Q.6:- What is World Bank? Discuss its various objectives and role of its affiliated agencies.
The World Bank was established in 1944, the international Bank for Reconstruction and Development (IBRD), is the common name of World Bank, which was formed as a result of the Bretton Woods Conference. The main objectives behind setting up this international organization to aid the task of reconstruction of the war-affected economics of Europe and assist in the development of the underdeveloped nations of the words, Till late 1950s, the World Bank remained preoccupied with the task of restoring war-torn nations in Europe after which it turned its attention to the development of underdeveloped nations. Various objectives and roles of its affiliated agencies are given below International Development Association (IDA)
The main objectives of IDA are
(i) It provides finance on easy terms.
(ii) It provides help in poverty alleviation.
(iii) It provides help in economic development programmes.
(iv) Extend macroeconomic management services. The Multinational Investment Guarantee Agency (MIGA)
Major objectives of MIGA are
(i) To encourage flow of direct foreign investment into the less developed member countries.
(ii) To provide insurance cover to investors against political risks.
(iii) To provide guarantee against non-commercial risks (like dangers involved in currency transfer, war and civil disturbances and breach of contract).
(iv) To insure new investments, expansion of existing investments, privatization and financial restructuring.
(v) To provide promotional and advisory services.
(vi) To establish credibility. We can conclude that the World Bank is no longer confined to simply providing financial assistance for infrastructure development, agriculture, industry, health and sanitation and is involved in areas like removal of rural poverty through raising productivity, providing technical support, and initiating research and cooperative ventures.