[<–2/”>a >su_heading]World Bank[/su_heading]
The International Bank for Reconstruction and Development (IBRD), commonly referred to as the World Bank, is an international financial institution whose purposes include assisting the development of its member nation’s territories, promoting and supplementing private foreign Investment and promoting long-range balance Growth in international trade.
International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD)” width=”226″ height=”223″ />
The World Bank was established in December 1945 at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. It opened for business in June 1946 and helped in the reconstruction of nations devastated by World War II. Since 1960s the World Bank has shifted its focus from the advanced industrialized nations to developing third-world countries.
Organization and Structure:
The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the president and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank.
Capital Resources of World Bank:
The initial authorized capital of the World Bank was $ 10,000 million, which was divided in 1 lakh Shares of $ 1 lakh each. The authorized capital of the Bank has been increased from time to time with the approval of member countries.Member countries repay the share amount to the World Bank in the following ways:
- 2% of allotted share 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 the World Bank.
Objectives:
The following objectives are assigned by the World Bank:
- To provide long-run capital to member countries for economic reconstruction and development.
- To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium and balanced development of international trade.
- To provide guarantee for loans granted to small and large units and other projects of member countries.
- To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy.
- To promote capital investment in member countries by the following ways;
(a) To provide guarantee on private loans or capital investment.
(b) If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.
Functions:
World Bank is playing main role of providing loans for development works to member countries, especially to underdeveloped countries. The World Bank provides long-term loans for various development projects of 5 to 20 years duration.
The main functions can be explained with the help of the following points:
- World Bank provides various technical Services to the member countries. For this purpose, the Bank has established “The Economic Development Institute” and a Staff College in Washington.
- Bank can grant loans to a member country up to 20% of its share in the paid-up capital.
- The quantities of loans, interest rate and terms and conditions are determined by the Bank itself.
- Generally, Bank grants loans for a particular project duly submitted to the Bank by the member country.
- The debtor nation has to repay either in reserve currencies or in the currency in which the loan was sanctioned.
- Bank also provides loan to private investors belonging to member countries on its own guarantee, but for this loan private investors have to seek prior permission from those counties where this amount will be collected.
[su_heading]International Monetary Fund(IMF)[/su_heading]
The major roles of the International Monetary Fund are as follows:
- To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.
- To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of EMPLOYMENT and real income and to the development of the productive resources of all members as primary objectives of economic policy.
- To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.
- To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of Foreign Exchange restrictions which hamper the growth of world trade.
- To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.
- In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.“Articles of Agreement: ARTICLE I—Purposes,” International Monetary Fund
[su_heading]Asian Development Bank (ADB)[/su_heading]
The Asian Development Bank was established in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.
Head Quarters of Asian Development Bank is in Philippines capital of Manila.
The Asian Development Bank aims for an Asia and Pacific free from POVERTY. Its mission is to help developing member countries reduce poverty and improve the Quality Of Life of their people.
ADB in PARTNERSHIP with member governments, independent specialists and other financial institutions is focused on delivering projects in developing member countries that create economic and development impact.
As a multilateral development finance institution, ADB provides:
- loans
- technical assistance
- grants
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The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) are two of the world’s most important financial institutions. The IMF was founded in 1944 to help countries manage their economies and promote international trade. The IBRD was founded in the same year to help countries rebuild after World War II.
The IMF and the IBRD are both headquartered in Washington, D.C. The IMF has 189 member countries, while the IBRD has 189 member countries. The IMF’s main function is to provide loans to countries that are experiencing economic difficulties. The IBRD’s main function is to provide loans to countries that are developing their economies.
The IMF and the IBRD are both financed by their member countries. The IMF’s resources come from quotas that are set by each member country. The IBRD’s resources come from loans from member countries and from the sale of its own Bonds.
The IMF and the IBRD both use conditionality when they make loans. Conditionality means that the IMF or the IBRD will only make a loan if the country agrees to certain Economic Reforms. These reforms are designed to help the country get its economy back on track.
The IMF and the IBRD have been criticized for their role in the global economy. Some people argue that the IMF and the IBRD have too much power and that they often impose policies that are not in the best interests of the countries they are lending to. Others argue that the IMF and the IBRD are not doing enough to help poor countries.
Despite the criticism, the IMF and the IBRD remain two of the most important financial institutions in the world. They play a vital role in helping countries manage their economies and promote international trade.
International Monetary Fund (IMF)
The International Monetary Fund (IMF) is an international financial institution that was founded in 1944 to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. The IMF’s primary purpose is to ensure the stability of the International Monetary Systemâthe system of exchange rates and international payments that enables countries to trade with each other. The IMF does this by providing loans to countries that are experiencing economic difficulties, by helping countries to manage their economies, and by providing technical assistance to countries.
The IMF is governed by a Board of Governors, which is made up of representatives from each member country. The Board of Governors meets once a year, and its decisions are made by a majority vote. The day-to-day operations of the IMF are carried out by the Executive Board, which is made up of 24 directors. The Executive Board is responsible for approving loans to member countries, for setting the IMF’s policies, and for overseeing the IMF’s activities.
The IMF’s resources come from quotas that are set by each member country. The quotas are based on each country’s economic size and its ability to contribute to the IMF. The IMF can also borrow Money from member countries and from the private sector.
The IMF provides loans to member countries that are experiencing economic difficulties. The loans are designed to help countries to stabilize their economies and to make the necessary reforms to get their economies back on track. The IMF also provides technical assistance to member countries, such as advice on economic policy and on financial management.
