World Bank Group

The World Bank Group consists of the International Bank for Reconstruction and Development (IBRD), which was the first institution in the Group to be founded in 1944 together with the International Monetary Fund (IMF) at the Bretton Woods Conference, the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Center for Settlement of Investment Disputes (ICSID). The World Bank Group has set itself the goal to reduce the share of the global population living in extreme poverty to 3 percent by 2030 and to increase the prosperity of the bottom 40 percent of the population. It pursues the above-mentioned goals by granting loans (depending on the institution under more or less concessional or market-oriented terms), equity investments, guarantee instruments and technical assistance.

The International Bank for Reconstruction and Development (IBRD) – also known as the World Bank – and the International Monetary Fund (IMF) were established in 1944 at an international conference in Bretton Woods on the economic and monetary order after the Second World War and the need for reconstruction particularly in Europe (they are therefore also known as the “Bretton Woods Institutions”).

After the post-war reconstruction phase, the World Bank became an organization for developing countries and – particularly after the political changes in Eastern Europe and the former Soviet Union – also for transition countries. The disintegration of the Eastern Bloc also strengthened the global role of the IMF. The original World Bank became the World Bank Group during its organizational and substantive extension into a development organization. Membership of the IMF is a prerequisite for admission to the World Bank Group.

The World Bank Group consists of five sub-organizations:

• International Bank for Reconstruction and Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency (MIGA)
• International Centre for Settlement of Investment Disputes (ICSID)

While ICSID has a very specific function as a contact point for the settlement of international investment disputes, the other four institutions of the World Bank Group pursue the common goal of promoting the economic development of less developed member countries. The World Bank (IBRD and IDA) primarily supports the public sector, while the IFC and MIGA concentrate on developing the private sector. The main objective is to reduce poverty, and the World Bank Group provides various services for this purpose, such as financing, insurance, and other financial services.

Under the leadership of current President Ajay Banga, the World Bank Group is undergoing a comprehensive reform (Evolution). This reform aims to ensure that greater consideration is given to global and often cross-border challenges (such as climate change), without weakening the existing goals of poverty reduction and shared prosperity. To this end, changes are being made to the World Bank Group's mandate, operational approach, and financing model. The institution is thus responding to demands from its member states (including at the G20 level) for the Bank to make a greater contribution to achieving the Sustainable Development Goals (SDGs) and combating climate change.

Since Russia's full-scale invasion of Ukraine, the World Bank Group is implementing comprehensive support measures in the country.