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60-589: International Bank may refer to: International Bank for Reconstruction and Development , an international financial institution belonging to the World Bank, formed in 1944 International Bank of Commerce , a bank in Texas, founded in 1966 International Bank (Liberia) , a Liberian bank created in 1960 International Bank of Azerbaijan , a global financial institution, founded in 1992 International Bank of Qatar ,

120-870: A "distinct role" and together form the World Bank—the IBRD, the International Development Association (IDA), the International Finance Corporation (IFC), that "invests in private firms and promotes entrepreneurship", the Multilateral Investment Guarantee Agency (MIGA), that guarantees loans, and the International Centre for Settlement of Investment Disputes (ICSID). Their mission is to "fight poverty and improve living standards for people in

180-540: A "fraction of the $ 72 billion the IMF approved as a credit line to a single nation, Mexico." In the early 2010s, the total of "capital investments in emerging markets from all sources have topped $ 1 trillion annually". According to the Institute of International Finance , in 2011, the "combined net investment of the World Bank and other international development banks and agencies" was about $ 20 billion in 2011. According to

240-793: A 2019 The Economist article, the IBRD is "more controversial" than the International Development Association (IDA) lending arm. With its AAA credit rating, the IBRD can "borrow money cheaply on the international financial markets". Middle-income countries, like Brazil and China, that currently borrow from the IBRD, could "borrow in abundance from foreign investors" on their own. The IBRD provides financial services as well as strategic coordination and information services to its borrowing member countries. The Bank only finances sovereign governments directly, or projects backed by sovereign governments. The World Bank Treasury

300-591: A March 2012 Washington Post article, IBRD was the "original 'world bank'". IBRD field offices were opened in Paris , France, Copenhagen , Denmark, and Prague in the former Czechoslovakia. The IBRD was established with the original mission of financing the reconstruction efforts of war-torn European nations following World War II, with goals shared by the later Marshall Plan . The Bank issued its inaugural loan of $ 250 million ($ 2.6 billion in 2 dollars ) to France in 1947 to finance infrastructure projects. In 1946,

360-481: A carbon-copy manner with little success. This isomorphic mimicry –adopting organizational forms that have been successful elsewhere but that only hide institutional dysfunction without solving it on the home country –can contribute to getting countries stuck in 'capability traps' where the country does not advance in its development goals. An example of this can be seen through some of the criticisms of foreign aid and its success rate at helping countries develop. Beyond

420-512: A community or region". Daphne Greenwood and Richard Holt distinguish economic development from economic growth on the basis that economic development is a "broadly based and sustainable increase in the overall standard of living for individuals within a community", and measures of growth such as per capita income do not necessarily correlate with improvements in quality of life. The United Nations Development Programme in 1997 defined development as increasing people‟s choices. Choices depend on

480-574: A few months after it became operational, Chile sought financial help from the IBRD—the first of the developing countries to do so. Throughout the remainder of the 1940s and 1950s, the Bank-financed projects sought to dam rivers, generate electricity and improve access to water and sanitation. It also invested in France, Belgium, and Luxembourg's steel industry. Following the reconstruction of Europe,

540-558: A government's failure to meet its contractual obligations. The IBRD's Enclave Partial Risk Guarantee covers private projects in member countries of the IDA against sovereign governments' failures to fulfil contractual obligations. The Bank provides an array of financial risk management products including foreign exchange swaps , currency conversions, interest rate swaps , interest rate caps and floors , and commodity swaps . To help borrowers protect against catastrophes and other special risks,

600-684: A major contributor to development economics , asserted that economic development grew to concentrate on the poor regions of the world , primarily in Africa , Asia and Latin America yet on the outpouring of fundamental ideas and models. It has also been argued, notably by Asian and European proponents of infrastructure-based development , that systematic, long-term government investments in transportation , housing , education , and healthcare are necessary to ensure sustainable economic growth in emerging countries. During Robert McNamara's 13 years at

