The World Bank Group

The World Bank Group consists of five closely associated institutions, all owned by member countries that carry ultimate decision-making power.  As explained below, each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.  The term "World Bank Group" encompasses all five institutions.  The term "World Bank" refers specifically to two of the five, IBRD and IDA.

	The International Bank for Reconstruction and Development Established 1945 184 Members Cumulative lending: $360 billion Fiscal 2002 lending: $11.5 billion for 96 new operations in 40 countries IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development, through loans, guarantees, and nonlending—including analytical and advisory—services. IBRD does not maximize profit but has earned a net income each year since 1948. Its profits fund several developmental activities and ensure financial strength, which enables low-cost borrowings in capital markets, and good terms for borrowing clients. Owned by member countries, IBRD links voting power to members’ capital subscriptions—in turn based on a country’s relative economic strength.
	The International Development Association Established 1960 162 Members Cumulative, lending: $135 billion Fiscal 2002 lending: $8.18 billion for 133 new operations in 62 countries Contributions to IDA enable the World Bank to provide $6–7 billion per year in interest-free credits to the world’s 78 poorest countries, home to 2.4 billion people. This support is vital because these countries have little or no capacity to borrow on market terms. In most of these countries incomes average under just $500 a year per person, and many people survive on much less. IDA helps provide access to better basic services (such as education, health care, and clean water and sanitation) and supports reforms and investments aimed at productivity growth and employment creation.
	The International Finance Corporation Established 1956 175 Members Committed, portfolio: $21.6 billion (includes $6.5 billion in syndicated loans) Fiscal 2002 commitments: $3. billion (includes syndications, $2.7 billion for own account) in 204 companies for 75 countries IFC’s mandate is to further economic development through the private sector. Working with business partners, it invests in sustainable private enterprises in developing countries and provides long-term loans, guarantees, and risk management and advisory services to its clients. IFC invests in projects in regions and sectors underserved by private investment and finds new ways to develop promising opportunities in markets deemed too risky by commercial investors in the absence of IFC participation.
	The Multilateral Investment Guarantee Agency Established 1988 157 Members Cumulative guarantees issued: $10.34 billion Fiscal 2002 guarantees issued: $1.36 billion (Includes $136 million leveraged through the Cooperative Underwriting Program.) MIGA helps encourage foreign investment in developing countries by providing guarantees to foreign investors against losses caused by noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, and war and civil disturbances. Furthermore, MIGA provides technical assistance to help countries disseminate information on investment opportunities. The agency also offers investment dispute mediation on request.
	ICSID The International Centre for Settlement of Investment Disputes Established 1966 134 Members Total cases registered: 103 Fiscal 2002 cases registered: 16 ICSID helps to encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, in this way helping to foster an atmosphere of mutual confidence between states and foreign investors. Many international agreements concerning investment refer to ICSID’s arbitration facilities. ICSID also has research and publishing activities in the areas of arbitration law and foreign investment law.