WORLD BANK

Assignment # 2
System id 2020002058
INTERNATIONAL FINANCE AND FOREIGN EXCHANGE
MANAGEMENT

Submitted By:
Harsh Singhal

Submitted To:
Dr. Sunil Joshi

DEPARTMENT OF SCHOOL OF BUSINESS STUDIES

BANKING AND FINANCE
SHARDA UNIVERSITY
WORLD BANK
The World Bank is
an International financial
institution that provides loans
and grants to the governments
of low- and middle-income
countries for the purpose of
pursuing capital projects
 The World Bank is the
collective name for
the international bank for
reconstruction and development
(IBRD) and international
development association (IDA),
two of five international organizations owned by the World Bank Group
it focused on loans to developing world countries, shifting away from that
mission in the 1980s. For the last 30 years, it has included NGOs and
environmental groups in its loan portfolio. Its loan strategy is influenced by the
Millennium Development Goals as well as environmental and social safeguards.
As of 2022, The World Bank is run by a president and 25 executive directors, as
well as 29 various vice presidents. IBRD and IDA have 189 and 174 member
countries, respectively. The U.S., Japan, China, Germany and the U.K. have the
most voting power. The bank aims loans at developing countries to help reduce
poverty. 

HISTORY
The World Bank was created at the 1944 Bretton woods conference, along
with the international monetary funds (IMF). The president of the World Bank
is traditionally an American. The World Bank and the IMF are both based in
Washington, D.C., and work closely with each other.
Although many countries were represented at the Bretton Woods Conference,
the United States and United Kingdom were the most powerful in attendance
and dominated the negotiations.   The intention behind the founding of the
World Bank was to provide temporary loans to low-income countries that could
not obtain loans commercially. The Bank may also make loans and demand
policy reforms from recipients.
Functions of the World Bank
 It helps the war-devasted countries by granting them loans for reconstruction.
 Thus, they 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.
 Also, it helps the underdeveloped countries by granting development loans.
 So, it also provides loans to various governments for irrigation, agriculture,
water supply, health, education, etc.
 It promotes foreign investments to other organizations by guaranteeing the
loans.
 Also, the world bank provides economic, monetary, and technical advice to
the member countries for any of their projects.
 Thus, it encourages the development of of-industries in underdeveloped
countries by introducing the various economic reforms.

OBJECTIVES
 This includes providing long term capital to its member nations for economic
development and reconstruction. 
 Thus, it helps in inducing long term capital for improving the balance of
payments and thereby balancing international trade.
 Also, it helps by providing guarantees against loads granted to large and
small units and other projects for the member nations.
 So, it ensures that the development projects are implemented. Thus, it brings
a sense of transparency for a nation from war-time to a peaceful economy.
 Also, it promotes the capital investment for member nations by providing a
guarantee for capital investment and loans.
 So, if the capital investment is not available than it provides the guarantee
and then IBRD provides loans for promotional activities on specific
conditions.