WORLD BANK GROUPWORKING FOR A WORLD FREE OF POVERTYThe World Bank is one of the world’s largest sources of

funding for the developing world. Its primary focus is on

helping the poorest people and the poorest countries. It uses

its financial resources, its staff, and extensive experience to

help developing countries reduce poverty, increase

economic growth, and improve their quality of life.THE WORLD BANK

334220.Lot1 2/9/06 11:49 PM Page C1

President: Paul Wolfowitz

The World Bank Group is made up of five

organizations:

• The International Bank for Reconstruction and

Development �IBRD�

• The International Development Association �IDA�

• The International Finance Corporation �IFC�

• The Multilateral Investment Guarantee Agency

�MIGA�

• The International Centre for the Settlement of

Investment Disputes �ICSID�.

In this brochure, Bank and World Bank refer to the

whole institution, the World Bank Group.

Headquarters: Washington, DC and more than 100

offices around the world

Establisshed: July 1, 1944 by a conference of 44

governments in Bretton Woods, New Hampshire, USA

Membership: 184 countries

Staff: About 7,000 employees in Washington, DC and

more than 3,000 in offices around the world

WORKING FOR A WORLDFREE OF POVERTY

Ale

jand

ro L

ipsz

yc/W

orld

Ban

k Ph

oto

Libr

ary

334220.Lot1 2/9/06 11:49 PM Page C2

WORLD BANK GROUP 1

Today�s world is both very rich andvery poor. Around 2.8 billionpeople�more than half the peoplein developing countries�live on lessthan US$2 a day. Of these, 1.2 billionpeople earn less than US$1 day. Thechallenge of reducing these levels ofpoverty, while the world�spopulation continues to grow by anestimated 3 billion people over thenext 50 years, is enormous.

We work to reduce povertyworldwide by: • Promoting growth to create

employment opportunities; and • Helping poor people to take

advantage of these opportunities.

We support governments ofmember countries in their efforts toinvest in schools and health centers,provide water and electricity, fightdisease and protect theenvironment.

We are not a �bank� in the commonsense. We are an internationalorganization owned by the 184countries�both developed anddeveloping�that are our members.

We were set up in 1944 as theInternational Bank forReconstruction and Development.When we first began operations in1946, we had 38 members. Thatnumber increased sharply in the1950s and 1960s, when manycountries became independent

nations and joined our organization.As our members grew and theirneeds changed, we expanded andare now made up of five differentagencies.

We are like a cooperative, where ourmembers are shareholders. Throughtheir representatives on our Boardof Executive Directors, thesecountries set our policy, oversee our operations and benefit from our work. �

THE WORLD BANK GROUP

THE WORLD BANK AND THE IMFPeople sometimes confuse us with the International Monetary Fund�IMF�, which was also set up at the Bretton Woods conference in 1944.Although the IMF�s functions complement ours, it is a totally separateorganization. While we provide support to developing countries, the IMFaims to stabilize the international monetary system and monitors theworld�s currencies.

Anvar llyasov/World Bank Photo Library

334220.Lot1 2/9/06 11:49 PM Page 1

2 WORLD BANK GROUP

ROAD MAP FORDEVELOPMENTMost of the world�s nationscommitted themselves to workingtogether to reduce poverty by halfby 2015 when they signed theMillennium Declaration at ameeting at the United Nations in2000. The Millennium Declarationhas eight goals, which are describedbelow. We use these goals to set ourpriorities�they are our road mapfor development. We are committedto helping our member countriesachieve these goals.

THE MILLENNIUM DEVELOPMENT GOALS• End extreme poverty and hunger;• Make sure all children receive a

primary education;• Promote equal rights for women

and give them power to helpthemselves;

• Reduce child death rates;• Improve the health of pregnant

women and mothers;• Tackle HIV/AIDS, malaria and

other diseases;• Protect the environment and nat-

ural resources; and• Develop an international partner-

ship for development. �

Am

i Vit

ale/

Wor

ld B

ank

Phot

o Li

brar

y

334220.Lot1 2/9/06 11:49 PM Page 2

WORLD BANK GROUP 3

We are one of the world�s largestsources of funding and knowledgefor developing countries. Our mainfocus is on helping the poorestpeople and the poorest countries.We use our financial resources, staffand extensive experience to helpdeveloping countries reducepoverty, increase economic growthand improve their quality of life.

Assessing the effect of projects wesupport is essential in developingcountries. Resources are scarce sowe must use them where they canhave the largest effect. Monitoringhelps project managers know ifprograms are reaching the peoplethey are aimed at or if theseprograms are ineffective andwasteful. The emphasis onmonitoring and assessment is part ofour focus on actual results for poorpeople and on continuous learningabout what does and does not workfor future advice and support.

