Affiliated with the United Nations, the World Bank was formally established in 1946 to finance projects to spur the economic development of member nations, most notably those in Europe and the Third World. The bank has been strongly criticized by environmental and human rights groups in recent years for funding Third World projects that destroy rain forests, damage the environment, and harm villagers and indigenous peoples.

The bank is headquartered in Washington, D.C. It is administered by a board of governors and a group of executive directors. The board of governors is composed principally of the world's finance ministers and convenes annually. There are 21 executive directors who carry out policy matters and approve all loans. The World Bank usually makes loans directly to governments or to private enterprises with their government's guarantee when private capital is not available on reasonable terms. Generally, the Bank lends only...