University of Dhaka

Faculty of Business Studies

Department of Marketing
EMBA Program

International Economics
Sec: B
Economics is a social science concerned with the production, distribution, and
consumption of goods and services. It studies how individuals, businesses,
governments, and nations make choices about how to allocate resources

Q. Explain functions of World Bank.

Answer: The World Bank is internationally recognized and supported that provides technical and
financial assistance to many developing countries in the world. Also, it aids their advancement, in an
economy with a primary goal of reducing poverty. World Bank has the largest knowledge of developing
countries. Also, they are the largest source when it comes to funding.

Functions of the World Bank

1. World Bank helps the war devastated countries by granting them loans for reconstruction.

2. It provide extensive experience and the financial resources of the bank help the poor
countries increase their economic growth, reducing poverty and a better standard of living.

3. It also helps the underdeveloped countries by granting development loans.

4. So, it also provides loans to various governments for irrigation, agriculture, water supply,
health, education, etc.

5. It promotes foreign investments to other organizations by guaranteeing the loans.

6. Also, the World Bank provides economic, monetary, and technical advice to the member
countries for any of their projects.

7. Thus, it encourages the development of of-industries in underdeveloped countries by

introducing the various economic reforms.

8. It also provides loans to private investors belonging to the members on its own guarantee,
but private investors need to take permission of its native country.

9. It strengthens the ability of the governments to deliver quality services, efficiently and
transparently.

10. It focuses on social development, inclusion, governance, and institution building as key
elements of poverty reduction.

The World Bank predominantly acts as an organization that attempts to fight poverty by offering
developmental assistance to middle and low-income countries. Its goal is to end extreme poverty and
grow income for the poorest people on the planet. The bank does this by lending money and giving
grants to governments and private corporations in some of the least developed places on the planet.