The objectives and functions of IBRD
Objectives of IBRD
The objectives of the bank as have been laid-down in the articles of agreement are as follows:
1. To promote foreign investment through guarantees or participation in loans and other investments made by private investors, and when private capital is not available on reasonable terms, to supplement private investment by providing suitable conditions, finance for productive purposes on behalf of its own capital funds that are raised by it and its other resources.
2. To assist in the reconstruction and development of the member states, by providing capital investments for productive purposes, including the restoration of economies that are destroyed or disrupted by war, the re conversion of productive facilities to peace-time needs and to encourage the development of productive facilities and resources in Less- Developed Countries (LDCs).
3. To promote long-age balanced growth of international trade and the maintenance of equilibrium in the balance of payments, by encouraging the international investment of the productive resources of members so as to raise productivity, the standard of living and conditions of labour in the various countries of the world which need such help.
Following are the main functions served by IBRD for the proper conduct of international business:
1. To promote private foreign investment through guarantees or participation in loans and other investments made by private investors and when capital is not available on reasonable terms to supplements private investment by providing finance for productive purpose out of its own resources or from borrowed funds.
2. To arrange the loans made or guaranteed by it related to international loans through other channels so that more useful and urgent small and large projects are preferred.
3. To develop the economic infrastructure base through the development of power, transport, communications and irrigation sectors. 4. To help in the eablishment of the projects in backward areas, that will have the greatest inkage, with the neighbourhood, so that output employment and income may increase.
5. To assist in the development of social infrastructure by financing special programmes of development of education, health and training.
6. To assist in the reconstruction and development of territories of its member countries by facilitating the investment of capital for productive purposes and the development of productive facilities and resources in less developed countries.
7. To promote the long term balanced growth of international trade and maintenance of equilibrium in the balance of payments of member countries by encouraging international investment for the development of their productive resources thereby supporting in raising productivity, the standard of living and conditions of workers in their territories.
