Five Agencies, One Group

IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, and (nonlending) analytical and advisory services. The income that IBRD has generated over the years has allowed it to fund several developmental activities and to ensure its financial strength, which enables it to borrow in capital markets at low cost and offer clients good borrowing terms. IBRD’s 24-member Board is made up of 5 appointed and 19 elected Executive Directors, who represent its 184 member countries.

Contributions to IDA enable the World Bank to provide approximately $6 billion to $9 billion a year in highly concessional financing to the world’s 81 poorest countries (home to 2.5 billion people). IDA’s interest-free credits and grants are vital because these countries have little or no capacity to borrow on market terms. In most of these countries, the great majority of people live on less than $2 a day. IDA’s resources help support country-led poverty reduction strategies in key policy areas, including raising productivity, providing accountable governance, improving the private investment climate, and improving access to education and health care for poor people.

IFC promotes economic development through the private sector. Working with business partners, it invests in sustainable private enterprises in developing countries without accepting government guarantees. It provides equity, long-term loans, structured finance and risk management products, and advisory services to its clients. IFC seeks to reach businesses in regions and countries that have limited access to capital. It provides finance in markets deemed too risky by commercial investors in the absence of IFC participation and adds value to the projects it finances through its corporate governance, environmental, and social expertise.

MIGA helps promote foreign direct investment in developing countries by providing guarantees to investors against noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, war and civil disturbance, and breach of contract. MIGA’s capacity to serve as an objective intermediary and to influence the resolution of potential disputes enhances investors’ confidence that they will be protected against these risks. In addition, MIGA provides technical assistance and advisory services to help countries attract and retain foreign investment and to disseminate information on investment opportunities to the international business community.

ICSID helps encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, thereby helping foster an atmosphere of mutual confidence between states and foreign investors. Many international agreements concerning investment refer to ICSID’s arbitration facilities. ICSID also issues publications on dispute settlement and foreign investment law.