Question

Explain the function of World Bank.

Answer 1

World Bank- It is a Bretton Woods institution and a financial organisation that provides loans to developing countries. Its stated goal is the reduction of poverty in the world and its decisions are guided by a commitment to increase foreign investment and international trade. It comprises two institutions- The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD has 188 member countries while the IDA has 170 member countries. The President of the World Bank is nominated by the President of the US and is always a citizen of the US. The voting pattern of World Bank is skewed in favour of developed countries. Thus, it is still some distance away from being entirely democratic in its affairs.