International Bank for Reconstruction and Development
The International Bank for Reconstruction and Development is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group, is headquartered in Washington, D. C. United States, it was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm, the International Development Association, are collectively known as the World Bank as they share the same leadership and staff. Following the reconstruction of Europe, the Bank's mandate expanded to advancing worldwide economic development and eradicating poverty; the IBRD provides commercial-grade or concessional financing to sovereign states to fund projects that seek to improve transportation and infrastructure, domestic policy, environmental consciousness, energy investments, access to food and potable water, access to improved sanitation.
The IBRD is owned and governed by its member states, but has its own executive leadership and staff which conduct its normal business operations. The Bank's member governments are shareholders which contribute paid-in capital and have the right to vote on its matters. In addition to contributions from its member nations, the IBRD acquires most of its capital by borrowing on international capital markets through bond issues. In 2011, it raised $29 billion USD in capital from bond issues made in 26 different currencies; the Bank offers a number of financial services and products, including flexible loans, risk guarantees, financial derivatives, catastrophic risk financing. It reported lending commitments of $26.7 billion made to 132 projects in 2011. The International Bank for Reconstruction and Development and International Monetary Fund were established by delegates at the Bretton Woods Conference in 1944 and became operational in 1946; the IBRD was established with the original mission of financing the reconstruction efforts of war-torn European nations following World War II, with goals shared by the Marshall Plan.
The Bank issued its inaugural loan of $250 million to France in 1947 to finance infrastructure projects. The institution established its first field offices in Paris, Copenhagen and Prague in the former Czechoslovakia. Throughout the remainder of the 1940s and 1950s, the Bank financed projects seeking to dam rivers, generate electricity, improve access to water and sanitation, it invested in France and Luxembourg's steel industry. Following the reconstruction of Europe, the Bank's mandate has transitioned to eradicating poverty around the world. In 1960, the International Development Association was established to serve as the Bank's concessional lending arm and provide low and no-cost finance and grants to the poorest of the developing countries as measured by gross national income per capita; the IBRD is governed by the World Bank's Board of Governors which meets annually and consists of one governor per member country. The Board of Governors delegates most of its authority over daily matters such as lending and operations to the Board of Directors.
The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group. The executive directors collectively represent all 189 member states of the World Bank; the president oversees the IBRD's overall direction and daily operations. As of July 2012, Jim Yong Kim serves as the President of the World Bank Group; the Bank and IDA operate with a staff of 10,000 employees. Although members contribute capital to the IBRD, the Bank acquires funds by borrowing on international capital markets by issuing bonds; the Bank raised $29 billion USD worth of capital in 2011 from bonds issued in 26 different currencies. The IBRD has enjoyed a triple-A credit rating since 1959, which allows it to borrow capital at favorable rates, it offers benchmark and global benchmark bonds, bonds denominated in non-hard currencies, structured notes with custom-tailored yields and currencies, discount notes in U. S. dollars and eurodollars. In 2011, the IBRD sought an additional $86 billion USD as part of a general capital increase to increase its lending capacity to middle-income countries.
The IBRD expressed in February 2012 its intent to sell kangaroo bonds with maturities lasting until 2017 and 2022. The IBRD provides financial services as well as strategic coordination and information services to its borrowing member countries; the Bank only finances sovereign governments directly. The World Bank Treasury is the division of the IBRD that manages the Bank's debt portfolio of over $100 billion and financial derivatives transactions of $20 billion; the Bank offers flexible loans with maturities as long as 30 years and custom-tailored repayment scheduling. The IBRD offers loans in local currencies. Through a joint effort between the IBRD and the International Finance Corporation, the Bank offers financing to subnational entities either with or without sovereign guarantees. For borrowers needing quick financing for an unexpected change, the IBRD operates a Deferred Drawdown Option which serves as a line of credit with features similar to the Bank's flexible loan program. Among the World Bank Group's credit enhancement and guarantee products, the IBRD offers policy-based guarantees to cover countries' sovereign default risk, partial credit guarantees to cover the credit risk of a sovereign government or subnational entity, pa
The European Commission is an institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU. Commissioners swear an oath at the European Court of Justice in Luxembourg City, pledging to respect the treaties and to be independent in carrying out their duties during their mandate. Unlike in the Council of the European Union, where members are directly and indirectly elected, the European Parliament, where members are directly elected, the Commissioners are proposed by the Council of the European Union, on the basis of suggestions made by the national governments, appointed by the European Council after the approval of the European Parliament; the Commission operates with 28 members of the Commission. There is one member per member state, but members are bound by their oath of office to represent the general interest of the EU as a whole rather than their home state. One of the 28 is the Commission President proposed by the European Council and elected by the European Parliament.
