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Context:
World Bank Group Guarantee Platform
The platform will provide three types of coverages:
Purpose and Function of Guarantees:
Evolution of Guarantee Programs:
Types of Guarantees Established:
Other Types:
Significance of the initiative
Scalable model
Impactful solutions:
Financing
World Bank groups:
Difference between World Bank Group’s bodies:
|
World Bank |
International Finance Corporation (IFC) |
International Development Association (IDA) |
Multilateral Investment Guarantee Agency (MIGA) |
International Centre for Settlement of Investment Disputes (ICSID) |
Purpose |
Provides loans and grants to middle-income and developing countries for development projects and programs. |
Supports private sector investment in developing countries to promote economic growth and reduce poverty. |
Provides concessional loans and grants to the world's poorest countries to reduce poverty. |
Promotes foreign direct investment by providing political risk insurance and credit enhancement. |
Provides facilities for arbitration of investment disputes between governments and foreign investors. |
Primary Focus |
Infrastructure development, education, health, agriculture, governance, etc. |
Private sector development, financial markets, infrastructure, advisory services, etc. |
Poverty reduction, social services (healthcare, education), infrastructure (roads, water supply), institutional reforms, etc. |
Infrastructure projects (energy, transport), manufacturing, agribusiness, service industries, etc. |
Resolving disputes between governments and foreign investors regarding investment issues. |
Financial Tools |
Provides loans, grants, and technical assistance. |
Provides investment and advisory services, equity investments, and loans to private sector projects. |
Provides concessional loans and grants with low or zero interest rates and long repayment periods. |
Provides political risk insurance, guarantees against non-commercial risks, and credit enhancement to encourage investments. |
Facilitates arbitration and conciliation of investment disputes under international treaties and conventions. |
Operational Strategy |
Works directly with governments and agencies to implement large-scale projects and policy reforms. |
Partners with private sector companies to mobilize private capital and expertise for development projects. |
Focuses on countries with the greatest development needs, providing support through grants and low-interest loans. |
Supports projects that cannot proceed due to political risks, offering protections to investors and lenders. |
Administers arbitration proceedings impartially, ensuring fair and transparent resolution of investment disputes. |
Membership |
189 member countries including both developed and developing nations. |
184 member countries, predominantly private sector companies and financial institutions. |
173 member countries, focusing on the world's poorest countries. |
183 member countries, providing political risk insurance and credit enhancement globally. |
162 member countries, ensuring access to dispute resolution services for governments and investors worldwide. |
Read in detail about world Bank here:
Sources:
PRACTICE QUESTION Q. With reference to the “World Bank Group Guarantee Platform” recently lauched by World Bank Group, consider the following statements:
Which of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None of the above Answer: a |
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