The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects. It consists of two main institutions:
1. International Bank for Reconstruction and Development (IBRD): The IBRD focuses on middle-income and credit-worthy low-income countries. It provides loans and technical assistance to finance development projects such as infrastructure, education, healthcare, and environmental protection.
2. International Development Association (IDA): The IDA provides concessional loans and grants to the world’s poorest countries. It aims to reduce poverty by financing projects and programs that improve economic prospects and quality of life for the poorest populations.
Other parts of the World Bank Group (WBG)
3. International Finance Corporation (IFC): The IFC is the largest global development institution focused exclusively on the private sector in developing countries. It provides investment, advisory services, and asset management to encourage private sector development and reduce poverty.
4. Multilateral Investment Guarantee Agency (MIGA): MIGA promotes foreign direct investment (FDI) into developing countries by providing political risk insurance and credit enhancement to investors and lenders. This helps mitigate risks associated with investments in emerging markets and contributes to economic growth and development.
5. International Centre for Settlement of Investment Disputes (ICSID): ICSID is an international arbitration institution that facilitates the resolution of disputes between investors and host countries. It provides a forum for resolving investment disputes through arbitration and conciliation. India is not a member of ICSID.
Possible reasons:
While India has not stated the specific reasons for its absence from the ICSID Convention, in 2000, the Indian Council for Arbitration recommended to the Indian Ministry of Finance that India refrain from becoming a signatory to the ICSID Convention on the following grounds:
(1) the Convention’s rules for arbitration leaned towards the developed countries and
(2) there is no scope for a review of the award by an Indian court even if it violates India’s public policy.
Related facilities (World Bank)
International Finance Facility for Immunisation (IFFIm): International Finance Facility for Immunisation Company (IFFIm) is a multilateral development institution created to accelerate the availability of predictable, long-term funds for health and immunization programs through the GAVI Alliance (earlier Global Alliance for Vaccine and Immunisation) in 70 of the poorest countries around the world. IFFIm was created as a development financing tool to help the international community achieve the Millennium Development Goals. The World Bank is the treasury manager of IFFIm.
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