736428-11-7Q AID: 8522 | 09/02/2020

The World Bank Group helps to provide loans and grants to the developing countries.
The World bank group was developed with the purpose of bridging the gap between the
rich and poor country by providing economic aids. The World bank provides various
assistance to its member countries including loans.

The loans which are granted by the world bank are of lower interest rate as compared to
other sources. The terms and conditions regarding loans and grants provided by the
World bank are decided by the bank itself. The World Bank also decide about the amount
of loan which is to be approved based on the countries repaying capacity.

The bank focuses on various areas such as education improvement, health enhancement
and infrastructure development. It also put efforts to modernize the agricultural and
financial sector of the country along with natural resource management. But it has been
criticized by the various countries as it led to more worse conditions such as inflation,
poverty and so on.

The Bank due to the criticism, changed their economic development approach by
devoting attention to the environmental aspects.

The Bank by considering the social, human and environmental aspects for economic
development may become able to deal with the currency devaluation and unsustainable
resource exports, and pollution-intensive in foreign investment. By changing its
approach, the Bank supported ‘statism’.

The Comprehensive Development Framework (CDF) is a holistic approach which lays

emphasis on linkages between social, economic and institutional aspects of development.
Poverty Reduction Strategy Papers (PRSPs) are the documents of a country which
describes the economic and social policies adopted by the country for promoting its
growth and development and are needed by the IMF and Bank for considering debt relief.
The members prepare PRSPs along with CDF approach with the involvement of their
domestic stakeholders, IMF and the Bank.