Billions of dollars have been allocated by the World Bank for infrastructure projects in the Chinese Silk Road Economic Belt, according to the bank’s president Jim Yong Kim at the 1+6 roundtable meeting in Beijing.
“Investments, particularly in infrastructure, are extremely important. The Chinese initiative of the economic belt of the Silk Road catalyzes infrastructure investments,” he told the heads of major international organizations.
“The World Bank will help the countries within the initiative to take maximum advantage of the opportunities provided, in accordance with their own development strategies,” he added.
According to the World Bank’s International Finance Corporation (IFC), an extra $1 billion is expected to be raised within a year as part of a planned $5 billion infrastructure investment fund for China’s Road and Belt program.
“We have raised the first $1.1 billion, we are going to raise the next billion probably within the next year, that’s my guess,” IFC Chief Investment Officer for infrastructure and natural resources Ram Mahidhara told Reuters.
The fundraising plans are part of IFC’s so-called Managed Co-Lending Portfolio Program (MCPP) that seeks to raise more than $5 billion from investors by 2021, he said. A large part of the funds will be deployed for Belt and Road related projects, the official added….
Gee that’s awful kind of them, er, I mean you, the taxpayers of the so-called “sovereign nations” which fund the WB, who btw never see a dime of return on their “investment”.
Is the World Bank a nonprofit organization?
The World Bank was not established to make a profit. It is not a bank in the traditional understanding of the word and does not have private shareholders.
The organisation does sometimes have funds available at the end of the financial year.
The following explanation of what happens to this surplus is extracted from the FAQ page from
We often do have a surplus at the end of the fiscal year, which is earned from the interest rates charged on some loans and from fees charged for some of our services. Some of the surplus goes to IDA—the part of the bank that provides grants and interest free loans to the world’s poorest countries. The rest of the surplus is either used for debt relief for heavily indebted poor countries, added to financial reserves, or helps us respond to unforeseen humanitarian crises.
The organisation’s own goals do not include making a profit. However, some of the income generated could arguably be said to benefit richer nations, with people in the paid employment of the bank in its base in Washington DC. Consultants who tender for work with the bank may do so with the aim of making a profit for themselves, with the tender process balancing the quality of service or product with the fee paid for it.