Mali and the World Bank

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Map of Mali Mali carte-sv.png
Map of Mali

Mali joined the World Bank Group in 1963 after they gained their independence from France in 1960. They are a low-income country with 41.3% of their population living under the poverty line in 2019. [1] Additionally, Mali is a landlocked country whose economy is vulnerable to changes in climate. [2] Thus, Mali has relationships with the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporations (IFC), and the Multilateral Investment Guarantee Agency (MIGA). In 2019, the IBRD and IDA committed to lending 500 million US dollars to projects in Mali, a large jump from 2018, where only US$178 million was lent. [1] The bank group is currently involved in 30 projects in the region. [1] These projects focused on areas such as mining, cotton, climate change, good governance, and health. Since 2013, the World Bank Group has worked alongside their UN mission counterpart, MINUSMA (U.N. Multidimensional Integrated Stabilization Mission in Mali) to create stability and growth in the region. [3] The current World Bank Country Director for Mali is Soukeyna Kane. [4]

Contents

Resource Projects

Gold Mine in Mali Mine Mali MORILA PerspectieTombereau.jpg
Gold Mine in Mali

Mining Projects

Since the late 1990s, Mali’s economy has mainly been focused on gold mining. [5] Consequently, since this time the World Bank has funded projects to increase foreign investors in this sector. [5] The IDA has funded structural and good governance projects for the mines, including a recent US$40 million in June 2019. [6] The IFC is invested in the Sadiola mine as a shareholder. Given the World Banks involvement, the mine is required to follow certain IFC guidelines. In terms of the environmental impacts of mines, the World Bank provides required norms be followed. However they are self tested and reported by companies. [5]

Cotton Harvesting Harvesting African gold.jpg
Cotton Harvesting

Cotton Projects

Before the late 1990s, Cotton was the main industry of Mali under the Mali Company for Textile Development. [5] [7] It was majority owned by the Malian Government and had “guaranteed prices of 210 FCFA/kg." [7] The World Bank wanted to privatize the industry under 3-4 companies. [7] However, Mali paused discussions until 2008. In the early 2000s, the World Bank used the withholding of US$25 million to influence cotton privatization. [7] Additionally, World Bank environmental requirements related to fertilizers and pesticides in cotton agriculture have harmed farmers. [7]

Environmental Projects

Sahel forest near Kayes Mali Sahel forest near Kayes Mali.jpg
Sahel forest near Kayes Mali

Environmental regulations are often instituted as a component in other projects — such as mining or cotton projects. However, there are many cases in which the World Bank has gotten involved directly in environmental projects — especially in the realm of deforestation and mitigation of climate change.

Two Forestry Projects — one from 1979-1985 and one from 1986-1992 — were funded US$4.5 million and US$6.3 million respectively by the IDA and IBRD. [8] These projects centered on decreasing deforestation through tax reforms, national forest reforms, and increasing fuel wood. [8]

From 1993-2001, the National Agricultural Research Project was formed to connect agriculture research and technology to local farmers to mitigate agricultural output with declining natural resources. [9] US$20 million was committed to this project by the IDA and IBRD. [9]

In May 2019, the IBRD and IDA committed US$8.25 million for the Strengthening Climate Resilience Project to “improve...access to the country’s hydro-meteorological, early warning and emergency response services.” [10]

Good Governance Projects

Outside of prioritization, the World Bank has been involved in a number of good governance projects. This includes the Government Action Pan, Mali Poverty Reduction Strategic Framework, and the First Recovery and Governance Reform Support Operation. [11] In 2014, US$63 million was given to improve transparency, public sector spending, and accountability in the government. [3] Additionally, in the same year, the World Bank pushed Mali’s government to fire the ministers of defense, finance and investment, who were all involved in a corruption scandal. [3] In 2019, the World Bank supported decentralization and capacity efforts with the goal of facilitating “democratization and local participation in the management of public affairs in priority sectors such as health and education.” [12] This was done through a US$50 million grant. [12]

Voting Power

Mali is part of Cameroon's constituency. The constituency holds 3.74% of the total votes in MIGA, [13] 4.26% of the total votes in the IDA, [14] 1.33% of the total votes in the IFC, [15] and 2.03% of the total votes in the IBRD. [16] Independently, Mali's vote share is displayed in the chart below.

