity. Both of these goals are detailed in the Bank’s annual World Bank Report.
The World Bank Report covers the efforts of five organisations. These are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), The Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). The implications of the World Bank’s efforts and in particular the World Bank Report is discussed here.
The World Bank Report looks at the work the bank does across the six regions of the world. It includes full financial statements and lending data. The World Bank Report shows that poverty has declined at a rapid rate over the past 30 years. So it hopes that the world will be free from extreme poverty by 2030.
However, the World Bank Report highlights that in some countries social exclusion and inequality seems to be rising. Maintaining momentum in the reduction of poverty will only happen if many challenges are overcome. The Bank plans to work towards this aim by fostering income growth for the lower 40% of the population in developing countries. To do so, the Bank will have to invest in opportunities for citizens and to reduce inequality. All this and much more is detailed in the World Bank Report.
Another crucial component of the World Bank Report is the score the bank gives countries based on how easy it is to do business. Factors such as the ease with which a potential businessman or woman can open a business and how easy it is to pay taxes are used to judge the 189 countries involved. By doing so, the World Bank hopes to reward those countries who are working hard to increase economic growth and increase prosperity. The results are then correlated to create the World Bank Report.
In the 2013 ‘Doing Business’ part of the World Bank Report, Ukraine was the most improved country over the past year. Rwanda was the most improved since 2005. Singapore remained in first place for the 8th year in a row, closely followed by Hong Kong. The influence of the World Bank Report is clear to see, according to its writers. It has inspired around a quarter of the regulatory changes which can be tracked from 2003, the World Bank argues. However, some governments believe that the ratings are misleading or subjective. Clearly, the World Bank Report has been a source of much debate.
The answer to the question ‘How important is the World Bank Report?’ is a difficult one. Clearly many organisations around the globe will be interested in its findings. Knowing where they score on the scale of ease for setting up a business will be important for many countries. However, the actual implications of the World Bank Report’s far-reaching aims to eradicate poverty by 2030 remain to be seen.