Project of Int. Org.

8/4/2019 Project of Int. Org.

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Scroll No. 60

IBRD- ORIGAN, OBJECTIVE, AND FUNCTION

A Project Report Submitted to

University Five Year Law College

Jaipur

International Organization

Under the supervision of: Submitted by:

Dr.Bhupesh Rathore Shivam Sharma

Faculty Of International Organization Sem.-III, Sec.- B

University Five Year Law College , Roll no. 60

University of Rajasthan, Jaipur

University Five Year Law College,

University of Rajasthan, Jaipur

31July , 2011


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Dr. Bhupesh Rathore University Five Year Law College,

Faculty University of Rajasthan,

Jaipur

Certificate

This is to certify that Mr.Shivam Sharma is a student of III Semester,

University Five Year Law College, University Of Rajasthan, Jaipur. He has

written the project entitled IBRD- ORIGAN, OBJECTIVE, AND

FUNCTION under my supervision and guidance.

It is further certified that the candidate has made an appreciable attempt on the

subject mentioned above.

Dr. Bhupesh RathoreDated: July 31

th, 2011

(Supervisor)


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Acknowledgment

I have written this project, IBRD- ORIGAN, OBJECTIVE, AND

FUNCTION under the supervision of Dr. Bhupesh Rathore, Faculty,

University Five Year Law College, University of Rajasthan, Jaipur.

I found no words to express my sense of gratitude for Dr. Bhupesh Rathore for

providing the necessary guidance and constant encouragement at every step of

his endeavour. The pain taken by his for scrutiny of the rough draft as well as

his valuable suggestions to plug the loopholes therein have not only helped me

immensely in making this work see the light of the day but above all has helped

in developing an analytical approach to this work. I am extremely grateful to my

respected teachers of University Five Year Law College (UFYLC) for their co-

operation and guidance and their valuable time. I am highly indebted to the

office and library staff of the college for the support in cooperation extended by

them from time to time.

DATE: 31 July, 2011 Shivam Sharma

PLACE: Jaipur


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Research Methodology

An attempt has been made the project & project matter more

comprehensible and ruled. Every part of the project is to the

point, which has a precise meaning to the title of the project.

The subject matter of the project have been arranged in a

manner so that anyone go through it may find no problem to

understand & comprehend the same. The research methodology

is quite simple. Doctrinal method is used to make the project.The matters of the project are collected after the correction &

suggestion of the lecturers & professors.


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TABLE OF CONTENT

Certificate (ii)

Acknowledgment (iii)

Research Methodology (iv)

1. Introduction of the World Bank2. Introduction of the IBRD3. Objectives of the IBRD4. Membership of the IBRD5. Withdrawal of the Membership6. Functions of the IBRD7. Other Activities of the IBRD8. Bibliography


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Introduction of the World Bank

The World Bank is an international financial institution that provides

loansto developing countries for capital programmes. The World Bank's official

goal is the reduction of poverty. All of its decisions must be guided by a

commitment to promote foreign investment, international trade and

facilitate capital investment.

The term World Bank now refers to World Bank Group which includes-

International Bank for Reconstruction and Development (IBRD) established in

1945 for providing debt financing on the basis of sovereign guarantees.

International Financial Corporation (IFC) established in 1956 for providing

various forms of financing without sovereign guarantees primarily to the private

sector.

International Development Association (IDA) established in 1960 for providing

concessional financing (interest free loans, grants etc.) usually with sovereign

guarantees.

International Centre for Settlement of Investment Disputes (ICSID) established

in 1966 which works with various governments of various countries to reduce

investment risks.

Multilateral Investment Guarantee Agency (MIGA) established in 1988 for

providing insurance against certain types of risks including political risks

primarily to the private sector.

But the World Bank comprises only two institutions: the International Bank for

Reconstruction and Development (IBRD) and the International Development

Association (IDA). The headquarter of the World Bank is in the Washington DC.

