The World Bank

The WB was established in 1944 and had 180 member countries in 1999; not all countries are members of the substructure of the World Bank Group. The World Bank Group is composed of the International Bank of Reconstruction and Development (IBRD), the International Finance Corporation (IFC), the International Development Association (IDA) and the Multilateral Investment Guarantee Agency (ICSID) and works in the form of a cooperative. The World Bank is active in promoting the privatization of national state assets and telecommunications structures in many LDCs and is involved, along with the WTO, in promoting a market access model for Greater participation in the global network by all. You can read the Case Study on page (48) in this Unit to learn more about the WB's policy and how some critics view it.

The WB provides a variety of resources and services to the information and communication technology (ICT) sectors of developing countries, including loans, expert advice and access to the Information for Development Programme (InfoDev). In return for its loans and services, the Bank negotiates economic and institutional conditions that must be met by the borrowing government. The World Bank and the ITU, for example, are sponsoring initiatives to ease the transition by developing countries towards 'knowledge societies'. Closely associated with the ITU is WorldTel, an entity designed to raise private sector funds for telecommunications investment (Mansell & Wehn 1998).

InfoDev money is provided for telecommunications reform, information infrastructure strategies (including national strategies), and demonstration projects (Mansell & When 1998). Developing countries' governments have to make their own decisions, therefore, to seek or not to seek telecommunications-related advice from the World Bank, depending on the country's telecommunications situation and policy. Talero and Gaudette (1996:1), state that the WB helps the development of the information economy primarily through strategic advisory services and distribution of knowledge and expertise in support of individual country needs. Finally, the Bank could maintain the experimental portfolio of projects to find new ways to accelerate development with information systems. In all cases, the Bank will adjust its advice and financial support to individual country circumstances and will consider the needs of both the client governments and the ultimate beneficiaries.

To maximize its effectiveness and capitalize on its strengths, the Bank is changing its emphasis toward a strategic advisory role on information policy and toward brokering the of effective partnerships for infrastructure and deployment. Talero et al (1996) state that as a client-oriented institution, however, the Bank continues to offer financial products such as loans, credits, investments, and guarantees where required usually in the context of a national strategy or reform program. The WB's work is increasingly carried out in partnerships with other international institutions, the private sector, NGOs and governments.

In summary, the World Bank's policy includes:

• Rendering advice on telecommunications reform to countries and other clients (for example, Ghana, Indonesia)
• Rendering advice on information strategies
• Rendering advice to countries on strategies for competitiveness of key economic sectors
• Rendering advice to countries on information systems of strategic importance.
• Brokering knowledge. For example providing the basic operational and policy tools that take into account the importance of information technology in two functions of security markets B trading and settlement (Talero & Gaudette 1996:3-7).

Like the ITU, the WB has also faced criticism. Nulens and Van Audenhove (1999:33), are of the opinion that five decades of development aid have not had the desired effect. They further argue that the WB puts the interests of powerful financial groups first (realpolitik not international cooperation); such that countries are forced to adjust their macro-economic policy to the conditions of international lenders. In the past conditions such as privatization of public enterprises were imposed on economically troubled countries. The US Congress and the US administration have been accused of urging privatization in the telecommunications sector to benefit foreign capital (ibid.).

Nulens et al (1996:34) argue further that the WB's privatization and deregulation policies are criticized for only highlighting international telecommunications services, which are of particular interest to big business and finance. They argue that less attention has been paid to the communication needs of the common people and the social and political aspects of development, and the WB does not want to 'be involved in these delicate matters' but rather 'to seize the profitable sectors and pass the negative social aspects of them to the governments'. Regardless of these critiques, the WB continues its work and is improving its image.