The World Bank Group: Five Institutions

The World Bank Group is a partnership of five institutions. They are IBRD, IDA, IFC, MIGA and ICSID. The Group’s library guide says they work to create a world free of poverty on a livable planet.

The library guide does not date its size figures, and the page is stamped 7 October 2026. It lists 189 member countries and staff from more than 170 countries. It also lists offices in over 130 locations.

What does each institution do?

• IBRD gives financial products and policy advice to middle-income and creditworthy low-income countries.
• IDA offers grants and low-interest loans to low-income countries.
• IFC encourages the growth of the private sector in developing countries.
• MIGA provides political risk insurance, which it also calls guarantees, for projects in developing member countries.
• ICSID is called the world’s leading institution devoted to international investment dispute settlement, in the Group’s own words.

Where are the five based?

The Contacts page lists the World Bank, IFC, MIGA and ICSID in Washington DC. IDA is part of the World Bank. The addresses differ. The World Bank and ICSID are listed at 1818 H Street NW, and IFC’s principal office is at 2121 Pennsylvania Avenue NW. MIGA is listed at 1800 G Street NW, Suite 1200.

The ICSID Convention places ICSID’s seat at the principal office of the IBRD. The Administrative Council may move the seat to another place.

What is the difference between “World Bank” and “World Bank Group”?

“World Bank” means two institutions, IBRD and IDA. The IBRD financial statements say the World Bank consists of IBRD and IDA. “World Bank Group” means all five. Some pages and exam questions use “World Bank” loosely for the whole Group, as card 8 shows.

IBRD and IDA give financing, policy advice and technical assistance to governments of developing countries. IFC, MIGA and ICSID focus on strengthening the private sector in developing countries. The Annual Report 2026 says the Group works with clients as One World Bank Group.

All figures on this card come from the World Bank Group Annual Report 2026. The year is FY2026, which ended on 30 June 2026, and amounts are in US dollars.

What is the Group total?

The report puts the Group’s financing at $123.5 billion for FY2026. This covers loans, grants, equity investments and guarantees to partner countries and private businesses. Table 1 prints the total as 123,499 million dollars.

The report adds a five-year view. It says financing from the Group’s own resources rose from $98 billion to $123.5 billion over the last five years. Table 1 shows 97,963 million dollars for the Group in FY2022 and 123,499 million in FY2026.

What did each institution report?

Table 1 gives a row for each institution, in millions of US dollars. FY2025 means the year ended 30 June 2025. The report restated prior-year Group totals to exclude trust funds and financial intermediary funds. FY2025 here is as shown in the FY2026 report.

Each row has its own measure, so the table notes matter. The table prints the Group total on a separate line, and this lesson quotes that printed total. The four rows add up to 123,479 million, which is 20 million less than the printed 123,499. The report does not explain the difference, so do not add the rows to get the total.

How did each row change from FY2025?

These changes are our own arithmetic, derived from Table 1 of the Annual Report 2026. IBRD rose by 9,292 million dollars and IDA fell by 9,092 million. IFC rose by 3,693 million and MIGA rose by 1,088 million. This lesson gives no reason for any of these changes.

How much private money did the Group mobilise?

The report says the Group mobilised $112 billion in private capital in FY2026, up from $35 billion in fiscal 2022. The report calls this a more than threefold increase.

The IBRD is the International Bank for Reconstruction and Development. It was conceived in 1944 at the Bretton Woods conference in New Hampshire. The library guide says its initial aim was to help rebuild European countries devastated by World War II, as well as to help developing economies.

Who met at Bretton Woods in 1944?

Delegates from forty-four nations met at the Mount Washington Hotel on 1 July 1944. The meeting was formally the United Nations Monetary and Financial Conference, with 730 delegates. Henry Morgenthau of the US Treasury served as conference president.

Lord Keynes of the UK delegation led Commission II. That commission dealt with the proposal for a bank for reconstruction and development. India was among the active participants.

When did the IBRD actually come into being?

