As the World Bank’s management pushes through reforms that it claims will make the organization leaner and more efficient, they are also moving toward a new financial and risk model that will allow the bank to lend about 70 to 80 percent more to borrowing countries each year — without seeking more capital from donor countries.
The change will immediately benefit countries like Brazil, China and India, each of which will be able to borrow up to $2.5 billion more annually, Bertrand Badre, the bank’s chief financial officer, recently told reporters.
As the World Bank’s new financial model hopes to increase financial firepower in order to meet forecasted demand, Badre explained that changing the risk model will enable the Washington, D.C.-based institution to raise lending to $26-28 billion each year, up from the current level of $15 billion provided by the International Bank for Reconstruction and Development, the bank’s fund for middle-income countries.