Who owns the majority of the World Bank?
The organizations that make up
Traditionally, the president of the bank has always been a U.S. citizen nominated by the United States, the largest shareholder in the bank (the managing director of the International Monetary Fund having always been a European).
The United States is the largest single shareholder, followed by Japan, Germany, the United Kingdom, and France. The rest of the shares are divided among the other member countries. A Board of Governors represents the Bank's government shareholders.
The World Bank and the United States
As the World Bank Group's largest shareholder, the United States has a long history of supporting the Bank Group's mission and addressing development challenges of vital importance through its support of Bank Group programs.
The top ten donors contributed $32.3 billion to FIFs in the last five years, comprising 36 percent of the total contributions. The United States remains the largest donor to FIFs, followed by the United Kingdom and Japan.
The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.
Although governments do hold power over countries' economies, it is the big banks and large corporations that control and essentially fund these governments. This means that the global economy is dominated by large financial institutions.
As the only World Bank Group shareholder that retains veto power over certain changes in the Bank's structure, the U.S. plays a unique role in influencing and shaping global development priorities.
As of 2023, the bank's 6 largest [PDF] shareholders—out of its 189 members—are the United States, Japan, China, Germany, France, and the United Kingdom. Ultimate policymaking authority at the bank rests with the board of governors, mostly made up of senior finance or development officials from member countries.
The Russian Federation joined the World Bank after the collapse of the Soviet Union, which led to the formation of a new state and economy as a constitutional republic. The federation joined the World Bank on June 16, 1992.
Does China belong to World Bank?
The partnership between China and the World Bank began on December 27, 1945, when it joined the organization.
The United States has the largest financial commitment to the IBRD, accounting for 16.69% of total IBRD resources. U.S. paid-in capital is $3.5 billion and U.S. callable capital is $47.8 billion.
The estimated total pay range for a President at The World Bank is $190K–$354K per year, which includes base salary and additional pay. The average President base salary at The World Bank is $200K per year.
Its bonds connect the private and public sectors to the World Bank's development goals through such investors as asset managers, insurance companies, pension funds, central banks, corporations, and bank treasuries from around the world.
Lack of Transparency and Accountability: The World Bank has also been criticized for its lack of transparency and accountability. Critics argue that the Bank has not been transparent in its decision-making processes, and that it has not adequately engaged with civil society and other stakeholders in its operations.
Top U.S. Hedge Funds | AUM |
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Bridgewater Associates | $124,317,200,000 |
Renaissance Technologies | $106,026,795,439 |
AQR Capital Management | $94,523,700,000 |
Two Sigma | $67,471,220,893 |
China's central government borrows on their behalf both domestically and abroad. World Bank loans are attractive in this regard, since its interest rates — which are linked to rates in U.S. financial markets — are lower than the lending rates in China.
About Ajay Banga
Ajay Banga was selected 14th President of the World Bank Group and began his five-year term as World Bank Group President on June 2, 2023. Ajay Banga most recently served as Vice Chairman at General Atlantic.
The U.S. Federal Reserve controls the supply of money in the U.S. When it expands the money supply using monetary policy tools, it is often described as printing money.
The USD as a reserve currency is held by foreign central banks and major financial institutions to use in international transactions, to pay for international debt or to support their domestic exchange rate.
Who is the world's economic superpower?
Rank & Country | GDP (USD billion) | GDP Per Capita (USD thousand) |
---|---|---|
#1 United States Of America (U.S.A) | 27,974 | 83.06 |
#2 China | 18,566 | 13.16 |
#3 Germany | 4,730 | 56.04 |
#4 Japan | 4,291 | 34.55 |
In other words, the United States has more formal power than any other state in all the agencies of oversight and management of the IMF and the World Bank. In the executive boards of each of the Bank and the Fund all members are represented but not all are directly represented and nor do they enjoy equal voting power.
Accountability. The World Bank Group is accountable to its shareholders and the public through a set of feedback and accountability mechanisms.
Technically the World Bank is part of the United Nations system, but its governance structure is different: each institution in the World Bank Group is owned by its member governments, which subscribe to its basic share capital, with votes proportional to shareholding.
Three of the largest exchange traded fund providers – BlackRock, State Street, and Vanguard – are also among the largest shareholders in the world. All three asset managers have trillions of dollars in assets under management, most of them passive fund assets.