The International Bank for Reconstruction and Development (IBRD)
The International Bank for Reconstruction and Development (IBRD) otherwise known as the World Bank was established in 1944 with its headquarters in Washington DC.
Aims and Objectives of International Bank for Reconstruction and Development
- To provide private foreign investment for economic development in less developed nations of the world.
- To provide loans for the reconstruction of ruined economies caused by the second world war or natural disasters such as floods, earthquakes, etc.
- To encourage infrastructural developments particularly in less developed countries.
Funds Sources of International Bank for Reconstruction and Development
- Members’ contributions.
- Borrowing from the International Money Market
Benefits of the International Bank for Reconstruction and Development (IBRD)
- It has provided long-term loans for many capital projects such as roads, provision of hydro-electricity, and the development of agriculture in different part of the world.
- Many countries enjoy technical and expert advice in the planning and execution of national development plans.
- It gave both human and financial assistance in the reconstruction of economy to many countries after civil war.
- It provides training facilities for some countries especially in the areas of economic development and other economic projects.
The IBRD and its affiliate, the International DeveIopment Agency (IDA) approved a total of $236 million in loans and assistance for Nigeria in 1992. Of this total, $110 million came from the IBRD itself and $126 million from the IDA. $135 million is for agriculture and rural development while the remaining $101 million is to go into water supply and sewage disposal.
How the World Bank can help Economic Development in a Developing country.
- By granting long-term loans on concessionary rates for infrastructural development.
- By making available to such a country the experience of other countries.
- By giving expert advice to it on development problems.
- By providing experts to solve its development problems.
- By providing training of experts for the country.
- By undertaking feasibility studies relating to economic development.