What is the World Bank Group
Content
What is the World Bank Group?
The World Bank is a public international financial institution created at the end of World War II whose mission is to provide loans and credits to developing countries for projects that alleviate poverty and promote social and economic development. The Bank’s lending to governments is done through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). IBRD loans are made with favorable interest rates and rather long repayment schedules. IDA credits are extended to the poorest of the poor countries (defined largely in terms of per capita income) at no interest, with very relaxed loan repayment schedules. The IBRD and IDA also provide loans and guarantees in support of private sector projects. However, the majority of Bank financing for private sector operations is done through the International Finance Corporation (IFC) and the Multilateral International Guarantee Agency (MIGA). Thus, the World Bank Group consists of IBRD, IDA, IFC and MIGA. In general IBRD and IDA make loans for public sector projects, and IFC and MIGA promote private sector investment. IBRD and IDA share the same staff, and must meet the World Bank’s policies and procedures. The IFC and MIGA have recently adopted their own policies and procedures. At this time, only IBRD and IDA are subject to the jurisdiction of the Inspection Panel. For the past several years, there have been negotiations and commitments to extend the Inspection Panel to IFC and MIGA. In the meantime, however, a Compliance Advisor/Ombudsman (CAO) function for IFC and MIGA was created and began operation in July 1999. The CAO is an important step toward greater accountability in the private sector side of the World Bank Group operations. It was designed in part to address the concerns of the local communities who are adversely affected by IFC and MIGA-supported projects and to advise senior management. The CAO reports directly to the President of the Bank. The World Bank Group is owned and governed by national governments, which become members by contributing to its capital stock. To join IBRD, countries must first be members of the International Monetary Fund (IMF). The amount of shares and voting power each member is allocated reflects its quota in the IMF. There are 181 member governments of IBRD and 160 members of IDA. These countries are represented by a Board of Executive Directors, which has 24 members. Voting power is determined by shares, so the more economically powerful countries control a greater percentage of the vote. For instance, the United States as the largest shareholder controls approximately 17% of the vote. The Board must approve all projects financed by the Bank that are proposed by the Bank Management. The President of the Bank is appointed by the Board, and also serves as Chairman of the Board. The World Bank Group is a multilateral development bank that provides loans and credits to developing countries to stimulate social and economic development. Although the Bank's mandate is poverty alleviation, it often provides financial support to projects that have significant negative social and environmental impacts. There are two main parts to the World Bank Group. The first component is the World Bank, which provides project-oriented loans and credits to developing country governments through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) but also exerts enormous influence through macroeconomic
policy prescriptions, research and technical advice. In recent years, the World Bank has worked closely with the International Monetary Fund (IMF) in designing the financial sector reform and economic bailouts for economic crises in Indonesia, Thailand, Korea, Russia, Argentina and Brazil. Structural and The second component consists of the International Finance Corporation (IFC) and the Multilateral International Guarantee Agency (MIGA), which provide funding for private sector projects.
International Financial Institutions Announcements, Press Releases and Recent Updates
• • • • • March 2011: Getting the International Finance Corporation to respect and protect human rights. February 2011: World Bank Inspection Panel under threat. January 2011: Please join CIEL for Human Rights and Private Sector Investment: Views from the Global South, February 1st, 2011. October 2010: CIEL is organizing and co-organizing several panel sessions during the World Bank Annual Meetings the week of October 4th, 2010 October 2010: CIEL and the Inspection Panel invite you to attend a meeting with the Inspection Panel during the World Bank Annual Meetings, Wednesday, October 6th, at CIEL (1350 Connecticut Ave NW, Suite 1100), from 12:30 to 2:00 October 2010: CIEL will host a Civil Society meeting to discuss the IFC's review of its Policy and Performance Standards will occur Wednesday, October 6th, from 5:00 to 6:30 at CIEL - 1350 Connecticut Avenue NW, Suite 1100. September 2010: Civil society organizations demand reform of World Bank Group lending to private corporations August 2010: CIEL submits Palm Oil Strategy Review Comments to the World Bank Group. March 2010: Civil Society organizations from around the world call on the IFC to strengthen its environmental and social standards to ensure that its loans to private corporations benefit local communities and do not adversely impact the environment and human rights. November 2009: Please join us for a discussion about the International Finance Corporation’s investments in Indonesian palm oil.
