World Bank - Affiliated Organisations
The International Bank for Reconstruction and Development (IBRD) has three affiliated institutions, the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
International Development Association (IDA)
The IDA established in 1960 has 160 members as at May 2000. IDA provides interest free loans to the world's poorest countries. Only countries with annual per capita income of less than US$1,235 can borrow from IDA. However, most of IDA's loans are provided to countries with annual per capital incomes of US$765 or less.
IDA loans that are known as credits have a 10-year grace period and must be repaid in 35 or 40 years, according to the borrowing country's credit-worthiness. IDA lending and grant commitments amounted to US$7 billion in Fiscal Year (FY)99. A total of 146 new operations were approved for 53 countries in FY99, compared with 135 operations for a total of US$5.6 billion in FY98.
New Zealand contributed NZ$32 million to the IDA12 replenishment. This included a grant of NZ$6 million in addition to its historical burden share of 0.12% of the donor-financed portion of the replenishment. In addition, New Zealand agreed to participate in the advanced contribution scheme, thereby further enhancing the value of its contribution to IDA.
International Finance Corporation (IFC)
The IFC was established in 1956 and has 174 members as at June 2000. The Corporation promotes economic growth in developing countries by lending directly to the private sector in order to build a strong private sector which can act as an engine for growth and sustained development. The IFC may also take equity positions in companies to which it lends, play the role of capitalist to other investors from the private sector, and work to develop capital markets in developing countries. In 1999, the IFC approved financing of US$5.3 billion from its own account in 255 projects and other activities carried out by the private sector.
Multilateral Investment Guarantee Agency (MIGA)
MIGA was established in 1988. This World Bank affiliate promotes private investment in developing countries. It provides guarantees on investment to protect investors from non-commercial risks such as war or nationalisation. It also provides advisory services to governments to help them find ways to attract private investment in their countries. New Zealand is not currently a member of MIGA.
