he World Bank and the International Monetary Fund (IMF) were established in 1944 to help rebuild Europe and Japan after World War II. In 1945, the United Nations was established to help resolve conflicts and promote sustainable peace, allowing the World Bank and IMF to carry out their mandates of supporting projects and programs for sustainable development worldwide.
However, geopolitical dynamics in the international system have hampered their ability to carry out those mandates. For instance, veto–wielding permanent members of the UN Security Council have often prioritized their own competing national security interests over support for the Bretton Woods institutions.
Since the end of World War II, there have been ongoing interstate and intra–state wars that have developed into long–lasting conflicts. Many of these conflicts have been driven by the strategic interests of the five permanent members of the UN Security Council and their allies. These conflicts drain resources, nationally and internationally, for international development. This has led to the persistence of poverty, fragility, crime, and low–intensity violence in many developing and less developed countries. The World Bank and IMF have faced challenges in achieving sustainable development results in these areas.
Consequently, decades after its establishment, the World Bank adopted its first Fragility, Conflict, and Violence (FCV) strategy in 2020. The goal is to assist countries in enhancing their resilience and addressing the causes and effects of FCV. While this is a step in the right direction, it may not be sufficient unless the World Bank partners with its sister agencies within the UN system to advocate for conflict resolution and achieve tangible results worldwide.
No amount of integrated humanitarian and development aid interventions will end forced displacement unless protracted conflicts are ended and new ones are prevented as much as possible. Almost every forcibly displaced person is a victim of protracted, new, and emerging conflicts due to fluctuating geopolitical tensions in the world.
In recent years, geopolitical tensions have increased, leading to a new record high of $2.2 trillion in global military spending while the global economic impact of violence is estimated to be $14.4 trillion. The indirect costs of war will also have long-lasting effects on civilians and future generations.
These staggering costs rob an increasing number of war-ravaged nations of the resources they need today and in the future. That is why, today, some 300 million people around the world need humanitarian assistance and protection due to conflicts, climate emergencies, food insecurity, outbreaks of diseases, poverty, and other challenges that overlap in most conflict and fragile contexts. It’s a nearly impossible environment for the World Bank and IMF to carry out their mandate.
Unfortunately, without effective conflict resolution and peacebuilding, the world is unlikely to see an end to the increasing poverty and inequality, escalating conflicts, and growing forced displacement. As a result, the achievement of the Sustainable Development Goals will mostly remain out of reach in many developing, less developed, and war–torn nations. These nations are receiving support from the World Bank and IMF just to deal with a series of crises without much sustainability in sight.
The World Bank and IMF are at the forefront of researching and studying the main causes of poverty, financial instability, state fragility, and violence. They often outline their findings in regular reports and implement them through global aid strategies. Including conflict resolution advocacy in their mandates and assistance programs would greatly help these and other intergovernmental organizations achieve their interconnected goals of sustainable prosperity and peace worldwide.
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Conflict resolution should be in World Bank, IMF mandates
Image by vero_vig_050 from Pixabay
October 23, 2024
Today’s geopolitical dynamics hamper the IMF and World Bank’s ability to carry out their mandates. Expanding those mandates to include conflict resolution could be the answer, writes Amb. M. Ashraf Haidari.
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he World Bank and the International Monetary Fund (IMF) were established in 1944 to help rebuild Europe and Japan after World War II. In 1945, the United Nations was established to help resolve conflicts and promote sustainable peace, allowing the World Bank and IMF to carry out their mandates of supporting projects and programs for sustainable development worldwide.
However, geopolitical dynamics in the international system have hampered their ability to carry out those mandates. For instance, veto–wielding permanent members of the UN Security Council have often prioritized their own competing national security interests over support for the Bretton Woods institutions.
Since the end of World War II, there have been ongoing interstate and intra–state wars that have developed into long–lasting conflicts. Many of these conflicts have been driven by the strategic interests of the five permanent members of the UN Security Council and their allies. These conflicts drain resources, nationally and internationally, for international development. This has led to the persistence of poverty, fragility, crime, and low–intensity violence in many developing and less developed countries. The World Bank and IMF have faced challenges in achieving sustainable development results in these areas.
Consequently, decades after its establishment, the World Bank adopted its first Fragility, Conflict, and Violence (FCV) strategy in 2020. The goal is to assist countries in enhancing their resilience and addressing the causes and effects of FCV. While this is a step in the right direction, it may not be sufficient unless the World Bank partners with its sister agencies within the UN system to advocate for conflict resolution and achieve tangible results worldwide.
No amount of integrated humanitarian and development aid interventions will end forced displacement unless protracted conflicts are ended and new ones are prevented as much as possible. Almost every forcibly displaced person is a victim of protracted, new, and emerging conflicts due to fluctuating geopolitical tensions in the world.
In recent years, geopolitical tensions have increased, leading to a new record high of $2.2 trillion in global military spending while the global economic impact of violence is estimated to be $14.4 trillion. The indirect costs of war will also have long-lasting effects on civilians and future generations.
These staggering costs rob an increasing number of war-ravaged nations of the resources they need today and in the future. That is why, today, some 300 million people around the world need humanitarian assistance and protection due to conflicts, climate emergencies, food insecurity, outbreaks of diseases, poverty, and other challenges that overlap in most conflict and fragile contexts. It’s a nearly impossible environment for the World Bank and IMF to carry out their mandate.
Unfortunately, without effective conflict resolution and peacebuilding, the world is unlikely to see an end to the increasing poverty and inequality, escalating conflicts, and growing forced displacement. As a result, the achievement of the Sustainable Development Goals will mostly remain out of reach in many developing, less developed, and war–torn nations. These nations are receiving support from the World Bank and IMF just to deal with a series of crises without much sustainability in sight.
The World Bank and IMF are at the forefront of researching and studying the main causes of poverty, financial instability, state fragility, and violence. They often outline their findings in regular reports and implement them through global aid strategies. Including conflict resolution advocacy in their mandates and assistance programs would greatly help these and other intergovernmental organizations achieve their interconnected goals of sustainable prosperity and peace worldwide.
