Updated Mar 24, 2022

What does the World Bank Do?

What does the World Bank Do?

Introduction

The World Bank is an organisation working at the international level that works in giving financing advice and research to the developing nations to help with their economic growth and development. The World Bank centrally focuses on fighting poverty in underdeveloped or developing nations by providing developmental assistance to less developed countries.

The Bretton Woods Agreement led to the creation of the World Bank in 1944. later secured the agreement under the United Nations auspices in the final days of the Second World War. The Bretton Woods Agreement was inclusive of various components like creating the World Bank (WB), the formation of the International Monetary Fund (IMF), and a collective monetary system.

The World Bank’s Offers

The World Bank is found to be responsible for offering low-interest loans, zero-interest grants, and credits, and then, of course, the support that the developing or underdeveloped nations require to advance their economies. The World Bank is interested in helping the nations and the world overall with education, healthcare, public administration, infrastructure, and private sector development. The World Bank intends on working and assisting on these with debt borrowings and cash infusions.

The World Bank is helping several entities by sharing information with these entities. The information from the World Bank is shared via policy advice, research and analysis, and technical assistance. It provides training and advice to the public and the private sectors. The World Bank is seen as an international support organisation by several nations to help develop. These nations pair up with the World Bank to sponsor development projects.

The World Bank’s Financials

The World Bank’s financials cannot be compared to any bank or financial institution because it is an organisation rather than being a bank. The World Bank has various sectors within itself, which are:

• The International Development Association also known as (IDA),
• The International Bank of Reconstruction and Development also called IBRD,
• The Multilateral Investment Guarantee Agency with a short of (MIGA),
• The International Finance Corporation referred to as (IFC)

The International Bank of Reconstruction and Development (IBRD) lends money to underdeveloped or developing nations with appropriate credit. The International Bank of Reconstruction and Development (IBRD) had recorded net interest revenues of about dollars two thousand four hundred and fourteen million and an income which is allocable of about dollars one thousand three hundred eighty-one million at the end of 30 June 2020.

The World Bank’s Purpose

The World Bank declared its purpose is to bridge the economic difference between rich and emerging nations. The World Bank intends on bridging this gap with the help of applying the resources of the rich nations for the development projects in the emerging nations. The World Bank is said to have a long-term aim of achieving a sustainable reduction of poverty.

The World Bank focuses on certain areas to achieve what it aspires to. These specific areas are:

• It focuses on reconstructing nations that have emerged from wars seen as the biggest cause of poverty.
• It concentrates on overcoming poverty by advancing growth in emerging nations, especially countries in Africa.
• It centres on offering a customised solution to assist middle-income or developing countries to stay above the poverty line.
• It directs the energy towards spurring the governments of various nations to help prevent climate change.
• It focuses on working with different partners to end the problem of AIDS.
• It concentrates on managing financial crises internationally and in promoting open trade.
• It aims to focus on sharing the expertise it possesses with developing nations through reports and interactive databases provided virtually.

Conclusion

The World Bank offers financial and technical assistance to several independent individual nations all over the world. The World Bank is seen as an institution involved in finances to help the least developed or developing countries with poverty reduction and offer them support and thereby promotion for economic development.

The World Bank intends to fulfil its purpose by long-term loans and grants offered to various governments to start development projects and structural reforms. The World Bank is also thought of as the supplier of various products and services to different states and sometimes to the private sector as well.