Poorer Nations get Larger Role in World Bank

http://www.nytimes.com/2010/04/26/business/26bank.html?ref=economy

Key Terms:

-The World Bank:An international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.

-Capitol: Any source of power, advantage, profit etc.

-Callable: Subject to payment on demand, as money loaned.

Description:
& Explanation
Since 1988 members of the World Bank issued the largest increase in capital increase by $5.1 Billion. The large increase help anti-poverty economies assist those in poverty and decrease the large rate of poverty. Brazil, India, Indonesia and Vietnam, have increased their capital power with the large increase. The increase was strained however due to the economic hardships that wealthier nations are facing( America, China, and Germany. The increase has brought the World's Bank to a 40 Billion dollar balance. There is a major concern with the climate change and the World Bank wants to invest in the earth by investing in those who live on it. They also want to prepare for disasters since there has been a great number of natural disasters in the past year.

Analysis:
The whole economy of the world is suffering, however America's drop has affected the rest of the world a great deal. The World Bank realizes that it needs to spend its money in the most efficient way as possible or the world could suffer a great deal as a whole.“A lot of growth is coming from the developing world, and so the financing we do in the developing world is now beyond charity and social solidarity — it’s a question of self-interest,” he said. “They have become sources of demand.” The delveloping nations have boosted our economy and their contribution in such a rough economical time is worth the Bank's investment.

Prediction:
I hope the World Bank really spends the money how they said they would. I could not find much information that broke down the budgeting of the World Bank but I think that the fact that there is a world bank is a little self-assuring.