World
Bank is an organization which provides loans and financial aids to
developing countries. With its headquarters in Washington D.C. the
World Bank was founded in 1944. The World Bank consists of two
financial bodies IBRD (International Bank for Reconstruction and
Development) and IDA (International Development Association).
There
are 189 countries which own the membership of the World Bank. Its
motto is ‘Working for a World Free of Poverty’. Improving health,
education and infrastructure are the main objectives of the World
Bank. David Malpass is serving as the president of World Bank Group
since 9th
April, 2019.
World
Bank is the major observer of the global economics along with WTO
(World Trade Organization) and IMF (International Monetary Fund). The
bank gathers its funds mainly from the capital subscription of member
countries and net earnings raised from interest payments on loans.
World Bank has more than 10,000 employees with more than 120 offices
worldwide.
The
bank’s involvement in forming economic policies has increased in
developing countries. World Bank is also working in prevention of
climate change. As it may shove 100 million people to poverty by
2030. The bank launched an open website to give free access of major
indicators in 2010. They are:
- Health
- Poverty, gender and aid effectiveness
- Business, agriculture and financial areas
- Labor, education and income
- Development and infrastructure
World
Bank analyzes global trends in trade and finance, and also explains
their effects on countries.
It
is not impossible but limits the sources from borrowing funds for the
poor and developing countries in the absence of World Bank. The
projects which are done by these countries are essential for
education, employment and providing healthy living conditions of
their citizens. One
of the world's largest development assistance, the World Bank
supports the efforts of developing countries to build schools and
medical centers, provide water and electricity, fight severe
diseases, and protect the environment.
The
number of shares of the World Bank a country can have is calculated
on the size of its economy. Right now United States is the biggest
shareholder of the bank. Then Japan followed by Germany, UK and
France. The remaining shares are divided among other country members.
A board of Governors represents the Bank’s government shareholders.
These are finance ministers and central bank governor of the
countries. Governors are the policymakers in the World Bank. Their
meeting held once per year.
These
officials decide what should be the main focus on upcoming years to
reduce poverty globally. The bank has well managed financial reserves
which help it to borrow money at low interest and lend that to
developing countries. World Bank lends money to the poorest countries
at no interest. It also has the advantage of longer repay period.
Countries have 35-40 years to repay,
with a 10-year grace period.
World
Bank’s work resulted as a big help for non developed countries as
it has given them an opportunity to make themselves developed. It is
also working continuously in climate change, poverty, weak
infrastructure and several global issues.
Source of Article- Bank IFSC Code
Source of Article- Bank IFSC Code
