THE WORLD BANK

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The World Bank Group, among the worlds largest development institutions, is a major source of financial and technical assistance to developing countries around the world.

The World Bank Group advances ideas about international projects on trade, finance, health, poverty, education, infrastructure, governance, climate change, and more to benefit the poor seeking new opportunities.
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The World Bank (IBRD and IDA), IFC, and MIGA work together and complement each others activities to achieve their shared goals of reducing poverty and improving lives.

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The global trade mechanism was severely affected due to Iind world war. Countries like Germany,France,U.K.,Japan & other were the worst victims of the war. At the same time the war shattered economies felt a stong need for reconstruction of their country. The participant countries who were there in the making of world bank thoght that IMF cannot achieve these objectives.

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FUNCTIONS
To

assist the reconstruction & development of terrotries of its member countries by facilitating the capital investment of capital for productive purpose. To promote private foreign investment To promote the long range of international trade To arrange the loans n guarantees

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Loans.
Power

sector Transport sector Agriculture Fishing industrial sector Technical assistance Population control,tourism,urbanisation

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Memberships
Any

country can join as a memberof IBRD OR WORLD BANK by signing in the charter of the bank as its subscriber.Bank can suspend any member,if any country concerned fails to discharge its responsibilties to the IBRD.The members of IMF are also the member of the world bank.

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Organization structure

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Funding objectives of the bank.

To

make sure of the availability of the funds in the market To provide funds to the borrowers at the possible lowest cost through manipulating the currency mix & opting the time when the interest rate is low in the market To control volatality in net income and overall charges of the loan] To provide an appropriate degree of maturity transformation b/w borrowings and lending
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Bank borrowings.
It

borrows in the international capital market It also borrows on currency swap agreements It borrows under the discount net programme

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Banks lending activities.

Granting loans from its own funds Granting loans from the funds borrowed by the bank in the market of the member countries. Guranteeing the loans raised by the member countries from various other sources

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Conditions for granting loans..

If

the borrower is unable to raise a loan under reasonable circumstances. If the loan is for reconstruction and/or development. When the member country or its central bank guarantees the repayment of the loan raised by a company or a local government of a member country. If a competent committee recommends a loan in the form of a written project report. In addition to providing direct loans, indirect loans and guaranteeing the loans, IBRD 4/24/12 provides the following facilities to its

Special action programme.

Provide

lending for structural adjustment, policy changes, export-oriented production, full utilisation of existing capacity and maintenance of critical infrastructure. Provide finance for timely implementation of high priority projects. Provide advisory services.

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Technical and advisory assistance:

Assessing

the economic resources of the members and set up priorities to be followed in developmental programmes. Sending survey missions to member countries to conduct intensive studies of national resources with a view to formulate policies for long-term development of the country.

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Economic development institute:

The bank has established the economic development in order to provide training to the senior officials of the less developed countries. Having studied IMF and IBRD, now we study the affiliates of IBRD. The World Bank has three affiliates, viz, International Development Association, International Finance Corporation and Multilateral Investment Guarantee Agency.

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