660-421: A panel dataset for each 50 states with unemployment, labor force participation by race, and annual labor market statistics. In addition, for contractionary monetary policy, they utilize the federal funds rate, the short-term interest rates charged to banks. Seguino and Heintz Seguino concludes that the impact of a one percentage point increase in the federal funds rate relative to white and black women's unemployment

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720-457: A preferred rate because of its AAA credit rating. In 2011, it raised US$ 29 billion in capital from bond issues made in 26 different currencies . The Bank offers several financial services and products, including flexible loans, grants, risk guarantees, financial derivatives, and catastrophic risk financing. It reported lending commitments of $ 26.7 billion made to 132 projects in 2011. There are five "closely associated institutions" that each have

780-678: A private sector bank in Qatar, founded in 1956 International Bank of Asia , a bank headquartered in Hong Kong International Bank of Somalia , Mogadishu-based bank which began operations in 2014 See also [ edit ] Awash International Bank , Ethiopian bank, founded in 1994 Basrah International Bank for Investment , Iraqi commercial bank, founded in 1993 Cairo International Bank , Ugandan bank, founded in 1995 Gulf International Bank , Bahraini bank, founded in 1975 International Westminster Bank ,

840-587: A professional industry of highly specialized practitioners. The practitioners have two key roles: one is to provide leadership in policy-making , and the other is to administer policy, programs, and projects. Economic development practitioners generally work in public offices on the state, regional, or municipal level, or in public-private partnerships organizations that may be partially funded by local, regional, state, or federal tax money. These economic development organizations function as individual entities and in some cases as departments of local governments. Their role

900-608: A senior official in the United States Treasury Department . The IBRD member nations did not sponsor a "rival candidate" and Malpass became president, in spite of the fact that he is critical of the role of the IBRD. The International Bank for Reconstruction and Development (IBRD) and International Monetary Fund (IMF) were established by delegates at the Bretton Woods Conference in 1944 and became operational in 1946. According to

960-486: A significant amount of revenue from this source are less accountable to their citizens (they are more autonomous) as they have less pressure to legitimately use those resources. Just as it has been documented for countries with an abundant supply of natural resources such as oil, countries whose government budget consists largely of foreign aid donations and not regular taxes are less likely to have incentives to develop effective public institutions. This in turn can undermine

1020-571: A significant indicator of a country's economic advancement: this perspective is illustrated notably through the Basic Rail Transportation Infrastructure Index (known as BRTI Index) and related models such as the (Modified) Rail Transportation Infrastructure Index (RTI). In an effort to create an indicator that would help measure gender equality , the United Nations has created two measures:

1080-444: A subsidiary of National Westminster Bank which existed from 1913 to 1989 Persia International Bank , London-based bank which commenced trading in 2002 Xiamen International Bank , Chinese joint venture bank, established in 1985 Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title International Bank . If an internal link led you here, you may wish to change

1140-465: Is 0.015 and 0.043, respectively One growing understanding in economic development is the promotion of regional clusters and a thriving metropolitan economy . In today's global landscape, location is vitally important and becomes a key in competitive advantage . International trade and exchange rates are key issues in economic development. Currencies are often either under-valued or over-valued , resulting in trade surpluses or deficits. Furthermore,

1200-602: Is an international financial institution , established in 1944 and headquartered in Washington, D.C. , United States; it is the lending arm of World Bank Group. The IBRD offers loans to middle-income developing countries . It is the first of five member institutions that compose the World Bank Group. The initial mission of the IBRD in 1944, was to finance the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm,

1260-545: 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. The Bank and IDA operate with a staff of approximately 10,000 employees. On 9 April 2019, United States President Donald Trump nominated David Malpass as the World Bank Group's president. Malpass had served as one of President Trump's economic advisers and as

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1320-400: Is important to not expect that particular economic development programs be able to fix many problems at once as that would be establishing unsurmountable goals for them that are highly unlikely they can achieved. Any development policy should set limited goals and a gradual approach to avoid falling victim to something Prittchet, Woolcock and Andrews call 'premature load bearing'. Many times

1380-522: Is owned and governed by its 189 member states, with each country represented on the Board of Governors. The IBRD has its executive leadership and staff which conduct its normal business operations. The Bank's member governments are shareholders which contribute 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 at

