International Bank for Reconstruction and Development, better known as The World Bank, is one of the world's largest sources of development assistance. Its main goal is to help the poorest groups of the population and poorest countries. The World Bank helps developing countries fight poverty and achieve stable, sustainable and equitable economic growth.

The World Bank was founded in 1945 with the primary mission of helping Western Europe recover from World War II. Following the recovery and restructuring of Europe, the World Bank's focus shifted to providing support to developing countries. In 1950 it turned out that the poor developing countries cannot afford to borrow the funds necessary to develop their economy on the terms of the World Bank and need to ease lending conditions. Thus, in 1960, the International Development Association (IDA) was created within the World Bank, which provides interest-free loans. IDA funds come from contributions from rich countries, as well as repayments of previously issued loans.

Currently, the World Bank includes 184 countries. The headquarters is located in Washington, USA.

Over the years of presence in the global economy and social sphere The World Bank's priorities have undergone significant changes. In 1980, 21% of the Bank's loans were invested in the electricity sector. Today this figure is only about 7%. At the same time, the amount of resources directly allocated to support the development of health care, education, pension provision and other social services, has increased from 5% in 1980 to 22% currently. The World Bank, whose members are 184 countries, has adopted new approach to the development process by addressing new challenges, including gender development, community-led development, indigenous peoples' issues, and efforts to build critical infrastructure for the poor.

Organizational structure of the World Bank

The World Bank Group is made up of five closely related institutions owned by member countries. Each of these institutions plays a specific role in addressing poverty alleviation and improving the standard of living of the population. The World Bank operates through departments of vice presidents (DVPs) that focus on specific regions or sectors or on poverty alleviation and economic development promotion.

The World Bank is run as a kind of cooperative society whose shareholders are the member countries of the organization. The number of shares in each country is approximately calculated depending on the size of the economy. The largest shareholder is the United States (16.41 percent of shares), followed by Japan (7.78 percent), Germany (4.49 percent), the United Kingdom (4.31 percent) and France (4.31 percent). The remaining shares are distributed among the remaining member states.

The member countries of the World Bank are represented by the Board of Governors. Typically, managers are officials governments, for example, the Minister of Finance or the Minister of Development. The Board of Governors is the supreme body that determines the Bank's policy. The Council meets once a year during the Bank's Annual Meetings. Since these ministers meet only once a year, specific powers are delegated to executive directors based directly at the Bank's headquarters. Each member country of the World Bank Group is represented by an executive director. Five executive directors are appointed by the five largest member states - the United States, Japan, Germany, France and the United Kingdom - and the remaining member states are represented by 19 executive directors.

By tradition, the President of the World Bank is a citizen of the United States, which is the largest shareholder of the Bank. The President is elected for a five-year term and may be re-elected, chairs meetings of the Board of Directors and is responsible for the general management of the Bank's activities. The current President of the World Bank is Mr. Paul Wolfowitz, who assumed office in June 2005.

The Bank employs about 10,000 people, including economists, engineers, specialists in education, as well as in such areas as ecology, the financial analysis, anthropology, and many others. The Bank's employees are citizens of 160 countries, and more than 3,000 people work in the Bank's permanent representative offices in member states.

Areas of activity of the World Bank

1. The World Bank is the largest international source of education funding

Since 1963, when education financing began, the World Bank has provided approximately $31 billion in loans and credits and currently finances 158 education projects in 83 countries. The Bank works closely with governments, UN agencies, donors, non-governmental organizations and other partners to help developing countries achieve the goal of education for all. The goal is that by 2015, all children, especially girls and children from low-income families, will be enrolled in primary school and have access to primary education. A good example The Bank's provision of education loans is India's District Primary Education Programme, which Special attention is given to girls living in areas where the female literacy rate is below the national average. To date, the program, funded by up to $1.3 billion from the Bank, has reached more than 60 million students in 271 low-literacy districts in 18 of India's 29 states. Bank-financed projects in Brazil, El Salvador and Trinidad and Tobago focus on strengthening the role of local population in improving the quality of education, thanks to the fact that the local population has the opportunity to evaluate the effectiveness of local schools and teachers.

2. The World Bank is the largest international source of funding in the fight against HIV/AIDS

Every day, 14,000 people become carriers of the HIV virus; and half of them are people aged 15 to 24 years. HIV/AIDS is rapidly erasing many of the gains that developing countries have made over the past 50 years in social economic development. Working with the United Nations program UNAIDS, which coordinates the global response to the epidemic, the World Bank has committed more than $1.7 billion to combat the spread of HIV/AIDS worldwide. The Bank assured countries that no country that had developed an effective HIV/AIDS strategy would be left without funding and, together with African governments, developed and began implementing regional program to combat HIV/AIDS (MAP), which allocates significant amounts of funds to public organizations and local communities.

Many countries have developed radically new approaches to combating the spread of HIV/AIDS, which are now being adopted by other countries and adapted to local conditions. In 2002, the amount of funds allocated to African countries through MAP to help scale up national programs prevention, treatment and care for patients amounted to $1 billion. In addition, the Bank committed $155 million to the Caribbean to combat HIV/AIDS and continues to support HIV/AIDS programs in other regions.

3. The World Bank is one of the largest international sources of funding for health programs

Providing basic health care and nutrition to the poor is critical to reducing poverty and promoting economic growth. Despite significant progress made by many countries over the past few decades, challenges remain. Of the 11 million children who die each year in developing countries, about 70 percent die from infectious diseases (such as pneumonia, malaria, diarrhea, measles and HIV/AIDS) and malnutrition. The World Bank provides an average of $1 billion in new loans annually to finance health, nutrition, and population projects in developing countries. Bank funds help fight malaria in 46 countries and tuberculosis in 30 countries. In China, the Bank has helped provide iodized salt to more than 90 percent of families, helping to significantly reduce miscarriages and stillbirths, physical deformities and mental retardation—problems resulting from iodine deficiency. Additionally, in Senegal, the Bank is helping mothers prevent and address child malnutrition and promoting comprehensive interventions.

4. The World Bank strongly supports debt relief

In 1996, the World Bank and the International Monetary Fund (IMF) launched the Poor Countries Initiative high level debt (HIPC), which represents the first A complex approach to relieve the debt burden of the world's poorest and most indebted countries. Currently, 26 countries are receiving debt relief, which is projected to reach $40 billion over time. When combined with other debt relief mechanisms, the HIPC Initiative would reduce the external debt of these countries by two-thirds, bringing it down to a level well below the average for all developing countries. As part of this initiative, countries are trying to refocus their budget priorities on critical areas social development and human resource development. For example, Rwanda has set targets for increasing primary school enrollment and teacher recruitment. Honduras plans to provide maternal and child health care and basic medical service at least 100,000 people from poor communities. In Cameroon, resources are being used to improve the effectiveness of the fight against HIV/AIDS, in particular by sensitizing populations affected by high risk, the importance of using condoms.

