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The Role of the World Bank in Post-War Iraq

The World Bank provides financing that supports efforts of developing country governments to build schools and health centers, provide water and electricity, fight disease, and protect the environment. (See worldbank.org) Composed of five organizations (IBRD, IDA, IFC, MIGA and ICSID), the World Bank Group is not a "bank" in the common sense. It is one of the United Nations' specialized agencies, and is made up of 184 member countries.

Many people will look to the World Bank to help rebuild Iraq after Saddam Hussein is taken out of power. "The reconstruction of Iraq following the war could cost more than $100 billion," says Mark Gongloff, writer for CNN/Money staff, "making it the most expensive rebuilding effort since World War II." (Rebuilding Iraq) Financing for the reconstruction may be done primarily through the World Bank and the International Monetary Fund (IMF).

However, many critics believe that would be a big mistake. Critics attack the World Bank's track record saying that after 59 years they have yet to have any success stories, and that Iraq would be better off not to rely on their aid or advice. They believe the World Bank and IMF go too far in forcing privatization and open trade, in forcing high tax rates, and in establishing an unhealthy reliance on foreign aid, all of which policies have given disastrous results. (See Article on Rebuilding Iraq)

Leaving the reconstruction of post-war Iraq entirely in their hands may not be the best answer, but even its critics can agree that the World Bank could be a big help in relieving Iraq of some its debts, as well as funding education and health care projects.

World Bank Ready to Rebuild Iraq

IMF, World Bank Pledge Help for Postwar Iraq

World Bank, IMF Teams to Assess Costs for Rebuilding

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Copyright, Brad Parker, 2003.