Founded in 1944, the World Bank is a financial international organization that offers loans, grants and knowledge transfers to poor countries on the reduction of poverty and the promotion of their development. It is a complex of five organizations; one of them is the IBRD that together with the IDA constitute the World Bank. India has belonged to four of the 5 arms (not ICSID) and it has been getting major assistance in infrastructure, education, health and rural development. World Bank major reports are World Development Report Human Capital Index and Logistics Performance Index. It is of essential concern in the international expansion of the economy, sustainable development, as well as capacity-building in member states.

KEY HIGHLIGHTS FOR RAS MAINS

World Bank Group – Composition

The World Bank Group is a family of five international organizations:

Note: Only IBRD, IDA, and IFC are UN Specialized Agencies.

Key roles of the World bank

• Funding of Development Projects
  • Areas: Education, Health, Agriculture, infrastructure, Energy, Environment.
  • The loans are granted on a project basis on a conditional and supervised basis.
• Advisory Services
  • Provides technical assistance and technical expertise, policy advice, and institutional assistance.
• Studies and Survey
  • Generates data and reports that are known worldwide (e.g. World Development Report).
• Capacity Building
  • Advocates administration changes and institution-building.
• Promotion in Private Sector
  • With IFC, it supports SMEs and private investment in developing nations.

Major Reports Published by the World Bank

India’s Membership

• India is a member of the founding group of IBRD (1944), IDA (1960) and IFC (1956).
• Does not belong to ICSID because of the fear of sovereignty of organizations in the case of investigating disputes.

Historical Engagement

• The First loan to India: 1949 by World Bank Indian Railways.
• India happens to be one of the biggest borrowers and development partners of the World Bank.

Important Aspects of Collaboration

• Infrastructure (highway, railway networks, city transport)
• Rural development
• Management and water resource irrigation
• Health and education
• Energy, environment
• Protection of social and creation of employment

Major Projects Funded in India

International Development Association (IDA) 

• Makes low interest or interest-free loans and grants available to the poor nations of the planet.
• Gross National Income (GNI) per capita-based eligibility (e.g., the level is $1,315 as the GNI per capita threshold in FY2024).
• Loan Tenure: 25-40 years, and grace period of 10 years.

Important Highlights of RPSC Exams

• India is not a member of ICSID.
• World bank Group = IBRD + IDA + IFC + MIGA + ICSID
• Head office: Washington D.C., USA
• President: Ajay Banga (as of 2023 first Indian to chair the World Bank)
• Bretton Woods Conference (1944)
• Known as: One of the Bretton Woods Twins (along with IMF)

Conclusion

The World Bank has a central role to play in enhancing development of the planet since it deals with the issues of poverty, inclusive growth, system upgrading of infrastructure, and governance enhancement in developing countries. In the case of India, it has helped it develop in various aspects over the years. As the world faces new challenges (such as climate change and pandemics), the World Bank plays a more important role in addressing a sustainable and fair future than ever