The World Bank Group is a cohesive international institution of five organizations. The main objective of this institution is to make leveraged loans to developing and underdeveloped countries. It was inaugurated with the intention to eradicate poverty and empower on July 4, 1944. It came into formal existence on December 27, 1945, just after the Bretton Woods ratification arrangements. It has it’s headquartered at Washington D. C., United States of America.
At present, there are 193 United Nations members who are World Bank Group members. They participate at least at the minimum, according to their capacity in International Bank for Reconstruction and Development (IBRD). Membership of WBG gives them certain rights, including the most fundamental right of voting. The best part is that the vote of each and every member has equal value. However, there are additional votes which depend on the financial contributions to emphasize their weight age.
If things are perceived in a more orderly way, it is evident to all that the World Bank is part of the United Nations Systems. It must also be noted that the governance and the organizational structure is extremely different than other UN organizations. The WBG makes profits but this profit is kept reserved. These reserved funds are then given to countries in aid, especially to eliminate poverty. The major decisions are taken through voting. The Presidential elections are held. The President of the United States of America nominates the President for WBG as it is the largest shareholder in the bank. Currently, as on August 2017, Jim Yong Kim is the President of the World Bank and Kyle Peters is the Managing Director (MD).
It’s five organizations are the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the International Centre for Settlement of Investment Disputes (ICSID) and the most prominent one International Bank for Reconstruction and Development (IBRD). The IBRD and the IDA are sometimes collectively referred as the World Bank.
Goals & Objectives
The main objective of the World Bank Group is to elevate and eradicate poverty. It constantly provides loans and other aids to the developing and underdeveloped countries to foster against poverty. The bank has been up brought with the idea to achieve shared prosperity. Thus, the World Bank is trying to reduce the disparity among the developed, under developed and developing nations. In the autonomous sector of the country’s economy as a whole, loans and grants for a specific project are often viewed as wider policies.
Facts & Figures
The World Bank Group provided around 61 billion US $ in the form of loans and assistance to the developing and the transition countries in the fiscal year of 2014. However, this figure increased a year later. The total loan as of 2015 for the last ten years through Development Policy Financing (DPF) was approximately expressed as 117 billion US $. The World Bank has always laid aids for fighting against death causing disease. It has promised almost 2 billion through loans, grants and other programs to foster against HIV/ AIDS.