World Bank Group - Market OverviewWBG - Market Overview
The World Bank Group is the largest development finance institution in the world. 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: 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; 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
Together, IBRD and IDA make up what is commonly referred to as the “World Bank”
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 facilities for conciliation and arbitration of investment disputes
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 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
In addition, the risk insurance services of the Multilateral Investment Guarantee Agency (MIGA), like those of the U.S. Government’s Overseas Private Investment Corporation (OPIC), can help American firms engage, even in the world’s most challenging environments, with a greater sense of confidence.
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.
Understanding how to approach these opportunities requires careful analysis and a strategic approach. This guide will facilitate that process.
Financial Services Trade Development and Promotion World Bank