The World Bank is an international institution and a specialized agency of the United Nations, which is the largest source of financial assistance to developing countries. It is an intergovernmental organization headquartered in Washington, D.C., with the stated mission of ending extreme poverty and building shared prosperity. The institution originated at the 1944 Bretton Woods Conference, alongside the International Monetary Fund (IMF), to establish a new post-World War II international economic system. Its initial purpose was to provide temporary loans for the postwar reconstruction of countries like France, but its focus later shifted to development in the developing world.
The term "World Bank" generally refers to the International Bank for Reconstruction and Development (IBRD), established in 1944, and the International Development Association (IDA), established in 1960. The broader World Bank Group (WBG) is a family of five international organizations, which also includes the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). The IBRD provides loans at market rates to middle-income and creditworthy lower-income countries, while the IDA provides interest-free long-term loans and grants to the poorest countries. The Bank raises most of its funds by borrowing on international capital markets, leveraging its high credit rating to lend to developing countries on favorable terms. Its operations are governed by its Articles of Agreement and overseen by a Board of Governors, with decision-making power largely held by 25 executive directors.
The World Bank connects to the Bretton Woods system and works closely with the IMF and the World Trade Organization in overseeing global economic policy. A recent change, announced by President Ajay Banga, involves a structural reform to centralize operations and merge knowledge teams across the public arms (IBRD/IDA) and the private arm (IFC) into one unit working across five verticals: people, prosperity, planet, infrastructure, and digital. This restructuring, which officially kicks in on January 1 (of the year following the announcement), aims to break down silos and shift the focus from production to impact.