In the process of its development, the World Bank has undergone various structural changes, so the term World Bank has meant different organizations at different stages.

The World Bank was initially associated with the International Bank for Reconstruction and Development, which provided financial support for the reconstruction of Western Europe and Japan after World War II. Later, in 1960, the International Development Association was created, which took over some of the functions related to the policies of this bank.

Currently, the World Bank actually refers to two organizations:

• International Bank for Reconstruction and Development
• International Development Association

At different times, they were joined by three more organizations created to solve the problems of the World Bank:

• International Finance Corporation
• Multilateral Investment Guarantee Agency
• International Center for Settlement of Investment Disputes

All five organizations are members of the World Bank Group and are called the World Bank Group. In some cases, the World Bank still refers to the International Bank for Reconstruction and Development, which still forms the basis of the World Bank's activities.

Story

The World Bank is one of two (along with the International Monetary Fund) large financial institutions created as a result of the Bretton Woods conference, held in 1944. Delegates from 45 countries, including representatives of the Soviet Union, discussed issues of economic recovery and the structure of the world economy after World War II.

The Soviet Union was one of the active participants in the Conference, but subsequently refused to participate in the activities of the International Monetary Fund and the World Bank, since, in accordance with the charter, it did not have the opportunity to influence decisions made, unlike the United States of America.

In the early stages of its activities from 1945 to 1968, the World Bank did not actively lend due to increased requirements for borrowers. Under the leadership of the bank's first president, John McCloy, France was chosen as the first borrower and was issued a loan in the amount of US$250 million. Moreover, the condition for granting a loan to France was non-participation in the communist coalition government. Two other applicants (Poland and Chile) did not receive assistance. Subsequently, the World Bank took an active part in lending to Western European countries, which were actively restoring the economy destroyed by World War II, implementing the Marshall Plan. Funding for this plan came largely from the World Bank.

In 1968-1980, the World Bank's activities were aimed at helping developing countries. The volume and structure of loans provided increased, covering various sectors of the economy from infrastructure to solving social issues. Robert McNamara, who led the World Bank during this period, brought a technocratic management style to its activities, as he had leadership experience as the US Secretary of Defense and the president of Ford. McNamara created a new system for potential borrowing countries to provide information, which made it possible to reduce the time for making a decision on the terms of a loan.

In 1980, McNamara was replaced as president of the World Bank by A.W. Clausen, at the suggestion of then US President Ronald Reagan. During this period, financial assistance was provided mainly to third world countries. The period 1980-1989 was characterized by a lending policy aimed at developing third world economies in order to reduce their dependence on loans. This policy led to a reduction in loans provided to solve social problems.

Since 1989, World Bank policy has undergone significant changes under the influence of criticism from various non-governmental organizations, in particular those related to environmental protection. As a result, the range of loans provided for various purposes has expanded.

Membership

A condition of membership in the World Bank is membership in the International Monetary Fund, that is, each member country of the IBRD must first become a member of the International Monetary Fund. Only those countries that are members of the IBRD can be members of other organizations within the World Bank Group.

The International Bank for Reconstruction and Development consists of 184 member countries. The last country (18 January 2007) accepted was Montenegro. In accordance with the Charter of the International Bank for Reconstruction and Development, each country has a certain quota in the authorized capital, and votes are distributed in proportion to the quota when making decisions. As of 2006, votes were distributed as follows:

Participating country Share, % 16,39 Japan 7,86 Germany 4,49 France 4,30 4,30 China 2,78 India 2,78 Italy 2,78

The International Development Association has 164 member countries

Bank activity management

The World Bank is a joint stock company whose shareholders are 184 member countries of this organization. The number of votes that member countries have depends on their share in the Bank's capital, which in turn is determined by their share in the world economy. These shareholders are represented by the Board of Governors, which is the highest decision-making body and policy-maker of the Bank. As a rule, the managers are the finance ministers of the participating countries. The Board of Governors meets once a year during the Annual Meetings of the Governing Boards of the World Bank Group and the International Monetary Fund.

Specific powers to manage the Bank during the period between meetings of the Board of Governors are delegated to 25 executive directors who work directly at the Bank's headquarters in Washington. The executive directors form the Board of Directors, which is headed by the President of the Bank. The Board of Directors consists of five executive directors representing the interests of the member states with the largest shareholdings: , Japan, Germany, France and. The remaining 20 executive directors represent country groups.

The Board of Directors usually meets twice a week and exercises general management of the Bank, including responsibility for approving all loans and making other decisions affecting the Bank's activities:

1. approval of loans and guarantees,
2. determination of the general principles of the bank's activities
3. approval of the Bank's budget
4. development of strategies to assist countries
5. making decisions regarding borrowings and other financial matters.

The President of the World Bank presides over meetings of the Board of Directors and is responsible for the overall direction of the Bank's activities. By tradition, the President of the World Bank is a citizen of the United States, the country that is the Bank's largest shareholder. The President is elected by the Board of Governors for a five-year term and may be re-elected. Five vice presidents, including three Senior Vice-Presidents and two Executive Vice-Presidents, are responsible for specific regions, sectors, business lines and other specific functions.

The World Bank has offices in more than one hundred countries and employs about 10,000 people.

Presidents of the World Bank

The president	Duration of tenure
Eugene Meyer	June 18, 1946 – March 17, 1947
John McCloy	March 17, 1947 – July 1, 1949
Eugene Robert Black	July 1, 1949 - January 1, 1963
George D. Woods	January 1, 1963 - April 1, 1968
Robert S. McNamara	April 1, 1968 - July 1, 1981
Alden W. Clausen	July 1, 1981 - July 1, 1986
Barber B. Conable	July 1, 1986 - September 1, 1991
Lewis T. Preston	September 1, 1991 - May 4, 1995
Richard Frank, acting	May 4, 1995 - June 1, 1995
James D. Wolfensohn	June 1, 1995 - June 1, 2005
Paul Wolfowitz	June 1, 2005 - July 1, 2007
Robert Zoellick	July 1, 2007 - July 1, 2012
Jim Yong Kim	from July 1, 2012 - present

World Bank and Russia

In the fall of 1991, the World Bank opened its temporary office in Moscow.

On January 7, 1992, the government of the Russian Federation submitted an application to become members of the IMF and the World Bank Group. Russia became a member of these organizations in June 1992. At the beginning of 1993, the bank opened a permanent representative office in Moscow, which employs about 70 people, mostly Russian citizens.

In June 1993, the bank organized a multilateral meeting in Paris to discuss Russia's highest priority reforms and coordinate related foreign assistance. In total, Russia received loans worth over $13 billion through the World Bank for structural reforms.

From January 1, 1995 to June 1, 2005, James D. Wolfensohn served as President of the World Bank. He first visited the Russian Federation in October 1995 and has made official visits to Russia every year since then.

The Bank's Global Development Learning Center and Public Information Center, located in Moscow, help share experience and knowledge with Russian partners.

World Bank in Ukraine

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Criticism

The activities of the World Bank have been criticized for a long time by various non-governmental organizations and scientists, among whom the Nobel laureate in economics and former chief economist of the World Bank Joseph Stiglitz occupies a prominent place.

