The World Bank is a group of international financial organizations around the globe aimed to provide assistance to its 187 member countries.
The World Bank is a vital source of financial and technical assistance to developing countries around the world. Their mission is to fight poverty with passion and professionalism for lasting results and help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors.
Established in 1944, the World Bank Group is headquartered in Washington, D.C. They have more than 10,000 employees in more than 120 offices worldwide.
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. They 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.
Products and Services
The World Bank Group offers a wide range of solutions to meet development challenges, all designed to support governments in reducing poverty and boosting prosperity:
Investment Project Financing provides IBRD loans, IDA credit/grants, and guarantee financing to governments for activities that create the physical/social infrastructure necessary to reduce poverty and create sustainable development. Development Policy Financing provides IBRD loans, IDA credit/grants. It guarantees budget support to governments or a political subdivision for a program of policy and institutional actions to help achieve sustainable, shared growth and poverty reduction. Program-for-Results links disbursement of funds directly to the delivery of defined results, assisting countries to improve the design and implementation of their development programs and achieve lasting results by strengthening institutions and building capacity. Trust funds and grants allow scaling up activities, notably in fragile and crisis-affected situations; enable the Bank Group to provide support when their ability to lend is limited; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that are later mainstreamed into their operations. MIGA and IFC provide private sector options for financing, direct investment, and guarantees.