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The World Bank Group International Bank for Reconstruction and Development (IBRD) Came into existence on December 27th, 1945 following the Bretton Woods agreements. Original mission was the finance the reconstruction of nations who were devastated by WWII. Mission has since extended to fight poverty by means of financing middle-income and creditworthy poorer nations. Provides loans to governments or private enterprises, but always with a government, or “sovereign,” agreement of repayment. Funding is mostly from World Bank bonds which have AAA ratings based on the member states credit reliability as well as the sovereign agreement of the borrower. Thanks to their high rating, the World Bank is able to raise funds at an attractive rate, and then offer loans at only about 1% higher (to cover administrative costs) to countries who otherwise would have no ability to get a loan on such terms. International Development Association (IDA) Created of September 24th, 1960, the IDA offers long-term (35-40 years), interest free credit and grants to the World’s 81 poorest countries (40 of which are in Africa). Since its inception, IDA credits and grants have totaled $161 billion, averaging $7–$9 billion a year in recent years and directing the largest share, about 50 percent, to Africa. Unlike the IBRD, the IDA finances most of its operations from the contributions of its member nations. It also uses some funds from the IBRD’s profits and its own repayments. IDA loans address primary education, basic health services, clean water and sanitation, environmental safeguards, business climate improvements, infrastructure and institutional reforms. These projects pave the way toward economic growth, job creation, higher incomes and better living conditions. International Finance Corporation (IFC) Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by: o Financing private sector projects located in the developing world. o Helping private companies in the developing world mobilize financing in international financial markets. o Providing advice and technical assistance to businesses and governments. IFC has 179 member countries which collectively approve its policies and investments. It operates as a fund in which member countries buy shares in the IFC in turn for their respective voting rights. Although IFC coordinates its activities in many areas with the other institutions in the World Bank Group, IFC generally operates independently as it is legally and financially autonomous with its own Articles of Agreement, share capital, management and staff. Funding, as noted, is provided for by paid in capital by member nations. On top of this, the fund has a AAA rating allowing it to gain capital from international financial markets. At this point, retained earnings also make up a large portion of the IFC. Mostly funds private sector projects in developing countries without sovereign guarantees of repayment. It has never turned an annual loss since its inception. Multilateral Investment Guarantee Agency (MIGA) MIGA was established in 1988 with a fund of $1 billion in an effort to promote foreign direct investment (FDI) into developing nations. In order to attract investors, MIGA offers insurance for investors against against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. MIGA provides guarantees against noncommercial risks to protect cross-border investment in developing member countries. Guarantees protect investors against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (for contracts between the investor/project enterprise and the authorities of the host country). These coverages may be purchased individually or in combination. International Centre for Settlement of Investment Disputes (ICSID) The ICSID was founded in 1966 pursuant to the Washington Convention in order to provides facilities for the conciliation and arbitration of investment disputes between member countries and investors who qualify as nationals of other member countries. As of 2005, there were 155 member countries. ICSID has an Administrative Council and a Secretariat. The Administrative Council is chaired by the World Bank's President and consists of one representative of each State which has ratified the Convention. ICSID is an autonomous international organization even though it has close links with the World Bank. The expenses of the ICSID Secretariat are financed out of the Bank's budget, although the costs of individual proceedings are borne by the parties involved. The Centre has since 1978 had a set of Additional Facility Rules authorizing the ICSID Secretariat to administer certain types of proceedings between States and foreign nationals which fall outside the scope of the Convention. These include conciliation and arbitration proceedings where either the State party or the home State of the foreign national is not a member of ICSID.