The World Bank Group comprises five organizations:
The International Bank for Reconstruction and Development,
The International Development Association,
The International Finance Corporation,
The Multilateral Investment Guarantee Agency, and
The International Center for the Settlement of Investment Disputes.
International Bank for Reconstruction and Development (IBRD)
The IBRD, founded in 1944, is the World Bank Group's main lending organization. It lends to developing countries with relatively high per capita incomes. The money the IBRD lends is used to pay for development projects, such as building highways, schools, and hospitals, and for programs to help governments change the way they manage their economies.
Interest rate charged on IBRD loans:
6.98 percent as of January 1,1996. The rate is changed every six months.
Maturity on loans:
15 to 20 years, with a grace period of about five years.
Source of funds:
The IBRD raises most of its money on the world's financial markets. It sells bonds and other debt securities to pension funds, insurance companies, corporations, other banks, and individuals around the world.
Ownership:
IBRD is owned by its 179 member countries. Each of these countries has voting power in the institution. Voting power is based on a country's shareholding, which in turn is based on a country's economic strength.
Lending:
In fiscal 1995 the IBRD lent $16.852 billion for a total of 134 projects; in fiscal 1994 the total was $14.2 billion for 124 projects.
Lending by category (IBRD and IDA):
Adjustment related (including social funds): 9%
Agriculture/rural development: 29%
Education: 14%
Environment: 6%
Industry/energy: 8%
Infrastructure/urban development: 15%
Population, health and nutrition: 19%
International Development Association (IDA)
The IDA was established in 1960 to provide assistance on concessional terms to the poorest developing countries-those that cannot afford to borrow from the IBRD. IDA loans, known as "credits," are provided mainly to countries with annual per capita incomes of about $800 or less.
IDA credits are interest free, but carry a small service charge.
Terms on credits:
35 or 40 years, with a 10-year grace period.
Sources of funds:
IDA resources are derived from contributions from governments, IBRD profits and repayments on earlier IDA credits.
Ownership:
IDA has 168 member countries. A country must be a member of IBRD before it can join the IDA.
Lending for fiscal 1995:
IDA approved $5.7 billion in credits to help pay for development projects, compared to $5.5 billion fiscal 1994.
International Finance Corporation (IFC)
The IFC was established in 1956 to help strengthen the private sector in developing countries. IFC lends directly to the private sector, while the IBRD and IDA lend to governments. IFC aids the private sector by providing long-term loans, equity investments, guarantees and "stand-by financing," risk management and "quasi-equity instruments," such as subordinated loans, preferred stock and income notes.
Interest rate on IFC loans and financing: market rates, which vary between countries and projects.
Maturity on loans:
Three to thirteen years, with grace periods as long as eight years.
Source of funds:
About 80 percent is borrowed in the international financial markets through public bond issues or private placements and 20 percent is borrowed from the IBRD.
IFC is owned by 168 member countries.
Lending:
Each year, IFC approves about $4 billion in financing-including syndications and underwriting-for private-sector projects in developing countries.
Multilateral Investment Guarantee Agency (MIGA)
MIGA was established in 1988 to help developing countries attract foreign investment. MIGA provides investors with investment guarantees against "non-commercial risk," such as expropriation and war. It also provides governments with advice on improving the climate for foreign investment.
Membership (as of February 1996):
131 countries.
Guarantees:
For fiscal 1995, MIGA issued 54 guarantee contracts totaling $672 million in coverage. Total direct foreign investment facilitated is $2.5 billion.
International Center for Settlement of Investment Disputes (ICSID)
ICSID was founded in 1966 to promote increased flows of international investment by providing facilities for the conciliation and arbitration of disputes between governments and foreign investors. ICSID also provides advice, carries out research and produces publications in the area of foreign investment law.
Membership:
125 countries as of February 21,1996.
Cases:
In fiscal 1995, ICSID had five cases in arbitration with two new requests registered.
Research and publications:
ICSID's publications in the field of foreign investment law include multi-volume collections of investment laws and treaties and a semi-annual law journal.
From the United Nations Department of Public Information.
