Which Six Countries Are Not Members Of The World Bank And Why?

This year, in June, former Mastercard CEO Ajay Banga became the first Indian-American to take over as the World Bank¡¯s President. The financial institution aims to find solutions to reduce poverty and build shared prosperity in developing countries by providing them with the required financial assistance through loans and grants.

The World Bank¡¯s ultimate aim is to create a world free of poverty. But do you know that out of the total 195 countries in the world, not all are members of the World Bank group? At present, there are 189 member nations of the World Bank.

List Of Countries That Are Not Members Of The World Bank

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1.North Korea

North Korea has longtime been running a closed border policy that has seen the country abscond from most of the international organizations. The country has been under Soviet control, adopted communist ideals that are prevalent throughout the country, and has been secluded from working towards self-sufficiency without any outside help. So, joining an international organisation like the World Bank is viewed as interference by the communist nation, as per the World Atlas report.

2.Andorra

Covering an area of only 18 square miles and having a population of about 77,000, this microstate is not a member of the World Bank. The probable reason for this is that Andorra is under the jurisdiction of both France and Spain, who are both members of the World Bank, and any monetary policy that affects Spain and France affects Andorra too, by extension.

3.Cuba

Similar to North Korea, the nation of Cuba was under communist rule, which has seen the country become secluded from most foreign relations with its neighbours and other international organisations. Its economy is strictly controlled by the state, which runs everything in a bid to sustain itself.

4.Monaco

Monaco, like Andorra, is another microstate, which is an enclave of France that has long faced struggles in its attempt to become an independent sovereign state. It became a reality in 1993; however, Monaco¡¯s economy is tied to the French economy, and that could be the possible reason why they are not direct members of the World Bank.

5.Liechtenstein

Liechtenstein is an independent microstate that has one of the highest GDP per capita in the world due to its small population of about 36,000 people. In place of the World Bank, the small state has a customs union and monetary union with Switzerland, which could be the reason why they are not engaged with any other international organisation.

6.Taiwan

Taiwan is also among the nations that are not members of the World Bank. As per the World Bank¡¯s website, Taiwan is not listed as a separate country for World Development Indicators. For most indicators, Taiwan is not included in the estimate for China but is added to the world aggregate and the aggregate for high-income countries. There are some exceptions. For some agricultural data series received from the Food and Agriculture Organisation, Taiwan, China, is part of the numbers cited for China (as are Macao, China, and Hong Kong, China).

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Also Read: 10 Countries That Are Serving The Biggest Loans From World Bank

List Of Countries That Are Members Of The World Bank

As per World Bank's updated list, these 189 countries are currently among its member nations (along with their joining dates):

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How Does A Country Become World Bank Group¡¯s Member?

To become a member of the World Bank, under the IBRD Articles of Agreement, a country must first join the International Monetary Fund (IMF). Membership in IDA, IFC, and MIGA is conditional on membership in IBRD.

The organisations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organisations on all matters, including policy, financial, and membership issues, as per the World Bank¡¯s website.

Member countries govern the World Bank Group through the Boards of Governors and the Boards of Executive Directors. These bodies make all major decisions for the organisations.

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5 Organisations That All Fall Under The World Bank Group

The World Bank Group consists of these five organisations:

1. The International Bank of Reconstruction and Development (IBRD)

IBRD was established in 1945 and has 188 members at present. IBRD aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development, through loans, guarantees, and non-lending services, which include analytical and advisory services. The IBRD is owned by the member countries whose voting power is linked to its capital subscription based on the country's relative economic strength.

2. The International Development Association (IDA)

IDA was established in 1960 and currently has 172 members. IDA is the concessional arm of the World Bank and plays a key role in supporting the Bank's poverty reduction mission. IDA assistance is focused on the world's 79 poorest countries, to which it provides interest-free loans (known as 'credits') and other non-lending services.

3. International Finance Corporation (IFC)

Established in 1956, IFC is owned by 184 member countries, a group that collectively determines the policies. It works in more than 100 developing countries allowing companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

4. Multilateral Investment Guarantee Agency (MIGA)

On April 12, 1988 an international convention established MIGA as the newest member of the World Bank Group. The agency opened for business as a legally separate and financially independent entity and has 179 countries in membership. MIGA was created to complement public and private sources of investment insurance against non-commercial risks in developing countries. MIGA¡¯s multilateral character and joint sponsorship by developed and developing countries were seen as significantly enhancing confidence among cross-border investors. The mission is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives.

5. International Centre for Settlement of Investment Disputes (ICSID)

ICSID is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID or the Washington Convention) with over one hundred and forty member States. The Convention sets forth ICSID's mandate, organization and core functions. The primary purpose of ICSID is to provide facilities for conciliation and arbitration of international investment disputes.

When Was The World Bank Formed?

The World Bank Group is a multilateral financial organization established in July 1945. It was founded as the International Bank for Reconstruction and Development (IBRD) in 1944 at the Bretton Woods Conference to provide loans to rebuild countries devastated by World War II. The World Bank comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).

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