The World Bank is an international financial institution that provides financial and technical assistance to developing countries around the world. Its primary goal is to reduce poverty and promote sustainable economic growth by offering loans, grants, and expertise for various projects and initiatives.
The World Bank focuses on areas such as infrastructure development, education, healthcare, agriculture, and environmental sustainability. It consists of two institutions: the International Bank for Reconstruction and Development (IBRD), which primarily works with middle-income and creditworthy low-income countries, and the International Development Association (IDA), which focuses on the poorest countries.
Quick info about the World Bank
| Establishment Year | July 1944 |
| Installer | John Maynard Keynes and Harry Dexter White |
| Parent organization | World bank group |
| The headquarters | Washington, D.C., United States |
| First president | Eugene Meyer |
| Current president 2023 | Ajay Banga |
History and Objectives of the World Bank
International Bank for Reconstruction and Development was established in July 1944, which we know today as the World Bank. Its scope has expanded to include a group of five closely related development institutions. Over time, the World Bank's focus has shifted from reconstruction to development with an emphasis on infrastructure such as dams, power grids, irrigation networks, and roads.
With the establishment of the International Finance Corporation in 1956, the World Bank Group has been able to provide loans to private sector companies and financial institutions in developing countries.
Objectives of the World Bank
- To take the world on the path of economic progress.
- Reducing poverty in the world.
- Promoting international investment.
Current President of World Bank 2023
The Current President of the World Bank (WB) is Ajaypal Singh Banga. Ajaypal Singh Banga is an Indian-American business executive who was elected as the President of the World Bank on 3 May 2023, with effect from 2 June 2023. Prior to that he was Vice President at General Atlantic, and prior to that was Executive Chairman of Mastercard. He has also been Chairman of the Netherlands-based investment holding company Exor and Chairman of the Public-Private Partnership for Central America with US Vice President Kamala Harris.
List of World Bank Presidents (1946-2023):
| Name of President | Tenure (From how long) |
| Eugene Mayer (United States) | 1946–1946 |
| John J. McIlroy (United States) | 1947–1949 |
| Eugene R. Black (United States) | 1949–1963 |
| George Woods (United States) | 1963–1968 |
| Robert McNamara (United States) | 1968–1981 |
| Alden W. Clausen (United States) | 1981–1986 |
| Barber Konable (United States) | 1986–1991 |
| Lewis T. Preston (United States) | 1991–1995 |
| Sir James Wolfenson (USA) | 1995–2005 |
| Paul Wolfowitz (United States) | 2005–2007 |
| Robert Zoelik (United States) | 2007–2012 |
| Jim Yong Kim (United States) | 2012-2019 |
| David Malpass (United States) | 2019 to 2023 |
| Ajay Banga (United States) | 2023 to present |
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FAQs:
The International Development Association refers to the World Bank's 'soft loan window'. IDA is an international organization that is part of the World Bank Group. The main objective of IDA is to provide financial assistance to developing countries so that they can strengthen their economic structure to reduce poverty, increase opportunities and strengthen growth.
World Bank is also known as International Bank for Reconstruction and Development. Its main objective is to provide financial assistance to the member nations in the works of reconstruction and development.
The headquarters of the World Bank is in Washington, D.C., United States. The International Bank for Reconstruction and Development is also known as the World Bank. The World Bank is an important institution associated with the United Nations and it is a group of many institutions. That is why it is also called the World Bank Group.
The increase in the bank rate will automatically make credit costlier. Banks often require large amounts of money for their day-to-day operations, whose tenure does not exceed one day. For this, the most common option that banks adopt is to take an overnight loan from the central bank (Reserve Bank in India). The interest they have to pay to the Reserve Bank on this loan is called the repo rate.
The World Bank is equally medium and long term lending preference. The World Bank gives loans for policy reform programs and projects, while the International Monetary Fund gives loans only for policy reform programs.