In particular, J. Stiglitz called the policy towards developing countries developed by the IMF, the World Bank and economists in the American government erroneous. In his opinion, if this policy had been followed, significant economic growth would not have occurred. He also pointed out that Russia followed the recommendations and experienced a fall in real incomes, while China did not follow and is experiencing an economic recovery.

In particular, Joseph Stiglitz spoke sharply negatively about the World Bank's policy towards Russia, criticizing the shock therapy of the transition period.

An analysis of the development of the world economy shows that the World Bank's programs, as it formulated them, did not ensure sustainable and equitable economic development. In this regard, pressure on the Bank began to increase. Non-governmental organizations at the national and international level began to push for open and democratic consideration of alternative solutions to World Bank policies.

In 2001, a US Congressional Commission assessed the performance of international financial institutions and concluded that 60% of World Bank projects failed. The World Bank is designed to fight poverty, but over the past five years, only 1% of loans went to “poor” states that are most in need of this kind of assistance. During this time, the level of poverty in the world has decreased slightly, which cannot be explained solely by the activities of the World Bank. Successes were achieved by states that received virtually no financial assistance from the World Bank. In those countries that were recipients of major aid packages, not only did the fight against poverty fail, but the situation in them even worsened.

The Heritage Foundation Research Center analyzed the impact of World Bank loans on the poorest countries. During the period from 1980 to 2003, 105 “poor” states received its loans and grants. As a result, in 39 countries the gross domestic product decreased, in 17 the GDP growth was minimal (from zero to 1%), in 33 it was moderate (1-4%). Only 12 recipients were able to significantly increase the pace of economic development. The situation is even more depressing in Africa. Here, 48 countries received World Bank money, only three of them were able to develop successfully economically, and 23 experienced an economic decline.

In 2010, American academic Raj Patel became a prominent critic of the World Bank. He has published numerous articles critical of the World Bank's political and pseudoscientific practices.

Declared goals and objectives

In 2012, in accordance with the Millennium Declaration, the World Bank focused its activities on achieving the Millennium Development Goals. During the transition period to the third millennium, under the auspices of the UN, eight goals were formulated to achieve which the efforts of international organizations should be directed. The Millennium Development Goals are to be achieved by 2015 and include the following:

1. eradication of poverty and hunger;
2. ensuring universal primary education;
3. promoting gender equality and women's empowerment;
4. reduction in child mortality;
5. improving maternal health;
6. combating HIV/AIDS, malaria and other diseases;
7. ensuring sustainable development of the environment;
8. forming a global partnership for development.

Solving global problems of human development, the World Bank, using the IBRD loan mechanism, lends to middle-income countries at interest rates corresponding to the market level of these countries. Another World Bank financial institution, IDA, lends to low-income countries at minimal or no interest rates.

Types and areas of activity

Two closely related institutions within the World Bank - the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) - provide loans at low interest rates, zero interest rates, or in the form of grants to countries without access to international capital markets or having such access on unfavorable terms. Unlike other financial institutions, the World Bank does not seek profit. The IBRD operates on a market basis, using its high credit rating, which allows it to obtain funds at low interest rates, in order to provide loans to its clients from developing countries, also at low interest rates. The Bank covers operating expenses associated with this activity independently, without using external sources of financing.

Every three years, the World Bank Group develops a framework document: the World Bank Group Strategy, which is used as the basis for cooperation with the country. The strategy helps link the bank's lending, analytical and advisory programs to the specific development goals of each borrowing country. The strategy includes projects and programs that can have the greatest impact on solving the problem of poverty and contribute to dynamic socio-economic development. Before submission to the Board of Directors of the World Bank, the strategy is discussed with the government of the borrowing country and with other interested structures.

Mobilization of funds

Loans provided by the IBRD to developing countries are financed primarily through the sale of bonds that have the highest reliability rating of “AAA” on global financial markets. While receiving a small profit from lending, the IBRD receives more significant income from its own capital. This capital consists of reserves accumulated over many years and funds received in the form of contributions from the World Bank's 184 member countries. The IBRD uses the resulting profit to cover operating expenses, partially transfers it to IDA and uses it to ease the debt burden of countries.

IDA, which is the world's largest source of financing for the world's poorest countries in the form of interest-free loans and grants, is replenished every three years by 40 donor countries. IDA receives additional funds as countries repay interest-free loans provided for a period of 35 to 40 years. These funds are then used again to provide loans. IDA accounts for almost 40% of the World Bank's total lending operations.

Loans

Acting through the IBRD and IDA, the World Bank provides loans of two main types:

• investment loans and
• development loans.

Investment loans are provided to finance the production of goods, works and services as part of socio-economic development projects in a variety of sectors.

Development loans (formerly called structural adjustment loans) are provided by providing financial resources to support policy and institutional reforms.

The borrower's application for project financing is assessed to ensure that the project is economically, financially, socially and environmentally acceptable. At the loan negotiation stage, the Bank and the borrower agree on the development objectives to be solved within the project, project components, expected results, project performance benchmarks and implementation plan, as well as the loan disbursement schedule. During project implementation, the Bank monitors the use of funds and evaluates the results of project implementation. Three-quarters of outstanding loan funds are managed by Country Directors based in the Bank's permanent missions in member countries. About 30 percent of the Bank's staff work in permanent missions, of which there are almost 100 worldwide.

Long-term IDA loans are interest-free but charge a small fee of 0.75 percent of the funds advanced. IDA's commitment fee ranges from zero to 0.5 percent of the unused loan amount; in fiscal year 2006, the rate of this levy was set at 0.33 percent. Complete information on IBRD financial products, services, interest rates and fees can be found on the World Bank Treasury Department page. The Treasury manages all of IBRD's borrowing and lending operations and also serves as treasurer for other institutions within the World Bank Group.

Grants

The World Bank provides financial support in the form of grants. The purpose of the grants is to facilitate project development by stimulating innovation, collaboration between organizations and the participation of local stakeholders in project work. In recent years, IDA grants, either directly funded or managed through partnerships, have been used for the following purposes:

• Debt relief for highly indebted countries
• Improving the efficiency of sewerage and water services
• Support immunization and vaccination programs to reduce the incidence of infectious diseases such as malaria
• Fighting the HIV/AIDS pandemic
• Support to civil society organizations
• Creating incentives to reduce greenhouse gas emissions

other services

The World Bank provides not only financial support to member countries. Its activities are also aimed at providing analytical and advisory services needed by developing countries. Analyzing the policies pursued by countries and developing appropriate recommendations in order to improve the socio-economic situation in countries and improve the living conditions of the population is part of the activities of the World Bank. The Bank conducts research on a wide range of issues, such as the environment, poverty, trade and globalization, and economic and industry research in specific sectors. The Bank analyzes the prospects for economic development of countries, including, for example, the banking and/or financial sector, trade, poverty and social protection systems.

A significant part of the efforts is also aimed at educational activities and the dissemination of knowledge that helps solve the country's development problems.

The World Bank Institute is one of the tools for implementing policies to disseminate knowledge that contributes to solving the tasks of the World Bank. IWB works with politicians, businessmen, technical specialists, and other categories of citizens, as well as with universities and educational centers from different countries.

The B-SPAN webcast service is an Internet portal through which the World Bank hosts seminars and conferences on topics such as sustainable development and poverty reduction.

