The International Bank for Reconstruction and development (IBRD) generally known as the ‘World Bank’. This bank was established as a result of the deliberations at the economic conference held at Breton Woods in July 1944. This bank began its operations in June 1946.
The World Bank was established with the object of reconstructing the economies of the war devastated countries, economic development of the member countries and to raise the standard of living of the people of the world. Initially, only nations that were member of the IMF could be members of the World Bank. But now any country can become the member of the World Bank.
The objectives of World Bank are:
(a) To provide long-run capital to the member countries for reconstruction and development.
(b) To promote private capital investment by providing guarantee on private loans and capital investment.
(c) To maintain equilibrium in balance of payments and balanced development of international trade.
(d) When private capital is not available on reasonable terms, to supplement private investment by providing finance for productive purpose on suitable conditions.
(e) To encourage the development of productive facilities and resources in less developed countries.