World Bank OrganizationTotal Subscription AmountPercent of Total SubscriptionsNumber of VotesPercent of Total Votes
International Bank for Reconstruction and Development (IBRD) [17] 1670.0724010.10
International Finance Corporation (IFC) [18] 4510.0212660.05
International Development Association (IDA) [19] ----624450.22
Multilateral Investment Guarantee Agency (MIGA) [20] 1.430.082690.17


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Honduras and the World Bank

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Vietnam and the World Bank Vietnams relationship with the World Bank

Vietnam joined the World Bank Group (WBG) on 21 September 1956. Before the mid-1980s, Vietnam was one of the world's least developed countries. A series of economic and political reforms launched in 1986, known as Đổi Mới, caused Vietnam to experience rapid economic growth and development, becoming a lower middle-income country. The World Bank (WB) has maintained a development partnership with Vietnam since 1993. As of 25 March 2019, it has committed a total of US$24 billion in loans, credits, and grants to Vietnam through 165 operations and projects, 44 of which are active as of 2019 and comprise US$9 billion . With an estimated extreme poverty rate below 3% and a GDP growth rate of 7.1% in 2018, Vietnam's economy continues to show fundamental strength and is supported by robust domestic demand and export-oriented manufacturing.

The relationship between Ethiopia and the World Bank was formalized on December 27, 1945.

In 1980, Djibouti became a member of the World Bank Group (WBG). The WBG includes five different organizations: 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). Accounting for more than thirteen thousand projects across 173 countries, the WBG is one of the main lending facilities of the world. The WBG works together with governments and private sectors in order to enhance countries efforts towards development and poverty reduction.

Democratic Republic of the Congo and the World Bank The DRCs relations with the World Bank

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South Korea and the World Bank

South Korea first joined the World Bank Group as a member in 1955. Over the years, South Korea manages to develop its economy in a successful and positive manner. The country now is a financial contributor to the World Bank to help other, rather than an aid recipient in the old days. Under the help and cooperation with the World Bank, South Korea became a rapid growth country in economy begin in the 1970s, and it now became a large shareholder of the institution to help out other developing countries.

Uganda joined the World Bank on September 27, 1963, along with the IBRD, IDA and IFC. It later joined the ICSID on October 14, 1966, and the MIGA on June 10th, 1992. Uganda also holds the chair for the 22 nation Africa Group 1 Constituency, headed by Anne Kabagambe. Uganda holds 0.07% of the vote in the IBRD while its constituency holds 1.92%. In the IFC, Uganda holds 0.05% of the vote while its constituency holds 1.31%. Uganda in the IDA holds 0.18% of the vote, while the Africa Group 1 Constituency commands 4%. In the MIGA, meanwhile, Uganda has 0.21% while its constituency holds 3.54% of the vote.

Jamaica first joined The World Bank Group (WBG) on the 21st of February, 1963, when the island nation became a member of The International Bank for Reconstruction and Development (IBRD), which lends to middle and low income nations. This occurred the same month as Jamaica joining the International Monetary Fund (IMF), and one year after declaring political independence. Since joining The World Bank, Jamaica has received in excess of $3 billion US Dollars in loans and grants. Jamaican Minister of Finance, Donald Sangster, led the Jamaican delegations to World Bank and International monetary Fund meetings between 1963 and 1966, while also serving as Governor of the World Bank and IMF. Sangster would go on to serve briefly as the Prime Minister of Jamaica.

Japan joined the World Bank Group in August 1952. Loans that were taken out by Japan focused on improving infrastructure, having electrical power generation, improving water, establishing basic industry development and improving transportation. Japan now is the second-largest creditor to the World Bank, and in 1970 established an office in Tokyo.

