Search Results - World Bank

World Bank Group

The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Group. The bank is headquartered in Washington, D.C., in the United States. It provided around $98.83 billion in loans and assistance to "developing" and transition countries in the 2021 fiscal year. The bank's stated mission is to achieve the twin goals of ending extreme poverty and building shared prosperity. Total lending as of 2015 for the last 10 years through Development Policy Financing was approximately $117 billion. Its five organizations have been established over time:

* International Bank for Reconstruction and Development (IBRD), 1944 * International Development Association (IDA), 1960 * International Finance Corporation (IFC), 1956 * International Centre for Settlement of Investment Disputes (ICSID), 1965 * Multilateral Investment Guarantee Agency (MIGA), 1988

The first two are sometimes collectively referred to as the World Bank. They provide loans and grants to the governments of low- and middle-income countries for the purpose of pursuing economic development. These activities include fields such as human development (e.g. education, health), agriculture and rural development (e.g. irrigation and rural services), environmental protection (e.g. pollution reduction, establishing and enforcing regulations), infrastructure (e.g. roads, urban regeneration, and electricity), large industrial construction projects, and governance (e.g. anti-corruption, legal institutions development). The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries. Loans or grants for specific projects are often linked to wider policy changes in the sector or the country's economy as a whole. For example, a loan to improve coastal environmental management may be linked to the development of new environmental institutions at national and local levels and the implementation of new regulations to limit pollution. Furthermore, the World Bank Group is recognized as a leading funder of climate investments in developing countries.

The World Bank was established along with the International Monetary Fund at the 1944 Bretton Woods Conference. Initially, its loans helped rebuild countries devastated by World War II. Over time, it has shifted its focus to development, with a stated mission of eradicating extreme poverty and boosting shared prosperity.

The World Bank is a member of the United Nations Sustainable Development Group. It is governed by its 189 member countries, though the United States, as its largest shareholder, has traditionally appointed its president. The current president is Ajay Banga, appointed in June 2023. The Bank's lending and operational decisions are made by a president and a board of 25 executive directors. The largest voting powers are held by the U.S. (15.85%), Japan (6.84%), China (4.42%), Germany (4.00%), and the United Kingdom (3.75%).

The Bank's activities span all sectors of development. It provides financing, policy advice, and technical assistance to governments, and also focuses on private sector development through its sister organizations. The Bank's work is guided by environmental and social safeguards to mitigate harm to people and the environment. In addition to its lending operations, it serves as one of the world's largest centers of development research and knowledge, publishing numerous reports and hosting an Open Knowledge Repository. Current priorities include financing for climate action and responding to global crises like the COVID-19 pandemic.

The World Bank has been criticized for the harmful effects of its policies and for its governance structure. Critics argue that the loan conditions attached to its structural adjustment programs in the 1980s and 1990s were detrimental to the social welfare of developing nations. The Bank has also been criticized for being dominated by wealthy countries, and for its environmental record on certain projects. Provided by Wikipedia