The World Bank

The World Bank is a global organization created in 1944 at the Bretton Woods Conference alongside the International Monetary Fund. The World Bank has two divisions: the International Bank for Reconstruction and Development and the International Development Association. They provide loans and grants, primarily to poorer countries, that are financed by wealthier nations. Currently, they have 184 member countries, and their main goal is to reduce poverty. The World Bank plays an essential role in the global economy and strives to develop countries to benefit from international commerce and improve living standards. Read pages 7-11 and browse the other sections to become familiar with the World Bank's structure and purpose.

Through its loans, policy advice, and technical assistance, the World Bank supports a broad range of programs aimed at reducing poverty and improving living standards in the developing world. It divides its work between IBRD, which assists middle-income and creditworthy poorer countries, and IDA, which focuses exclusively on the world’s poorest countries. Working through both IBRD and IDA, the Bank uses its financial resources, skilled staff, and extensive knowledge base to help each developing country achieve stable, sustainable, and equitable growth.

IBRD and IDA share the same staff and the same headquarters, report to the same senior management, and use the same standards when evaluating projects. Some countries borrow from both institutions. For all its clients, the Bank emphasizes the need for   

  • investing in people, particularly through basic health and education;  
  • focusing on social development, inclusion, governance, and institution building as key elements of poverty reduction;  
  • strengthening governments’ ability to deliver quality services efficiently and transparently; 
  • protecting the environment;
  • supporting and encouraging private business development; and
  • promoting reforms to create a stable macroeconomic environment that is conducive to investment and long-term planning.
Bank programs give high priority to sustainable social and human development and to strengthened economic management, and they place an emphasis on inclusion, governance, and institution building. Additionally, within the international community, the Bank has helped build consensus around the idea that developing countries must take the lead in creating their own strategies for poverty reduction. It also plays a key role in helping countries implement the MDGs, which the United Nations (UN) and the broader international community seek to achieve by 2015.

In conjunction with IFC, the Bank is also helping countries strengthen and sustain the fundamental conditions they need to attract and retain private investment. With Bank support – both lending and advice – governments are reforming their overall economies and strengthening financial systems. Investments in human resources, infrastructure, and environmental protection also help enhance the attractiveness and productivity of private investment.