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World Bank

World Bank

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Published by Amit Kumar Giri
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Published by: Amit Kumar Giri on Jul 05, 2011
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World Bank (IBRD & IDA)
Formation 27 December 1945 Type International organization Legal status Treaty Purpose/focus Crediting Membership 186 countries President Robert B. Zoellick Main organ Board of Directors Parent organization WorldBankGroup Website www.worldbank.org

What is world bank? 

The World Bank is an international financial institution that programs. provides leveraged loans to poorer countries for capital programs. poverty. The World Bank has a stated goal of reducing poverty. The World Bank provides over $24 billion in assistance to developing and transition countries every year. The Bank's projects and policies affect the lives and livelihoods of billions of people worldwide - sometimes for the better, but very often in controversial and problematic ways. The World Bank differs from the World Bank Group, in that the Group, World Bank comprises only two institutions: International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA).  

The World Bank was originally established to support reconstruction in Europe after World War II, but has since reframed its mission and expanded its operations both geographically and substantively. Today, the Bank's mission is to reduce poverty. It has over 184 poverty. member countries and provides over $24 billion annually for activities ranging from agriculture to trade policy, from health and education to energy and mining. 

The World Bank provides funding for bricks-and-mortar bricks-andprojects, as well to promote economic and policy prescriptions it believes it will promote economic growth. For example, part of the over $300 million the Bank is currently providing the West African country of Niger funds health programs addressing HIV/AIDS and irrigation. However, the Bank also promotes more controversial projects in the country, like privatization of state enterprises. 

The World Bank is not a bank in the common sense of the word

A single person cannot open an account or ask for a loan. Rather, the Bank provides loans, grants and technical assistance to countries and the private sector to reduce poverty in developing and transition countries.


The World Bank Group is actually comprised of five separate arms. Two other branches - the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) - directly support private businesses investing in developing countries. The fifth arm is the International Center for Settlement of Investment Disputes (ICSID), (ICSID), which arbitrates disagreements between foreign investors and governments. 

(1). To provide long run capital to member countries for economic reconstruction and development . World bank provides capital mainly for following purposes:  To rehabilitate war ruined economies (this objective is fully achieved).  To finance productive effects according to perce time requirements.  To develop resources and production facilities in under-developed countries. under-

(2). To induce long run capital investment for assuring BOP equilibrium and balanced development for international trade. (this objective was adopted to increase the productivity of member countries and to improve economic conditions and standard of living among them). (3). To promote capital investment in member countries by following ways:

To provide guarantee on private loans or capital capital investment.  If private capital is not available even after providing loans for productive activities on considerate conditions. (4). To provide guarantee for loans granted to small and large units and other projects of member countries. (5). To ensure the implementation of development projects so as to bring about a smooth transference from a war time to peace economy. 


The President of the Bank, currently Robert B. Zoellick, Zoellick, is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. Traditionally, the Bank President has always been a US citizen nominated by the United States, the largest shareholder in the bank. The nominee is subject to confirmation by the Board of Governors, to serve for a five-year, renewable term. five-  

The Executive Directors, representing the Bank's member countries, make up the Board of Directors, usually meeting twice a week to oversee activities such as the approval of loans and guarantees, new policies, the administrative budget, country assistance strategies and borrowing and financing decisions. The Vice Presidents of the Bank are its principal managers, in charge of regions, sectors, networks and functions. There are 24 Vice-Presidents, three Senior Vice Presidents and Vicetwo Executive Vice Presidents.


The International Bank for Reconstruction and Development (IBRD) has 186 member countries, while the International Development Association (IDA) has 168 members. Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank (such as IDA).

Millennium Development Goals 

The World Bank's current focus is on the achievement of the Millennium Development Goals (MDGs), lending primarily to "middle"middleincome countries" at interest rates which reflect a small mark-up over its own borrowings from markcapital markets; while the IDA provides low or no interest loans and grants to low income countries with little or no access to international credit markets. 

The IBRD is a market-based nonprofit marketorganization, using its high credit rating to make organization, up for the relatively low interest rate on its loans, while the IDA is funded primarily by periodic "replenishments" (grants) voted to the institution by its more affluent member countries.

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