International Bank for Reconstruction and Development
The International Bank for Reconstruction and Development (International Bank for Reconstruction and Development, IBRD) is part of the World Bank Group and the World Bank in the narrow sense.
History of establishment
The establishment of the IBRD as part of the World Bank Group was decided in July 1944 at the Monetary and Financial Conference of the United Nations, Bretton Woods, and on 27 December 1945, the IBRD was established. On 25 June 1946, the bank with 12 billion U.S. dollars took initial capital at its headquarters in Washington, DC (USA) on their business. The bank was created in view of the expected postwar great need for long-term capital for the reconstruction and economic development of its member countries. First, they put their funds predominantly for the reconstruction of Europe. After the start of the American economic aid in favor of Europe they could concentrate from the late forties to the developing countries.
Germany decided on 28 July 1952 accession to the IBRD and was on 14 August the 53rd member.
Finance and use
As the official multilateral institution whose equity shares of Member States shall be kept in relation to its economic strength, the IBRD is able to pick up money on the capital markets on very favorable terms, and transmit them to their borrowing members. Until 30 June 2003, 184 countries had subscribed to equity shares of a total of 189.5 billion U.S. $. The German share of it was 4.61 % ( voting rights 4.49% ).
The IBRD financed the loans (duration: 15 to 20 years, three to five free years), which it awards, mostly from its own borrowings in the international capital markets, but also from loan repayments and a small portion of payments from the members on the share capital as well as from net earnings. In 2003 the World Bank for about 11.2 billion U.S. $ loan granted to finance 99 projects and programs in 39 countries.
Mandate and mission
The main task of the IBRD is to promote economic development in developing and transition countries. The focus is poverty reduction, environmental protection and the promotion of private sector development. Main instrument is the granting of long-term loans at near-market rates. This investment projects, technical assistance and economic reform programs are funded. The main basis for the scope and focus of this financing, the Country Strategy ( Country Assistance Strategy - CAS), which is developed by the World Bank together with the recipient country and based on its own development strategies.
Structure and legal status
Just as the International Monetary Fund ( IMF) and the World Bank is a specialized agency of the United Nations. Members in the IBRD and can only States that already belong to the IMF and have taken all associated obligations. Membership in the IBRD and is itself a precondition for joining the International Development Association (IDA ), International Finance Corporation (IFC ), Multilateral Investment Guarantee Agency ( MIGA) and International Centre for Settlement of Investment Disputes (ICSID ).
The supreme organ of the IBRD (as with IFC, IDA and MIGA) is the Governing Council, for which each member country a Governor (usually the Economic or Finance ) and one alternate appointed. The Executive Board is in the IBRD, IDA and IFC since the fall of 1992 from 24 persons; which are five ( including Germany ) appointed by the members with the highest equity shares, the remaining 19 are elected every two years by the Governors of other member countries. With the exception of the People's Republic of China, Russia and Saudi Arabia, who are represented by their own Executive Director, the remaining elected directors to several member countries represented each ( constituencies ). The Executive Directors take on - on behalf of their governors - the daily operations true.
Current business is conducted by the President in accordance with decisions of the Board. He is elected by the Executive Directors for five years and may not even be Governor Executive Director. He chairs the Board of Directors ( non-voting, except in the case of a tied vote ) and is chief of staff. President of the IBRD and IDA and MIGA its affiliates was the least of the 2005-2007 American Paul Wolfowitz. The IFC and MIGA are made in the organizational features in that they have their own, separate from the IBRD and IDA staff and its own executive vice president.
In voting in the Board of Governors and Board of Directors, the voting weight of each country depends essentially on the amount of its capital share. As with the IMF have all members - over a certain number of basic votes out - voting rights according to their financial participation.