WB World Bank. The World Bank: history of creation, structure and activities

) an influential financial organization is The World Bank(World Bank). What is it, who is it governed by, which countries does it provide financial assistance to and on what terms - and what does the World Bank do in Russia?

History of the World Bank

Organization with name International Bank reconstruction and development (IBRD), just like the IMF, was founded by the decision of the Bretton Woods conference, dedicated to discussing financial and currency relations after the Second World War and took place in July 1944 in the USA.

Formally established on December 27, 1945, the IBRD made its first loan of $250 million under its second president, John McCloy, who served from March 17, 1947 to July 1, 1949. The borrower turned out to be France, and prerequisite lending - non-participation of communists in the coalition government of the country. Subsequently, the World Bank actively lent to Japan and Western European countries that were rebuilding their economies after the war under the Marshall Plan. Over time, the Group was formed World Bank from several organizations that decide various tasks. The headquarters of all organizations are located in Washington.

Further milestones in history:

1960 - establishment of the International Development Association;

1968-1980 - increase in volumes and expansion of the structure of loans to developing countries;

1980-1989 - lending to third world economies, aimed at their development, with a reduction in loans for government social spending;

Since 1989 - further expansion of the range of loans for a wide variety of purposes

In 2007, the World Bank provided developing countries with $23.6 billion in loans and borrowings.

Structure of the World Bank

World Bank Group

The World Bank Group today consists of 5 structures:

1. International Bank for Reconstruction and Development (IBRD) - provides financing in the form of loans to middle-income countries and creditworthy member states;

2. International Development Association (IDA) - provides grants and interest-free loans to the governments of the poorest countries;

3. International Finance Corporation (IFC) - lends exclusively to private companies;

4. Multilateral Investment Guarantee Agency (MIGA) - attracts foreign direct investment in developing countries by providing guarantees to investors and creditors, serving as insurance against political risks;

5. International Center for the Settlement of Investment Disputes (ICSID) - deals with the resolution of disputes related to foreign investments

At the same time, the concept of “World Bank” refers only to the IBRD and IDA that form it, and the concept of “World Bank Group” refers to all five organizations.

The highest governing body is the Board of Governors, which meets once a year as part of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank. The Governing Council includes one representative each from 189 member countries. The number of votes of each of them depends on the share in the capital of the bank. The following hierarchical structure is the Coordination Committee:

The current activities are managed by the Board of Directors located at the headquarters, 20 of whose members represent groups of member countries, 5 of the largest shareholders:

1. USA (16.4% shares);

2. Japan (7.9% shares);

3. Germany (4.5% shares);

4. Great Britain (4.3% shares);

5. France (4.3% shares)

The president, who is elected for a 5-year term by the Board of Governors, presides at meetings of the Board of Directors and heads the general management of the bank. Since 2012, the post of president has been occupied by Jim Yong Kim, who was re-elected in 2017 - like all his predecessors, a US citizen. The World Bank has a total workforce of nearly 12,000 people, with about 60% working in the United States.

Organization membership

A condition for membership in the IBRD is the member country's membership in the IMF. In turn, to become a member of any other organization of the World Bank Group, a country must first join the IBRD.

Members International Bank reconstruction and development today are 189 states, the International Development Association - 173.

Goals and functions of the World Bank

The main directions of the World Bank:

Financing of state development and reconstruction programs;

Help poorest countries, the fight against hunger and poverty;

Encouraging and supporting global partnerships;

Mat. stimulation sustainable development environment;

Improving maternal and child health, combating HIV/AIDS and widespread infectious diseases

IBRD and IDA finance projects in a wide variety of areas in the form of:

Low interest loans;

Long-term interest-free loans;

Grantov

The bank's funds consist of capital accumulated over many years and replenished by contributions from member countries, as well as proceeds from the sale of the bank's bonds.

Last year, 2017, according to annual reports bank, the IBRD provided $17,861 million, and the IDA - 12,668 million. With regard to the regions, the funds were distributed quite evenly: 23% of the funds were sent to Africa (although 6,623 million were allocated from the IDA, and only 427 from the IBRD), in South Asia- 18%, to East Asia and the Pacific region - 17%. In fiscal year 2017, IBRD raised the equivalent of $56 billion by issuing bonds in 24 currencies. According to Standard & Poor's, the bonds have the highest safety rating. Therefore, such bonds are suitable not only for corporations, but also for traditionally cautious insurance companies and pension funds.

However, IDA is financed largely through contributions from partner countries from developed and middle-income countries. In addition, part of the money comes from IBRD income. Since 2016, IDA has the highest credit rating.

In addition to financing public and private sector projects, the organization provides advisory and analytical services to developing countries. The official website of the bank, worldbank.org, publishes World Bank data on the state of the economy, education, health care and other aspects of the development of participating countries.

World Bank in Russia

Russia joined four of the five World Bank Group entities in 1992. The Russian Federation's share in the capital of the World Bank currently stands at 2.98%. The country is represented on the World Bank Board of Governors by the head of the Ministry of Economic Development, Maxim Oreshkin.