The Council of the European Union nominates the other 27 members of the Commission in agreement with the nominated President, the 28 members as a single body are subject to a vote of approval by the European Parliament. The current Commission is the Juncker Commission, which took office in late 2014, following the European Parliament elections in May of the same year; the term Commission is variously used, either in the narrow sense of the 28-member College of Commissioners or to include the administrative body of about 32,000 European civil servants who are split into departments called directorates-general and services. The procedural languages of the Commission are English and German; the Members of the Commission and their "cabinets" are based in the Berlaymont building in Brussels. The European Commission derives from one of the five key institutions created in the supranational European Community system, following the proposal of Robert Schuman, French Foreign Minister, on 9 May 1950.
Originating in 1951 as the High Authority in the European Coal and Steel Community, the Commission has undergone numerous changes in power and composition under various presidents, involving three Communities. The first Commission originated in 1951 as the nine-member "High Authority" under President Jean Monnet; the High Authority was the supranational administrative executive of the new European Coal and Steel Community. It took office first on 10 August 1952 in Luxembourg City. In 1958, the Treaties of Rome had established two new communities alongside the ECSC: the European Economic Community and the European Atomic Energy Community; however their executives were called "Commissions" rather than "High Authorities". The reason for the change in name was the new relationship between the Council; some states, such as France, expressed reservations over the power of the High Authority, wished to limit it by giving more power to the Council rather than the new executives. Louis Armand led the first Commission of Euratom.
Walter Hallstein led the first Commission of the EEC, holding the first formal meeting on 16 January 1958 at the Château of Val-Duchesse. It achieved agreement on a contentious cereal price accord, as well as making a positive impression upon third countries when it made its international debut at the Kennedy Round of General Agreement on Tariffs and Trade negotiations. Hallstein notably began the consolidation of European law and started to have a notable impact on national legislation. Little heed was taken of his administration at first but, with help from the European Court of Justice, his Commission stamped its authority solidly enough to allow future Commissions to be taken more seriously. In 1965, accumulating differences between the French government of Charles de Gaulle and the other member states on various subjects triggered the "empty chair" crisis, ostensibly over proposals for the Common Agricultural Policy. Although the institutional crisis was solved the following year, it cost Etienne Hirsch his presidency of Euratom and Walter Hallstein the EEC presidency, despite his otherwise being viewed as the most'dynamic' leader until Jacques Delors.
The three bodies, collectively named the European Executives, co-existed until 1 July 1967 when, under the Merger Treaty, they were combined into a single administration under President Jean Rey. Owing to the merger, the Rey Commission saw a temporary increase to 14 members—although subsequent Commissions were reduced back to nine, following the formula of one member for small states and two for larger states; the Rey Commission completed the Community's customs union in 1968, campaigned for a more powerful, European Parliament. Despite Rey being the first President of the combined communities, Hallstein is seen as the first President of the modern Commission; the Malfatti and Mansholt Commissions followed with work on monetary co-operation and the first enlargement to the north in 1973. With that enlargement, the Commission's membership increased to thirteen under the Ortoli Commission, which dealt with the enlarged community during economic and international instability at that time; the external representation of the Community took a step forward when President Roy Jenkins, recruited to the presidency in January 1977 from his role as Home Secretary of the United Kingdom's Labour government, became the first President to att
OPEC Fund for International Development
The OPEC Fund for International Development is the intergovernmental development finance institution established in 1976 by the Member States of the Organization of the Petroleum Exporting Countries. OFID was conceived at the Conference of the Sovereigns and Heads of State of OPEC Member Countries, held in Algiers, Algeria, in March 1975. A Solemn Declaration of the Conference "reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment", called for measures to strengthen cooperation between these countries. OFID's objective is to reinforce financial cooperation between OPEC Member Countries and other developing countries, by providing financial support to the latter for their socioeconomic development; the institution's central mission is to foster South-South Partnership with fellow developing countries worldwide with the aim of eradicating poverty. OFID's headquarters are located in Austria; the current Director-General is Dr Abdulhamid Alkhalifa of Saudi Arabia.
