The World Bank
Definition
The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects. It comprises two institutions - International Bank for Reconstruction and Development (IBRD), and International Development Association (IDA).
Analogy
The World Bank is like a generous aunt who lends you money to start a business or go to college. She doesn't just give you the money, though; she also wants to see a plan on how you'll use it and expects you to pay it back eventually.
Related terms
International Monetary Fund (IMF): An international organization that aims to promote global economic growth and financial stability, encourage international trade, and reduce poverty.
Development Economics: A branch of economics which deals with economic aspects of the development process in low-income countries.
Foreign Aid: Money, food, or other resources given or lent by one country to another.
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