From Hyderabad, India: The end of World War II necessitated the reconstruction of the destroyed foes, Japan and Continental Europe, which created the International Bank for Reconstruction and Development (IBRD). The beginning of the end of colonialism justified its existence as an international entity, not merely as an institution focused on Europe.
The World Bank Group, put into business for borrowing from the First World financial markets together with contributions from their governments and lending to the rest of the world, besides IBRD, consists of liaisons with the United Nations (UN) umbrella divisions engaged in global development in New York, regional development banks such as the Asian Development Bank (ADB), the African Development Bank (AFDB) and the post-Cold War European Bank for Reconstruction and Development (EBRD); The World Bank bureaucracy, International Finance Corporation (IFC) which invests in private sector development by raising funds in the bond markets of First World countries, Multilateral Investment Guarantee Agency (MIGA) for insuring political risk faced by First World monies in the rest of the world, and the International Centre for Settlement of Investment Disputes (ICSID) pertaining to the Bank’s development investments.
The International Monetary Fund (IMF), established also in 1944 for stabilizing First World Exchange rates and conditional lending to other countries in crisis to build their economic institutions, and The World Bank Group manage international monetary policy and development policy across from each other on 19th Street in downtown Washington, D.C.
European reconstruction, spanning about 6 decades has been completed in the period 1999-2002 with the launch of the common currency, the euro, which must face its first post-Cold War crisis autonomously from the United States, just as Japan has been dealing with its for more than a decade, if it is to survive in the global economy as a union.
At a time when further increase in the standard of living of rest of the world, including the poorest of the poor, determines the well-being of the wealthy countries because of sustainable development, the middle and low income countries are eager to breakaway, with their own currencies, from dependence on the Bretten Woods institutions financed mostly by American public and private monies because their development and growth thus far has largely been constrained rather than emancipated by the regulated flow of financial capital to the public and private sectors of the non-First World, controlling their pace of development in favor of the rich countries.
The World Bank Group and the IMF, development bottlenecks, must be reformed to oversee exchange rate and development policies rather than be charged with providing financial capital to middle and low income countries, because the new global paradigm is sustainability, and this includes self-reliance.