In July 2014, due to sanctions imposed on Russia, the country's receipt of new funding was suspended. However, the State Program external borrowings RF in the WB and currently consists of 16 projects totaling $2 billion.

In addition, according to the Ministry of Foreign Affairs of the Russian Federation, the World Bank in Russia has a portfolio of 6 projects for total amount loans of $435 million.

Criticism of the world bank

The World Bank is often accused of doing the same thing as the International Monetary Fund - lending developing countries with the imposition of certain restrictions on them and the demand for reforms that drive states into credit bondage.

One of the World Bank's VIP critics, Nobel laureate economist Joseph Stiglitz, who at one time worked as the organization's chief economist and knows it from the inside, argues that IBRD programs do not ensure sustainable development of the economies of third world countries. The expert notes that while Russia followed the recommendations of the World Bank, real incomes of citizens fell in the country, and China, which ignored the opinion of the United States, meanwhile achieved economic growth.

Among the most famous and large-scale international financial organizations is the World Bank. Activity of this institution is 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 states by providing them financial assistance from wealthy countries. The organization was created in 1945. The bank's headquarters is located in Washington.

WB structure

Let us 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 balanced economic development 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. Financial assets The bank is formed by membership fees, the amount of which depends on the quotas determined for the participating 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 countries in developing ones. Also within the competence of 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 high level 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 International agency on investment guarantees, deals with issues of insurance of relevant financial investments from 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 promotes the protection of 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's study the specifics of loans that are provided to solve main task, which falls under the purview of an institution such as the World Bank, for 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. 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 directions of WB activities, both in the region credit policy, and in the field of consulting services, are recorded in a separate document - the WB Group Operations Strategy. 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?

Exist different ways attracting funds from the World Bank for development, as well as performing 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 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 are quite close organizational structure WB and IMF. 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.

The World Bank, a multilateral lending institution, consists of 5 closely related institutions whose common goal is to improve living standards in developing countries through financial assistance from developed countries:

The International Bank for Reconstruction and Development (IBRD) was founded in 1945 - providing loans to relatively rich developing countries. IBRD is the main component of the World Bank Group. This bank is often called the World Bank.

The International Development Association (IDA), founded in 1960, provides particularly concessional loans to the poorest developing countries that are unable to borrow from the World Bank.

The International Finance Corporation (IFC) was founded in 1956 to promote economic growth in developing countries by supporting the private sector.

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

The International Center for the Settlement of Investment Disputes (ICSID) was founded in 1966. 1 – to promote international investment flows by providing arbitration and dispute resolution services between governments and foreign investors; consulting, scientific research, information on investment legislation of various countries.

The International Bank for Reconstruction and Development was created in 1945 after 28 countries signed the "Status of Agreement for the International Bank for Reconstruction and Development", which was developed at the United Nations Monetary and Financial Affairs Conference held in 1944 at Bretton -Woods (USA). The IBRD Charter has been changed several times. The Bank, as a specialized agency of the UN, is part of the United Nations system.

Location: Washington. Currently it unites more than 180 countries of the world. The authorized capital is $142 billion. Countries pay 20% of their quotas in the authorized capital, with 2% in convertible currency and 18% in national currency.

Currently, the IBRD has focused its attention on providing assistance to developing countries and countries with economies in transition, incl. CIS. Russia joined the IBRD on June 16, 1992.

Only IMF states can join the IBRD at the time and on the conditions determined by the bank. Each member country of the IBRD must become a subscriber to its capital, with the minimum share of capital contributed determined by the bank.

Goals:

promoting the reconstruction and development of the territories of Member States by encouraging investment for production purposes;

encouragement of private foreign investment and in addition to private investment, if they are difficult to provide, providing financial resources for production purposes;

stimulating long-term balanced growth and helping to maintain balance of payments balance by encouraging international investment to develop the productive resources of the Bank's member countries.

Structure:

Board of Governors.

Board of executive directors (Executive Board), committees.

Development Committee.

President of the Bank.

All powers of the Bank are vested in Board of Governors, the highest body of the IBRD. Each state is represented on the Council by one governor (plus 1 deputy governor), appointed by each member country for a 5-year term (re-appointment is possible). This is usually a government official at ministerial level (minister of finance or governor of the central bank). Once a year, the Boards of Governors of both the IMF and the World Bank hold separate and joint sessions as part of the Annual Meeting. With the exception of certain powers specifically reserved to them in accordance with the Status of Agreement (admission of new countries, increase or reduction of the Authorized Capital, suspension of the membership of any state, etc.), the managers delegate their powers to the Board of Executive Directors. Decisions are made by a majority of the votes cast, unless other rules of procedure are specifically provided for (85% must be collected on important issues). The weight of each state’s vote is proportional to its share in the Bank’s capital (the USA has more than 17% of votes, i.e. the same as 140 developing countries, while Russia’s quota is 1.8%, and Ukraine’s is 0.8 %).

