International Organisation<br />World Bank<br />
The world Bank was established in the year 1945 to give loans to more advanced stages of economic & social growth of developing countries. The World Bank finances to all kinds infrastructure development such as roads, railways, communication, ports, power & energy, oil & gas.<br />World Bank<br />
IBRD- Industrial Bank for Reconstruction & Development.<br />IDA-International Development Association.<br />IFC- International Finance Corporation.<br />MIGA-Multilateral Investment Guarantee Agency.<br />ICSID-International Centre for Settlement of Disputes.<br />
Capital subscribed by member countries.<br />Retained earnings.<br />Generate funds from capital market (own borrowings).<br />Bank loan (repayable within 20 yrs).<br />Interest calculated on cost of borrowings.<br />Resource<br />
Powers vested on Board of Governors.<br />Bank Governors delegated powers to Board of Executive Directors of HQ.<br />21 Executive Directors.<br />5 Largest shareholders directors(US, Japan, Germany, France, UK)<br />Rest are elected by Governors representing other member country. <br />Meet once in a year.<br />Serve a 5 year term. <br />Organisation<br />
To assist in the reconstruction & development of territories by investing capital.<br />To restore & reconvert the economies of the member countries destroyed by war.<br />To encourage the development of productive facilities.<br />To promote private foreign investment.<br />To promote the long-range balance growth. <br />Finance for productive purposes.<br />To encourage international investments.<br />OBJECTIVE:<br />
Structure Adjustment Lending (SAL)<br /><ul><li>SAL is designed to achieve a more efficient use of resources
Contribute to a more sustainable BOP in the maintenance of growth in the face of severe constraints.
This program lays more importance on future growth.</li></ul>Financing Policies:<br />
Special Action Program (SAP):<br /><ul><li>Help countries implement adjustment measures & highly priority projects.
Successful in meeting its objectives.</li></ul>Contd..<br />
Assess the repayment prospects.<br />Lend only for specific projects.<br />Help to enable to meet the foreign exchange<br />Encourages to procure machinery at cheapest possible market consistent with satisfactory performance.<br />To maintain continuing relations with borrowers.<br />Indirectly attaches special importance for local private enterprise.<br />Bank’s AOA guided by certain policies:<br />
Total 24 loans given to India totaling $662 million by July 2010,<br />Recently sanctioned $70 million on 29th July 2010, for the improvement & expansion of Indian railways,<br />@ 5.75% interest rate<br /> tenure of repayment is 20 years<br />1% along with interest as special reserve.<br />World Bank & India <br />
Largest beneficiaries until China become a member in 1980.<br />Assistance to India 5% of the total bank assistance.<br />India’s share in the Bank Global credit declined over the years.<br />China’s entry seriously affected the fund flow to India.<br />Needs substantial increase in concessional finance for poverty alleviation & eco. Dev.<br />Conclusion:<br />
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