He assumed office as Director-General and Chief Executive Officer of OFID on November 1, 2018. The OFID Headquarters was the residential palace of the Austrian Archduke Wilhelm Franz Karl. Built between 1864 and 1868 to the architectural design of Theophil von Hansen, the palace was sold to the German Order of Knights in 1870 and used as headquarters of the Grand Master, the last of whom was Archduke Eugen. From 1894, it served as the palace of both the Grand and German Masters, acquiring the name, Deutschmeister-Palais. In 1938 following the dissolution of the German Order of Knights, the building was seized by National Socialist Germany and, in 1942, it was handed over to the police authorities. Between 1945 and 1975, it served as headquarters of the Vienna police. After an interregnum, the building became the property of OFID. Following the First OPEC Summit in Algiers, Algeria, in 1975, Member Countries expressed their commitment to assist the developing countries through a collective financial facility.
As a result, in 1976, the Finance Ministers of Member Countries met and established the OPEC Special Fund, through which Member Countries would channel aid to developing countries. The OPEC Special Fund started its operations with initial resources of about $800 million. By the end of 1977 it had extended 71 loans to 58 developing countries, had channeled donations from its Member Countries to other development institutions, including the International Monetary Fund Trust Fund and the International Fund for Agricultural Development; as a result of its successful performance, member countries decided in 1980 to convert the temporary facility into a permanent legal entity called the OPEC Fund for International Development. OFID has 13 member countries: Algeria, Gabon, Iran, Kuwait, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela. Ecuador reactivated its membership in June 2014 after a 22-year absence. OFID provides financial assistance in a number of ways, with the distribution between the different types of aid changing over time as conditions in recipient countries evolve and needs alter.
The methods of funding have included: Extending concessionary financial assistance in the form of loans for development projects and programs, balance of payments support and trade financing Financing private-sector activities in developing countries Providing grants in support of technical assistance, food aid and similar activities, humanitarian emergency relief Contributing to the resources of other development institutions whose work benefits developing countries Serving as an agent of OPEC Member Countries in the international financial arena whenever collective action is deemed appropriate OFID's resources consist of voluntary contributions made by its member countries and the accumulated reserves derived from the institution's various operations. A replenishment of US$1 billion was approved in June 2011 by the institution's supreme authority, the Ministerial Council, as a direct response to the increasing needs of developing countries and the negative impact of the financial crisis on their economies.
All developing countries are, in principle, eligible for OFID assistance, although the least developed countries are given higher priority and have received more than one-half of the institution’s cumulative commitments to date. Eligible are international institutions whose activities benefit the developing countries. OFID Member Countries are excluded from benefiting from assistance, except in the case of disaster relief or within the context of a regional program. Over the years, OFID has spread its presence to 134 countries, of which 53 are in Africa, 43 in Asia, 31 in Latin America and the Caribbean, 7 in Europe. OFID's operations are organized into 10 focus areas: Agriculture: Funding has helped boost crop and livestock production, as well as improve rural infrastructure, such as irrigation systems and storage facilities for animal fodder. Support has been extended to help promote agricultural research. Education: OFID's financing has helped construct and rehabilitate schools, purchase equipment and teaching materials, as well as provide teacher training.
OFID has sponsored the attendance of participants from developing countries to various conferences and workshops. Energy: A lead partner in the UN’s Sustainable Energy for All initiative, OFID has supported energy projects ranging from infrastructure and equipment provision to research and capacity building. Financial: Support to this sector has been the channeling of funds to Micro-, small- and medi
For other forms of development, see Development. International development or global development is a broad concept denoting the idea that societies and countries have differing levels of'development' on an international scale, it is the basis for international classifications such as developed country, developing country and least developed country, for a field of practice and research that in various ways engages with international development processes. There are, many schools of thought and conventions regarding which are the exact features constituting the'development' of a country. Development has been synonymous with economic development. More writers and practitioners have begun to discuss development in the more holistic and multi-disciplinary sense of human development. Other related concepts are, for instance, quality of life or subjective well-being.'International development' is different from the simple concept of'development'. Whereas the latter, at its most basic, denotes the idea of change through time, international development has come to refer to a distinct field of practice and research.