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Co-hosted by the World Resources Institute and the Center for International Environmental Law November 2009: Proposed Ex-Im Bank carbon policy undermines US Administration's commitment to phase-out fossil fuels. Read more in civil society letter from CIEL and others. November 2009: CIEL and Bretton Woods Project formally request that the U.N. Special Representative on Business and Human Rights help ensure that the Performance Standards of the International Finance Corporation provide a robust framework for securing human rights. October 2009: CIEL and colleagues submit suggestions for strengthening the accountability mechanism of the African Development Bank, the Independent Review Mechanism. February 2009: Investigation Finds that OPIC Denied that Project-Affected Community is Indigenous, Did Not Comply with its Policies February 2009: The International Finance Corporation Improperly Interferes in Pending Investigation on Biofuels. November 2008: CIEL prepares analysis of the Asian Development Bank's proposed "Country Systems Strategy" for civil society consultations on the ADB's proposed "Safeguard Policy Statement. October 2008: Special Representative of the UN Secretary-General on business & human rights, John Ruggie, thanks CIEL and colleagues for the "extensive analysis" in their submission, "The International Finance Corporation's performance standards and the Equator Principles: respecting human rights and remedying violations?" August 2008: CIEL and colleagues find that the International Finance Corporation and leading international banks do not have a robust framework for minimizing the social risks posed by their projects. April 2008: Civil Society Organizations urge World Bank President Zoellick to reform process for selecting panel members to the World Bank accountability mechanism April 2008: CIEL participates in event on World Bank-Financed Water Projects on 15 April 2008. April 2008: CIEL discusses the World Bank's Country Systems approach at the World Bank Spring Meetings April 2008: CIEL urges Inter-American Development Bank Executive Directors to ensure much-needed reform of the IDB Accountability Mechanism
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March 2008: Victims of Biofuel: Nicaraguan Communities Affected by IFC-Funded Ethanol Plant File Complaint December 2007: CIEL publishes The Citizen's Guide to the OPIC Accountability Mechanism to help give local communities affected by OPIC-supported projects a voice in the development process May 2007: CIEL releases in-depth legal analysis of the Global Environment Facility’s new, controversial Resource Allocation Framework, which currently applies to the GEF climate and biological diversity focal areas. March 2007: CIEL analyzes the human rights responsibilities of International Financial Institutions at a public hearing held at the Inter-American Commission of Human Rights November 2006: CIEL and NGO colleagues comment on Environment, Health and Safety Guidelines of the World Bank On March 28, CIEL and WCL will host a conference on International Financial Institutions and International Law ECA Watch Coalition submits comments regarding the implementation of the OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits Action Alert: CIEL's analysis of the World Bank's proposed country systems approach identifies nearly 150 areas of policy weakening and 20 areas of strengthening Civil society organizations challenge the latest Revised Draft OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits of the Organization for Economic Cooperation and Development (November 2003) CIEL expresses concerns over the proposed Baku-Tblisi-Ceyhan oil pipeline project to the International Finance Corporation and the European Bank for Reconstruction and Development (November 2003) The Inspection Panel: Accountability and Participation at the World Bank; Remarks of Daniel B. Magraw, President Center for International Environmental Law, as presented at the Annual Meetings of the World Bank Group and International Monetary Fund on September 22, 2003 in Dubai, UAE (October 2003) Responding to a complaint from Pehuenche Communities in southern Chile, the CAO of the World Bank's International Finance Corporation has recently released its Assessment Report of IFC's involvement in the Pangue/Ralco Hydro-electric Project (June 2003) Civil society organizations around the world call on the International Commission on Large Dams to incorporate the recommendations of the World Commission on Dams into their new Code of Ethics (June, 2003)
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CIEL Comments on the Draft "Procedures to Submit Objections Concerning the Japan Bank for International Cooperation's Guidelines for Confirmation of Environmental and Social Considerations" (March, 2003) CIEL questions President of Inter-American Development Bank over systematic problems with the structure and procedures of the Independent Investigation Mechanism (February, 2003) Secretive World Bank Tribunal Bans Public and Media Participation in Bechtel Lawsuit Over Access To Water (February, 2003) CIEL comments on the the Draft "Review of IFC's Safeguard Policies" (November, 2002) Police arrest Environmental Activist, Opposition Leader in Tanzania (November, 2001) Environmental and human rights NGOs call for independent review of Forced Displacement and Alleged Massacre at Bulyanhulu, Tanzania (September, 2001) Stop the World Bank's efforts to help Shell drill for oil in the politically volatile and environmentally sensitive Niger Delta (May, 2001) World Bank Weakening Involuntary Resettlement Policy; learn about the policy to protect communities from displacement! (April, 2001) Read the open letter to the President of the World Bank Concerning the International Advisory Group (February, 2001) Environmentalists Express Concern Regarding World Bank Resettlement Policy Draft (February, 2001) Environmentalists Express Concern as World Bank Announces Watchdog for ChadCameroon Pipeline (February, 2001) World Bank Weakening Resettlement Policy - click here for update, access to the internal draft policy, and what you can do (January, 2001) NGO comments to the Draft Terms of Reference for the International Advisory Group (Chad Cameroon Pipeline) (October, 2000) Profiling Problem Projects - Making the Case for Change at the International Finance Corporation (September, 2000) VICTORY! World Bank Effort to Support China's Population Transfer Into Tibet is Defeated! (August, 2000)
