World Bank Group

With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.

The organization

Since 1947, the World Bank Group has funded over 12,000 development projects, via traditional loans, interest-free credits, and grants.

The International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries. As the largest development bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges.

The International Finance Corporation (IFC), established in 1956 is a member of the World Bank Group (WBG) and the largest global development institution focused on the private sector in developing countries. IFC shares the WBG’s two set out goals to end extreme poverty and promote shared prosperity in every country. IFC’s work is organized around four pillars; Financial Institutions Group, Infrastructure and Natural Resources, Manufacturing, Agribusiness and Services, and Disruptive Technologies and Funds. Drawing on its experience and lessons learned, IFC shares sector best practices to the benefit of its clients – investors in member countries – to ultimately promotes private sector development. In addition, IFC leverages its products and services—as well as products and services of other institutions across the WBG —to create markets that address the current biggest development challenges. IFC is also a leading mobilizer of third-party resources for projects. IFC is present in more than 100 offices in 95 countries worldwide.

The Multilateral Investment Guarantee Agency (MIGA), established in 1988, is a member of the World Bank Group (WBG). MIGA shares the WBG’s two set out goals to end extreme poverty and promote shared prosperity in every country. The Agency’s mandate is to promote cross-border investment in developing countries by providing guarantees (political risk insurance and credit enhancement) to investors and lenders. The guarantees provided by MIGA protect investments against noncommercial risks and can help investors obtain access to funding sources with improved financial terms and conditions. Clients are offered extensive knowledge of emerging markets and of international best practice in environmental and social management. The Agency derives its unique strength from the World Bank Group and from its structure as an international organization whose shareholders include most countries of the world. This enables MIGA to provide an umbrella of deterrence against government actions that could disrupt projects and assist in the resolution of disputes between investors and governments.

Financing mechanisms

Tools are divided into financing instruments and advisory services and analytics and are as follows:

  • Investment Project Financing provides IBRD loan, IDA credit/grant and guarantee financing to governments for activities that create the physical/social infrastructure necessary to reduce poverty and create sustainable development.
  • Development Policy Financing provides IBRD loan, IDA credit/grant and guarantee budget support to governments or a political subdivision for a program of policy and institutional actions to help achieve sustainable, shared growth and poverty reduction.
  • Program-for-Results links disbursement of funds directly to the delivery of defined results, helping countries improve the design and implementation of their own development programs and achieve lasting results by strengthening institutions and building capacity.
  • Trust funds and grants allow scaling up of activities, notably in fragile and crisis-affected situations; enable the Bank Group to provide support when our ability to lend is limited; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that are later mainstreamed into our operations.
  • Private sector options for financing, direct investment and guarantees are provided by MIGA and IFC. Guarantees can also be provided through World Bank (IBRD/IDA) for private sector projects.
  • Customized options and risk management
  • Multiphase Programmatic Approach (MPA) allows countries the flexibility to implement an approach to achieve development objectives in stages when: the development challenge is complex; it would take a longer time to achieve the objectives; it would take a longer time to prepare one large project; the solution needs a broader and comprehensive approach; or when a stop-and-go approach is not feasible. Projects under an MPA program may be financed by Investment Project Financing; or Program-for-Results Financing, or their combination.
  • Advisory Services and Analytics (ASA) are non-lending activities that help external clients or audiences advance a development objective.
  • Reimbursable Advisory Services (RAS) are ASA provided in response to a request from a noncommercial client, and paid for by the client under a legal agreement.

WB Annual report

WB annual report 2020: Supporting Countries in Unprecedented Times

MIGA Brochure

Insuring investments, ensuring opportunities

IFC Annual Report

IFC Annual Report 2020: Transformation

See also