World Bank

Definition

Popular name for the International Bank for Reconstruction and Development (IBRD). Established together with International Monetary Fund (IMF) in 1944 as part of Bretton Woods system to rebuild the Western economies shattered by second world War through financing of commercial and infrastructural projects. Though it does not compete with commercial banks, it may participate in loan syndication, and its lending policies are based largely on strict commercial criteria. Its member countries must also be members of the IMF, and (as in IMF) have voting power weighted according to their contribution to the Bank. For example, the US has about 20 percent of the voting power and always chooses the bank's president. See also World Bank system.