Over the past 60 years, we havelearned that development solutions

need to be designed by countries tosuit their own circumstances�onesize does not fit all. We bring a mixof money and knowledge toencourage economic and socialdevelopment, and help countries toachieve the internationally agreedMillennium Development Goals.

We work in partnership with morethan 100 developing countries andare involved in many different areas.Projects we have supported helpthese countries to invest in healthand education, fight corruption,boost agricultural production, buildroads and ports and protect theenvironment. Other projects areaimed at rebuilding war-torncountries or regions, providing basicservices such as clean water, orencouraging investments that createjobs. In the fiscal year that ended onJune 30, 2005, our Board approvedUS$22.3 billion in loans and grantsfor 278 projects. �

WHAT WE DO

334220.Lot1 2/9/06 11:49 PM Page 3

4 WORLD BANK GROUP

The best way to understand us is bylooking at examples of how projectswe have supported have helped to: • Increase education for poor

children in India; • Reduce tuberculosis infections in

China; • Fight HIV/AIDS in Brazil; • Connect remote villages in Peru; • Double the income of people who

live in rural areas in Turkey; • Track government spending for

education in Uganda; • Encourage economic growth in

Mozambique;

• Support women who are startingtheir own businesses in theKyrgyz Republic; and

• Provide debt relief.

EDUCATIONImagine that you are a child inIndia�a country with more than abillion people. Making sure that allboys and girls get even a few yearsof education is a very difficult task,but one that the government istackling with help from theinternational community. The

District Primary Education Programwas started in the early 1990s to helpIndia achieve this goal. It has sincebecome the world�s largest educationprogram, reaching 60 millionchildren.

We are the largest single contributorto this initiative, providing funds ofUS$1.2 billion. The program is alsosupported by many other donors,including the United NationsChildren�s Fund �UNICEF , theEuropean Commission, and thegovernments of Sweden and the

RESULTS ON THE GROUNDShehzad Noorani/World Bank Photo Library

334220.Lot1 2/9/06 11:49 PM Page 4

WORLD BANK GROUP 5

Netherlands. Spread over 271 districtsin 18 states, the program focuses onchildren aged between six and 14,and aims to provide them with atleast four or five years of qualityprimary education. Enrollment ingeneral has increased, and in a three-year period the number of girls inschool increased from 38 percent to43 percent. The government is usingthis program as a blueprint to deliverprimary education across India.

HEALTHToday, tuberculosis TB� is almost asbig a killer as HIV/AIDS, and thepoorest suffer the most from this

illness. China has more than 1.3million new TB cases each year 16percent of the world�s TB patients. In1992, the Chinese governmentreceived more than US$50 millionfrom the World Bank to control TB.In partnership with us, the WorldHealth Organization and thegovernment of the United Kingdom,the Chinese government started totreat people in 13 provinces thataccount for roughly half of theChinese population.

This meant that the governmentcould buy low-cost, high-qualitydrugs, train staff, and diagnose andtreat TB patients. The project also

gave incentives to healthcareproviders who were treating peoplefor free. To control TB, which is verycontagious, the World HealthOrganization recommends thatgovernments not only find and cureinfectious TB patients but also makesure that they are treated for sixmonths free of charge. By the end of2000, nearly 1.2 million infectious TBpatients had been diagnosed andcured as a direct result of thisprogram. China�s remarkable successrate of 95 percent is the best of anycountry carrying out a large-scalenational TB campaign.

HIV/AIDSIn the early 1990s, Brazil had thefourth-largest number of reportedHIV/AIDS cases in the world. NowBrazil is considered to be one of themost effective nations in fighting theHIV/AIDS epidemic and providing forits victims. With US$160 million fromus in 1993, around 175 non-governmental organizations carriedout more than 400 campaigns thatreached half a million people andtrained thousands of teachers andstudents in preventing HIV/AIDS anddrug abuse. In 1998 and 2003, weprovided an additional US$265million to further assist Brazil in itsefforts to fight the HIV/AIDSepidemic. The Brazilian program isunique in that since 1996, it hasprovided free medication for HIV

334220.Lot1 2/9/06 11:49 PM Page 5

positive patients through the publichealth system. Since 1993, Brazil hasseen a 38 percent drop in the numberof HIV/AIDS-related deaths.

ROADSIn the tiny village of Ccorca in thehigh Andes in Central Peru, it used totake people four or five hours to get

to the market in Cuzco. To link thevillagers with markets, schools and medical care, the Peruviangovernment got together with the World Bank, civil societyorganizations which include groupsthat do not belong to government orthe private sector and the Inter-American Development Bank tocreate the Peru Rural Roads Program.

