World Bank Group - Market OverviewWBG - Market Overview
Working with any of the multilateral development banks (MDBs) can be extremely rewarding, but it can be a challenge to get started. That is where the International Trade Administration’s extensive network can help. Your “first stop” should be your local Commercial Service office https://www.export.gov/welcome. They can put you in touch with our officers at the appropriate MDBs and our officers in the overseas field – as well as with our headquarters team including the Advocacy Center, our country experts and industry analysts, especially since some of the MDBs have tremendous resources focused on specific sectors of the economy.Working with the multilateral development banks (MBDs) can mitigate your risk in developing countries. The project is more likely to go through, there is less likelihood of corruption, and your company is more likely to get paid. To be successful, it is important to understand each MDB’s processes and priorities — and also to have a “ground game” in the country that is receiving loans for its procurements. The U.S. Government can help you with those efforts — through OPIC, USTDA, and the Commerce Department’s network, as mentioned above.
The World Bank Group is one of the world’s largest sources of funding for developing countries; it provides financing, technical assistance, political risk insurance and settlement of disputes to private enterprises. The World Bank’s new procurement reforms (see below) mean that a borrowing country will no longer automatically favor the lowest bid but will instead focus on solutions that provide the best overall value for money.
The World Bank Group was established in December 1945 following ratification of the Bretton Woods agreements to facilitate post-World War II reconstruction, today it is dedicated to achieving two overarching goals: (1) ending extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3 percent by 2030, (2) and promoting shared prosperity by fostering the income growth of the bottom 40 percent for every country.
The World Bank Group is a family of five international organizations:
- International Bank for Reconstruction and Development (IBRD) provides debt financing to governments of middle-income and creditworthy low-income countries
- International Development Association (IDA) provides concessional financing (interest-free loans and grants) to governments of the world’s poorest countries
- International Finance Corporation (IFC) supports global development by providing financing, investment and venture capital in the private sector
- Multilateral Investment Guarantee Agency (MIGA) promotes investment in developing countries by offering political risk insurance (guarantees) to investors and lenders
- International Centre for Settlement of Investment Disputes (ICSID) provides Most opportunities for American firms come in three categories:
- Project Procurement A client country government receives funds from the World Bank (IBRD, IDA) for a public works project (goods, works, consulting/advisory services); that government runs a public competition and selects vendors.
- Corporate Procurement The Corporate Procurement Unit of the World Bank Group is committed to creating an environment that fosters open, global, and transparent competition for the goods and services used by the Bank Group in its worldwide operations. Corporate Procurement procures goods and services to meet the needs of the World Bank Group following the principles of fairness, transparency, competition and overall best value. The Bank Group’s procurement process reflects its commitment to fair labor practices, appropriate wages and benefits, safety, environmental programs, and the diversity of its suppliers. The World Bank Group itself runs a competition for consulting/advisory services, often in relation to IBRD, IDA and/or IFC funded projects.
- Private Sector Solutions American and borrowing country private sector firms partner with IFC on loans, equity investments, venture capital, advisory services and other solutions in support of private sector activities.
Much of the information needed to participate in World Bank Group funded projects is specific to the countries in which the projects are conducted, not to the World Bank itself. As such, many segments of a traditional Country Commercial Guide are not included here. To learn about country-specific aspects of doing business in countries of interest, see each country’s Country Commercial Guide. However, to generally help firms interested in bidding for either project or corporate procurement opportunities, the Bank has produced a guide on “Finding Business Opportunities and Winning Contracts Financed by the World Bank”, see:
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Financial Services Trade Development and Promotion World Bank