The economies of the world are all at different stages of development. Some countries, such as the United States and European countries, have highly developed economies that have created significant wealth for their citizens. On the other hand, other countries, such as Africa and Asia, are underdeveloped compared to the developed countries of Europe and the USA.
The World Bank was initially created to promote economic development. It was originally formed shortly after World War II to rebuild the economies of war-torn countries, but its mission is now global in scope. The general mission of the World Bank is to provide long-term financing for economic development.
The World Bank is comprised of two institutions. The International Bank for Reconstruction and Development (IBRD) provides low-interest and no-interest loans to developing countries that cannot get financing elsewhere. The IBRD also provides technical and research assistance to developing countries. Examples of projects funded by these loans include infrastructure projects, such as power plants, roads, railroads, ports, telecommunication, and water systems. Loans have also been provided for health, education, and debt relief. As you can probably see, these projects are foundational for further economic development. For example, if a country doesn’t have a healthy, educated population with access to roads, power, safe water, and communications, it will not have significant economic development.