Following the World Bank's refusal to fund building the Aswan Dam, Egyptian leader Gamal Abdel Nasser nationalizes the Suez Canal, sparking international condemnation.
The Suez Crisis, or the Second ArabIsraeli war, also called the Tripartite Aggression (Arabic: , romanized: Al-Udwn a-uliyy) in the Arab world and the Sinai War in Israel,
was an invasion of Egypt in late 1956 by Israel, followed by the United Kingdom and France. The aims were to regain control of the Suez Canal for the Western powers and to remove Egyptian president Gamal Abdel Nasser, who had just swiftly nationalised the foreign-owned Suez Canal Company, which administered the canal. After the fighting had started, political pressure from the United States, the Soviet Union and the United Nations led to a withdrawal by the three invaders. The episode humiliated the United Kingdom and France and strengthened Nasser.On 26 July 1956, Nasser nationalised the Suez Canal Company, which prior to that was owned primarily by British and French shareholders. On 29 October, Israel invaded the Egyptian Sinai. Britain and France issued a joint ultimatum to cease fire, which was ignored. On 5 November, Britain and France landed paratroopers along the Suez Canal. Before the Egyptian forces were defeated, they had blocked the canal to all shipping by sinking 40 ships in the canal. It later became clear that Israel, France and Britain had conspired to plan the invasion. The three allies had attained a number of their military objectives, but the canal was useless. Heavy political pressure from the United States and the USSR led to a withdrawal. U.S. president Dwight D. Eisenhower had strongly warned Britain not to invade; he threatened serious damage to the British financial system by selling the U.S. government's pound sterling bonds. Historians conclude the crisis "signified the end of Great Britain's role as one of the world's major powers".The Suez Canal was closed from October 1956 until March 1957. Israel fulfilled some of its objectives, such as attaining freedom of navigation through the Straits of Tiran, which Egypt had blocked to Israeli shipping since 1948-50.As a result of the conflict, the United Nations created the UNEF Peacekeepers to police the EgyptianIsraeli border, British prime minister Anthony Eden resigned, Canadian external affairs minister Lester Pearson won the Nobel Peace Prize, and the USSR may have been emboldened to invade Hungary.
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), two of five international organizations owned by the World Bank Group. It was established along with the International Monetary Fund at the 1944 Bretton Woods Conference. After a slow start, its first loan was to France in 1947. In the 1970s, it focused on loans to developing world countries, shifting away from that mission in the 1980s. For the last 30 years, it has included NGOs and environmental groups in its loan portfolio. Its loan strategy is influenced by the Millennium Development Goals as well as environmental and social safeguards.
The World Bank is run by a president and 25 executive directors, as well as 29 various vice presidents. IBRD and IDA have 189 and 174 member countries, respectively. The U.S., Japan, China, Germany and the U.K. have the most voting power. The bank aims loans at developing countries to help reduce poverty. The bank is engaged in several global partnerships and initiatives, and takes a role in working toward addressing climate change. The World Bank operates a number of training wings and it works with the Clean Air Initiative and the UN Development Business. It works within the Open Data Initiative and hosts an Open Knowledge Repository.
The World Bank has been criticized as promoting inflation and harming economic development. The way it is governed has been criticized. There have been major protests against the bank. There has also been criticism of the bank’s response to the Covid-19 pandemic.