Aim

  • To reduce global poverty and support sustainable development through financial and technical assistance.

Formation

Headquarters

  • Washington, D.C., USA.

Key Activities

  • Providing loans for projects that promote economic development and reduce poverty.
  • Funding major infrastructure projects (e.g., roads, water systems, and schools).
  • Offering technical expertise to developing nations.

Five Institutions of the World Bank Group

  • International Bank for Reconstruction and Development (IBRD): The foundational arm of the bank. It provides loans, guarantees, and advisory services to middle-income and creditworthy low-income sovereign governments.
  • International Development Association (IDA): Focuses exclusively on the world’s poorest countries. It provides grants and “concessional” loans (credits with zero or ultra-low interest and long repayment periods).
  • International Finance Corporation (IFC): The private-sector arm of the group. It promotes sustainable economic growth in developing countries by financing private sector investments, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.
  • Multilateral Investment Guarantee Agency (MIGA): Promotes foreign direct investment (FDI) into developing nations by offering political risk insurance (guarantees against non-commercial risks like war, terrorism, civil disturbance, and expropriation) to investors and lenders.
  • International Centre for Settlement of Investment Disputes (ICSID): An autonomous international arbitration institution designed to facilitate the conciliation and arbitration of investment disputes between foreign investors and host states.

 

Source: The Hindu