It remains related to the set of institutions - the Bretton Woods Institutions - that arose after the Second World War with a focus on economic growth, alleviating poverty, improving living conditions in colonised countries. The international community has codified development aims in, for instance, the Millennium Development Goals and Sustainable Development Goals. Although international relations and international trade have existed for many hundreds of years, it is only in the past century that international development theory emerged as a separate body of ideas. More it has been suggested that'the theory and practice of development is inherently technocratic, remains rooted in the high modernist period of political thought that existed in the immediate aftermath of the Second World War'. Throughout the 20th century, before the concept of international development became a common word, four aspects were used to describe the idea: political and economic liberalism, the significance of "free markets" social evolution in hierarchized environment Marxist critiques of class and imperialism anti-colonial take on cultural differences and national self-determination The second half of the 20th century has been called the'era of development'.
The origins of this era have been attributed to: the need for reconstruction in the immediate aftermath of World War II. The start of the Cold War and the desire of the United States and its allies to prevent the Third World from drifting towards communism. International Development in its meaning is geared towards colonies that gained independence; the governance of the newly independent states should be constructed so that the inhabitants enjoy freedom from poverty and insecurity. It has been argued that this era was launched on January 20, 1949, when Harry S. Truman made these remarks in his inaugural address: Before this date, the United States had taken a leading role in the creation of the International Bank for Reconstruction and Development and the International Monetary Fund, both established in 1944, in the United Nations in 1945; the launch of the Marshall Plan was another important step in setting the agenda for international development, combining humanitarian goals with the creation of a political and economic bloc in Europe, allied to the U.
S. This agenda was given conceptual support during the 1950s in the form of modernization theory espoused by Walt Rostow and other American economists; the changes in the'developed' world's approach to international development were further necessitated by the gradual collapse of Western Europe's empires over the next decades. By the late 1960s, dependency theory arose analysing the evolving relationship between the West and the Third World. In the 1970s and early 1980s, the modernists at the World Bank and IMF adopted the neoliberal ideas of economists such as Milton Friedman or Béla Balassa, which were implemented in the form of structural adjustment programs, while their opponents were promoting various'bottom up' approaches, ranging from civil disobedience and conscientization to appropriate technology and Rapid Rural Appraisal. In response various parts of the UN system led a counter movement, which in the long run has proved to be successful, they were led by the International Labour Organization, influenced by Paul Streeten by UNICEF.
UNDP though headed by a conservative US republican, put forward the concept of Human Development, thanks to Mahboub ul Haq and Amartya Sen, thus changing the nature of the development dialogue to focus on human needs and capabilities. By the 1990s, there were some writers for whom development theory had reached an impasse and some academics were imagining a postdevelopment era; the Cold War had ended, capitalism had become the dominant mode of social organization, UN statistics showed that living standards around the world had improved over the past 40 years. A large portion of the world's population were still living in poverty, their governments were crippled by debt and concerns about the environmental impact of globalization were rising. In response to the impasse, the rhetoric of development is now focusing on the issue of pove
The United Nations is an intergovernmental organization, tasked to maintain international peace and security, develop friendly relations among nations, achieve international co-operation and be a centre for harmonizing the actions of nations. The headquarters of the UN is in Manhattan, New York City, is subject to extraterritoriality. Further main offices are situated in Geneva, Nairobi and The Hague; the organization is financed by voluntary contributions from its member states. Its objectives include maintaining international peace and security, protecting human rights, delivering humanitarian aid, promoting sustainable development and upholding international law; the UN is the largest, most familiar, most internationally represented and most powerful intergovernmental organization in the world. In 24 October 1945, at the end of World War II, the organization was established with the aim of preventing future wars. At its founding, the UN had 51 member states; the UN is the successor of the ineffective League of Nations.
