The World Bank is an international financial organization that offers loans and grants to governments of low- and middle-income nations for the purpose of pursuing capital projects in such countries. Two institutions are included: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) (IDA). As a member of the World Bank Group, the World Bank is an important institution.
One of the World Bank's most recent declared objectives is to reduce poverty.
World Bank Group
The World Bank Group is an extended family of five international organizations, and the parent organization of the World Bank, the collective name given to the first two listed organizations, the IBRD and the IDA:
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
The World Bank and the International Monetary Fund were established during the 1944 Bretton Woods Conference, together with the International Monetary Fund (IMF). It has usually been an American who has served as president of the World Bank. The World Bank and the International Monetary Fund are both headquartered in Washington, D.C., and they collaborate closely with one another.
Located at the Mount Washington Hotel, the Gold Room was where the International Monetary Fund and the World Bank were founded in 1944. Despite the fact that a large number of nations were represented at the Bretton Woods Conference, the United States and the United Kingdom were the most powerful participants and dominated the negotiating process. The World Bank was established with the goal of providing temporary loans to low-income nations that were unable to acquire credit via traditional commercial channels. The Bank may potentially provide loans while simultaneously requiring beneficiaries to implement policy changes.
The President of the World Bank is also the President of the whole World Bank Group, which includes the World Bank. The president is in charge of presiding over meetings of the Bank's board of directors as well as the general administration of the institution. Traditionally, the president of the Bank has always been a citizen of the United States who has been selected by the United States, which is the bank's biggest shareholder. The nominee's appointment is subject to approval by the board of executive directors for a period of five years, with the option to renew. While the majority of World Bank presidents have previous banking expertise, there are a few that do not.
They are responsible for regions, sectors, network structures, and functions, and they report to the Bank's vice presidents and executive directors. There are two executive vice presidents, three senior vice presidents, and twenty-four vice presidents in all at the organization.
The World Bank Group's board of directors is comprised of the president of the organization as well as 25 executive directors. The president serves as the presiding officer and, save in the case of a tie, has no voting authority. Individually, the executive directors are not allowed to exercise any authority, make any commitments, or represent the Bank unless and until the boards have expressly authorized them to do so. The number of executive directors rose by one at the start of the new term on November 1, 2010, bringing the total number of executive directors to 25.
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