The World Bank founded?

The World Bank is an institution created by the governments of the United States of America and Britain, at the end of the Second World War. The World Bank provides vital financial and technical assistance to developing countries around the world. World Bank  helps the governments of developing countries to fight poverty by providing them with money and technical expertise that would be required for a wide range of projects—such as education, health, infrastructure, communications, government reforms and for many other purposes. The World Bank was created in order to benefit all trading nations. The goal of the World Bank was to combine all the countries into a system of rewards and penalties.

 Who owns the World Bank?

The World Bank is not a private institution that can be owned by a specific person. It is like a cooperative institution whose shareholders are the 187 member countries. Voting power on the Bank's board is based on how much each of its members has contributed to the bank's capital. In simple words, it means that the countries with the greatest financial contributions get to play a major role in the Bank's decision making process. The US government holds 20 per cent of the vote and is represented by a single Executive Director. The 47 sub-Saharan African countries, in contrast, have two Executive Directors and hold only seven per cent of votes between them.

Why was the World Bank founded?

The World Bank  is the largest public development institution in the world, lending around US$ 25 billion a year to developing countries. The main purposes of the Bank are:

To assist in the reconstruction and development of territories of members by facilitating the investment of capital for productive purposes,

To ensure growth of international trade on a long-term and maintain a balance in payments by encouraging international investment, thereby assisting in raising the productivity, t

he standard of living and conditions of labor in their countries.

What is meant by World Bank group?

The term "World Bank Group" incorporates five closely associated entities that work collaboratively toward poverty reduction:

The World Bank 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 Settlement of Investment Disputes (ICSID).

What is austerity program in World Bank?

The purpose of the World Bank is to lend money to needy countries, but these loans come with a policy that normally calls for some type of restructuring. This policy is known as the austerity program. The requirements of most austerity programs include limited government spending, limited domestic consumption and limited amounts of imports. The main problem with austerity program is that the poorer people of that country are affected the most. The countries that are being given money are told that they need to be able to pay back the loan within a certain period of time. This indirectly means that there are cut backs that need to be made by the borrowing country. Thus the usual mistake the borrowing country will do is instead of cutting military expenses, other parts of the national budget that addresses the needs of the poor, such as food subsidies, expenditure for clean water, health care and education are reduced. This affects the poor people in multiple ways.

Sources:innovateus

Official Website: http://www.worldbank.org