The World Bank Group (or International Bank) is the name of a multilateral lending institution that includes several financial institutions that are very closely related. Improving the living standards of states that are developing with the financial support of developed countries is their common goal.
After ratification of the Bretton Woods Agreement by most of the participating countries, in 1945, on December 27, the World Bank was created.
The World Bank Group began operating in June 1946. In 1947, on May 9, the first loan was issued. For the resumption of the economy, which fell into decay after the hostilities, France received two hundred and fifty million dollars.
The World Bank Group is tasked with fostering sustained economic growth, which in developing countries should lead to poverty reduction. All this is done through development programs and long-term financing to increase production. At the same time, structural transformations will be priority for him: investments in infrastructure, healthcare and education reform, privatization, trade liberalization. All loans provided by the World Bank Group are guaranteed by the relevant government and are provided in order to carry out specific projects, except in special circumstances.
For the recipient country, the main advantage of working with a group of the World Bank is that other organizations give higher interest rates on loans, and the international bank gives significantly lower interest.
The IBRD, or the World Bank for Reconstruction and Development, is considered the main lending institution of the World Bank; it is a specialized agency of the United Nations, an interstate investment institution. IBRD is located in Washington.
IBRD relies on capital generated by member countries. It is able to accumulate the resources of the world market and capital and to issue loans to states with limited access to this market, thus fulfilling the role of intermediary. Loans can be issued either directly to the government, or under its guarantee.
IBRD promotes human development; implements financial programs, works with the private sector, infrastructure; contributes to social development and ecology; struggling with poverty, engaged in economic management.
World banks provide financial support to states using the funds invested in them.
A different number of countries participate in the five financial institutions of the World Bank. One hundred eighty-four states are members of the International Bank for Reconstruction and Development. That is, practically all countries of the world are included here. One hundred sixty-three states are members of the International Development Association. One hundred and seventy-five states - to the International Finance Corporation.
Russia became a member of the World Bank Group with all rights in nineteen ninety-two in June.
In order to make strategic decisions, according to the charter of the World Bank, it is necessary to have at least eighty-five percent of the votes of the shareholders. The largest shareholders of the Interstate Bank are the following countries: France, Great Britain, Germany, Japan and the USA. A framework document used as the basis for collaboration, the World Bank Group updates every 3 years.
This strategy helps to resolve bank programs related to the provision of loans, consulting and analytical services, taking into account the specific development goals of a particular borrowing country.