How is the US involved with the World Bank?
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. Through the WBG, the U.S. participates in addressing international development challenges.
The United States was a leading force in the establishment of the International Bank for Reconstruction and Development (IBRD) in 1944 and remains the largest shareholder of the World Bank Group today.
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.
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.
As of 2022, the World Bank is run by a president and 25 executive directors, as well as 29 various vice presidents. IBRD and IDA have 189 and 174 member countries, respectively. The U.S., Japan, China, Germany and the U.K. have the most voting power.
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.
India takes the top spot. Its $39.7bn debt towards the WB recorded at the end of 2021 is double that of the next biggest debtor, Indonesia, with $19.6bn. Pakistan and Bangladesh follow with $18.3bn and $17.8bn, respectively, according to WB figures.
According to the Instructions for Schedule SE (Self-Employment Tax) at www.irs.gov, the wages of U.S. citizen employees of international organizations for services performed inside the United States are subject to self-employment tax.
THE WORLD BANK MANDATE
World Bank assistance is generally long-term and is funded by member country contributions and by issuing bonds.
The comparative advantage of the World Bank comes from its powerful combination of country depth and global breadth, public and private sector instruments and relations, multisector knowledge, and the ability to mobilize and leverage financing.
What are the criticisms of the World Bank?
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.
Felice Gorordo is the World Bank Group Alternate Executive Director for the United States since September 2023.
The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development. The World Bank Group comprises five institutions managed by their member countries.
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.
Accountability. The World Bank Group is accountable to its shareholders and the public through a set of feedback and accountability mechanisms.
Within the World Bank Group, China is one of the largest loan-taking countries.
Pakistan was the top borrower of the World Bank's International Development Association (IDA) for the fiscal year 2023, receiving $2.305 billion, as per the bank's annual report. Bangladesh and Tanzania took the second and third spots, borrowing $2.3 billion and $2.135 billion respectively.
The federation joined the World Bank on June 16, 1992. Since then, Russian projects funded by the World Bank have ranged from public administration and law to energy development and fishing.
According to the 2023 Global Wealth Report by Credit Suisse, Switzerland once again came out on top when it comes to the mean average wealth per adult at a whopping $685,230.
1) Switzerland
Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.
Which country holds more US debt than any other?
Top Foreign Holders of U.S. Debt
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt.
Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Article VII of its Articles of Agreement provides, in Section 9(a) thereof, as follows: “The Bank, its assets, property, income and its operations and transactions authorized by this Agreement, shall be immune from all taxation and from all customs duties.”
The Bank gives the staff member about one-fourth of the total tax allowance, Social Security and Medicare payment about two weeks before the IRS deadline on a quarterly basis.
IRS Foreign Bank Account Investigations
With the IRS' increased enforcement of offshore account compliance, trust reporting and income disclosure, U.S. Taxpayers are at higher risk of penalties. The failure to properly report foreign money may result in significant fines.
