Does the U.S. control the World Bank?
As the only World Bank Group shareholder that retains veto power over certain changes in the Bank's structure, the United States plays a unique role in influencing and shaping global development priorities.
The United States' right of veto at the World Bank
From its beginnings till today, the US is the only country to have a de facto right of veto at the World Bank. With the creation of the Bank, the US had 35.07% of the voting rights [17]; since the last modification of voting rights, they enjoy 15.51% [18].
The organizations that make up the World Bank Group are owned by the governments of member nations.
Technically the World Bank is part of the United Nations system, but its governance structure is different: each institution in the World Bank Group is owned by its member governments, which subscribe to its basic share capital, with votes proportional to shareholding.
The World Bank was established in 1944 to help rebuild Europe and Japan after World War II. Its official name was the International Bank for Reconstruction and Development (IBRD).
The United States has the largest financial commitment to the IBRD, accounting for 16.69% of total IBRD resources. U.S. paid-in capital is $3.5 billion and U.S. callable capital is $47.8 billion.
THE WORLD BANK MANDATE
World Bank assistance is generally long-term and is funded by member country contributions and by issuing bonds.
India takes the top spot. Its $39.7bn debt towards the WB recorded at the end of 2021 is double that of the next biggest debtor, Indonesia, with $19.6bn.
China originally joined the World Bank Group (WBG) on December 27, 1945. However, after the Chinese Civil War, the World Bank recognized the Republic of China as its member, until the relationship ended in 1980, when the membership was replaced by the People's Republic of China.
The five United Nations member states that are not members of the World Bank are Andorra, Cuba, Liechtenstein, Monaco, and North Korea. Kosovo is not a member of the UN, but is a member of the IMF and the World Bank Group, including the IBRD and IDA.
What are the disadvantages of the World Bank?
Lack of Transparency and Accountability: The World Bank has also been criticized for its lack of transparency and accountability. Critics argue that the Bank has not been transparent in its decision-making processes, and that it has not adequately engaged with civil society and other stakeholders in its operations.
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
The IMF is governed by and accountable to its member countries.
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
The United States has borrowed foreign currencies from the IMF on 28 different occasions, more than any other country.
In 2022, Israel and Ukraine topped the list of nearly 180 countries receiving funds globally. The latest pattern will be one to monitor going forward, with Israel embroiled in a war against the terror group Hamas in Gaza and Ukraine's defense against Russia now ongoing for approximately two years.
Since the Bank pays net salaries to U.S. citizens holding Regular, Open-ended and Term appointments, the Bank also provides these staff a "tax allowance" to help pay the federal, state, local, and Social Security taxes.
- Ukraine ($16.4 billion)
- Israel ($3.3 billion)
- Ethiopia ($1.95 billion)
- Jordan ($1.65 billion)
- Egypt ($1.43 billion)
- Afghanistan ($1.19 billion)
- Somalia ($1.13 billion)
- Yemen ($1.05 billion)
| # | Bank | TCRE to Equity |
|---|---|---|
| 1 | Dime Community Bank | 656.80% |
| 2 | First Foundation Bank | 598.20% |
| 3 | Provident Bank | 546.30% |
| 4 | Valley National Bank | 471.60% |
Which is the richest Bank?
President, World Bank Group
Ajay Banga began his five-year term as World Bank Group President on June 2, 2023. Ajay Banga most recently served as Vice Chairman at General Atlantic.
IBRD resources and financial model
IBRD is rated Aaa by Moody's and AAA by Standard & Poor's, and investors view its bonds as high-quality securities.
Singapore is one of Asia's major financial centers. It is also one of the most prosperous countries on the planet. And all this has been achieved without taking on any meaningful public debt. In fact, very much like Norway, Singapore has more assets than debt.
Top Foreign Holders of U.S. Debt
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt.
