Jim Yong Kim, the President of World Bank on 1 March 2014 announced that the bank would nearly double its lending capacity to boost support for middle countries like India, Brazil, China, Mexico and Indonesia. The announcement was made at the Council on Foreign Relations in Washington because the bank thinks that these countries would provide an insight to poorer countries in solving their problems like poverty.
In the announcement, Jim Yong Kim said that these five countries will benefit by being able to borrow another 2.5 billion dollars a year over and above their current limits. He also said that this increase in lending capacity will boost annual lending to middle income countries from the current 15 billion dollars a year to 26-28 billion dollars.
The Council on Foreign Relations in Washington was held to outline internal reforms, new cost savings and possible hydroelectric dam project on the Congo River that could increase Africa’s electricity supply by about 50 percent.
About World Bank Group and its work
The World Bank is a financial and technical assistance institution for developing counties around the world. It has set two goals to achieve by 2030 and they are
• End extreme poverty by decreasing the percentage of people living on less than $1.25 a day to no more than 3 percent
• Promote shared prosperity by fostering the income growth of the bottom 40% for every country
It has five institutions that are managed by their member countries and as a whole it forms the World Bank Group. The five institutions are
• IBRD: The International Bank for Reconstruction and Development (IBRD) that lends to governments of middle-income and creditworthy low-income countries.
• IDA: The International Development Association (IDA) that provides interest-free loans—called credits— and grants to governments of the poorest countries.
• IFC: The International Finance Corporation (IFC), is the largest global development institution focused exclusively on the private sector.
• MIGA: The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 as a member of the World Bank Group to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders.
• ICSID: The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.
The World Bank was established in 1944 and at present have more than 120 offices worldwide.
• World Bank is headquartered in Washington DC
• Jim Yong Kim became the 12th president of the World Bank Group on 1 July 2012
Who: World Bank
When: 1 April 2014