5. The World Bank is one of the largest international sources of funding for biodiversity conservation programs

Since 1988, the Bank has become one of the largest international sources of financing for biodiversity conservation projects. Although loss of biodiversity represents global problem, rural populations in developing countries are particularly affected because they are the most dependent on the environment for food, shelter, medicine, livelihoods, employment, and cultural identity. That's why the World Bank is partnering with Conservation International, the Global Environment Facility, the MacArthur Foundation, and the Government of Japan to create a fund that will help better protect biodiversity hotspots in developing countries. These most threatened regions, which make up only 1.4 percent of the earth's surface, are home to about 60 percent of all terrestrial species. Addressing environmental issues is an integral part of the Bank's poverty reduction strategy. In addition to conducting assessments of potential environmental impacts and taking precautionary measures, the new strategy focuses on climate change, the conservation of forests, water resources and biodiversity. Currently total amount The World Bank's portfolio of projects with environmental protection objectives amounts to US$14 billion.

6. The World Bank is more engaged than ever with its partners

Over the past six years, the World Bank has been working with a wide range of partners to fight global poverty, such as the World Wildlife Fund to conserve forests and the public and private sectors to create a Prototype Carbon Fund that will help mitigate the impacts of global warming. In addition, the Bank collaborates with the Food and Agriculture Organization of the United Nations (FAO) and the United Nations Development Program (UNDP), sponsoring the well-known Advisory Group on International Research on Agriculture, using the latest science to fight malnutrition and reduce poverty, improve nutrition and health, and protect the environment.

Through the Consultative Group to Assist the Poor (CGAP), the World Bank partners with donors and international financial institutions to strengthen the capacity of microfinance institutions to provide financial services the poorest groups of the population. The partnership created to combat onchocerciasis (“river blindness”) has prevented more than 600,000 cases of the disease, freed up 25 million hectares of land for cultivation, and cured more than 22 million people from the disease each year.

7. The World Bank plays a leading role in the fight against corruption internationally

Corruption is one of the problems that impedes development: it further worsens the situation of the poor by depriving public resources of those groups who need them most. Since 1996, the Bank has implemented 600 anti-corruption programs and governance initiatives in nearly 100 client countries. These initiatives range from having government officials fill out income, asset and origin declarations to improving the skills of judges and training journalists in investigative reporting. Currently, almost one quarter of all new projects include components related to public spending and financial reform. More importantly, the Bank's commitment to ending corruption has galvanized a truly global fight against the problem. The World Bank is trying to fully integrate efficiency measures government controlled and anti-corruption into planning and operations. In addition, the Bank is committed to making efforts to ensure that there is no scope for corruption in the projects it finances. Over the past four years, the Bank has established strict procurement rules and procedures, anti-corruption guidelines and opened an anonymous “ hotline”, through which you can report facts of corruption. As of July 2002, 77 firms and individuals have been declared ineligible by the Bank to enter into contracts under Bank-financed projects.

8. Civil society plays an increasingly important role in the work of the World Bank

More than two-thirds of the development projects approved by the Bank in the last fiscal year were implemented with the active participation of non-governmental organizations (NGOs), and most country assistance strategies were developed by the Bank in consultation with civil society. Currently, Bank employees work in 70 representative offices of this organization around the world, interacting with the population and NGOs in various areas activities - from education and the fight against HIV/AIDS to environmental protection. In South Asia, the Bank is consulting with civil society to develop gender development strategies in countries of Eastern Europe consultations with public organizations are carried out on issues of providing assistance in order to eliminate the consequences of armed conflicts and improve the efficiency of public administration, and in countries Latin America the opportunities created by the reform and the social implications of the reform are discussed. One significant example of civil society engagement in Bank projects is in East Timor, where the Community Empowerment and Local Governance Project is supporting democratically elected local village councils that include young people, women, representatives of religious and farming groups and involved in repairing roads, providing the population with drinking water and restoring economic activity through community-led projects at the local level.

9. The World Bank helps countries emerging from armed conflicts

The Bank currently works in 40 countries affected by armed conflict, supporting international efforts to help affected populations, restore peaceful development, and prevent further outbreaks of violence. At the same time, the Bank is working to address a range of challenges, such as restarting economic activity, investing in war-torn regions, rebuilding war-damaged infrastructure, and targeting programs to target those most vulnerable. vulnerable groups such as widows and children. In addition, the Bank supports efforts to disarmament, demobilize and reintegrate former militia members into civilian life, as well as initiatives to detect and warn the public about their presence. Among the large-scale and qualitatively new projects financed by the Bank, it should be noted the reconstruction of infrastructure and empowerment of the local population in Afghanistan, the re-education of street children in Democratic Republic Congo, local development projects in southern Serbia, training of new civil servants in East Timor, and programs in Haiti that aim to achieve social harmony and are implemented with the participation of the country's citizens.

10. The World Bank is responsive to the needs of the poor

Conversations with 60,000 poor people in 60 countries, as well as our daily work, have taught us that poverty is more than income inequality or low social development. Poverty is when the poor do not have the opportunity to express their opinions, being deprived of the right to vote, or the opportunity to defend their interests, when they are not protected from abuse and corruption. Poverty is the lack of basic freedoms, such as freedom of action, freedom of choice, and lack of opportunity. We believe that a person living in poverty should be treated not as some kind of burden or liability, but as a productive asset that can contribute greater contribution than anyone else in eradicating poverty. An economic and social empowerment approach to poverty reduction gives the poor a central role in development and creates conditions that empower poor men and women to become masters of their own destinies, provide them with access to information, and enable poor people to be included in the development process. and ensure its active participation in this process, ensuring accountability and expanding organizational and technical capabilities on the ground. The Bank currently finances community-led development projects with more than $2.2 billion in funding. In Indonesia, 15,000 villages and communities are putting together their own proposals to secure local funding, while in Benin women are joining forces to protect forests so they can be used as a source of income rather than just fuel.

The World Bank

The World Bank- a structure consisting of several independent financial organizations. The main declared objectives are to create conditions for sustainable economic growth in the world, fight poverty through investment and assistance from leading countries to developing countries, and improve living standards.