The IMF has been criticized for its role in the global economy. Some people argue that the IMF has too much power and that it often imposes policies that are not in the best interests of the countries it is lending to. Others argue that the IMF is not doing enough to help poor countries.
Despite the criticism, the IMF remains one of the most important financial institutions in the world. It plays a vital role in helping countries to manage their economies and to promote international trade.
International Bank for Reconstruction and Development (IBRD)
The International Bank for Reconstruction and Development (IBRD) is a member of the World Bank Group. It was founded in 1944 to help countries rebuild after World War II. The IBRD’s main function is to provide loans to developing countries.
The IBRD is headquartered in Washington, D.C. It has 189 member countries. The IBRD’s resources come from loans from member countries and from the sale of its own bonds.
The IBRD uses conditionality when it makes loans. Conditionality means that the IBRD will only make a loan if the country agrees to certain economic reforms. These reforms are designed to help the country get its economy back on track.
The IBRD has been criticized for its role in the global economy. Some people argue that the IBRD has too much power and that it often imposes policies that are not in the best interests of the countries it is lending to. Others argue that the IBRD is not doing enough to help poor countries.
Despite the criticism, the IBRD remains
What is the World Bank?
The World Bank is an international financial institution that provides loans to developing countries for capital programs. It is a vital source of financial and technical assistance to developing countries around the world. The World Bank Group comprises two development institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD provides loans to middle-income and creditworthy low-income countries, while IDA provides grants and low- or no-interest loans to the poorest countries.
What are the World Bank’s goals?
The World Bank’s goals are to fight poverty and improve living standards for people in the developing world. It does this by providing loans, grants, and technical assistance to governments and private sector organizations. The World Bank also works to promote Good Governance, economic development, and environmental sustainability.
How does the World Bank work?
The World Bank Group is made up of five institutions: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).
The IBRD and IDA are the two largest institutions in the World Bank Group. The IBRD provides loans to middle-income and creditworthy low-income countries, while IDA provides grants and low- or no-interest loans to the poorest countries. The IFC is a private sector development institution that provides loans and Equity investments to private sector companies in developing countries. MIGA provides political risk insurance to investors in developing countries. ICSID provides a forum for resolving investment disputes between foreign investors and host governments.
The World Bank Group is funded by contributions from its member countries. The United States is the largest shareholder in the World Bank, followed by Japan, Germany, the United Kingdom, and France.
What are the World Bank’s criticisms?
The World Bank has been criticized for its role in promoting structural adjustment programs, which have been blamed for economic hardship in developing countries. The World Bank has also been criticized for its lending practices, which have been accused of being too focused on short-term economic growth and not enough on long-term development.
What are the World Bank’s achievements?
The World Bank has helped to reduce poverty in developing countries by providing loans and grants for development projects. The World Bank has also helped to promote economic growth in developing countries by providing technical assistance and policy advice.
What are the World Bank’s future challenges?
The World Bank faces a number of challenges in the future, including the need to adapt to the changing global economy, the need to address the challenges of Climate change, and the need to improve its effectiveness in reducing poverty and promoting development.
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Which of the following is not a function of the World Bank?
(A) To provide loans to developing countries
(B) To promote economic development
(C) To provide technical assistance to developing countries
(D) To manage the global economy -
The World Bank Group is made up of five institutions. Which of the following is not one of those institutions?
(A) The International Monetary Fund (IMF)
(B) The International Bank for Reconstruction and Development (IBRD)
(C) The International Development Association (IDA)
(D) The International Finance Corporation (IFC) -
The World Bank Group’s mission is to fight poverty and improve living standards for people in the developing world. How does the World Bank Group do this?
(A) By providing loans to developing countries
(B) By providing technical assistance to developing countries
(C) By investing in private sector development in developing countries
(D) All of the above -
The World Bank Group’s loans are made to governments of developing countries. What are these loans used for?
(A) To finance Infrastructure-2/”>INFRASTRUCTURE projects
(B) To finance social programs
(C) To finance economic reforms
(D) All of the above -
The World Bank Group’s technical assistance is provided to governments and private sector organizations in developing countries. What types of technical assistance does the World Bank Group provide?
(A) Economic policy advice
(B) Financial management advice
(C) Public sector management advice
(D) All of the above -
The World Bank Group’s investments in private sector development in developing countries are made through the International Finance Corporation (IFC). What types of investments does the IFC make?
(A) Equity investments
(B) Debt investments
(C) Guarantees
(D) All of the above -
The World Bank Group is headquartered in Washington, D.C. How many employees does the World Bank Group have?
(A) About 10,000
(B) About 15,000
(C) About 20,000
(D) About 25,000 -
The World Bank Group’s president is appointed by the Board of Governors of the World Bank Group. Who is the current president of the World Bank Group?
(A) David Malpass
(B) Kristalina Georgieva
(C) Jim Yong Kim
(D) Robert Zoellick -
The World Bank Group’s budget for fiscal year 2023 is $23 billion. How much of this budget is for lending?
(A) About $15 billion
(B) About $18 billion
(C) About $20 billion
(D) About $22 billion -
The World Bank Group’s lending portfolio is about $1.8 trillion. What are the top five sectors that the World Bank Group lends to?
(A) Infrastructure
(B) Social sectors
(C) Economic management
(D) Private sector development
Answers:
1. (D)
2. (A)
3. (D)
4. (D)
5. (D)
6. (D)
7. (A)
8. (A)
9. (A)
10. (A, B, C, D)