Unit 27. The World Bank.ppt

Unit 27. The World Bank I. What is the world bank? A. Background of the World Bank The World Bank refers to the International Bank for Reconstruction and Development (IBRD-国际复兴与开发银行) and its affiliates , the International Development Association (IDB-国际开发署), the International Finance Corporation (IFC-国际金融公司) and the Multilateral Investment Guarantee Agency (MIGA-多边投资担保机构). The world bank is to help raise standards of living in developing countries by channeling financial resources to them from developed countries. B. Operations of IBRD The IBRD, whose capital is subscribed by its member countries, finances its lending operations primarily from its own borrowings in the world capital markets. A substantial contribution to the IBRD’s resources also comes from its retained earnings (保留盈余) and the flow of repayments on its loans. IBRD loans generally have a grace period (宽限期) of 5 years and are repayable over 15 to 20 years. They are directed toward developing countries at more advanced stages of economic and social growth. The interest rate IBRD charges on its loans is calculated in accordance its cost of borrowing. C. Basic Rules Govern the Operations of IBRD It must lend only for productive purposes and must stimulate economic growth in the developing countries in which it lends. It must pay due regard to the prospects of repayment. Each loan is made to a government or must be guaranteed by the government concerned. The use of loans can not be restricted to purchases in any particular member country, and the IBRD’s decisions to lend must be based on economic considerations alone. D. The Use of the World Bank’s Loans While the World Bank has traditionally financed all kinds of infrastructure, such as roads and railways, telecommunications, and port and power facilities, its development strategy emphasizes 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