References
- https://www.archives.gov/exhibits/treasures_of_congress/text/page9_text.html
- https://www.investopedia.com/articles/investing/041515/why-federal-reserve-independent.asp
- https://www.forbes.com/advisor/banking/safest-banks-in-the-us/
- https://www.pbs.org/wgbh/americanexperience/features/establishing-national-bank/
- https://www.forbes.com/advisor/banking/most-popular-banks-by-state/
- https://www.goodreads.com/book/show/23366257-a-history-of-central-banking-and-the-enslavement-of-mankind
- https://www.piie.com/commentary/testimonies/international-monetary-fund-and-national-interests-united-states
- https://www.let.rug.nl/usa/essays/general/a-brief-history-of-central-banking/the-first-bank-of-the-united-states-(1791-1811).php
- https://www.federalreservehistory.org/essays/first-bank-of-the-us
- https://billofrightsinstitute.org/essays/alexander-hamilton-and-the-national-bank
- https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-banks
- https://www.federalreservehistory.org/essays/second-bank-of-the-us
- https://www.bu.edu/articles/2023/why-are-banks-failing-does-that-signal-another-financial-crisis/
- https://www.federalreserve.gov/faqs/about_12594.htm
- https://www.forbes.com/advisor/banking/list-of-failed-banks/
- https://www.cfr.org/backgrounder/what-us-federal-reserve
- https://www.usbank.com/investing/financial-perspectives/market-news/federal-reserve-tapering-asset-purchases.html
- https://en.wikipedia.org/wiki/First_Bank_of_the_United_States
- https://concernusa.org/news/foreign-aid-by-country/
- https://www.kansascityfed.org/about-us/frequently-asked-questions/
- https://www.history.com/topics/us-government-and-politics/bank-of-the-united-states
- https://www.marketwatch.com/guides/banking/largest-banks-in-the-us/
- https://finance.yahoo.com/news/15-biggest-bank-failures-us-184142673.html
- https://en.wikipedia.org/wiki/List_of_largest_banks_in_the_United_States
- https://en.wikipedia.org/wiki/China_and_the_World_Bank
- https://quizlet.com/explanations/questions/who-oversees-the-federal-reserve-system-a-congress-b-the-president-of-the-united-states-c-the-federa-30f4ecef-f688-4e02-b37a-97d2f1fe20b8
- https://www.federalreserve.gov/monetarypolicy/publications/mpr_default.htm
- https://www.nps.gov/articles/000/establishing-the-first-bank.htm
- https://en.wikipedia.org/wiki/World_Bank_Group
- https://pubdocs.worldbank.org/en/430251375284206438/Tax0Booklet.pdf
- https://www.unsw.edu.au/newsroom/news/2023/12/bank-bashing-is-a-popular-past-time--but-is-it-justified-
- https://www.investopedia.com/articles/investing/081415/understanding-how-federal-reserve-creates-money.asp
- https://www.npr.org/2023/05/04/1173488958/silicon-valley-bank-signature-first-republic-bank-failures
- https://www.richmondfed.org/publications/research/econ_focus/2023/q2_economic_history
- https://www.federalreserve.gov/aboutthefed/files/the-fed-explained.pdf
- https://www.worldbank.org/en/about/people/a/ajay-banga
- https://www.noradarealestate.com/blog/is-bank-of-america-in-trouble/
- https://www.worldbank.org/en/news/feature/2012/07/26/getting_to_know_theworldbank
- https://en.wikipedia.org/wiki/List_of_largest_banks
- https://www.moneycrashers.com/number-banks-us/
- https://crsreports.congress.gov/product/pdf/IF/IF11361
- https://www.tutor2u.net/economics/blog/time-to-rethink-how-the-world-bank-operates
- https://apnews.com/article/business-financial-services-signature-bank-6aa3564a8acda9098929abe4741fcbfd
- https://www.gilderlehrman.org/history-resources/lesson-plan/battle-over-bank-hamilton-v-jefferson
- https://www.cadtm.org/Domination-of-the-United-States-on-the-World-Bank
- https://www.usnews.com/news/best-countries/articles/countries-that-receive-the-most-foreign-aid-from-the-u-s
- https://homework.study.com/explanation/why-did-jacksonian-democrats-oppose-the-national-bank.html
- https://www.federalreserve.gov/aboutthefed/structure-federal-reserve-board.htm
- https://www.richmondfed.org/faqs/fr
- https://www.history.com/this-day-in-history/andrew-jackson-shuts-down-second-bank-of-the-u-s
- https://www.imf.org/en/About
- https://guides.loc.gov/this-month-in-business-history/february/first-bank-united-states-chartered