The members of the World Bank are as-187 countries (IBRD) and 170 countries

(IDA).


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Introduction of theIBRD

ORIGIN

As early as February 1943, United States Undersecretary of State Sumner B.

Welles urged preparatory consultation aimed at the establishment of agencies

to finance reconstruction and development of the world economy after World

War II. The US and the UK took leading roles in the negotiations that were to

result in the formation of the IBRD and the IMF. The IBRD is the main lending

organization of the World Bank Group . It came into existence on December

27, 1945 following international ratification of the agreements reached at

the United Nations Monetary and Financial Conference of July 1 to July 22,

1944 in Bretton Woods, United States. The IBRD's headquarters are at 1818 H

Street, N.W., Washington, DC 20433.

Objectives of the IBRD

The IBRD is an international organization whose original object was to finance

the reconstruction of nations devastated by World War II. Now, its object has

expanded to fight poverty by means of financing states. Its operation is

maintained through payments as regulated by member states.

Today, the object of the World Bank is to promote economic development that

benefits poor people in developing countries. Loans are provided to developing

countries to help reduce poverty and to finance investments that contribute to

economic growth. Investments include roads, power plants, schools, and

irrigation networks, as well as activities like agricultural extension services,

training for teachers, and nutrition-improvement programs for children and

pregnant women. Some World Bank loans finance changes in the structure of
http://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/Bretton_Woods,_New_Hampshirehttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Bretton_Woods,_New_Hampshirehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conference


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countries' economies to make them more stable, efficient, and market

oriented. The World Bank also provides technical assistance to help

governments make specific sectors of their economies more efficient and more

relevant to national development goals.

Membership of the IBRD

Members of the IBRD are186 . The latest member isTuvalu, which joined in

2010.

Non Permanent Members are -

Andorra,CookIslands,Cuba,Liechtenstein,Monaco,Nauru,Niue,North

KoreaandVatican City. All other non-members arestates with limited

recognition.

All members of the IBRD are alsoIMFmembers, and vice versa.

Withdrawal of the Membership

A government may withdraw from membership at any time by giving notice of

withdrawal. Membership also ceases for a member suspended by a majority of

the governors for failure to fulfill an obligation, if that member has not been

restored to good standing by a similar majority within a year after thesuspension. Only a few countries have withdrawn their membership from the

Bank, and all but Cuba (withdrew in 1960) have rejoined.

Functions of the IBRD
http://en.wikipedia.org/wiki/List_of_United_Nations_member_stateshttp://en.wikipedia.org/wiki/List_of_United_Nations_member_stateshttp://en.wikipedia.org/wiki/List_of_United_Nations_member_stateshttp://en.wikipedia.org/wiki/Tuvaluhttp://en.wikipedia.org/wiki/Tuvaluhttp://en.wikipedia.org/wiki/Tuvaluhttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Cook_Islandshttp://en.wikipedia.org/wiki/Cook_Islandshttp://en.wikipedia.org/wiki/Cook_Islandshttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Monacohttp://en.wikipedia.org/wiki/Monacohttp://en.wikipedia.org/wiki/Monacohttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Niuehttp://en.wikipedia.org/wiki/Niuehttp://en.wikipedia.org/wiki/Niuehttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/Vatican_Cityhttp://en.wikipedia.org/wiki/Vatican_Cityhttp://en.wikipedia.org/wiki/Vatican_Cityhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/List_of_states_with_limited_recognitionhttp://en.wikipedia.org/wiki/Vatican_Cityhttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/North_Koreahttp://en.wikipedia.org/wiki/Niuehttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Monacohttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Cook_Islandshttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Tuvaluhttp://en.wikipedia.org/wiki/List_of_United_Nations_member_states


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The IBRD is an international organization whose original function was to

finance the reconstruction of nations devastated by World War II. Now, its

function has expanded to fight poverty by means of financing states. Its

operation is maintained through payments as regulated by member states.

