Important Details you should know about World Bank / IBRD

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The World Bank is an International Financial Institution which offers loans to developing countries. It is made of two unique development institutions, the International Bank Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD is the first of five member institutions which compose the World Bank Group. In most of the times we use the terms IBRD and World Bank interchangeably because the IBRD and IDA shares same leadership and staff. Together the World Bank provides low-interest loans, lest free credits and grants for developing countries. The International Bank for Reconstruction and Development (IBRD) or World Bank came into existence in July 1944 at the Bretton Woods conference. It started functioning from June 1946.

President :

The Korean American physician and anthropologist Jim Yong Kim is the 12th and current president of World Bank. He assumed charges on 1st July 2012.

Objective

The objectives of the World Bank set forth in Bretton Woods agreements are as follows

1. To assist in reconstruction and development of the territories facilitating investment of capital for productive purposes.
2. To promote foreign private investment by means of guarantees or through participation in loans and other investments made by private investors.
3. To make arrangements for loans or guarantees in respect of international loans so that large and small useful projects are rendered assistance. 
4. To promote 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 the productive resources of members. 

Membership

The members of the IMF automatically become the members of the World Bank. As on 19th August 2014, the world bank has 188 members. South Sudan is the latest member (joined on 18th April 2012). If any country resigns from its membership of IMF, then it no longer remain a member of the world bank. 

Lending Operations of the World Bank

1. By granting or participating in direct loans, out of its own funds.
2. Making loans out of raised or borrowed funds.
3. Guaranteeing loans made by the private sector. 

While making loans the Bank ensures the following

1. The projects have been carefully examined by the experts and merits demonstrated.
2. The loans are for reconstruction or development. 
3. If the central bank of the member country gives full guarantee for repayment of the principal interest on loan and other related charges. 
4. The project for which the loan from the World Bank is being sought is recommended by a competent committee after a careful study in its written report.
5. The borrower is in a position to meet the Bank's obligations.

Normally the Bank makes medium and long term loans. The Bank, also provides technical assistance to its members through its various survey missions such as Project Preparation Facilities (PPF), Economic Development Institute (EDI) etc.

Fast Facts of World Bank

• Head Quarters : Washington
• Established on : 1944
• President : Jim Yong Kim
• Member Countries : 189 Countries 
• New Member :  Nauru on 12th April 2016

That's all for now friends. In our next post we shall discuss about the World Bank's Special Action Programme followed by the India's relationship with World Bank. Happy Reading :)

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