World Bank
Definition
The World Bank is an international financial institution that provides loans and grants to low- and middle-income countries for capital programs with the goal of reducing poverty.
Analogy
Imagine if your neighborhood had a community fund where everyone contributes money. Then this fund lends money or gives grants to those neighbors who need it most for home improvements or other projects. That's what World Bank does on a global scale!
Related terms
International Monetary Fund (IMF): Like your neighbor who advises you on how best to manage your finances, IMF monitors global economic trends & offers advice & assistance mainly through policy advice & lending when needed.
Development Economics: This field studies how economies can grow - just like researching which plants will grow best in your garden before planting them!
Poverty Reduction Strategy Papers (PRSPs): These are plans developed by governments in low-income countries, like a neighbor's plan to improve their house, which are then approved by World Bank and IMF.
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