Important Points to know about World Bank

    Important Points to know about World Bank
    Important Points to know about World Bank:
    Important points that we have to know about the World Bank were given here, which will be more helpful for the candidates those who are preparing for the upcoming exams.

    WORLD BANK
    1). TheWorld Bank is an international financial institution that provides loans to developing countries for capital programs

    2). It comprises of 2-institutions
    ·        International Bank for Reconstruction and Development (IBRD)– 188 countries
    ·        International Development Association (IDA) – 172 countries

    3). The World Bank’s official goal is thereduction of poverty

    4). It was established in1944

    5). Headquarters –Washington DC, United States

    6). Founders –Lord Keynes andHarry Dexter White – Fathers of both theWorld Bankand theInternational Monetary Fund

    7). Parent Organization –World Bank Group (WBG)

    8). President – same as thePresident of WBG – presentlyJim Yong Kim

    9). Objectives of World Bank
    ·        To provide guarantee for loans granted to small and large units and other projects of member countries
    ·        To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy

    10). It has 2-types of members:
    a.  Founder members
    b.  General members

    11). Indiais a founder member

    12). Voting right of every member is based on the member country’s share in the total capital of the Bank

    13). Every member of theIMF is automatically a member of World Bank

    14). Any member can be debarred from World Bank under the following conditions
    ·        By written notice to the bank, but such country has to repay the granted loans on terms and conditions decided at the time of sanctioning the loan
    ·        Any country working against the guidelines of Bank can be debarred by the Board of Governors

    15). Top 5-member countries with voting powers are as follows:
    ·        United States –15.85%
    ·        Japan– 6.84%
    ·        China –4.42%
    ·        Germany –4%
    ·        United Kingdom –3.75%

    16). The initial authorized capital of the World Bank was10,000 million which was divided into1lakh shares each

    17). The authorized capital of the Bank has been increased from time to time with the approval of the member countries. The member countries repay the share amount to the World Bank in the following ways:
    ·        2%allotted share are repaid in gold, US dollar or SDR
    ·        18%of the country’s capital share in its own currency
    ·        Remaining80% share is deposited by the member country on the demand of World Bank

    18). World Bank can grant loans up to20% of the member country’s share paid up as capital

    19). World Bank takes guidance of the following international institutions
    ·        FAO
    ·        WHO
    ·        UNESCO
    ·        UNIDO

    20). 75%of its total loans are sanctioned to developing countries while25% to developed countries

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