Board of Executive Directors(elected for 2 years) is responsible for the implementation of the main current (operational) activities (Bank policies, proposals for loans and credits, audit of accounts, administrative budgets, annual reports on Bank policies and operations). Five of the 24 executive directors are appointed by the five largest shareholders of the Bank (USA, Japan, Germany, France and the UK); other countries are grouped into 19 groups, each of which is represented by one executive director elected by the country or group of countries. The number of countries each of these 19 Executive Directors represents varies considerably. It is up to the states to decide how they are grouped, often according to geographic location, as well as political and cultural factors. In its work, the Board of Executive Directors relies on the assistance of various committees: joint audit and temporary committees, committees on personnel policy, on the development of regulations, on cost efficiency and budgetary practice, and on administrative issues.

Development Committee, The joint ministerial committee of the Board of Governors of the IBRD and the IMF on the transfer of real resources to developing countries consists of 24 people (ministers of finance or officials comparable level) was created in 1974. It provides advice and prepares reports for the Boards of Governors of the Bank and the Fund. The committee considers issues such as poverty reduction, private sector development, the impact of industrialized countries' policies on developing countries, debt reduction and resource transfer. The committee's recommendations are forwarded to the Boards of Governors of the IBRD and the IMF.

President of the IBRD, which, according to long-standing tradition, is nominated by the Executive Director representing the United States and elected by the Executive Directors for a 5-year term. He can neither be a manager, nor a director, nor their representative. He is responsible for the management of the day-to-day activities of the Bank, the organization of which, the appointment and dismissal of staff, he carries out under the general supervision of the executive directors. His assistants are 3 managing directors. The President is the Chairman of the Board of Executive Directors, who elect and remove him from this position. He supervises a staff of operational employees and manages, in accordance with the instructions of the Executive Directors, the day-to-day affairs of the Bank.

Sources of financing.

The IBRD, whose capital is subscribed to by all member countries, finances its lending operations primarily from this capital, borrowed money With financial markets, as well as through payments to repay previously granted loans.

Activity.

Unlike the IMF, whose activities are relevant during periods of short-term macroeconomic crises, the IBRD deals with problems of long-term economic development. The World Bank Group provides bank lending primarily of two types:

providing loans to developing countries that are unable to pay interest rates close to market rates. The funds for these loans come from investors who buy bonds issued by the IBRD.

loans are intended only for the poorest countries, which are generally uncreditworthy in international financial markets and unable to pay interest rates close to market rates. The International Development Association (IDA) provides loans to such countries.

The IBRD's priorities are structural transformations such as liberalization of foreign trade, privatization, reforms of the education and health care systems, and investments in infrastructure. The IBRD issues long-term loans, usually on commercial terms, although loans are provided to poor countries at preferential, greatly reduced interest rates. The bank specializes in two types of loans. Targeted loans are intended to finance specific investment projects, for example, the construction of roads, bridges or power plants. Program loans are designed to help the government implement structural reforms in key areas of the economy, for example, liberalize foreign economic relations. In this case, the loan is not a guarantee for a specific investment project, but a means of general financing of the state budget in accordance with a fundamental change in economic policy.

In 1995, the IBRD formulated 4 main areas of its activity:

Seeking a new agreement to attract sufficient resources to meet the needs of developing countries.

A unified approach to the Bank’s development policy for its continuation unchanged.

Strengthening and expanding the circle of World Bank partners, both at the global and local levels.

Improving the Bank's functions.

The Bank's technical assistance activities fall into three main categories:

technical assistance financed as components of Bank loans and credits, open-ended loans and credits for technical assistance, and technical assistance financed through the Project Preparation Fund (PPF);

technical assistance provided but not financed by the Bank (Bank as administrative agency; Bank-led projects) and a paid technical assistance program for high-income developing countries income level, for example, oil refineries and for the International Fund for Rural Development;

technical assistance provided through the administrative budget.

The Bank's guarantee policy provides two options for obtaining guarantees: partial risk guarantees, allowing limited recourse for project financing, and partial credit guarantees, used to distribute risks.

Project cycle IBRD consists of 6 stages: project definition, preparatory work, preliminary cost assessment, negotiations and presentation of the project to the Bank’s management, practical implementation and monitoring of it, evaluation of results.

Inspection Team, composed of individuals selected on the basis of their knowledge and experience in the field of development, may, upon request, consider complaints about cases of non-compliance by the Bank with its procedures and policies.

Institute of Economic Development, founded in 1995, organizes and conducts training courses and seminars for employees from developing countries. It provides assistance to management training and research institutes and prepares, publishes and distributes educational materials.

The Bank has a large research program to support its operational activities and respond appropriately to the pressing challenges facing its members. The goals of such research are: to provide information on economic and technical topics, as well as on the development and implementation of programs related to its credit, analytical, educational and preparatory activities and the provision of technical assistance; increasing knowledge in the field of development; promoting policy dialogue with member countries and increasing their research capacity.

Since 1995, the IBRD has been a member of an advisory body created by Canada, France, Holland, the USA, ADB (Asian Development Bank), IFAD (International Fund for Agricultural Development) and the UN Capital Development Fund to coordinate the activities of creditor countries on systematic financing of programs and for providing these countries and borrower countries with the necessary tools.

