The World Bank is an international financial institution established in 1944, with the primary goal of reducing poverty and promoting sustainable economic development in low- and middle-income countries. It was created as part of the [[Bretton Woods]] Agreement, along with its sister organization, the [[International Monetary Fund (IMF)]]. The World Bank's headquarters are in Washington, D.C., United States.
The World Bank provides financial and technical assistance to developing countries for a wide range of projects and programs, including infrastructure development, education, healthcare, agriculture, and environmental protection. Its support comes in various forms, such as loans, grants, and guarantees, as well as policy advice and technical expertise.
The World Bank Group consists of five closely related institutions:
1. **International Bank for Reconstruction and Development (IBRD)**: The IBRD provides loans and advisory services to middle-income countries and creditworthy low-income countries. Its primary aim is to promote economic growth and reduce poverty by financing projects that improve infrastructure, institutions, and human development.
2. **International Development Association (IDA)**: The IDA focuses on providing concessional loans, grants, and technical assistance to the world's poorest countries. It aims to address issues such as basic health and education, clean water and sanitation, environmental sustainability, and climate resilience.
3. **International Finance Corporation (IFC)**: The IFC supports private sector development in developing countries by providing investments, advisory services, and asset management. Its goal is to create jobs, generate tax revenues, improve corporate governance, and promote environmentally and socially sustainable practices.
4. **Multilateral Investment Guarantee Agency (MIGA)**: MIGA provides political risk insurance and credit enhancement to investors and lenders for projects in developing countries. By mitigating risks, MIGA aims to encourage private sector investments in critical sectors, such as infrastructure, agribusiness, and renewable energy.
5. **International Centre for Settlement of Investment Disputes (ICSID)**: ICSID offers arbitration and conciliation services for the resolution of investment disputes between governments and foreign investors. Its objective is to promote a stable investment climate and facilitate the flow of foreign direct investment into developing countries.
## World Bank governance structure
The World Bank's governance structure includes a Board of Governors, consisting of representatives from each member country, and a Board of Executive Directors, which makes operational decisions. The institution is led by a President, who is nominated by the United States and elected by the Board of Governors for a renewable five-year term.
While the World Bank has been instrumental in financing development projects and providing technical assistance around the world, it has also faced criticism for promoting policies that may exacerbate income [inequality](https://doctorparadox.net/dictionaries/economics/inequality-definition/), contribute to environmental degradation, or undermine the sovereignty of recipient countries. In response to these concerns, the World Bank has evolved over time, incorporating social and environmental safeguards, and emphasizing the importance of good governance and inclusive growth.