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.