|
|
The World Bank was created at Bretton Woods in 1944 and started operation on 25 June 1946 with a mission to reconstruct and develop in the post war period.
Today World Bank group has five important agencies with a sole aim of reducing poverty and promoting socio-economic development over the world.
Structure Of World Bank
All the member countries of the World Bank are its own shareholders. All the shareholders are generally represented by the board of governors. Governors in the member countries are mainly finance ministers or development ministers. Board of Governors in the World Bank group and international monetary fund meet once in a year.
Governors delegate 24 Executive Directors with specific duties. Each director may represent one country or a group of countries. Countries such as France, Japan, Germany, United States and United Kingdom are largest shareholders.
The president of the World Bank takes the responsibilities in the management system. The Executive directors of the bank meet to discuss banks business, approval of loans and investment and new policies.
World Bank Agencies
Five important agencies of World Bank group are as follows:
International Bank for Reconstruction and Development (IBRD)
International Development Agency (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guaranty Agency (MIGA)
International Centre For Settlement of Investment Disputes (ICSID)
|
IBRD was established in 1945.
IFC was established in 1956.
IDA was established in 1960.
MIGA was established in 1988.
ICSIA was established in 1966
World Bank Lending
Both International Bank for Reconstruction and Development and International Development Association provide loans with a lower and sometimes no interest rates. Loans are generally granted to countries having limited access to international credit market.
Lending process of the World Bank generally includes generating funds and distributing the same in the name of loans.
Lending by the IBRD to developing countries is made by selling AAA-rated bonds in the international financial market. Here the IBRD earns some margins on this lending. It also gets income from lending its own capital accumulated over the years from bank's member countries.
IDA provides loans to the poorest countries and is replenished in every three years by 40 donor countries.
There are generally two types of loans and credits types used by IBRD and IDA such as investment loans and development policy loans.
Investment loans meant for social and economic related development projects, while development policy loans are for supporting country's institutional reforms.
Grants are for encouraging innovations and raising participation in the projects.
World Bank Member Countries
| Afghanistan |
| Albania |
| Algeria |
| Angola more |
|