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All Gloves Are OFF! The Final Stretch in the Campaign to Stop the World Bank's China-Tibet resettlement Project. (June 1, 2000) Chad Military Threatens Citizens with Death for Opposing a Controversial Oil Pipeline Set for Approval by World Bank (June 1, 2000) More than 10 Million Poor Displaced by World Bank Projects Activists Demand Moratorium, Reparations (April 13, 2000) Researcher Injured in While Investigating Controversial World Bank Project in China (August 1999) World Bank Board Approves Controversial Proposal To Change Inspection Panel (April 1999) Environmentalists Welcome New Environmental Watchdog At IFC And MIGA (April 1999) Yacyreta and Singrauli Update: Action Needed Now (May 1998) Claimants Address World Bank Board of Executive Directors (February 1998) International Lawyers Worldwide Call For Strengthening of the Inspection Panel (January 1998) World Bank Board of Executive Directors Votes on Singrauli and Itaparica Claims (September 1997) Independent Review Confirms IFC Covered Up Social and Environmental Impacts from Chilean Dam Project (July 1997) Villagers Challenge World Bank Role in Thermal Power Projects in Singrauli, India (April 1997) Report on Controversial Chilean Dam Submitted to World Bank President (April 1997) World Bank Authorizes Inspection into Massive Dam Project in Argentina and Paraguay (March 1997)
The World Bank is a public international financial institution created at the end of World War II whose mission is to provide loans and credits to developing countries for projects that alleviate poverty and promote social and economic development. The Bank’s lending to governments is done through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). IBRD loans are made with favorable interest rates and rather long repayment schedules. IDA credits are extended to the poorest of the poor countries (defined largely in terms of per capita income) at no interest, with very relaxed loan repayment schedules. The IBRD and IDA also provide loans and guarantees in support of private sector projects. However, the majority of Bank financing for private sector operations is done through the International Finance Corporation (IFC) and the Multilateral International Guarantee Agency (MIGA). Thus, the World Bank Group consists of IBRD, IDA, IFC and MIGA. In general IBRD and IDA make loans for public sector projects, and IFC and MIGA promote private sector investment. IBRD and IDA share the same staff, and must meet the World Bank’s policies and procedures. The IFC and MIGA have recently adopted their own policies and procedures. At this time, only IBRD and IDA are subject to the jurisdiction of the Inspection Panel. For the past several years, there have been negotiations and commitments to extend the Inspection Panel to IFC and MIGA. In the meantime, however, a Compliance Advisor/Ombudsman (CAO) function for IFC and MIGA was created and began operation in July 1999. The CAO is an important step toward greater accountability in the private sector side of the World Bank Group operations. It was designed in part to address the concerns of the local communities who are adversely affected by IFC and MIGA-supported projects and to advise senior management. The CAO reports directly to the President of the Bank. The World Bank Group is owned and governed by national governments, which become members by contributing to its capital stock. To join IBRD, countries must first be members of the International Monetary Fund (IMF). The amount of shares and voting power each member is allocated reflects its quota in the IMF. There are 181 member governments of IBRD and 160 members of IDA. These countries are represented by a Board of Executive Directors, which has 24 members. Voting power is determined by shares, so the more economically powerful countries control a greater percentage of the vote. For instance, the United States as the largest shareholder controls approximately 17% of the vote. The Board must approve all projects financed by the Bank that are proposed by the Bank Management. The President of the Bank is appointed by the Board, and also serves as Chairman of the Board. The World Bank Group is a multilateral development bank that provides loans and credits to developing countries to stimulate social and economic development. Although the Bank's mandate is poverty alleviation, it often provides financial support to projects that have significant negative social and environmental impacts. There are two main parts to the World Bank Group. The first component is the World Bank, which provides project-oriented loans and credits to developing country governments through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) but also exerts enormous influence through macroeconomic
policy prescriptions, research and technical advice. In recent years, the World Bank has worked closely with the International Monetary Fund (IMF) in designing the financial sector reform and economic bailouts for economic crises in Indonesia, Thailand, Korea, Russia, Argentina and Brazil. Structural and The second component consists of the International Finance Corporation (IFC) and the Multilateral International Guarantee Agency (MIGA), which provide funding for private sector projects.