The creation date of the World Bank is considered to be December 27, 1945, when most countries ratified the Bretton Woods Agreement of 1944. The first was provided in 1947 to France for reconstruction after World War II - in the amount of 250 million US dollars.

World Bank loans generally must be guaranteed by participating governments. They are provided for the implementation of specific justified projects. Investments in structural transformations are considered priority: liberalization of markets, privatization, social reforms (education, healthcare).

States are interested in receiving World Bank loans because, firstly, the interest on them is lower than on other loans, and secondly, the bank's investment in the country, as a rule, opens the way for private investment.

The World Bank consists of five organizations:

• reconstruction and development, specializing in financing long-term projects under state guarantees;
• , which helps the poorest countries by providing long-term loans;
• responsible for attracting investment in private sector economies of developing countries;
• , providing investors with protection from government actions and local wars;
• , providing arbitration services in the field of investment.

Russia has been considered a full member of the World Bank since 1992. At the same time, it is a member of four out of five organizations, and does not participate only in the activities of the International Center for the Settlement of Investment Disputes.

The largest shareholders of the World Bank are the USA, Japan, Germany, Great Britain and France. Every three years, a strategy for interaction with participating countries is developed in the form of a separate framework document that links the provision of loans with economic recommendations. Current leadership is provided by the President of the World Bank.

World Bank Headquarters in Washington DC

See what “World Bank” is in other dictionaries:

The World Bank- English World Bank fr. Banque mondiale Spanish Banco Mundial Weltbank ... Wikipedia

The World Bank- World Bank Banque mondiale Banco Mundial Weltbank logo of the World Bank Membership ... Wikipedia

The World Bank- A group of three international financial institutions, uniting more than 180 member countries. The group includes International Bank reconstruction and development (IBRD, World Bank), International Development Association (IDA), International Financial... ... Financial Dictionary

THE WORLD BANK- (World Bank) See: International Bank for Reconstruction and Development. Economy. Dictionary. M.: INFRA M, Ves Mir Publishing House. J. Black. General editor: Doctor of Economics Osadchaya I.M.. 2000.… … Economic dictionary

THE WORLD BANK- (World Bank) international economic organization and a UN specialized agency. The Washington-based institutions of the World Bank include the International Bank for Reconstruction and Development (IBRD, established in 1945) and its branches: ... ... Political science. Dictionary.

The World Bank- See World Bank Dictionary of Business Terms. Akademik.ru. 2001 ... Dictionary of business terms

The World Bank- (International Bank for Reconstruction and Development, IBRD) (World Bank), int. a credit organization with the status of a specialized agency of the UN. The idea of ​​creating V.b. was proposed at the Bretton Woods Conference in 1944, the opening took place in... ... The World History

The World Bank- The largest international financial organization, formed in 1944-45, together with the IMF - the World Monetary Fund, by agreement of the participants of the Bretton Woods Conference (its exact name is the Monetary and Financial Conference of the Organization ... ... Technical Translator's Guide

THE WORLD BANK- one of 14 UN specialized agencies, includes: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (MAP) ... Legal dictionary

THE WORLD BANK- one of 14 specialized UN agencies, a group of three international financial institutions, including the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), the International Development Association... ... Legal encyclopedia

Books

• Where are the IMF, World Bank and WTO leading Russia? Book 2. Russia in the neoliberal loop, A. A. Zhdanovskaya. Reduction of social spending, privatization of healthcare and education, increase in tariffs for housing and communal services, increase in retirement age, abolition progressive taxation, low salaries...

The World Bank, a multilateral lending institution, consists of 5 closely related institutions whose common goal is to improve living standards in developing countries through financial assistance from developed countries:

The International Bank for Reconstruction and Development (IBRD) was founded in 1945 - providing loans to relatively rich developing countries. IBRD is the main component of the World Bank Group. This bank is often called the World Bank.

The International Development Association (IDA), founded in 1960, provides particularly concessional loans to the poorest developing countries that are unable to borrow from the World Bank.

International financial corporation(IFC) founded in 1956 - promoting economic growth in developing countries by supporting the private sector.

Multilateral Agency for investment guarantees(IAIG) founded in 1988 - encouraging foreign investment in developing countries by providing guarantees to foreign investors against losses caused by non-commercial risks.

The International Center for the Settlement of Investment Disputes (ICSID) was founded in 1966. 1 – to promote international investment flows by providing arbitration and dispute resolution services between governments and foreign investors; consulting, Scientific research, information about investment legislation in various countries.

The International Bank for Reconstruction and Development was created in 1945 after 28 countries signed the "Status of Agreement for the International Bank for Reconstruction and Development", which was developed at the United Nations Monetary and Financial Affairs Conference held in 1944 at Bretton -Woods (USA). The IBRD Charter has been changed several times. The Bank, as a specialized agency of the UN, is part of the United Nations system.

Location: Washington. Currently it unites more than 180 countries of the world. The authorized capital is $142 billion. Countries pay 20% of their quotas in the authorized capital, with 2% in convertible currency and 18% in national currency.

Currently, the IBRD has focused its attention on providing assistance to developing countries and countries with transition economy, incl. CIS. Russia joined the IBRD on June 16, 1992.

Only IMF states can join the IBRD at the time and on the conditions determined by the bank. Each member country of the IBRD must become a subscriber to its capital, with the minimum share of capital contributed determined by the bank.

Goals:

promoting the reconstruction and development of the territories of Member States by encouraging investment for production purposes;

encouraging private foreign investment and, in addition to private investment, if difficult to secure, providing financial resources for production purposes;

stimulating long-term balanced growth and helping to maintain balance of payments balance by encouraging international investment for development production resources member states of the Bank.

Structure:

Board of Governors.

Board of executive directors (Executive Board), committees.

Development Committee.

President of the Bank.

All powers of the Bank are vested in Board of Governors, the highest body of the IBRD. Each state is represented on the Council by one governor (plus 1 deputy governor), appointed by each member country for a 5-year term (re-appointment is possible). This is usually a government official at ministerial level (minister of finance or governor of the central bank). Once a year, the Boards of Governors of both the IMF and the World Bank hold separate and joint sessions as part of the Annual Meeting. With the exception of certain powers specifically reserved to them in accordance with the Status of Agreement (admission of new countries, increase or reduction of the Authorized Capital, suspension of the membership of any state, etc.), the managers delegate their powers to the Board of Executive Directors. Decisions are made by a majority of the votes cast, unless other rules of procedure are specifically provided for (85% must be collected on important issues). The weight of each state’s vote is proportional to its share in the Bank’s capital (the USA has more than 17% of votes, i.e. the same as 140 developing countries, while Russia’s quota is 1.8%, and Ukraine’s is 0.8 %).

