World Bank Group

World Bank Group

Overview

The World Bank Group is the world’s largest international development institution, focused on reducing global poverty and promoting shared prosperity. Headquartered in Washington, D.C., it brings together finance, knowledge, and technical expertise to support economic development in member countries.

History and Purpose

Created on December 27, 1945, as part of the Bretton Woods agreement, the World Bank Group’s mission is to provide financial products and policy advice that help countries reduce poverty, improve living standards, and achieve sustainable development.

Structure

The World Bank Group comprises five institutions with distinct roles:
* International Bank for Reconstruction and Development (IBRD) — provides loans and financial products to middle-income and creditworthy low-income countries.
* International Development Association (IDA) — offers concessional loans and grants to the poorest countries.
* International Finance Corporation (IFC) — supports private sector development through investments and advisory services.
* Multilateral Investment Guarantee Agency (MIGA) — issues political risk insurance and credit enhancement to encourage foreign investment.
* International Centre for Settlement of Investment Disputes (ICSID) — facilitates arbitration and dispute resolution for international investment.

The IBRD and IDA together are commonly referred to as the World Bank.

Membership and Governance

The Group has 189 member countries. The United States is its largest shareholder. Historically, the U.S. president has nominated the World Bank president, and the institution’s headquarters remains in Washington, D.C.

Activities and Focus Areas

The World Bank Group provides:
* Discounted loans, grants, and guarantees
* Technical assistance and policy advice
* Capacity building and knowledge services

Priority sectors include health, education, agriculture, infrastructure, and responses to economic shocks and crises.

2030 Goals

The World Bank Group’s twin goals for 2030 are:
* End extreme poverty — reduce the share of the global population living on less than $1.90 per day to 3% or lower.
* Promote shared prosperity — raise incomes of the bottom 40% in every country.

Crisis Response

In response to the COVID-19 pandemic, the World Bank Group committed a large-scale crisis package (more than $125 billion in 2021) to support health systems, social protection, and economic recovery in over 100 countries.

Key Takeaways

• The World Bank Group is the foremost international development institution, founded in 1945.
• It consists of five institutions (IBRD, IDA, IFC, MIGA, ICSID) that together support public and private-sector development.
• It provides loans, grants, guarantees, and advisory services focused on poverty reduction and shared prosperity.
• Its 2030 targets aim to end extreme poverty and boost incomes for the poorest 40% in each country.
• The Group plays a major role in global crisis responses, including the COVID-19 pandemic.

Sources

• World Bank — About the World Bank
• World Bank — Member Countries
• World Bank Group — Poverty and Shared Prosperity
• World Bank Group — COVID-19 response and vaccinations for developing countries