NABARD Prelims 2018 results are out! Check the results here. Now, time to gear up for the NABARD Mains exam. Economic and Social Issues is one of the important paper in NABARD Mains and World Bank and IMF are important topics from that paper. For your assistance, we bring to you, important facts about the World Bank in this post that will help in your NABARD Mains Preparation.
The World Bank is an international financial institution that provides loans to countries of the world for their economic and human development.
- Formed in 1944.
- Headquarters: Washington DC
- Membership: 189 countries (IBRD)
- It comprises two institutions:
- The International Bank for Reconstruction and Development (IBRD)
- The International Development Association (IDA).
- Motto: Working for a World Free of Poverty.
- President: Jim Yong Kim
- The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).
- First President: Eugene Meyer
Many European countries got loans and financial assistance in accordance with Marshall Plan. The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative to aid Western Europe in which the United States gave over $13 billion in economic assistance to help rebuild Western European economies after the end of World War II. The plan was in operation for four years beginning on April 8, 1948. The goals of the United States were to rebuild war-torn regions, remove trade barriers, modernise industry, make Europe prosperous once more, and prevent the spread of Communism. Named after George C. Marshall. (US Secy of State)
World Bank Group
World Bank is a part of bigger parent organization World Bank Group. It consists of 5 organizations:
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation(IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
International Bank for Reconstruction and Development (IBRD)
- An international financial institution that offers loans to middle-income developing countries.
- The IBRD is the first of five-member institutions that compose the World Bank Group and is headquartered in Washington, D.C., United States.
- It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II.
International Development Association (IDA)
- The part of the World Bank that helps the world’s poorest countries.
- 173 shareholder nations. Established in 1960.
- IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
- IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 40 years, including a 5- to 10-year grace period.
- IDA also provides grants to countries at risk of debt distress.
International Finance Corporation (IFC)
- An international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries.
- The IFC is a member of the World Bank Group and is headquartered in Washington, D.C.
- It was established in 1956, as the private-sector arm of the World Bank Group, to advance economic development by investing in for-profit and commercial projects for poverty reduction and promoting development.
Multilateral Investment Guarantee Agency (MIGA)
- (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees.
- These guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries.
- MIGA is a member of the World Bank Group and is headquartered in Washington, D.C., United States.
- MIGA was established in 1988 as an investment insurance facility to encourage confident investment in developing countries.
- MIGA offers insurance to cover five types of non-commercial risks: currency inconvertibility and transfer restriction; government expropriation; war, terrorism, and civil disturbance; breaches of contract; and the non-honoring of financial obligations.
International Centre for Settlement of Investment Disputes (ICSID)
- An international arbitration institution established in 1965 for legal dispute resolution and conciliation between international investors.
- The ICSID is part of and funded by the World Bank Group, headquartered in Washington, D.C., in the United States.
- It is an autonomous, multilateral specialized institution to encourage international flow of investment and mitigate non-commercial risks.
- As of May 2016, 153 contracting member states agreed to enforce and uphold arbitral awards in accordance with the ICSID Convention.
Hope this helps!
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