‘The World Bank is an international financial institution that provides loans and grants to the
governments of poorer countries for the purpose of pursuing capital projects.[5] It comprises two
institutions: the International Bank for Reconstruction and Development (IBRD), and
the International Development Association (IDA). The World Bank is a component of the World
Bank Group.
The World Bank's most recent stated goal is the reduction of poverty.[6]
Contents
1World Bank Group
2History
o 2.11944–1974
o 2.21974–1980
o 2.31980–1989
o 2.41989–present
2.4.1Criteria
3Leadership
o 3.1Presidents
o 3.2Chief Economists
4Members
o 4.1Voting power
5List of 20 largest countries by voting power in each World Bank institution
6Poverty reduction strategies
7Global partnerships and initiatives
o 7.1Climate change
o 7.2Food security
8Training wings
o 8.1Global Operations Knowledge Management Unit
o 8.2Global Development Learning Network
8.2.1GDLN Asia Pacific
o 8.3JUSTPAL Network
9Country assistance strategies
10Clean Air Initiative
11United Nations Development Business
12Open data initiative
13Grants table
14Open Knowledge Repository
15Criticisms and controversy
o 15.1Structural adjustment
o 15.2Fairness of assistance conditions
o 15.3Sovereign immunity
o 15.4PricewaterhouseCoopers
o 15.5Coronavirus response in 2020
16See also
17References
18Further reading
19External links
World Bank Group[edit]
The World Bank Group is an extended family of five international organizations, and the parent
organization of the World Bank, the collective name given to the first two listed organizations, the
IBRD and the IDA:
International Bank for Reconstruction and Development (IBRD)
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
International Centre for Settlement of Investment Disputes (ICSID)
History[edit]
Harry Dexter White (left) and John Maynard Keynes, the "founding fathers" of both the World Bank and
the International Monetary Fund (IMF).[7]
The World Bank was created at the 1944 Bretton Woods Conference, along with the International
Monetary Fund (IMF). The president of the World Bank is, traditionally, an American.[8] The World
Bank and the IMF are both based in Washington, D.C., and work closely with each other.
The Gold Room at the Mount Washington Hotel where the International Monetary Fund and World Bank
were established
Although many countries were represented at the Bretton Woods Conference, the United
States and United Kingdom were the most powerful in attendance and dominated the
negotiations.[9]:52–54 The intention behind the founding of the World Bank was to provide temporary
loans to low-income countries which were unable to obtain loans commercially.[6] The Bank may
also make loans and demand policy reforms from recipients.[6]
1944–1974[edit]
In its early years the Bank made a slow start for two reasons: it was underfunded, and there were
leadership struggles between the US Executive Director and the President of the organization.
When the Marshall Plan went into effect in 1947, many European countries began receiving aid
from other sources. Faced with this competition, the World Bank shifted its focus to non-
European countries. Until 1968, its loans were earmarked for the construction of infrastructure
works, such as seaports, highway systems, and power plants, that would generate enough
income to enable a borrower country to repay the loan. In 1960, the International Development
Association was formed (as opposed to a UN fund named SUNFED), providing soft loans to
developing countries.
Before 1974, the reconstruction and development loans provided by the World Bank were
relatively small. The Bank's staff were aware of the need to instill confidence in the bank. Fiscal
conservatism ruled, and loan applications had to meet strict criteria.[9]:56–60
The first country to receive a World Bank loan was France. The Bank's president at the
time, John McCloy, chose France over two other applicants, Poland and Chile. The loan was for
US$250 million, half the amount requested, and it came with strict conditions. France had to
agree to produce a balanced budget and give priority of debt repayment to the World Bank over
other governments. World Bank staff closely monitored the use of the funds to ensure that the
French government met the conditions. In addition, before the loan was approved, the United
States State Department told the French government that its members associated with the
Communist Party would first have to be removed. The French government complied and
removed the Communist coalition government - the so-called tripartite. Within hours, the loan to
France was approved.[10]
1974–1980[edit]
From 1974 to 1980 the bank concentrated on meeting the basic needs of people in
the developing world. The size and number of loans to borrowers was greatly increased, as loan
targets expanded from infrastructure into social services and other sectors.[11]
These changes can be attributed to Robert McNamara, who was appointed to the presidency in
1968 by Lyndon B. Johnson.[9]:60–63 McNamara implored bank treasurer Eugene Rotberg to seek
out new sources of capital outside of the northern banks that had been the primary sources of
funding. Rotberg used the global bond market to increase the capital available to the bank.[12] One
consequence of the period of poverty alleviation lending was the rapid rise of Third World debt.
From 1976 to 1980, developing world debt rose at an average annual rate of 20%.[13][14]
The World Bank Administrative Tribunal was established in 1980, to decide on disputes between
the World Bank Group and its staff where allegation of non-observance of contracts of
employment or terms of appointment had not been honored.[15]
1980–1989[edit]
McNamara was succeeded by US President Jimmy Carter's nominee, Alden W. Clausen, in
1980.[16][17] Clausen replaced many members of McNamara's staff and crafted a different mission
emphasis. His 1982 decision to replace the bank's Chief Economist, Hollis B. Chenery,
with Anne Krueger was an example of this new focus. Krueger was known for her criticism of
development funding and for describing Third World governments as "rent-seeking states".
During the 1980s the bank emphasized lending to service Third-World debt, and structural
adjustment policies designed to streamline the economies of developing
nations. UNICEF reported in the late 1980s that the structural adjustment programs of the World
Bank had been responsible for "reduced health, nutritional and educational levels for tens of
millions of children in Asia, Latin America, and Africa".[18]
1989–present[edit]
Beginning in 1989, in response to harsh criticism from many groups, the bank began including
environmental groups and NGOs in its loans to mitigate the past effects of its development
policies that had prompted the criticism.[9]:93–97 It also formed an implementing agency, in
accordance with the Montreal Protocols, to stop ozone-depletion damage to the Earth's
atmosphere by phasing out the use of 95% of ozone-depleting chemicals, with a target date of
2015. Since then, in accordance with its so-called "Six Strategic Themes", the bank has put
various additional policies into effect to preserve the environment while promoting development.
For example, in 1991 the bank announced that to protect against deforestation, especially in the
Amazon, it would not finance any commercial logging or infrastructure projects that harm the
environment.
In order to promote global public goods, the World Bank tries to control communicable disease
such as malaria, delivering vaccines to several parts of the world and joining combat forces. In
2000 the bank announced a "war on AIDS" and in 2011 the Bank joined the Stop Tuberculosis
Partnership.[19]
Traditionally, based on a tacit understanding between the United States and Europe,
the president of the World Bank has always been selected from candidates nominated by the
United States. In 2012, for the first time, two non-US citizens were nominated.
On 23 March 2012, U.S. President Barack Obama announced that the United States would
nominate Jim Yong Kim as the next president of the Bank.[20] Jim Yong Kim was elected on 27
April 2012 and re-elected for a second five-year term in 2017. He announced that he will resign
effective 1 February 2019.[21] He was replaced on an interim basis by now former World Bank
CEO, Kristalina Georgieva.
