The World Bank

Question 1

Aim?

Answer 1

address socio-economic disparities between North and South

Question 2

How does the World Bank Group generally achieve this

Answer 2

giving different types of credits

Question 3

5 sub groups of the WB Group?

Answer 3

1. IBRD
2. IDA
3. IFC
4. MIGA
5. ICSID

Question 4

How many members?

Answer 4

189

Question 5

What does IBRD (WB) do?

Answer 5

• credit to finance non-private sector
• agriculture, infrastructure, healthcare, education…
• conditions for credit: good governance, economic reforms…

Question 6

What does the IDA do?

Answer 6

• credit to lowest income countries
• for development
• more favourable conditions: long term and no interest

Question 7

What does the IFC do?

Answer 7

• private sector funding (e.g. companies)

- economic development

Question 8

What does MIGA do?

Answer 8

• private sector funding for foreign investment

- insurance against risks (e.g. war)

Question 9

What does the ICSID do?

Answer 9

dispute settlement for investments
between member states & private investors
legally binding decisions

Question 10

Compliance IBRD

Answer 10

Mostly higher compliance due to client and IBRD negotiations

Question 11

IBRD Enforcement

Answer 11

• If no compliance (repaying of loan), WB can influence client’s reputation -> not able to make future loans
• no other enforcement though
• some projects are inefficient to cancel halfway

Question 12

Corruption problem

Answer 12

• money given often stolen
• corruption = failed projects
• world bank ignores it
• question of who should pay back? The gov. or the population or WB?