Explain the organisational structure and working of the World Bank.

The World Bank is an international financial institution that provides financial and technical assistance to developing countries for development projects and initiatives. Established in 1944, the World Bank operates as a group of five closely associated institutions, each with specific roles and functions. The primary goal is to reduce global poverty and promote sustainable economic development.

1. Organizational Structure:**
The World Bank Group comprises five institutions:

• International Bank for Reconstruction and Development (IBRD): The IBRD is the main lending arm of the World Bank Group. It provides financial and technical assistance to middle-income and creditworthy low-income countries. The IBRD raises funds through issuing bonds in international financial markets.

• International Development Association (IDA): The IDA is the concessional arm of the World Bank, providing low-interest loans and grants to the world's poorest countries. IDA credits are interest-free, and repayments are stretched over an extended period.

• International Finance Corporation (IFC): The IFC focuses on promoting private sector investment in developing countries. It provides loans, equity, and advisory services to support private enterprises, aiming to stimulate economic growth and job creation.

• Multilateral Investment Guarantee Agency (MIGA): MIGA provides political risk insurance and credit enhancement to encourage foreign investment in developing countries. This helps mitigate risks for investors and lenders, fostering investment in regions that might otherwise be perceived as high-risk.

• International Centre for Settlement of Investment Disputes (ICSID): ICSID provides facilities for the arbitration and conciliation of investment disputes between governments and foreign investors. It aims to promote international investment and provide a forum for resolving disputes.

2. Working of the World Bank:**
The World Bank operates by providing financial and technical assistance to member countries through loans, grants, and advisory services. The process typically involves the following steps:

• Request for Assistance: A member country expresses its interest in receiving financial and technical assistance for a specific project or program. The country outlines its development goals and the areas where assistance is needed.

• Project Appraisal: The World Bank conducts a thorough appraisal of the proposed project, assessing its feasibility, potential impact, and sustainability. This involves technical, economic, social, and environmental assessments.

• Negotiation and Agreement: Once the project is appraised, negotiations take place between the World Bank and the borrowing country to finalize the terms of the financial assistance, including loan conditions, interest rates, and repayment schedules.

• Project Implementation: Upon agreement, funds are disbursed, and the borrowing country begins implementing the project with the support of the World Bank. The Bank monitors the progress of the project to ensure it aligns with the agreed-upon objectives and standards.

• Evaluation and Repayment: After completion, the project undergoes an evaluation to assess its impact and effectiveness. Borrowing countries are responsible for repaying the loans, and the terms vary based on the institution within the World Bank Group providing the assistance.

The World Bank's operations are guided by its overarching mission to reduce poverty, promote shared prosperity, and address global challenges. Through its diverse set of institutions and instruments, the World Bank plays a crucial role in supporting economic development, infrastructure projects, and poverty reduction efforts across the globe.