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Updated May 31, 2024
The World Bank
The World Bank provides financial assistance to low- and
decisions—including amending the Articles of
middle-income countries to promote economic
Agreement—require 85% of the total voting share. Other
development. Established in 1945, the Bank initially
decisions require lower voting thresholds. For example,
focused on providing financing for large infrastructure
50% of the total voting share is required to approve specific
projects. Its role over the past nearly eight decades has
projects. The U.S. voting share at the IBRD is 15.49% and
broadened to include poverty reduction efforts through
at IDA is 9.63%. The United States is the only member of
social projects (such as education and health) and policy-
the IBRD with a voting share greater than 15% and thus
based loans.
veto power over major policy decisions.
The United States was instrumental in the creation of the
The President of the World Bank is selected by the IBRD
World Bank after World War II. The United States has
Board of Directors for a five-year, renewable term. Since
always had, and continues to have, the largest financial
the Bank was established, its President has always been and
commitment to the Bank of any member country. Congress
remains a U.S. citizen nominated by the United States. Ajay
authorizes and appropriates U.S. financial contributions to
Banga, who previously worked in the private sector, began
the World Bank and exercises oversight of U.S.
his term as World Bank President in June 2023. The World
participation in the Bank.
Bank is headquartered in Washington, D.C., and has more
than 120 offices and 10,000 employees worldwide.
Organizational Structure
Projects and Financing
The World Bank has two major lending “windows” or
“facilities”:
The IBRD and IDA fund development projects around the
world and in a variety of sectors. Countries in Africa, South
• The International Bank for Reconstruction and
Asia, and Europe and Central Asia are top recipients of
Development (IBRD), created in 1945, provides loans,
financial assistance. By sector, World Bank projects are
guarantees, risk management products, and advisory
focused on public administration, energy and extractives,
services to middle-income countries and some
and transportation, among others (Figure 1). The IBRD and
creditworthy low-income countries. The IBRD currently
IDA approved new projects totaling $39 billion and $34
has 189 member countries.
billion, respectively, in FY2023.
• The International Development Association (IDA),
Figure 1. IBRD/IDA Active Portfolio, FY2023
created at the suggestion of the United States in 1960,
makes 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.
Governance
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 Board of Governors has delegated day-to-day authority
over operational policy, lending, and other matters to the
Board of Directors. The Board of Directors has 25
Executive Directors. The five members with the largest
financial commitment to the Bank (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’s voting share is weighted on the basis of its
Source: World Bank Annual Report 2023 Appendixes.
financial contributions to the Bank. Major policy
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The World Bank
Notes: MENA = Middle East and North Africa. The World Bank
fiscal year is July 1 – June 30.
Appropriators: State, Foreign Operations, and Related
Programs Subcommittees of the House and Senate
Donor Commitments
Appropriations Committees
The World Bank is able to extend financial assistance to
Select Issues for Congress
developing countries due to the financial commitments of
its more prosperous member countries. The IBRD’s total
Appropriations and Authorizations
capital is $318 billion. Most of the capital is guarantees
from donor countries (“callable” capital, $296 billion) and a
In the Further Consolidated Appropriations Act, 2024 (P.L.
118-47), Congress appropriated $206.5 million for the fifth
smaller portion has been paid to the IBRD by donor
countries (“paid
of six annual installments of a capital increase at the IBRD
-in” capital, $22 billion). The United States
(agreed to in 2018), and $1.4 billion for the second of three
has the largest financial commitment to the IBRD,
annual installments for the twentieth replenishment of IDA
accounting for 16.64% of total IBRD resources. U.S.
(IDA-20). The legislation also appropriated $50 million to
callable capital is $52.9 billion and U.S. paid-in capital is
support a variety of Treasury’s international programs,
$3.7 billion.
including the cost of loan guarantees to the IBRD.
The IBRD borrows money from international capital
For FY2025, the Administration is requesting:
markets and then relends the money to developing
•
countries. The IBRD is able to borrow from international
$206.5 million for the last of six installments for the 2018
capital markets because it is backed by member
capital increase;
governments’ guarantees. To date, the IBRD has never
• $26.8 million to cover the cost of $2 billion in IBRD loan
drawn on its callable capital. The IBRD earns income on
guarantees;
the interest it charges on loans, which it uses to pay for
• $1.4 billion for the third of three annual installments for
World Bank operating expenses. The IBRD also annually
IDA-20;
transfers a portion of its net income to IDA.
• congressional authorization to amend the IBRD Articles
IDA provides low-cost loans and grants based on direct
of Agreement to remove a statutory limit on IBRD
contributions by donor countries, income transfers from
lending; and
IBRD, and IDA bond issuances. Donor countries meet
• legislation to exempt IDA bonds from regulation by the
every three years to negotiate replenishments of IDA
Securities and Exchange Commission.
resources. Since IDA was created, donor countries have
committed $311 billion to IDA, with U.S. commitments
U.S. Representation
accounting for 19.23% of the total ($60 billion).
The Administration’s nominations for the U.S. Governor,
U.S. Policy and Congress
Executive Director, and Alternate Executive Director to the
IBRD, submitted in January 2024, are pending before the
U.S. membership in the World Bank is authorized in the
Senate. Currently, the United States is the only G20 country
Bretton Woods Agreements Act (22 U.S.C. §286 et seq.).
without a Governor in place, and the U.S. Executive
Congress has shaped U.S. policy at the World Bank through
Director is one of two vacancies on the Board of Directors.
a variety of tools:
• Congress authorizes and appropriates U.S. financial
Broader U.S. Foreign Policy Interests
commitments to the World Bank (see text box). At times,
Members of Congress may consider various policy tools to
Congress has withheld funding until certain reforms are
shape and exercise oversight of U.S. policy at the World
completed.
Bank on a range of key foreign policy issues. Examples of
•
such issues are:
Congress has passed legislation that directs U.S.
representatives at the World Bank to advocate for
• the size, scope, and purpose of World Bank financial
specific policies and to vote in a manner that advances
support for Ukraine;
such policies.
• Russia’s membership and role in the World Bank in light
• Congress has passed legislation requiring reports from
of its war on Ukraine;
the Administration on specific World Bank issues.
• World Bank support for emergency relief for the affected
• The Senate confirms U.S. representatives to the World
people of Gaza;
Bank, including the Governor, the Executive Director,
• China’s role in the World Bank, including the status and
and their alternates.
purpose of World Bank financing in China;
Within the Administration, the Department of the Treasury
• the World Bank’s increasing engagement on climate
is the lead agency managing U.S. participation in the Bank.
change; and
• the Bank’s broader energy policies, including for fossil
Key Congressional Committees
fuels and nuclear power plants.
Authorizers: House Financial Services and Senate Foreign
Relations Committees
For more information, see CRS Report R41170,
Multilateral Development Banks: Overview and Issues for
Congress, by Rebecca M. Nelson.
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The World Bank
IF11361
Rebecca M. Nelson, Specialist in International Trade and
Finance
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
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https://crsreports.congress.gov | IF11361 · VERSION 13 · UPDATED