By 22 July 1944 the delegates had signed the Final Act. It included charters for both the IBRD and the IMF. The IBRD Articles of Agreement were ratified on 27 December 1945. The Bank’s archive says representatives from twenty-one countries met in Washington DC for this step and became its first members. Other records count more states that accepted within days, so read twenty-one as the archive’s figure.

The archive says the World Bank did not technically exist during the conference or just after it. So 1944 is the year of the conference. The year 1945 is the year of ratification.

Who does the IBRD lend to?

The Group’s page says the IBRD gives financial products and policy advice. Its clients are middle-income and creditworthy low-income countries. The financial statements say all IBRD loans are made to, or guaranteed by, member countries. They add that the IBRD may also lend to IFC without a guarantee. The June 2026 statements say the IBRD is owned by its 189 member countries.

How does the IBRD raise its money?

The library guide says the IBRD raises most of its funds on the world’s financial markets. It sells World Bank bonds to investors, and the guide describes the IBRD as AAA-rated. It says the IBRD’s goal is development impact rather than profit maximization.

IFC stands for International Finance Corporation. A World Bank archive exhibit for IFC’s 60th anniversary calls it the World Bank’s private sector arm. The World Bank timeline dates IFC’s founding to 20 July 1956. It says IFC was created as an affiliate of the World Bank to encourage the growth of private enterprise. The same entry also records the announcement of IFC’s creation on that date.

Why was the IFC created?

The archive says IFC was created in 1956 in response to perceived capital limitations and structural challenges in the developing world. The archive calls IFC a catalyst for investment in private enterprise. IFC acts through its own investment and also stimulates private capital from other sources.

What were its early years like?

• 1956: IFC was initially authorised to have a total capital of $100 million, but it was restricted from equity financing.
• 1957: IFC made its first loan. The $2 million went to a Brazilian affiliate of Siemens to make electrical equipment.
• 1959: IFC initiated its first syndication loan. It mobilised $2 million from a group of banks for a Brazilian pulp and paper company.
• 1961: A charter revision let IFC make equity investments.

How is the IFC different from the IBRD?

IFC is a legal entity separate and distinct from the IBRD. The FY2025 statement says membership in IFC is open only to member countries of the IBRD. It also says that at 30 June 2025, 186 member countries held IFC’s entire share capital.

The same statement says IFC provides financing primarily to the private sector. IFC generally charges market-based rates for its loans. Unlike most other development institutions, IFC does not accept host government guarantees of repayment.

IFC is not liable for the obligations of the other Group institutions. The library guide says IFC raises virtually all its lending funds by issuing debt in international capital markets.

IDA is the International Development Association, and its own page says it is part of the World Bank. It supports low-income countries with grants and concessional loans. IDA’s Articles of Agreement became effective in 1960.

Why was IDA needed?

The IDA history page says the IBRD was set up in 1944 to help Europe recover from the war. By the 1950s the poorest developing countries needed softer terms than the Bank could offer, to afford the capital for growth.

How was IDA launched?

IDA was launched on 24 September 1960 with initial funding of $912.7 million. It had 15 signatory countries, and India was one of them. China, Pakistan and the United States were among the others.

Within its first eight months IDA had 51 members. In 1961 Honduras became the first country to receive an IDA credit. The credit was $9 million for highway development and maintenance.

As at 19 October 2024, the history page counted 175 member countries.

What are IDA’s lending terms?

IDA says its lending terms are highly concessional, meaning IDA credits carry no or low interest charges. Most IDA resources come as highly concessional loans, called credits, or as grants. A portion is offered on non-concessional terms to eligible recipients.

Terms vary by country, based on an annual assessment. The assessment looks at GNI per capita, creditworthiness for IBRD borrowing, risk of debt distress and population size.

Which countries can use IDA?

IDA’s financing page says a country gets access if it is in relative poverty and/or lacks creditworthiness for IBRD borrowing. Relative poverty means income per capita below the IDA operational cut-off, which is $1,365 in fiscal 2027.

