World Bank: In this post, we will discuss about the World Bank. Do you know the purpose of World Bank? World Bank Comprises how many institution? If you know then just go through this post for revision. If you don’t then read this post thoroughly.
What is World Bank – The World Bank is a group of some members countries (consider it like a cooperative), formed with an aim of providing finance and technical assistance to developing countries around the world. It is a partnership between the member countries.
Number of Member Countries of the World Bank: Presently there are 189 member countries of the World Bank. To become a member of the World Bank, a country must first become a member of the IMF.
World Bank was formed in 1944.
Headquarters of World Bank: Washington, D.C, US.
The World Bank Group comprises five institutions managed by their member countries. The details of these are given below:
The International Bank for Reconstruction and Development (IBRD)
The IBRD provides loan to governments of the middle-income nation and creditworthy low-income countries.
The International Development Association
The International Development Association (IDA) provides interest-free loans and grants to governments of the poorest countries.
The International Finance Corporation
The International Finance Corporation (IFC) is the largest global development institution that focusses on the development of private sector. Formed in 1956.
The Multilateral Investment Guarantee Agency
The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders.
The International Centre for Settlement of Investment Disputes
The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.
World Banks goal for 2030
The World Bank Group has set two goals for the world to achieve by 2030:
- End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%
- Promote shared prosperity by fostering the income growth of the bottom 40% for every country
President of World Bank: David R. Malpass (13th President)
Important Reports by World Bank
- World Development Report
- Ease of Doing Business
- Global Economic Prospects