Economics Money and Banking
The World Bank
The World Bank, when you first hear the name it makes you think that it is a traditional international bank. That is not true though; The World Bank isn’t exactly what you would think it is. In reality, it is a group that is compiled of five international organizations that facilitate poverty stricken countries all across the world for developing economic growth and the elimination of poverty. The five organizations that combine to form The World Bank are: The International Bank for Reconstruction and Development, The International Finance Cooperation, The International Development Association, The Multilateral Investment Guarantee Agency, and The International Center for Settlements of Investment Disputes. The World Bank has supported and provided for countries across the world and has been a vital part of the worlds improving economies. Since inception in 1944, the World Bank has expanded from a single institution to a closely associated group of five development institutions. Their mission evolved from the International Bank for Reconstruction and Development (IBRD) as a facilitator of post-war reconstruction and development to the present day mandate of worldwide poverty alleviation in close coordination with their affiliate, the International Development Association, and other members of the World Bank Group, the International Finance Corporation (IFC), the Multilateral Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID). They are based solely in Washington, DC, where their staff includes economists, public policy experts, sector experts and social scientists and now more than a third of the staff is based in country offices (1.The World Bank). The World Bank focuses only on developing countries with the ambitions to improve certain things such as agriculture for example. It provides loans to countries that are members of The World Bank and to those countries that are poverty stricken they distribute grants out to them. Reconstruction is an important part of their work. However, the global challenges in the world compels them to focus on; poverty reduction and the sustainable growth in the poorest countries, especially in Africa; solutions to the special challenges of post-conflict countries and fragile states; development solutions with customized services as well as financing for middle-income countries; regional and global issues that cross national borders--climate change, infectious diseases, and trade; greater development and opportunity in the Arab world; and pulling together the best global knowledge to support the development. At today's World Bank, poverty reduction through an inclusive and sustainable globalization remains the overarching goal of their work (1.The World Bank). The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 187 member countries. IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in 1947. The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients’ good borrowing terms. The initial authorized capital of the bank was 12 million. The lending for reconstruction ended in 1967, and into the present the Bank remains the largest source of development assistance. This assistance is intended primarily for projects that were unable to attract private investment....
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