Legal Definitions - World Bank

The World Bank is an international financial institution established in 1945, operating as a specialized agency within the United Nations system. Its core mission is to reduce poverty and support economic development in developing countries worldwide. It achieves this by providing loans, credits, and grants, along with technical assistance, for projects aimed at fostering sustainable economic growth and improving living standards. The World Bank obtains its financial resources from contributions made by its member countries and by raising funds through borrowing on global capital markets. It is also known as the International Bank for Reconstruction and Development (IBRD), which is a key part of the World Bank Group.

Here are some examples of how the World Bank's work applies:

• Imagine a developing nation in Southeast Asia that seeks to modernize its aging port facilities to increase trade efficiency and attract foreign investment. The World Bank could provide a long-term loan to fund the construction and upgrade of the port, including new docks, cargo handling equipment, and improved access roads. This example illustrates the World Bank's role in financing large-scale infrastructure projects that are crucial for economic development and trade, aiming for sustainable growth.

• Consider a country in Sub-Saharan Africa that aims to significantly improve its primary education system, which currently suffers from a lack of trained teachers and inadequate school buildings. The World Bank might offer a credit to support a national program focused on teacher training, curriculum development, and the construction of new, resilient school facilities in rural areas. This demonstrates the World Bank's commitment to investing in human capital, recognizing that education is a fundamental driver of long-term economic development and poverty reduction.

• An island nation in the Pacific is highly vulnerable to rising sea levels and needs to transition away from fossil fuels to more sustainable energy sources. The World Bank could provide a grant or a low-interest loan to help the nation develop a large-scale solar power plant and implement coastal protection measures. This highlights the World Bank's focus on supporting projects that address global challenges like climate change, promoting environmentally sustainable development while also fostering economic resilience.