The World Bank as an Instrument of American Foreign Policy
- January 27th, 2020
- in Capstone Commentary
by Claire Faivre
Established in 1944 as a pillar of the Bretton Woods system for European post-war reconstruction, the World Bank’s mission and member base has since evolved to become a fundamental player among international economic institutions. The employment of a weighted voting system that allocates voting power according to member countries’ contribution to the Bank’s capital stock, accompanied by the traditional control over the Bank’s presidency, and the physical location of the Bank itself in the US capital, are considerations consistent with the claim that the World Bank has been effectively captured by the United States. Nowhere is the case of the World Bank’s capture and subsequent use as an instrument of American foreign policy more apparent than the Bank’s mid 20th century missions in Latin America.