1440-605: Is the division of the IBRD that manages the Bank's debt portfolio of over $ 100 billion and financial derivatives transactions of $ 20 billion. The Bank offers flexible loans with maturities as long as 30 years and custom-tailored repayment scheduling. The IBRD also offers loans in local currencies . Through a joint effort between the IBRD and the International Finance Corporation , the Bank offers financing to subnational entities either with or without sovereign guarantees . For borrowers needing quick financing for an unexpected change,

1500-547: Is to seek out new economic opportunities and retain their existing business wealth. There are numerous other organizations whose primary function is not economic development that work in partnership with economic developers. They include the news media, foundations, utilities, schools, health care providers, faith-based organizations, and colleges, universities, and other education or research institutions. There are various types of macroeconomic and sociocultural indicators or "metrics" used by economists and geographers to assess

1560-429: Is typically associated with improvements in a variety of areas or indicators (such as literacy rates , life expectancy , and poverty rates) , that may be causes of economic development rather than consequences of specific economic development programs. For example, health and education improvements have been closely related to economic growth, but the causality with economic development may not be obvious. In any case, it

1620-663: The Global Policy , journal, While the IBRD and the IDA historically prioritized funding infrastructure projects, since the 1990s, the Bank has directed less lending to infrastructure projects in favour of other development projects such as fighting climate change , eradicating poverty and ensuring good governance. The IBRD finances its activities from the shares its members hold, as well as borrowing on international capital markets by issuing World Bank bonds . The Bank raised US$ 54.0 billion worth of capital in fiscal 2019 from bonds issued in 27 different currencies . Since 1959,

1680-669: The Gender-Related Development Index (GDI) and the Gender Empowerment Measure (GEM). These indicators were first introduced in the 1995 UNDP Human Development Report. Other factors include the inflation rate, investment level and national debt , birth and death rates, life expectancy , morbidity , education levels (measured through literacy and numeracy rates), housing , social services like hospitals , health facilities , clean and safe drinking water , schools (measured by

1740-677: The International Development Association (IDA), 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

1800-540: The post-war period of reconstruction initiated by the United States. In 1949, during his inaugural speech, President Harry Truman identified the development of undeveloped areas as a priority for the West: There have been several major phases of development theory since 1945. Alexander Gerschenkron argued that the less developed the country is at the outset of economic development (relative to others),

1860-496: The 1960s, it has increasingly focused on poverty reduction . Whereas economic development is a policy intervention aiming to improve the well-being of people, economic growth is a phenomenon of market productivity and increases in GDP ; economist Amartya Sen describes economic growth as but "one aspect of the process of economic development". The precise definition of economic development has been contested: while economists in

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1920-539: The 1980s pushing an agenda of free trade and removal of import substitution industrialization policies. In economics, the study of economic development was born out of an extension to traditional economics that focused entirely on the national product , or the aggregate output of goods and services. Economic development was concerned with the expansion of people's entitlements and their corresponding capabilities, such as morbidity , nourishment , literacy , education , and other socio-economic indicators. Borne out of

1980-413: The 20th century viewed development primarily in terms of economic growth , sociologists instead emphasized broader processes of change and modernization . Development and urban studies scholar Karl Seidman summarizes economic development as "a process of creating and utilizing physical, human, financial, and social assets to generate improved and broadly shared economic well-being and quality of life for

2040-501: The Bank's mandate has transitioned to eradicating poverty around the world. In 1960, the International Development Association (IDA) was established to serve as the Bank's concessional lending arm and provide low and no-cost finance and grants to the poorest of the developing countries as measured by gross national income per capita. The IBRD is restricted in its borrowing, as it cannot provide loans in competition with private capital; IBRD loans have to be tied to specific projects; and

2100-964: The IBRD in their governance and operations, were established by countries that were not member nations of the WBG. This included the Inter‐American Development Bank (IDB), the African Development Bank (AfDB), the Asian Development Bank (ADB), the Development Bank of Latin America and the Caribbean (CAF), and the Islamic Development Bank (IsDB). Both the CAF and IsDB are "primarily owned and controlled by borrower countries." In