On 25 April 1945, 50 governments met in San Francisco for a conference and started drafting the UN Charter, adopted on 25 June 1945 in the San Francisco Opera House, signed on 26 June 1945 in the Herbst Theatre auditorium in the Veterans War Memorial Building. This charter took effect on 24 October 1945; the UN's mission to preserve world peace was complicated in its early decades during the Cold War between the United States and Soviet Union and their respective allies. Its missions have consisted of unarmed military observers and armed troops with monitoring and confidence-building roles; the organization's membership grew following widespread decolonization which started in the 1960s. Since 80 former colonies had gained independence, including 11 trust territories, which were monitored by the Trusteeship Council. By the 1970s its budget for economic and social development programmes far outstripped its spending on peacekeeping. After the end of the Cold War, the UN shifted and expanded its field operations, undertaking a wide variety of complex tasks.
The UN has six principal organs: the General Assembly. The UN System agencies include the World Bank Group, the World Health Organization, the World Food Programme, UNESCO, UNICEF; the UN's most prominent officer is the Secretary-General, an office held by Portuguese politician and diplomat António Guterres since 1 January 2017. Non-governmental organizations may be granted consultative status with ECOSOC and other agencies to participate in the UN's work; the organization, its officers and its agencies have won many Nobel Peace Prizes. Other evaluations of the UN's effectiveness have been mixed; some commentators believe the organization to be an important force for peace and human development, while others have called the organization ineffective, biased, or corrupt. In the century prior to the UN's creation, several international treaty organizations such as the International Committee of the Red Cross was formed to ensure protection and assistance for victims of armed conflict and strife.
In 1914, a political assassination in Sarajevo set off a chain of events that led to the outbreak of World War I. As more and more young men were sent down into the trenches, influential voices in the United States and Britain began calling for the establishment of a permanent international body to maintain peace in the postwar world. President Woodrow Wilson became a vocal advocate of this concept, in 1918 he included a sketch of the international body in his 14-point proposal to end the war. In November 1918, the Central Powers agreed to an armistice to halt the killing in World War I. Two months the Allies met with Germany and Austria-Hungary at Versailles to hammer out formal peace terms. President Wilson wanted peace, but the United Kingdom and France disagreed, forcing harsh war reparations on their former enemies; the League of Nations was approved, in the summer of 1919 Wilson presented the Treaty of Versailles and the Covenant of the League of Nations to the US Senate for ratification.
On January 10, 1920, the League of Nations formally comes into being when the Covenant of the League of Nations, ratified by 42 nations in 1919, takes effect. However, at some point the League became ineffective when it failed to act against the Japanese invasion of Manchuria as in February 1933, 40 nations voted for Japan to withdraw from Manchuria but Japan voted against it and walked out of the League instead of withdrawing from Manchuria, it failed against the Second Italo-Ethiopian War despite trying to talk to Benito Mussolini as he used the time to send an army to Africa, so the League had a plan for Mussolini to just take a part of Ethiopia, but he ignored the League and invaded Ethiopia, the League tried putting sanctions on Italy, but Italy had conquered Ethiopia and the League had failed. After Italy conquered Ethiopia and other nations left the league, but all of them realised that they began to re-arm as fast as possible. During 1938, Britain and France tried negotiating directly with Hitler but this failed in 1939 when Hitler invaded Czechoslovakia.
When war broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war. The earliest concrete plan for a new world organization began under the aegis of the U. S. State Department in 1939; the text of the "Declaration by United Nations" was drafted at the White House on December 29, 1941, by President Franklin D. Roosevelt, Prime Minister Winston Churchill, Roosevelt aide Harry Hopkins
Geneva is the second-most populous city in Switzerland and the most populous city of Romandy, the French-speaking part of Switzerland. Situated where the Rhône exits Lake Geneva, it is the capital of the Canton of Geneva; the municipality has a population of 200,548, the canton has 495,249 residents. In 2014, the compact agglomération du Grand Genève had 946,000 inhabitants in 212 communities in both Switzerland and France. Within Swiss territory, the commuter area named "Métropole lémanique" contains a population of 1.26 million. This area is spread east from Geneva towards the Riviera area and north-east towards Yverdon-les-Bains, in the neighbouring canton of Vaud. Geneva is a global city, a financial centre, a worldwide centre for diplomacy due to the presence of numerous international organizations, including the headquarters of many agencies of the United Nations and the Red Cross. Geneva hosts the highest number of international organizations in the world, it is where the Geneva Conventions were signed, which chiefly concern the treatment of wartime non-combatants and prisoners of war.
