The World Bank is divided into 14 regions, each with its own unique set of challenges and opportunities for development. These regions are the building blocks of the Bank's work around the world.
Africa is the second-largest region, home to 47 countries and a population of over 1.3 billion people. The region faces significant development challenges, including poverty, conflict, and a lack of access to basic services like healthcare and education.
In Africa, the World Bank focuses on supporting countries to achieve the Sustainable Development Goals, including reducing poverty and improving access to clean water and sanitation. The Bank works closely with governments, civil society, and the private sector to identify and address the region's development challenges.
The World Bank's regions are a key part of its strategy to promote global development and reduce poverty. By working with countries in each region, the Bank aims to create opportunities for economic growth and improve the lives of millions of people around the world.
World Bank Regions
The World Bank Regions are working to promote regional integration and cooperation in various parts of the world. In South Asia, they're helping countries develop cross-border solutions to shared challenges, strengthen regional institutions, and improve infrastructure and connectivity.
One notable example is the potential for Bangladesh and India to increase their GDP by nearly 17 percent and 8 percent, respectively, if they establish better transport connectivity. This is according to the World Bank's Connecting to Thrive report.
The World Bank is also supporting regional integration in Sub-Saharan Africa, which has been hit hard by the COVID-19 pandemic. Despite a recession, the region's economic activity is expected to rebound to 2.8 percent in 2021 and 3.3 percent in 2022, driven by strong agricultural growth and rapid recovery in commodity prices.
Here's a breakdown of the World Bank's commitments and disbursements for South Asia:
Eastern and Southern Africa region
The Eastern and Southern Africa region received $15.6 billion in lending from the World Bank in fiscal 2021 for 100 operations.
This financing supported investments to respond to the impacts of COVID-19, protect livelihoods and create jobs, enhance food and water security, accelerate innovation, and promote inclusion.
The region's economic activity contracted by only 2.4 percent in 2020 due to the virus spreading more slowly than expected, strong agricultural growth, and rapid recovery in commodity prices.
The World Bank is supporting regional integration across the region to help countries respond to the pandemic and stimulate a green, resilient, and inclusive recovery.
In fiscal 2021, the Bank approved $15.6 billion in lending to the Eastern and Southern Africa region, including $1.5 billion in IBRD commitments and $14.1 billion in IDA commitments.
The Bank Group is also working to support cross-border approaches in fragile areas, such as the Sahel, the Lake Chad and Great Lakes regions, and the Horn of Africa.
Western and Central Africa
Western and Central Africa is a region where the World Bank has made significant investments. In fiscal 2021, the Bank approved $11.5 billion in lending.
The Bank's lending in the region included $500 million in IBRD commitments and $11.0 billion in IDA commitments. This funding supported 98 operations.
Revenue from Reimbursable Advisory Services agreements with one country was $0.7 million. The World Bank is helping countries in the region tackle the COVID-19 crisis by investing in health and expanding safety nets for vulnerable people.
To support recovery, the Bank is also helping to strengthen the social contract between citizens and governments, bolster job creation and economic transformation, improve human capital, empower women, and boost climate resilience.
Addressing Fragility, Conflict, and Violence
The World Bank is working to address fragility, conflict, and violence in several regions, including the Middle East and North Africa. This is a complex issue that requires a multifaceted approach.
Social and economic exclusion are key drivers of conflict and instability in the region, and the World Bank is supporting efforts to address these underlying issues. The Bank is working to strengthen resilience, especially for the most vulnerable and marginalized people.
In Lebanon, the World Bank is providing cash transfers to the country's poorest and most vulnerable people through the $246 million Emergency Cash Transfer COVID-19 Response Project. This project is helping to expand their access to social services.
The World Bank is also partnering with UN agencies in Yemen to expand access to critical services, including water, sanitation, transport, and energy. This is helping to boost women and children's health and nutrition.
In Jordan and Lebanon, the Global Concessional Financing Facility has mobilized $520 million to support Syrian refugees and host communities. This is a significant amount of funding that is making a real difference in the lives of many people.
The World Bank is also working to rebuild infrastructure in Iraq, including rebuilding three vital bridges across the Tigris River. This is helping to bring economic life back to Mosul and other areas affected by conflict.
Poverty Reduction and Development
The World Bank plays a crucial role in reducing poverty and promoting development in various regions. For the poorest developing countries, the bank's assistance plans are based on poverty reduction strategies, combining local analysis with the country's financial and economic situation to create a tailored plan.
The World Bank's Development Marketplace Awards grant program surfaces and funds development projects with potential for impact, scalability, and replicability. This program benefits social enterprises with projects that aim to deliver social and public services to groups with the lowest incomes.
