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World Bank is an international financial organization that provides loans and aid to low and middle-income countries’ governments for their economic advancement. The World Bank was established in the year 1944 and its headquarters is in Washington DC (USA). Ajay Banga is the 14th President of the World Bank.
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What is World Bank and Its History
The World Bank is an international financial institution owned and operated by 189 member Countries. It works to reduce poverty by offering financial aid to the poorer members for the improvement of quality of Life.
In simple words, the World Bank is just like a cooperative. The shareholders of this cooperative are the members of this organization. World Bank comprises two institutions that are the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a special agency under the United Nations.
Also Read: World Health Organization: History, Significance and More
The amount of their share in this institution depends on the economy of their shareholder. We have mentioned the data below.
| Countries | Shares |
| USA | 16.41% |
| Japan | 7.87% |
| United Kingdom | 4.31% |
| France | 4.31% |
| Germany | 4.49% |
Facts
Below, We have mentioned some quick facts about that will help you to answer objective questions asked in the competitive exams.
- World Bank was created in the year 1944.
- The headquarters of the World Bank is in Washington, DC (USA).
- There are 189 members of the WB including India.
- Earlier, it was famous as the International Bank for Reconstruction and Development (IBRD).
- The current president of the World Bank is Ajay Banga.
- Ajay Banga became the 14th president on 2 June 2023.
Structure
The World Bank forms 5 agencies under itself to achieve different objectives. All these organizations together are called the World Bank Group. These agencies are
- IBRD
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
Also Read: List of International Organizations
World Bank vs International Monetary Fund
The World Bank and International Monetary Fund are two top financial institutions in the world that work for the development of economies of different countries. WB offers financial aid to poor countries so that they can spend on projects for the betterment of their people while the duty of the IMF is to monitor world currencies.
Importance for UPSC
The World Bank is an institution that stays in the news frequently. Also, this is related to the Indian Economy section of UPSC or other government exams. Having a deeper understanding about this organization will help you to get good marks in the exam.
FAQs
World bank is a multilateral financial institution that offers loans to poorer countries for their economic advancement. It was established in the year 1944. its headquarters is in Washington DC (USA).
There are 189 members of the World Bank. India became a member on 27 December 1945.
The current president of the World Bank is Ajay Banga. He became the 14th president of the World Bank on 2 June 2023.
Hope you have gotten all the relevant information about the World Bank! If you want to know more about topics like this, then visit our general knowledge page! Alternatively, you can also read our blog on general knowledge for competitive exams!