UGC NET : The World Bank
UPSC : The World Bank
The World Bank is an international organization that helps developing countries to reduce poverty, increasing shared prosperity, and promoting sustainable development.
Formation: July 4, 1944
Member states: 189 member countries (As on 14.09.2020)
President: David R. Malpass (13th President) till April 8, 2024
Purpose:
- The World Bank provides low-interest loans, interest-free credit and funding
- It focuses on improving education, health and infrastructure
- Its purpose is to “bridge the economic divide between poor and rich countries” by turning rich countries resources into poor country growth
Mission
To end extreme poverty: By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.
To promote shared prosperity: By increasing the incomes of the poorest 40 percent of people in every country.
Five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
Development institutions:
- The International Bank for Reconstruction and Development (IBRD)
- The International Development Association (IDA)
Other three organizations:
- The International Finance Corporation (IFC)
- The Multilateral Investment Guarantee Agency (MIGA)
- The International Centre for Settlement of Investment Disputes (ICSID)
The International Finance Corporation (IFC)
- It was established in 1956
- It offers investment, advisory and asset management services to encourage private sector development
- The institution became able to lend to private companies and financial institutions in developing countries
The International Development Association (IDA)
- It was established in 1960
- It offers loans to the world’s poorest developing countries. Also its provides long repayment periods which also known as “Soft loan Window”
- Its aims eradication of poverty
The Multilateral Investment Guarantee Agency (MIGA)
- It was established in 1988
- It insures lenders and investors against political risk such as war
- These guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries
The International Centre for Settlement of Investment Disputes (ICSID)
- It was established in 1966
- The Primary objective of ICSID is to settles investment disputes between investors and countries
World Bank Group and India
India was one of the forty-four original signatories to the agreements reached at Bretton Woods that established the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF)
It was also one of the founding members of the IFC in 1956 and the IDA in 1960
India later became a member of the MIGA in January 1994
India is not a member of ICSID
2013 December UGC NET
Uruguay Round pertains to
(A) WTO
(B) IMF
(C) GATT
(D) World Bank
Sample Questions
Human Development Index was formulated by
(A) World Bank
(B) International Monetary Fund
(C) UNTAD
(D) UNDP
Bretton Woods twins are
(A) USA and UK
(B) IMF and World Bank
(C) ITO and WTO
(D) GATT and UNESCO
Assertion (A): The member nation’s consistently finding balance of payments crisis may approach the World Bank seeking financial accommodation to mitigate the crisis.
Reason (R): The member nations facing balance of payment crisis can approach the IMF seeking redressal of the BOP crisis.
A. A is correct and R is the correct explanation of A
B. A is correct but R is wrong
C. R is correct but A is wrong
D. Both are wrong
Current Affairs for NTA UGC-NET Exam
On January 9, 2020, the World Bank released its Global Economic Prospect. According to its forecast, the world is expected to grow economically at a rate of 2.5%. This is the lowest prediction since that predicted in 2008-09, 3.1%. By then, the global financial crisis derailed the economy.
