World Bank

Definition

The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects. It aims to reduce poverty by providing funding for development programs that can boost economic growth.

5 Must Know Facts For Your Next Test

1. Founded in 1944, the World Bank consists of two main institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
2. The World Bank's primary goal is to reduce poverty through sustainable development.
3. It provides both financial products (like loans) and knowledge services (such as policy advice).
4. The World Bank often collaborates with other international organizations, such as the International Monetary Fund (IMF).
5. It plays a significant role in shaping global economic policies and addressing issues like education, health, infrastructure, and climate change.

Review Questions

• What are the two main institutions that make up the World Bank?
• How does the World Bank aim to reduce poverty?
• What types of services does the World Bank provide besides financial products?

Related terms

International Monetary Fund (IMF): An international organization that aims to promote global economic stability by providing monetary cooperation and financial stability.

International Development Association (IDA): Part of the World Bank that helps the world’s poorest countries by providing concessional loans and grants.

International Finance Corporation (IFC): A member of the World Bank Group that focuses on private sector development in developing countries.