WORLD BANK AND INTERNATIONAL FINANCE CORPORATION

 World Bank
 Descriptions about World Bank
- The World Bank is an international organization dedicated to providing financing,
advice, and research to developing nations to aid their economic advancement.
- The World Bank and International Monetary Fund were founded simultaneously
under the Bretton Woods Agreement with generally the same focus to help serve
international governments globally.
- The World Bank has expanded to become known as the World Bank Group with
five cooperative organizations, sometimes known as the World Banks.
- The World Bank Group offers a multitude of proprietary financial assistance
products and solutions for international governments as well as a range of
research-based thought leadership for the global economy at large.

 Understanding the World Bank

- The World Bank is a provider of financial and technical assistance to individual
countries around the globe.
- The bank considers itself a unique financial institution that sets up partnerships to
reduce poverty and support economic development.
- The World Bank supplies qualifying governments with low-interest loans, zero-
interest credits, and grants, all for the purpose of supporting the development of
individual economies. Debt borrowings and cash infusions help with global
education, healthcare, public administration, infrastructure, and private-sector
development.
- The World Bank also shares information with various entities through policy
advice, research and analysis, and technical assistance. It offers advice and
training for both the public and private sectors.

 World Bank Groups

- With 189 member countries, staff from more than 170 countries, and offices in
over 130 locations, the World Bank Group is a unique global partnership: five
institutions working for sustainable solutions that reduce poverty and build
shared prosperity in developing countries.
a. International Bank for Reconstruction and Development (IBRD) - an
institution that provides debt financing to governments that are considered
middle income.
b. International Development Association (IDA) - a group that gives interest-
free loans to the governments of poor countries.
c. International Finance Corporation (IFC) - focuses on the private sector and
provides developing countries with investment financing and financial
advisory services.
d. Multilateral Investment Guarantee Agency (MIGA) - an organization that
promotes foreign direct investments in developing countries.
e. International Centre for Settlement of Investment Disputes (ICSID) - an
entity that provides arbitration on international investment disputes.
 - Missions of the World Bank Group
a. To end extreme poverty: By reducing the share of the global population
that lives in extreme poverty to 3 percent by 2030.
b. To promote shared prosperity: By increasing the incomes of the poorest 40
percent of people in every country.
- The World Bank Group works in every major area of development. It provides a
wide array of financial products and technical assistance, and we help countries
share & apply innovative knowledge and solutions to the challenges they face.
- The World Bank Group works in more than 170 countries, working with
partners in the public and private sectors in their efforts to end poverty and
tackle some of the most pressing development challenges.

 International Finance Corporation

 Descriptions about International Finance Corporation (IFC)
- IFC provides financing of private-enterprise investment in developing countries
around the world, through both loans and direct investments.
- Affiliated with the World Bank, it also provides advisory services to encourage the
development of private enterprise in nations that might be lacking the necessary
infrastructure or liquidity for businesses to secure financing.
- IFC was founded in 1956 on a bold idea: that the private sector has the potential
to transform developing countries. Since then we’ve expanded to more than 100
countries, coining the term “emerging markets” and pioneering new markets such
as sustainable bonds.
 Mission of IFC
- Advance economic development by encouraging the growth of private
enterprise in developing countries.
 Core Values
Impact Integrity Respect
Teamwork Innovation
 Ways in which IFC helps countries develop their private sectors
- Investing in companies through loans, equity investments, debt securities and
guarantees.
- Mobilizing capital from other lenders and investors through loan participations,
parallel loans and other means.
- Advising businesses and governments to encourage private investment and
improve the investment climate.
 How the International Finance Corporation Works?
- The IFC was established in 1956 as a member of the World Bank Group, focused
on investing in economic development.
- It claims to be the largest global development institution focused on the private
sector in developing countries.
- The IFC says it also seeks to ensure that private enterprises in developing
nations have access to markets and financing.
- The IFC's most recent stated goals include the development of sustainable
agriculture, expanding small businesses' access to microfinance, supporting
infrastructure improvements, as well as promoting climate, health, and
education policies.