World bank ibrd

all about world bank (IBRD)

1. WORLD BANK GROUP The world bank is one of the world ' s largest sources of funding for the developing world. It ' s primary focus is on the helping the poorest people and the poorest countries. It uses financial resources, it ' s staff and extensive experience to help developing countries, reduce poverty, increase economy growth and improve the quality of life.

2. HISTORY The world bank is one of the two Bretton Woods institutions which were created in 1944. The Bretton Woods Conference was held from the 1 st to 22 nd of July, 1944. It contained 730 delegates from all 44 allied nations. To regulate the international monetary and financial order after the conclusion of World War II.

3. Two major institutions were created: World Bank ( long term loan for distressed economy and member countries ) International Monetary Fund ( grants to short term loans to develop the cyclical disturbance in economy)

4. WORLD BANK GROUP Consist of five organization: The International B ank for Reconstruction and Development (IBRD) The International Development Association (IDA) The International Finance Corporation (IFC) The Multilateral Investment Guarantee Agency (MIGA) The International Centre for the Settlement of Investment Disputes (ICSID)

5. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT The International Bank for Reconstruction and Development is an international financial institution. It was established in 1944 and headquartered in Washington, D.C., United States. It is a global development cooperative owned by 189 member countries. It is the lending arm of World bank. It offers loans to middle-income developing countries. The IBRD is the first of the five member institution that compose the World bank Group.

6. IBRD The initial mission of the IBRD in 1944, was to finance the reconstruction of E uropean nations devastated by world war II. As the largest development bank of the world, it supports the World Bank groups mission by providing loans, guarantees, risk management product and advisory services to middle-income and creditworthy low income countries, as well as by coordinating responses to regional and global challenges.

7. objectives To help in the reconstruction and development of member countries by facilitating the investment of capital for production purposes, including the restoration and reconstruction of economies devastated by war. To encourage the development of productive resources in developing countries by supplying them investment capital. To promote private foreign investment through guarantees and participation in loans and other investment made by private investors.

8. objectives To supplement private foreign investment by direct loans out of its own capital for productive purpose. To promote long term balances growth of international trade and maintenance of equilibrium in balance of payment by encouraging long term international investment. To bring about an easy transition from a war economy to peace time economy. To help in raising productivity, the standard of living and the condition of labour in member countries.

9. functions It assists in reconstruction and development of its member countries. It promotes private foreign investment by means of guarantees of participation in loans and other investment made by private investors. To promote long term balances growth of international trade and maintenance of equilibrium in balance of payment by encouraging long term international investment . To arrange loans made guaranteed by it in relation to international loans through other channels so that more useful projects, large and small alike, will be dealt with first.

10. It creates a favorable investment climates to catalyze the provision of private capital. It facilitates access to financial markets often at more favorable terms than members can achieve on their own.

11. MEMBERSHIP ELIGIBILITY All countries which are the members of IMF are the members of World bank. A country holding the membership of the bank must subscribe to the charter of the bank. If a country resigns its membership, it is required to payback all loans granted to it through interest on due date. The members subscription also measures roughly its voting power, but again the smaller nations have a slightly higher rate.

12. Capital & organizational structure The IBRD was started with an authorized capital of $ 10 billion divided into 1,00,000 shares of $1,00,000 of this $9400 million was actually subscribed. The authorized capital of the bank has been increased from time to time with the approval of member countries. The organization of the bank consists of the president, Board of governors, Board of executive directors, the advisory and loan committee and other staff members.

13. Member countries repay the share amount to the bank in the following ways: 2% of allocated shares are repaid in gold, US dollar or Special Drawing Rights(SDR) Every member country is free to repay 18% of its capital share in its own currency The remaining 80% share deposited by the member country only on demand by bank.

14. activities Basic education and health services Safety needs Infrastructure development Environment protection Private sector development Governance and investment climate Technical assistance

15. Undertaken projects in india Uttarakhand Disaster Recovery Projects Rajasthan Road Sector Modernization Project National Highways Interconnectivity Improvement projects

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