The world bank

The World Bank’s goal is to reduce poverty and improve living stand­ards by promoting sustainable growth and investment in people. The bank provides loans, technical assistance, and policy guidance to help its developing-country members achieve this objective.

The following form part of the World Bank group:

The International Bank for Reconstruction and Development (lBRD) - founded in 1944 - is the single largest provider of development loans to middle-income developing countries and a major catalyst of similar financing from other sources. While the World Bank has traditionally financed a wide variety of capital infrastructure such as roads and rail­ways, telecommunications, and ports and power facilities, its develop­ment strategy also places an emphasis on investments that can directly affect the well-being of the masses of poor people of developing coun­tries by making them more productive and by integrating them as active partners in the development process. It also works on a basis of part­nership with non-governmental organisations, UN agencies, the business community, regional organisations, and its 179 member counties.

The Bank’'s concept of 'development' is based on targeting 'human needs' rather than relying on the 'trickle down' theory, and special emphasis is placed on sustainability, environmental protection, the in­creased participation of women in economic decision-making, family planning, greater transparency and open forms of government and recog­nition of the benefits of entrepreneurship, competitive private sector activity and a 'market friendly' approach to development. It also pro­vides assistance for the process of economic transition undertaken in Russia, the Baltics, and the countries of East and Central Europe.

The Bank’s capital is subscribed by its member countries, and it finances its lending operations primarily from its own borrowing in the world capital markets. A substantial contribution to the IBRD’s re­sources also comes from its retained earnings and the flow of repay­ments on its loans. These generally have a grace period of five years and are repayable over twenty years or less. They are directed towards developing countries at more advanced stages of economic and social growth. The interest rate that the IBRD charges on its loans is calcu­lated in accordance with a guideline related to its cost of borrowing. The IBRD’s Charter spells out certain basic rules that govern its opera­tions. It must lend only for productive purposes, and must stimulate economic growth in the developing countries where it lends. It must pay due regard to the prospects of repayment, and each loan is made to a government or must be guaranteed by the government concerned. The use of loans cannot be restricted to purchases in any particular member country, and the IBRD’s decision to lend must be based on economic considerations.

The International Development Association (IDA), founded in 1960, assists the poorest countries by providing interest-free credits. The terms of IDA credits, which are made to governments only, are ten-year grace periods, up to fifty-year maturities, and no interest. In all some sixty countries are eligible for such loans. IDA is primarily funded by govern­ment contributions.

The International Finance Corporation (IFC), established in 1956, assists the economic development of less-developed countries by promoting growth in the private sector of their economies through loan and equity financing as well as advisory services, and helping to mobilise domestic and foreign capital for this purpose. Membership in the IBRD is a prerequisite for membership of the IFC. Legally and financially, the IFC and the IBRD are separate entities. The IFC has its own operating and legal staff, but draws upon the Bank for administrative and other services.

The Multilateral Investment Guarantee Agency (MIGA) - offers inves­tors insurance against non-commercial risk and helps governments in developing countries to attract foreign investment.

The International Center for the Settlement of Investment Disputes (ICSID) - encourages the flow of foreign investment to developing countries through arbitration and conciliation facilities.

UNITED NATIONS EDUCATIONAL SCIENTIFIC AND

CULTURAL ORGANISATION

The aims of UNESCO are concentrated on practical projects for raising educational standards throughout the world, the exchange of knowledge, and the encouragement of international cooperation in the fields of education, science and culture. It seeks to provide better living condi­tions through scientific research and cooperation and to improve the scope and quality of mass communication throughout the world. It has its headquarters and Secretariat in Paris, and is controlled by a General Conference of all member states meeting every two years and an Exec­utive Board of fifty-one meeting at least three times a year. National commissions extend the sphere of UNESCO activities to include the majority of member countries, and there are branch offices in New York and Havana; regional education offices in Santiago, Bangkok, Dakar and Beirut; and regional science offices in Nairobi, Montevideo, Cairo, Delhi and Jakarta.