The World Bank is a central source of monetary and technical assistance to developing countries all around the world. Their duty is to fight poverty with ardour and professionalism for permanent results, and to help people help themselves and their environment by providing wherewithal, sharing information, building capacity, and forging partnerships in the public and private regions. It came into recognized existence on 27th December, 1945, following international endorsement of the Bretton Woods agreement, which came into existence from the United Nations Monetary and Financial Conference.
World bank endows low-interest loans, interest-free credits and grants to developing countries for a wide range of functions, which include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource administration.
World Bank has five departments, where each department is allocated a specific mission. First agency is of International Bank for Reconstruction and Development (IBRD) and second agency is of International Development Association (IDA). Their activities are persistent on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure and governance.
The IBRD and IDA grant loans at privileged rates to member countries, as well as grants to the poor countries. Loans or grants for precise projects are often linked to wider strategy changes in the sector or the economy. For example, a loan to perk up coastal environmental management may be linked to expansion of new environmental institutions at national and local levels and the execution of new regulations to limit pollution.
International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are the other two agencies whose chief focus is on investment in the private sector and they also offer insurance, whereas the fifth agency, International Centre for Settlement of Investment Disputes (ICSID), works to steadfastness the disputes between its member countries and provides support whenever needed.
World Bank also plays a major role in setting the price of gold because it is considered as a major unit of trade. The value of currency depends on gold as it measures the changes in interest rates of one currency with another. Besides, countries and banks also purchase gold and set its prices in order to make its reserves brawny. If prices of gold are set too high in a country, that country will face a high rate of poverty; hence, World Bank maintains a stable rate of gold in order to avoid the severe problems caused by poverty.
World Bank is a renowned institution, which provides its services to more than 180 member countries. Its five agencies focus on eliminating poverty, and their aim is to raise the living standards of under developing countries. Besides, World Bank maintains gold prices in order to avoid high rates of poverty in developing countries.
The World Bank provides both loans and grants. Even the loans are at a concession as they are given to countries that have no access to international capital markets. Furthermore, the loans, both to poor and middle-income countries, are at below market-value interest rates.