Board of Executive Directors(elected for 2 years) is responsible for the implementation of the main current (operational) activities (Bank policies, proposals for loans and credits, audit of accounts, administrative budgets, annual reports on Bank policies and operations). Five of the 24 executive directors are appointed by the five largest shareholders of the Bank (USA, Japan, Germany, France and the UK); other countries are grouped into 19 groups, each of which is represented by one executive director elected by the country or group of countries. The number of countries each of these 19 Executive Directors represents varies considerably. It is up to the states to decide how they are grouped, often according to geographic location, as well as political and cultural factors. In its work, the Board of Executive Directors relies on the assistance of various committees: joint audit and temporary committees, committees on personnel policy, on the development of regulations, on cost efficiency and budgetary practice, and on administrative issues.

Development Committee, The joint ministerial committee of the Board of Governors of the IBRD and the IMF on the transfer of real resources to developing countries, consisting of 24 people (ministers of finance or officials of comparable level) was created in 1974. It provides advice and prepares reports for the Boards of Governors of the Bank and the Fund. The committee considers issues such as poverty reduction, private sector development, the impact of industrialized countries' policies on developing countries, debt reduction and resource transfer. The committee's recommendations are forwarded to the Boards of Governors of the IBRD and the IMF.

President of the IBRD, which, according to long-standing tradition, is nominated by the Executive Director representing the United States and elected by the Executive Directors for a 5-year term. He can neither be a manager, nor a director, nor their representative. He is responsible for the management of the day-to-day operations of the Bank, the organization of which, the appointment and dismissal of staff, he carries out under the general supervision of the executive directors. His assistants are 3 managing directors. The President is the Chairman of the Board of Executive Directors, who elect and remove him from this position. He supervises a staff of operational employees and manages, in accordance with the instructions of the Executive Directors, the day-to-day affairs of the Bank.

Sources of financing.

The IBRD, whose capital is subscribed to by all member countries, finances its lending operations primarily from this capital, borrowed money With financial markets, as well as through payments to repay previously granted loans.

Activity.

Unlike the IMF, whose activities are relevant during periods of short-term macroeconomic crises, the IBRD deals with problems of long-term economic development. The World Bank Group provides bank lending primarily of two types:

providing loans to developing countries that are unable to pay interest rates close to market rates. The funds for these loans come from investors who buy bonds issued by the IBRD.

loans are intended only for the poorest countries, which are generally uncreditworthy in international financial markets and unable to pay interest rates close to market rates. The International Development Association (IDA) provides loans to such countries.

The IBRD's priorities are structural transformations such as liberalization of foreign trade, privatization, reforms of the education and health care systems, and investments in infrastructure. The IBRD issues long-term loans, usually on commercial terms, although poor countries are provided with loans at preferential, greatly reduced rates. interest rates. The bank specializes in two types of loans. Targeted loans are intended to finance specific investment projects, for example, the construction of roads, bridges or power plants. Program loans are designed to help the government implement structural reforms in key areas of the economy, for example, liberalize foreign economic relations. In this case, the loan is not a guarantee for a specific investment project, but a means of general financing of the state budget in accordance with a fundamental change in economic policy.

In 1995, the IBRD formulated 4 main areas of its activity:

Seeking a new agreement to attract sufficient resources to meet the needs of developing countries.

A unified approach to the Bank’s development policy for its continuation unchanged.

Strengthening and expanding the circle of World Bank partners, both at the global and local levels.

Improving the Bank's functions.

The Bank's technical assistance activities fall into three main categories:

technical assistance financed as components of Bank loans and credits, open-ended loans and credits for technical assistance, and technical assistance financed through the Project Preparation Fund (PPF);

technical assistance provided but not financed by the Bank (Bank as administrative agency; Bank-led projects) and a paid technical assistance program for high-income developing countries income level, for example, oil refineries and for the International Fund for Rural Development;

technical assistance provided through the administrative budget.

The Bank's guarantee policy provides two options for obtaining guarantees: partial risk guarantees, allowing limited recourse for project financing, and partial credit guarantees, used to distribute risks.

Project cycle IBRD consists of 6 stages: project definition, preparatory work, preliminary cost assessment, negotiations and presentation of the project to the Bank’s management, practical implementation and monitoring of it, evaluation of results.

Inspection Team, composed of individuals selected on the basis of their knowledge and experience in the field of development, may, upon request, consider complaints about cases of non-compliance by the Bank with its procedures and policies.

Institute of Economic Development, founded in 1995, organizes and conducts training courses and seminars for employees from developing countries. It provides assistance to management training and research institutes and prepares, publishes and distributes educational materials.

The Bank has a large research program to support its operational activities and respond appropriately to the pressing challenges facing its members. The goals of such research are: to provide information on economic and technical topics, as well as on the development and implementation of programs related to its credit, analytical, educational and preparatory activities and the provision of technical assistance; increasing knowledge in the field of development; promoting policy dialogue with member countries and increasing their research capacity.

Since 1995, the IBRD has been a member of an advisory body created by Canada, France, Holland, the USA, ADB (Asian Development Bank), IFAD (International Fund for Agricultural Development) and the UN Capital Development Fund to coordinate the activities of creditor countries on systematic financing of programs and for providing these countries and borrower countries with the necessary tools.

Institutional Development Fund is a rapid response tool for financing small, action-oriented plans identified through the Bank's industry-wide work and policy dialogue in low- and middle-income countries.

The Global Environment Facility is a financing mechanism that provides funds to developing countries for projects and activities to protect the environment by promoting environment-friendly development. At the same time, the Bank performs the tasks of the trustee and secretariat of the Fund, as well as the customer of the projects.

World Bank – 1 of the sponsors Advisory Group on International Agricultural Research(CGIAR), created to use modern science to develop sustainable agriculture in poor countries. The Bank and about 40 donors jointly support 18 international agricultural research centers that work closely with national research institutions to develop more resource-efficient food production technologies while protecting and improving the natural resources that underpin food production.

IBRD cooperates at the national and local levels with a number of non-governmental organizations, providing advice, financing and assistance to them in the implementation of various projects.

Regional missions The banks operate in Africa, Asia, Europe and Latin America.

