The World Bank is an international financial institution and a specialized agency of the United Nations, whose dual mandate is to end extreme poverty and promote shared prosperity through long-term economic development. It was established in 1944 at the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference, to create a new post-World War II international economic system. The original problem it solved was financing the reconstruction of war-torn Europe, with its first loan of $250 million going to France in 1947.
The term "World Bank" generally refers to the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which provide loans and grants to governments of low- and middle-income countries. The larger entity is the World Bank Group (WBG), which comprises five institutions: the IBRD (1944), the IDA (1960), the International Finance Corporation (IFC) (1956), the Multilateral Investment Guarantee Agency (MIGA) (1988), and the International Centre for Settlement of Investment Disputes (ICSID) (1965). The IBRD provides loans at market rates to middle-income countries, while the IDA offers interest-free long-term loans and grants to the poorest nations. The WBG is connected to its sister institution, the International Monetary Fund (IMF), as both were created at the Bretton Woods Conference.
The World Bank's governance is run like a cooperative, where voting power is based on a country's capital subscription, meaning wealthier countries like the United States exercise greater influence. Recently, the World Bank's Board of Executive Directors approved changes to the structure of the Accountability Mechanism on January 8, 2025, to enhance its independence by enabling the Inspection Panel (IPN) and the Dispute Resolution Service (DRS) to operate as two parallel units. Furthermore, an internal restructuring is underway, announced in October 2025, to centralize operations across its public and private sector arms, aiming to break down silos and increase efficiency.