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The World Bank Group
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The World Bank Group comprises five closely associated institutions that collaborate to support development projects worldwide. Examples of Bank Group cooperation include joint country assistance strategies; investment promotion initiatives; the Foreign Investment Advisory Service; guarantee programs for major infrastructure projects; joint programs for developing micro, small, and medium enterprises; and awareness and prevention of HIV/AIDS (human immunodeficiency virus/acquired immune deficiency syndrome).
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 | THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
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| Established 1944 | 184 Members
Cumulative lending: $420.2 billion*
Fiscal 2006 lending: $14.1 billion for 112 new operations in 33 countries
*Includes guarantees from fiscal 2005.
| IBRD, the oldest of the World Bank Group institutions, aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and (nonlending) analytic and advisory services. The income that IBRD has generated over the years has allowed it to fund developmental activities and ensure its financial strength, enabling 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 the institution’s 184 member countries. | IBRD Key Financial Indicators
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 | THE INTERNATIONAL DEVELOPMENT ASSOCIATION
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| Established 1960 | 165 Members
Cumulative commitments: $170 billion*
Fiscal 2006 commitments: $9.5 billion for 167 new operations in 59 countries
*Includes guarantees from fiscal 2005.
| IDA provides highly concessional financing to the world’s 81 poorest countries. IDA’s interest-free credits and grants, financed by contributions to IDA from donor countries and IBRD's net income transfers, are vital because these countries have little or no capacity to borrow on market terms. IDA’s resources help support country-led poverty reduction strategies in key policy areas, including raising productivity, providing accountable governance, building a healthy investment climate, and improving access to basic services, including education and health care. (See www.worldbank.org/ida.) | IDA Key Financial Indicators
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 | THE INTERNATIONALÂ FINANCE CORPORATIONÂ
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| Established 1956 | 178 Members
Committed portfolio: $21.6 billion (includes $5.1 billion in syndicated loans)
Fiscal 2006 commitments: $6.7 billion for 284 projects in 66 countries | IFC is the private sector investment entity of the World Bank Group. It invests in sustainable private enterprises in developing and transition countries without accepting government guarantees, thereby helping to reduce poverty and improve people’s lives. It provides equity, long-term loans, structured finance and risk management products, and technical assistance and advisory services to its clients. IFC seeks to reach businesses in regions and countries that have limited access to capital. It provides financing 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. IFC partners with IBRD, IDA, MIGA, and ICSID on private sector initiatives. Additional information can be found in IFC’s annual report. (See www.ifc.org.) | IFC Key Financial Indicators
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SME DEVELOPMENT IN AFRICA: IDA-IFC COOPERATION
Development of small and medium enterprises (SMEs) in Africa is one of the World Bank Group’s strategic goals: it is seen as one of the best hopes for building economies and reducing poverty. But SMEs are often limited in their access to financial resources. To bridge this gap, IFC and IDA are partnering to improve access to financing by strengthening the local environment for financial markets, enhancing the ability of local financial institutions to lend profitably to SMEs, and developing innovative vehicles to supply risk capital. Structured financial instruments, such as partial credit guarantees to help local banks refinance their lending to SMEs, are also used. The IDA-IFC program is being piloted in 10 African countries: Burkina Faso, Ghana, Kenya, Madagascar, Mali, Mozambique, Nigeria, Rwanda, Tanzania, and Uganda. Interventions include technical assistance, capacity building, output-based grants, and regulatory assistance.
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 | THE MULTILATERAL INVESTMENT GUARANTEE AGENCY
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| Established 1988 | 167 Members
Cumulative guarantees issued: $16 billion*
Fiscal 2006 guarantees issued: $1.3 billion
*Amounts include funds leveraged through the Cooperative Underwriting Program.
| MIGA provides noncommercial guarantees (insurance) for foreign direct investment in developing countries. It addresses concerns about investment environments and perceptions of risk, which often inhibit investment, by providing political risk insurance. MIGA’s guarantees offer investors protection against noncommercial risks such as expropriation, currency inconvertibility, breach of contract, war, and civil disturbance. MIGA also provides advisory services to help countries attract and retain foreign investment, mediates investment disputes to keep current investments intact and to remove possible obstacles to future investment, and disseminates information on investment opportunities to the international business community. Additional information can be found in MIGA’s annual report. (See www.miga.org.) | MIGA Key Financial Indicators
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 | THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
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| Established 1966 | 143 Members
Total cases registered: 210
Fiscal 2006 cases registered: 26 | ICSID, founded in 1966, was designed to facilitate the settlement of investment disputes between foreign investors and host states. It encourages foreign investment by providing neutral 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 conducts research and publishing activities in the areas of arbitration law and foreign investment law. Additional information can be found in ICSID’s annual report. (See www.worldbank.org/icsid.) |
 WORLD BANK GROUP AT WORK An investment project in which the Bank, IFC, and MIGA all played a role during the past year was the Kupol Mining Project in the Russian Federation. The Bank’s 2002–06 country assistance strategy for Russia laid the foundation for understanding the need for economic development and growth in this remote region of northeastern Russia. IFC provided a $35 million loan to the Bema Gold Corporation to open and operate a gold mine that could generate up to 750 jobs. MIGA issued $305 million in guarantees to cover equity investments, which, according to project lenders, made their financing possible. In line with the Bank’s policy on extractive industries, this involvement will bring expertise and guidance to help ensure that the mine’s social and environmental performance meets international standards. |
  © 2006 The International Bank for Reconstruction and Development/The World Bank |
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