The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
2. Introduction
• The World Bank is an international organization that helps emerging
market countries to reduce poverty.
• Therefore, it is an international organization dedicated to providing
finance, advice, and researches to developing nations to aid their
economic advancement.
• The World Bank provides low-interest loans, interest-free credit, and
grants. It focuses on improving education, health, and infrastructure.
Moreover, it uses funds to modernize a country’s financial sector,
agriculture, and natural resources management.
• Its first goal is to end extreme poverty.
• It wants that no more than 3 percent of people to live on $1.90 a day
or less by 2030.
3. History
• Was formed on July 1944 following Bretton Woods Conference along
with IMF
• It was formed to rebuild Europe after World War II
• France was the first receiver of World Bank loan / US$250
• After Marshal Plan went into effect in 1947, the Word Bank shifted its
focus to non-European countries.
• From 1974 to 1980 the Bank concentrated on meeting the needs of
people in developing countries.
• Beginning in 1989, in response to harsh criticism from many groups, the
bank began including environmental groups and NGOs in its loans to
mitigate the past effects of its development policies that had prompted
the criticism.
4. Purpose
• The Bank purpose is to bridge the economic divide between poor and rich
countries. It does this by turning rich country resources into poor country
growth. It has a long-term vision to ‘ achieve sustainable poverty
reduction’.
• The Bank focuses on six areas:
• Overcome poverty by spurring growth, especially in Africa
• Help reconstruct countries emerging from war
• Provide a customized solution to help middle-class income countries remain out of
poverty.
• Spur governments to prevent climate change. It helps control diseases such as HIV,
and Malaria.
• Work with the Arab League on three goals; to improve education, build infrastructure,
and provide micro-loans to SMEs.
• Share its expertise with developing countries. Publicize its knowledge via reports and
its interactive online database
5. Structure
World Bank Group
World Bank
International Bank for
Reconstruction and Development
International Development
Association
International
Finance
Corporation
International Center for
Settlement of Investment
Disputes
Multilateral
Investment
Guarantee Agency
6. Structure
• International Bank for Reconstruction and Development
(IBRD) owned by 189 member countries.
• International Development Association (IDA) has
174 member countries
• International Finance Corporation (IFC) has 185 member
countries
• Multilateral Investment Guarantee Agency (MIGA) has
182 member countries
• International Centre for Settlement of Investment
Disputes (ICSID) has 156 member countries
7. Leadership
• The World Bank is like a cooperative, made up of 189 member countries. These
member countries, or shareholders, are represented by a Board of Governors, who
are the ultimate policymakers at the World Bank.
• Generally, the governors are member countries' ministers of finance or ministers of
development.
• The governors delegate specific duties to 25 Executive Directors, who work on-site at
the Bank. The five largest shareholders appoint an executive director, while other
member countries are represented by elected executive directors.
• The Boards of Directors consist of the World Bank Group President and 25 Executive
Directors.
• The president of the World Bank is, traditionally, an American.
• The President of the Bank is the president of the entire World Bank Group.
• The President is selected by the Board of Executive Directors for a five-year,
renewable term.
• Current President is David Malpass
8. Membership
• The International Bank for Reconstruction and Development
(IBRD) has 189member countries, while the International
Development Association (IDA) has 173members.
• Each member state of IBRD should also be 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).
• The World Bank or the World Bank Group is also a sitting
observer in the United Nations Development Group.
9. Shareholders of the World Bank
USA Japan China Germany France UK
Rest of the
World
contributions 16.7 7.8 5.3 4.5 4.1 4.1 57.5
0
10
20
30
40
50
60
70 Contributions of the Largest Shareholders 2021
189 members countries have subscribed to US$298 billion of subscribed capital (paid in capital + callable capital)
10. The Biggest Borrowers from the World
Bank
Peru India China Indonesia Ukraine Iraq Egypt Poland Colombia Kazakhstan
Lonas 2,850,000,000 2,820,000,000 1,982,000,000 1,700,000,000 1,560,000,000 1,550,000,000 1,550,000,000 1,504,040,000 1,400,000,000 1,080,000,000
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
The largest ten borrowers from the World Bank 2022