World Bank
The World
Bank was established in 1944 and is headquartered in Washington, D.C with more
than 100 offices worldwide and over 10,000 employees.
The World Bank is divided into two development institutions
owned by 186 member countries:
1. The International Bank for Reconstruction and Development
(IBRD) aims to reduce poverty in middle-income and creditworthy poorer
countries.
2. The International Development Association (IDA) focuses on
the world's poorest countries.
The World Bank
provides financial and technical assistance to developing countries around the
world. The
mission is to decrease poverty in world and to help people and their
environment by providing resources, sharing knowledge, building capacity and
forging partnerships in the public and private sector. Low-interest loans,
interest-free credits and grants are provided to developing countries for a
wide array of purposes that also include investments in various sectors.
Key Factors:
The World Bank says that there are five key factors
necessary for economic growth:
1.Build capacity: Making governments stronger and more
educated.
2.Infrastructure creation: Making laws to encourage business,
and protect individual and property rights.
3.Development of Financial Systems: Starting strong systems
that can lend and borrow in many different situations.
4.Combating corruption: Stopping corruption in governments.
5.Research, Consultancy and Training: helping students,
academics and organisations who are
interested do research into financial affairs.
Leadership:
- The
President of world Bank is currently Robert B. Zoellick.But from 1st July,2012
Jim Yong Kim will be the new president of World Bank.
- President is
responsible for chairing the meetings of the Boards of Directors and for
running the Bank. The Bank President has always been a US citizen chosen by the
United States, the largest shareholder in the bank.
The World Bank Group(WBG)
The World Bank
Group (WBG) is a family of five international organizations that makes
leveraged loans, generally to poor countries.
The WBG came into formal existence on 27 December 1945.
The term "World Bank" generally refers to just the
IBRD and IDA, whereas the term World Bank Group or WBG is used to refer to all
five institutions collectively.
These Five institutions together make up the World Bank
Group:
The International Bank for Reconstruction and Development
(IBRD) lends to governments of middle-income and creditworthy low-income
countries.
The International Development Association (IDA) provides
interest-free loans—called credits— and grants to governments of the poorest
countries.
The International Finance Corporation (IFC) provides loans,
equity and technical assistance to stimulate private sector investment in
developing countries.
The Multilateral Investment Guarantee Agency (MIGA) provides
guarantees against losses caused by non-commercial risks to investors in
developing countries.
The International Centre for Settlement of Investment
Disputes (ICSID) provides international facilities for conciliation and
arbitration of investment disputes.
Collectively, the World Bank Group is:
- The world’s largest funder of education
- The world’s largest external funder of the fight against
HIV/AIDS
- A leader in the fight against corruption worldwide
- A strong supporter of debt relief
- The largest international financier of biodiversity projects
- The largest international financier of water supply and
sanitation projects.
Leadership:
President of World Bank and World Bank Group is the same.
