THE WORLD BANK:

The World Bank is an international financial institution that provides loans and grants to the
governments of low- and middle-income countries . The World Bank is the collective name for
the International Bank for Reconstruction and Development (IBRD) and International
Development Association (IDA), two of five international organizations owned by the World
Bank Group. It was established along with the International Monetary Fund at the 1944 Bretton
Woods Conference. After a slow start, its first loan was to France in 1947.

As of 2022, the World Bank is run by a president and 25 executive directors, as well as 29
various vice presidents. IBRD and IDA have 189 and 174 member countries, respectively. The
U.S., Japan, China, Germany and the U.K. have the most voting power. The bank aims loans at
reduce poverty and build shared prosperity in developing countries.  

The World Bank Group consists of five organizations:

 The International Bank for Reconstruction and Development

The International Bank for Reconstruction and Development (IBRD) lends to

governments of middle-income and creditworthy low-income countries.
 The International Development Association

The International Development Association (IDA) provides interest-free loans — called

credits — and grants to governments of the poorest countries.

 Together, IBRD and IDA make up the World Bank.

 The International Finance Corporation

The International Finance Corporation (IFC) is the largest global development institution
focused exclusively on the private sector. We help developing countries achieve
sustainable growth by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
 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.

History of The World Bank:

 In July 1944 – one year before the end of World War II – delegates from 44 countries met
for the United Nations Monetary and Financial Conference held at the Mount
Washington Hotel in Bretton Woods, New Hampshire. The intellectual leaders at the
conference were John Maynard Keynes , and Harry Dexter White .
The majority of time and effort was spent on the IMF Commission under Harry Dexter
White’s leadership. The work of the World Bank Commission, on the other
hand, occurred only in the last few days of the conference.

THE WORLD BANK AS BUILDER AND ENGINEER ( 1946 – 1967 )

The Bank’s first loan was to France and loans to other European countries followed. But when
the 1947 Marshall Plan took over post-war reconstruction efforts in Europe, the Bank quickly
shifted to funding infrastructure projects around the world in sectors such as
power, irrigation, and transportation. The Bank also initiated a technical assistance program and
in 1955 established the Economic Development Institute to provide training to officials from
member countries.
During the early years, the Bank evolved to meet the needs of its members. The IFC’s first loan
was to Brazil, in the amount of $2M USD, for the manufacture of electrical equipment.
THE WORLD BANK CONFRONTS POVERTY ( 1968 - 1981 )

By the 1970s, over 40% of people in developing countries lived in absolute poverty. In response,
the World Bank’s projects aimed to help the poor directly. These concepts transformed the Bank
into the institution focused on development that we know today.
Lending to member countries increased twelve-fold between 1968 and 1981, and expanded into
new sectors: environment, rural development, water, sanitation, education, and others. The first
loan for the environment was in 1971 for pollution control in Brazil, and the Bank subsequently
built environmental safeguards into its process.

ECONOMIES IN TRANSITION AND STRUCTURAL ADJUSTMENT ( 1982 - 1994 )

In 1991, the Global Environment Facility was established to further the focus on safeguarding
the environment, and in 1996 the Heavily Indebted Poor Countries debt initiative was approved
to enable poor countries to focus on sustainable development and reducing poverty.
1995 – NOW

During the late 1990s, the World Bank moved back into the areas of conflict prevention, post-
conflict reconstruction, and assistance for countries to redirect their economies after major
political change. Wolfensohn gave a ground-breaking speech on the «cancer or corruption» at the
1996 annual meetings, and under his leadership the focus on country accountability and
ownership of development work became central with the Comprehensive Development
Framework.

The World Bank In Vietnam

Vietnam’s shift from a centrally planned to a market economy has transformed the country from
one of the poorest in the world into a lower middle-income country. Vietnam now is one of the
most dynamic emerging countries in East Asia region.
As a member, Viet Nam has a strong relationship with the World Bank. Most projects and
programmes funded by the World Bank for Viet Nam have focused mainly on areas such as
agriculture, energy, transport. health, education, banking and finance. These programmes and
projects have effectively contributed to Viet Nam's development.