The bank's advisory services, technical assistance, and analyses support countries' development goals. In Eastern and Southern Africa, the World Bank has been helping countries strengthen their social safety net programs to address poverty and promote economic resilience. In Comoros, a development policy operation is improving social protection by developing an electronic payment system and establishing a social registry.
Here are some key statistics on the World Bank's commitments and disbursements:
The bank's efforts are focused on protecting vulnerable people and livelihoods, particularly in regions such as Western and Central Africa, where it is providing $1.8 billion to scale up social safety nets and strengthen social protection measures.
Poverty Reduction Strategies
Poverty reduction strategies are crucial for helping the world's poorest countries develop and thrive. The World Bank's assistance plans are based on these strategies, combining local analysis with a country's financial and economic situation to create a tailored plan.
To achieve poverty reduction, the World Bank works closely with governments to identify priorities and targets. Governments then instigate aid efforts accordingly, with the World Bank providing funding through its International Development Association (IDA).
Forty-five countries pledged $25.1 billion in aid to the IDA, which distributes loans to 80 poorer countries. This funding is essential for the poorest developing countries, which rely heavily on IDA money.
The World Bank also organizes the Development Marketplace Awards, a grant program that funds development projects with potential for development impact. Grant beneficiaries are social enterprises that aim to deliver social and public services to groups with the lowest incomes.
Here are some examples of successful poverty reduction projects:
- In Togo, the World Bank is supporting emergency cash transfers to poor families affected by COVID-19.
- In Nigeria, the national social protection system is providing digital payments to 20 million people living in extreme poverty.
- In the Gambia, the National Nutrition Agency is supporting over 78,000 families in the country's poorest districts through cash transfers.
These projects demonstrate the World Bank's commitment to poverty reduction and its efforts to support the world's poorest countries.
Structural Adjustment
Structural adjustment policies were introduced by the World Bank in response to the 1979 energy crisis, which plunged many countries into economic crisis.
These policies aimed to reduce inflation and fiscal imbalance by enforcing policy changes, such as encouraging production, investment, and labour-intensive manufacturing, and altering the distribution of government resources.
Some countries with a strong institutional framework benefited from these policies, but for others, particularly in Sub-Saharan Africa, economic growth regressed and inflation worsened.
The World Bank's structural adjustment loans were criticized for reducing social spending and increasing the price of food by lifting subsidies.
In an effort to address these criticisms, the World Bank changed its policies to allow for social spending to be maintained and encouraged a slower transition to policies like transferring subsidies and price rises.
By the late 1980s, some international organizations began to question the effectiveness of structural adjustment policies in reducing poverty.
COVID-19 Pandemic
The World Bank has been actively involved in supporting low and middle-income countries during the COVID-19 pandemic, allocating $10.1 billion to supply 78 countries with a vaccine by June 2022.
The US Treasury has committed $667 million to the World Bank's global Pandemic Fund, which aims to address critical gaps in pandemic prevention, preparedness, and response capacities.
In Mongolia, the World Bank's $27 million COVID-19 Emergency Response and Health System Preparedness Project helped improve patient care and increase the facilities' diagnostic, laboratory, and treatment capacity.
The project provided medical and personal protective equipment to provincial and district hospitals across Mongolia, as well as central hospitals in cities.
The World Bank has also supported Mongolia's emergency response efforts by providing $51 million in additional financing to support fair and affordable access to COVID-19 vaccines.
This funding will support effective delivery through national and local roll-out plans, including a cold chain upgrade, logistical support, information campaigns, and staff training.
In addition, the World Bank has provided an extra $1 million grant to help the country supply more than 4 million pieces of personal protective equipment to healthcare providers and officers at high-risk screening points.
The World Bank's support has not only helped Mongolia respond to the pandemic but also mitigated its impacts on the country's education, social protection, governance, and small and medium enterprises.
History and Founding
The World Bank has a rich history that dates back to 1946 when it came into formal existence following international ratification of the Bretton Woods agreements. The Bretton Woods agreements emerged from the United Nations Monetary and Financial Conference held from 1–22 July 1944.
The bank's early operations commenced on 25 June 1946, and it approved its first loan on 9 May 1947, a significant amount of USD 250M to France for postwar reconstruction, which remains the largest loan issued by the bank to date in real terms. This loan marked the beginning of the bank's mission to provide financial assistance to countries in need.
The World Bank's foundation also laid the groundwork for other important initiatives, including the Osiander Committee established in 1951. The Osiander Committee was responsible for preparing and evaluating the World Development Report.
Country and Lending Groups
The World Bank is divided into several regions, each with its own unique characteristics and lending groups. The regions are Africa, East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, and South Asia.
