Since 1944, the World Bank has grown from a single entity to a tightly knit network of five development institutions.
Their mission has evolved from that of the International Bank for Reconstruction and Development (IBRD) as post-war reconstruction and development facilitator to that of global poverty alleviation in close collaboration with the International Development Association and other World Bank Group members.
According to the World Bank report, India's GDP growth can be seen at 8.3% in 2021-22
History & Background
The Bretton Woods Conference
The Conference, also known as the 'United Nations Monetary And Finance Cooperation', laid the foundation stones of the two great structures known as the International Bank of Reconstruction And Development (IBRD) and International Monetary Fund (IMF) in 1944.
The IBRD was founded with the objective to rebuild the countries affected by World War II, but later the goal shifted to heavy infrastructures such as dams, electrical grids and roads.
Around 44 countries attended the Bretton Woods Conference, but the United States and the United Kingdom were the most powerful participants and dominated the proceedings.
The World Bank was established with the goal of providing short-term loans to low-income countries that couldn't secure commercial credit. In addition, the Bank has the authority to grant loans and make policy changes to recipients.
Division of World Bank
International Bank For Reconstruction And Development
IBRD was established in 1944 with the objective to help Europe from World War II.
Members: The 189 member states own and govern the IBRD, with each country represented on the Board of Governors. The IBRD has its own executive leadership and team that manages the organization's day-to-day activities.
Income: The IBRD earns money every year from the return on its equity and the little margins it makes on loans.
This pays for World Bank operating expenditures, goes into reserves to bolster the balance sheet, and provides an annual transfer of payments to IDA, the International Development Association's development fund for the poorest countries.
IBRD established a link with the United Nations through a special agreement agreed by the General Assembly on November 15, 1947.
International Development Association
IDA is one of the organs of the world bank group established in 1960 to supplement the existing IBRD by lending to the world poorest countries.
The IDA's declared mission is to assist the world's poorest countries in expanding faster, more equitably, and sustainably in order to alleviate poverty.
International Finance Cooperation
It is the private sector arm of the World Bank Group, that offers private-sector equity financing without the need for government guarantees.
The IFC helps developing countries build their private sectors by providing loans, equity, structural finance, risk management products and services, and consulting services.
Objective: To provide individuals with an opportunity to escape poverty and improve their lives by mobilising additional sources of financing for private enterprise development.
Promoting free and competitive markets in developing countries. It also supports businesses and other private sector partners when gaps exist.
Contributing to the creation of high-paying jobs and the provision of essential services to the poor and vulnerable.
IFC achieves these objectives by acting at the firm level (direct investments, advisory services, and the IFC Asset Management Company), pushing for global collective action, increasing governance and standard-setting, and striving to build a business-friendly environment.
Multilateral Investment Guarantee Agency (MIGA)
MIGA was established in 1988 to promote foreign direct investment into developing countries. It was founded with a capital base of $1 billion.
It was founded in 1988 with a capital basis of $1 billion and is headquartered in Washington, DC.
Members: 177 countries are members of MIGA.
It encourages foreign direct investment into developing countries by insuring investors against political risk, advising governments on how to attract investment, spreading information through online investment information services, and resolving investor-government disputes.
International Centre For Settlement Of Investment Disputes (ICSID)
ICSID was established in 1966 in accordance with a convention on the settlement of investment disputes between countries and their residents (the ICSID Convention or Washington Convention).
The ICSID convention was signed by 158 nations as of May 2005.
The President of the World Bank has a secretariat that administers ICSID through a chapel.
Administration: Each member state is represented on the Administrative Council, which also adopts the yearly budget and approves the annual report presented to it.
Secretariat: The Secretary-General leads the Secretariat, which provides technical and administrative assistance to the proceedings.
It also provides governments and the general public with training and technical help. It also contributes to the development of investment legislation through publishing and communication.