Information

In 1994, the Bank opened information centers in Washington, London, Paris and Tokyo offering information on projects in member countries approved by the Executive Director after January 3, 1994. Project documentation, assessment results, national environmental protection programs, reports on individual countries and sectors of the economy (information about the national economy of countries, their specific features, living standards, government spending).

In 1992-98 The IBRD provided Russia with loans worth $14.4 billion for the implementation of 41 projects (as of the end of 1998, 5.4 had been disbursed). In 1998, Russia became the largest IBRD borrower in Europe and Central Asia. For 1997-98 fiscal year it received loans worth $1.63 billion (Russia ranks 5th in the world list of recipients).

In 1997, Russia for the first time participated in the session of the World Bank and the IMF (in Hong Kong) as a full member and declared its direct and full interest in discussing global financial problems.

In August 1998, at a meeting of the Board of Directors of the World Bank, a loan project for Russia in the amount of $105 billion was approved. The repayment period is 7 years with a 3-year grace period. The loan was allocated in three tranches: $300 million (immediately), $500 (in December 1998) and $700 (in June 1999).

Having become a member of the IBRD, Russia also joined the MIAG.

The International Development Association was created in 1960 as a branch of the IBRD. As a specialized agency, it belongs to the United Nations system. IDA is in many ways no different from IBRD. Both organizations finance development projects, have the same staff, and the President of the Bank is also the President of the IDA. The main differences between the two organizations are how they acquire funds for lending and the terms on which they provide loans to developing countries. The IBRD obtains most of its funding from global financial markets and provides loans to developing countries at more than low percentage and more long terms repayments than they do commercial banks. Unlike the IBRD, the IDA provides interest-free loans to developing countries. Its sources of financing are contributions from donor countries.

Goals:

promoting economic development;

increasing labor productivity;

improving living standards in developing IDA member countries.

Member states are divided into 2 groups:

group I – economically more the developed countries(more than 25 countries);

group II – less developed countries (more than 130 countries).

Membership is open to all member countries of the IBRD on such terms and conditions as may be established by the IDA.

Structure:

Board of Governors.

Executive Directorate.

The president.

Members Board of Governors, Executive Directorate and President ex officio, as well as officials and full-time employees of the IBRD, part-time, perform similar duties in the International Development Association. IDA's staff is divided into 4 sectors: operations, finance, policy, planning and research.

Sources of financing

Main part financial resources IDA consists of three sources: transfers from IBRD profits; capital, the subscribers of which are member states; contributions mainly from wealthier IDA members, including a number of middle-income countries (replenishment of funds occurs, as a rule, every 3 years). Thirty-four member countries agreed to provide $18 billion during the Tenth IDA Fundraiser (IDA10), which ran from 1993-96. to strengthen efforts to combat poverty, implement economic reforms, improve governance and achieve economically sustainable development.

Activity

Loans IDAs target the poorest and least creditworthy countries and are allocated based on the size of the country, annual per capita income and the degree of effectiveness of economic policies. Only countries with an annual per capita income of less than $1,305 are eligible for IDA loans. Most IDA loans are available to countries with annual per capita incomes of $800 or less. Loan repayment begins after a 10-year grace period; they are provided for 35 or 40 years and without interest.

Each IDA-financed project is subject to political and economic assessment in order to make the most effective use of financial assistance. Loans are provided in national currency state or its territory.

The Special Assistance Program supports sub-Saharan countries with low income and high debts. The Executive Directors publish the rules and conditions for IDA loans.

The IFC was created at the initiative of the United States as a branch of the International Bank for Reconstruction and Development in 1956 through the ratification of the charter of the International Finance Corporation. IFC is a separate legal entity and financial institution that is part of the World Bank Group and belongs to the United Nations system as a specialized agency. Location: Washington. The IFC includes more than 170 states. Russia joined on April 12, 1993.

Target:

Promoting economic growth of member countries by promoting entrepreneurship in the productive sector, i.e. at the micro level, thus complementing the activities of the IBRD.

Structure:

Board of Governors.

Directorate.

President, Executive Vice President.

Banking Advisory Commission.

Business Advisory Committee.

The supreme body of the International Finance Corporation is Board of Governors. Each Governor and Deputy Governor of the IBRD, appointed by a member of the Bank that is also a member of the International Finance Corporation, is ex-officio a Governor and Deputy Governor of its Board of Governors. With the exception of certain powers that, according to the IFC charter, are reserved only for members of the Board (such as admitting new members, determining the conditions for admission, increasing or decreasing the authorized capital, suspending membership, amending the charter), the managers have delegated their powers to the Directorate. The annual meeting of the IFC is held simultaneously with the annual meeting of the IBRD.

Directorate, consisting of 24 directors, who are all executive directors of the Bank (and their deputies), appointed/elected by a member or group of members of the Corporation, is responsible for conducting the current activities of the IFC.

President of the Corporation is the President of the World Bank. Responsible for general management and day-to-day operations. He relies on a management team of seven vice presidents for planning and decision-making. Three vice presidents of operations oversee regional and industry departments. In addition, each vice president oversees a separate area of ​​activity. All work is carried out through 5 regional (sub-Saharan Africa; Asia; Central Asia, Middle East and North Africa; Europe; Latin America and the Caribbean) and four sectoral (agribusiness; chemicals, petrochemicals and fertilizers; infrastructure; oil, gas and mining industries ) department. The Capital Markets and Corporate Financial Services Department provides fee-based advisory services to state-owned enterprises and governments on privatization issues and to private companies on financial restructuring issues.

Banking Advisory Commission, consisting of 10 senior executives from leading international financial institutions, holds regular meetings with IFC management to exchange views on the Corporation’s policies and activities.

Business Advisory Committee consists of renowned industrialists, bankers and government officials from all parts of the world who share their knowledge, experience and views on business issues with IFC management.

Sources of financing

IFC's resources consist primarily of member contributions, IDB loans, interest on loans, finance charges, dividends and profit sharing, proceeds from the sale of shares, service fees, deposits and securities transactions, and funds drawn from in international capital markets.

Activity

The IFC provides loans with terms ranging from 5 to 15 years to highly profitable private enterprises, but unlike the IBRD, without government guarantees. In this way, IFC facilitates additional financing for projects implemented by the private sector. However, IFC usually limits its participation in each specific project to 25% of its cost. But it helps to find investors.

Three principles define IFC's regional and sectoral objectives:

catalyst principle: attracting private investors to participate in the project;

the cost-benefit principle to justify collaboration with the private sector;

the principle of IFC participation as a measure complementing the natural market process.

