The IFI gives oversight to the World Bank from time to time regarding the bank’s lending projects. Over the past century and especially since the 1960s, the World Bank has taken countless initiatives in providing financial assistance to nations in need. Although this has been appreciated by many, this international institution of prime importance needs to change the lending strategy that it has been following. It needs to redirect its attention towards raising grant money, utilizing resources to address the truly global public needs. The World Bank needs to stop its lending strategy from a condition-centric approach and transform it into developmental partnerships. What is criticised the most when it comes to current lending projects of the World Bank is its excessive interference with the loanee country’s domestic economic policymaking. The Bank follows a blanket strategy of imposing conditions with the loans which are based on the ‘Washington Consensus’. It means that these conditions are focused on making the loanee country more liberalized, deregulation and privatization of public sector industries. These conditions are more often than not, imposed on countries without being concerned about their circumstances as nations. These conditions often fail to find a solution to the economic problems that the borrowing countries face.

There are several World Bank Group bodies which operate as per the procedures set up under the Articles of an agreement which are the governing documents for such bodies. These documents consist of general principles of organization, management and operations and everything that is necessary for the functioning of the organization. This is important to highlight because these articles do not specify the setting up of conditions for their lending projects. Furthermore, it doesn’t even specify any sort of boundaries for its policies or legal framework. The World Bank instead, uses the precondition of ‘structural changes’ to intervene with the country’s domestic policies. The review held in the year 2005 made the World Bank review its practice of conditionality and decided that it should decrease the extent to which this goes. The number of economic policy conditions attached to development finance is astonishing. This showed some effect as the average number of conditions per loan dropped from a historical high of 40 in the 1990s to around 15 in 2009. Even though this looks encouraging, certain conditions can exercise heavy influence on the borrowing country which is more often than not, a developing country. The World Bank, by doing this it tries to mould developing countries’ financial and economic policies which might not be favourable to the countries themselves.

One of the biggest examples of conditionality was seen when Ghana accepted loans from the World Bank via three separate agreements. In total there were 57 conditions imposed on Ghana. 11 out of those 57 conditions were to apply to the energy and extractive sectors of the country. These sectors include gas, gold, forests and oil. These conditions stipulate policies as to how the country should manage these resources, how Ghana should tax profits along with the condition of implementing oil and gas fiscal regime and the need to adjust fisheries, mining products and oil and gas.