A person interested in international trade, business, foreign affairs, finance, international relations and related fields may wonder, “What is the World Bank Group?” This association of finance is backed by countries around the world, and its mission is to advance the economies and individuals who live in countries that have developing economies. Knowing what this group is could help a person understand economics, finance and international business to a better extent.
Related Resource: 50 Best Online Master of Finance Degree Programs
A Unique Global Partnership
The World Bank Group is a partnership of 189 countries from all over the world. Its staff members are from 170 different countries. It maintains 130 offices around the world. The group is composed of five separate institutions. As a whole, the group has a governing body, articles of organization and a membership agreement. So far, it has funded 12,000 projects and provided more than $45.9 billion in loans and grants to applicants who meet the guidelines for borrowing for specific approved projects.
What It Consists of
The group has five organizations under it. Those organizations are the International Bank for Reconstruction and Development, International Development Association, International Centre for Settlement of Investment Disputes, Multilateral Investment Guarantee Agency and International Finance Corporation. Each of those subdivisions has its own mission under the umbrella organization. Each subdivision also has its own governing head, assistants and structure. They all fit together under the whole group. Some of the administrative functions are performed at the group level in order to avoid duplicate efforts and to cut down on administrative expenses. The offices may house multiple parts of the group.
The Group’s Mission and Goals
The mission of the group is to end extreme poverty, encourage shared prosperity and support sustainable global development. The World Bank is formed by the International Bank for Reconstruction and Development and the International Development Association. The other three subdivisions work with the private sector in order to advance the group’s mission and goals. In order to achieve its mission and goals, the group provides technical assistance, advice, political risk assurance, dispute settlement mediation and financing. As a part of their dispute settlement services, they help the private sector as well as lending institutions, explains the World Bank Organization.
Services Provided By the Group
The World Bank finances a wide variety of projects. Their financing might be in the form of a low-interest loan or a grant, depending on the scope and situation. Some of the projects that it has financed include agricultural development, public service infrastructure and healthcare infrastructure. The World Bank also offers zero and low-interest credits. These can be used for education, health, infrastructure and the development of a country’s private business sector. The whole group offers policy advice to member countries. That advice might include research, analysis and technical assistance. The group also evaluates the results of the projects they fund.
Becoming familiar with this organization could help a person decide if they want to aim their career in this direction. It is also important for a person in international relations, business or finance to know how people in developed countries are working to lift up the citizens of developing nations. Knowing “What is the World Bank Group?” is part of a good foundation for understanding world finance, trade, economics and more.