International Financial Institutions Announcements, Press Releases and Recent Updates
• • • • • March 2011: Getting the International Finance Corporation to respect and protect human rights. February 2011: World Bank Inspection Panel under threat. January 2011: Please join CIEL for Human Rights and Private Sector Investment: Views from the Global South, February 1st, 2011. October 2010: CIEL is organizing and co-organizing several panel sessions during the World Bank Annual Meetings the week of October 4th, 2010 October 2010: CIEL and the Inspection Panel invite you to attend a meeting with the Inspection Panel during the World Bank Annual Meetings, Wednesday, October 6th, at CIEL (1350 Connecticut Ave NW, Suite 1100), from 12:30 to 2:00 October 2010: CIEL will host a Civil Society meeting to discuss the IFC's review of its Policy and Performance Standards will occur Wednesday, October 6th, from 5:00 to 6:30 at CIEL - 1350 Connecticut Avenue NW, Suite 1100. September 2010: Civil society organizations demand reform of World Bank Group lending to private corporations August 2010: CIEL submits Palm Oil Strategy Review Comments to the World Bank Group. March 2010: Civil Society organizations from around the world call on the IFC to strengthen its environmental and social standards to ensure that its loans to private corporations benefit local communities and do not adversely impact the environment and human rights. November 2009: Please join us for a discussion about the International Finance Corporation’s investments in Indonesian palm oil.
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Co-hosted by the World Resources Institute and the Center for International Environmental Law November 2009: Proposed Ex-Im Bank carbon policy undermines US Administration's commitment to phase-out fossil fuels. Read more in civil society letter from CIEL and others. November 2009: CIEL and Bretton Woods Project formally request that the U.N. Special Representative on Business and Human Rights help ensure that the Performance Standards of the International Finance Corporation provide a robust framework for securing human rights. October 2009: CIEL and colleagues submit suggestions for strengthening the accountability mechanism of the African Development Bank, the Independent Review Mechanism. February 2009: Investigation Finds that OPIC Denied that Project-Affected Community is Indigenous, Did Not Comply with its Policies February 2009: The International Finance Corporation Improperly Interferes in Pending Investigation on Biofuels. November 2008: CIEL prepares analysis of the Asian Development Bank's proposed "Country Systems Strategy" for civil society consultations on the ADB's proposed "Safeguard Policy Statement. October 2008: Special Representative of the UN Secretary-General on business & human rights, John Ruggie, thanks CIEL and colleagues for the "extensive analysis" in their submission, "The International Finance Corporation's performance standards and the Equator Principles: respecting human rights and remedying violations?" August 2008: CIEL and colleagues find that the International Finance Corporation and leading international banks do not have a robust framework for minimizing the social risks posed by their projects. April 2008: Civil Society Organizations urge World Bank President Zoellick to reform process for selecting panel members to the World Bank accountability mechanism April 2008: CIEL participates in event on World Bank-Financed Water Projects on 15 April 2008. April 2008: CIEL discusses the World Bank's Country Systems approach at the World Bank Spring Meetings April 2008: CIEL urges Inter-American Development Bank Executive Directors to ensure much-needed reform of the IDB Accountability Mechanism
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March 2008: Victims of Biofuel: Nicaraguan Communities Affected by IFC-Funded Ethanol Plant File Complaint December 2007: CIEL publishes The Citizen's Guide to the OPIC Accountability Mechanism to help give local communities affected by OPIC-supported projects a voice in the development process May 2007: CIEL releases in-depth legal analysis of the Global Environment Facility’s new, controversial Resource Allocation Framework, which currently applies to the GEF climate and biological diversity focal areas. March 2007: CIEL analyzes the human rights responsibilities of International Financial Institutions at a public hearing held at the Inter-American Commission of Human Rights November 2006: CIEL and NGO colleagues comment on Environment, Health and Safety Guidelines of the World Bank On March 28, CIEL and WCL will host a conference on International Financial Institutions and International Law ECA Watch Coalition submits comments