2160-456: The IBRD operates a Deferred Drawdown Option which serves as a line of credit with features similar to the Bank's flexible loan program. Among the World Bank Group's credit enhancement and guarantee products, the IBRD offers policy-based guarantees to cover countries' sovereign default risk, partial credit guarantees to cover the credit risk of a sovereign government or subnational entity, and partial risk guarantees to private projects to cover

2220-432: The IBRD will normally only finance the direct foreign exchange costs of a project. At the time of its creation, the IBRD was the only Multilateral Development Bank . During the period of decolonization —the mid‐1950s to the mid‐1970s—several MDBs were created—the International Finance Corporation , the International Development Association . They were both WBG members. During this period other MDBs that were similar to

2280-631: The IBRD, which is backed by world governments has had a triple-A credit rating , which allows it to borrow capital at lower rates. According to a 2015 article, commissioned by the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development—also known as the Group of 24 (G-24)—multilateral development banks (MDBs)—such as the IBRD—"represent one of the most successful types of international organization created in

2340-452: The MDBs a "privileged position to be first in line for repayment, should a country face financial restrictions." The bank also generates income from the return on its equity and the small margins on the loans. As the IBRD does not seek profit, it transfers part of its excess income to the IDA ($ 259 million in fiscal 2019). In 2011, the IBRD loaned about US$ 26 billion, which represented just

2400-409: The World Bank under McNamara's tenure "sold" states poverty reduction "through a mixture of persuasion and coercion." The development of a country has been associated with different concepts but generally encompasses economic growth through higher productivity, political systems that represent as accurately as possible the preferences of its citizens, The extension of rights to all social groups and

2460-481: The World Bank, he introduced key changes, most notably, shifting the Bank's economic development policies toward targeted poverty reduction. Before his tenure at the World Bank, poverty did not receive substantial attention as part of international and national economic development; the focus of development had been on industrialization and infrastructure. Poverty also came to be redefined as a condition faced by people rather than countries. According to Martha Finnemore,

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2520-434: The attainment of a standard of living equivalent to that of industrialized countries . Economic development can also be considered as a static theory that documents the state of an economy at a certain place. According to Schumpeter and Backhaus (2003), the changes in this equilibrium state documented in economic theory can only be caused by intervening factors coming from the outside. Economic development originated in

2580-480: The backdrop of Keynesian economics (advocating government intervention), and neoclassical economics (stressing reduced intervention), with the rise of high-growth countries ( Singapore , South Korea , Hong Kong ) and planned governments ( Argentina , Chile , Sudan , Uganda ), economic development and more generally development economics emerged amidst these mid-20th century theoretical interpretations of how economies prosper. Also, economist Albert O. Hirschman ,

2640-465: The bank offers a Catastrophe Deferred Drawdown Option to provide financing after a natural disaster or declared state of emergency. It also issues catastrophe bonds which transfer catastrophic risks from borrowers to investors. The IBRD reported $ 23.2 billion in lending commitments for 100 projects in fiscal year 2019. The top 10 borrowers were India, Indonesia, Jordan, Egypt, Argentina, China, Morocco, Turkey, Ukraine and Colombia. The most supported sector

2700-416: The country's efforts to develop. In its broadest sense, policies of economic development encompass three major areas: Contractionary monetary policy is a tool used by central banks to slow down a country's economic growth. An example would be raising interest rates to decrease lending. In the United States, the use of contractionary monetary policy has increased women's unemployment. Seguino and Heintz uses

2760-489: The developing world." By 2018, the World Bank Group was "one of the world's largest sources of funding and knowledge for developing countries." Of the five institutions, the IBRD and the IDA are the World Bank's two largest units. When a country reaches a GDP per person over US$ 1,145, they are no longer eligible for IDA financial support. For example, of the BRIC countries, China was no longer eligible in 1999 and by 2014, neither

