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World Bank
1. World Bank or International Bank for Reconstruction and Development is a multinational institution set up in 1947 to provide economic aid to member countries – mainly developing countries – to strengthen their economics. The Bank has supported a wide range of long-term investments including infrastructure projects such as roads, telecommunications and electricity supply; agriculture and industrial projects including the establishment of new industries, as well as social, training and educational programmes.
2. The Bank's funds come largely from the developed countries, but it also raises money on international capital markets. The Bank operates according to 'business principles' lending at commercial rates of interest only to those governments it feels are capable of servicing and repaying their debts.
3. In 1960, however, it established an affiliate agency, the International Development Association, to provide low-interest loans to its poorer members. Another affiliate of the World Bank is the International Finance Corporationwhich can invest directly in companies by acquiring shares.
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World Bank’s funds come from …
home markets
the developing countries
the developed countries
international markets
