The World Bank is an international financial institution within the World Bank Group that provides loans, grants, and expertise to developing countries. It focuses on reducing poverty and supporting sustainable development, working closely with governments and other partners around the world.
Key facts
- Founded: 1944 (Bretton Woods Conference)
- Headquarters: Washington, D.C., United States
- Members: 189 countries (World Bank Group membership)
- Mission: End extreme poverty and boost shared prosperity on a livable planet
- Current president: Ajay Banga (since 2023)
Structure within the World Bank Group
Within the broader World Bank Group, “the World Bank” usually refers to two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). IBRD lends to middle-income and creditworthy low-income countries, typically at near-market but favorable rates. IDA provides concessional loans and grants to the poorest countries. Together they act as a core international financial institution for long-term development finance.
Role and functions
The World Bank finances projects and reforms that support economic and social development: building infrastructure (roads, power, digital connectivity), expanding education and health systems, improving water and sanitation, and strengthening public institutions. It provides:
- Long-term loans, low-interest credits, and grants
- Policy advice and technical assistance
- Data, research, and analytical work that guide development strategies
Its assistance is typically framed in country strategies agreed with each government and is funded by capital from member states and bond issuance on global markets.
Focus areas and current priorities
The Bank’s mission is “a world free of poverty on a livable planet,” emphasizing both income poverty and sustainability. Current priorities include climate change adaptation and mitigation, human capital (health, education, social protection), digital development, gender equality, and financial inclusion, often linked to the United Nations Sustainable Development Goals.
Governance and criticisms
The World Bank is owned by its member governments and governed by a Board of Governors and a resident Board of Executive Directors, with voting power roughly proportional to countries’ shareholdings.
It has faced sustained criticism over issues such as:
- The social and environmental impacts of some projects
- Perceived over-emphasis on market-oriented policy reforms
- Influence of major shareholders, especially the United States
These debates have pushed the institution to adopt stronger safeguards, expand consultation with affected communities, and increase its focus on environmental and social standards.
