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Where Does the World Bank Get Its Money?




Evey one about world bank and its work. But can you know where does the world bank get its money.
The World bank's money comes from a number of sources. One of them is "World Bank Group" (WBG).
The World Bank Group is a family of five international organizations that make leveraged loan to developing countries.

Five organizations are:


  • INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) 
  • INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA)
  • INTERNATIONAL FINANCE CORPORATION (IFC)
  • MULTILATERAL INVESTMENT GUARANTEE AGENCY(MIGA)
  • INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES(ICSID)

The first two IBRD and IDA provide maximum funds and loans at preferential rates to member countries as well as grants to the poorest countries.

IBRD FUND


-IBRD raises most of its funds in the world's financial markets and its shareholders (sovereign governments).This has allowed it to provide more than $500 billion in loans to alleviate poverty around the world since 1946, with its shareholder governments paying in about $14 billion in capital.
-IBRD earns income every year from the return on its equity and from the small margin it makes on lending. This pays for World Bank operating expenses, goes into reserves to strengthen the balance sheet.

IDA FUND



-As in past replenishments, the World Bank Group contributed its own resources to IDA, with IBRD and IFC providing more than $600 million.
-Now the global community agreed in December 2016 to accelerate the fight to end extreme poverty through a record financing commitment. The record outcome reflects the substantial joint efforts of more than 50 traditional, emerging, and new partners to stretch their contributions (as of March 2017), as well as the endorsement of IDA’s new hybrid financial model.
-G7 countries accounted for 69 percent of grant equivalent contributions. Contributions from first-time contributors and from former IDA borrowing countries provided a welcome addition to the overall financing pool. These contributions underscore the increasing role emerging economies are playing in the development of poorer countries.

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