World Bank Group

A group of the World Bank (or an international bank) is the name of a multilateral credit institution that includes several financial institutions that are closely interrelated. Improving the living standards of states that are developed with the financial support of developed countries is their common goal.

After the ratification of the Bretton Woods Agreement by the majority of the participating countries, in 1945, on December 27, the World Bank was established.

The World Bank Group began working in 1946, June 25. In 1947, on May 9, the first loan was issued. To restore the economy, which fell into decay after the hostilities, France received two hundred and fifty million dollars.

The task of the World Bank Group is to promote permanent economic growth, which in developing countries should lead to a reduction in poverty. All this is done with the help of development programs and long-term financing to increase production. Structural changes will be priority for him: investments in infrastructure, health and education reform, privatization, trade liberalization. All loans provided by the World Bank Group are guaranteed by the relevant government and are provided in order to implement specific projects, except in special circumstances.

For the recipient country, the main advantage of cooperation with a group of the World Bank is that other organizations give inflated interest rates on loans, and the international bank gives significantly lower interest.

IBRD, or the World Bank for Reconstruction and Development, is considered the main credit institution of the World Bank, it is a specialized agency of the United Nations, an interstate investment institution. IBRD is located in Washington.

IBRD relies on capital, which was formed by the participating countries. It is able to accumulate funds of the world market and capital and issue loans to states that have limited access to this market, thus fulfilling the role of intermediary. Loans can be issued either directly to the government, or under its guarantee.

IBRD contributes to human development; Carries out financial programs, works with the private sector, infrastructure; Promotes social development and ecology; Struggles with poverty, is engaged in economic management.

World banks provide financial support to states using the funds invested in them.

A different number of countries participate in the five financial institutions of the World Bank. One hundred and eighty-four states are participants of the International Bank for Reconstruction and Development. That is, it includes almost all countries in the world. One hundred and sixty-three states are members of the International Development Association. One hundred seventy-five states - to the International Finance Corporation.

Russia is a party to the World Bank Group, which has all rights, became in the year nineteen ninety-two, in June.

In order to make strategic decisions, according to the charter of the World Bank, it is necessary to have at least eighty-five percent of the votes of shareholders. The largest countries of the Interstate Bank are France, Great Britain, Germany, Japan and the United States. The framework document, used as a basis for cooperation, is updated by the World Bank Group every 3 years.

Allow the bank's programs related to the provision of loans, consulting and analytical services, this strategy helps, taking into account the specific development goals of a certain borrowing country.