Institutional Development Fund is a rapid response tool for financing small, action-oriented plans identified through the Bank's industry-wide work and policy dialogue in low- and middle-income countries.

The Global Environment Facility is a financing mechanism that provides funds to developing countries for projects and activities to protect the environment by promoting environment-friendly development. At the same time, the Bank performs the tasks of the trustee and secretariat of the Fund, as well as the customer of the projects.

World Bank - 1 of the sponsors Advisory Group on International Agricultural Research(CGIAR), created to use modern science for the development of sustainable Agriculture in poor countries. The Bank and about 40 donors jointly support 18 international agricultural research centers that work closely with national research institutions to develop more resource-efficient food production technologies while protecting and improving the natural resources that underpin food production.

IBRD cooperates at the national and local levels with a number of non-governmental organizations, providing advice, financing and assistance to them in the implementation of various projects.

Regional missions The banks operate in Africa, Asia, Europe and Latin America.

Information

In 1994, the Bank opened information centers in Washington, London, Paris and Tokyo offering information on projects in member countries approved by the Executive Director after January 3, 1994. Project documentation, assessment results, national environmental protection programs, reports on individual countries and sectors of the economy (information about the national economy of countries, their specific features, living standards, government spending).

In 1992-98 The IBRD provided Russia with loans worth $14.4 billion for the implementation of 41 projects (as of the end of 1998, 5.4 had been disbursed). In 1998, Russia became the largest IBRD borrower in Europe and Central Asia. For 1997-98 fiscal year it received loans worth $1.63 billion (Russia ranks 5th in the world list of recipients).

In 1997, Russia for the first time participated in the session of the World Bank and the IMF (in Hong Kong) as a full member and declared its direct and full interest in discussing global financial problems.

In August 1998, at a meeting of the Board of Directors of the World Bank, a loan project for Russia in the amount of $105 billion was approved. The repayment period is 7 years with a 3-year grace period. The loan was allocated in three tranches: $300 million (immediately), $500 (in December 1998) and $700 (in June 1999).

Having become a member of the IBRD, Russia also joined the MIAG.

The International Development Association was created in 1960 as a branch of the IBRD. As a specialized agency, it belongs to the United Nations system. IDA is in many ways no different from IBRD. Both organizations finance development projects, have the same staff, and the President of the Bank is also the President of the IDA. The main differences between the two organizations are how they acquire funds for lending and the terms on which they provide loans to developing countries. The IBRD obtains most of its funding from global financial markets and provides loans to developing countries at more than low percentage and more long terms repayments than they do commercial banks. Unlike the IBRD, the IDA provides interest-free loans to developing countries. Its sources of financing are contributions from donor countries.

Goals:

promoting economic development;

increasing labor productivity;

improving living standards in developing IDA member countries.

Member states are divided into 2 groups:

group I – economically more the developed countries(more than 25 countries);

group II – less developed countries (more than 130 countries).

Membership is open to all member countries of the IBRD on such terms and conditions as may be established by the IDA.

Structure:

Board of Governors.

Executive Directorate.

The president.

Members Board of Governors, Executive Directorate and President ex-officio, as well as officials and full-time employees of the IBRD, part-time, perform similar duties in the International Development Association. IDA's staff is divided into 4 sectors: operations, finance, policy, planning and research.

Sources of financing

The bulk of IDA's financial resources consists of three sources: transfers from IBRD profits; capital, the subscribers of which are member states; contributions mainly from wealthier IDA members, including a number of middle-income countries (replenishment of funds occurs, as a rule, every 3 years). Thirty-four member countries agreed to provide $18 billion during the Tenth IDA Fundraiser (IDA10), which ran from 1993-96. to strengthen efforts to combat poverty, implement economic reforms, improve governance and achieve economically sustainable development.

Activity

Loans IDAs target the poorest and least creditworthy countries and are allocated based on the size of the country's territory, annual income per capita and the degree of effectiveness of economic policy. Only countries with an annual per capita income of less than $1,305 are eligible for IDA loans. Most IDA loans are available to countries with annual per capita incomes of $800 or less. Loan repayment begins after a 10-year grace period; they are provided for 35 or 40 years and without interest.

Each IDA-financed project is subject to political and economic assessment in order to make the most effective use of financial assistance. Loans are provided in national currency state or its territory.

The Special Assistance Program supports sub-Saharan countries with low incomes and high debts. The Executive Directors publish the rules and conditions for IDA loans.

The IFC was created at the initiative of the United States as a branch of the International Bank for Reconstruction and Development in 1956 through the ratification of the charter of the International Finance Corporation. IFC is a separate legal entity and financial institution that is part of the World Bank Group and belongs to the United Nations system as a specialized agency. Location: Washington. The IFC includes more than 170 states. Russia joined on April 12, 1993.

Target:

Promoting economic growth of member countries by promoting entrepreneurship in the productive sector, i.e. at the micro level, thus complementing the activities of the IBRD.

Structure:

Board of Governors.