In 2017, Geneva was ranked as the world's fifteenth most important financial centre for competitiveness by the Global Financial Centres Index, fifth in Europe behind London, Zürich and Luxembourg. In 2019 Geneva was ranked among the ten most liveable cities in the world by Mercer together with Zürich and Basel; the city has been referred to as the world's most compact metropolis and the "Peace Capital". In 2017, Geneva was ranked as the seventh most expensive city in the world. Geneva was ranked third in purchasing power in a global cities ranking by UBS in 2018; the city was mentioned in Latin texts, by Caesar, with the spelling Genava from the Celtic *genawa- from the stem *genu-, in the sense of a bending river or estuary. The medieval county of Geneva in Middle Latin was known as pagus major Genevensis or Comitatus Genevensis. After 1400 it became the Genevois province of Savoy; the name takes various forms in modern languages, Geneva in English, French: Genève, German: Genf, Italian: Ginevra, Romansh: Genevra.
The city shares the origin of * genawa "estuary", with the Italian port city of Genoa. Geneva was an Allobrogian border town, fortified against the Helvetii tribe, when the Romans took it in 121 BC, it became Christian under the Late Roman Empire, acquired its first bishop in the 5th century, having been connected to the Bishopric of Vienne in the 4th. In the Middle Ages, Geneva was ruled by a count under the Holy Roman Empire until the late 14th century, when it was granted a charter giving it a high degree of self-governance. Around this time, the House of Savoy came to at least nominally dominate the city. In the 15th century, an oligarchic republican government emerged with the creation of the Grand Council. In the first half of the 16th century, the Protestant Reformation reached the city, causing religious strife, during which Savoy rule was thrown off and Geneva allied itself with the Swiss Confederacy. In 1541, with Protestantism on the rise, John Calvin, the Protestant Reformer and proponent of Calvinism, became the spiritual leader of the city and established the Republic of Geneva.
By the 18th century, Geneva had come under the influence of Catholic France, which cultivated the city as its own. France tended to be at odds with the ordinary townsfolk, which inspired the failed Geneva Revolution of 1782, an attempt to win representation in the government for men of modest means. In 1798, revolutionary France under the Directory annexed Geneva. At the end of the Napoleonic Wars, on 1 June 1814, Geneva was admitted to the Swiss Confederation. In 1907, the separation of Church and State was adopted. Geneva flourished in the 19th and 20th centuries, becoming the seat of many international organizations. Geneva is located at 46°12' North, 6°09' East, at the south-western end of Lake Geneva, where the Rhône flows out, it is surrounded by three mountain chains, each belonging to the Jura: the Jura main range lies north-westward, the Vuache southward, the Salève south-eastward. The city covers an area of 15.93 km2, while the area of the canton is 282 km2, including the two small exclaves of Céligny in Vaud.
The part of the lake, attached to Geneva has an area of 38 km2 and is sometimes referred to as petit lac. The canton has only a 4.5-kilometre-long border with the rest of Switzerland. Of 107.5 km of border, 103 are shared with France, the Département de l'Ain to the north and west and the Département de la Haute-Savoie to the south and east. Of the land in the city, 0.24 km2, or 1.5%, is used for agricultural purposes, while 0.5 km2, or 3.1%, is forested. The rest of the land, 14.63 km2, or 91.8%, is built up, 0.49 km2, or 3.1%, is either rivers or lakes and 0.02 km2, or 0.1%, is wasteland. Of the built up area, industrial buildings made up 3.4%, housing and buildings made up 46.2% and transportation infrastructure 25.8%, while parks, green belts and sports fields made up 15.7%. Of the agricultural land, 0.3% is used for growing crops. Of the water in the municipality, 0.2 % is composed of lakes and 2.9 % streams. The altitude of Geneva is 373.6 metres, corresponds to the altitude of
European Investment Bank
The European Investment Bank is the European Union's nonprofit long-term lending institution established in 1958 under the Treaty of Rome. As a "policy-driven bank" whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about European integration and social cohesion, it should not be confused with the European Central Bank, based in Frankfurt or with the European Bank for Reconstruction and Development, based in London. The EIB is a publicly owned international financial institution and its shareholders are the EU member states, thus the member states set the bank's broad policy goals and oversee the two independent decision-making bodies—the board of governors and the board of directors. It is the world's largest international public lending institution; the European Investment Bank was founded in Brussels in 1958 when the Treaty of Rome came into force. It relocated to Luxembourg, its current headquarters, in 1968. By 1999, it had more than 1,000 staff members, a figure that had nearly doubled by 2012.
