nternational    onomi        r anisations       ndia     16.5
                                                                per capita income. The credits are for a period
        World Bank                                              of 35–40 years, interest-free, except for a small
     The World Bank (WB) Group today consists of                charge to cover administrative costs. Repayment
     five closely associated institutions propitiating          begins after a 10-year grace period. There was no
     the role of development in the member nations              human angle to its lending. But now there remain
     in different areas. A brief account is as follows:14       no hard and fast differences between the purposes
                                                                for the IBRD and IDA lending.
     ibrD                                                            Every year developing nations make enough
     The International Bank for Reconstruction and              diplomatic attempts to carve out maximum loan
     Development is the oldest of the WB institutions           disbursal for themselves. India had been the
     which started functioning (1945) in the area               biggest beneficiary of the IDA support. The total
     of reconstruction of the war-ravaged regions               support (IBRD + IDA) for India had been $ 91.81
     (World War II) and later for the development               billion till date.16
     of the middle-income and credit-worthy poorer
     economies of the world. Human development                  ifc
     was the main focus of the developmental lending            The International Finance Corporation (IFC) was
     with a very low interest rate (1.55 per cent per
                                                                set up in 1956 which is also known as the private
     annum)—the areas of focus being agriculture,
                                                                arm of the WB. It lends money to private sector
     irrigation, urban development, healthcare, family
                                                                companies of its member nations. The interest
     welfare, dairy development, etc. It commenced
                                                                rate charged is commercial but comparatively low.
     lending for India in 1949.
                                                                There are many attractive features of IFC’s lending.
          After the process of reforms started in the           It finances and provides advice for private-public
     World Bank in 2010, India was alloted additional
                                                                ventures and projects in partnership with private
     shares in IBRD (now holds 56,739 shares
                                                                investors and, through its advisory work, helps
     accounting to US $ 6,844.7 million). With this
                                                                governments of the member nations to create
     India emerged as the 7th largest shareholder (up
                                                                conditions that stimulate the flow of both domestic
     from the 11th position) in IBRD with voting
                                                                and foreign private savings and investment.
     power of 2.91 per cent (up from 2.77 per cent).15
                                                                     It focuses on promoting economic
     iDA                                                        development by encouraging the growth of
                                                                productive enterprises and efficient capital
     The International Development Agency (IDA)
     which is also known as the soft window of the WB           markets in its member countries. It participates
     was set up in 1960 with the basic aim of developing        in an investment only when it can make a special
     infrastructural support among the member                   contribution that complements the role of market
     nations, long-term lending for the development of          investors (as a foreign financial investor (FFI).
     economic services. Its loans, known as credits are         It also plays a catalytic role, stimulating and
     extended mainly to economies with less than $895           mobilising private investment in the developing
                                                                world by demonstrating that investments there
       14.  Based on Basic Facts About the United Nations,      too can be profitable.
            52–55; Publication Division, India 2004 (New Delhi:
            Government of India, 2007); Publication Division,        We have seen a great upsurge in the IFC
            India 2013 (New Delhi: Government of India, 2014).  investments in India which has undoubtedly
       15.  Publication Division, India 2014 (New Delhi:
            Government of India, 2015), p. 322.                   16.  Publication Division, India 2013, p. 415.