05 Things You Never Knew About the World Bank

1.The World Bank has a long relationship with India. In June 1944, India was one of the 44 countries which signed the final agreement that established the World Bank. In fact, the name “International Bank for Reconstruction and Development” (IBRD) was suggested by India and later India suggested the establishment of the International Development Association (IDA) – the World Bank’s soft-loan (interest-free loan) affiliate.

2.Both the IMF and the World Bank came into existence in July 1944. Today, the two organizations pursue their complementary missions, working with a nearly universal membership. The IMF focuses on the stability of the international financial system, while the World Bank concentrates on long-term economic development and poverty reduction.

3.The World Bank is run like a cooperative. Its 187 member countries are its shareholders. Recently, India became the 7th largest shareholder in the World Bank.

4.The World Bank Group consists of five Agencies, each with its specific role: International Bank for Reconstruction and Development (IBRD) – 1945 International Development Association (IDA) — 1960 International Finance Corporation (IFC) –1956 Multilateral Investment Guarantee Agency (MIGA) — 1988 International Centre for Settlement of Investment Disputes (ICSID) — 1966.

5.India’s Finance Minister is a member of the World Bank’s Board of Governors. The Board lays down the Bank’s basic policy guidelines and has the ultimate responsibility for decision-making within the Bank. India’s continuous presence at the Board, right from the time of the World Bank’s creation, has enabled her to play a significant role in the formulation, implementation and monitoring of the Bank’s policies and operation, particularly from the standpoint of the developing countries. India also appoints its own Executive Director (ED). The Indian ED is based at the World Bank’s headquarters in Washington DC. India’s ED also represents Bangladesh, Sri Lanka, and Bhutan.

Post Author: DKS

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