IFC promotes private sector development by:

Financing (loans, equity, joint funds);

Mobilization of resources (pooling of loans, insurance, provision of guarantees, investment in private companies);

Risk management (swap transactions related to exchange rates and interest rates, hedging mechanisms);

Technical assistance and consulting (capital market changes, foreign direct investment, privatization, corporate restructuring, project preparation and evaluation);

Developing a strategy for cooperation with the IBRD on private sector assessment issues (for tax purposes for individual countries, development of national strategies, financial sector reform).

The International Finance Corporation is the World Bank Group's investment bank for developing countries. IFC is the world's largest source of direct financing for private investment projects in developing countries. It provides loans directly to private companies and invests in them own funds, without government guarantees, and also attracts other sources of funding for private sector projects, such as:

1) promotion of entrepreneurial activity, including small business;

2) mobilization of financial resources;

3) investments in infrastructure development projects;

4) environmental protection initiatives;

5) consulting services and technical assistance.

IFC offers a variety of financial transactions and services to companies in developing member countries:

long-term loans provided in major currencies at fixed or variable rates;

attachments equity, other lending mechanisms (subordination loans, securities with income);

provision of guarantees and auxiliary financing;

risk management (mobilization of capital through swap transactions with currencies and interest rates; provision of hedging tools).

The Corporation advises businesses and governments of developing countries on a variety of issues, including physical and financial restructuring, development of business plans, identification of markets, products, technologies, financial and technical partners, and mobilization of resources for project financing.

Established in 1986, the Foreign Investment Advisory Service (FIAS), overseen by a committee headed by IFC's executive vice president, helps governments meet long-term development needs by maximizing the benefits of foreign investment (capital, technology, management expertise). and knowledge). FIAC provides advice to governments on the laws, policies, rules and procedures needed to create an attractive investment climate.

The African Project Development Advisory Bureau, established in 1986, provides advice to African entrepreneurs seeking to expand or modernize existing businesses or create new ones.

The South Pacific Project Development Advisory Bureau assists entrepreneurs in nine IFC member island countries in developing bankable projects or starting new businesses or expanding and diversifying existing ones.

In recent years, IFC has focused on providing technical assistance to private firms, financed through the Technical Assistance Fund.

IFC representatives work in countries in Africa, Asia, Europe and Latin America.

INFORMATION

IFC established a disclosure policy in 1994 and offers information on the Corporation's operating activities, environmental documents, and other project data, financial information, and IFC discussion papers (economics and research).

Public information about IFC activities can be obtained from the World Bank Public Information Center (PIC) in Washington; You can request information online or at World Bank offices in London, Paris, and Tokyo.

The New Markets Database offers information on new markets. The introduction of IFC investment indices, which reflect the degree of openness of selected new markets to foreign investors, is intended to meet the increasing needs of investors. The database will constantly expand the scope of services offered.

Since 1956, IFC has committed more than $21.2 billion of its own funds to a variety of projects and provided $15 billion in financing to 852 enterprises in 129 developing countries.

Since 1993, IFC has approved financing for 38 Russian projects for $563 million from its own funds and $223 million from the funds of participants in the syndicated funds program. The total cost of these projects was $1.9 billion.

The total volume of loans and investments in all areas of corporate activity is $7 billion.

The Multilateral Investment Guarantee Agency was created in 1988 as a subsidiary of the World Bank, but financially it is independent. As a specialized agency, the Agency is part of the UN system. The MAIG includes more than 130 states, including the Russian Federation. Membership is open to all IBRD members.

Target:

Encouraging investment for productive purposes in Member States, in particular in developing countries, by:

provision of guarantees, including joint reinsurance against non-commercial risks in the form of placing capital in some member countries, which is raised in others;

implementing appropriate support activities to facilitate the flow of investment into and between developing countries.

Functions:

increasing the capacity of other insurers through coinsurance or reinsurance;

insurance of investments in countries that are not subject to such insurance by other insurers due to the policies of the latter;

servicing investors who do not have access to other officially recognized insurers;

providing guarantees to investors of various nationalities who are members of a multinational syndicate, which creates favorable conditions for concluding insurance contracts and settling claims.

Structure:

Board of Governors.

Directorate, Chairman of the Directorate.

Executive Vice President.

The supreme body of the Agency is Board of Governors. He may delegate his powers to the Directorate, with the exception of those specifically assigned to the Council (admission of new members, suspension of membership, increase or reduction of capital). The Council consists of governors and their deputies (1 from each member country). The Chairman of the Council is elected from among the managers.

Directorate consists of 20 directors (each with 1 deputy) and is responsible for the overall operational activities of the Agency. The Chairman of the Directorate is the President of the IBRD.

Executive Vice President The MAIG is appointed by the Directorate on the proposal of the chairman and performs its functions under the general control of the Directorate. He is responsible for organizing work, appointing and dismissing personnel. Officials and other staff members of the IBRD work part-time at the Agency.

Sources of financing

The most important source of financing is fixed capital ($948 million), which provides guarantees in the amount of $745 million. The AIGA Convention stipulates that industrialized countries must contribute 10% of their share in convertible currency. Each country contributes another 10% in the form of non-publicly traded, interest-free debt. The remainder represents reserve capital. Up to 25% of developing countries' contributions may be made in their own currency.

Activity

MIIG complements the activities of existing investment insurers through coinsurance and reinsurance. The Agency provides guarantees to investors selected by it (covering up to 90% of the investment volume) for a period of 15-20 years for investments in member states (developing countries) against non-commercial risks, i.e. provides a kind of insurance against political, economic and other types of risks. MIGA offers four main types of guarantees:

Currency non-convertibility

Protection against losses arising from the inability to convert local currency into foreign currency for transfer outside the country.

Expropriation

Protection against losses caused by host government actions to limit or eliminate ownership or control of ownership or rights to the insured investment.

War and civil unrest

Protection against losses caused by hostilities or civil commotion leading to destruction or damage tangible assets enterprise or creating obstacles to its activities.

Breach of contract 1

Protection against losses associated with the fact that the investor cannot obtain a court or arbitration decision and/or its implementation in a claim against the host country that canceled or violated the investment contract.

AIHA reviews projects during the application process to ensure they are financially, economically and environmentally sound and that they contribute usefully to the development needs of the host country.

MIGA provides a variety of technical assistance services to assist member countries' efforts to promote foreign direct investment. In 1994, MAIG provided a range of services, ranging from consulting services on policies to improve investment regimes to assistance in increasing the inflow of foreign investment and advice on legal issues relating to foreign investment.

