Question

Bring out the functions of the World Bank.

Answer 1

Functions of IBRD (or) World Bank:
The World Bank performs the major 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. Article 1 of the Agreement states the functions performed by the world bank as follows.

(1) Investment for productive purposes:
The World Bank performs the function of assisting in the reconstruction and development of territories of member nations through the facility of investment for productive purposes. It also encourages the development of productive facilities and resources in less developed countries.

(2) Balanced growth of international trade:
Promoting the long-range balanced growth of trade at the international level and maintaining equilibrium in BOPs of member nations by encouraging international investment.

(3) Provision of loans and guarantees:
Arranging the loans or providing guarantees on loans by various other channels so as to execute important projects.

(4) Promotion of foreign private investment:
The promotion of private foreign investment by means of guarantees on loans and other investments made by private investors. The Bank supplements private investment by providing finance for productive purposes out of its own resources or from borrowed funds.

(5) Technical services:
The World Bank facilitates different kinds of technical services to the member countries through Staff College and experts.