Directions (areas) of activity

The World Bank's activities cover a wide range of activities:

Poverty problems Food supply problems Agriculture, forestry and other sector development economics related to land use The problem of fighting AIDS in developing countries Fight against corruption Combating the spread of viral diseases Fighting malaria Problems of childhood and adolescence The problem of child exploitation Problems of energy development, access to sources and search new energy sources Economic policy and debt problems of developing countries Development of development strategies Problems of investment in developing countries Problems of education Environmental issues Problems of climate change and its impact on people's lives Strategic objectives for the development of humanity and individual regions

Problems of economic growth, taxation, debt Financial crisis Development of the banking system, financial markets, payment systems Globalization Rising prices, problems of donor countries Urbanization Municipal finance India assistance in eliminating the consequences of the devastating earthquake in the state of Gujarat.

Course work

The World Bank

Is done by a student _________________________________________

Introduction

The modern world economy is interconnected and interdependent. To serve the various interests of representatives of individual countries, special mechanisms and tools have been created. International monetary, financial and banking organizations occupy an important place in the system of international economic relations.

International monetary, credit and financial organizations can conditionally be called international financial institutions. These organizations are united by a common goal - developing cooperation and ensuring the integrity and stability of the complex and contradictory world economy. Organizations of global importance include primarily specialized UN institutions - the International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements, as well as regional banks of developing countries and regional monetary organizations of the EU - the European Investment Bank, the European Monetary Institute and etc.

In addition to these organizations, an important role in international economic relations is played by the World Bank Group, a specialized UN institution, which consists of the International Bank for Reconstruction and Development (IBRD) and its branches - the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Agency on Investment Guarantees (IAIG) and the International Center for the Settlement of Investment Disputes (ICSID).

In our coursework we will look at the structure, functions and activities of the World Bank.

1. International credit

International credit is the movement of loan capital in the sphere of international economic relations, associated with the provision of foreign exchange and commodity resources on the terms of repayment, urgency and payment of interest. Private enterprises (banks, firms), government agencies, governments, international and regional monetary and financial organizations act as lenders and borrowers. The objective basis for the development of international credit is due to the expansion of production beyond national boundaries and the strengthening of the internationalization of economic relations. In addition, it helps improve production efficiency.

The terms of an international loan contain the concepts of “loan currency” and “payment currency”, “amount”, “term”, “conditions of use and repayment”, “cost”, “type of collateral”, “risk insurance methods”.

For an international loan, it is important in what currency it is provided, since its instability leads to losses on the part of the lender. The choice of currency is influenced by many factors, including interest rate levels, the practice of international payments, the degree of inflation, exchange rate dynamics, etc. The currencies of international loans are national monetary units, Eurocurrencies (since the late 50s), and international currency units of account. The payment currency may not match the loan currency. For example, “soft” loans provided in the lender’s currency are repaid in the borrower’s national currency or in the country’s traditional export goods.

The loan amount is the part of the loan capital that is provided to the borrower in commodity or cash form. The loan can be provided in the form of one or several tranches (shares), which are distributed according to the conditions. In accordance with established practice, the loan usually covers up to 85% of the cost of exported machinery and equipment. The rest is provided by advance, cash and guarantee payments from the importer to the exporter.

The loan term depends on several factors: the purpose of the loan; the relationship between supply and demand for similar loans; contract size; national legislation; traditional lending practices; interstate agreements.

Loans are classified according to repayment terms:

― with equal repayment in equal shares over an agreed period;

― with uneven repayment depending on the principle and schedule fixed in the agreement (for example, an increase in the share by the end of the term);

- with a one-time repayment of the entire amount;

- annuity (equal annual payments of the loan principal and interest).

The “price” of an international loan (i.e., the interest rate) is usually based on the interest rates of the leading creditor countries, primarily the USA, Japan, and Germany. International interest rates apply to European loans.

The interest rate affects the cost of the loan. But sometimes the cost of a loan cannot be assessed in monetary terms. For example, establishing control over a foreign firm or borrowing country is not part of the cost of the loan, although it is very important. the same role is played by some (enslaving) conditions of international loans.

When determining the monetary and financial conditions of an international loan, the lender proceeds from the creditworthiness of the borrower, i.e. its ability to pay its obligations in a timely and complete manner. Therefore, one of the conditions for an international loan is to protect the lender from credit, currency and other risks.

Thus, the monetary and financial conditions of international credit depend on the state of the economy, national and world markets for loan capital.

2. World Bank Group

The World Bank (WB) is a multilateral lending institution consisting of six closely related organizations within the UN system whose common goal is to provide financial assistance to developing countries at the expense of developed countries.

In a deeply interconnected and rapidly changing global economy, the World Bank provides loans, advice, and a range of other standard resources to more than 100 developing countries and countries with economies in transition. Aid is delivered in a way that maximizes benefits and mitigates externalities for poorer countries as they participate more in the global economy. The World Bank uses its financial and human resources, and coordinates with other organizations, to provide individual assistance to each country in setting itself on a path to stable, continuous and equitable development. The focus is on providing assistance to the poorest people and the poorest countries, but for all its clients the World Bank emphasizes the need to:

― investment in the population, especially through basic healthcare and education

- environmental protection

― support and stimulation of private sector development

― strengthening the capacity of governments to effectively and transparently provide quality services

― supporting reforms to create a stable macroeconomic environment conducive to investment and long-term planning.

The World Bank is the largest development assistance organization, committing $20 billion in new loans annually. However, it is not the only donor and also plays a vital role in coordinating with other organizations (private, governmental, multilateral and non-governmental) for the most effective use of resources in support of the country's ongoing development program.

The World Bank's mission is to reduce poverty and improve living standards through continued growth and investment in people. The World Bank's main activities include:

― investing in the population;

― environmental protection;

— stimulating the development of the private sector;

― support for economic reforms;

― fight against corruption;

― assistance to countries affected by conflicts;

― regulation of investments.

The World Bank is owned by more than 180 member countries, whose views and interests are represented by a Board of Governors and a Board of Directors located in Washington.

Member countries are shareholders with the final decision-making power of the World Bank. Each participating state appoints a manager and an alternate manager to carry out these responsibilities. Governors, representing the government at the level of ministers of finance or planning, meet each fall at the annual meeting of the World Bank. They make decisions on key World Bank policy issues, admit or exclude member countries, make decisions on changes to the authorized capital and distribution of the World Bank's net income, and approve financial statements and budgets.

Due to the fact that ministers meet only once a year, the bulk of management power is delegated to the Board of Executive Directors. Each participating World Bank Group government is represented at World Bank headquarters in Washington, D.C. by an executive director. The five largest shareholders are France, Germany, Japan, the United Kingdom and the United States of America, each appointing its own chief executive, while the other member countries are represented by 19 chief executives who are chosen by a group of countries (or constituencies). Some countries—China, the Russian Federation, and Saudi Arabia—have created constituencies for each country, while others have grouped together into multilateral constituencies. Twenty-four executive directors typically meet twice a week to review World Bank activities, including approval of loans and guarantees, new strategies, the administrative budget, country assistance strategies, lending, and financing decisions.

