Achievements of IBRD
IBRD is the Previous version of the present World Bank. IBRD full form is International Banks for Reconstruction and Development and it is the largest source of funding for developing countries globally.
In Bretton Woods Conference, July 22 1944, the term world bank was used in an economist article.
The object of the world bank is through its five institutions to reduce poverty, increase economic growth and quality of life in poor countries.
The five institutions of World Banks are:
- International Bank for Reconstruction and Development
- International Development Association
- International Finance Corporation
- Multilateral Investment Guarantee Agency
- International Centre for Settlement of Investment Disputes
The world bank is operated by its member countries who are either lenders, borrowers, or donors.
Many developing countries use the World Bank’s help such as loans and grants, technical assistance, and policy advice.
The Banks work with various agencies such as Government agencies, civil society organizations, and other private sectors.
Recently the world bank changed some of its policies based on the current economic context. Some of the Achievements of IBRD with respect to the world bank are as follows.
Amendments in the Lending Model
By updating financial services and lending design, the world bank provides more custom responses to borrower’s needs.
For high-risk investments, need closer and improved supervision to get good results and for streamlined processes.
Increasing Voice and Participation
By increasing the voting power of developing countries and increasing seats in the Board of directors for Sub-Saharan African countries, the world bank improves the representation and influence of developing nations in the bank group.
Improving Accountability and Good Governance
The most challenging task of the World Bank is to deal with Governance and corruption across sectors and countries.
This is for reducing poverty because the only capable and accountable states will create opportunities for everyone to develop themselves.
Increasing Transparency, Accountability and Access to Information
The world shares its information and experiences with a wide audience to increase the quality of operations about projects and programs ever before.
Modernizing the World bank
Since the bank stated in 1946, there were only 38 members, after the colony countries became independent and joined the World Bank and now the member has increased.
In order to make the bank a better series of reforms are taken, such modernizing its products and services, serve better to reduce poverty, improving the information sharing from within and outside the organization.
To provide better service five institutes were made part of the World Bank.
1.International Bank for Reconstruction and Development (IBRD)
It is established in 1945 and currently has 184 members.
The main aim of IBRD is to reduce the poverty of middle-income nations and creditworthy low-income nations by improving Sustainable Development by giving Loans, guarantees, and advisory services.
In the fiscal year of June 2018, IBRD’s net income and allocable income were $698 Billion.
Achievements of Ibrd includes providing financial services as well as strategic coordination and information services to its member countries that borrow from it.
It also provides financial risk management products such as foreign exchange swaps, currency conversion, interest rate swaps, commodity swaps, interest rate caps and floors.
It also provides protection to its borrowers against catastrophes and other special risk. It is providing finance after a natural disaster or declared state of emergency. It issues catastrophe bonds which transfers catastrophic risk from borrowers to investors.
The other four members of world bank that helps in the Achievements of Ibrd are IDA, IFC, MIGA, ICSID.
2.International Development Association (IDA)
It is established in 1960.
Internation Development Association provides support to the poorest nations by giving interest-free credits/loans and grants given by its member nations.
In the fiscal year of June 2018, its total finance was about $24 Billion.
3.International Finance Corporation(IFC)
It is started in 1956 with 176 members.
Internation Finance Corporation helps economic development in developing countries by giving loans to the private sector.
Its investment in 2018 is $23.3 Billion.
4.Multilateral Investment Guarantee Agency(MIGA)
It was established in 1988 with 164 members.
It encourages private companies to start a business in developing nations by giving a guarantee against a breach of contract, conflict, war, and currency inconvertibility.
Its business in 2018 was $5.3 billion.
5.International Centre for Settlement of Investment Disputes(ICSID)
It is established in 1966 with 140 members.
It encourages foreign investment in developing nations by giving facilities for arbitration (நடுவர்) of investment disputes.