In the aftermath of World War II, Japan, France, and other nations were left with catastrophic levels of destruction, yet by the 1960s, these countries had not only rebuilt but were enjoying prosperity and economic might. This was due in large part to funding from the World Bank, which was established in 1944 to help them rebuild with grants and low-interest loans.
France was the first country to receive World Bank money in 1947, and within a decade had restored its economy and transformed itself into a donor nation. The Republic of Korea, which received its first funding in 1962, stopped borrowing by 1973, and became a donor in 1977.
Japan’s stratospheric rise from an aid-dependent, near-shattered nation to a global economic powerhouse is the stuff of legends. Japan first took out World Bank loans in 1953, signed its final loan in 1966, and graduated to donor status the following year. By 1984, it was the second-largest shareholder of the bank — fueling development for other countries around the world.
About the author
Samuel Munzele MaimboSamMMaimbo
Samuel Munzele Maimbo is the vice president for budget, performance review and strategic planning at the World Bank in Washington D.C., currently on special leave of absence while a candidate for the African Development Bank presidency. Previously, he served as the chief of staff to World Bank Presidents David Malpass and Ajay Banga, as well as senior adviser to two World Bank Group chief financial officers.