Directorate.

President, Executive Vice President.

Banking Advisory Commission.

Business Advisory Committee.

The supreme body of the International Finance Corporation is Board of Governors. Each Governor and Deputy Governor of the IBRD, appointed by a member of the Bank that is also a member of the International Finance Corporation, is ex-officio a Governor and Deputy Governor of its Board of Governors. With the exception of certain powers that, according to the IFC charter, are reserved only for members of the Board (such as admitting new members, determining the conditions for admission, increasing or decreasing the authorized capital, suspending membership, amending the charter), the managers have delegated their powers to the Directorate. The annual meeting of the IFC is held simultaneously with the annual meeting of the IBRD.

Directorate, consisting of 24 directors, who are all executive directors of the Bank (and their deputies), appointed/elected by a member or group of members of the Corporation, is responsible for conducting the current activities of the IFC.

President of the Corporation is the President of the World Bank. responsible for general management and current operations. He relies on a management team of seven vice presidents for planning and decision-making. Three vice presidents of operations oversee regional and industry departments. In addition, each vice president oversees a separate area of ​​activity. All work is carried out through 5 regional ones (sub-Saharan Africa; Asia; Central Asia, Middle East and North Africa; Europe; Latin America and Caribbean) and four sectoral (agribusiness; chemicals, petrochemicals and fertilizers; infrastructure; oil, gas and mining) departments. The Capital Markets and Corporate Financial Services Department provides fee-based advisory services to state-owned enterprises and governments on privatization issues and to private companies on financial restructuring issues.

Banking Advisory Commission, consisting of 10 senior executives from leading international financial institutions, holds regular meetings with the IFC management team to exchange views on the policies and activities of the Corporation.

Business Advisory Committee consists of renowned industrialists, bankers and government officials from all parts of the world who share their knowledge, experience and views on business issues with IFC management.

Sources of financing

IFC's resources consist primarily of member contributions, IDB loans, interest on loans, finance charges, dividends and profit sharing, proceeds from the sale of shares, service fees, deposits and securities transactions, and funds drawn from in international capital markets.

Activity

The IFC provides loans with terms ranging from 5 to 15 years to highly profitable private enterprises, but unlike the IBRD, without government guarantees. In this way, IFC facilitates additional financing for projects implemented by the private sector. However, IFC usually limits its participation in each specific project to 25% of its cost. But it helps to find investors.

Three principles define IFC's regional and sectoral objectives:

catalyst principle: attracting private investors to participate in the project;

the cost-benefit principle to justify collaboration with the private sector;

the principle of IFC participation as a measure complementing the natural market process.

IFC promotes private sector development by:

Financing (loans, equity, joint funds);

Mobilization of resources (pooling of loans, insurance, provision of guarantees, investment in private companies);

Risk management (swap transactions related to exchange rates and interest rates, hedging mechanisms);

Technical assistance and consulting (changes in the capital market, direct foreign investment, privatization, corporate restructuring, project preparation and evaluation);

Developing a strategy for cooperation with the IBRD on private sector assessment issues (for tax purposes for individual countries, development of national strategies, financial sector reform).

The International Finance Corporation is the World Bank Group's investment bank for developing countries. IFC is the world's largest source of direct financing for private investment projects in developing countries. It provides loans directly to private companies and invests in them own funds, without government guarantees, and also attracts other sources of funding for private sector projects, such as:

1) promotion of entrepreneurial activity, including small business;

2) mobilization of financial resources;

3) investments in infrastructure development projects;

4) environmental protection initiatives;

5) consulting services and technical assistance.

IFC offers a variety of financial transactions and services to companies in developing member countries:

long-term loans provided in major currencies at fixed or variable rates;

attachments equity, other lending mechanisms (subordination loans, securities with income);

provision of guarantees and auxiliary financing;

risk management (mobilization of capital through swap transactions with currencies and interest rates; provision of hedging tools).

The Corporation advises businesses and governments of developing countries on a variety of issues, including physical and financial restructuring, development of business plans, identification of markets, products, technologies, financial and technical partners, and mobilization of resources for project financing.

Established in 1986, the Foreign Investment Advisory Service (FIAS), overseen by a committee headed by IFC's executive vice president, helps governments meet long-term development needs by maximizing the benefits of foreign investment (capital, technology, management expertise). and knowledge). FIAC provides advice to governments on the laws, policies, rules and procedures needed to create an attractive investment climate.

The African Project Development Advisory Bureau, established in 1986, provides advice to African entrepreneurs seeking to expand or modernize existing businesses or create new ones.

The South Pacific Project Development Advisory Bureau assists entrepreneurs in nine IFC member island countries in developing bankable projects or starting new businesses or expanding and diversifying existing ones.

In recent years, IFC has focused on providing technical assistance to private firms, financed through the Technical Assistance Fund.

IFC representatives work in countries in Africa, Asia, Europe and Latin America.

INFORMATION

IFC established a disclosure policy in 1994 and offers information on the Corporation's operating activities, environmental documents, and other project data, financial information, and IFC discussion papers (economics and research).