With a new bus service and betterroads, the same trip now takes onehour.

In addition to buying food, medicineand clothing in the town, and sellingtheir own products in the market,the people of Ccorca are now goingto Cuzco to do part-time work atvarious hotels and restaurants that

6 WORLD BANK GROUP

Tran Thai Hoa/World Bank Photo Library

334220.Lot1 2/9/06 11:49 PM Page 6

WORLD BANK GROUP 7

cater to a growing tourism industry.Ccorca is not the only village that hasbenefited. Around 3 million people inthe Andean region are benefitingfrom nearly 13,000 kilometers ofrural roads and highways.

ENVIRONMENTMore than 70 percent of Turkey�sland area suffers from soil

degradation, which has affected theincome of people working the land.With our support, the EasternAnatolia Watershed RehabilitationProject has improved the lives offarmers in over 300 mountainvillages in Turkey. This has beenachieved by allowing the farmers togrow new cash crops �which areproduced only for the market andnot for food and teaching them new

farming techniques that haveincreased their productiondramatically.

The project was designed to increasethe productivity of forests, makemarginal farmlandwhich has beencultivated repeatedly or is affectedby droughtusable, and allow morevillagers to plan and manage theirown resources. Since its launch, rural

THE PROJECTS WE FINANCE HAVE...• Reduced air pollution in Mexico City, with the number of unhealthy

ozone days going down from 174 in 1991 to 30 in 1999;

• Lowered the cases of goitre �enlargement of the thyroid gland inpregnant women and schoolchildren in Madagascar from 45 percent in1992 to 15 percent in 1998;

• Installed 14,000 workstations in 2,266 offices in 77 regions of theRussian Federation so that pensions can be worked out by computer.This reduced delays in new pensions from 30 days to two days;

• Built 158 health centers and upgraded 57 district hospitals in Tunisia;

• Provided 15,069 kilometers of roads and 42.5 kilometers of bridges forpoor communities in Indonesia; and

• Financed more than 15 million cataract operations in India.

334220.Lot1 2/9/06 11:49 PM Page 7

incomes in this area have doubled,and satellite images show a markeddifference in the vegetation, whichwill help reduce floods and keep theland free of sediment.

GOVERNANCEIn Uganda during 1991�1995, surveysrevealed that, on average, less than30 percent of funds intended forschools were actually reaching them.The government responded to thisby improving payment proceduresand also letting the widercommunity parents ofschoolchildren, and teachers, amongothers know when money was paidto the schools. By 2000, the samesurveys showed that more than 90percent of money set aside forschools actually reached them. Thisshows that information can be apowerful tool for change wheninstitutions are weak.

ECONOMIC GROWTHMozambique was one of the world�spoorest and most debt-riddencountries during the 1990s afteryears of civil war. To improve life forits people, the government wantedto create jobs and attract investmentin ways that would help rebuild itseconomy. These included Mozal, aUS$2.2 billion investment from 1996�2003 in a large-scale, state-of-the-artaluminum smelter. Mozal has

8 WORLD BANK GROUP

Dom

inic

San

soni

/Wor

ld B

ank

Phot

o Li

brar

y

334220.Lot1 2/9/06 11:49 PM Page 8

WORLD BANK GROUP 9

involved a number of investors andlenders, including the IndustrialDevelopment Corporation of SouthAfrica, which was backed by a US$40million guarantee from theMultilateral Investment GuaranteeAgency �a part of The World BankGroup� which encourages foreigninvestment in the developing world.

Mozambique has been successful inattracting foreign investment inprojects that have helped economicactivity and promoted growth

�estimated at 14 percent in 2001�.Mozal was the first major foreigninvestment project in Mozambiqueat a time when the country wasstruggling to attract investment.Over the last four years,Mozambique has seen exportsincrease steadily, reaching US$1billion in 2002.

FINANCIAL SERVICESIn the Kyrgyz Republic, SononyaZhanazarova �Sonya� tried to

supplement her income by sellingpistachios at the local market. As shecouldnt afford a stall in the producehall, she sold pistachios from a smalltable outside the building�evenduring the freezing winter months�until she got together with 11 otherwomen to set up a village bankinggroup. Hoping to find the money tohelp expand her business, Sonyaturned to the Foundation forInternational Community Assistance�FINCA��a provider of small loansto poor people who are trying to

Eric Miller/World Bank Photo Library

334220.Lot1 2/9/06 11:49 PM Page 9

10 WORLD BANK GROUP

start a business�which is supportedby our private-sector arm, theInternational Finance Corporation. AUS$40 loan from FINCA allowedSonya to buy more pistachios andbegin expanding her own business.

