This Podcast Is Episode Number 0271, And It Will Be About How U.S. Corporations World Banking Influences Construction Industry Today's Guest Article Is From Kaya Johnson, Sales Accountant ----------------------------------------------------------------------------------------- Multinational U.S. Corporations And The Influence They Have Over The World Bank The World Bank is, in theory, an institution which treats all countries the same. However, the reality is that there is a large amount of influence which certain companies are able to hold over the bank and the decisions which it makes. We’re going to have a look at a few of the most glaring instances of US multinationals pushing the World Bank for their own gains, including: How US multinationals exert influence The other country with major influence over the World Bank What the end result is The World Bank was formed after the Second World War, with the aim of creating an international organization which could provide the necessary funds to nations around the world for capital projects. However, while the World Bank was meant to be a completely impartial body that treated all countries equally, the reality was that it was not long before it began giving unfair advantages to certain nations. Foremost among these was the US, then the dominant global power. Recent research has suggested that US multinational companies have a long track record of influencing investment by the World Bank, allowing them to direct investment funds into areas which directly benefit them. Government Lobbying Allows Companies to Direct Investment Most of this leverage is done, indirectly, by lobbying congress. Multinational companies have an extraordinary amount of influence in today’s world. Promises of financial gain or influence allow these companies to ensure that members of congress put in a good word for them at the treasury. From their, the treasury representative passes on the directions to the World Bank. The US is the biggest investor in the World Bank, putting in a large share of the funds that the organization disperses. As a result, the World Bank is disproportionately reliant on the US, and has to ensure that good relations are maintained. They are far more inclined to approve requests from the US treasury than from other areas. This comes as a minor disadvantage to the other major regions as the US is in turn a huge investor for them. Of course it would be easier to depend directly on the World Bank but that would give less perks to the US and indirectly come as damage to its economy. That in turn would have a negative impact on the world’s economy. Keeping it the way it functions at the moment has everyone at an almost equal state, with the US keeping itself and its mega economy in balance whereas the other regions such as Europe easily manage their independent, micro economies depending on each individual country. US and Japan Are Home to Multinationals Japanese multinationals have a similar sway over the World Bank. Multinationals emerged in both the US and Japan in the postwar boom that both countries experienced, and Japan is the second biggest investor in the World Bank. The result of this is that major corporations are able to essentially push investment in areas that benefit them, without actually having to part with any funds themselves. The world Bank was founded in order to allow investments to be made in countries that both need and deserve it. This use of influence is seeing these funds actually end up in two of the wealthiest countries in the world. The World Bank maintains that the majority of their funds actually go to smaller companies rather than multinationals. However, the research points to clear evidence that US and Japan based companies are enjoying an unreasonable amount of influence over the foundation. This takes over the potential advantage a small company would have over some funds that would help its development. Considering nowadays’ data...