The IBRD, known as the World Bank, came into force on July 1, 1944, during the Bretton Woods Conference. It is a sister institution to the IMF but has s separate, distinct objective. Its head office is located in Washington D.C., USA. The current emphasis of IBRD is to support the less developed countries as most of the developed countries’ economies recovered quickly.
Presently there are 185 members of the Bank. Membership is allowed only to those countries who are also members of the IMF. A member country’s voting power is dependent on the capital contribution. Like the IMF, the World Bank is also being dominated by major Western countries.
World Bank focuses on making loans to government in order to rebuild railroads, highways, and other infrastructure i.e., the areas where private sector enterprises do not take interest.
The main objectives of IBRD are as follows:
i. To assist in the reconstruction and development of its member countries by facilitating the investment of capital for productive purposes, thereby promoting long range growth of international trade and improvements in the standard of living.
ii. To promote private foreign investment by guarantees of and participation in loans and other investments made by private investors.
iii. To maintain balance growth of international trade and to attain equilibrium in BoP account.
iv. Motivating governments to act on preventing climate change, controlling communicable diseases, managing international financial crises and promoting free trade.