FINCA provides loans to even thesmallest entrepreneurs, allowingpeople on low incomes to obtainreliable access to loans at fairinterest rates to grow theirbusinesses and improve their lives.Today, 90 percent of FINCAs clientsin the Kyrgyz Republic are women,like Sonya, who borrow an averageof US$120. Over time, Sonyasbusiness has grown and she hasadded new products. She has even

rented a table in the market. Today,she is doing well for herself and hashired new staff.

DEBT RELIEFHigh levels of debt, owed mostly togovernments in rich countries, makeit hard for poor countries to providemoney for education, health andother important services. As a result,with the International MonetaryFund, we launched a debt reliefprogram called the Heavily IndebtedPoor Countries Initiative in 1996.This initiative is a commitment bythe international community towork together to reduce the debt ofvery poor countries. The countries

that qualify for debt relief have lowincomes, owe large amounts of debt,and are committed to improvingtheir economies.

Today, 27 countries are receivingdebt relief that is expected toamount to more than US$52 billion.They are saving an average of US$1billion a year because of lower debtcosts. According to independentstudies, in 10 of these countriesspending on education is now morethan double the remaining paymentsthe countries owe on loans. Also,spending on health in thesecountries is up by 70 percent. �

Bunyad Dinc/World Bank Photo Library

334220.Lot1 2/9/06 11:49 PM Page 10

We are run like a cooperative, with ourmember countries as shareholders. Thenumber of shares a country has isbased roughly on the size of itseconomy. The United States is thelargest single shareholder, with 16.41percent of the votes, followed by Japan�7.87 percent, Germany �4.49percent, the United Kingdom �4.31percent and France �4.31 percent. Therest of the shares are divided amongthe other member countries.

ULTIMATE DECISION-MAKING AUTHORITYOur government shareholders arerepresented by a Board of Governors.Generally, these governors areministers, such as Ministers of Financeor Ministers of Development. Thegovernors have the ultimateresponsibility for making decisions, andmeet once a year during our AnnualMeetings.

DAY-TO-DAY DECISIONSBecause the governors meet only oncea year, they give specific duties to theirExecutive Directors, who work on-siteat the Bank. Every membergovernment is represented by anExecutive Director. The five largestshareholders �France, Germany, Japan,the United Kingdom and the UnitedStates appoint an executive director

each, while other member countriesare represented by 19 ExecutiveDirectors.

The 24 Executive Directors make upour Board of Directors. They normallymeet twice a week to oversee ourbusiness, including approving loans and guarantees; new policies; theadministrative budget; country supportstrategies; and borrowing and financialdecisions.

Our president is, by tradition, anational of the largest shareholder�the United States. Elected for a five-year term �which can be renewed, ourpresident chairs the meetings of ourBoard of Directors and is responsiblefor our overall management. Ourcurrent president is Paul Wolfowitz,who came into office on June 1, 2005.

The World Bank employs around10,000 people, including economists,educators, environmental scientists,financial analysts, anthropologists,engineers and many others. Ouremployees come from about 160different countries, and over 3,000staff work in offices around the world.There has been a move to place morestaff in member countries, where theycan work closely with our clients. �

WHO RUNS THE WORLD BANK?

WORLD BANK GROUP 11

Wor

ld B

ank

Phot

o Li

brar

y

334220.Lot1 2/9/06 11:49 PM Page 11

12 WORLD BANK GROUP

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENTThe International Bank forReconstruction and Development�IBRD� provides loans anddevelopment assistance to middle-income countries in Latin America,Asia, Africa and Eastern Europe.IBRD gets most of its funds by sellingbonds in international capitalmarkets.

INTERNATIONAL DEVELOPMENT ASSOCIATIONThe International DevelopmentAssociation �IDA� plays an important

role in our mission to reducepoverty. Its support is focused onthe poorest countries, to which itprovides interest-free loans andgrants. IDA depends oncontributions from its wealthiermember countries �including somedeveloping countries� for most of itsfinancial resources.

INTERNATIONAL FINANCE CORPORATIONThe International FinanceCorporation �IFC� promotes growthin the developing world by financingprivate-sector investments and

providing technical support andadvice to governments andbusinesses. In partnership withprivate investors, IFC provides loansand equity finance for businessventures in developing countries.

