World Bank to Increase Funds that will be Used for Development
The world bank is planning to increase their funds for development by 40 percent year on year in the next ten years as part of their first ever realignment since 1997. The institutions president Jim Yong Kim stated that the development lender will be focusing on ten countries that is said to be the home to 80 percent of the world’s extremely poor residents who live by not more than US$ 1.25 a day.
Furthermore the bank’s commitment must grow to around US$ 70 billion a year for the next ten years as the world’s development needs is more than the World Bank Groups abilities in addressing them. During the meet at the World Bank and the International Monetary Fund the bank will then present its increased financial capabilities. The growth in the bank lending and investment is a guarantee along with budget and staff cuts which are part of a planned massive reorganization done by Kim after assuming the position two years ago. Kim is hoping that these reforms will be more relevant especially to middle income countries.
The growth in the bank’s lending and investment guarantees, alongside planned staff and budget cuts, are part of a massive reorganization Kim launched after he assumed his post nearly two years ago. He hopes the reforms will make the institution more relevant, especially to middle-income countries.