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5.3.1 A glance at <strong>the</strong> World Bank<br />

187<br />

5.3 The World Bank<br />

The World Bank Group (WBG) is a family <strong>of</strong> five multilateral <strong>in</strong>stitutions, which are engaged <strong>in</strong><br />

lend<strong>in</strong>g to less developed <strong>countries</strong>. The WBG is an <strong>in</strong>dependent specialized agency <strong>of</strong> <strong>the</strong> UNO.<br />

It has work<strong>in</strong>g relations with all o<strong>the</strong>r sixteen specialized UN agencies. The World Bank is<br />

work<strong>in</strong>g <strong>in</strong> partnership with 185 member <strong>countries</strong> that <strong>in</strong>clude both develop<strong>in</strong>g <strong>and</strong> developed<br />

economies <strong>in</strong> all parts <strong>of</strong> <strong>the</strong> word. These members are considered as <strong>the</strong> Bank clients or<br />

costumers. The members can be classified <strong>in</strong>to three groups: borrowers, lenders, <strong>and</strong> donors. The<br />

WBG has a wide range <strong>of</strong> partners <strong>in</strong>clud<strong>in</strong>g government agencies, civil society organizations,<br />

aid agencies, <strong>and</strong> <strong>the</strong> private sector. WBG‟s headquarters is <strong>in</strong> Wash<strong>in</strong>gton, DC, <strong>and</strong> it is<br />

managed by <strong>the</strong> representatives <strong>of</strong> <strong>the</strong> member <strong>countries</strong>. The Bank came <strong>in</strong>to formal existence<br />

on 27 December 1945 after <strong>the</strong> ratification <strong>of</strong> <strong>the</strong> Bretton Woods agreements that were reached<br />

at <strong>the</strong> United Nations Monetary <strong>and</strong> F<strong>in</strong>ancial Conference <strong>of</strong> July 1 to July 22, 1944. This<br />

conference this conference was attended by <strong>the</strong> representatives <strong>of</strong> 45 governments <strong>and</strong> it was<br />

held <strong>in</strong> <strong>the</strong> Mount Wash<strong>in</strong>gton Hotel at Bretton Woods, a remote village, <strong>in</strong> New Hampshire,<br />

USA. International Monetary Fund (IMF) also was also conceived <strong>in</strong> <strong>the</strong> same conference.<br />

The World Bank Group consists <strong>of</strong> <strong>the</strong> follow<strong>in</strong>g five <strong>in</strong>stitutions:<br />

1) The International Bank for Reconstruction <strong>and</strong> Development (IBRD)<br />

2) The International Development Association (IDA)<br />

3) The International F<strong>in</strong>ance Corporation (IFC)<br />

4) The Multilateral Investment Guarantee Agency (MIGA)<br />

5) The International Centre for Settlement <strong>of</strong> Investment Disputes (ICSID)<br />

Even though <strong>the</strong> World Bank Group consists <strong>of</strong> five <strong>in</strong>stitutions, only <strong>the</strong> International Bank for<br />

Reconstruction <strong>and</strong> Development (IBRD) <strong>and</strong> <strong>the</strong> International Development Association (IDA)<br />

constitute <strong>the</strong> World Bank. The terms “World Bank” <strong>and</strong> “Bank” refer only to IBRD <strong>and</strong> IDA,<br />

whereas <strong>the</strong> terms “World Bank Group” (WBG) <strong>and</strong> “Bank Group” <strong>in</strong>clude all five <strong>in</strong>stitutions.

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