How Does the World Bank Work?
Obtaining Funds
Created after World War II as part of the Bretton Woods system, the World Bank's main mission is to aid development and alleviate poverty. The bank is made up of the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
The bank is funded by bonds sold on the financial markets, aid funding from developed countries and interest on loans.
Loaning Money to Developing Countries
The bank offers loans that support social or economical development projects as well as political or structural reform. Each loan is reviewed to ensure that the funded project is economically, socially, poliitically and environmentally sound. Aside from loans, the bank also gives grants and advice to developing countries.
Millennium Development Goals
The World Bank's current focus is on elimating poverty and implementing sustainable development. Through loans and grants, the bank is trying to combat corruption, develop sound financial systems, create infrastructure and build good governing capacity.
