Chapter 3: The World Bank Flashcards
an international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement.
The World Bank
World Bank has two stated goals that it aims to achieve by 2030.
- The first is to ________ by decreasing the number of people living on less than $1.90 a day to below 3% of the world population.
- The second is to ________ by increasing income growth in the bottom 40% of every country in the world.
- end extreme poverty
- increase overall prosperity
The World Bank is a provider of financial and technical assistance to individual countries around the globe. The bank considers itself a unique financial institution that sets up partnerships to reduce poverty and support economic development.
Role of World Bank
The World Bank supplies qualifying governments with__________, __________ , and __________, all for the purpose of supporting the development of individual economies.
low-interest loans, zero-interest credits, and grants
___________ and ____________ help with global education, healthcare, public administration, infrastructure, and private-sector development.
Debt borrowings and cash infusions
The World Bank and International Monetary Fund were founded simultaneously under the ________________ with generally the same focus to help serve international governments globally.
Bretton Woods Agreement
The World Bank has expanded to become known as the World Bank Group with five cooperative organizations, sometimes known as the __________.
World Banks
The World Bank Group offers a multitude of proprietary ____________ and _____________ as well as a range of research-based thought leadership for the global economy at large.
financial assistance products and solutions for international governments
The World Bank was created in ______ out of the Bretton Woods Agreement, which was secured under the auspices of the United Nations in the latter days of World War II.
1944
The Bretton Woods Agreement included several components:
•a collective international monetary system
•the formation of the World Bank, and
•the creation of the International Monetary Fund (IMF).
The original goals of both the World Bank and IMF were to support ________ and _____ countries needing financing to fund postelive international monetary system which was central to the Bretton Woods Agreement. _____________ the Bretton Woods international monetary system in the Reconstruction efforts. Both the World Bank and IMF outlasted the collective ______. However, the World Bank and IMF remained open and continued to thrive on providing worldwide aid.
European
Asian
President Nixon halted
1970s
Though titled as a bank, the World Bank, is not necessarily a bank in the traditional, _____ meanings of the word. The World Bank and its __________ operate within their own provisions and develop their own proprietary financial assistance products, all with the same goal of serving _____________________.
- chartered
- subsidiary groups
- countries’ capital needs internationally
the International Bank for Reconstruction and Development (IBRD), an institution that provides debt financing to governments that are considered middle income.
The first organization
the World Bank Group is the International Development Association (IDA), a group that gives interest-free loans to the governments of poor countries.
The second organization
The International Finance Corporation (IFC), focuses on the private sector and provides developing countries with investment financing and financial advisory services.
the third organization
