Who runs or owns the World Bank?
The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.
The United States was a leading force in the establishment of the International Bank for Reconstruction and Development (IBRD) in 1944 and remains the largest shareholder of the World Bank Group today.
The United States is the largest single shareholder, followed by Japan, Germany, the United Kingdom, and France. The rest of the shares are divided among the other member countries. A Board of Governors represents the Bank's government shareholders.
United States At-A-Glance
As the only World Bank shareholder that retains veto power over changes in the Bank's structure, the United States plays a unique role in influencing and shaping development priorities.
Technically the World Bank is part of the United Nations system, but its governance structure is different: each institution in the World Bank Group is owned by its member governments, which subscribe to its basic share capital, with votes proportional to shareholding.
The United States has the largest financial commitment to the IBRD, accounting for 16.69% of total IBRD resources. U.S. paid-in capital is $3.5 billion and U.S. callable capital is $47.8 billion.
THE WORLD BANK MANDATE
World Bank assistance is generally long-term and is funded by member country contributions and by issuing bonds.
Lack of Transparency and Accountability: The World Bank has also been criticized for its lack of transparency and accountability. Critics argue that the Bank has not been transparent in its decision-making processes, and that it has not adequately engaged with civil society and other stakeholders in its operations.
IBRD's reported net income was $4.0 billion in FY22, compared to net income of $2.0 billion in the prior year, primarily due to the unrealized mark-to-market gains on IBRD's non-trading portfolios.
The Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The governor is appointed by the member country and is usually the minister of finance or the governor of the central bank.
Who is controlling the World Bank?
The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.
China originally joined the World Bank Group (WBG) on December 27, 1945. However, after the Chinese Civil War, the World Bank recognized the Republic of China as its member, until the relationship ended in 1980, when the membership was replaced by the People's Republic of China.
India takes the top spot. Its $39.7bn debt towards the WB recorded at the end of 2021 is double that of the next biggest debtor, Indonesia, with $19.6bn.
Together, IBRD and IDA form the World Bank, which provides financing, policy advice, and technical assistance to governments of developing countries. IDA focuses on the world's poorest countries, while IBRD assists middle-income and creditworthy poorer countries.
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The World Bank exists to encourage poor countries to develop by providing them with technical assistance and funding for projects and policies that will re- alize the countries' economic potential. The Bank views development as a long- term, integrated endeavor.
In 2022, Israel and Ukraine topped the list of nearly 180 countries receiving funds globally. The latest pattern will be one to monitor going forward, with Israel embroiled in a war against the terror group Hamas in Gaza and Ukraine's defense against Russia now ongoing for approximately two years.
As of 2022, the World Bank is run by a president and 25 executive directors, as well as 29 various vice presidents. IBRD and IDA have 189 and 174 member countries, respectively. The U.S., Japan, China, Germany and the U.K. have the most voting power.
Ajay Banga was selected 14th President of the World Bank Group and began his five-year term as World Bank Group President on June 2, 2023. Ajay Banga most recently served as Vice Chairman at General Atlantic.
IBRD resources and financial model
IBRD is rated Aaa by Moody's and AAA by Standard & Poor's, and investors view its bonds as high-quality securities.
What is World Bank scandal?
The old Doing Business, which was cited widely from boardrooms to classrooms, was canceled after accusations that bank staff gave China preferential treatment in the report's annual country rankings. Governments were also juking their own stats to get a higher spot in the list of business-friendly countries.
Developing nations have argued that the World bank is too slow, inefficient, unaccountable and lacks the organisational culture to tackle climate change. World Bank officials addressed negotiators questions in a closed-door meeting in Aswan on Tuesday but Cuesta was not impressed.
The World Bank, the world's largest international development organization, has long faced criticism for a host of perceived shortcomings, including imposing coercive conditions on its loans to developing countries, instituting insufficient environmental safeguards in its projects, and failing to properly consult civil ...
According to the bank's 2021 annual report, Malpass earned $525,000 in net salary that year, and the bank made more than $340,000 in annual contributions to a pension plan and other benefits. After early April, Malpass' contract entitles him to a pension equivalent to 70% of his salary.
Ajay Banga, 14th President of the World Bank Group
Ajay Banga began his five-year term as World Bank Group President on June 2, 2023. Ajay Banga most recently served as Vice Chairman at General Atlantic. Previously, he was President and CEO of Mastercard, a global organization with nearly 24,000 employees.
References
- https://www.worldbank.org/en/country/unitedstates
- https://en.wikipedia.org/wiki/World_Bank
- https://en.wikipedia.org/wiki/World_Bank_Group
- https://president.worldbankgroup.org/en/president
- https://www.fdiintelligence.com/content/data-trends/the-world-banks-top-10-biggest-debtors-82044
- https://www.imf.org/en/About/executive-board/members-quotas
- https://www.worldbank.org/en/about/annual-report/our-organization
- https://www.worldbank.org/en/news/feature/2012/07/26/getting_to_know_theworldbank
- https://crsreports.congress.gov/product/pdf/IF/IF11361
- https://www.worldbank.org/en/about/leadership/members
- https://www.worldbank.org/en/about/people/a/ajay-banga
- https://www.foreignaffairs.com/united-states/world-bank-failing-climate-change
- https://www.climatechangenews.com/2023/10/20/world-bank-controversy-sends-loss-and-damage-talks-into-overtime/
- https://www.worldbank.org/en/country/unitedstates/overview
- https://www.worldbank.org/en/who-we-are
- https://www.usnews.com/news/best-countries/articles/countries-that-receive-the-most-foreign-aid-from-the-u-s
- https://www.worldbank.org/en/news/press-release/2022/08/08/world-bank-group-releases-fy22-audited-financial-statements
- https://en.wikipedia.org/wiki/China_and_the_World_Bank
- https://www.tutor2u.net/economics/blog/time-to-rethink-how-the-world-bank-operates
- https://www.imf.org/en/About/Factsheets/Sheets/2022/IMF-World-Bank-New
- https://www.devex.com/news/world-bank-s-scandal-hit-doing-business-seeks-redemption-with-revamp-104949
- https://www.reuters.com/business/who-could-replace-world-bank-president-david-malpass-2023-02-23/
- https://www.imf.org/-/media/Files/Publications/Miscellaneous/English/2016/imf-wb-how-do-they-differ.ashx
