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International Bank for Reconstruction and Development (IBRD)
- 1. International Bank for Reconstruction and Development (IBRD) The International Bank for Reconstruction and Development (IBRD) is an international financial institution that provides loans to middle income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm, the International Development Association, are collectively known as the World Bank as they share the same leadership and staff. Following the reconstruction of Europe, the Bank's mandate expanded to advancing worldwide economic development and eradicating poverty. The IBRD provides commercial-grade or concessional financing to sovereign states to fund projects that seek to improve transportation and infrastructure, education, domestic policy, environmental consciousness, energy investments, healthcare, access to food and potable water, and access to improved sanitation. The IBRD is owned and governed by its member states, but has its own executive leadership and staff which conduct its normal business operations. The Bank's member governments are shareholders which contribute paid-in capital and have the right to vote on its matters. In addition to contributions from its member nations, the IBRD acquires most of its capital by borrowing on international capital markets through bond issues.
- 2. Objectives The following objectives are assigned by the World Bank: To provide long-run capital to member countries for economic reconstruction and development. To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium and balanced development of international trade. To provide guarantee for loans granted to small and large units and other projects of member countries. To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy. To promote capital investment in member countries by the following ways; To provide guarantee on private loans or capital investment. If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions Goals of IBRD Eradicate Extreme Poverty and Hunger Achieve Universal Primary Education Promote Gender Equality Reduce Child Mortality Improve Maternal Health Combat HIV/AIDS, Malaria, and Other Diseases Ensure Environmental Sustainability Develop a Global Partnership for Development
- 3. Organization Structure The World Bank is like a cooperative, made up of 189 member countries. These member countries, or shareholders, are represented by a Board of Governors, who is the ultimate policymakers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. The governors delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest shareholders appoint an executive director, while other member countries are represented by elected executive directors. World Bank Group President chairs meetings of the Boards of Directors and is responsible for overall management of the Bank. The President is selected by the Board of Executive Directors for a five-year, renewable term. The Executive Directors make up the Boards of Directors of the World Bank. They normally meet at least twice a week to oversee the Bank's business, including approval of loans and guarantees, new policies, the administrative budget, country assistance strategies and borrowing and financial decisions. The World Bank operates day-to-day under the leadership and direction of the president, management and senior staff, and the vice presidents in charge of Global Practices, Cross-Cutting Solutions Areas, regions, and functions.
- 4. The IBRD is governed by the World Bank's Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). The Board of Governors delegates most of its authority over daily matters such as lending and operations to the Board of Directors. The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group. The executive directors collectively represent all 189 member states of the World Bank. The president oversees the IBRD's overall direction and daily operations. As of July 2012, Jim Yong Kim serves as the President of the World Bank Group. The Bank and IDA operate with a staff of approximately 10,000 employees. Board Of Governors Executive Director President Finance Deparment Operations Deparment Economic Reasearch Staff Deparment Law Deparment Secritariate