The World Bank is a United Nations International Financial institution that provides loans to developing countries for capital programs. It’s a component of the World Bank Group and a member of the United Nations development Group. The World Bank was formed at the July 1944 Bretton Woods conference together with the International Monetary Fund (IMF). Both the World Bank and the International monetary Fund are based in Washington DC and work closely with each other.
The World Bank is composed of two Institutions, International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). The International Bank for Reconstruction and Development aims to reduce poverty in middle-class countries by promoting sustainable development through loans, guarantees, risk management products, analytics and advisory services. On the other hand, the International Development Association is the part of the World Bank that helps the world’s poorest countries.
This International Organization has 188 International Bank for Reconstruction and Development member countries and 172 International Development Association member countries. Its’ Treaty Legal status and crediting focus says a lot about the motto, “Working for a World Free of Poverty”. World Banks’ main organ is the Board of directors but overall supremacy comes from its President, Mr. Jim Yong Kim. To become a member of the World Bank, a country must first join the International Monetary fund. The World Bank relays all information about funding for developing countries on their website, www.worldbank.org
The World Bank is an investment bank that intermediates between investors and borrowers. Its goals are divided into two categories, poverty reduction and economic and social development with the main function of providing low interest loans and credit to the least developed countries. This serves a great purpose to developing countries which need these funds.
World Bank offers loans for reconstruction to war devastated countries. War brings financial and economic instability to the affected country. Countries going through civil and ethnic wars need to reconstruct and start again from scratch. This calls for funding and World Bank comes in.
Underdeveloped countries are funded by the World Bank in order to achieve sustainability. Developing countries need these funds in order to improve the economy. Governments across the world get loans for Agriculture, Infrastructure, Education, Health and energy. Loans are also provided to private concerns for specified projects.
World Bank promotes foreign investment by guaranteeing loans provided by other organizations. This encourages funding even from other interested countries who want to help out. So long as a country is backed by the World Bank, other developed countries are open to funding as they have already been recommended.
The World Bank is important in providing technical, economic and monetary advice to member countries encouraging industrial development of under developed countries by promoting economic stability.
World development and increased productivity is the main focus of the World Bank. This involves raising the standards of living in the less developed counties of its membership and assist in the international bank for reconstruction and development.
The World Bank is a financial institution that gives loans to developing countries. This helps nations get funds for capital programs. Such funding brings sustainability and improves the economy. Apart from offering monetary assistance to developing countries, the World Bank provides technical and economic advice to member countries.