Cleaning Up The World Bank
Its mission: to end global poverty. But corruption has cost it billions. How to weed out the crooks and grifters
A LOOK AT THE WORLD BANK
The World Bank Group is made up of five organizations that raise private and public money to fund projects that aim to alleviate poverty in developing countries. The two agencies at the core of what is known as the World Bank-the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)-have mobilized more than half a trillion dollars over the last 60 years to fund health, education, road, and other projects. The IBRD gets most of its funds by selling bonds internationally, while IDA gets most of its money from 40 rich countries. The entire institution has about 11,000 employees worldwide.
WORLD BANK GROUP
IBRD
International Bank for Reconstruction and Development
Provides loans and assistance to middle-income countries, like Mexico.
IDA
International Development Association
Provides interest-free loans to the poorest countries.
IFC
International Finance Corp.
Finances private-sector investments.
MIGA
Multilateral Investment Guarantee Agency
Provides "political risk" insurance for foreign investors.
ICSID
International Center for Settlement of Investment Disputes
Helps settle investment disputes between investors and governments.
WHERE DOES WORLD BANK MONEY COME FROM?
TOP 5 IBRD SHAREHOLDERS
Total paid in: $11.483 billion
United States $2 bil. 17.4 pct.
Japan 8.2 pct.
Germany 4.7 pct.
United Kingdom 4.7 pct.
France 4.5 pct.
All other contributors $6.94 bil. 60.5 pct.
$146 BILLION TO IDA
Total donations since 1960
United States 21.6 pct.
Japan 16.7 pct.
Germany 10.7 pct.
United Kingdom 8.7 pct.
France 6.9 pct.
Others 35.4 pct.
WHERE DOES WORLD BANK MONEY GO?
TOTAL IBRD-IDA LENDING BY REGION
Shares of $22.3 billion in fiscal 2005
Latin America/Caribbean 24 pct.
South Asia 22 pct.
Europe/Central Asia 18 pct.
Africa 17 pct.
East Asia/Pacific 13 pct.
Middle East/North Africa 6 pct.
TOTAL IBRD-IDA LENDING BY SECTOR
Shares of $22.3 billion in fiscal 2005
Law, justice, public administration 24 pct.
Transportation 14 pct.
Health and social services 10 pct.
Water, sanitation, and flood protection 10 pct.
Other 42 pct.
WORLD BANK HISTORY AT A GLANCE
JULY 1945
The IBRD, the first branch of the World Bank, forms to avert postwar financial crises and support reconstruction.
MAY 1947
IBRD starts making its first loans to Europe for reconstruction after World War II.
1960
The IDA is established. Attention shifts to infrastructure projects in Latin America, Asia, and Africa.
1968-1981
World Bank President Robert McNamara greatly expands the institution, increasing its membership to 135 and its lending programs from about $1 billion to $12 billion.
1995-2005
World Bank President James D. Wolfensohn starts anti-corruption reforms and debt relief for poor countries.
2005
Paul D. Wolfowitz becomes World Bank president.
Source: The World Bank; Research and Reporting by Danielle Knight and Jennifer L. Jack
SOME KEY CORRUPTION INVESTIGATIONS
This map highlights some of the countries where the World Bank has investigated corruption on its projects. Here's a closer look at some major cases:
KENYA: Urban Transportation Infrastructure Project
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