World Bank Group

The World Bank Group is a group of five international organizations responsible for providing finance to countries for purposes of development and poverty reduction, and for encouraging and safeguarding international investment. The group and its affiliates are headquartered in Washington, D.C..

Related Topics:
International organization - Washington, D.C.

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Together with the separate International Monetary Fund (IMF) (which provides finance to alleviate balance of payments problems), the World Bank organizations are sometimes called the Bretton Woods institutions, after Bretton Woods, New Hampshire, where the international conference that led to their establishment took place (1-22 July 1944).

Related Topics:
International Monetary Fund - Bretton Woods - Bretton Woods, New Hampshire

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The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements. Commencing operations on 25 June 1946, it approved its first loan on 9 May 1947 ($250m to France for postwar reconstruction, in real terms the largest loan issued by the Bank to date). The IFC was created on 20 July 1956, the IDA on 24 September 1960, the ICSID on 14 October 1966 and the MIGA on 12 April 1988.

Related Topics:
27 December - 1945 - 20 July - 14 October - 1966

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Though repeatedly relied upon by impoverished governments around the world as a contributor of development finance, the Bank and its affiliates have been criticised by opponents of globalisation for undermining the national sovereignty of recipient countries through its pursuit of economic liberalisation and guarantees for private international investment.

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The World Bank's activities are currently focused on developing countries, (since 2000, the preferred term is Less Economically Developed Country (LEDC)), in fields such as education, agriculture and industry. It provides loans at preferential rates to member countries who are in difficulty. In counterpart, it also asks that political measures be taken to, for example, limit corruption or foster democracy.

Related Topics:
Developing countries - 2000

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The work of the Bank is subject to long-standing and strong criticism from a range of NGOs and academics, and in some cases from the Bank's own internal evaluations. It has been accused of being a US or western tool for imposing economic policies that support western interests. Critics argue that the free market reform policies - which the Bank advocates - in practice are often harmful to economic development if implemented badly, too quickly, in the wrong sequence, or in an inappropriate environment (e.g. very weak, uncompetitive economies).

Related Topics:
NGO - Economic development

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