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Updated September 17, 2020
The World Bank
The World Bank, the oldest and largest multilateral
States. David Malpass, previously the Under Secretary for
development bank, provides financial assistance to
International Affairs at the Department of the Treasury, was
developing countries to promote economic development.
selected as the 13th World Bank president in April 2019.
Established in 1945, the Bank initially focused on providing
Headquartered in Washington, DC, the World Bank has
financing for large infrastructure projects. During the past
more than 120 offices and 10,000 employees worldwide.
75 years, its role has broadened to include poverty
Projects and Financing
reduction efforts through social projects (such as education
The IBRD and IDA fund development projects around the
and health) and policy-based loans. The World Bank is
world and in a variety of sectors (Figure 1). In terms of the
currently focused on helping developing countries respond
World Bank’s active portfolio by region, Africa, South
to the health and economic consequences of the COVID-19
Asia, and East Asia and the Pacific are the top recipients.
pandemic.
By sector, the World Bank has projects focused on
Structure and Governance
transportation, energy, and water and sanitation, among
The World Bank has two major lending “windows” or
others. The IBRD and IDA disbursed $20.2 billion and
“facilities.” The International Bank for Reconstruction
$17.5 billion, respectively, to developing countries in
and Development (IBRD), created in 1945, provides loans,
FY2019.
guarantees, risk management products, and advisory
services to middle-income countries and some creditworthy
Figure 1. World Bank Active Portfolio, FY2019
low-income countries. The IBRD currently has 189 member
countries. In 1960, at the suggestion of the United States,
the International Development Association (IDA) was
created to make concessional loans (with low interest rates
and long repayment periods) to the poorest countries. IDA
also now provides grants to these countries. IDA currently
has 173 member countries.
The IBRD and IDA operate according to procedures
established by their Articles of Agreement, documents that
outline the conditions of membership and general principles
of organization, management, and operations. The World
Bank’s highest decisionmaking authority is the Board of
Governors, which meets annually. Each member country is
represented on the Board of Governors, usually by the
finance minister or central bank governor. The U.S.
governor is currently Treasury Secretary Steven Mnuchin.
The Board of Governors has delegated day-to-day authority
over operational policy, lending, and other matters to the
Board of Directors. There are 25 executive directors. The
five largest Bank shareholders (China, France, Germany,
the United Kingdom, and the United States) appoint their

own executive director. Other member countries are
Source: World Bank Annual Report 2019.
represented by elected executive directors. The U.S.
Note: MENA = Middle East and North Africa.
executive director is currently DJ Nordquist, previously at
In April 2020, World Bank President Malpass committed
the Council of Economic Advisors, among other positions.
$160 billion over the next 15 months to support developing-
Board decisions are reached through voting. Each member
country responses to COVID-19, more than double the
country’s voting share is weighted on the basis of its
amount committed by the World Bank overall in FY2019.
financial contributions to the World Bank. U.S. voting
By mid-September 2020, the World Bank had approved
power at the IBRD is 15.98% and at IDA is 10.20%. The
130 COVID-related projects in 97 countries totaling $5.8
United States has unique veto power over amendments to
billion.
the IBRD Articles of Agreement, but the U.S. cannot
The World Bank is able to extend financial assistance to
unilaterally veto day-to-day decisions, such as the approval
developing countries due to the financial commitments of
of individual projects.
its more prosperous member countries. The IBRD borrows
The president of the World Bank is selected by the Board of
money from international capital markets and then relends
Directors for a five-year, renewable term. Traditionally, the
the money to developing countries. The IBRD is able to
Bank president has always been nominated by the United
borrow from international capital markets because it is
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The World Bank
backed by the guarantees of member governments. The
additional resources should be made available by donor
IBRD’s total capital is $280 billion. Most of the capital
countries, whether IBRD can stretch its current lending
($263 billion) are guarantees from donor countries
capacity, and whether the World Bank has sufficient
(“callable” capital) and a small portion ($17 billion, about
staffing to process unprecedented volumes of lending.
