What are objectives of IBRD?

Answer 1

OBJECTIVES OF I.B.R.D

The objectives of I.B.R.D as incorporated in the Articles of Agreement are as follows.

1. To help in the reconstruction and development of member countries by facilitating the investment of capital for the productive purposes, including the restoration and reconstruction of economies devastated by war.

2. To encourage the development of productive resources in developing countries by supplying them investment capital.

3. To promote private foreign investment through guarantees and participation in loans and other investment made by private investors.

4. To supplement private foreign investments by direct loans out of its own capital for productive purposes.

5. To promote long term balances growth of international trade and the maintenance of equilibrium in the balance payments of member countries by encouraging long term international investments.

6. To bring about an easy transition from a war economy to a peace time economy.

7. To help in raising productivity, the standard of living and the conditions of labour in member countries.

The World Bank advances loans to member countries primarily to help them lay down the foundation of sound economic growth. The loans made by the Bank either directly or through guarantees are intended for certain specific projects of reconstruction and development in the member countries.