- https://en.wikipedia.org/wiki/Structure_of_the_Federal_Reserve_System
- https://edsitement.neh.gov/sites/default/files/2018-08/LessonThree03.pdf
- https://constitutioncenter.org/the-constitution/historic-document-library/detail/andrew-jackson-bank-veto-message-1832
- https://www.worldbank.org/en/about/annual-report/our-organization
- https://www.forbes.com/advisor/banking/black-owned-banks/
- https://en.wikipedia.org/wiki/Federal_Reserve
- https://www.fdiintelligence.com/content/data-trends/the-world-banks-top-10-biggest-debtors-82044
- https://www.frbsf.org/research-and-insights/publications/doctor-econ/2003/09/private-public-corporation
- https://en.wikipedia.org/wiki/Democratic-Republican_Party
- https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-federal-government
- https://www.moaf.org/exhibits/fed/system/chairman
- https://www.imf.org/en/About/Factsheets/Sheets/2022/IMF-World-Bank-New
- https://www.clearfinances.net/countries-without-public-debt/
- https://www.cga.ct.gov/PS95/rpt/olr/htm/95-R-1200.htm
- https://www.minneapolisfed.org/article/2007/the-bank-that-hamilton-built
- https://saylordotorg.github.io/text_money-and-banking-v2.0/s17-01-america-s-central-banks.html
- https://smartasset.com/personal-finance/is-my-money-safe-in-the-bank-during-a-depression
- https://integratedcashlogistics.com/bank-closures-news/
- https://www.forbes.com/advisor/banking/is-my-money-safe-in-the-bank/
- https://www.thestreet.com/personal-finance/biggest-bank-failures-in-us-history
- https://www.cbn.gov.ng/HistoryFactsAll.asp?sign=2&NAV=7
- https://www.bankrate.com/banking/what-happens-when-a-bank-fails/
- https://www.visualcapitalist.com/which-countries-hold-the-most-us-debt/
- https://en.wikipedia.org/wiki/Chair_of_the_Federal_Reserve
- https://www.yonkerspublicschools.org/cms/lib/NY01814060/Centricity/Domain/4975/The%20History%20of%20American%20Banking.pdf
- https://en.wikipedia.org/wiki/Criticism_of_the_Federal_Reserve
- https://www.quora.com/What-would-happen-if-the-U-S-didnt-have-a-federal-reserve
- https://www.worldbank.org/en/about/leadership/members
- https://www.neh.gov/humanities/2008/januaryfebruary/feature/king-andrew-and-the-bank
- https://en.wikipedia.org/wiki/World_Bank
- https://en.wikipedia.org/wiki/Jerome_Powell
- https://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit3_4.pdf
- https://www.worldbank.org/en/who-we-are
- https://www.clevelandfed.org/publications/economic-commentary/2007/ec-20071201-a-brief-history-of-central-banks
- https://safehavenvaults.com/how-to-protect-wealth-in-a-depression/
- https://www.insiderintelligence.com/content/concentration-vs-competition-us-4-000-banks-too-many-just-right
- https://www.newyorkfed.org/aboutthefed/history_article.html
- https://www1.udel.edu/htr/American/Texts/fed.html
- https://www.battlefields.org/learn/primary-sources/jeffersons-opinion-constitutionality-national-bank-1791
- https://www.cbsnews.com/news/is-my-money-safe-in-the-bank-2023/
- https://millercenter.org/the-presidency/educational-resources/bank-war
- https://www.worldbank.org/en/about/leadership
- https://www.investopedia.com/terms/b/bankrun.asp
- https://www.federalreserve.gov/aboutthefed/section7.htm
- https://www.bankrate.com/banking/largest-bank-failures/
- https://www.federalreserve.gov/monetarypolicy/May-2023-Federal-Reserve-Balance-Sheet-Developments.htm
- https://www.pbs.org/newshour/show/does-the-president-have-legal-authority-to-fire-the-fed-chair
- https://en.wikipedia.org/wiki/History_of_the_Federal_Reserve_System
- https://moneyguy.com/episode/how-many-americans-dont-have-1000-shocking-stat/
- https://scholarship.law.nd.edu/ndlr/vol96/iss1/1/
- https://www.investopedia.com/deposit-insurance-keeps-bank-accounts-safe-even-if-its-funding-runs-dry-7496229
- https://homework.study.com/explanation/can-the-vice-president-be-fired.html
- https://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=3&psid=214
- https://www.businessinsider.com/28-banks-with-the-highest-commercial-real-estate-risk-2024-3
- https://www.americanbanker.com/list/hall-of-shame-10-biggest-bank-failures
- https://www.riksbank.se/en-gb/about-the-riksbank/history/
- https://www.usnews.com/banking/articles/credit-union-vs-a-bank
- https://www.worldbank.org/en/about/unit