The EIB Group was formed in 2000, comprising the EIB and the European Investment Fund, the EU's venture capital arm that provides finances and guarantees for small and medium enterprises. The EIB is the EIF's majority shareholder, with 62% of the shares. In 2012, the EIB Institute was created, with the goal of promoting "European initiatives for the common good" in EU Member States and candidate and potential candidate countries, as well as EFTA nations; the total subscribed capital of the Bank was EUR 232 billion in 2012. The capital of the EIB was doubled between 2007 and 2009 in response to the crisis; the EU heads of government agreed to increase paid-in capital by EUR 10 billion in June 2012, with implementation expected in early 2013. For the fiscal year 2011, EIB lent EUR 61 billion in various loan products, bringing total outstanding loans to EUR 395 billion. Nearly 90% of these were with EU member states with the remainder dispersed between around 150 "partner countries"; the bank uses its AAA credit rating and funds itself by raising equivalent amounts on the capital markets.
As the "Bank of the European Union", the EIB's mission is to make a difference to the future of Europe and its partners by supporting sound investments which further EU policy goals. Although about 90 percent of projects financed by the EIB are based in EU member countries, the bank does fund projects in about 150 other countries—non-EU Southeastern European countries, Mediterranean partner countries, ACP countries and Latin American countries, the members of the Eastern Partnership and Russia. According to the EIB, it works in these countries to implement the financial pillar of the union's external cooperation and development policies by encouraging private sector development, infrastructure development, security of energy supply and environmental sustainability. In the wake of the 2014 Russian military intervention in Ukraine, the Council of the European Union instructed the EIB to suspend the signature of new financing operations in Russia. Operating strategy: To finance viable capital projects which further EU objectives To borrow on the capital markets to finance these projectsLending strategy within the EU Within the EU the EIB has six priority objectives: Cohesion and convergence Support for small and medium-sized enterprises Environmental sustainability Knowledge economy Development of Trans-European Networks of transport and energy Sustainable and secure energy supplyLending strategy outside the EU Outside the EU the EIB's priority objectives for lending activity are: Private sector development Financial sector development Infrastructure development Security of energy supply Environmental sustainability EU presenceWhen making loans outside the EU, the bank has lending mandates based on EU external cooperation and development policies, which differ from region to region.
Pre-Accession: Candidate and Potential Candidate countries in the Enlargement region European Neighbourhood: Mediterranean Neighbourhood / Russia and Eastern Neighbours Development: Africa and Caribbean / Republic of South Africa Economic Cooperation: Asia and Latin America Within pre-accession countries, activities support both the EU priority lending objectives and the objectives of the external mandates. Transport Policy, Energy Policy, Transparency Policy, Climate Strategy, Governance at the EIB, Complaints Mechanism Policy, Anti-Fraud and Anti-Corruption Policy, Integrity Policy and Compliance Charter, Statement on Environmental and Social Principles and Standards, EIB Whistleblowing Policy, EIB Policy towards weakly regulated, non-transparent and uncooperative jurisdictions; as such, the European Investment Bank is represented in the Standard Committee of SuRe® – The Standard for Sustainable and Resilient Infrastructure, a global voluntary standard, developed by the Swiss Global Infrastructure Basel Foundation and the French bank Natixis, which integrates key criteria of sustainability and resilience into infrastructure development and upgrade.
The EIB is governed by the: Board of Governors – the Finance Ministers of the Member States. Their mandate is to authorise EIB activities outside the Union, form credit policy guidelines and approve the annual accounts. Board of directors – twenty-eight members. There are eighteen alt