Where does the world bank gets money from?

Introduction

Imagine if there is a sudden economic crisis in any country or any climatic disaster occurs and if that country doesn't have enough money to stabilize everything again then at that time a country needs external support to build itself again. That external support in the real world is the "World Bank" but the question arises here "where does the World Bank get money from?".

So in this article, I am gonna cover this topic also with some additional knowledge, please read the full article to get the required information.

How World Bank gets it's money ?

Although the World Bank lends money to many countries, it has many sources to fill its pool again. The World Bank invests its money in various projects which generate money. The country that had taken money from the World Bank also returns with interest so it is another source for the world bank. Further many countries provide funds to the World Bank because it is a low-risk investment. World Bank also takes loans from its member countries

Criteria on which it lends money to the countries

- Will the money help the country's economy

- Will it benefit the poorest people and increase economic opportunities for women?

- Countries' financial policy, past records, political stability

- The country should have a plan to achieve its development goals and also have a plan to reduce poverty

- The political and social environment in the country should be stable, and the government should have transparency and accountability of the government

- The project for which the loan is taken should be a high priority for the country

How it Works

The World Bank provides low-interest loans to developing countries. It also supports through investments in infrastructure, Public administration, health, education, agriculture, and private sector development. World Bank also helps in making policies for a country. They also help countries to become more sustainable.

Achievements of the World Bank

There are various projects on which the World Bank has worked and many more on which it works. Here is a list of a few projects:

- Global Water Security and Sanitation partnership trust fund

- Knowledge for the change program

- South Asian Water Initiative

- Hungary-IFC partnership trust fund

- Global Financial Inclusion Indicators Trust Fund

- Nordic Trust Fund

- The Korea Green Growth Trust Fund

- State Employment and Expenditure for Results

- Afghanistan Reconstruction Trust Fund

- Europe and Central Asia Region Capacity Development

- Japan Social Development Fund

Difference between the IMF and World Bank

The IMF oversees the stability of the world's monetary system, while the World Bank's goal is to reduce poverty by offering assistance to middle-income and low-income countries

About World Bank

The World Bank was established in July 1944 in the USA. Currently, it has 189m members. World Bank is made up of five International organizations that are:

World Bank is made up of five International organizations that are:

IBRD (International Bank for Reconstruction and Development) lends to low and middle-income countries,

IDA (International Development Association) lends to low-income countries,

IFC(International Finance Corporation) lends to the private sector,

MIGA (Multilateral Investment Guarantee Agency) encourages private companies to invest in foreign countries,

ICSID (International Center for Settlement of Investment Disputes) helps private investors and foreign countries work out differences when they don't agree.

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