6%) has been paid to the IBRD by donor countries (“paid-
There are also potential tensions between the quick
in” capital). The United States has the largest financial
disbursement of funds and adequate safeguards to protect
commitment to the IBRD, accounting for 16.57% of total
donor contributions, and questions about project
IBRD resources. U.S. paid-in capital is $2.9 billion and
prioritization. Legislation been introduced urging U.S.
U.S. callable capital is $43.5 billion. To date, the IBRD has
leadership in the IFIs during the pandemic and additional
never drawn on its callable capital. The IBRD earns income
steps that could be taken to bolster the IFI response (H.R.
on its equity investments and the interest it charges on
6581, S. 3669, S. 4137).
loans, which it uses to pay for World Bank operating
There are also questions about how the World Bank will
expenses. The IBRD also annually transfers a portion of its
coordinate with other multilateral and bilateral donors. The
net income to IDA.
World Bank was created to address shortages of capital for
IDA is able to provide low-cost loans and grants based on
post-WWII Europe and developing countries, but in
direct contributions by donor countries, in addition to the
subsequent decades international capital markets developed
annual transfer from IBRD. IDA also started issuing its own
and donor countries created new multilateral aid
bonds in 2018 as a new way to raise resources. As IDA
organizations. Today, the World Bank is a relatively small
extends concessional loans and grants to low-income
source of capital to developing countries (Figure 2).
countries, the window’s resources become depleted. Donor
Figure 2. Select Capital Flows to Developing
countries meet every three years, to replenish resources.
Countries
Across the 18 replenishments of resources since IDA’s
creation, donor countries have contributed $258 billion to
IDA. The United States has contributed $53.2 billion, about
21% of the total. U.S. commitments to IDA have fallen in
recent replenishment cycles, from $3.9 billion in the 17th
IDA replenishment (IDA-17) to $3.3 billion in IDA-18 to
$3.0 billion in IDA-19.
U.S. Policy
The United States has traditionally played a leadership role
at the World Bank. Within the U.S. government, the
Department of the Treasury is the lead agency in the
executive branch managing U.S. participation in the World
Bank.
Congress also shapes U.S. policy at the World Bank.
Congress authorizes and appropriates U.S. financial
commitments to the World Bank and, at times, has withheld
funding unless certain reforms are completed. Congress has

Sources: OECD International Development Statistics, World Bank
also passed legislation directing U.S. representatives at the
World Development Indicators.
World Bank and other international financial institutions
(IFIs) to advocate and vote for specific policies, as well as
Notes: 2017 data for net disbursements of official flows and net
legislation requiring reports from the Department of the
inflows of private capital. Bilateral development assistance includes
Treasury on World Bank and other IFI issues. In addition,
OECD Development Assistance Committee (DAC) governments.
presidential appointments for the U.S. representatives at the
In recent years, debate has also focused on China’s role at
World Bank (the governor, the executive director, and their
the World Bank, which may be amplified by policymaker
alternates) require Senate confirmation.
concerns about China’s handling of its early COVID-19
For FY2021, the Administration requested authorization to
outbreak (H.R. 907). China is taking a greater leadership
vote in favor of a capital increase at the International
role at the World Bank, even while it continues to borrow
Financial Corporation (IFC), a lending facility at the World
from the World Bank. Legislation has been introduced that
would push for China’s graduation from its eligibility for
Bank focused on private sector development, as well as
authorization for $3.0 billion for the U.S. contribution to
World Bank assistance (H.R. 5051, S. 3017, S. 3018).
IDA-19. In response to the overwhelming demand for
For more information, see CRS Report R41170,
World Bank assistance in response to COVID-19, Congress
Multilateral Development Banks: Overview and Issues for
included these authorizations in the CARES Act (P.L. 116-
Congress, by Rebecca M. Nelson and CRS Report R46342,
136). The Administration has also requested for FY2021
COVID-19: Role of the International Financial Institutions,
$206.5 million as the second of six installments for a capital
by Rebecca M. Nelson and Martin A. Weiss.
increase at the IBRD, as well as $1.0 billion for the first of
three installments to IDA-19.
Rebecca M. Nelson, Specialist in International Trade and
Current Debates
Finance
As the World Bank mobilizes its resources in response to
IF11361
the COVID-19 pandemic, there are questions about whether
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https://crsreports.congress.gov | IF11361 · VERSION 6 · UPDATED