Functions of World Bank

The World Bank being an international financial institution not only provides financial aid to developing countries but also provides advice and promotes research for advancing those economies around the world. The World Bank, like any other institution, has a role to play in the world community. The mission statement aims to alleviate poverty and share prosperity. The World Bank functions and takes on tasks, projects, initiatives keeping the goals and objectives in mind. The smooth functioning of the World Bank is possible because of the 5 organizations under the World Bank group who manage and complement each other.

The World Bank Headquarters

The Headquarters of the World Bank is located in Washington D.C. The World Bank was created from the Bretton Woods Conference in 1944. In that Conference, the United Kingdom and the United States held the most power and dominated and influenced negotiations strongly. This also explains why the World Bank Headquarters is situated in the US. 

Moreover, the World Bank also has the Global Development learning Unit (GDLU) which has partnered with 120 plus learning centers, spread across 80 countries. The World Bank has 100 plus offices in the member nations. 10,000 plus staff have been posted to the developing nations to carry on the functions of the World Bank as a global institution. 

The World Bank President

The President of the World Bank takes the load to plan and chair meetings. Moreover, U.S. citizens have always been holding the position of president of the World Bank. This explains the power and influence of the U.S. on the World Bank. The largest shares of the Bank are held by the United States. The last nominee selected for the Position is David Malpass, in the year 2019, and is still serving his tenure. The first President of the World Bank, selected in the year 1946 was Eugene Meyer. 

The Presidents mostly serve for a tenure of five years. From the nominated candidates for the position of the World Bank president, the selection is taken up by a board. This board consists of executive directors of the World Bank. 

Role and Functions of the World Bank

• The primary role and function of the World Bank are to provide financial advice, loans, and research, and so on to the developing nations. The major function is to maintain that equilibrium of payments and investments, across nations, through the medium of the World Bank
• The International Bank for Reconstruction and Development (IBRD) provides loans and funds to those middle-income or low-income countries that are creditworthy 
• The International Development Association (IDA) provides loans free from interests also known as credits. This type of loan is issued only to the poorest of the nations. This is because such nations do not have the capacity to pay huge interest on loans. The role of the World Bank is to look after all the member countries, especially the poorest of the poor
• The International Finance Corporation (IFC) guides as well as funds the private sector of different nations to aid the growth and development of a developing nation. This is a means to contribute through a medium that can work within the nation towards productive purposes
• The Multilateral Investment Guarantee Agency (MIGA) provides a direction to investments by guiding them towards initiatives or projects of developing nations

The World Bank also has an important function to settle any monetary or investment dispute within member nations through the International Centre for Settlement of Investment Disputes (ICSID).

Conclusion

Understanding the roles and functions of the World Bank has been dealt with thoroughly. Details relating to the World Bank Headquarters and the World Bank President/Presidents have also been discussed. The various roles and functions of the financial institution have been discussed in great detail. The roles of various organizations under the aegis of the World Bank, like IDA, IFC, so on, have been elaborated.