In 1994, AIGA began to focus on building investment promotion capacity and began developing electronic tools (a global sector-specific CD-ROM) to speed up the dissemination of information on investment opportunities in developing and transition countries. The withdrawal of policy advisory services to conserve resources needed to facilitate the expansion of assurance activities resulted in the cessation of financial support provided by MIGA to the Foreign Investment Advisory Service. with the exception of investment promotion and information dissemination, were transferred to FIAC. services was renamed the Investment Marketing Service.

Investment promotion includes meetings, conferences, training programs and seminars, as well as industry and interstate study tours. The Agency's information policy provides for the use of the latest means of communication in order to establish and maintain contacts with potential investors.

In 1994, AIGA conducted a series of workshops to assist member countries in “building marketing capacity to improve services to and strengthen relations with investors and to carry out investment promotion missions.

INFORMATION

MIGA publishes, among other things, the bulletin "MIGA News" (in French since 1994) and publishes an annual report.

IPANET is a global network of information exchange and communications on the Internet.

EBRD

EBRD is the third most influential credit organization. It was created in 1990 as a result of the signing of the Agreement establishing the European Bank for Reconstruction and Development (began operations in April 1991). Location: London.

Goals:

supporting the transition of Central and Eastern European countries to an open market-oriented economy;

promoting the development of private entrepreneurship in countries committed to the principles of multi-party democracy, pluralism and a market economy.

Functions:

support to member countries - recipients of assistance in carrying out structural and sectoral economic reforms, including demonopolization and privatization in order to fully integrate their economies into the world economy by promoting:

• organization, modernization and expansion of production, competitive and private enterprise activities, especially small and medium-sized enterprises;

  mobilization of national and foreign capital and effective management;

  investments in production in order to create a competitive environment and increase productivity, quality of life and improve working conditions;

  providing technical assistance in the preparation, financing and implementation of projects;

  stimulating and encouraging the development of capital markets;

  implementation of solid and economically feasible projects involving more than one recipient country;

  environmentally sustainable development.

The EBRD includes about 60 countries and institutions (European Union, European Investment Bank).

Members of the Bank can become:

European countries.

Non-European countries that are members of the IMF.

European Community (European Union).

European Investment Bank.

Structure:

Board of Governors.

Directorate, committees.

President, vice presidents.

Environmental Advisory Council.

Board of Governors, in which each member of the EBRD is represented by one manager and one deputy (118 members in total), it is the highest body determining the main directions of the Bank’s activities. Each member of the Bank is represented on the Board of Governors and the Board of Directors. Meetings are held once a year, additional meetings may be called by the Board of Governors or Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, with the exception of the admission and determination of conditions for the admission of new members, changes in the size of the authorized capital, suspension of membership, election of directors and president, determination of the salaries of directors and deputy directors, approval general balance, amendments to the Agreement and termination of the Bank's operations. At the same time, the Board of Governors retains full power in relation to all tasks entrusted to the Directorate. The number of votes each member has is equal to the number of his subscribed shares in the share capital of the Bank.

The president(four-year mandate, possible re-election) manages day-to-day affairs according to the instructions of the Directorate. He presides over meetings of the Directorate and may participate in meetings of the Board of Governors. He is an authorized representative of the Bank. Heading the staff of the Bank, the President, in accordance with the rules established by the Directorate, is responsible for the organization EBRD work, as well as for the hiring and dismissal of full-time employees. Vice Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions. The EBRD structure includes nine departments ( banking operations, financial, project assessments, department of the chief economist, etc.). The Banking Operations Department has three departments: country groups, 1 industry group, 2 operations support groups. Each department consists of teams of experts from the private and public sectors of the Bank's member countries.

Environmental Advisory Council consists of environmental experts from Central and Eastern Europe and OECD countries, as well as policy and strategy advisers related to the Bank's environmental mandate.

Sources of financing

The Bank's capital resources include the authorized capital, borrowed funds and funds received for the repayment of loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial assets and income that are not part of the Bank's special funds resources.

The share capital is 10 billion euros (the euro is official currency bank, all its assets, liabilities and financial statements are expressed in euros) and is divided into 1 million shares with a par value of 10,000 euros. The total nominal amount of paid shares is $4.3 billion, i.e. 30% of the originally authorized share capital. Russia's quota in the EBRD capital is 40 thousand shares, which provides it with its own director on the Board of Directors.

In accordance with the founding agreement, a number of funds were created:

1) with the participation of Denmark, Iceland, Norway, Finland and Sweden, the Baltic Special Investment Fund to promote the private sector by supporting small and medium-sized enterprises in the Baltic countries and the Baltic Special Fund for technical assistance to promote the development of market economies in the Baltic countries;

2) Russian Special Fund for Small Businesses for the Development of the Private Sector;

3) Russian special fund for technical assistance to small businesses.

Activity

The EBRD seeks to assist member countries in implementing structural and sectoral economic reforms, including de-monopolization, decentralization and privatization, taking into account the needs of these countries at various stages of transition to a market economy. Its activities include promoting the development of the private sector, strengthening financial institutions and legal systems, and creating or modernizing the infrastructure necessary for private sector activities. The Bank encourages co-financing 1 and foreign direct investment by the private and public sectors. The EBRD cooperates with international financial institutions and other international organizations.

The EBRD operates on a commercial basis, providing loans at risk-adjusted market interest rates (financial instruments: loans, equity investments and guarantees). The Bank provides direct financing to private sector development projects, structural reforms and privatizations, as well as infrastructure development. Joint ventures are the main focus of the Bank's lending, especially those with foreign sponsors.

Through its technical cooperation programme, the Bank finances research and project-related analyses, advisory services and training.

Priority areas are privatization and structural reforms, financial system, energy (including nuclear reactor safety), telecommunications, transport and environmental infrastructure, agriculture, natural resources and tourism.

In 1993, the G7 formally proposed to the EBRD to establish a Nuclear Safety Account to attract contributions from donor countries to subsidize nuclear safety projects in the region. The Bank prepares projects and submits them to the Assembly of Depositors for consideration. It acts as the secretariat of the Nuclear Safety Account. Priority is given to reactors that present a high degree of risk, which must be reduced through rapid and cost-effective improvements to ensure safety. The EBRD is a universal institution and combines various directions: it provides loans to the governments of 25 countries and at the same time pays attention to supporting the private sector in these countries.

The Bank opened representative offices in the countries of Eastern and Central Europe (Albania, Belarus, Bulgaria, Hungary, Kazakhstan, Latvia (for the Baltic states), Poland, Romania, the Russian Federation (Moscow with regional offices in St. Petersburg and Vladivostok), Slovakia, Ukraine, Uzbekistan and Czech Republic).

