World Bank

Question 1

Bretton Woods conference

Answer 1

• 44 participating states
• Goals: reconstruct war-turn Europe, prevent economic crises
• Establish WB & IMF

Question 2

Group of 5 institutions

Answer 2

• World Bank
• Int. Develop. Association (IDA)
• Int. Finance Corporation
• Multinational investment Guarantee Agency
• International Center for settlement of Investment Disputes

Question 3

WB: Origins

Answer 3

The Bretton Woods conference

Established in 1944 - as the Int. Bank for reconstruction and development (IBRD

• Headquarters: Washington

Question 4

WB: Number of members

Answer 4

189 member states, group of 5 institutions

Question 5

WB: Objectives:

Answer 5

Poverty reduction & boost shared prosperity economic development (lends money to countries to help them grow projects to develop)

Question 6

WB: Goals throughout the Years

Answer 6

Origins (IBRD): rebuilding Europe and Asia, main clients: European states
* After 1960s: focus on developing countries (International Development Association)

• After 1990: facilitate economic transition in Eastern Europe; post-conflict reconstruction (former Yugoslavia, Afghanistan, Iraq) Association, IDA).
• As of 2000: contribute to achieving the Millennium Development and the Sustainable Development Goals (2015-).

Question 7

WB: What does it do ?

Answer 7

Credits to finance non-private sector economic activities
(To states that are capable of giving it back based on conditions: good governance, economic reforms.

Question 8

WB: Areas of Investments

Answer 8

Agricultural
Infrastructure
Governance
Education
Health-care
public sector reforms

Question 9

WB: Add. Infos

Answer 9

Other actives:
Research development issues (e.g. Annual World Development Report)
- Economic advice to governments

Question 10

Int. Develop. Association origins

Answer 10

Established in 1962

Question 11

IDA : Number of Members

Answer 11

173 participating states

Question 12

IDA: what does it do

Answer 12

• Gives credit to the about 80 lowest-income countries (below GDP of $1.1 per capita)
  –> More favorable conditions than WB: no interests and long term (30-50 per capita).
  years)
• It focuses on development

Question 13

Int. Finance Corporation (Orgins + Members)

Answer 13

year: 1956
members: 185

Question 14

Int. Finance Corporation: it’s actions

Answer 14

support companies in develop. countries: by providing funds for private sector investments to enhance for economic development

Question 15

Multilateral Investment Guarantee Agency

Answer 15

Year: 1988
Members: 156

Question 16

Multilateral Investment Guarantee Agency: it’s actions

Answer 16

Insurances against non-commercial / political risks for private investors (e.g. civil war or expropriation)

–> promote economic (foreign) investments in developing countries.

Question 17

Int. Centre for Settlement of Investment
Dispute (ICSID)

Answer 17

Year: 1966
Members: 161

Question 18

Int. Centre for Settlement of Investment
Dispute (ICSID): it’s actions

Answer 18

Mediation and arbitration of investment conflicts between member states and private investors from other countries.

Cases can only be discussed on a voluntary basis. So both parties must agree to refer a case to the ICSID.

–> Decisions: legally binding.