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 and reducing poverty.
Analogy
Think of the World Bank as a big, global credit union. Just like how credit unions provide loans for things like houses or cars, the World Bank provides loans for larger scale projects - but instead of individuals, its clients are entire countries!
Related terms
International Development Association (IDA): An arm of the World Bank that helps the world’s poorest countries by providing interest-free credits and grants for programs aimed at boosting economic growth and improving living conditions.
Poverty Reduction Strategy Papers (PRSPs): These are documents required by the IMF and World Bank before a country can be considered for debt relief within certain aid programs; they're essentially plans outlining how a country will reduce poverty levels.
Structural Adjustment Programs (SAPs): These are economic policies imposed on developing countries by IMF and World Bank as condition for receiving loans; think about them as strict budgeting rules set by these institutions.
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