2820-629: The distance learners must travel to reach them), ability to use hard infrastructure (railways, roads, ports, airports, harbours, etc.), and telecommunications and other soft infrastructure like the Internet . The Gender Empowerment Measure (GEM) focuses on aggregating various indicators that focus on capturing the economic, political, and professional gains made by women. The GEM is composed of just three variables: income earning power, share in professional and managerial jobs, and share of parliamentary seats. The Gender Development Index (GDI) measures

2880-569: The early 1990s, European nations established the European Bank of Reconstruction and Development (EBRD) and expanded European Investment Bank , to foster European integration and to assist post‐communist countries to transform their economies to become more market‐oriented. By 2012, according to The Post , IBRD was using "its AAA credit rating to sell bonds at interest rates close to those of U.S. Treasury bonds." It loaned money to developing nations, such as China and Brazil. According to

2940-663: The economic development goals of specific countries cannot be reached because they lack the State's capabilities to do so. For example, if a nation has little capacity to carry out basic functions like security and policing or core service delivery it is unlikely that a program that wants to foster a free-trade zone (special economic zones) or distribute vaccinations to vulnerable populations can accomplish their goals. This has been something overlooked by multiple international organizations, aid programs and even participating governments who attempt to carry out 'best practices' from other places in

3000-543: The growth of globalization has linked economic development with trends on international trade and participation in global value chains (GVCs) and international financial markets. The last financial crisis had a huge effect on economies in developing countries. Economist Jayati Ghosh states that it is necessary to make financial markets in developing countries more resilient by providing a variety of financial institutions . This could also add to financial security for small-scale producers. Economic development has evolved into

3060-448: The incentive compatibility problems that can happen to foreign aid donations –that foreign aid granting countries continue to give it to countries with little results of economic growth but with corrupt leaders that are aligned with the granting countries' geopolitical interests and agenda –there are problems of fiscal fragility associated to receiving an important amount of government revenues through foreign aid. Governments that can raise

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3120-481: The link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=International_Bank&oldid=901389743 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages International Bank for Reconstruction and Development The International Bank for Reconstruction and Development ( IBRD )

3180-428: The more likely certain conditions are to occur. Hence, all countries do not progress similarly. From the 1940s to the 1960s the state played a large role in promoting industrialization in developing countries, following the idea of modernization theory . This period was followed by a brief period of basic needs development focusing on human capital development and redistribution in the 1970s. Neoliberalism emerged in

3240-448: The opportunities to get them and the proper functionality of institutions and organizations that can attend more technically and logistically complex tasks (i.e. raise taxes and deliver public services). These processes describe the State's capabilities to manage its economy, polity, society and public administration. Generally, economic development policies attempt to solve issues in these topics. With this in mind, economic development

3300-467: The people in question and their nation. The UNDP indicates four chief factors in development, especially human development, which are empowerment, equity, productivity, and sustainability. Mansell and Wehn state that economic development has been understood by non-practitioners since the World War II to involve economic growth, namely the increases in per capita income , and (if currently absent)

3360-563: The post-World War II era." By October 2015, although the WBG—with its lending arms—was the only "global institution, there were more than twenty operational 20 MDBs in the world. In 2016, the Asian Infrastructure Investment Bank and BRICs New Development Bank began operations. Like other multilateral development banks, (MDBs), the IBRD has a preferred credit treatment (PCT), through which borrowers grant

3420-453: The relative economic advancement of a given region or nation. The World Bank 's "World Development Indicators" are compiled annually from officially recognized international sources and include national, regional and global estimates. GDP per capita is gross domestic product divided by mid-year population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidizes not included in

3480-415: The value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Median income is related to real gross national income per capita and income distribution . European development economists have argued that the existence of modern transportation networks- such as high-speed rail infrastructure constitutes

3540-404: Was India. 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

3600-626: Was Public Administration. 38°53′56″N 77°02′33″W  /  38.8990°N 77.0425°W  / 38.8990; -77.0425 [REDACTED]   World Bank Group Economic development The term has been used frequently in the 20th and 21st centuries, but the concept has existed in the West for far longer. " Modernization ", " Westernization ", and especially " industrialization " are other terms often used while discussing economic development. Historically, economic development policies focused on industrialization and infrastructure ; since

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