The WB group includes:

1. The International Bank for Reconstruction and Development (IBRD), created in 1945 to provide loans to relatively rich developing countries.

2. International Development Association (IDA), founded in 1960 with the aim of providing loans on especially preferential terms to the poorest developing countries.

3. International Finance Corporation (IFC), created in 1856 to promote economic development in developing countries by providing support to the private sector.

4. Multilateral Investment Guarantee Agency (MIGA), founded in 1988 to encourage foreign investment in developing countries by providing guarantees to foreign investors against losses caused by commercial risks.

5. The International Center for the Settlement of Investment Disputes (ICSID), established in 1966 to facilitate increased international investment flows by providing arbitration and dispute resolution services between governments and foreign investors.

This interstate investment group has become the world's largest investment institution. The WB group accounts for at least half of the total annual funds allocated by all intergovernmental organizations to developing countries. The World Bank is intended to promote the integration of the economies of all member countries with the main centers of the world economic system.

2.1 International Bank for Reconstruction and Development (IBRD)

The IBRD was created in 1945 as a result of the signing of the Bretton Woods Agreement (July 1944) by 28 countries. in 1947, the UN General Assembly approved the Agreement defining the relationship between the Bank and the UN. It states, in particular, that due to the nature of its international responsibilities and the provisions of its Charter, the Bank is an independent international organization and must function as such. The agreement provides for the Bank's representation at the UN General Assembly, the Economic and Social Council, the UN regional economic commissions, and the UN Development Program. The Bank is considered a specialized agency of the UN; its responsibilities to the UN are to participate in consultations and provide non-confidential information. In turn, the UN has committed to refrain from making recommendations to the Bank regarding individual loans or financing terms.

The IBRD Charter has been changed several times.

Members of the IBRD may be members of the International Monetary Fund (IMF). The IBRD includes 180 countries.

IBRD goals:

Promoting the reconstruction and development of member countries by encouraging investment for productive purposes;

Encouraging private foreign investment, providing loans for production purposes;

Promoting long-term balanced growth of international trade and maintaining balance of payments balances by encouraging international investment to develop the productive resources of the bank's member countries.

The main activities of the IBRD are:

Providing developing countries with long-term loans and credits for production purposes: development of agriculture and rural areas, energy; guaranteeing repayment of debts to relevant governments; providing loans for specific projects;

Providing loans to developing countries for the creation of infrastructure: highways and railways, telecommunications, city ports, energy plants, as well as for the development of education, healthcare, and personnel training. Typically, such loans are issued subject to developing countries meeting such conditions as creating a favorable climate for the activities of TNCs; devaluation of national currencies; liberalization of export controls; eliminating consumer subsidies; exemption of foreign capital investors from taxes; free export of profits; providing guarantees against nationalization, etc.

Providing loans to those developing countries that are unable to pay interest rates close to market rates; the funds for these loans come from investors buying bonds issued by the World Bank;

Lending to poorer countries that are uncreditworthy in international financial markets and unable to pay interest rates close to market rates; the provision of loans to the poorest countries is carried out by the International Development Association (IDA);

Providing long-term loans and credits to member countries of the Bank, including private firms. The latter loans are issued if guarantees are provided by the government of the relevant country; The bank must ensure that the required funds cannot be obtained from other sources on acceptable terms; the use of loans cannot be limited to purchases in any particular Member Country or Member Countries;

Providing technical assistance to developing countries, which is divided into the following types: 1) technical assistance financed as part of loans and credits; open-ended loans and credits for technical assistance; technical assistance financed through the Project Preparation Fund; 2) technical assistance provided but not financed by the Bank - here the Bank acts as an administrative body and this includes projects carried out under the direction of the Bank; This type also includes paid technical assistance programs for rich developing countries, such as oil-producing countries, and for the International Fund for Agricultural Development; 3) technical assistance provided from the administrative budget;

Preparation and implementation of funded projects, including: identifying the object, conducting preliminary preparation and estimating the cost of the project; conducting negotiations and presenting the project to the management of the Bank; practical implementation of the project and monitoring its completion; evaluation of results;

Conducting research on economic, scientific and technical issues; on the development and implementation of specific programs; on issues of credit policy, investment policy and technical assistance; assisting developing countries in increasing their research capacity. The Bank, together with 40 other organizations, supports 18 international agricultural research centers that develop modern, efficient food production technologies;

Promoting policy dialogue between the Bank and poor member countries in connection with the financing of sectoral and economic development plans in special conditions;

Financing projects and activities of developing countries to protect the environment from the global environment fund, in which the bank acts as a trustee and customer of projects;

Cooperation at the national level with non-governmental organizations, providing them with funds for project financing and consulting assistance;

Organizing and conducting seminars and training courses for representatives from developing countries; publication and distribution of educational materials;

Acting as a member of an advisory body created by Canada, France, the Netherlands, and the United States in order to coordinate the activities of creditor countries that systematically finance programs in developing countries;

Providing information on projects in member countries approved by the Bank. This includes project documentation: examination results; national environmental programs; information on the development of individual countries and economic sectors.

The supreme body of the Bank is the Board of Governors, whose functions include: determining the general policy of the Bank; admission of new members; making decisions on the size of the bank's authorized capital; distribution of net income. The executive body of the Bank is the Directorate, consisting of 24 managing directors, of which 5 are appointed by member countries with the largest number of shares, and 19 are elected by managers from among representatives of other member countries. The Directorate elects the President of the Bank, who exercises operational management of the Bank's activities and is responsible for the staff of employees. The Directorate in its work relies on 5 committees: 1) joint audit committee; 2) committee on personnel policy issues; 3) committee for developing regulations; 4) committee on cost efficiency and budgetary practices; 5) committee on administrative issues.

The Bank's financial resources are generated from contributions from member countries, from loans on international capital markets and bank profits.

The authorized capital of the IBRD, formed by subscription of member countries, initially did not exceed 10 billion dollars. The reorientation of the Bank's activities to the vast regions of developing countries forced the management to constantly increase credit resources. The subscribed capital increased in 1959, in 1980, in 1988, in 1997 it amounted to $182 billion - of which $11 billion was paid-up capital and $171 billion was part of the subscription, which can be claimed by the Bank only if it lacks the resources to urgently repay its obligations. It is this large part that serves as the guarantee fund against which the IBRD borrows significant funds, primarily on the global financial market, issuing bond issues to expand its lending operations. In 1997, the Bank's external borrowings amounted to $10 billion. From these funds, the Bank finances its lending operations. In addition, the Bank draws funds from retained earnings, as well as from payments to repay loans provided to it. The Bank provides medium- and long-term loans to the governments of its member countries or private organizations under government guarantees and controls their use. Recipient countries are required to comply with the Bank's recommendations and provide it with reports on the use of loans and the required information.

IBRD recommendations give priority to the development of the private sector of the economy and attracting foreign capital to developing countries. If IBRD recommendations are not accepted by the country requesting the loan, it is often not granted. Bank loans cover on average only about 30% of the total cost of the facilities being financed, and the rest of the costs for the facility must be provided from internal sources of lending and financing or other external sources. The main task of the IBRD is to lend to specific objects (mainly infrastructure - transport, communications, energy) based on their careful selection. Since the 1980s, social aspects of development, especially the fight against poverty, have increasingly played a role in Bank lending. Loans for the development of healthcare, education, family planning, and agricultural development are increasing. Particular attention is paid to environmental protection and privatization.

