Info Nuggets
World Bank: Financing economic development in low and
middle-income countries
The World Bank is an international financial institution that provides loans and grants to governments of low- and middle-income countries for economic development.
Mission and activities
The World Bank's mission is to reduce poverty and promote economic development. The organisation:
- Provides loans and grants for projects in areas like education, healthcare, infrastructure, and environmental protection
- Works with NGOs, environmental groups, and other partners to achieve its goals
- Aims to address climate change and promote sustainable development
Structure and governance
The World Bank is composed of two main institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The organisation is run by a president and 25 executive directors, with the U.S., Japan, China, Germany, and the U.K. having significant voting power.
Impact and criticisms
The World Bank has been involved in numerous projects worldwide, with a focus on poverty reduction and sustainable development. However, the organisation has faced criticism for:
- Promoting inflation and harming economic development
- Governance issues and response to global crises like the COVID-19 pandemic
Current initiatives
Under the leadership of President Ajay Banga, the World Bank is prioritising climate action and sustainable development, building on its long history of supporting economic development in low- and middle-income countries.
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