Public information about IFC activities can be obtained from the World Bank Public Information Center (PIC) in Washington; You can request information online or at World Bank offices in London, Paris, and Tokyo.

The New Markets Database offers information on new markets. The introduction of IFC investment indices, which reflect the degree of openness of selected new markets to foreign investors, is intended to meet the increasing needs of investors. The database will constantly expand the scope of services offered.

Since 1956, IFC has committed more than $21.2 billion of its own funds to a variety of projects and provided $15 billion in financing to 852 enterprises in 129 developing countries.

Since 1993, IFC has approved financing for 38 Russian projects for $563 million from its own funds and $223 million from the funds of participants in the syndicated funds program. The total cost of these projects was $1.9 billion.

The total volume of loans and investments in all areas of corporate activity is $7 billion.

The Multilateral Investment Guarantee Agency was created in 1988 as a subsidiary of the World Bank, but financially it is independent. As a specialized agency, the Agency is part of the UN system. The MIAG includes more than 130 states, including the Russian Federation. Membership is open to all IBRD members.

Target:

Encouraging investment in production goals in Member States, in particular developing countries, by:

provision of guarantees, including joint reinsurance against non-commercial risks in the form of placing capital in some member countries, which is raised in others;

implementing appropriate support activities to facilitate the flow of investment into and between developing countries.

Functions:

increasing the capacity of other insurers through coinsurance or reinsurance;

insurance of investments in countries that are not subject to such insurance by other insurers due to the policies of the latter;

servicing investors who do not have access to other officially recognized insurers;

providing guarantees to investors of various nationalities who are members of a multinational syndicate, which creates favorable conditions for concluding insurance contracts and settling claims.

Structure:

Board of Governors.

Directorate, Chairman of the Directorate.

Executive Vice President.

The supreme body of the Agency is Board of Governors. He may delegate his powers to the Directorate, with the exception of those specifically assigned to the Council (admission of new members, suspension of membership, increase or reduction of capital). The Council consists of governors and their deputies (1 from each member country). The Chairman of the Council is elected from among the managers.

Directorate consists of 20 directors (each with 1 deputy) and is responsible for the overall operational activities of the Agency. The Chairman of the Directorate is the President of the IBRD.

Executive Vice President The MAIG is appointed by the Directorate on the proposal of the chairman and performs its functions under the general control of the Directorate. He is responsible for organizing work, appointing and dismissing personnel. Officials and other staff members of the IBRD work part-time at the Agency.

Sources of financing

The most important source of financing is fixed capital ($948 million), which provides guarantees in the amount of $745 million. The AIGA Convention stipulates that industrialized countries must contribute 10% of their share in convertible currency. Each country contributes another 10% in the form of non-publicly traded, interest-free debt. The remainder represents reserve capital. Up to 25% of developing countries' contributions may be made in their own currency.

Activity

MIIG complements the activities of existing investment insurers through coinsurance and reinsurance. The Agency provides guarantees to investors selected by it (covering up to 90% of the investment volume) for a period of 15-20 years for investments in member states (developing countries) against non-commercial risks, i.e. provides a kind of insurance against political, economic and other types of risks. MIGA offers four main types of guarantees:

Currency non-convertibility

Protection against losses arising from the inability to convert local currency into foreign currency for transfer outside the country.

Expropriation

Protection against loss caused by host government action to restrict or eliminate ownership or control of the insured investment.

War and civil unrest

Protection against losses caused by hostilities or civil commotion leading to destruction or damage tangible assets enterprise or creating obstacles to its activities.

Breach of contract 1

Protection against losses associated with the fact that the investor cannot obtain a court or arbitration decision and/or its implementation in a claim against the host country that has canceled or violated the investment contract.

AIHA reviews projects during the application process to ensure they are financially, economically and environmentally feasible and that they contribute usefully to the development needs of the host country.

MIGA provides a variety of technical assistance services to assist member countries' efforts to promote foreign direct investment. In 1994, IAIG provided a range of services, ranging from policy advisory services on improving investment regimes to assistance in increasing the inflow of foreign investment and advice on legal issues regarding foreign investment.

In 1994, IAIG began to focus on building investment promotion capacity and began developing electronic tools (a global sector-specific CD-ROM) to speed up the dissemination of information on investment opportunities in developing and transition countries. The withdrawal of policy advisory services to conserve resources to facilitate the expansion of assurance activities resulted in the withdrawal of financial support provided by MIAG to the MIAG's strategic policy advisory function. with the exception of investment promotion and information dissemination, were transferred to FIAC's policy development and advisory unit. services was renamed the Investment Marketing Service.

Investment promotion includes meetings, conferences, training programs and seminars, as well as industry and interstate study tours. The Agency's information policy provides for the use of the latest means of communication in order to establish and maintain contacts with potential investors.

In 1994, AIGA conducted a series of workshops to assist member countries in “building marketing capacity to improve services to and strengthen relations with investors and to carry out investment promotion missions.

INFORMATION

MIGA publishes, among other things, the bulletin "MIGA News" (in French since 1994) and publishes an annual report.

