What are the Functions of the World Bank (2024)

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The World Bank provides financial and technical assistance to individual countries around the world. Banks are proud to be a unique financial institution that works to reduce poverty and support economic development. The World Bank provides low-interest loans, interest-free credits, and subsidies to eligible governments to support the development of individual economies. Borrowing and cash infusions help develop the global education, healthcare, government, infrastructure, and private sectors. The World Bank also shares information with various organizations through policy advice, research and analysis, and technical assistance. We provide advice and training to both the public and private sectors.

The World Bank provides funding, advice and other resources to developing countries in education, public security, health and other necessary areas. Countries, organizations and other institutions often work with the World Bank to sponsor development projects.

Organization associated with the World Bank

The World Bank Group consists of five international organizations that provide financing to developing countries. They are:

1. The International Bank for Reconstruction and Development (IBRD)
2. The International Development Association (IDA)
3. The International Finance Corporation (IFC)
4. The Multilateral Investment Guarantee Agency (MIGA)
5. The International Centre for Settlement of Investment Disputes (ICSID).

IBRD and IDA are sometimes collectively referred to as the World Bank. The IBRD has 189 member countries and the IDA has 173 member countries.

Objectives of World Bank

• Providing member countries with long-term capital for economic reconstruction and development
• Inducing long-term capital investment to ensure a balanced development of BOP balance and international trade.
• Promote capital investment in member countries in the following ways.

1. To provide a guarantee on capital investment or private loans.
2. If capital is not available even after the guarantee has been provided, IBRD will provide credit for production activities on favourable terms.

• Ensuring the implementation of development projects to bring about a smooth transition from wartime to a peaceful economy.

World Bank

Over the years, the World Bank has evolved from a single institution to a group of five unique and collaborative institutions, known collectively as the World Bank or the World Bank Group. The first organization is the International Bank for Reconstruction and Development (IBRD), an institution that funds government debt in middle-income countries. The second organization within the World Bank Group is the International Development Association (IDA), a group that provides interest-free loans to governments in poor countries.

The third organization, the International Finance Corporation (IFC), focuses on the private sector and provides investment finance and financial advisory services to developing countries. The fourth branch of the World Bank Group is the Multilateral Investment Guarantee Authority (MIGA), an organization that encourages foreign direct investment in developing countries. The fifth organization is the International Centre for Settlement of Investment Disputes (ICSID), which provides arbitration for international investment disputes.

Function of the world Bank

• The World Bank supports countries devastated by the war by providing loans for reconstruction.
• They provide a wealth of experience and the World Bank’s financial resources help poor countries promote economic growth, reduce poverty and achieve better living standards.
• They also support developing countries by providing development loans.
• The World Bank also lends to various governments for irrigation, agriculture, water supply, health and education.
• Encourage foreign investment in other organizations by guaranteeing loans.
• The World Bank also provides member countries with financial, financial and technical advice on all projects.
• In this way, by introducing various economic reforms, we are promoting the development of industries in developing countries.

World Bank CEO

David R. Malpass (@DavidMalpassWBG) was elected by the Board of Directors on April 5, 2019 as the 13th President of the World Bank Group. His five-year term began on April 9.

Previously, Mr. Malpas was Deputy Secretary of the US Treasury. Mr. Malpas is the G7 and G20 Deputy Finance Ministers, the World Bank-IMF Spring and Annual Meetings, the Financial Stability Board, the Organization for Economic Co-operation and Development, and the Foreign Private Investment Group.

Mr. Malpass pushed for a capital boost for the IBRD and IFC in 2018 as part of a reform programme that included sustainable lending methods, more effective capital management, and a focus on improving living standards in disadvantaged nations. He was also a driving force behind the Bank Group and IMF’s Debt Transparency Initiative, which aims to boost public financial disclosure and hence lessen the frequency and severity of debt crises.

Conclusion

The World Bank, or World Bank Group, is an international organisation linked with the United Nations (UN) that finances programmes that help member countries grow their economies. The bank, which is headquartered in Washington, D.C., is the world’s largest provider of financial aid to poor countries. It also provides technical support and policy advice, as well as oversees the implementation of free-market reforms on behalf of international creditors. It has a key role in regulating economic policy and modernising public institutions in developing nations, as well as establishing the global macroeconomic agenda, alongside the International Monetary Fund (IMF) and the World Trade Organization.