MULTILATERAL INVESTMENT GUARANTEEAGENCYThe Multilateral InvestmentGuarantee Agency �MIGA�encourages foreign investment indeveloping countries by providingguarantees to foreign investorsagainst loss caused by non-

FIVE AGENCIES—ONE GROUP

INTERNATIONAL BANK FORRECONSTRUCTION AND

DEVELOPMENT

INTERNATIONAL DEVELOPMENTASSOCIATION

INTERNATIONAL FINANCECORPORATION

MULTILATERAL INVESTMENTGUARANTEE AGENCY

INTERNATIONAL CENTRE FOR THE SETTLEMENT OFINVESTMENT DISPUTES

INTERNATIONAL BANK

FOR

WORLD BANK

RE

CO

NSTRUCTION AND DEVELO

PME

NT

INT

ER

NA

TIO

NA

L

D E V E L O P M E N

TA

SS

OC

IAT

IO

N

INT

ER

NA

TI O

N

AL

F I N A N C E

CO

RP

OR

AT

ION

INT

ER

NA

TI O

N

AL

F I N A N C E

CO

RP

OR

AT

ION

¥M

UL

TI

L

AT

E R A L I N VE

ST

ME

NT

¥

GU

A

RA

N T E E A GE

NC

Y

World Bank Group

334220.Lot1 2/9/06 11:49 PM Page 12

commercial risks. MIGA alsoprovides technical support to helpdeveloping countries promoteinvestment opportunities and usesits legal services to reduce possiblebarriers to investment.

INTERNATIONAL CENTRE FOR THESETTLEMENT OF INVESTMENT DISPUTESThe International Centre for theSettlement of Investment Disputes�ICSID� provides facilities for settlinginvestment disputes betweenforeign investors and their hostcountries. �

FACTS ON THE FIVEAGENCIESInternational Bank forReconstruction and Development Set up in 1945184 member countriesFiscal 2005 lending: US$13.6 billionfor 118 new operations in 37countriesWebsite: www.worldbank.org

International DevelopmentAssociationSet up in 1960165 member countriesFiscal 2005 lending: US$8.7 billionfor 160 new operations in 66countriesWebsite: www.worldbank.org/ida

Intternational Finance CorporationSet up in 1956178 member countriesFiscal 2005 commitments: US$5.4billion for 236 projects in 67 countriesWebsite: www.ifc.org

Multilateral Investment GuaranteeAgencySet up in 1988165 member countriesFiscal 2005 guarantees issued:US$1.2 billion Website: www.miga.org

International Center for theSettlement of Investment DiisputesSet up in 1966142 MembersFiscal 2005 cases registered: 25 Website: www.worldbank.org/icsid

Julio Etchart/World Bank Photo Library

WORLD BANK GROUP 13

334220.Lot1 2/9/06 11:49 PM Page 13

14 WORLD BANK GROUP

All five agencies play different rolesthat complement one another.

BANKEROver the years, we have developeddifferent ways of meeting the needs ofdeveloping countries. We have twomain lending sections�IBRD and IDA.IBRD offers middle-income countries acheap alternative for raising the fundsthey need to back reforms and publicservices. Countries that borrow fromthe IBRD have more time to repaythan if they borrowed from acommercial bank �15 to 20 years with athree- to five-year period beforerepayments begin. The governmentsof developing countries borrow moneyfor specific programs, focused onpoverty reduction, delivery of socialservices, environmental protection andeconomic growth to improve livingstandards. IDA helps the world�spoorest countries reduce poverty byproviding grants and credits, which areinterest free loans that countries have35 40 years to repay, with a 10-yeargrace period before any payments aredue. These countries do not have thefinancial ability to borrow from IBRDor from commercial markets. At themoment, 81 countries are eligible toborrow from IDA. Together, these

countries are home to 2.5 billionpeople, making up half of the totalpopulation of the developing countries.

BROKEROther sources of development fundinginclude loans or grants from wealthiernations through bilateral agreements�borrowing agreements between twocountries; international organizationsor groups of countries throughmultilateral agreements �agreementsamong more than two countries;export credit agencies; and privatebusiness.

To help countries that are facingimmediate budget crises, the majorsupporters of development set upseveral trust funds that we run. Trustfunds may be used to support criticalinvestment operations, debt relief,technical assistance and emergencyreconstruction in the wake of naturaldisaster or war.

Finally, by covering non-commercialrisks that the private sector andfinancial institutions are not normallyprepared or willing to take on, MIGAguarantees encourage privateinvestment in developing countries.The IFC works with the private sector

HOW WE WORK

Trev

or S

amso

n/W

orld

Ban

k Ph

oto

Libr

ary

334220.Lot1 2/9/06 11:50 PM Page 14

WORLD BANK GROUP 15

in developing countries in order toencourage private investment.

