Title: World Bank Charter
Category: Advancement of Industry
Area of Effect: Commercial Enterprise
Author: Opiachus
The World Assembly hereby:
OBSERVES the necessity of loans for the development of industry and improvement of the human condition in member states.
OBSERVES that the World Assembly General Fund is currently held in private banks where the profit from lending of said funds, which are mostly from public sources, goes towards private bank owners instead of the World Assembly or its members and donors.
OBSERVES the frequent political and economic crises caused when member states cannot repay loans which often become issues for the international financial system, for the health of democracy, and for regional political stability.
OBSERVES the lack of a central institution where member state institutions can settle transactions and exchange currencies, which forces a convoluted system whereby institutions must open correspondent accounts with every other institution they wish to deal with on an ad-hoc basis.
OBSERVES that the World Assembly is reliant on member donations as the primary source of its revenues and diversification of revenue sources is necessary for the funding of large projects and programs commonly mandated by World Assembly resolutions, lest the World Assembly impose onerously large donations on member states.
DENOUNCES the practice by some banks and nations of using loans to exert political influence over sovereign member states and the use of defaults on such loans as a case for war or the seizure of assets.
Therefore, the World Assembly hereby:
CHARTERS the World Bank as an agency of the World Assembly.
OPENS accounts at the World Bank for the World Assembly and for each member state's institutions.
ALLOWS the World Bank to conduct banking business for the purposes of (a) lending for the development of industry, (b) deposit and withdrawal of the World Assembly General Fund and member state institution funds, (c) emergency lending for distressed member state governments and central banks liable to cause an international financial crisis in case of default, and (d) providing a central location for member state institutions to settle financial transactions and convert between currencies.
REQUIRES that the World Bank conduct banking business in a manner which is profitable and that said profits are kept as retained earnings by the World Bank for the furtherance of its banking business and potential payout to the World Assembly General Fund.
PROHIBITS the World Bank from creating or issuing its own currency.
ASSIGNS oversight of the World Bank's activities, compliance of the World Bank's banking business with this resolution, and the receipt of annual and quarterly reports from the World Bank to the World Assembly General Accounting Office (GAO).
ALLOWS a portion of the World Bank's retained earnings to be paid out as a dividend to the World Assembly General Fund, with the proportion set by the GAO to ensure sufficient reserves for the banking business even in times of crisis.
REQUIRES organizations receiving loans from the World Bank to submit audited financial statements to the GAO and subject themselves to any further reviews requested by the GAO.
REQUIRES member state central banks to use the World Bank to settle financial transactions and convert between currencies under purpose (d).
STRONGLY ENCOURAGES member state institutions to use the World Bank for the purposes listed in this resolution if not falling under the previous requirement clause.