About World Bank group:

The World Bank Group With 189 member countries is one of the world’s largest sources of funding and knowledge for developing countries. It consists of 5 institutions that share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.

Its five institutions:

• The International Bank for Reconstruction and Development (IBRD):IBRD is a global development cooperative owned by 189-member countries and it is the largest development bank in the world. It is headquartered in Washington, D.C. It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. IBRD finances investments across all sectors and provides technical support and expertise at each stage of a project.
• The International Development Association (IDA):It was established in 1960. It aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
• The International Finance Corporation (IFC):It was established in 1956. It provides various forms of financing without sovereign guarantees, primarily to the private sector
• The Multilateral Investment Guarantee Agency (MIGA):MIGA was established in 1988. It provides insurance against certain types of risk, including political risk, primarily to the private sector.
• The International Centre for Settlement of Investment Disputes (ICSID):It was established in 1966. It works with governments to reduce investment risk by providing settlement of disputes.

Members: 

• To become a member of IBRD, a country must first join the International Monetary Fund (IMF).
• Only the members of IBRD are allowed to join other institutions within the Bank such as IDA, IFC, MIGA, and ICSID.
• At present, there are 189 member countries that are shareholders in the IBRD

UN and World Bank Group – IBRD, IFC, and IDA are Specialized Agencies of the UN.  ICSID and MIGA are not Specialized Agencies

• While five institutions have their own country membership, governing boards, and articles of agreement, they work as one to serve the partner countries.
• The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries.
• IFC, MIGA, and ICSID focus on strengthening the private sector in developing countries by providing financing, technical assistance, political risk insurance, and settlement of disputes to private enterprises, including financial institutions.

India and the World Bank Group 

• India is a member of four of the five constituents of the World Bank Group except for ICSID.
• India is one of the founder members of IBRD, IDA, and IFC.

World Bank

• IBRD and IDA are collectively known as the World Bank. WB provides loans to countries for capital programs.
• They were created at the 1944 Bretton Woods Conference, along with the International Monetary Fund (IMF).

Objective: Currently, the aim of the World Bank is to end extreme poverty, reducing the share of the global population that lives in extreme poverty to 3 percent by 2030. Further, it aims to promote shared prosperity by increasing the incomes of the poorest 40 percent of people in every country and Provide sustainable development.

Structure: 

• The World Bank is like a cooperative, made up of 189 member countries.
• These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank.
• The governors are member countries’ ministers of finance or ministers of development.
• They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund.

Headquarters: Washington, D.C., United States

Member Countries: 

• There are 189 member countries that are shareholders in the IBRD, the primary arm of the WBG.

Shareholdings: The size of the World Bank’s shareholders, like that of the IMF’s shareholders, depends on the size of a country’s economy. Thus, the cost of a subscription to the World Bank is a factor of the quota paid to the IMF.

Reports Published by World Bank:

• Ease of Doing Business
• World Development Report
• Global Economic Prospect Report
• Remittance Report
• Ease of Living Index
• India Development Update
• Global Financial Development Report
• Energy Efficiency Implementation Readiness
• Human Capital Index
• Logistics Performance Index

Functions: 

• World Bank Group is affiliated with the United Nations (UN) and designed to finance projects that enhance the economic development of member states.
• The World Bank is the largest source of financial assistanceto developing countries.
• It also provides technical assistance and policy advic The World Bank also supervises on behalf of international creditors about the implementation of free-market reforms.
• Together with the International Monetary Fund (IMF) and the World Trade Organization, it plays a central role in overseeing economic policy and reforming public institutions in developing countries, and defining the global macroeconomic agenda.

Source: Important United Nations Organisations