Article Summary Essay Example | Topics and Well Written Essays - 750 words

Article Summary - Essay ExampleThe trust not just possesses the financial might but also has a brilliant team of experts who curb defined banks policies from time to time. Nobel laureate like Joseph Stiglit and prominent economists like Lawrence Summers have added to the happy capital of the bank.In spite of the major role played by the bank in planetary development, its financial might and the intellectual assets the bank has been criticized by the Right wing as hale as the Left wing for its functioning and this criticism is aimed at not just close the activities of the bank but has practically challenged the very existence of the bank.Revenue model of the bank involves selling bonds to investors in rich countries and receiving grants for raising the capital. While lending and soft lending to developing and underdeveloped countries complete the tax model. In 1996, the bank acknowledged that some of the parts of soft lending were unrecoverable. Left wing valued these debts to be written off by converting them to grants. Twice, in 1996 and 1999 the bank has ceded to these demands and partly written off the loans. However, on that point is another demand for completely writing off loans of 33 Highly Indebted Poor Countries (HIPCS). It is noted that some countries like Philippines and China have achieved growth from these soft loans and are yet to repay those loans. Writing-off much(prenominal) loans would mean big loss to the bank and reduced resources for future lending. In the past, bad debts of the World entrust had been compensated by the aid from rich countries. Britain still favors the same model. However, the US wants all the debts to be reborn into grants. Under the US pressure, the soft loan fund is being converted into grant fund since 2003 and it is forecasted that by 2035, this fund will be reduced to just 10% of its present size. With no new advocate coming from the rich countries, this