Participation in Projects (Investment Lending)

Investment loans provide financing for a wide range of activities aimed at creating the physical and social infrastructure necessary for poverty alleviation and sustainable development. Over the past two decades, investment lending has, on average, accounted for 75 to 80 percent of all Bank lending. The nature of investment lending has evolved over time. Originally focused on hardware, engineering services, and bricks and mortar, investment lending has come to focus more on institution building, social development, and building the public policy infrastructure needed to facilitate private sector activity. Projects range from urban poverty reduction, to rural development; natural resource management; education and health.

Increasingly, World Bank investment lending projects have begun focusing on stakeholder involvement and community participation. Community based development gives control of decisions and resources to community groups. Successful community based development requires tapping into local needs, and building on the strength of existing institutions and supporting community action.