The IBRD also began to provide loans for structural adaptation in accordance with the program of economic reforms and the transition of the borrower country to a market economy. At the same time, loans allocated by the Bank are not tied to specific objects, and borrowing countries can dispose of borrowed funds quite freely.

2.2 International Development Association (IDA)

The International Development Association was created in 1960. Formally, it is considered independent from the IBRD, since it has its own charter and financial base, but in fact it is a fund of resources managed by the IBRD and is a branch of the IBRD. The President of the IBRD is also the President of the IDA.

The difference between the IBRD and IDA lies in the sources of acquisition of financial resources for lending and the conditions under which they provide loans to developing countries. The IBRD obtains most of its funding from world markets and provides loans to developing countries at lower interest rates and with longer maturities than commercial banks; IDA provides interest-free loans to developing countries through contributions from donor countries.

The IDA includes 159 member states, which are divided into 2 categories: 26 economically more developed countries included in category I, and 133 less developed countries in category II.

IDA goals:

Providing long-term loans to the poorest developing countries;

Providing assistance to economic development and improving living standards in the least developed countries of the Association, in particular, by providing them with the necessary funds to finance specific projects, the feasibility of which is confirmed by IBRD experts;

Helping to improve productivity in countries with the lowest annual per capita incomes.

The main activities of IDA are:

Lending to projects in the poorest and least creditworthy countries for the purpose of their economic development. Countries receiving loans are selected according to 4 categories: 1) the country must have an annual per capita income of less than $1,305; 2) the country must have sufficient economic, financial and political stability to justify the provision of long-term loans for development purposes; 3) the country must be experiencing serious balance of payments difficulties; 4) the country's policy should be aimed at economic development. IDA loans generally have terms of 50 years, with repayments beginning 10 years after the loan is received. No interest is charged for using the loan;

Conducting an examination of financed projects to determine the effectiveness of the use of financial assistance;

Assisting member countries in carrying out economic reforms; in ensuring development in the field of ecology; in the fight against poverty.

The bulk of IDA's financial resources come from three sources: 1) profit transfers from the IBRD; 2) capital, the subscribers of which are its member countries; 3) contributions from wealthier IDA members, including a number of countries with middle income per capita.

2.3 International Finance Corporation (IFC)

The International Finance Corporation was created in 1956 as an independent legal entity with its own charter and its own resources. In fact, it is a branch of the IBRD and a specialized agency of the UN. As a financial organization, it is part of the WB group. There are 171 states that are members of the IFC.

IFC goals:

Providing assistance in financing private enterprise, mainly in developing countries, for the purpose of economic development of member states;

Providing assistance in the management of enterprises created with the participation of both foreign capital and local investment;

Stimulating the influx of private capital into the production sector;

Implementation of the principle of profitability in cooperation with the private sector. The total amount of capital invested by IFC in 102 countries was estimated in 1997 at $84.4 billion.

The main activities of the IFC are

Financing business in member countries by lending directly to private companies and investing IFC's own funds in them, without requiring government guarantees. Loans are provided for a period of 7 to 12 years at fixed or variable rates; Loans are repaid in the currency in which the loan was received;

Investments at the expense of own funds in the manufacturing and mining industries, agriculture, public utilities, tourism;

Attracting private funds for investment in projects for infrastructure development and environmental protection;

Promoting the development of entrepreneurship in small businesses;

Assisting private and mixed-capital enterprises in mastering modern methods of production management, etc.

IFC's financial resources are derived from contributions from member states in accordance with their subscription to IFC shares; deductions from the IFC's profits received from interest on loans provided, financial fees, dividends and profit sharing, income from the sale of shares; subsidies and loans from the World Bank.

2.4 Multilateral Investment Guarantee Agency (MIGA)

The Multilateral Investment Guarantee Agency was created in 1988 as a branch of the World Bank. Financially independent. As a specialized agency it is part of the UN system. MIGA has 134 member states.

AIHA goals:

Providing guarantees for investments aimed at productive purposes, mainly in developing countries;

Insurance and reinsurance against non-commercial risks;

Facilitate the development of projects and ensure their validity in terms of the needs of a particular country;

Providing technical assistance to stimulate the flow of foreign investment into developing countries;

Carrying out information activities.

The main activities of MAIG are:

Providing guarantees aimed at protecting against losses caused by the following circumstances: inconvertibility of the local currency; expropriation of property in the host country; war and civil unrest; violation of contract by the counterparty of the host country. MIGA provides investors of its choice with guarantees for investments in member countries (mainly developing countries) and countries with economies in transition against non-commercial risks, which actually means insurance against political risks;

Carrying out joint insurance or reinsurance operations;

Providing guarantees to international consortia;

Assisting developing countries in developing projects and preparing applications for guarantees; providing applications with feasibility studies, in particular in financial, economic, environmental aspects;

providing assistance to developing countries in order to attract foreign direct investment.

2.5 World Bank activities aimed at social development

The World Bank provides economic support to various social programs around the world. Thus, since the late 1980s, World Bank loans to schools around the world have doubled. In the 90s, they averaged $1.8 billion per year. The latest example of a WB loan for education is the Back to School Program in Indonesia, which will provide more than 6 million scholarships to the poorest primary and secondary school students.

Last year, the World Bank loaned $1 billion to improve health and nutrition in developing countries. The Bank intends to triple its lending commitments to the International Development Association this year to combat AIDS, malaria, tuberculosis, and vaccinations.

In addition to funding disease-specific and vaccination programs, the World Bank is increasing assistance for basic child health services, which are critical to long-term control of infectious diseases. One example of health projects is the Bank's assistance in establishing some 300 new community health centers in Mali.

In October 1999, the World Bank, together with the World Health Organization (WHO), the United Nations Population Fund (UNFPA), and the United Nations Children's Fund (UNICEF), launched the Safe Motherhood Initiative to dramatically reduce maternal mortality rates from their current levels of one death every minute.

In April 1996, the World Bank and the IMF launched the Heavily Indebted Poor Countries Initiative, the first international response aimed at providing significant debt relief to the world's poorest countries. Under this initiative, the debt of more than 30 countries acquiring this right will be reduced by $50 billion.

The consequences of such a move for each of these countries would be significant. For example, Mozambique is eligible for write-off, which will reduce its debt by almost 75 percent. The Bank is moving quickly forward on the initiative, which was deepened, expanded and accelerated last year to deliver greater benefits to more countries as quickly and efficiently as possible. The total amount of this assistance, approved to date for 10 countries, is more than one-third of the total amount of projected debt relief under the Initiative and will save them $17 billion.

In addressing poverty around the world, the World Bank has established relationships with a wide range of partners over the past five years: the World Wildlife Fund to protect forests; with the International Conservation of Nature to preserve the Earth's biological diversity; with public and private sector organizations to develop a Carbon Solutions Fund to help mitigate global warming.

