David Malpass is the new boss at the World Bank. A total non believer in the mission and vision of what the Institution stands for; now heads it.
For one, the mission of the World Bank is to offer loans and advice to the developing countries; created around the same time as a the IMF, in 1944 , to help fight poverty and equality. Whereas IMF was supposed to help fight acute crises; the World Bank looked at long term problems and how to correct those.
The World Bank gave its first loan to France, after the first World War, then Chile. Today the Bank has within itself 5 Organizations ;an agency that guarantees loans, a centre that settles investment disputes, a “corporation” that invests in private firms and promotes entrepreneurship, and the two biggest units which together constitute the World Bank proper: the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
IDA collects donations every two years from rich nations and distributes it to the poor ones. Countries disqualify for IDA donations once they reach a GDP of $1.145 per person. The IBRD is the more complicated story. It is backed by all the Governments of the World and can borrow at a very low rate of interest to lend to middle-income countries along with policy advice.
Malpass is of the opinion that the Bank should clearly focus more on economic growth and less lending. This is going to lead to interesting times for the Bank.