Africa is home to 54 countries, with a population of over 1.3 billion people. It's the second-most populous region.
The East Asia and Pacific region is the most populous, with over 4.5 billion people, and is home to countries such as China and Indonesia. This region is also the most economically dynamic.
Europe and Central Asia is the region with the highest per capita income, with an average of $13,440. It's home to countries such as Germany and Russia.
Latin America and the Caribbean is a region with a rich cultural heritage and diverse geography. It's home to countries such as Brazil and Mexico.
The Middle East and North Africa is a region with a high level of income inequality. It's home to countries such as Egypt and Turkey.
South Asia is the region with the highest population growth rate, with an average of 1.2%. It's home to countries such as India and Pakistan.
Voting Power and Governance
The World Bank's voting power structure has undergone significant changes in recent years, with a focus on increasing the voice of developing countries. In 2010, China's voting power was increased, making it one of the top voting countries along with the United States, Japan, and Germany.
The voting power of developing countries like South Korea, Turkey, and Brazil was also increased, while some developed countries like the United States, Russia, and Saudi Arabia saw no change. This shift was aimed at making voting more universal and transparent.
Here are the top 10 countries with the most voting power at the World Bank: CountryVoting Power (%)United States15.85%Japan6.84%China4.42%Germany4.00%United Kingdom3.75%France3.75%India2.91%Russia2.77%Saudi Arabia2.77%Italy2.64%
This shift in voting power has led to increased representation for developing countries in the World Bank's decision-making processes.
Strengthening Governance
Strengthening governance is crucial for promoting transparency, accountability, and resilience in institutions and public agencies. It lays the foundation for higher and more sustainable economic growth.
In Angola, the government is improving fiscal policy by introducing clear targets and transparency requirements. This will help make public services more efficient and inclusive.
Strengthening institutions helps reduce the drivers and impact of fragility, conflict, and violence. The South Sudan Community Resilience and Local Governance Project is providing access to basic services for conflict-affected communities and returning refugees.
Here's a snapshot of the Bank's commitments to strengthening governance and transparency in the region:
The Bank is also supporting Sudan's reform agenda to make its economy more competitive and transparent. Sudan cleared its arrears to IDA in March 2021, enabling its full reengagement with the Bank Group after nearly three decades.
Strengthening local governments' capacity to deliver services and engage with citizens is key to renewing the social contract. In Jordan, a new $500 million Program-for-Results aims to strengthen public and private investment and help the country capitalize on emerging opportunities for recovery.
Voting Power
Voting power is a crucial aspect of governance, and the World Bank is no exception. In 2010, voting powers were revised to increase the voice of developing countries, notably China, which now holds 4.42% of the voting power.
The countries with the most voting power are the United States (15.85%), Japan (6.84%), China (4.42%), Germany (4.00%), the United Kingdom (3.75%), France (3.75%), India (2.91%), Russia (2.77%), Saudi Arabia (2.77%), and Italy (2.64%). Most developed countries' voting power was reduced, along with a few developing countries such as Nigeria.
The changes were made to make voting more universal, with standards, rule-based objective indicators, and transparency. Developing countries now have a greater voice in the "Pool Model", backed by Europe.
Here's a list of the top 20 countries by voting power in the World Bank institutions as of December 2014 or March 2015:
Regional Integration and Development
Regional Integration and Development is crucial for the growth and prosperity of countries in various regions.
The World Bank is working with countries in South Asia to develop cross-border solutions to shared challenges, strengthen regional institutions, improve infrastructure and connectivity, advance trade policy, and build resilience to climate change and disasters.
In South Asia, the World Bank's portfolio of operations under implementation as of June 30, 2021, is $57.5 billion.
The World Bank is also working with countries in Latin America and the Caribbean to promote regional integration and cooperation.
In Latin America and the Caribbean, the World Bank's Connecting to Thrive report analyzed the barriers to regional transport integration and found that Bangladesh and India could increase their GDP by nearly 17 percent and 8 percent, respectively, if they establish better transport connectivity.
The World Bank is also providing technical assistance to strengthen risk-informed policy making and financial protection from natural hazards in the Caribbean.
Here's a breakdown of the World Bank's commitments and disbursements in South Asia and Latin America and the Caribbean:
The World Bank is also working on comprehensive social protection reform in Brazil to improve resilience to economic shocks, including the pandemic.
Climate Change and Sustainability
Climate change and sustainability are major concerns for many regions around the world. The World Bank is working to address these issues through various initiatives. In the Sahel region, the Bank is investing $5 billion over five years to restore degraded landscapes, improve agricultural productivity, and promote livelihoods.