Since 1996, the World Bank has implemented more than 600 anti-corruption programs and governance initiatives in more than 95 client countries. Initiatives range from training judges to organizing seminars and training in investigative journalism. The Bank has also developed strict guidelines regarding the use of loans and anti-corruption measures and has established an anonymous hotline to receive complaints about cases of corruption. By June 2000, 48 firms and individuals had been permanently disqualified from participating in Bank-financed contracts.

In 1980, investment in the energy sector accounted for 21% of World Bank loans. Today this figure has dropped to 2%. By contrast, borrowing to improve health, nutrition, and education has increased nearly fivefold, from 5 percent in 1980 to more than 22 percent today. In its work, the World Bank is paying increasing attention to social protection, especially the social security system, as well as new problems, in particular gender.

The latest example is a social protection project in India, where the World Bank is helping to provide educational opportunities for low-skilled female workers and school dropouts. The latest example of a gender project is in Vietnam, where the World Bank has undertaken a series of studies on cases of gender-based violence. Based on the information obtained from the research, the Vietnamese government is currently developing a gender strategy.

The World Bank supported initiatives to overcome the consequences of military conflicts in 35 countries. Among the most innovative projects: a knitwear cooperative in Bosnia that brings together representatives of various ethnic groups; assistance in providing basic services to Kosovar refugees in Albania; Cambodia Veterans Assistance Program; support in planning the conversion of military bases to civilian use in South Africa.

The Bank pursues a policy of decentralization, development taking into account the specifics of countries and broad public participation, and initiates projects aimed at the interests of small local communities. In Bosnia and Romania, local communities are coming together to rebuild trust and build schools. In Indonesia in 2000, villages and local groups of men and women make decisions and put forward proposals that release funds within two weeks.

At the same time, more than 81% of the funds allocated by the World Bank in 2000 received a satisfactory or better rating, which is an impressive indicator for an organization operating in an environment of inevitable risk.

3. Participation of Kazakhstan in the World Bank Group

Kazakhstan became a member of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the Multilateral Investment Guarantee Agency (MIGA) and the International Finance Corporation (IFC) in September 1993. Kazakhstan applied for membership in World Bank agencies on January 27, 1992. The country became the 163rd member of the IBRD and the 143rd member of the IDA. In fulfillment of its obligations as a member of the IBRD, Kazakhstan made a contribution in the amount of US$15,041,677 to the institution. The country is the fifth of the former Soviet republics to join the World Bank. On October 21, 2000, Kazakhstan became a member of the International Center for the Settlement of Investment Disputes (ICSID).

After Kazakhstan joined the World Bank Group in 1992, the country was provided with twenty-two IBRD loans, and the total amount of World Bank obligations to Kazakhstan reached $1.883 billion.

The main areas financed by the World Bank in Kazakhstan include: water supply and sanitation, agriculture, roads, social protection, public sector management and energy.

Conclusion

The World Bank is essentially a financial cooperative owned by 181 member countries and operating under a benchmarking and balance sheet system.

The World Bank helps countries strengthen and maintain the fundamental conditions they need to attract and retain private investment. With financial and non-financial support from the World Bank, governments are reforming their overall economies and strengthening their banking systems. They invest in people, infrastructure and the environment to expand their ability to attract and enhance private investment. With the help of World Bank guarantees, MIIG insurance against political risks and joint investment with IFC in equity capital, investors minimize their risks and receive optimal conditions for investing in developing countries and countries undergoing transition to a market economy.

The World Bank is entering into a strategic agreement with its clients and shareholders to improve the quality of its assistance by:

― providing assistance to the poorest countries to reduce their debt burden so that they can finance development initiatives instead of paying interest;

― providing assistance in the fight against corruption, which undermines economic growth;

― providing assistance to developing countries in adapting modern communication technologies, skills and abilities in order to ensure their competitiveness;

― strengthening and reforming the banking system and financial sector to avoid crises such as in Mexico in 1994-1995 and Southeast Asia in 1997-1998;

― meeting the food needs of the growing population and paying more attention to the development of agriculture and rural areas;

― ensuring a situation in which development meets the social and cultural needs of beneficiaries.

Literature

1. Questions about Kazakhstan: Little-known facts from the activities of the World Bank // http://www.worldbank.org.kz/content/faq_rus.html

2. Gerchikova I.N. International economic organizations. M., Consultbanker, 2001.

3. Zolotov A.F. International monetary relations: Course of lectures. K., MAUP, 2001.

4. International law / Ed. Yu.M. Kolosova et al. M., Moscow Region, 1993.

5. International monetary, credit and financial relations / Ed. L.N. Krasavina. M., Finance and Statistics, 1994.

6. International economic organizations: Directory / Ed. AND ABOUT. Farizova. M., Moscow State University, 1982.

7. International economic relations: Textbook / Ed. V.E. Rybalkina. M., Unity, 2000.

8. Neshataeva T.N. International organizations and law M., Delo, 1998.

9. Noskova I.Ya., Maksimova L.M. International economic relations. M., Unity, 1995.

10. Pebro M. International economic, financial and currency relations. M., Progress, 1994.

11. Shmyreva A.I., Kolesnikov V.I., Klimov A.Yu. International monetary relations. S.-Pb., Peter, 2001.

12. Schrepler H.-A. International economic organizations: Directory. M., “International Relations”, 1999.

13. Shchetinin V.D. International economic relations: Course of lectures. M., Yes MFA of the Russian Federation, 1996.

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The World Bank- an international financial organization created for the purpose of organizing financial and technical assistance to developing countries.

The World Bank was founded in 1944. The headquarters is located in Washington, DC. The organization has more than 100 offices around the world, employing approximately 9,000 people.

Structure of the World Bank

The World Bank now consists of several organizations that are part of a single entity known as the World Bank Group. These organizations:

1. International Bank for Reconstruction and Development (IBRD). Provides financing to governments of middle-income and creditworthy low-income countries.
2. International Development Association (IDA). Provides interest-free loans and grants to governments of the world's poorest countries.
3. International Finance Corporation (IFC). Large development organization focused on the private sector. Helps developing countries with investments, raising funds from international financial markets, consulting companies and governments.
4. Multilateral Investment Guarantee Agency (MIGA). Helps attract foreign direct investment to developing countries by insuring investors and creditors against political risks.
5. International Center for the Settlement of Investment Disputes (ICSID).

World Bank Office

The World Bank is governed as a cooperative society whose shareholders are the organization's 188 member countries. Shareholders are represented by the Board of Governors, which is the highest policy-making body of the Bank. Typically, the managers are the countries' ministers of finance or development. The Board of Governors meets once a year during the Annual Meetings of the Governing Boards of the World Bank Group and the International Monetary Fund.

Specific powers have been delegated to 25 executive directors. The five executive directors represent the countries with the largest stakes: the USA, Japan, Germany, France, the United Kingdom. The remaining 20 executive directors represent country groups.

The World Bank (hereinafter referred to as the Bank or WB) is an intergovernmental financial and credit organization, the most powerful global investment institution, uniting 182 shareholder states. Established simultaneously with the IMF. The World Bank was initially called upon, with the help of the funds accumulated by its member countries and the capital attracted from American investors, to stimulate private investment in Western European countries whose economies were undermined by the Second World War.

Since the mid-50s, when the situation in Western European countries stabilized and the collapse of the colonial system began, the World Bank has changed the direction of its activities. Its main goal is to preserve the liberated states within the framework of the world economic system through the development of market relations in them.