DONORAlthough we are mainly a lendinginstitution, we also oversee a numberof grant facilities. For example, theDevelopment Grants Facility fundsprojects that test new approaches andtechnologies to try and solvedevelopment problems. Our grantshave supported projects in the areas ofrural development, health, education,economic policy, environmentalprotection and private-sectordevelopment.

ADVISEROur advice draws on years ofdevelopment experience, analysis, andresearch. We are one of the world�slargest centers for research in the areasof development economics, poverty,trade, globalization, and theenvironment. Also, each project has aresearch phase when our staff andtheir partners examine many factorsthat are important to a country�seconomic and social health. Thesefactors range from economic and tradeprospects to poverty levels andwhether safety nets are working. Wealso have specialized departments that

give advice on health, education,nutrition, financial services, justice, lawand the environment.

KNOWLEDGE RESOURCEIn line with our goal of helpingcountries to help themselves, theWorld Bank Institute �our trainingagency� offers teaching andinformational programs, often withlocal research and academicinstitutions, to improve members�development skills. The World BankInstitute also develops and maintainsdatabases and networks for sharingknowledge on internationaldevelopment.

PARTNEROur main partners in development areour member country governments.However, we also work withorganizations that are equallyexperienced or better placed to getstakeholders and local communitiesinvolved in developing countries. Wehave built, and continue to strengthen,partnerships with other multilateraldevelopment banks, United Nationsagencies, bilateral donors and civilsociety organizations. We are alsodeveloping stronger ties with academicinstitutions and the private sector. �

334220.Lot1 2/9/06 11:50 PM Page 15

IBRD �our main lending agency�raises most of its money in theworld�s financial markets by sellingour AAA-rated World Bank bonds,usually to financial institutions,pension funds and otherinstitutional money managers, aswell as to central banks. In fiscal2003, IBRD raised US$17 billion infinancial markets. However, unlikeother financial institutions, we donot operate for profit. We use ourhigh credit rating to pass the lowinterest we pay for our finance toour developing country borrowers.

We earn interest and fee income onour loans, and income on our liquidasset investments and capital that ispaid in by our member countryshareholders. These earnings, as wellas the funds raised on the capitalmarkets and part of the paid-incapital and reserves, are used tomake loans to our member countriesand to cover our administrativeexpenses.

IDA funds, which account for aboutone-quarter of all of our lending,provide the poorest countries withinterest-free loans and grants. Some40 donor countries replenish theIDA facility �the world�s largestsource of interest-free assistance topoor countries� every three years,allowing us to continue ourprograms. IDA also helps mobilizeand coordinate aid from donorcountries and other internationalorganizations.

The fund was replenished mostrecently in 2002, with about US$23billion to poor countries over thethree-year period which began onJuly 1, 2002. About half of the fundscame from donors, with the restcoming from non-donor resources�including IDA repayments and netincome transfers from IBRD�.Donors decided at that time thatmore of this money �up to one-fifth�will be given as grants which don�thave to be paid back, instead of

16 WORLD BANK GROUP

WHERE DOES OUR MONEYCOME FROM?WORLD BANK BONDS DONOR FUNDSTRUST FUNDS INVESTORS IDA REPAYMENTS

Ale

jand

ro L

ipsz

yc/W

orld

Ban

k Ph

oto

Libr

ary

334220.Lot1 2/9/06 11:50 PM Page 16

WORLD BANK GROUP 17

interest-free loans. The grants willmake it easier for countries to dealwith development crises such as theHIV/AIDS epidemic.

Outside of IDA, very little of ourincome is provided by membercountries�5 percent of IBRD�sfunds �around US$13 billion� havecome from contributions of richcountries, paid in when they joinedthe Bank.

MIGA is capitalized by its membercountries and receives operatingcapital from the Bank. The agencyalso charges fees for some of itsservices.

IFC provides a mix of financing�loans, equity finance, riskmanagement products, andintermediary finance, amongothers� for each of its projects.However, most of its funding, aswell as leadership and managementresponsibility, comes from private-sector owners. IFC operates on acommercial basis. It invests only infor-profit projects and chargesmarket rates for its products andservices. �

334220.Lot1 2/9/06 11:50 PM Page 17

Our main job is to use our money inways that benefit developingcountries. We provide these funds atzero or low-interest rates, or asgrants to countries that have noaccess to international markets.

Member countries also come to usfor economic research, policy advice,and technical assistance in designingand carrying out development

projects. The countries design theirown programs with technicalsupport from our staff. However,the programs must have specificdevelopment targets such asreducing poverty, and deliveringsocial services, among others.