IPANET is a global network of information exchange and communications on the Internet.

EBRD

EBRD is the third most influential credit organization. It was created in 1990 as a result of the signing of the Agreement establishing the European Bank for Reconstruction and Development (began operations in April 1991). Location: London.

Goals:

supporting the transition of Central and Eastern European countries to an open market-oriented economy;

promoting the development of private entrepreneurship in countries committed to the principles of multi-party democracy, pluralism and a market economy.

Functions:

support to member countries receiving assistance in carrying out structural and sectoral economic reforms, including demonopolization and privatization in order to fully integrate their economies into the world economy by promoting:

• organization, modernization and expansion of production, competitive and private enterprise activities, especially small and medium-sized enterprises;

  mobilization of national and foreign capital and effective management;

  investments in production in order to create a competitive environment and increase productivity, quality of life and improve working conditions;

  providing technical assistance in the preparation, financing and implementation of projects;

  stimulating and encouraging the development of capital markets;

  implementation of solid and economically feasible projects involving more than one recipient country;

  environmentally sustainable development.

The EBRD includes about 60 countries and institutions (European Union, European Investment Bank).

Members of the Bank can become:

European countries.

Non-European countries that are members of the IMF.

European Community (European Union).

European Investment Bank.

Structure:

Board of Governors.

Directorate, committees.

President, vice presidents.

Environmental Advisory Council.

Board of Governors, in which each member of the EBRD is represented by one manager and one deputy (118 members in total), is the supreme body determining the main directions of the Bank's activities. Each member of the Bank is represented on the Board of Governors and the Board of Directors. Meetings are held once a year, additional meetings may be called by the Board of Governors or Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, with the exception of the admission and determination of conditions for the admission of new members, changes in the size of the authorized capital, suspension of membership, election of directors and president, determination of salaries of directors and deputy directors, approval overall balance, amendments to the Agreement and termination of the Bank's operations. At the same time, the Board of Governors retains full power in relation to all tasks entrusted to the Directorate. The number of votes each member has is equal to the number of his subscribed shares in the share capital of the Bank.

The president(four-year mandate, possible re-election) manages day-to-day affairs according to the instructions of the Directorate. He presides over meetings of the Directorate and may participate in meetings of the Board of Governors. He is an authorized representative of the Bank. Leading the Bank's staff, the President, in accordance with the rules established by the Directorate, is responsible for organizing the work of the EBRD, as well as for the hiring and dismissal of staff. Vice Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions. The EBRD structure includes nine departments ( banking operations, financial, project assessments, department of the chief economist, etc.). The Banking Operations Department has three departments: country groups, 1 industry group, 2 operations support groups. Each department consists of teams of experts from the private and public sectors of the Bank's member countries.

Environmental Advisory Council consists of environmental experts from Central and Eastern Europe and OECD countries, as well as policy and strategy advisers related to the Bank's environmental mandate.

Sources of financing

The Bank's capital resources include the authorized capital, borrowed funds and funds received for the repayment of loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial assets and income that are not part of the Bank's special funds resources.

The share capital is 10 billion euros (the euro is the official currency of the bank, all its assets, liabilities and financial statements are denominated in euros) and is divided into 1 million shares with a par value of 10,000 euros. The total nominal amount of paid shares is $4.3 billion, i.e. 30% of originally authorized for release share capital. Russia's quota in the EBRD capital is 40 thousand shares, which provides it with its own director on the Board of Directors.

In accordance with the founding agreement, a number of funds were created:

1) with the participation of Denmark, Iceland, Norway, Finland and Sweden, the Baltic Special Investment Fund for promoting the private sector by supporting small and medium-sized enterprises in the Baltic countries and the Baltic Special Fund for technical assistance to promote the development of market economies in the Baltic countries;

2) Russian Special Fund for Small Businesses for the Development of the Private Sector;

3) Russian special fund for technical assistance to small businesses.

Activity

The EBRD seeks to assist member countries in implementing structural and sectoral economic reforms, including de-monopolization, decentralization and privatization, taking into account the needs of these countries at various stages of transition to a market economy. Its activities include promoting the development of the private sector, strengthening financial institutions and legal systems, and creating or modernizing the infrastructure necessary for private sector activities. The Bank encourages co-financing 1 and foreign direct investment from the private and public sectors. The EBRD cooperates with international financial institutions and other international organizations.

The EBRD operates on a commercial basis, providing loans on market terms interest rates taking into account risks (financial instruments: loans, investments of own funds and guarantees). The Bank provides direct financing to private sector development projects, structural reforms and privatizations, as well as infrastructure development. Joint ventures are the main focus of the Bank's lending, especially those with foreign sponsors.

Through its technical cooperation programme, the Bank finances research and project-related analyses, advisory services and training.

Priority areas are privatization and structural reforms, financial system, energy (including nuclear reactor safety), telecommunications, transport and environmental infrastructure, agriculture, natural resources and tourism.