The Bank is also supporting the Sahel's pastoralists through the Regional Sahel Pastoralism Support Program, which has benefited over 2 million people since 2015. This program has improved animal health, mitigated conflicts, and facilitated access to markets for herders and their families.
Some of the specific initiatives in the Sahel region include:
- Improving natural resource management and animal health
- Mitigating conflicts and facilitating access to markets
- Ensuring crisis preparedness and response
- Creating over 180 water points along migration routes
- Developing sustainable landscape management plans covering over 5 million hectares of pastoral areas
In other regions, the Bank is also working to address climate change and sustainability. In South Asia, for example, the Bank is helping countries implement renewable energy solutions and mobilize private sector investment. In Pakistan, a $550 million project is supporting the country's transition to renewable energy resources.
Sahel's Pastoralists and Climate Change
The Sahel region is facing a significant challenge due to climate change, affecting the livelihoods of millions of people who depend on pastoralism. Over 2 million people have benefited from the Regional Sahel Pastoralism Support Program since 2015.
The program is working to preserve pastoral systems in six countries: Burkina Faso, Chad, Mali, Mauritania, Niger, and Senegal. It focuses on improving natural resource management and animal health, mitigating conflicts, facilitating access to markets, and ensuring crisis preparedness and response.
The program has made significant progress in improving animal health, with over 200 million animals vaccinated and nearly 300 vaccination parks constructed or rehabilitated. This has helped reduce the risk of disease outbreaks and improved the overall health of the animals.
The program has also helped manage scarce natural resources, creating over 180 water points along migration routes and sustainable landscape management plans covering more than 5 million hectares of pastoral areas. This has improved conditions for herders and their families, allowing them to continue their traditional way of life.
Here are some key statistics from the program:
The program has also helped pastoralists access markets and boost their commercial activities and incomes by building and rehabilitating nearly 70 livestock markets and a dozen slaughterhouses. This has improved the overall well-being of the pastoralists and their families.
Green and Sustainable
The World Bank Group is taking action to promote sustainable green growth. They're providing immediate fiscal relief to governments while continuing to promote transparency and accountability.
In Nigeria, the World Bank is helping the government implement fiscal measures to promote transparency and accountability. In Cameroon, they're strengthening community accountability mechanisms in fragile contexts.
The World Bank Group has committed $5 billion over five years to restore degraded landscapes, improve agricultural productivity, and promote livelihoods across 11 countries in the Sahel, Lake Chad, and Horn of Africa regions. These efforts aim to support countries as they recover from the pandemic while also addressing the impacts of biodiversity loss and climate change.
The Regional Sahel Pastoralism Support Program is working to preserve pastoral systems in six countries. Since 2015, more than 2 million people who depend mainly on pastoralism have benefited from this project.
The program has also helped manage scarce natural resources, improving conditions for herders and their families. They've created over 180 water points along migration routes, sustainable landscape management plans covering more than 5 million hectares of pastoral areas, and more than 1,400 kilometers of corridors for animals.
Here are some key statistics on the World Bank Group's commitments and disbursements for the Sahel region:
The World Bank Group is also working to support a green and sustainable recovery in Latin America and the Caribbean. They're helping countries rebuild better while protecting the poorest people, who are especially vulnerable to the effects of climate change.
In Uruguay, more than 1,800 kilometers of highways were rehabilitated from impacts of tornadoes, heavy rainfall, droughts, and heat waves. In Colombia, they provided $1.4 billion through a series of programs to sustain access to critical infrastructure services amid the COVID-19 crisis.
The World Bank Group is also supporting a green transition in other regions, such as South Asia and the Western Balkans. They're providing knowledge products and financing to support countries in moving toward low-carbon economies, renewing natural capital, and strengthening resilience to natural disasters and climate change.
In Uzbekistan, the Bank worked with IFC and MIGA to help mobilize private financing for solar energy. They're also supporting the reform of policy and institutional frameworks for climate change and air pollution in Serbia through their knowledge activities and lending.
The World Bank Group is helping countries like Morocco and Egypt move toward a green, resilient, and inclusive recovery. In Morocco, they analyzed ways to strengthen resilience and inclusion in recovery efforts, informing the $250 million Morocco Green Generation Program-for-Results.
In Egypt, they're helping the government with sound and effective deployment of electric mobility, including deploying and operating electric buses in Cairo.
Sources
- https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups
- https://en.wikipedia.org/wiki/World_Bank
- https://en.wikipedia.org/wiki/World_Bank_Group
- https://www.worldbank.org/en/region/afr/eastern-and-southern-africa
- https://www.worldbank.org/en/about/annual-report/region-engagements
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