Protracted report on the World Bank

“Protracted report on the World Bank” 

The World Bank: 

The World Bank (or the World Bank Group) is an international organization affiliated with the United Nations, though not accountable to either General Assembly or Security Council. Its primitive role is to provide financial and technical assistance to developing countries to alleviate poverty by instigating economic development. World Bank also offers advice, supervision, and aid for infrastructure to member states. It works together with International Monetary Fund (IMF) and World Trade Organization (WTO).

HEADQUARTERS: Washington D.C

PRESIDENT: Robert Malpass

DATE: 1944-present

TOTAL POPULATION: 7.762 Billion

TOTAL ECONOMY: 84.747 Trillion

KEY AREAS OF INVOLVEMENT:

Economic planning, credit, finance, technical assistance, infrastructure development, climate change issues, food security.

Purpose:

Its first goal is to end extreme poverty. It wants no more than 3% of people to live on $1.90 a day or less by 2030. Its second goal is to promote shared prosperity. It wants to improve the incomes of the bottom 40% of the population in each country. Since 1947, the World Bank has funded more than 12,000 projects. The World Bank is not a bank in the conventional sense of the word. Instead, it consists of two organizations. One is the International Bank for Reconstruction and Development, which provides loans, credit, and grants. The second is the International Development Association, which provides low- or no-interest loans and grants to low-income countries.

History:

The Second World War (WWII) left Europe devastated which perpetrated the Allied Powers to grant financial loans and grants. This compelled the world leaders to form an organization in 1944 at Breton Woods Conference.

Read More: https://youthdiplomacyforum.com/2022/04/14/extensive-report-on-international-maritime-organization/

Member and Non-member States:

The World Bank has 189 member states. The Five UN states which are not part of the World Bank are Cuba Andorra, Liechtenstein, Monaco, and North Korea. Kosovo is not a member of the UN but is a member of the IMF and the World Bank Group, including the IBRD and IDA.

Structure:

• Each country is represented by a Governor who is the foreign minister of that country. This Board of Governors convenes a meeting once a year.
• The governors delegate specific duties to 25 Executive Directors, who work on-site at the Bank. Five major countries—the United States, Japan, Germany, the United Kingdom, and France—appoint their own executive directors. The other countries are grouped into regions, each of which elects one executive director.
• President is always an American citizen.
• Vice president: The vice presidents of the Bank are its principal managers, in charge of regions, sectors, networks, and functions. There are two executive vice presidents, three senior vice presidents, and 24 vice presidents.

Read More about World Bank: https://www.worldbank.org/en/home

Constituent Institutions: 

1. The International Bank for Reconstruction and Development (IBRD)
2. The International Development Association (IDA)
3. The International Finance Corporation (IFC)
4. The Multilateral Investment Guarantee Agency (MIGA)
5. The International Centre for Settlement of Investment Disputes (ICSID).

The International Bank for Reconstruction and Development (IBRD) provides loans at market rates of interest to middle-income developing countries and creditworthy lower-income countries. The IDA, founded in 1960, provides interest-free long-term loans, technical assistance, and policy advice to low-income developing countries in areas such as health, education, and rural development.

Whereas the IBRD raises most of its funds on the world’s capital markets, the IDA’s lending operations are financed through contributions from developed countries. The IFC, operating in partnership with private investors, provides loans and loan guarantees and equity financing to business undertakings in developing countries. Loan guarantees and insurance to foreign investors against loss caused by noncommercial risks in developing countries are provided by the MIGA. Finally, the ICSID, which operates independently of the IBRD, is responsible for the settlement by conciliation or arbitration of investment disputes between foreign investors and their host developing countries.

CURRENT WORK IN THE WORLD:

• Aid to South Sudan
• Financial Aid Program

This is the Protracted Report on the World Bank by Ms. Sahab Humaira, a student of International Relations at the National University of Modern Languages, Islamabad. She is a member of the Youth Diplomacy Forum.