Functions of World Bank.The International Bank for Reconstruction and Development (IBRD) or the World Bank was established in 1944 under the Bretton Woods Agreement to assist in bringing about a smooth transition from wartime to peacetime economy. It is a sister institution of the International Monetary Fund.
Functions of World Bank You Must Know.
The basic objective of the establishment of IBRD was to provide international capital to finance the process of reconstruction of cities that had turned to ruins due to destruction of war. Besides this the provision of finance and capital to create more production facilities and to improve living standard in underdeveloped areas were some other objectives of IBRD.
WORLD BANK GROUP:
IBRD performs its functions with the assistance of International Development Association (IDA), International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). So IBRD, the IFC and MIGA are called as World Bank Group.
MEMBERSHIP:
At the time of its establishment, members of IBRD were 28 countries but now more than 189 countries are its regular members.
CAPITAL:
The IBRD started with an authorized capital of 10 billion dollars divided into 100,000 shares of $100,000.
MANAGEMENT:
All powers of IBRD are vested to the Board of Director, which consists of a President and 25 Executive Directors of which 5 are appointed by US, UK, Germany, France and Japan and remaining 20 Executive Directors are elected by member countries. President elected by Executive Directors is responsible for over all conduct of business of IBRD.
FUNCTIONS:
The IBRD performs the following functions:
- It assists in the reconstructions and development of territories of its members by facilitating the invctment of capital for productive purposes.
- It promotes private foreign investment by means of guarantees or participations in Ioans and other investment made by private investors.
- It promotes the long-range balanced growth of international trade and the maintenance of equilibrium in the balance of payments of member countries by encouraging international investment for the development of their productive resources.
- It also arranges the loans made or guaranteed by it in relations to international loans through other channels.
Final Recommendation;Functions of World Bank
The World Bank is an international financial institution that provides loans, technical assistance, and other forms of support to countries around the world. Its main functions are:
- Financing: The World Bank provides financial assistance to developing countries in the form of loans, grants, and guarantees. The bank raises funds from capital markets and member countries to lend to developing countries for various purposes, including infrastructure development, poverty reduction, and economic growth.
- Policy Advice: The World Bank provides policy advice and technical assistance to countries to help them address economic and social development challenges. The bank’s experts work closely with policymakers in member countries to identify and address key development issues, such as poverty reduction, education, health, and climate change.
- Knowledge Sharing: The World Bank generates and disseminates knowledge and best practices on development issues. The bank conducts research, collects data, and shares knowledge with policymakers, development practitioners, and other stakeholders around the world. The bank also provides training and capacity building to help countries improve their policymaking and implementation.
- Monitoring and Evaluation: The World Bank monitors and evaluates the impact of its programs and projects to ensure they are achieving their intended goals. The bank assesses the effectiveness of its interventions and provides feedback to policymakers and stakeholders to help them improve their development efforts.
- Advocacy and Partnerships: The World Bank advocates for policies and programs that promote sustainable development and poverty reduction. The bank works with governments, civil society organizations, and other partners to mobilize resources and build coalitions to address global development challenges, such as climate change, pandemics, and economic inequality.
