World Bank and Keynesian Economics
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Date
2019
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Abstract
The World Bank is an international development and financial institution,which was founded with the name of International Reconstruction and DevelopmentBank and based within the United Nations, offers customized resources, developmentprescriptions, consultancies and loans to countries in various parts of the world. Thelargest part of the World Bank group is the World Bank which is the largest organizationworking on private sector initiatives and projects in developing countries; providingtechnical assistance and development proposals to businesses and governments. Theadopted development approaches of this organization and its policy prescriptions tocountries have evolved parallel to the periodic charecteristics of capitalism and thechange in the economic theory corresponding to these periods since its foundation. It ispossible to state that, roughly in the first 30 years, the Keynesian economic policies hasaffected development discourse and policies of the Bank. However, in the mid-1970s theKeynesian impulse went into reverse and replaced by neoliberalism under the effects ofVietnam War and the OPEC oil price shocks. After that, neoliberalism was on the stageuntil the 2008 financial crisis started in America and brought the whole world under itsimpact. This crisis has led the bank to change rhetoric and adopt Keynesian developmentpolicies. The main objective of this study sheds light on what Keynesian economics is, itsmain aims Keynesian development period of the World Bank and its reflections onBank’s development policies.