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Indian Economy / International Organizations

World Bank Group of Institutions


    A group of 5 organizations constitute the World Bank Group and their headquarters is located at Washington D.C. They are International Bank for Reconstruction and Development ( IBRD ), International Finance Corporation ( IFC ), International Development Association ( IDA ), International Centre for Settlement of Investment Disputes ( ICSID ) and Multilateral Investment Guarantee Agency ( MIGA ).

    International Bank for Reconstruction and Development

    • It was founded in the year 1944 by the delegates at the Bretton Woods Conference.
    • It is the main lending organization for developing nations with relatively high per capita income
    • It lends money for building highways, irrigation projects, structural adjustment loan ( SAL ), etc.

    International Finance Corporation

    • It was established in the year of 1956
    • It helps to strengthen the private sector in the developing countries by extending long term loans, equity investment, etc.

    International Development Association

    • It was instituted in the year 1960
    • It provides the required financial assistance on concessional terms to the poor economies which cannot borrow from IBRD
    • IDA loans are known as Credit ( Small loans )

    International Centre for Settlement of Investment Disputes

    • It was established in the year 1966
    • It provides cooperation and arbitration between Governments and foreign investors
    • It carries out research and produces publications in the area of foreign investment law.

    Multilateral Investment Guarantee Agency

    • It was instituted in the year of 1988
    • It helps the developing countries in attracting the foreign investment
    • It provides investment guarantee against risks