regarding the implementation of the OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits Action Alert: CIEL's analysis of the World Bank's proposed country systems approach identifies nearly 150 areas of policy weakening and 20 areas of strengthening Civil society organizations challenge the latest Revised Draft OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits of the Organization for Economic Cooperation and Development (November 2003) CIEL expresses concerns over the proposed Baku-Tblisi-Ceyhan oil pipeline project to the International Finance Corporation and the European Bank for Reconstruction and Development (November 2003) The Inspection Panel: Accountability and Participation at the World Bank; Remarks of Daniel B. Magraw, President Center for International Environmental Law, as presented at the Annual Meetings of the World Bank Group and International Monetary Fund on September 22, 2003 in Dubai, UAE (October 2003) Responding to a complaint from Pehuenche Communities in southern Chile, the CAO of the World Bank's International Finance Corporation has recently released its Assessment Report of IFC's involvement in the Pangue/Ralco Hydro-electric Project (June 2003) Civil society organizations around the world call on the International Commission on Large Dams to incorporate the recommendations of the World Commission on Dams into their new Code of Ethics (June, 2003)
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CIEL Comments on the Draft "Procedures to Submit Objections Concerning the Japan Bank for International Cooperation's Guidelines for Confirmation of Environmental and Social Considerations" (March, 2003) CIEL questions President of Inter-American Development Bank over systematic problems with the structure and procedures of the Independent Investigation Mechanism (February, 2003) Secretive World Bank Tribunal Bans Public and Media Participation in Bechtel Lawsuit Over Access To Water (February, 2003) CIEL comments on the the Draft "Review of IFC's Safeguard Policies" (November, 2002) Police arrest Environmental Activist, Opposition Leader in Tanzania (November, 2001) Environmental and human rights NGOs call for independent review of Forced Displacement and Alleged Massacre at Bulyanhulu, Tanzania (September, 2001) Stop the World Bank's efforts to help Shell drill for oil in the politically volatile and environmentally sensitive Niger Delta (May, 2001) World Bank Weakening Involuntary Resettlement Policy; learn about the policy to protect communities from displacement! (April, 2001) Read the open letter to the President of the World Bank Concerning the International Advisory Group (February, 2001) Environmentalists Express Concern Regarding World Bank Resettlement Policy Draft (February, 2001) Environmentalists Express Concern as World Bank Announces Watchdog for ChadCameroon Pipeline (February, 2001) World Bank Weakening Resettlement Policy - click here for update, access to the internal draft policy, and what you can do (January, 2001) NGO comments to the Draft Terms of Reference for the International Advisory Group (Chad Cameroon Pipeline) (October, 2000) Profiling Problem Projects - Making the Case for Change at the International Finance Corporation (September, 2000) VICTORY! World Bank Effort to Support China's Population Transfer Into Tibet is Defeated! (August, 2000)
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All Gloves Are OFF! The Final Stretch in the Campaign to Stop the World Bank's China-Tibet resettlement Project. (June 1, 2000) Chad Military Threatens Citizens with Death for Opposing a Controversial Oil Pipeline Set for Approval by World Bank (June 1, 2000) More than 10 Million Poor Displaced by World Bank Projects Activists Demand Moratorium, Reparations (April 13, 2000) Researcher Injured in While Investigating Controversial World Bank Project in China (August 1999) World Bank Board Approves Controversial Proposal To Change Inspection Panel (April 1999) Environmentalists Welcome New Environmental Watchdog At IFC And MIGA (April 1999) Yacyreta and Singrauli Update: Action Needed Now (May 1998) Claimants Address World Bank Board of Executive Directors (February 1998) International Lawyers Worldwide Call For Strengthening of the Inspection Panel (January 1998) World Bank Board of Executive Directors Votes on Singrauli and Itaparica Claims (September 1997) Independent Review Confirms IFC Covered Up Social and Environmental Impacts from Chilean Dam Project (July 1997) Villagers Challenge World Bank Role in Thermal Power Projects in Singrauli, India (April 1997) Report on Controversial Chilean Dam Submitted to World Bank President (April 1997) World Bank Authorizes Inspection into Massive Dam Project in Argentina and Paraguay (March 1997)