According to the charter of the World Bank, only members of the IMF can become its members.

The Bank's areas of activity are:

• providing loans, grants and technical assistance primarily in infrastructure sectors of the economy;
• provision of consulting, analytical and training services;
• stimulating the influx of investment into the country from other international financial sources.

  Main tasks of the Bank:

  1. Coordination of capital movements on a global scale.
  2. Eliminating political and economic differences between developed and developing countries.
  3. Stabilization of the world economy.
  4. Serving as a leading think tank.

  Directions of the Bank's current activities:

  1. Development of a strategy to reduce poverty.
  2. Work in the field of human resources.
  3. Organizational development.
  4. Environment protection.
  5. Addressing debt issues.
  6. Private sector development.

  The World Bank provides loans to developing countries to reduce poverty and finance investment that promotes economic growth. The funds provided are invested in roads, power plants, schools and irrigation networks, and are also used for activities such as agricultural extension and implementation, teacher training and nutrition programs for children and pregnant women. Some World Bank loans are intended to finance changes in the economic system of countries in order to increase their economic stability and efficiency, and orient them towards a market economy. In addition, the World Bank provides “technical assistance,” or advice, to national governments to help them improve the efficiency of certain sectors of the economy and the importance of those sectors to national development.

  Managment structure. 1. All powers of the Bank are vested in the Board of Governors. Each WB member state is represented on the Council by one governor. This is usually a government official at ministerial level. With the exception of certain powers (admission of new members, increase or decrease of the authorized capital, suspension of the membership of any state), the managers delegate their powers to the Board of Executive Directors.

  2. The Board of Executive Directors is responsible for the implementation of the main operational activities - the policies of the Bank, proposals for loans and credits, audit of accounts, administrative budgets, annual reports on the policies and operations of the Bank.

  3. Development Committee - a joint ministerial committee of the Boards of Governors of the World Bank and the IMF on the transfer of real resources to developing countries. It examines issues such as poverty reduction, private sector development, the impact of industrialized countries' policies on developing countries, and debt reduction.

  4. The President of the Bank, whose candidacy (by tradition) is nominated by the executive director representing the United States of America. But he is elected by the Board of Executive Directors.

  The President of the World Bank is responsible for the day-to-day management of the Bank's activities and, in the overall direction of the Board of Directors, for the Bank's organizational structure and the appointment and dismissal of its staff. The President oversees a staff of over 7,100 people from more than 100 countries, with the assistance of three Managing Directors who oversee the Bank's staff in specific areas.

  Formation of Bank resources. The authorized capital of the World Bank, formed by subscription of member countries to its shares, initially did not exceed 10 billion US dollars. The reorientation of the Bank's activities to the vast region of developing countries forced management to constantly increase its lending resources. As a result, the subscribed capital by the mid-1990s. reached 165 billion US dollars.

  Thus, the World Bank has now become the largest bank in the world in terms of its share capital. Despite the sharp increase in the Bank's capital in the 1980s, the paid-in share fell to 7% of the Bank's shares distributed to member countries. The rest of the subscription can be claimed by the Bank only if it does not have the resources to urgently repay its obligations.

  It is this (large) part that serves as the guarantee fund against which the World Bank borrows significant funds, primarily on the global financial market, issuing bond issues to expand its lending operations. In this way, the Bank promotes the export of capital from industrialized countries to developing ones, acting as an intermediary between them and providing private investors with a double guarantee - the World Bank itself and the governments of member countries. Therefore, private banks and other financial institutions willingly invest free capital in the Bank's bonds, the debt on which by the mid-90s. reached 92 billion US dollars. By receiving a solid income on these highly quoted bonds (on average about 7% per annum), investors are free from risk.

  In recent years, the Bank has acted as the largest borrower in the global financial market, occupying the largest share among interstate investment banks in the amount of bond loans issued by them. So, since the late 1970s. The World Bank issues bonds for an average of 5 billion US dollars annually, and in the 90s. this issue reached a record amount of 12.7 billion US dollars (from 7% per annum). Thus, the Bank maintains a relatively high level of loan interest, which meets the interests of private investors seeking the most favorable conditions for investing their capital. Consequently, from the very beginning of its activities, the World Bank has a significant influence on the international movement of long-term capital. It was through it that the private capital of the United States, and later other industrialized countries, flowed in a wide flow to the countries of Asia, Africa and Latin America, which contributed to the resumption of the export of capital, interrupted by the global economic crisis of 1929-1933. and the Second World War.

  Share capital is distributed according to an appropriate formula based on quotas of IMF member countries, and the votes of member countries are distributed in proportion to the number of shares they own. Currently, the US has the largest share of votes (17.07%), followed by Japan (7.09%), Germany (5.48%), France (5.26%) and the UK (5.26%).

  At the time of the establishment of the World Bank, it was a single organization - the International Bank for Reconstruction and Development (IBRD). In subsequent years, the Bank acquired other divisions. In 1956, the International Finance Corporation (IFC) was created to promote the growth of the private sector in developing countries by providing advice to these countries and investing in them without government guarantees. In 1960, the International Development Association (MAP) was established, tasked with providing aid to the world's poorest countries on preferential terms. In 1988, the Multilateral Investment Guarantee Agency (MIGA) was established to promote foreign investment in developing countries by insuring investors against political risks.

  These divisions were created for different purposes, and each has its own charter and members. The President of IBRD is also the President of each division, and the same Board of Executive Directors manages the activities of IBRD, IFC and MAP. MIGA has its own Board of Directors, the majority of whose members are members of the IBRD Board of Executive Directors. IBRD, MAP, IFC and MIGA jointly form the World Bank Group.

  The WB group also includes two more organizations:

  The International Center for the Settlement of Investment Disputes (ICSID), created in 1966, with the functions of adviser and arbitrator in conflicts that may arise between its member states and foreign investors who have invested capital in the economies of these states;

  The South Africa Special Relief Fund, established in 1985, provided special funds to provide emergency assistance to poor African countries embarking on major structural reform programs.

Among the most famous and large-scale international financial organizations is the World Bank. The activities of this institution are recognized by experts as extremely important from the point of view of the balanced development of the economies of the world. Among the key areas of the World Bank’s activities is assistance to developing countries in improving their national economic models. To successfully solve this and other problems, several institutions have been created within the WB structure. What are their specifics? How are the functions of the World Bank implemented?

General information about the World Bank

What kind of institution is this - the World Bank? The full name and functions of this structure - what makes them remarkable? The World Bank (WB) is a group of several different institutions.

In accordance with public data reflecting the activities of the World Bank, the main task of the bank is to increase the level of economic development of states by providing them with financial assistance from wealthy countries. The organization was created in 1945. The bank's headquarters is located in Washington.

WB structure

Let's consider the specifics of the institutions that form the structure of the World Bank. The financial institution in question includes:

• IBRD (or International Bank for Reconstruction and Development);
• IDA (association in charge of development issues);
• IFC (or International Finance Corporation);
• MAGI (an agency responsible for investment guarantees);
• ICSID (a center dedicated to resolving disputes in investment projects).

