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World Bank Group – The Family Tree! 🌳

"World Bank" usually refers to IBRD + IDA. But the World Bank Group has 5 institutions.

1. IBRD"Lends to Middle-Income Countries (e.g., India)."
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2. IDA"Lends to Poorest Countries (Interest-Free)."
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3. IFC"Lends to Private Companies (Private Sector)."
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4. MIGA"Insures against Political Risk (War/Civil Unrest)."
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5. ICSID"Court for Investment Disputes."

1. IDA (International Development Association) 🕊️

  • Nickname: "Soft Loan Window".
  • Why?: It gives loans at 0% Interest to the poorest nations (e.g., Somalia, Bangladesh).
  • Repayment: 30-40 years. It's almost charity.

2. IFC (International Finance Corporation) 🏢

  • Focus: Private Sector.
  • IBRD lends to Governments. IFC lends to Companies (e.g., Tata, Mahindra) for projects in developing countries.

3. MIGA (Multilateral Investment Guarantee Agency) 🛡️

  • Focus: Insurance.
  • If a US company invests in a war-torn country, MIGA insures them against "Political Risk" (e.g., Government seizing the factory).

4. ICSID (International Centre for Settlement of Investment Disputes) ⚖️

  • Focus: Court.
  • If a foreign investor fights with the Government, they go to ICSID.
  • Note: India is NOT a member of ICSID.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Which institution is known as the 'Soft Loan Window'?

IBRD
IDA
IFC
MIGA

💡 Final Wisdom: "The World Bank Group covers everyone: Governments (IBRD/IDA), Companies (IFC), and Investors (MIGA). It's a complete financial ecosystem." 🌐

Next up: IMF vs World Bank - The Final Showdown! 🥊

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