In 1993, the G7 formally proposed to the EBRD to establish a Nuclear Safety Account to attract contributions from donor countries to subsidize nuclear safety projects in the region. The Bank prepares projects and submits them to the Assembly of Depositors for consideration. It acts as the secretariat of the Nuclear Safety Account. Priority is given to reactors that pose a high degree of risk, which must be reduced through rapid and cost-effective improvements to ensure safety. The EBRD is a universal institution and combines various directions: it provides loans to the governments of 25 countries and at the same time pays attention to supporting the private sector in these countries.

The Bank opened representative offices in the countries of Eastern and Central Europe (Albania, Belarus, Bulgaria, Hungary, Kazakhstan, Latvia (for the Baltic states), Poland, Romania, the Russian Federation (Moscow with regional offices in St. Petersburg and Vladivostok), Slovakia, Ukraine, Uzbekistan and Czech Republic).

INFORMATION

The Bank publishes general information on the EBRD's activities, periodicals, sectoral policy materials, documents on environmental issues and privatization, as well as studies and working papers.

The World Bank- international financial institution, created to organize financial and technical assistance to developing countries.

The World Bank was founded in 1944. The headquarters is located in Washington ( Federal District Colombia). 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 unified structure, 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 organization development 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. Five executive directors represent the states with the largest stakes: the USA, Japan, Germany, France, the United Kingdom. The remaining 20 executive directors represent country groups.

The World Bank

The World Bank– a structure consisting of several independent financial organizations. The main declared objectives are to create conditions for sustainable economic growth in the world, fight poverty through investment and assistance from leading countries to developing countries, and improve living standards.

The creation date of the World Bank is considered to be December 27, 1945, when most countries ratified the Bretton Woods Agreement of 1944. The first was provided in 1947 to France for reconstruction after World War II - in the amount of 250 million US dollars.

World Bank loans generally must be guaranteed by participating governments. They are provided for the implementation of specific justified projects. Investments in structural transformations are considered priority: liberalization of markets, privatization, social reforms (education, healthcare).

States are interested in receiving World Bank loans because, firstly, the interest on them is lower than on other loans, and secondly, the bank's investment in the country, as a rule, opens the way for private investment.

The World Bank consists of five organizations:

• reconstruction and development, specializing in financing long-term projects under state guarantees;
• , which helps the poorest countries by providing long-term loans;
• responsible for attracting investment in the private sector of the economy of developing countries;
• , providing investors with protection from government actions and local wars;
• , providing arbitration services in the field of investment.

Russia is considered full participant World Bank since 1992. At the same time, it is a member of four out of five organizations, and does not participate only in the activities of the International Center for the Settlement of Investment Disputes.

The largest shareholders of the World Bank are the USA, Japan, Germany, Great Britain and France. Every three years, a strategy for interaction with participating countries is developed in the form of a separate framework document that links the provision of loans with economic recommendations. Current leadership is provided by the President of the World Bank.

World Bank Headquarters in Washington DC

See what “World Bank” is in other dictionaries:

The World Bank- English World Bank fr. Banque mondiale Spanish Banco Mundial Weltbank ... Wikipedia

The World Bank- World Bank Banque mondiale Banco Mundial Weltbank logo of the World Bank Membership ... Wikipedia

The World Bank- A group of three international financial institutions, uniting more than 180 member countries. The group includes the International Bank for Reconstruction and Development (IBRD, World Bank), the International Development Association (IDA), the International Finance... ... Financial Dictionary

THE WORLD BANK- (World Bank) See: International Bank for Reconstruction and Development. Economy. Dictionary. M.: INFRA M, Ves Mir Publishing House. J. Black. General editor: Doctor of Economics Osadchaya I.M.. 2000.… … Economic dictionary

THE WORLD BANK- (World Bank) international economic organization and a UN specialized agency. The Washington-based institutions of the World Bank include the International Bank for Reconstruction and Development (IBRD, established in 1945) and its branches: ... ... Political science. Dictionary.

The World Bank- See World Bank Dictionary of Business Terms. Akademik.ru. 2001 ... Dictionary of business terms

The World Bank- (International Bank for Reconstruction and Development, IBRD) (World Bank), int. a credit organization with the status of a specialized agency of the UN. The idea of ​​creating V.b. was proposed at the Bretton Woods Conference in 1944, the opening took place in... ... The World History

The World Bank- The largest international financial organization, formed in 1944-45, together with the IMF - the World Monetary Fund, by agreement of the participants in the Bretton Woods Conference (its exact name is Monetary financial conference Organizations... ... Technical Translator's Guide

THE WORLD BANK- one of 14 UN specialized agencies, includes: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (MAP) ... Legal dictionary

THE WORLD BANK- one of 14 specialized UN agencies, a group of three international financial institutions, including the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), the International Development Association... ... Legal encyclopedia

Books

• Where are the IMF, World Bank and WTO leading Russia? Book 2. Russia in the neoliberal loop, A. A. Zhdanovskaya. Reduction social spending, privatization of healthcare and education, increasing tariffs for housing and communal services, raising the retirement age, abolition of progressive taxation, low salaries...