|
Globalization The
World Bank
is not a “bank” in the common sense. It is one of the United Nations’
specialized agencies, and is made up of 184 member countries. These countries
are jointly responsible for how the institution is financed and how its money is
spent. Along with the rest of the development community, the World Bank centers
its efforts on reaching the Millennium Development Goals, agreed to by UN
members in 2000 and aimed at sustainable poverty reduction.
The "World Bank" is the name that has come to be used for the
International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA). Together these organizations
provide low-interest loans, interest-free credit, and grants to developing
countries.
Some 10,000 development professionals from nearly every country in the world
work in the World Bank's Washington DC headquarters or in its 109 country
offices.
The world’s low-income countries generally cannot borrow money in
international markets or can only do so at high interest rates. In addition to
direct contributions and loans from developed countries, these countries receive
grants, interest-free loans, and technical assistance from the World Bank to
enable them to provide basic services. In the case of the loans, countries have
35-40 years to repay, with a 10-year grace period.
In fiscal 2004 IDA provided $9 billion in financing for 158 projects in 62
low-income countries.
In addition to IBRD and IDA, three other organizations make up the World Bank
Group. The International Finance Corporation (IFC) promotes private sector
investment by supporting high-risk sectors and countries. The Multilateral
Investment Guarantee Agency (MIGA) provides political risk insurance
(guarantees) to investors in and lenders to developing countries. And the
International Centre for Settlement of Investment Disputes (ICSID) settles
investment disputes between foreign investors and their host countries.
| 