The IBRD provides loans to governments, and public enterprises, always with a

government or sovereign guarantee of repayment subject to general

conditions. The funds for this lending come primarily from the issuing of World

Bank bonds on the global capital marketstypically $1215 billion per year.

These bonds are rated AAA (the highest possible) because they are backed by

member states' share capital, as well as by borrowers' sovereign guarantees.

Because of the IBRD's credit rating, it is able to borrow at relatively low

interest rates. As most developing countries have considerably lower creditratings, the IBRD can lend to countries at interest rates that are usually quite

attractive to them, even after adding a small margin (about 1%) to cover

administrative overheads.

The IBRD also called the World Bank mainly performs the following functions:

1. To assist in reconstruction and development of territories of its members byfacilitating the investment of capital for productive purpose and to encourage

the development of productive facilities and resources in less development

countries.

2. To promote private foreign investment by means of guarantees onparticipation in loans and other investment made by private investors.

3. To promote the long range balanced growth of international trade andthe maintenance of equilibrium in the balance of payments of member

countries by encouraging international investments for the development of

their productive resources.

4. To arrange the loans made or guaranteed by it in relation to internationalloans through other channels so that more useful and urgent small and large

projects are dealt with first.

Other Activities of the IBRD
http://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Countrieshttp://en.wikipedia.org/wiki/Countrieshttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/International_organization


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1. FINANCIAL RESOURCES

Authorized capital- At its establishment, the IBRD had an authorized capital

of US$ 10 billion. Countries subscribing shares were required to pay in only

one-fifth of their subscription on joining, the remainder being available on call

but only to meet the IBRD's liabilities if it got into difficulties. Moreover, not

even the one-fifth had to be paid in hard cash at that time. The sole cash

requirement was the payment in gold or US dollars of 2% of each country's

subscription.

2.LENDING OPERATIONS

The IBRD lends to member governments, or, with government guarantee, to

political subdivisions, or to public or private enterprises.

The IBRD's first loan, US$ 250 million for postwar reconstruction, was made in

the latter part of 1947.

3.. PURPOSES OF THE LOANS

The main purpose of the Bank's operations is to lend to developing member

countries for productive projects in such sectors as agriculture, energy,

industry, and transportation and to help improve basic services considered

essential for development. The main criterion for assistance is that it should be

provided where it can be most effective in the context of the country's specific

lending programs developed by the Bank in consultation with its borrowers.

5. Implementing the Bank's Poverty Reduction StrategyThe fundamental objective of the World Bank is sustainable poverty

reduction. Underpinning this objective is a two-part strategy for reducing

poverty that was proposed in the World Development Report 1990. The

first element is to promote broad-based economic growth that makes

efficient use of the poor's most abundant asset, labor. The second element

involves ensuring widespread access to basic social services to improve the

well being of the poor and to enable them to participate fully in the growth

of the economy.


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6. Human Resource DevelopmentBank lending for human resource development has largely been committed

for education, and its focus has been towards development of basic

education. Bank lending for population, health, and nutrition has expanded

even more rapidly.

7. The EnvironmentThe Bank has continued to support environmental protection efforts with

loans totaling US$ 978 million in fiscal 1999, compared to US$ 404 million in

fiscal 1990.

A Vice Presidency for Environmentally and Socially Sustainable Development

was established. Three departments were placed under this vice presidency

the Environment Department, the Agriculture and Natural Resources

Department, and the Transport and Urban Development Department.

8. Technical AssistanceThe Bank provides its members with a wide variety of technical assistance,

much of it financed under its lending program. In addition to loans and

guarantees to developing countries, the World Bank carries out its mission

by providing advice and assistance with telecommunications sector reform

and national information infrastructure strategies.


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Bibliography

1.International Law & Human Right 16

th

Edition Dr. H.O Agarwal2.www. Google .com

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