What is World Bank? Objectives of World Bank

The World Bank, was established in 1945 under Bretton Woods Agreement of 1944 to tackle the problem of international investment. The Headquarter of World Bank is at Washington D.C. Since the IMF was designed to provide temporary assistance in correcting balance of payments difficulties and institutions was also needed to assist long-term investment purpose. Thus, IBRD was established for promoting long-term investment loans on reasonable terms.

It is an inter-governmental institution, corporate in form, the capital stock of which is entirely owned by its member-governments. Initially, only nations that were members of the IMF could be members of the World Bank; this restriction on membership was subsequently relaxed. World Bank makes loans to countries to enhance economic development. It maintains profit oriented objectives. It engages in co-financing agreements to extend economic impact.

World bank

Capital Resources of World Bank


On June 30, 1996, the authorized capital of the Bank was $ 188 billion out of which $ 180.6 billion (96% of total authorized capital) was issued to member countries in the form of shares.

Member countries repay the share amount to the World Bank in the following ways:




Objectives of World Bank

According to the Clause I of the agreement made at the time of establishment of World Bank, it was assigned the following Objectives:

  5. To promote capital investment in member countries by the following ways;(a) To provide guarantee on private loans or capital investment.(b) If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.

Role/ Functions of World Bank

  • Provides Technical Assistance.
  • Imparts Training.
  • Coordinates Development Assistance.
  • Settlement of International Disputes.
  • Provides Financial Assistance to World Welfare Institutions.
  • Conducts Economic Research.
  • Establishing Subsidiary Institutions.
  • Promote growth of international trade and help maintain BOP equilibrium of the member countries.