The type of financing available to adeveloping country depends on itslevel of need. Countries that borrow

from IBRD are generally middle-income countries, where income foreach person is less than US$5185 ayear. Seventy-five percent of theworld�s poorest people those wholive on less than US$1 a day live inthese countries, which can onlyborrow from the private markets atunfavorable rates. IBRD offers themloans at better terms and withlonger repayment periods.

WHERE DOES OUR MONEY GO?IBRD LOANS IDA CREDITS TRUST FUND GRANTS PROJECT FINANCEGUARANTEES INVESTMENTS

Anvar llyasov/World Bank Photo Library

18 WORLD BANK GROUP

334220.Lot1 2/9/06 11:50 PM Page 18

The world�s poorest countries �thosewhere income for each person isUS$875 or less� receive grants andinterest-free loans from us forprojects to provide basic services. Inthe case of the loans, countries have35 to 40 years to repay, with a 10-year grace period. Revenues fromour operations go into reserves,which have a high level of financialprotection and help to fund majorsources of assistance, such as IDAand debt relief.

By creating IFC and MIGA, we triedto make things fairer for developingcountries and make them moreattractive to investors. IFC workswith the private sector in developingcountries. It takes a minority stakein a private company in order toattract private investors. MIGAguarantees insure investors andlenders against financial and politicalrisk in developing countries, offeringcover against non-commercial riskssuch as war and civil disturbance. �

�� Energy & Mining

�� Finance

�� Education

Health & Other��� Social Services

Agriculture� Fishing �� & Forestry

Law & Justice &Public Administration ���

Transportation ��

Water� Sanitation& Flood Protection ���

Information &Communication �� � Industry & Trade

HOW OUR LOANSARE MADEWe offer two basic types ofloans: investment loans forgoods, work and services tosupport economic and socialdevelopment projects in a broadrange of sectors; and adjustmentloans to support policy andinstitutional reforms.

During loan negotiations, weagree with the borrower on thedevelopment objective of theproject or program, outputs,performance indicators �tomeasure the impact and successof the project� and a plan to putit all into practice. Once weapprove the loan and it becomeseffective, the borrower puts theproject or program into practiceaccording to the terms agreedwith us.

We supervise how each loan isused and evaluate the results. Allloans are governed by ouroperational policies, which makesure that operations we fund areeconomically, financially, sociallyand environmentally sound.

WORLD BANK GROUP 19

IBRD/IDA LENDING BY SECTOR, FISCAL YEAR 2005

Share of total lending of US$22.3 billion

334220.Lot1 2/9/06 11:50 PM Page 19

WHERE CAN I FIND MORE INFORMATION?Our website �www.worldbank.org�has a great deal of information aboutthe World Bank. We also have adatabase on our projects in developingcountries, which contains informationon loans and technical support�www.worldbank.org/projects�.

ARE THERE SPECIAL OPPORTUNITIES FOR JOBS ANDSCHOLARSHIPS?For information about jobs, you canvisit the World Bank careers websiteat: www.worldbank.org/careers

For scholarships, you can consult thetwo programs below:Joint Japan and World Bank GraduateScholarship Program www.worldbank.org/wbi/scholarships

Robert S McNamara FellowshipsProgram www.worldbank.org/wbi/scholarships

ARE THERE ANY GRANTS I CAN APPLY FOR?We offer various grant and fundingopportunities. Here are someexamples.

InfoDev Provides funding for the disseminationof information communicationstechnology �ICT� and improving ICTuse for social and economicdevelopment and reducing poverty inpartnership with internationaldevelopment organizations,

governments and private-sectororganizations �www.infodev.org�.

Post Conflict Fund Supports planning, testing and analysisof reconstruction activities by fundinggovernments and partnerorganizations. Non-governmentalorganizations �NGOs� and other civilsociety institutions, governments andregional and internationalorganizations in any country that iscurrently in conflict or is emergingfrom a recent conflict are eligible toapply for funding�www.worldbank.org/conflict�.

Indigenous People Fund Supports projects that deal withresources for sustainabledevelopment, indigenous rights,institutional strengthening andtraining, and culture and identity�www.worldbank.org/indigenous�.

Social Funds Finances small community-managedprojects to help poor and vulnerablepeople in developing countries�www.worldbank.org/socialfunds�.

Montreal Protocol Helps developing countries to meetthe increasing costs of stopping theproduction and use of chemicals thatdestroy the ozone layer�www.worldbank.org/montrealprotocol�.

