The World Bank Group in Austria

A member of all five institutions that form the World Bank Group, Austria joined the International Bank for Reconstruction and Development (IBRD) in August 1948. The memberships to the International Development Association (IDA) followed in 1961, to the International Finance Corporation (IFC) in 1956, the International Centre for Settlement of Investment Disputes (ICSID) in 1971, and the Multilateral Investment Guarantee Agency (MIGA) in 1997.  Together, the World Bank Group works towards efforts establishing peace, promote a stable global economy, and encourage the use of renewable resources and environmentally friendly production.

2023 marks a special milestone – the 75^th anniversary of the partnership between Austria and the World Bank. Having signed the Articles of  Agreement of the IBRD on August 27, 1948, Austria became the 47^th member country to what is today known as the World Bank Group.

Historical Background

Only three years after World War II Austria became the 47^th member of the World Bank on August 27, 1948. The first IBRD loan to Austria was approved in 1954.

In 1945, Austria was severely rattled by war. Its industry was destroyed, its infrastructure seriously damaged and its population hungry. It was among the poorest countries in Europe, lacking food and basic goods. Dependent on foreign aid, Austria’s striking recovery in the following decades was built on the fundamentals of international cooperation and support. The striking recovery in the following decades was built on the fundamentals of international cooperation and support. While the European Recovery Program (ERP), better known as the “Marshall Plan”, was providing Austria with the most essential goods in the immediate aftermath of the war between 1948 and 1953, IBRD stepped in afterwards, making important contributions to the rebuilding and further development of Austria’s industry. Physical damage mostly repaired and economic stability restored by 1953, the World Bank loans facilitated Austria’s transition into a rapidly growing and prospering nation. The focus was laid firstly on hydropower plants that allowed to satisfy ever expanding energy demands of an emerging consumer society. The second priority was the Bank supported development of a functioning private capital market that could then facilitate private investment needed for a strong and internationally competitive Austrian industry.

There is broad consensus on the fact that Austria’s “economic miracle” of quick economic recovery and growing prosperity experienced in the 1950s and 1960s may not have been as quick or as pronounced if it had not been for the financial and technical support provided first through the European Recovery Plan and then through the IBRD.

For more information on the history, see the World Bank Archives Country Profile and Austria Timeline.

After IBRD loans contributed to Austria’s sweeping economic recovery during the years of the so-called “economic miracle”, the country quickly evolved from a borrower to a contributing partner. Today, the partnership is stronger than ever, as Vienna hosts one of the biggest World Bank Group offices outside of Washington DC.

To promote better understanding of the World Bank Group’s mission and activities, the Vienna office furthermore supports outreach activities, often in collaboration with Austrian partners, such as organizing and supporting conferences, seminars, and other events on development-related topics. The office serves as an entry point for groups in Austria wishing to contact World Bank staff across the world or access the plethora of information the Bank publishes.

For more information about the World Bank Group in Vienna, read here. 

World Bank Governor

The Federal Minister of Finance represents Austria on the World Bank Board of Governors, the Bank’s senior decision-making body. The Governors, usually Ministers of Finance or Development, meet twice a year. They have the power to admit and suspend members of the World Bank Group, increase or decrease the authorized capital stock, determine the distribution of the net income of the Bank, and decide on the World Bank Group’s overall strategic direction. The Director General, Federal Ministry of Finance, serves as Alternate Governor.

World Bank Executive Director

The Governor delegates responsibility for overseeing the day-to-day business of Austria’s interests at the Bank to the Executive Director (ED) for Austria. EDs reside in Washington and normally meet twice a week to decide on borrowing and financial questions, projects, and policies impacting the World Bank Group’s general operations. Austria’s representation on the boards of IBRD, IFC, IDA, and MIGA is shared with Belarus, Belgium, Czech Republic, Hungary, Kosovo, Luxembourg, Slovak Republic, Slovenia, and Turkey. Hayrettin Demircan (Turkey) is the current ED representing the constituency on the 25-member World Bank Board of Executive Directors, and Nathalie Francken (Belgium) is the Alternate Executive Director.

Shares and Voting Power

The World Bank Group has a weighted system of voting. All members of the Bank receive votes consisting of share votes (one vote for each share of the Bank's capital stock held by the member) plus basic votes (calculated so that the sum of all basic votes is equal to 5.55% of the sum of basic votes and share votes for all members). The voting power distribution differs from agency to agency within the World Bank Group.

For the latest voting status, please visit the Voting Powers page.