World Bank and International Monetary Fund (IMF) also known as Bretten Woods twins, were formed in 1944 at United Nations Monetary and Financial conference of 45 countries. In this article we will talk about World bank and it’s agencies working under it, in different areas, collectively called as World Bank Group.
- THE WORLD BANK – Also known as International Bank for Reconstruction and Devolopment (IBRD) was set up in july 1944. The main objective of World Bank is to finance member countries in long term investments. The World Bank’s stated official goal is the reduction of poverty.
- INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) – IDA is also known as Soft Loan Window of Word Bank. it is called so because it helps poor countries to reduce poverty by providing loans at concessional rates. It was established in 1960.
- INTERNATIONAL FINANCE CORPORATION (IFC) – An affiliate of word bank, established in 1956 provides risk capital loans to private industrial players in developing countries. It is aimed at upscaling sustainable private investment inorder to reduce poverty and thus, improving standard of living.
- MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA) – Established in 1988, MIGA provides credit guarantee and political risk insurance cover against loan taken by countries. It encourages confident investment in developing countries.
- INTERNATIONAL COURT FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID) – Set up in 1965 for providing institutional and procedural support in the matters of dispute, which may arise in the process of investment and trade among member countries.
Voting in World Bank
Member countries of the World Bank are allocated votes at the time of membership and subsequently for additional subscriptions to capital. The member countries are provided one vote for each share of capital stock held by them.