The International Bank for Reconstruction and Development

IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, and (nonlending) analytical and advisory services. IBRD does not maximize profit but has earned a net income each year since 1948. Its income funds several developmental activities and ensures financial strength, which enables low-cost borrowings in capital markets and good terms for its borrowing clients. IBRD’s 24-member Board represents its 184 members and is made up of 5 appointed and 19 elected Executive Directors.

The International Development Association

Contributions to IDA enable the World Bank to provide $7 billion to $8 billion a year in highly concessional financing to the world’s 81 poorest countries (home to 2.5 billion people). IDA’s interest-free credits and grants are vital because these countries have little or no capacity to borrow on market terms. In most of these countries, the great majority of people live on less than $2 a day. IDA’s resources help to support country-led Poverty Reduction Strategies in key policy areas, including helping to raise productivity, providing accountable governance, improving the private investment climate, and improving access to education and health care for the poor.

The International Finance Corporation

IFC promotes economic development through the private sector. Working with business partners, IFC invests in sustainable private enterprises in developing countries without accepting government guarantees. It provides equity, long-term loans, loan guarantees, risk management products, and advisory services to its clients. IFC seeks to reach businesses in regions and countries that would otherwise have limited access to capital. It provides finance in markets deemed too risky by commercial investors in the absence of IFC participation and adds value to the projects it finances through its corporate governance, environmental, and social expertise.

The Multilateral Investment Guarantee Agency

MIGA helps encourage foreign direct investment in developing countries by providing guarantees to foreign investors against losses caused by noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, war and civil disturbance, and breach of contract. In addition, MIGA provides technical assistance and advisory services to help countries strengthen the capacity of investment promotion intermediaries and disseminate information on investment opportunities. MIGA also provides investment dispute mediation services on request.

The International Centre for Settlement of Investment Disputes

ICSID helps encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, thereby helping foster an atmosphere of mutual confidence between states and foreign investors. Many international agreements concerning investment refer to ICSID’s arbitration facilities. ICSID also conducts research and publishing activities in the areas of arbitration law and foreign investment law.