The World Bank
The World Bank is one of the world’s largest sources of funding and knowledge for developing countries. It consists of five institutions with a common commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
Switzerland is an active member in the governing bodies of the World Bank and participates in their development projects.
The World Bank consists of the five following institutions:
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
In 2023, the World Bank launched its new vision and mission of creating "a world free of poverty on a livable planet", thus underlining the importance of sustainable development for successful poverty reduction.
Switzerland and the World Bank
Switzerland joined the IBRD in 1992 and represents a constituency of nine countries on the 25-member Board of Directors. In addition to Switzerland, the constituency consists of Azerbaijan, Kazakhstan, Kyrgyzstan, Poland, Serbia, Tajikistan, Turkmenistan and Uzbekistan.
Switzerland is committed to the following priorities at the World Bank:
- Results-oriented, effective and targeted financing of development projects according to the World Bank's expertise and priorities;
- Supporting all members of the World Bank, including poorer countries and crisis regions;
- Strengthening the World Bank in its role as a leading knowledge bank;
- Deepening systematic cooperation with other development partners, in particular with multilateral development banks;
- Ensuring compliance with international environmental, social and governance standards;
- Supporting countries in their transition away from fossil fuels and
- Ensuring adequate capitalisation and maintaining the AAA credit rating.
In addition to shaping the World Bank's policy, strategy and operational focus, Switzerland has also entered into strategic partnerships with the bank in the areas of water, urban infrastructure and public finance.
International Bank for Reconstruction and Development (IBRD)
The International Bank for Reconstruction and Development (IBRD) focuses on middle-income countries and is committed to sustainable development and the reduction of poverty and inequality.
The IBRD provides a combination of loans on preferable terms, knowledge and technical support. Its equity base is strengthened at irregular intervals through the increase of capital.
International Development Association (IDA)
The World Bank supports the poorest countries through the International Development Association (IDA).
IDA is the part of the World Bank that focuses on the 75 poorest countries in the world. It supports projects in the areas of health and education, infrastructure and agriculture as well as economic and institutional development.
IDA grants the countries loans on preferential terms as well as subsidies. It also has important debt relief instruments such as the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative.
IDA’s resources are generally replenished every three years by the donor countries. The strategic and operational orientation of the fund is determined in the replenishment negotiations. The latest negotiations were concluded at the end of 2024.
Since 1960, IDA has provided 533 billion US dollars to 115 countries. Annual contributions have risen continuously and average around 36 billion US dollars for the years 2021-23. Many former beneficiary countries are now IDA donor countries themselves, including China, Chile, India, South Korea and Turkey.
Switzerland and IDA
Switzerland has been a member of IDA since 1992. IDA is the fund to which Switzerland makes the largest contribution. At the last replenishment (IDA20), Switzerland made a contribution of 725 million US dollars, making it one of the largest donors and underlining the importance that it attaches to the association. Thanks to IDA's financing model, which combines partner contributions with low-cost loans from the capital market, every Swiss franc paid to IDA enables the mobilisation of an additional three Swiss francs for the recipient countries.
International Finance Corporation (IFC)
The International Finance Corporation (IFC) is the largest global development institution that focuses exclusively on the private sector in developing countries.
The IFC supports businesses in developing countries through lending, equity investments and trade finance. The IFC is also committed to creating a reliable and favorable economic policy framework for private investment.
Switzerland and the IFC
Switzerland is one of the largest supporters of the IFC's Advisory Services. As the IFC’s products, services and expertise complement those of Switzerland, their cooperation enables them to achieve joint poverty reduction goals. Switzerland supports the IFC's work in the following areas, among others:
- access to capital for SMEs;
- strengthening financial infrastructure and a business enabling environment;
- enhancing entrepreneurs' management skills and
- supporting climate finance.
