link to page 1

Updated July 18, 2022
The World Bank
The World Bank, the oldest and largest multilateral
Headquartered in Washington, DC, the World Bank has
development bank, provides financial assistance to
more than 120 offices and 10,000 employees worldwide.
developing countries to promote economic development.
Projects and Financing
Established in 1945, the Bank initially focused on providing
The IBRD and IDA fund development projects around the
financing for large infrastructure projects. During the past
world and in a variety of sectors (Figure 1). In terms of the
75 years, its role has broadened to include poverty
World Bank’s active portfolio by region, Africa, South
reduction efforts through social projects (such as education
Asia, and East Asia and the Pacific are the top recipients.
and health) and policy-based loans. Congress appropriates
By sector, the World Bank has projects focused on
U.S. financial contributions to the World Bank and
transportation, energy, and water and sanitation, among
exercises oversight of U.S. participation in the Bank.
others. The IBRD and IDA disbursed $23.7 billion and
Structure and Governance
$23.0 billion, respectively, to developing countries in
The World Bank has two major lending “windows” or
FY2021.
“facilities.” The International Bank for Reconstruction
Figure 1. World Bank Active Portfolio, FY2021
and Development (IBRD), created in 1945, provides loans,
guarantees, risk management products, and advisory
services to middle-income countries and some creditworthy
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 decision-making 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 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
represented by elected executive directors.

Board decisions are reached through voting. Each member
Source: World Bank Annual Report 2021.
country’s voting share is weighted on the basis of its
Note: MENA = Middle East and North Africa.
financial contributions to the World Bank. U.S. voting
power at the IBRD is 15.77% and at IDA is 9.96%. The
The World Bank is able to extend financial assistance to
United States has unique veto power over amendments to
developing countries due to the financial commitments of
the IBRD Articles of Agreement, but the U.S. cannot
its more prosperous member countries. The IBRD borrows
unilaterally veto day-to-day decisions, such as the approval
money from international capital markets and then relends
of individual projects.
the money to developing countries. The IBRD is able to
borrow from international capital markets because it is
The president of the World Bank is selected by the Board of
backed by the guarantees of member governments. The
Directors for a five-year, renewable term. Traditionally, the
IBRD’s total capital is $298 billion. Most of the capital
Bank president has always been nominated by the United
($279 billion) are guarantees from donor countries
States. David Malpass, previously the Under Secretary for
(“callable” capital) and a small portion ($19.2 billion, about
International Affairs at the Department of the Treasury, was
6%) has been paid to the IBRD by donor countries (“paid-
selected as the 13th World Bank president in April 2019.
in” capital). The United States has the largest financial
https://crsreports.congress.gov

