After World War II, multilateral bodies such as the International Monetary Fund (IMF) and the World Bank (Bank) were established for providing developing nations with the funds necessary for growth. Both the bodies have been playing a significant role since then. In 2002, the World Bank has financed 133 projects worth $8.1 bn in 62 developing countries. Further, in 2003, it worked with more than 100 developing countries and provided $18.5 bn for bringing in technical expertise and finance for helping these countries reduce poverty. The main purpose for setting up such a body was to have a central institution, which would fund developing nations dealing with problems of health, education, nutrition, environmental protection, etc. The developing countries, which do not borrow money from international markets because of the high interest rates, receive loans and technical assistance from the World Bank, which can be repaid in a span of 35-40 years, with a 10- year grace period.

Though the Bank has been funding projects and catering to the developing countries, the main purpose of setting up the Bank seems to have been defeated. The Bank has been exposed to fraudulent activities and corruption, not only by its employees but also by consultants of the governments that avail these loans. The funds meant for development and antipoverty missions are being misused. Corruption has been dominant in countries like Bangladesh, Indonesia and Kenya. Despite this, the Bank has continued to fund these countries. According to the
Bank, corruption has wasted as much as 5-30% of the $525 bn that the Bank has lent over six decades to countries like Bangladesh, Cambodia, China, the Philippines and Vietnam.