The World Bank (UN structure)

How does the World Bank get its money?

• We raise money in several different ways to support the low interest and no interest loans (credits) and grants that the World Bank (IBRD and IDA) offers to developing and poor countries.
  

  The World Bank gets its money from selling IBRD AAA-rated bonds in the world's financial markets. IBRD bonds are purchased by private and institutional investors In North America and other countries. While selling bonds can make money for the IBRD, a greater portion of money from from lending the capital. This capital consists of reserves built up over the years and money paid in from the Bank's 186 member country shareholders.
  

  IDA, the world's largest source of interest-free loans and grant assistance to the poorest countries IDA accounts for nearly 40% of our lending.
  

• What is the World Bank, and what does it do?
  
• The World Bank lends money to poor countries to help them develop economy. It also helps with countries' health problems, and gives them financial support. The World Bank's goal is to overcome poverty and help countries in need of financial help.
  
  
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• Who owns the World Bank?
  
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• The World Bank is like a cooperative in which 186 member countries are shareholders.
  
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• How does a country become a member of the World Bank?
  
• A country must first join the International Monetary Fund (IMF) prior to becoming a member of the Bank. Membership in IDA, IFC and MIGA is conditioned upon membership in IBRD.
  
• Does the World Bank make a profit and, if so, what is done with it?
  
• The profits that the World Banks make is earned from the interest rates charged on some loans and from fees charged for some of our services. Some of the surplus goes to IDA—the part of the Bank that provides grants and interest free loans to the world's poorest countries. The rest of the surplus is either used for debt relief for heavily indebted poor countries, or added to financial reserves.
  

  Why is there so much criticism of the World Bank, and why are there protests against it?
  

  People often misunderstand the purpose of the World Bank and what it's trying to achieve. Some people think that the World Bank is the cause for the problems occurred from globalization, like the increased flow of goods and services- which is a financial problem that has nothing to do with and cannot be controlled by the World Bank. Protests think that the cause of highly indebted countries is also the World Bank and countries will get even poorer when they have to face both financial issues and paying debts. But the World Bank has set up an organization to help countries pay debts.