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World Bank Group Assignment

World Bank Group Assignment

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The World Bank
Introduction
The World Bank Group (WBG) was
established in 1944
 is
headquartered in Washington, D.C.
 to
rebuild post-World War II Europe under the International Bank for Reconstruction and Development (IBRD)
. Today, the World Bank functions as an international organization that
fights poverty by offering developmental assistance to middle-income and low-income countries
. By giving loans and offering advice and training in both the  private and public sectors, the World Bank
aims to eliminate poverty
 by helping people help themselves.
Membership
 
There are
186 member countries
 that are
shareholders in the IBRD
, which is the primary arm of the WBG. To become a
member
, however,
a country must first join the International Monetary Fund
 (IMF). The size of the Bank's shareholders, like that of the IMF's shareholders, depends on the size of a country's economy. Thus, the
cost of a subscription
 to the Bank is a
factor of the quota paid to the IMF
. There is an obligatory subscription fee, which is
equivalent to 88.29% of the quota
 that a country has to pay to the Fund. In addition, a country is
obligated to buy 195 Bank shares
 (USD 120,635 per share). Of these 195 shares, 0.60% must  be paid in cash in U.S. dollars while 5.40% can be paid in a country's local currency, in U.S. dollars, or in non-negotiable non-interest bearing notes. The balance of the 195 shares is left as "callable capital", meaning the Bank reserves the right to ask for the monetary value of these shares when and if necessary. A country can subscribe a further 250 shares, which do not require  payment at the time of membership but are left as "callable capital".
The president of the Bank 
 
comes from the largest shareholder, which is the United States
, and members are represented  by a
Board of Governors
. Throughout the year, however, powers are delegated to a board of 24 Executive Directors (ED). The
five largest shareholders - the U.S., U.K., France, Germany and
 
Japan
 - each have an individual ED, and the additional 19 EDs represent the rest of the member states as groups of constituencies. Of these 19, however, China, Russia and Saudi Arabia have opted to be a single country constituency, which means that they each have one representative within the 19 EDs. This decision is based on the fact that these countries have
 
large, influential economies, which requires that their interests be voiced individually rather than diluted within a group.
The World Bank gets its funding from rich countries as well as from the issuance of bonds on the world's capital markets. The Parts That Make Up the Whole
1.
 
2.
 
3.
 
4.
 
5.
 
International Centre for the Settlement of Investment Disputes (ICSID) The IBRD
offers assistance to middle income and poor but credit worthy countries
, and it also works as an umbrella for more specialized bodies under the Bank. The IBRD was the original arm of the Bank which was responsible for the reconstruction of post-war Europe. Before gaining membership in the WBG's affiliates (the International Finance Corporation, the Multilateral Investment Guarantee Agency and the International Center for Settlement of Investment Disputes), a country must be a member of the IBRD. The International Development Association offers loans to the world's poorest countries. These loans come in the form of "credits", and are essentially interest-free. They offer a 10-year grace  period and hold a maturity of 35 years to 40 years. The International Finance Corporation (IFC) works to promote private sector investments by  both foreign and local investors. It provides advice to investors and businesses, and it offers normalized financial market information through its publications, which can be used to compare across markets. The IFC also acts as an investor in capital markets and will help governments  privatize inefficient public enterprises.
 
 The Multilateral Investment Guarantee Agency (MIGA) supports direct foreign investment into a country by offering security against the investment in the event of political turmoil. These guarantees come in the form of political risk insurance, meaning that MIGA offers insurance against the political risk that an investment in a developing country may bear. Finally, the International Center for Settlement of Investment Dispute facilitates and works towards a settlement in the event of a dispute between a foreign investor and a local country.
Challenge of the World Bank
At the World Bank they have made the world's challenge
 — 
to reduce global poverty
 — 
their challenge. The Bank focuses on achievement of the Millennium Development Goals that call for the elimination of poverty and sustained development. The goals provide with targets and yardsticks for measuring results. The mission is to help developing countries and their people reach the goals by working with  partners to alleviate poverty. The Bank address global challenges in ways that advance an inclusive and sustainable globalization
 — 
that overcome poverty, enhance growth with care for the environment, and create individual opportunity and hope. Six strategic themes
drive the Bank’s efforts. By focusing on these strategic themes, the Bank
delivers technical, financial and other assistance to those most in need and where it can have the greatest impact and promote growth. To meet Global Challenges, the Six strategic themes
1.
 
 The World Bank is helping overcome poverty and spur sustainable growth in the poorest countries, especially in Africa.
2.
 
Post Conflict fragile states
: The Bank is helping prevent conflict and support reconstruction remains a critical part of the World Bank's global mission of poverty

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