The World Bank Group

The World Bank Group is a group of five international organizations.

The World Bank Group gives advice and finance to member countries for economic development and reducing poverty. It is a non-profit-making international organization owned by member governments. The Group has its headquarters in Washington, D.C.. It also has offices in 124 other member countries.

The World Bank Group is made of the following five organizations :-

The International Bank for Reconstruction and Development (IBRD), established in 1945,

The International Finance Corporation (IFC), established in 1956,

The International Development Association (IDA), established in 1960,

The Multilateral Investment Guarantee Agency (MIGA), established in 1988, and

The International Centre for Settlement of Investment Disputes (ICSID), established in 1966.

The World Bank Group originated at Bretton Woods, New Hampshire. There many countries decided to establish an international organization to provide finance to member countries. The Bank came into existence on 27th December 1945. Its name was the International Bank for Reconstruction and Development. The Bank’s first loan was to France. The loan was of 250 million US Dollar. The purpose was to help France to again build industry and other important things like roads destroyed during the Second World War.

The activities of the World Bank Group cover many activities. Some of these activities are as follows :-

Development of health and education;

Development of agriculture and rural development;

Reduction of pollution;

Development of infrastructure, for example, development of facilities likes roads and electricity;

Development of system for good government.

The World Bank Group gives loans at low rate of interest to member countries. The member countries use the money received for any one of above or some other similar activity.

In short, the World Bank Group’s main mission is

1) to fight poverty, and

2) to improve the living standards of people in the developing world.

Besides giving direct money and finance, the World Bank Group provides advice and assistance to developing countries on almost every aspect of economic development.

In general, the World Bank Group is part of the United Nations System. But, member countries govern it through a board. The IBRD has 184 countries as its members. Other four organizations of the Group have between 140 to 176 member countries. A Board of 24 Executive Directors controls the activities of the World Bank Group. A President heads the Board.