World Bank

Specialized agency of the United Nations that borrows in the commercial market and lends on commercial terms. It was established in 1945 under the 1944 Bretton Woods agreement, which also created the International Monetary Fund (IMF). The International Development Association is an arm of the World Bank.

The World Bank now earns almost as much money from interest and loan repayments as it hands out in new loans every year. Over 60% of the bank's loans go to suppliers outside the borrower countries for such things as consultancy services, oil, and machinery. The bank is controlled by a board of executives representing national governments, whose votes are proportionate to the amount they have funded the bank. Thus the USA has nearly 20% of the vote and always appoints the board's president.

In 1992 the World Bank made a net transfer of $49.7 million to developing countries. In 1999 it made an appeal for $2 billion to rebuild Kosovo after the Balkan conflict.