HISTORY OF THE WORLD BANK

The global economy has changed dramatically during the last 70 years. Over that period, the
World Bank Group, the world's largest development institution, has worked to assist more than
100 developing and transitioning countries adjust to these changes by providing
loans, knowledge, and guidance.

In July 1944, one year before World War II ended, representatives from 44 countries gathered at
the Mount Washington Hotel in Bretton Woods, New Hampshire, for the United Nations
Monetary and Financial Conference. The goal of the meeting was to lay the groundwork for
international economic cooperation and reconstruction after the war. John Maynard Keynes
(Adviser to the Treasury in the United Kingdom) and Harry Dexter White were the conference's
intellectual leaders (Assistant Secretary of the Treasury in the United States).

While the conference resulted in the formation of two institutions: the International Monetary
Fund (IMF) and the International Bank for Reconstruction and Development (World Bank), the
creation of the World Bank was not the primary focus. Under Harry Dexter White's leadership,
the IMF Commission received the majority of time and effort. The work of the World Bank
Commission on the other hand, occurred only in the last few days of the conference and its
articles of agreement, which were mostly authored by John Maynard Keynes, covered
reconstructing the economies of war-torn nations and promoting the economic growth of
emerging countries.

The International Bank for Reconstruction and Development (later known as the World Bank)
was founded in 1944 and has since grown to include a group of five development institutions.
Initially, its loans aided in the reconstruction of countries that had been destroyed by World War
II. With time, the focus changed from rehabilitation to development, with infrastructure such as
dams, electricity grids, irrigation systems, and highways. 

The diversity of the Bank Group's multidisciplinary workforce, which includes economists,
public policy specialists, sector experts, and social scientists stationed at headquarters in
Washington, D.C. and in the field, reflects the organization's evolution. More than a third of the
workforce is now based in country offices.

KEY STRUCTURE

Within the World Bank, new institutions have been established that specialize in certain
operations. The World Bank Group is the collective name for all of these entities. It consists of
the following components:

The International Bank for Reconstruction and Development (IBRD) - provides loans to
governments of middle- and low-income countries that are creditworthy.

The International Development Association (IDA) - offers governments of the world's poorest
countries with interest-free loans (known as credits) and grants.
The International Finance Corporation (IFC) - is the world's biggest private-sector-focused
development institution. They assist developing nations in achieving long-term growth by
funding investment, mobilizing funds on international financial markets, and offering corporate
and government consulting services.

The Multilateral Investment Guarantee Agency (MIGA) - was established in 1988 to

encourage foreign direct investment into developing nations in order to assist economic growth,
poverty reduction, and human development. MIGA carries out its mission by providing investors
and lenders with political risk insurance (guarantees).

The International Centre for Settlement of Investment Disputes (ICSID) - is a non-profit

organization that provides international mediation and arbitration services for investment
disputes.

KEY OBLIGATION

The World Bank Group is active in every major development sector. They provide a wide range
of financial goods and technical support, as well as assisting nations in sharing and applying new
ideas and solutions to their challenges.

ENFORCEMENT

The World Bank employs a two-tier Administrative Sanctions Process in order to successfully
address corruption. Promoting good governance and combating corruption are essential for
attaining long-term development and reducing poverty. The capacity of governments, donors,
and the World Bank to fulfill their aims of poverty reduction, attracting investment, and
supporting good governance is harmed when monies from development initiatives are diverted
through corruption.