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09 March, 2022

Discuss the objectives and roles of the world bank to promote economic development of its member countries

 Some of the most important objectives of World Bank are givebelow:

1) To promote long-term foreign investment on reasonable terms

2) To provides financial assistance to the poorest developing countries whose per capita GNP is less than $865 a year

3) To encourages private enterprises in developing countries through its affiliates

4) To assist in reconstruction and development of members by facilitating capital investment

5) To  promote  foreign  investment  by  guaranteeing  loans  provided  by  other organizations

6) Encouraging industrial development of underdeveloped countries by promoting economic reforms

 

The major roles of World Bank to promote the economic developments in member countries:

The  Bank  is  currently involved  in  more  than  1,800  projects  in  developing country.

Currently providing microcredit in Bosnia & Herzegovina, raising AIDS-prevention awareness in Guinea, supporting education of girls in Bangladesh, improving health care delivery in Mexico, rebuild Gujarat of India after a devastating earthquake.

The Roles of members of WB:

IDA: Provides interest-free loans to countries with sovereign guarantees.


IFC: Provides loans, equity, risk-management tools, and structured finance. Its goal is to facilitate sustainable development by improving investments in the private sector.

MIGA: Focuses on improving the FDI of developing countries.

ICSID: Enhancing capital flow to dispute resolution between governments and private investors.