UGC NET COMMERCE June 2019 Q6
0. Which among the following institutions is NOT a part of World Bank group?
- Option : B
- Explanation : World Bank Group: The World Bank Group consists of five institutions: The International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the International Centre for Settlement of Investment Disputes (ICSID), and the Multilateral Investment Guarantee Agency (MIGA). IBRD and IDA together are known as the World Bank. The term World Bank Group refers collectively to all five of the institutions. Although each institution has a distinct purpose, history and set of founding documents, they have a common commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
IBRD: The International Bank for Reconstruction and Development aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 188 member countries. IBRD raises most of its funds on the world’s financial markets and has become one of the most established borrowers since issuing its first bond in 1947. The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients good borrowing terms.
ICSID: The International Centre for Settlement of Investment Disputes provides international facilities for conciliation and arbitration of investment disputes.
IDA: The International Development Association is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing loans (called ‘credits’), grants and guarantees for programs that boost economic growth, reduce inequalities, and improve people’s living conditions. IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards.
IFC: The International Finance Corporation is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.
MIGA: The Multilateral Investment Guarantee Agency was created in 1988 to promote foreign direct investment into developing countries to support economic growth, reduce poverty and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance and cred it enhancement to investors and lenders.