Technical Assistance Trust FundsThrough these funds, the IFC carries

out a broad range of technicalassistance activities, from helpingpeople who want to start their ownbusinesses to develop projectproposals to helping with private-sector institution building�www.ifc.org/about/contacts/support/ta/ta.html�.

Critical Ecosystem Partnership Fund Creates strategic relationships for acomprehensive, coordinated approachto conservation challenges, such asmanaging protected areas,coordinating biodiversity corridors,training, and cross-border planning.

Civil society organizations, NGOs,community groups and private-sectorpartners involved in biodiversityconservation are eligible to apply forfunding �www.cepf.net/xp/cepf�.

I’M AN INVESTOR. CAN YOU HELP ME CHOOSE GOODCOMPANIES AND PROJECTS TO INVEST IN?There are various resources on ourwebsite where you can exploreopportunities for investors.

IPAnet Run by MIGA, it provides informationand analysis on the investmentenvironment and businessopportunities �www.ipanet.net�.

FDI Xchange A free e-mail service that providesprofiles of new investmentopportunities and businessenvironment analysis from

USEFUL CONTACTS

20 WORLD BANK GROUP

334220.Lot1 2/9/06 11:50 PM Page 20

emerging markets worldwide�www.fdixchange.com�.

Privatization Link This service features profiles of state-owned businesses being offered forsale in emerging markets�www.privatizationlink.com�.

Development Gateway ForeignDirect Investment Topic Page MIGA, together with the Bank�sForeign Investment Advisory Serviceand the United Nations Conference onTrade and Development, runs thiswebsite which shows the most recentinformation on foreign directinvestment, international business andmultinational companies�www.developmentgateway.org/fdi�.

Private Equity and Investment FundsIFC has helped to develop, structureand put into practice a number ofprivate equity funds to target varioussectors. These funds provide equityand quasi-equity funding to privatecompanies that meet certainconditions �http://www.ifc.org/ifcext/cfn.nsf/Content/Overview�.

Rapid Response Unit Provides advice on policy, currentinvestment situations andprivatization in developing countries�http://rru.worldbank.org�.

HOW MUCH HAS MY COUNTRY WON IN PROCUREMENTCONTRACTS? HOW CAN I TAKE PART?You can see the procurement contractswe award to individual countries onthe Contract Awards search page�www.worldbank.org/projects�.

You can find more information ondevelopment programs and projectson the Development Gateway�s AiDasite �http://aida.developmentgateway.org/AidaHome.do�.

The following websites containinformation on invitations to bid foror show an interest in contracts underprojects we have funded.

Development Gatewaywww.dgmarket.com

United Nations Development Business www.devbusiness.com

WHERE CAN I GET MORE INFORMATION ON BANKRESOURCES FOR CHILDREN AND YOUNG PEOPLE?The Bank has a website for childrenand youth called youthink!�youthink.worldbank.org� where youcan find information about globalissues that matter to young peopletoday. The site also has an area forteachers and students, a forum whereyoung people from around the worldcan share their ideas and concernsregarding development and amultimedia zone with games, quizzesand videos.

HOW CAN MY SCHOOL OR COMPANY ARRANGE A VISITTO THE WORLD BANK?In Washington, our Speakers Bureauprovides briefings for visiting groupson specific days throughout the year�www.worldbank.org/speakersbureau�.Outside of Washington, you cancontact your local World Bank office.

HOW CAN I FIND OUT WHAT YOU ARE DOING WITH CIVILSOCIETY?Information, links and materialsregarding our relationship with civilsociety throughout the world can befound in the following website:�www.worldbank.org/civilsociety�.

HOW CAN I FIND OUT WHAT YOU ARE DOING WITHMEMBERS OF PARLIAMENT?Through our Vice Presidency forEurope, we have supported thecreation of the ParliamentaryNetwork on the World Bank so thatwe work more closely withparliamentarians worldwide�www.pnowb.org�.

WHERE DO I GO FOR INFORMATION ON YOURPUBLICATIONS AND DOCUMENTS?We have a number of PublicInformation Centers around the world,where members of the public can findinformation and documents about theWorld Bank. We make thesedocuments available to the publicunder our public informationdisclosure policy�www.worldbank.org/disclosure�.

World Bank publications are availableon our website and can also beobtained from various distributorsworldwide�www.worldbank.org/publications�.

334220.Lot1 2/13/06 11:29 PM Page C3

WORLD BANK HEADQUARTERS

1818 H Street, NWWashington, DC 20433, USA

p: 202.473.1000f: 202.477.6391

e: feedback@worldbank.orgwww.worldbank.org

World Bank Group

MP/2M/1-2006

334220.Lot1 2/9/06 11:50 PM Page C4