What does the World Bank actually do?
The World Bank is an international financial institution that provides loans to developing countries of the world for capital projects.
Its 5 institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
The World Bank Group consists of 5 institutions:
1) International Bank for Reconstruction and Development (IBRD)
2) International Development Association (IDA)
3) International Finance Corporation (IFC)
4) Multilateral Investment Guarantee Agency (MIGA)
5) International Centre for Settlement of Investment Disputes (ICSID)
Together, IBRD and IDA form the World Bank, which provides financing,
policy advice, and
technical assistance to governments of developing countries.
IDA focuses on the world’s poorest countries, while
IBRD assists middle-income and creditworthy poorer countries.
IFC, MIGA, and ICSID focus on strengthening the private sector in developing countries.
The World Bank has 2 stated goals that it aims to achieve by 2030.
1) The first is to end extreme poverty by decreasing the amount of people living on less than $1.90 a day
to below 3% of the world population.
2) The second is to increase overall prosperity by increasing the income growth in the bottom 40% of
the world's population.
The Bank Group works with :
the private sector,
civil society organizations,
regional development banks,
think tanks, and
other international institutions
on ISSUES ranging from:
All of these efforts support the Bank Group’s twin goals of ending extreme poverty and boosting shared prosperity of poor countries.
The President of the Bank is the President of the entire World Bank Group.
The president, currently Jim Yong Kim, is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank.
Traditionally, the President of the Bank 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 Executive Directors, to serve for a 5 year, renewable term.
The vice presidents of the Bank are its Principal Managers, in charge of regions, sectors, networks and functions.
There are 2 Executive Vice Presidents,
3 Senior Vice Presidents, and
24 Vice Presidents
The Boards of Directors consist of the World Bank Group President and 25 Executive Directors.
The IBRD has 189 member countries, while
The IDA has 173 member countries.
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).
In 2010 voting powers at the World Bank were revised to increase the voice of developing countries, notably China.
The countries with most voting power are now the:
United States (15.85%),
United Kingdom (3.75%),
Saudi Arabia (2.77%) and