What is the role of the World Bank in global economics?

The World Bank is a vital international financial institution that provides loans, policy advice, technical assistance, and other services to develop countries with the aim of reducing poverty and promoting shared prosperity. It consists of two separate institutions - the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

IBRD provides loans to middle-income and creditworthy low-income countries, while IDA provides interest-free loans and grants to the lowest-income countries. The World Bank also offers analytical and advisory services to client countries, which help them design policies and reforms essential for sustainable economic growth and poverty reduction.

Additionally, the World Bank monitors the global economy, provides funding for development projects and emergency relief programs, and facilitates cooperation among countries to advance development goals. One of the key roles of the World Bank is to ensure that funds are used efficiently and effectively in client countries - this is achieved through rigorous project selection, monitoring, and evaluation.

The World Bank plays a crucial role in shaping international development policies and strategies through its research and analysis, data collection, and advocacy efforts. It also works closely with other international organizations, including the United Nations, the International Monetary Fund, and regional development banks to address global development challenges.