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Sample Essay on the Objectives of the World Bank

by Essays Experts / Monday, 14 September 2015 / Published in Writing Help

Objectives of the World Bank

The World Bank also called the International Bank for Reconstruction and Development is a global financial institution that offers financial assistance to member countries while supplementing and promoting private foreign investment as well as promoting a long-range balance in the growth of the international trade. It was established in 1945 and opened officially in 1946.

The World Bank played a significant role in the reconstruction of countries that had been destroyed by the Second World War. Since the 1960s, the focus of the World Bank has shifted from the industrialized countries to the development of the third-world countries.  It has done this by providing long-term investment loans with reasonable terms to these countries and private investors.

Among the objectives of the World Bank include the following:

  • To help in the development and reconstruction of the territories of its member countries by facilitating capital investment through productive means such as economic restoration of countries disrupted or destroyed by war. It also does this through reconversion of the productive facilities for peaceful needs and encouraging establishment of productive resources and facilities in the developing countries.
  • To promote investors through participation or guarantee in loans as well as other investments that private investors make.
  • Supplementing private investments through provision of sustainable finance conditions when there is no Proofreading-Editingsufficient private capital on reasonable terms for productive purposes. It does this by providing its own capital fund.
  • To promote a long range balanced development and growth of the international trade as well as maintaining equilibrium in the balance of payments. It does this by encouraging international investors to develop productive resources in member countries, thereby helping in enhancing productivity, living standards, and labor standards within their territories.
  • To arrange for loans made and/or guaranteed in regards to the international loans via other channels to ensure that more urgent and useful projects, small and large alike are handled first.
  • To execute its operations while considering the effects that international investment has on the business conditions of the member countries and also the immediate post-war period. The World Bank also aims at ensuring a smooth transition from the war period to the peacetime duration and fostering economic prosperity of the world.

In trying to accomplish these objectives, the World Bank provides technical support to its member countries. For this reason, it has formed The Economic Development Institute. Member countries can also get loans from this bank of up to 20 percent of the share of the paid-up capital. The World Bank determines the conditions, terms and interest rates of the loans that it gives its member countries.

Generally, the World Bank gives loans to members for specific and dully submitted projects. The debtor country repays the loan in the currency via which it borrowed it or reserve currencies. Before borrowing loans from the World Bank, private investors are required to seek permission from the countries where they will collect the money.

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The World Bank has helped many countries to achieve financial stability and improve the living standards of their people. Order an essay on the objectives of the World Bank at Essays Experts now and our veteran essay experts will write it for you.

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