Introduction The World Bank, established in 1944, is headquartered in Washington, D.C The World Bank is a vital source of financial and technical assistance to developing countries around the world. Its mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors.
Overview The World bank is made up of two unique development institutions owned by 186 member countries: the International Bank for Reconstruction and Development (IB and the International Development Association (IDA). Each institution plays a different but collaborative role in advancing the vision of inclusive and sustainable globalization. The IBRD aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses on the worlds poorest countries.
Overview It provides low-interest loans, interest-free credits and grants to developing countries for various purposes that includeii. investments in education,iii. health,iv. public administration,v. infrastructure,vi. financial and private sector development,vii. agriculture,viii. environmental and natural resource management.
Organization Its 186 member countries are shareholders. The shareholders are represented by a Board of Governors, who are the ultimate policy makers at the World Bank. Generally, the governors are member countries ministers of finance. They meet once a year at the Annual Meetings of the Boards of Governors. France, Germany, Japan, U. K and the United States are five largest shareholders The President of the World Bank is Robert B. Zoellick.
Members Total member countries in each institution: The International Bank for Reconstruction and Development (IBRD): 186 The International Development Association (IDA): 169 The International Finance Corporation (IFC):182 The Multilateral Investment Guarantee Agency (MIGA): 175 The International Centre for Settlement of Investment Disputes (ICSID): 144
Operations The World Banks two closely affiliated entities—the (IBRD) and the (IDA)—provide low or no interest loans (credits) and grants to countries that have unfavorable or no access to international credit markets. It does not operate for profit. The IBRD is market-based, and it uses its high credit rating to pass the low interest it pays for money on to its borrowers—developing countries.
Fund Generation IBRD lending to developing countries is primarily financed by selling AAA-rated bonds in the worlds financial markets. While IBRD earns a small margin on this lending, the greater proportion of its income comes from lending out its own capital.
Loans Through the IBRD and IDA, we offer two basic types of loans and credits: investment operations: Countries use investment operations for goods, works and services in support of economic and social development projects in a broad range of economic and social sectors. development policy operations: Development policy operations (formerly known as adjustment loans) provide quick- disbursing financing to support a country’s policy and institutional reforms.
Trust funds and grants Donor governments and a broad array of private and public institutions make deposits in Trust funds that are housed at the World Bank. These donor resources are leveraged for a broad range of development initiatives, varying significantly in size and complexity, ranging from multibillion dollar arrangements—such as Carbon Finance; the Global Environment Facility; the Heavily Indebted Poor Countries Initiative; and the Global Fund to Fight AIDS, Tuberculosis, and Malaria—to much smaller and simpler freestanding ones. IDA grants are used to: Relieve the debt burden of heavily indebted poor countries Improve sanitation and water supplies Support vaccination and immunization programs to reduce the incidence of communicable diseases like malaria Combat the HIV/AIDS pandemic Support civil society organizations Create initiatives to cut the emission of greenhouse gases
Analytical & advisory services: It provides analysis, advice and information to member countries through: economic research and data collection on broad issues such as the environment, poverty, trade and globalization; country-specific, non-lending activities such as economic and sector work, where it evaluates a countrys economic prospects by examining its banking systems and financial markets, trade, infrastructure and poverty. It draws upon the resources like wealth of contacts, knowledge, information and experience to educate clients so they can equip themselves to solve their development problems and promote economic growth. Its analyses, advice and knowledge are made available to client countries, their government and development professionals, and the public through Poverty Assessments Public Expenditure Reviews Country Economic Reports Sector Reports Topics in Development
Capacity building Another core Bank function is to increase the capabilities of our partners, the people in developing countries, and its own staff. It has set up linkages to knowledge-sharing networks like: Advisory Services and Ask Us help desks make information available by topic via telephone, fax, email and the web. Global Development Learning Network is an extensive network of distance learning centers that uses advanced information and communications technologies to connect people working in development around the world. Knowledge for Development offers policy advice to client countries on economic and institutional regime, education, innovation, and information and communication technologies (ICTs) Capacity Development Resource Center is a repository of literature, case studies, lessons learned. B-SPAN is an Internet-based broadcasting station. The station presents World Bank seminars, workshops and conferences on sustainable development and poverty reduction via streaming video.
Key Activities poverty reduction and the sustainable growth in the poorest countries, especially in Africa; solutions to the special challenges of post-conflict countries and fragile states; development solutions with customized services as well as financing for middle-income countries; regional and global issues that cross national borders--climate change, infectious diseases, and trade; greater development and opportunity in the Arab world; pulling together the best global knowledge to support development.