__ Our Interdependent World Today's world is a fast-changing, closely meshed global economy. Events in one country or region can have an immediate impact on the financial stability, human health, environmental health, and political stability of other countries. For example: Volatility in one nation's stock market can be felt within minutes in other markets worldwide because new technology and communications have greatly accelerated the speed of information Capital movements can turn from inflows to outflows almost instantaneously, because markets react to political and economic developments Rising living standards and economic growth in developing and transitional economies directly affect wealthier countries by creating markets for exports and investment Environmental destruction, disease, refugee flows, and other consequences of acute poverty know no borders. Why do we need a World Bank? he World Bank is a development institution whose goal is to reduce poverty by promoting sustainable economic growth in its client countries. Development is a long-term process which ultimately involves the transformation of whole societies. It is about getting economic and financial policies right. But it is also about empowering the people, building the roads, writing the laws, recognizing the women, educating the girls, eliminating the corruption, protecting the environment, inoculating the children - and much, much more. Development is about putting all the component parts in place - balanced economic and social programs.  The challenge is immense, and this means that everyone involved in the development process - governments, institutions such as the Bank, civil society, and the private sector - must work in close partnership to define the needs and implement the programs.  The global fight against poverty is aimed at ensuring that people everywhere in this world have a chance for a better life for themselves and for their children. Over the past generation, more progress has been made in reducing poverty and raising living standards than during any other period in history. In developing countries:  Life expectancy has increased from 55 to 65years Incomes per person have doubled The proportion of children attending school has risen from less than half to more than three quarters Infant mortality has been reduced by 50 percent Despite these successes, massive development challenges remain. Of the 4.7 billion people who live in the 100 countries that are World Bank clients:  3 billion live on less than $2 a day and 1.3 billion on less than $1 a day 40,000 die of preventable diseases every day 130 million never have an opportunity to go to school 1.3 billion do not have clean water to drink All countries have a stake in meeting these challenges. Raising living standards and promoting growth and development in the world's poorer countries also expands trade, jobs, and incomes in the wealthier countries. Equally, an increase in poverty in developing countries can adversely affect wealthier nations as markets and investment opportunities shrink, the environment is damaged, and people migrate in search of work and income. We live in one world - a world linked by communications and trade, by global finance and a shared environment, and most of all by common aspirations for a better life. The fight against global poverty is - without question - a global responsibility. Back to What is the World Bank Group? Contents

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