A.

The History of World Bank:

The World Bank is an international financial organization offering grants and loans to
disadvantaged-country governments with the intent of development projects. The International
Bank for Reconstruction and Development, and the International Development Association are
the two institution making up the World Bank. Established in 1944, at the Bretton Woods
Monetary Conference in Bretton Woods, New Hampshire, the World Bank’s pioneering purpose
is to help reconstruct European countries ravaged by World War II. In 1947, the first loan for
post-war reconstruction was to France. But soon after that, there came more financial supports
from other banks and so their focus shifted to the other countries in Latin America, Africa and
Asia. The Bank's primary emphasis in the 1950s and 60s was financing major infrastructure
projects such as dams, power grids, irrigation systems, and highways. Member countries have
increasingly requested the technical assistance work of the Bank, which provided countries with
the technological tools and training required to make efficient use of the bank's loans.
For almost 80 years, the World Bank Group has become a catalyst in global economic
development and poverty reduction but has also worked in association with or in support of other
governments, institutions and organizations sharing its objectives. The World Bank Group’s
history is thus one of transition, growth and renewal.
B. The History of World Bank’s Influence on the ASEAN Economic Community:
Around the 1970s to the 1980s, the primary focus of the World Bank shifted to the
eradication of poverty and helping people meet the basic needs in lesser fortunate countries for
the development of the world. The World Bank loaned ASEAN and other Asian countries for
their development but at the same time, this also caused a surge on the Third World Debt. The
developing world debt even rose 20% of an average annual rate in 1976 to 1980.
The World Bank in the recent years encourages the investment in the ASEAN member
counties’ human capital development. The World Bank’s global Human Capital Project is an
accelerated effort to evaluate progress in countries as well as serving as a strategic support for
countries that want to invest effectively in their people. They promote the investment in people
to build human capital, stating that this could be achieved through proper nutrition, quality
health-care, education and skills for the people. They believe that improving this aspects will
lead to a higher quality of life for everyone and in turn, would drive sustainable and inclusive
economic growth.