About WBG
World Bank Group (WBG) is an international financial institution which offers loans and grants to low and middle-income countries for the purpose of building capital projects.
The World Bank Group has two goals:
- to end extreme poverty and
- to promote shared prosperity in a sustainable manner
The World Bank Group five development institutions:
- International Bank for Reconstruction and Development (IBRD)
- It is formed in 1944
- It is a global development cooperative with 189 countries as members.
- Objective: providing loans, grants & credit
- India is a founding member
- International Development Association (IDA)
- It is formed in 1960
- Objective: provide loans and grants to low-income (poor) countries at low or no interest
- India is a founding member
- International Finance Corporation (IFC)
- It is formed in 1956
- Objective: provides investment, advisory, and asset management services to foster private sector investment in Least Developed Countries.
- It works for economic development by investing in commercial projects for poverty reduction and augmenting development efforts.
- It works for boosting entrepreneurship and create sustainable businesses.
- India is a member.
- Multilateral Guarantee Agency (MIGA)
- formed in 1988
- Objective: To promote cross-border investment in developing countries by assuring guarantees -political risk insurance and credit enhancement- to lenders and investors
- India became a member in 1994
- International Centre for the Settlement of Investment Disputes (ICSID)
- formed in 1966
- Objective: It settles disputes between governments and investors. It disseminates information about international law on foreign investment.
- India is not a member. India claims that the ICSID’s organisation is biased towards the developed countries.
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