The
World Bank Group (WBG) is a family of five
international organizations responsible for providing
finance and advice to countries for the purposes of economic development and eliminating poverty. The Bank came into formal existence on
27 December 1945 following international ratification of the
Bretton Woods agreements, which emerged from the
United Nations Monetary and Financial Conference (
1 July –
22 July 1944). Commencing operations on
25 June 1946, it approved its first loan on
9 May 1947 ($250m to
France for postwar reconstruction, in real terms the largest loan issued by the Bank to date). Its five agencies are
The term "World Bank" generally refers to the IBRD and IDA, whereas the World Bank Group is used to refer to the institutions collectively.[1]
The World Bank's (i.e. the IBRD and IDA's) activities are focused on developing countries, in fields such as human development (e.g. education, health), agriculture and rural development (e.g. irrigation, rural services), environmental protection (e.g. pollution reduction, establishing and enforcing regulations), infrastructure (e.g. roads, urban regeneration, electricity), and governance (e.g. anti-corruption, legal institutions development). The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries. Loans or grants for specific projects are often linked to wider policy changes in the sector or the economy. For example, a loan to improve coastal environmental management may be linked to development of new environmental institutions at national and local levels and the implementation of new regulations to limit pollution.
The activities of the IFC and MIGA include investment in the private sector and providing insurance respectively.