The World Bank
commitment to the IBRD, accounting for 16.67% of total
installments to increase IBRD’s capital base, agreed to in
IBRD resources. U.S. paid-in capital is $3.3 billion and
2018. If not paid, the United States would lose voting
U.S. callable capital is $50 billion. To date, the IBRD has
power at the IBRD. The Administration is also requesting
never drawn on its callable capital. The IBRD earns income
$1.4 billion for IDA, including $1 billion for the last
on its equity investments and the interest it charges on
installment of IDA-19 and $427 million to meet unmet U.S.
loans, which it uses to pay for World Bank operating
commitments from previous replenishment cycles.
expenses. The IBRD also annually transfers a portion of its
In terms of U.S. representation at the World Bank, the
net income to IDA.
Administration’s nomination of Treasury Secretary Janet
IDA is able to provide low-cost loans and grants based on
Yellen as Governor to the IBRD in July 2021 is pending
direct contributions by donor countries, in addition to the
before the Senate. Jose Fernandez, Under Secretary for
annual transfer from IBRD. IDA also started issuing its own
Economic Growth, Energy, and the Environment at the
bonds in 2018 as a new way to raise resources. As IDA
State Department, was confirmed as the Alternate Governor
extends concessional loans and grants to low-income
in August 2021. Adriana Kugler, a development and labor
countries, the window’s resources become depleted. Donor
economist from Georgetown University, was confirmed as
countries meet every three years, to replenish resources.
Executive Director to the IBRD in April 2022. The Biden
Across the 18 replenishments of resources since IDA’s
Administration has not nominated an Alternate Executive
creation, donor countries have contributed $292 billion to
Director.
IDA. U.S. contributions to IDA have fluctuated in recent
replenishment cycles: $3.9 billion in the 17th replenishment
Potential Issues for Congress
(IDA-17); $3.3 billion in IDA-18; $3.0 billion in IDA-19;
Landscape of development financing. The World Bank
and $3.5 billion in IDA-20. IDA-20 negotiations concluded
was created to address shortages of capital after WWII. In
in March 2022.
subsequent decades, private international capital markets
developed and donor countries created new multilateral aid
World Bank Financing: Key Policy Areas
organizations. How does World Bank financing fit with
COVID-19 pandemic: As of June 2022, the World Bank has
other sources of capital for developing countries?
approved more than 3,000 projects in 137 countries, totaling
The role of Russia. Russia continues to be a member of the
$320 bil ion, to help developing countries address the health
World Bank, and is the IBRD’s 8th largest shareholder.
and economic exigencies of the pandemic.
Under what conditions should a country’s membership in
Russia’s war on Ukraine: The IBRD has not approved any
the IBRD be suspended, and should Russia’s membership
new financing for Russia since it first invaded Ukraine in 2014;
be reconsidered?
the World Bank further suspended all programming in Russia
in March 2022. In 2022, the Bank approved $700 mil ion in
 The role of China. China receives financial
emergency financing for Ukraine. In June 2022, it approved
assistance from IBRD, even as it provided
$1.5 bil ion for Ukraine as part of a broader $4 bil ion support
financing to many developing countries.
package mobilized by the Bank.
Legislation has been introduced that would call for
China’s graduation from its eligibility for World
Food insecurity: In May 2022, the World Bank announced
Bank assistance (S. 1169, S. 1454) or condition
plans to focus up to $30 in existing and new projects to
such assistance on China’s participation in
address the food security crisis. Projects wil focus on
multilateral debt relief efforts (H.R. 6475). Should
agriculture, nutrition, social protection, water, and irrigation.
China’s role at the World Bank evolve, and if so,

how?
U.S. Policy
Doing Business Report. In 2021, the World Bank
The United States has traditionally played a leadership role
suspended publication of its Doing Business Report (DBR),
at the World Bank. Within the U.S. government, the
after an independent investigation found that senior World
Department of the Treasury is the lead agency in the
Bank officials improperly influenced results, including to
executive branch managing U.S. participation in the World
improve China’s rating. The World Bank is formulating a
Bank.
new approach, the “Business Enabling Environment.” How
Congress also shapes U.S. policy at the World Bank.
do its metrics, methodologies, and independence compare
Congress authorizes and appropriates U.S. financial
with the DBR?
commitments to the World Bank and, at times, has withheld
funding unless certain reforms are completed. Congress has
 Energy projects. U.S. policy on World Bank
also passed legislation directing U.S. representatives at the
financing for fossil fuels has shifted under recent
World Bank and other international financial institutions
Administrations, and legislation has been
(IFIs) to advocate and vote for specific policies, as well as
introduced to support World Bank financing for
legislation requiring reports from the Department of the
coal and civil nuclear projects (S. 758, H.R. 1646).
Treasury on World Bank and other IFI issues. In addition,
As global policy concerns focus on climate
presidential appointments for the U.S. representatives at the
change, reliance on Russian energy, and high
World Bank (the governor, the executive director, and their
energy prices, what types of energy projects
alternates) require Senate confirmation.
should the World Bank finance?
For FY2022, the Administration has requested funding for
U.S. leadership. Secretary Yellen has emphasized a
the IBRD and IDA. For IBRD, the Administration
commitment to restoring U.S. leadership in the international
requested $206.5 million as the third of six annual
https://crsreports.congress.gov

The World Bank
system. How do vacancies in U.S. positions at the World
Rebecca M. Nelson, Specialist in International Trade and
Bank impact U.S. leadership? What steps can the United
Finance
States take to bolster its leadership role at the World Bank?
IF11361

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11361 · VERSION 8 · UPDATED