Paraguay and the World Bank

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Belarus and the World Bank

The World Bank Group is a large international financial institution that continuously provides loans and grants in order to fund capital projects in poor and developing nations across the globe. Its' main goal is to reduce poverty worldwide. It consists of five other large international financial banks within in, each providing funding for different types of projects. Belarus joined the World Bank back in 1992 and has since then received over $2.5 billion in lending commitments since then and in the form of grant financing, it has received $31 million, with much of this funding going towards programs that include civil society partners. Currently, Belarus's active portfolio within the World Bank has a total of $933 million, with it containing a total of nine different projects, as well as two more projects that are currently still in preparation in the areas of energy efficiency and higher education. The majority of this funding has been directed towards the themes of pollution management and environmental health, climate change, and rural services and infrastructures, with the majority of the funding going directly into the central government, other agencies and extractives, and forestry sectors of the country, as well as sustainable energy. In looking to have more economic growth, improving the private sector environment within Belarus could help.

Ireland joined the World Bank on August 8, 1957, and has continued to be a member since then. A majority of the money loaned to Ireland from the World Bank was put towards infrastructure projects, such as power and education. Ireland was able to pay back these loans in the predetermined time frames with little to no issue.

References

  1. 1 2 3 "Overview". World Bank. Retrieved 2019-11-26.
  2. ↑ "The World Bank Group in Mali". web.worldbank.org. Retrieved 2019-11-26.
  3. 1 2 3 "Detail". www.bti-project.org. Retrieved 2019-11-26.
  4. ↑ "All Experts". World Bank. Retrieved 2019-11-26.
  5. 1 2 3 4 Mining in Africa: Regulation and Development. Pluto Press. 2009. ISBN   978-0-7453-2939-0.
  6. ↑ "World Bank Supports Governance of Mali's Mining Sector". World Bank. Retrieved 2019-11-26.
  7. 1 2 3 4 5 TOUSSAINT, ERIC; Anne, Elizabeth; Briault, Vicki; Declercq, Bertrand; Dhar, Sushovan; Harris, Judith; Krishnan, Raghu; Lagatta, Marie; Pagnoulle, Christine (2008). The World Bank: A Critical Primer. Pluto Press. ISBN   978-0-7453-2713-6.
  8. 1 2 "Forestry Project". World Bank. Retrieved 2019-11-26.
  9. 1 2 "National Agricultural Research Project". World Bank. Retrieved 2019-11-26.
  10. ↑ "Strengthening Climate Resilience in Mali Project". World Bank. Retrieved 2019-11-26.
  11. ↑ "World Bank Supports Mali Recovery and Governance Reform". World Bank. Retrieved 2019-11-26.
  12. 1 2 "Mali: World Bank Supports Decentralization by Scaling Up Resource Deployment and Capacity Development in Local Governments". World Bank. Retrieved 2019-11-26.
  13. ↑ "MULTILATERAL INVESTMENT GUARANTEE AGENCY VOTING POWER OF DIRECTORS". The World Bank. 2019-12-04. Retrieved December 10, 2019.
  14. ↑ "INTERNATIONAL DEVELOPMENT ASSOCIATION VOTING POWER OF EXECUTIVE DIRECTORS" (PDF). The World Bank. 2019-12-04. Retrieved 2019-12-10.
  15. ↑ "INTERNATIONAL FINANCE CORPORATION VOTING POWER OF DIRECTORS" (PDF). The World Bank. 2019-12-04. Retrieved December 10, 2019.
  16. ↑ "INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT VOTING POWER OF EXECUTIVE DIRECTORS" (PDF). The World Bank. 2019-12-04. Retrieved December 10, 2019.
  17. ↑ ""INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SUBSCRIPTIONS AND VOTING POWER OF MEMBER COUNTRIEs"" (PDF). The World Bank. Retrieved December 10, 2019.
  18. ↑ ""INTERNATIONAL FINANCE CORPORATION SUBSCRIPTIONS AND VOTING POWER OF MEMBER COUNTRIES"" (PDF). The World Bank. Retrieved December 10, 2019.
  19. ↑ "INTERNATIONAL DEVELOPMENT ASSOCIATION VOTING POWER OF MEMBER COUNTRIES" (PDF). 2019-09-20. Retrieved December 10, 2019.
  20. ↑ "MULTILATERAL INVESTMENT GUARANTEE AGENCY SUBSCRIPTIONS AND VOTING POWER OF MEMBER COUNTRIES" (PDF). The World Bank. September 20, 2019. Retrieved December 10, 2019.
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