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Australian Network News

The World Bank will double its financial contribution to Samoa, from $US20 million to $US40 million, in order to help the country respond to the recent devastating tsunami.

The bank’s managing director Juan Jose Daboub made the announcement during a visit to Samoa for the opening of the joint World Bank Group and Asian Development Bank liaison office in Apia.

In making the announcement, Mr Daboub said he had seen the devastating impact of the tsunami and the strength, resilience and desire of those who survived to work.

The Asian Development Bank has already given a $US1 million dollar grant for emergency relief efforts, and plans to provide Samoa with $US26 million in new loans to help those affected by the tsunami and the economic crisis

Both banks hailed the opening of the joint ADB and World Bank office as a reflection of the strength of the partnership by both Banks with the Samoan Government and with each other.

What exactly is the World Bank? And how is it different from the bank that you and I have our pennies in?  To those questions, I refer to its own words:

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the common sense. We are made up of two unique development institutions owned by 186 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Each institution plays a different but collaborative role to advance the vision of an inclusive and sustainable globalization. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together we provide low-interest loans, interest-free credits and grants to developing countries for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and
private sector development, agriculture, and environmental and natural resource management.

The Asian Development Bank is made up of 67 member countries, including 48 in the Asia Pacific region of which New Zealand, Australia and all the island nations except Tokelau, Niue and American Samoa which is an American territory.

ADB is an international development finance institution whose mission is to help its developing member countries reduce poverty and improve the quality of life of their people.

Headquartered in Manila, and established in 1966, ADB is owned and financed by its 67 members, of which 48 are from the region and 19 are from other parts of the globe.

ADB’s main partners are governments, the private sector, nongovernment organizations, development agencies, community-based organizations, and foundations.

Although most lending is in the public sector – and to governments – ADB also provides direct assistance to private enterprises of developing countries through equity investments, guarantees, and loans. In addition, its triple-A credit rating helps mobilize funds for development.

World Bank Country Chapter Info: Samoa