Among the most famous and large-scale international financial institutions - the World Bank.Activities of this institution is recognized by experts as extremely important from the point of view of balanced development of the economies of the world.Among the key activities of the World Bank - to assist developing countries in improving the model of the national economy.To successfully address this and other problems in the structure of the World Bank created several institutions.What is their specificity?How are implemented features the WB?
General information about the World Bank
What kind of institution - the World Bank?Full name and function of the structure - what they are remarkable?The World Bank (The World Bank, the World Bank) - is an international financial institution, which combines several different agencies.
According to public data reflecting activities of the World Bank, the main task of the bank - raising the level of economic development of the states by providing them with financial assistance from wealthy countries.The organization was created in 1945.The company's headquarters is located in Washington.
consider the specifics of institutions that form the structure of the World Bank.In reviewing the financial organization includes:
- IBRD (International Bank or Reconstruction and Development);
- IDA (Association, head of development);
- IFC (International Finance Corporation, or);
- MIGA (the agency in charge of - investment guarantees);
- ICSID (center dedicated to the settlement of disputes within the framework of investment projects).
These organizations are designed to provide loans to countries in need at affordable rates, and in some cases - non-interest bearing.Also provided support to countries through grants.Terms of appropriate assistance to the World Bank - the liberalization of the economy, privatization, reforms needed in the area of education, health, infrastructure improvement.
We now consider the main functions of the World Bank.
Researchers identify their next range:
- investment activity (mainly in developing countries in the areas of health and education);
- consulting support of national governments on economic issues, analytical activities;
- improving the provision of financial services;
- intermediary activities (in the distribution of resources between developed and economically backward countries).
thus considered financial structure plays a significant role for the world economy.Selected functions of the World Bank are important from the point of view of balanced economic development of modern states.Consider now, through what mechanisms the World Bank is implementing them in practice.You can consider this issue in the context of the activities of the above-mentioned institutions, which are included in the structure of the World Bank.Let's start with the World Bank.
The specifics of the IBRD
IBRD or the International Bank for Reconstruction and Development - an institution which, apart from the World Bank, also under the jurisdiction of the UN.Many of the functions of the World Bank implemented on the basis of the organization.In fact, the World Bank - is the head of the World Bank.It may be noted that the institution was established before, actually, the World Bank, in 1944.The International Bank for Reconstruction and Development was established after the Bretton Woods Conference.The purpose of its establishment was to stimulate the recovery of the economies of which have suffered during hostilities.
In the 50s the World Bank began to perform some of the functions of the World Bank, noted by us above - in particular, to provide loans to developing countries.In 90 of the corresponding type organization began to issue loans to countries in transition and economic system.Specificity of IBRD loans - in the long term.Loans institution provides for a period of 15-20 years.Financial assets of the bank are formed by membership fees, the amount of which depends on the quotas for certain member states.
Specificity of activity MAP
Another important structure is responsible for the functions of the World Bank - IDA and the International Development Association.It was formed in 1960.The purpose of its establishment was to provide soft loans with long pay - 40-50 years - states characterized by low levels of economic development.For example, in 1961 the organization decided to give the corresponding loans in India, Chile, Honduras and Sudan.IDA not only provides loans in order to help governments of countries with a low level of economic development, but also promotes the export of goods from developed countries to developing ones.It is also the responsibility of IDA - the implementation of various social programs.Count on loan from the IDA may state that are not able to service loans on IBRD terms.Since its inception, the organization has issued loans to more than 90 billion US dollars.
What does IFC?
IFC and the International Finance Corporation - the other important structures, which include the World Bank Group.Options to reduce its lending to stimulate industrial countries with a low level of economic development.The main purpose of the organization - promoting investments in projects in developing countries, improving the lives of people living in them.Loans from IFC issued to private companies that show good numbers in terms of profitability.Term loans - within 15 years.For all time of its activity the organization has issued loans to more than 20 billion US dollars.
The World Bank is particularly noteworthy - the structure and functions of the organization fairly balanced split between distinct entities.Among the institutions that are responsible for a large amount of the solution of problems in the field of investment - MIGA.How does it do?MIGA, or the International Investment Guarantee Agency, deals with issues relevant security investments from a variety of non-commercial risks, as well as consulting work in communications with governments.MIGA promotes raising capital to developing countries to improve their economic performance.