The IDA overview page, updated 25 April 2026, says IDA serves 78 countries. It adds that 35 countries no longer borrow from IDA, including China, India, South Korea and Vietnam.

The IDA financing page lists Ethiopia first among FY26 top borrowers, at 3,870 million dollars. Nigeria is listed next with 2,410 million and Kenya with 1,700 million. That page prints IDA’s FY26 commitments as $30.53 billion, while Table 1 shows 30,774 million. This lesson uses Table 1 for totals and does not reconcile the two.

Where does IDA’s money come from?

The library guide says donor governments fund IDA largely through contributions. They meet every three years to replenish its funds. Additional funds come from IBRD net income, and repayments of IDA credits go into issuing new credits.

The Annual Report 2026 says the IDA21 policy package took effect on 1 July 2025 with support from 57 donors.

MIGA is the Multilateral Investment Guarantee Agency. The Group’s page says it provides political risk insurance, also called guarantees. The cover is for projects in developing member countries. The Annual Report 2026 says MIGA houses the World Bank Group Guarantee Platform.

How was MIGA set up?

MIGA’s history page says the idea of a multilateral political risk insurer dates back to 1948. The Convention page says it was submitted to the IBRD Board of Governors on 11 October 1985. It went into effect on 12 April 1988.

The history page says the Board of Governors began the process in September 1985. On 12 April 1988 an international convention established MIGA. It opened as a legally separate and financially independent entity, with membership open to all IBRD members. The agency began with capital stock of $1 billion and 29 original members.

Which risks does MIGA cover?

MIGA’s guarantee menu lists breach of contract, currency inconvertibility and transfer restriction, and war and civil disturbances. The MIGA Convention (Article 11) also lists expropriation and similar measures as a covered risk, and the menu here is shorter than the treaty list. MIGA Convention. The same menu also lists capital optimization under political risk guarantees. The Annual Report 2026 describes MIGA’s mandate as non-commercial risk guarantees. These include political risk insurance, credit enhancement products and trade finance guarantees.

MIGA’s solutions menu also lists trade finance guarantees and credit guarantees. The history page says MIGA has grown from political risk insurance to a full guarantee platform.

How large is MIGA’s record?

The Annual Report 2026 carries a Board statement. It commends MIGA for passing $100 billion in cumulative guarantee issuance since 1988. The report notes this was achieved with just $366 million of paid-in capital.

In FY2026 MIGA’s gross issuance was 10,551 million dollars in Table 1, counting only MIGA’s own balance sheet.

ICSID is the International Centre for Settlement of Investment Disputes. The Convention says its purpose is to provide facilities for conciliation and arbitration of investment disputes. These disputes are between Contracting States and nationals of other Contracting States. The Annual Report 2026 adds mediation to the list of facilities.

Who decides the dispute?

ICSID provides the facilities. In arbitration, a Tribunal decides the dispute. Article 42 says it decides under the rules of law the parties agree. If the parties agree none, it applies the law of the Contracting State and any applicable international law.

How was the Convention made?

The Executive Directors of the IBRD formulated the Convention. On 18 March 1965 they sent it to World Bank member governments for signature and ratification. It entered into force on 14 October 1966. By then 20 countries had ratified it. So 1965 and 1966 mark two different steps.

Does joining force a state into arbitration?

No. The preamble says no Contracting State is under any obligation to submit a particular dispute by the mere fact of ratifying. The parties must consent. It adds that mutual consent to submit a dispute is a binding agreement. Any arbitral award must be complied with.

Who governs ICSID?

The Administrative Council is the governing body. It has one representative from each Contracting State. Under Article 7, each member has one vote. Matters are decided by a majority of the votes cast, unless the Convention provides otherwise.

The President of the World Bank Group chairs the Council, and the Chair has no vote. The Council adopts the rules of procedure for conciliation and arbitration under Article 6. A Tribunal, not the Council, decides a dispute.

How big is ICSID’s membership?

Honduras signed the Convention on 6 March 2026, becoming the 166th signatory State. By 30 June 2026 there were 166 signatories, of which 158 were Contracting States. Signatory States and Contracting States are different counts: 166 signed and 158 ratified.

