The World Bank is an international organization that gives loans to developing countries. So that poverty can be bid farewell to both of them. Its headquarters is in Washington DC.
The World Bank is made up of two development institutions.
One of which is the International Bank for Reconstruction and Development-IBRD which gives a loan, credit, and grants, and the International Development Association ie which gives loans to low-income countries at low interest ie no interest.
💡Table of Content
➤ World Bank Establishment
Establishment of international currency of the World Bank and an international fund. It was done in the year 1944 in Bretton Woods city of America at a conference of world leaders. That's why both these institutions have also come to be known as Bretton Woods 20.
This conference lasted from 1st to 22nd July 1944 and representatives of 44 countries participated in it.
The World Bank is also known as the National Bank for Reconstruction and Development i.e. International Complete and Construction and Development Bank i.e. IBRD.
➤ Why required World Bank and History
Let's talk about why the World Bank was established? So during the Second World War, the world economy suffered a lot, and a need was felt to re-establish these proposals. That's why the World Bank was established and IBRD i.e. World Bank started working on June 1946 ie 1946.
Let's talk about how many member countries there are in the World Bank? So the number of member countries of the World Bank is 189.
Member countries are also shareholders of the World Bank and also make decisions regarding the policies of this institution. The World Bank is called the World Bank Group, so the World Bank is not a single institution, but it includes five institutions. For this, it is also called the World Bank. You might be doing a little bit here.
👉 What is a world-developing country?
Because a while ago we came to know that two institutions are involved in the World Bank and now we are talking about five institutions, so let's go. First of all, let's clear up this confusion. Actually, the World Bank term is used only for IBRD and IDA. While the World Bank Group ie WBG is used for its five institutions.
So now you must have understood what is the difference between the term World Bank and the term World Bank Group?
First is the International Bank Reconstruction and Development i.e. IBRD international funds for complete construction and development.
This violence was founded in 1945 and its purpose is to provide loan guarantees and non-lending services to middle-developed countries and debt-ridden countries. To promote the development of the countries. The number of its member countries is 189. It is also important to know from here that the number of members in each of the World Bank groups is different.
Second international finance corporation - IFC. This establishment was established in 1956. The number of its member countries is 184. This organization helps companies and financial institutions in new markets in developing countries to start new jobs and improve corporate administration and the environment.
Pizza is an international development association - IDA This International association was established in 1960 and the number of its member countries is 173 out of one hundred. This is part of the World Bank which helps the countries closest to the world.
The purpose of the organization is to promote economic development in the country reduce inequality and give grants to improve the living conditions of the people. The fourth is the International Center for Settlement of Investment Disputes - ICSID, which was established in 1965 to the responsible for international disputes about a residence and works with the government to reduce investment risk.
Its main objective is to provide facilities for resolving international investment disputes. 163 countries are its members. Fifth is the Multilateral Investment Guarantee Agency - MIGA Multilateral Investment Guarantee Agency This organization was established in 1988 and 181 countries are its members.
Its main objective is to promote foreign direct investment in developing countries and it can help in the economic development of countries reduce poverty and also improve the standard of living of the people.
➤ Important works of the World Bank
The World Bank provides low-interest loans, interest-free credit, and grants. Bank focuses on improving education, health, or infrastructure. It also uses its funds to modernize the financial sector, agriculture, and natural resource management of countries.
So now let's also know who is the president of the World Bank Group. The 13th president of the World Bank Group is David Malpass, who was elected for a five-year term on 9 April 2019. Now the question is, where does the money from the World Bank come from, then The World Bank has to collect the necessary funds for its development programs in two ways.
Some part comes with the help of rich countries, IBRD is raised by trading and investing shares in the financial markets. So it means to say that the World Bank which is there, plays a very big role in the whole world.
👉 Pakistan is involved in the Khalistan group
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