FINANCIAL OPERATIONS AND TECHNICAL ASSISTANCE PROGRAMME OF WORLD BANK

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MASTER OF COMMERCE – M.Com First Year (IBO) Solved Assignments for July 2019 and January 2020 Admission Cycles

IBO Tutor Marked Solved Assignment

Course Code : IBO – 01
Course Title : International Business Environment
Assignment Code : IBO-01/TMA/2019-20

Coverage : All Blocks

IBO – 01 International Business Environment Solved Assignment for 2019-20

Q3.) (a) Describe the financial operations and assistance programmes of World Bank.

Ans: The International Bank for Reconstruction and Development (IBRD), better known as the World Bank, was established at the same time as the International Monetary Fund to tackle the problem of international investment.

Since the IMF was designed to provide temporary assistance in correcting the balance of payments difficulties, an institution was also needed to assist long-­term investment purposes. Thus, IBRD was established for promoting long-term investment loans on reasonable terms.

The World Bank (IBRD) is an inter-governmental institution, corporate in form, whose capital stock 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.

On the whole, the World Bank assistance is for infrastructural development in the areas such as transportation, urban development, electricity and other energy generation, dams, education, rural development.

FINANCIAL OPERATIONS: The World Bank provides assistance to governments, public sector units, autonomous bodies, municipalities etc. Its loans have to be guaranteed by the respective governments. The maturity of its loans varies from 15 to 20 years and they are at relatively low rates of interest. The World Bank has been emphasizing on giving loans to help countries to meet balance of payments difficulties, and it has been using its loans window to make debtor countries to adopt policies of free trade, privatization, deregulation, liberalization and globalization.The World Bank has identified the following major development issues on which it is intended to focus :

• The pursuit of economic reforms;
• The investment in people in particular through education;
• Health, nutrition and family planning programmes;
• The protection of environment;
• Stimulation of private sector;
• Reorientation of government, in order to enhance the private sector by reforming and strengthening the public sector.

TECHNICAL ASSISTANCE : The provisions of technical assistance has become a major component of World Bank. It provides technical assistance to member countries on the basis of economic sector and project analysis undertaken by the Bank. The Bank introduced Project Preparation Facility (1975) to help the prospective buyers fill up gaps in project preparation and creation of necessary institutional structure for it and the project is financed by the United Nations Development Programme (UNDP).It transfers technology services on evaluation and monitoring panels.