Question

Why is accountability important when the World Bank provides loans to countries?

Answer 1

Hi,

Hope you are doing well!

Question:

Answer:

The World Bank is an apex international financial institution that provides loans and grants to the government of the developing and poor countries globally for the purpose of pursuing capital projects. The world bank help to the in socio-economic development and boost economic development. Loans that are provided by the world have specific objective. May be the loan is given for infrastructue development, enviornment protection, helping in BOP deficit etc. Other side it is the core moral responsiblities of the borrowing countries to justify and take responsibilities to implemention of the action taken by the WB or helping to the world bank and cooprate with the world bank. Suppose the WB has provided loan for infrastructure develeopment for a contry XYZ. Then it is the core moral responsibility of the country XYZ to utilize the fund for the same purpose and use it efficiently. It is the responsibility of the XYZ country is to coordinate and cooperate with the WB and fully utilize the fund for the same objective or purpose honestly with no leakage. The numer of researches find that international funding or support increase corruption in the borrowing countries and there is a lack of communication or coordination between borrowing country and WB. These problem harm the objective or pupose of lending and misutilize of the fund. It is also the fresponsibility of the borrowing country to fulfill the terms and conditions that is attached with WB lending.

Thank You