World Bank Group Timeline

In November 1950, U.S. President Truman appointed a number of experts to the International Development Advisory Board which had been authorized under Congress's Act for International Development. The president's first task for the committee was to consider proposals concerning U.S. policy toward developing countries. The resulting report, submitted to President Truman in March 1951 and entitled "Partners in Progress," recommends that a new International Development Authority be created. The report comments that, while financing by the World Bank and the Export-Import Bank should be continued, "many projects of basic importance to the development of underdeveloped countries [cannot] be financed entirely on a loan basis" (p. 72). The report concludes that "such public works can be most effectively financed and developed through a well-managed international agency" (p. 72) and recommends the creation of the new Development Authority, "which all the free nations will be invited to participate" (p. 72). The new organization should be set up with funds not exceeding half a billion dollars subscribed by the United States and other countries and should operate under a management contract with the World Bank, whereby the Bank would be responsible for identifying projects and supervising grants after they are made. The report states that the plan had been discussed with officials at the World Bank and concludes that "the international Bank would give sympathetic consideration to making its management facilities available to the new Development Authority which we are recommending" (p. 73).