Risks experts who analyze the organization may reflect the specifics of currency translation, the confiscation of private property, political instability.MIGA promotes stability of financial flows to developing countries, as well as inform investors about the prospects for monetary investments in the respective economies.Among the main tools MIGA - guarantee.The organization has issued since the founding of their worth over 17 billion US dollars.With the assistance of institutions in developing countries was taken by investments worth more than 50 billion US dollars.
specifics of ICSID
studying the specifics that characterize the structure and functions of the World Bank, be sure to explore the features of activity of ICSID, or the International Centre for Settlement of Investment Disputes.This organization promotes the protection of the interests of the partners involved in various investment projects in the framework of the available legal procedures.ICSID deals with the elimination of non-economic nature of possible barriers that accompany the interaction of states and companies in the process of international cooperation.Considered the institution implements its functions through two main mechanisms - conciliation and arbitration proceedings.Services ICSID - paid, participation in them - is voluntary.
Features WB loans
learn the specifics of loans that are available to address the main problems within the competence of such institutions as the World Bank - the development of a lagging economy.The organization provides loans in two basic varieties.Firstly, this investment loans.They are provided to finance the industrial sectors in the economies of developing countries, as well as in other segments of the economic systems, which are important in terms of addressing the socio-economic problems.Secondly, it is targeted loans directed at encouraging political development.Their preparation involves carrying out the necessary reforms States.
In some cases, the World Bank can perform the functions that are actually reduced to mediate between other financial institutions or investors and the governments of countries in need of financial support.For example, to obtain the necessary loans to the state in some cases may be due to the need to comply with their economies and political systems of certain criteria that lenders want to see.The World Bank can be linked, so with the support of the governments of the consulting for the implementation of activities aimed at achieving compliance with the national economic and political systems of the necessary criteria.
main directions of activities of the World Bank, both in terms of credit policy and in the area of advisory services are recorded in a separate document - the Strategy of the WBG.This source is activated as a key in the interaction of the World Bank with governments, feels the need for financial assistance.The strategy however, is a framework.Specific activities of the World Bank in the field of assistance to individual state worked out, based on the specifics of its economy and political system.
source of funding
So, we examined some of the key aspects of an institution like the World Bank.Explanation and functions of the organization, we are also known.We will now study this aspect of the activities of the World Bank, as a means to attract funding.Which sources operates this international organization?
There are different ways to attract WB funds for the development and implementation of key functions.For example, with regard to the IBRD loans to developing countries, the appropriate financial resources raised through the sales of bonds with a high rating.Another source of personnel involved in the activities of the World Bank - equity, which introduced the member countries of the organization.This resource is also activated in order to fulfill obligations related to the servicing of debt owed to the World Bank.At the disposal of the World Bank also have a capital reserve in the amount of more than 193 billion US dollars.In practice, according to the organization's resources are not yet used, but it has such a right.
World Bank and other international organizations
So, we studied the key features that characterize the World Bank.Full name and function of the institution, we are also known.Can it be said that the World Bank - a unique institution of its kind?This is partly true.But there are still a number of international organizations, whose functions have definite signs of similarity with the activities of the World Bank.Consider some examples.
In particular, certain features are proximity of the World Bank and OPEC.The fact that a significant percentage of member states of the Organization of Petroleum Exporting Countries, are developing.Options OPEC expressed in particular in promoting the development of their economy through export-established procedures for the appropriate type of raw materials on world markets.
World Bank and IMF
functions and role in the global economy, the World Bank is sufficiently close to those of the IMF (International Monetary Fund).These organizations are also united by the fact that both of them - set up to restore the economies of the world after World War II.Close enough to the principles of building the organizational structure of the World Bank and the IMF.For example, the value of the contribution of a State in the total capital of the institution determines the extent of its impact on the activities of the institution.The similarity of the functions of these organizations can be seen in the fact that they are concentrated around the solution of problems in the promotion of economic development of countries in need of external financial support - for example, due to balance of payments deficit.