The Analysis On Determinants Of The World Bank Loan

The World Bank is the world’s most influential multilateral development finance institution, With the development of world economy, the World Bank’s mission gradually changed from helping European countries to promote post-war reconstruction to through close coordination and cooperation with the International Development Association, and other members of the organization to achieve the goal of poverty reduction in developing countries. The World Bank primarily achieves these goals by providing loans and other forms of financial products and services.Since the establishment in 1945 of the Bretton Woods system, the US has come out on top in the international financial system. By the United States involved in the creation, whether IMF, the World Bank and other multilateral financial institutions such international or Inter-American Development Bank, the Asian Development Bank, the regional multilateral financial institutions, mostly in the beginning of the creation reflects the will of the United States and other developed countries, but by the degree of control the United States is different, relatively speaking, international multilateral institutions with greater independence. On the world’s largest multilateral development institutions-the World Bank, along with China and other emerging countries and developing strength, the status of its internal organization of the Member States accordingly changing, but does that mean, as the world banks, by self, which made lending decisions have full independence? This is also the focus of this study and the characteristics, namely the World Bank as an administrative and bureaucratic, first, examine the right to vote, the right to vote means that States and the closeness of the relationship of the Bank for each Bank’s borrowing countries; second, the proportion of each borrower along with the United States to vote in the General Assembly, as a political proximity to the United States. On these two political variables included in the empirical analysis, from a political perspective of the Bank’s lending decision is "non-political" in. According to the empirical results of this test, the answer is no-the World Bank loans when borrowers do not have complete independence, is still a certain degree of control by the United States.In addition, the World Bank lending to explore the determinants of economic terms is essential. In accordance with the relevant provisions of the World Bank for a loan application, for the purposes of the borrowing country, its economic situation and its possible application and the type and amount of loans obtained are closely related, at the same time, given the right to vote constituted a special way, countries the right to vote the share of the votes is done by the member States pledged to raise income from shares, voting rights and therefore also the reaction of a country’s economic level to some extent. The empirical results show that countries with low levels of economic development and the right to vote will be easier to get a loan Bank.Finally, though the study of the World Bank’s lending procedures, decision-making, experience and lessons learned, the paper also attempts to put forward reasonable proposals to the Asian Infrastructure Investment Bank which is established by China and just opened.