INFORMATION

The Bank publishes general information on the EBRD's activities, periodicals, sectoral policy materials, documents on environmental issues and privatization, as well as studies and working papers.

The World Bank- an international financial organization created for the purpose of organizing financial and technical assistance to developing countries.

The World Bank was founded in 1944. The headquarters is located in Washington ( Federal District Colombia). The organization has more than 100 offices around the world, employing approximately 9,000 people.

Structure of the World Bank

The World Bank now consists of several organizations that are part of a single entity known as the World Bank Group. These organizations:

1. International Bank for Reconstruction and Development (IBRD). Provides financing to governments of middle-income and creditworthy low-income countries.
2. International Development Association (IDA). Provides interest-free loans and grants to governments of the world's poorest countries.
3. International Finance Corporation (IFC). Large organization development focused on the private sector. Helps developing countries with investments, raising funds from international financial markets, consulting companies and governments.
4. Multilateral Investment Guarantee Agency (MIGA). Helps attract foreign direct investment to developing countries by insuring investors and creditors against political risks.
5. International Center for the Settlement of Investment Disputes (ICSID).

World Bank Office

The World Bank is governed as a cooperative society whose shareholders are the organization's 188 member countries. Shareholders are represented by the Board of Governors, which is the highest policy-making body of the Bank. Typically, the managers are the countries' ministers of finance or development. The Board of Governors meets once a year during the Annual Meetings of the Governing Boards of the World Bank Group and the International Monetary Fund.

Specific powers have been delegated to 25 executive directors. The five executive directors represent the countries with the largest stakes: the USA, Japan, Germany, France, the United Kingdom. The remaining 20 executive directors represent country groups.

(The World Bank) is an international financial organization created to organize financial and technical assistance to developing countries. In the process of its development, the World Bank has undergone various structural changes, therefore, the term World Bank at different stages meant different organizations. The World Bank is not a "bank" in the general sense of the word; it is an international community of shareholder countries with representatives on the Board of Executive Directors. These representatives determine the Bank's policies and supervise its activities.

Initially, the World Bank was associated with the International Bank for Reconstruction and Development, which provided financial support for the reconstruction of Western Europe and Japan after World War II. Later, in 1960, the International Development Association was created, which took over some of the functions related to the policies of this bank.

Currently, the World Bank actually refers to two organizations:

• , specializing in financing long-term projects under state guarantees;
• , which helps the poorest countries by providing long-term loans.

At different times, they were joined by three more organizations created to solve the problems of the World Bank:

• responsible for attracting investment in the private sector of the economy of developing countries;
• , providing investors with protection from government actions and local wars;
• , providing arbitration services in the field of investment.

All five organizations are members of the World Bank Group and are called World Bank Group. In some cases, the World Bank still refers to the International Bank for Reconstruction and Development, which still forms the basis of the World Bank's activities.

The World Bank is one of two (along with) large financial organizations created following a meeting held in the United States in 1944. Delegates from 45 countries discussed economic recovery and the structure of the world economy after World War II.

In the early stages of its activity from 1945 to 1968, the World Bank did not actively lend due to increased requirements for borrowers. Under the leadership of the bank's first president, John McCloy, France was chosen as the first borrower and was issued a loan in the amount of $250 million. Two other applicants (Poland and Chile) did not receive assistance. Subsequently, the World Bank took an active part in lending to Western European countries, which were actively restoring the economy destroyed by World War II, implementing. Funding for this plan came largely from the World Bank.

In 1968-1980, the World Bank's activities were aimed at helping developing countries. The volumes and structure of loans provided increased, covering various industries economy from infrastructure to solving social issues. Robert McNamara, who led the World Bank during this period, brought a technocratic management style to its activities, as he had leadership experience as the US Secretary of Defense and the president of Ford. McNamara created a new system for potential borrowing countries to provide information, which allowed them to reduce the time it took to decide on the terms of a loan.

In 1980, McNamara was replaced as president of the World Bank by Clausen at the request of then US President Ronald Reagan. During this period, financial assistance was provided mainly to third world countries. The period 1980-1989 was characterized by a lending policy aimed at developing third world economies in order to reduce their dependence on loans. This policy led to a reduction in loans provided to solve social problems.

Since 1989, World Bank policy has undergone significant changes due to criticism from various non-governmental organizations, in particular those related to environmental protection. As a result, the range of loans provided for various purposes has expanded.

Main goals and objectives of the World Bank:

1. eradication of poverty and hunger;
2. ensuring universal primary education;
3. promoting gender equality and women's empowerment;
4. reduction in child mortality;
5. improving maternal health;
6. combating HIV/AIDS, malaria and other diseases;
7. ensuring sustainable development of the environment;
8. forming a global partnership for development.

Two closely related institutions within the World Bank - the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) - provide loans at low interest rates, zero percent or in the form of grants to countries that do not have access to international ones or have such access on unfavorable terms. Unlike others financial institutions The World Bank does not seek profit. The IBRD operates on a market basis, taking advantage of its high income, which allows it to obtain funds at low interest rates, in order to provide loans to its clients from developing countries, also at low interest rates. The Bank covers operating expenses associated with this activity independently, without using external sources of financing.

Every three years, the World Bank Group develops a framework document: the World Bank Group Strategy, which is used as the basis for cooperation with the country. The strategy helps link the bank's lending, analytical and advisory programs to the specific development goals of each borrowing country. The strategy includes projects and programs that can have the greatest impact on solving the problem of poverty and contribute to dynamic socio-economic development. Before submission to the Board of Directors of the World Bank, the strategy is discussed with the government of the borrowing country and with other interested structures.

Acting through the IBRD and IDA, the World Bank provides loans of two main types: investment loans and development loans.

Investment loans are provided to finance the production of goods, works and services as part of socio-economic development projects in a variety of sectors.

Development loans(formerly called Structural Adjustment Loans) are provided through allocations to support policy and institutional reforms.

The World Bank provides not only financial support to member countries. Its activities are also aimed at providing analytical and advisory services needed by developing countries. Analyzing the policies pursued by countries and developing appropriate recommendations in order to improve the socio-economic situation in countries and improve the living conditions of the population is part of the work of the World Bank. The bank is engaged research work on a wide range of issues, such as environment, poverty, trade and globalization, and economic and industrial research in specific sectors. The Bank analyzes the prospects for economic development of countries, including, for example, the banking and/or financial sector, trade, poverty and social protection systems.