By the early 2000s, 149 States had signed and 132 had ratified. The report says there is no cost to join or keep membership. It also says ICSID membership is a positive factor in MIGA’s risk assessment.

Three UPSC Civil Services Preliminary questions link to the Group. They cover the IFC Masala bond, the Global Economic Prospects report and the Global Infrastructure Facility. This card sets out the facts behind each.

What was the IFC Masala bond?

The Indian Economic Service says the first Masala bonds were issued on 10 November 2014 under IFC’s $2 billion offshore rupee programme. The bond ran for 10 years and raised 10 billion rupees, equal to about $163 million. The yield was 6.3 percent. Ten billion rupees is Rs 1,000 crore, the figure Business Standard reports.

The bonds were listed on the London Stock Exchange. They were the first rupee bonds listed there and the longest-dated in the offshore rupee market. IFC had earlier issued offshore rupee bonds of three, five and seven years, which were not called Masala bonds.

The proceeds were to support a forthcoming infrastructure bond issue by Axis Bank in India. The note says settlement is in US dollars. The bonds are pegged to the rupee, so investors take the currency risk directly.

On 29 September 2015 the Reserve Bank of India set a framework for rupee-denominated bonds issued overseas. The note says the term Masala bonds now extends to any rupee-denominated bond issued to overseas buyers.

The sources support statement 1 loosely and the rupee-denominated debt part of statement 2. None of them speaks of public and private sector borrowers. The official key was not opened.

Here “World Bank” is used loosely for the wider Group. The archive calls IFC the World Bank’s private sector arm. In strict terms, “the World Bank” is IBRD plus IDA, and IFC is a legal entity separate from the IBRD (card 1).

What is the Global Economic Prospects report?

The report calls itself a World Bank Group Flagship Report. It examines global economic developments and prospects, with special focus on emerging market and developing economies. It appears twice a year, in January and June, and the edition used here is June 2026.

The report calls itself a World Bank Group Flagship Report and carries a World Bank copyright line. By elimination from the sources, the World Bank option fits. The other three options name other banks.

What is the Global Infrastructure Facility?

The G20 leaders met at Brisbane, and their communique of 16 November 2014 welcomed the launch of the World Bank Group’s Global Infrastructure Facility. The leaders said they welcomed it to strengthen infrastructure and attract more private sector investment in developing countries.

A World Bank blog dated 15 April 2024 says the G20 established the GIF in 2014. The blog calls it the only global platform dedicated to infrastructure project preparation. It works with 11 multilateral development banks and a private sector Advisory Council. The council’s investors hold over $18 trillion in assets.

The blog adds figures for the last 10 years. The GIF helped prepare 172 projects in 68 countries. Twenty-seven projects reached commercial close. For every $1 of preparation support, the GIF mobilised over $100 in private capital at financial close.

The sources fit the World Bank option. The G20 text names the GIF a World Bank Group facility. The blog ties it to preparing infrastructure projects for private investment. None of the opened sources links the GIF to an ASEAN, OECD or UNCTAD body.

This card puts the five side by side. Then it lists the slips that are easy to make.

How do the five compare?

Which slips are easy to make?

• Bank or Group. “World Bank” is IBRD plus IDA, while “World Bank Group” is all five.
• Not in the Group. The WTO is a separate body, established on 1 January 1995 and is based in Geneva.
• 1944 or 1945. The Bretton Woods conference was in 1944, and the IBRD Articles were ratified in 1945.
• 1965 or 1966. The ICSID Convention was formulated in 1965 and entered into force in 1966.
• Facilities or decisions. ICSID provides facilities, and a Tribunal decides the dispute.
• IFC and guarantees. IFC does not accept host government guarantees of repayment. The IBRD lends to, or against the guarantee of, member countries.
• Wrong parent. The Global Economic Prospects report and the Global Infrastructure Facility are World Bank Group products. The sources do not support the Asian Development Bank options in the UPSC questions.