The World Bank Group (WBG) is an essential international institution and is also regularly watched in the
news.

In this blog, you can read all about the World Bank and it’s Group.The World Bank Group is an
international partnership consisting of 189 countries and five constituent institutions that works
towards reducing poverty and creating harmony.

Five development institutions that under the World Bank Group are:

  • International Bank for Reconstruction and Development (IBRD)
  • International Development Association (IDA)
  • International Finance Corporation (IFC)
  • Multilateral Guarantee Agency (MIGA)
  • International Centre and the Settlement of Investment Disputes (ICSID)
  • History of World Bank and it’s Group


The United Nations Monetary and Financial Conference, also called as the Bretton Woods Conference
held in 1944 led to the foundation of the International Monetary Fund (IMF in 1945) and also the
International Bank which is for Reconstruction and Development (IBRD in the year 1944).


The original focus of the IBRD was the reconstruction of countries that was ravaged by the Second
World War through the loans.
Eventually, there was a shift from the reconstruction to development with a specific emphasis on
infrastructure, power grids, roads and transportation etc.


The other institutions like the IDA, IFC, etc. were established over the years and all five institutions (IBRD,
IDA, IFC, MIGA, and ICSID) came to be together called as the World Bank Group.
Recently, the group mmanages multifarious activities through its institutions and funds.
There is a main focus on developing and underdeveloped countries.
Infographic that above shows the brief functions and the year of formation of the five institutions. WBG
is known as the world’s biggest sources of funding and knowledge for all developing nations.


World Bank and it’s Group Membership


To join the World Bank Group, a country must become the member of the IMF.
To become the members of the IDA, IFC, and MIGA, the countries must first become the member of the
IBRD.
Membership of the ICSID is subject to all these following situations:
IBRD membership
Party and the Statute of the International Court of Justice (ICJ)
Invitation of the ICSID Administrative Council by the vote of two-thirds of its members.


The following section talks about the various functions of the institutions under the WBG.
International Bank for Reconstruction and Development (IBRD)
The IBRD known as a global development cooperative. It consists of a membership of 189 countries.
It basically the world’s largest development bank.
It offers loans, provides advisory services, and risk management products to middle-income and also to
credit worthy low-income countries.
Middle-income countries that represent more than 60% of the IBRD’s portfolio.
IBRD primarily deals with sovereign governments and not private players.
It also assists the governments by augmenting the investment climate of countries, reducing service
delivery bottlenecks, and also strengthening institutions and policies.
IBRD sources are mostly of its funds from the world’s financial markets.
IBRD and India


India is the founding member of IBRD.
It started lending to India in the year 1949, the first project being undertaken that is for the Indian
Railways.
Since the 1960s, the IBRD is an essential source of long-term funding for India.
India is the biggest IBRD client of the World Bank.
India is a blend country, which means it is transitioning from the lower-middle-income to the middleincome country.
India is eligible for the loans both from the IBRD and the IDA.