The World Bank is an international institution that has the duty to provide poorer countries with finance to reduce poverty. The headquarters are located in Washington, D.C. furthermore, the World Bank is consisting of two institutions and each one has its different strategies and goals to achieve. These institutions are: International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA).
Moreover, the World Bank has a very vital source for financial and technical assistance to countries where people are suffering from poverty by helping these countries through its financial ability as well as experience. Its major concentrations are, ...view middle of the document...
THE FORMAL AND INFORMAL STRUCTURE OF THE ORGANIZATION:
The World Bank is tied to the United Nations and it was established in 1945. It is a multi-lateral financial institution that is owned by a number of countries and governed by elected individuals that each country choose to have. Furthermore, member countries exercise their judgments and views through the Board of Governors, which is consisting of 185 members; each is from a different country. Moreover, the Bank is a huge organization that employs over 10,000 people in headquarter in Washington D.C. and the regional Units worldwide. There are 4 overseen institutions that tied to the World Bank to function in different ways; the first branch is; The International Bank for Reconstruction and Development (IBRD); the role of the IBRD is to borrow funds and lend it on to qualifying member governments for agreed projects. The second branch is the International Development Agency (IDA); its role is similar to the IBRD role however, and the IDA is more like an aid agency that mainly focuses on Africa and South Asia. The third component is the International Finance Corporation (IFC); and its main purpose is to lend funds to private sectors without governmental guarantee and it also has equity shares within the private sector enterprises. And the fourth and final component is the Multinational Investment Guarantee Agency (MIGA); this organization protects foreign investors in the developing countries from expropriation as well as repatriation.
THE RELATIONSHIP TO THE NATION-STATE:
The world bank as a financial body which provides loans to poorest countries in order to make them stand on their feet, requires many things in return of the loans they give out to those countries. For instance, if the bank funds a country that is in need, that means this country has to pay them back within an agreed period of time in addition to the high interest that reaches high levels that the Bank would request before providing loans. Moreover, it has been argued that the World Bank is funding countries that are not only undemocratic but also corrupted. For example, the amount of...