These organizations are designed to provide loans to states in need at reasonable rates, and in some cases interest-free. Support for countries through grants is also provided. The conditions for providing appropriate assistance from the World Bank are liberalization of the economy, privatization, necessary reforms in the field of education, healthcare, and improvement of infrastructure.

Let us now consider the main functions of the World Bank.

WB functions

Researchers identify the following spectrum:

• investment activities (mainly in developing countries, in the areas of healthcare and education);
• advisory support to national governments on economic issues, analytical activities;
• improving the financial services provided;
• intermediary activities (in the field of resource distribution between developed and economically lagging countries).

Thus, the one under consideration plays a significant role for the global economy. The noted functions of the World Bank are important from the point of view of the balanced economic development of modern states. Let us now consider through what mechanisms the World Bank implements them in practice. This issue can be considered in the context of the activities of the above-mentioned institutions that are part of the World Bank. Let's start with the IBRD.

Specifics of IBRD activities

The IBRD or the International Bank for Reconstruction and Development is an institution that, in addition to the World Bank, is also subordinate to the UN. Many functions of the World Bank are implemented on the basis of this organization. In fact, the IBRD is the parent structure of the World Bank. It can be noted that the institution was founded earlier than the World Bank itself, in 1944. The International Bank for Reconstruction and Development was formed after the Bretton Woods Conference. The purpose of its establishment was to stimulate the restoration of the economies of states that suffered during hostilities.

In the 50s, the IBRD began to perform some of the functions of the World Bank, which we noted above - in particular, to provide loans to developing countries. In the 90s, the organization began to issue loans of this type to countries with a transitional economic system. The specificity of IBRD loans is long-term. The institution issues loans for a period of about 15-20 years. The bank's financial assets are formed by membership fees, the amount of which depends on the quotas defined for member states.

Specifics of IDA activities

Another major structure responsible for the functions of the World Bank is the IDA, or International Development Association. It was formed in 1960. The purpose of its establishment was to provide preferential loans with a long payment period - about 40-50 years - to states characterized by a low level of economic development. For example, in 1961, the organization decided to issue matching loans to India, Chile, Honduras, and Sudan. IDA not only provides loans to help governments of countries with low levels of economic development, but also promotes the export of goods from developed to developing countries. Also within the competence of the IDA is the implementation of various social programs. Countries that are unable to service loans on IBRD terms can count on loans from the IDA. Since its founding, the organization has issued more than $90 billion in loans.

What does IFC do?

The IFC, or International Finance Corporation, is another major structure that includes the World Bank group. Its functions are limited to providing loans aimed at stimulating industry in countries with a low level of economic development. The main goal of this organization is to promote investment in projects implemented in developing countries and improve the standard of living of citizens living in them. Loans from the IFC are issued to private enterprises that show good profitability figures. The loan term is within 15 years. Over the entire period of its activity, the organization has issued loans for more than $20 billion.

Features of MAGA's activities

What is especially noteworthy about the World Bank is that the structure and functions of this organization are distributed in a fairly balanced manner between separate structures. Among the institutions responsible for solving a large number of problems in the field of investment is MIGA. What does it do? MAGI, or the International Investment Guarantee Agency, deals with the issues of insuring relevant financial investments against various non-commercial risks, as well as consulting work in the process of communications with state governments. MIGA stimulates the attraction of capital to developing countries in order to improve their economic performance.

The risks that the organization’s experts analyze may reflect the specifics of currency transfers, confiscation of private property, and political instability. MIGA promotes sustainability in developing countries, as well as informing investors about the prospects for investing money in the economies of the respective countries. Among the main tools of MAGA's activities are guarantees. The organization has issued more than $17 billion since its founding. With the assistance of the institution, investments worth more than US$50 billion have been made in developing countries.

Specifics of ICSID's work

When studying the specifics that characterize the structure and functions of the World Bank, it is necessary to study the features of the activities of ICSID, or This organization helps to protect the interests of partners participating in certain legal procedures. ICSID is engaged in eliminating possible non-economic barriers that accompany the interaction of states and enterprises in the process of international cooperation. The institution in question carries out its functions through two main mechanisms - reconciliation and arbitration proceedings. ICSID services are paid, participation in them is voluntary.

Features of WB loans

Let us study the specifics of loans that are provided with the aim of solving the main task within the competence of an institution such as the World Bank - the development of countries with lagging economies. The organization provides loans in two main types. Firstly, these are investment loans. They are provided for the purpose of financing industrial sectors in the economies of developing countries, as well as in other segments of economic systems that are important from the point of view of solving socio-economic problems. Secondly, these are aimed at stimulating the political development of countries. Their receipt presupposes that states carry out the necessary reforms.

Consulting support

In some cases, the World Bank may perform functions that actually amount to mediation between other financial institutions or investors and the governments of countries in need of financial support. So, for example, obtaining the necessary loans by the state in some cases may be associated with the need for their economies and political systems to meet certain criteria that lenders want to see. The activities of the World Bank can thus be associated with advisory support to state governments for the implementation of activities aimed at achieving compliance of national economic and political systems with the necessary criteria.

WB Group activity strategy

The main areas of the WB's activities, both in the field of credit policy and in the field of consulting services, are recorded in a separate document - the Strategy of the WB Group. This source is used as a key source in the interaction of the World Bank with governments in need of financial assistance. At the same time, the strategy is of a framework nature. Specific areas of the World Bank's activities in the field of assistance to an individual state are being worked out based on the specifics of its economy and political system.

Sources of financing activities

So we've looked at some of the key aspects of an institution like the World Bank. We also know the decoding and functions of this organization. Let us now study such an aspect of the World Bank’s activities as raising funds to finance activities. What sources does this international organization operate from?

There are different ways to attract funds from the World Bank for development, as well as to perform key functions. For example, with regard to IBRD loans to developing countries, the corresponding financial resources are attracted through the sale of bonds with a high rating. Another source involved in the activities of the World Bank is its own capital, which is contributed by the member countries of the organization. This resource is also used to fulfill obligations related to servicing debt obligations to the IBRD. The World Bank also has more than $193 billion at its disposal. In practice, the organization has not yet used this resource, but it has such a right.

WB and other international organizations

So, we have studied the key features that characterize the World Bank. We also know the full name and functions of this institution. Can we say that the World Bank is a unique institution of its kind? This is partly true. But there are a number of international organizations whose functions have certain signs of similarity with the activities of the World Bank. Let's look at a number of examples.

In particular, the functions of the World Bank and OPEC have a certain proximity. The fact is that a significant percentage of the countries that are members of the Organization of Petroleum Exporting Countries are classified as developing. The functions of OPEC are expressed, in particular, in stimulating the development of their economies through well-established procedures for the export of the relevant type of raw materials to world markets.

World Bank and IMF

The functions and role of the World Bank in the global economy are quite close to those of these organizations and are also united by the fact that both of them were established with the aim of restoring the economies of the world after the Second World War. The principles of building the organizational structure of the World Bank and the IMF are quite similar. For example, the amount of contribution of a particular state to the total capital of an institution determines the degree of its influence on the activities of the institution. The similarity of the functions of these organizations can be seen in the fact that they are concentrated around solving problems of stimulating the economic development of countries in need of external financial support - for example, due to a balance of payments deficit.