HPAS/Allied Mains 2022 Answer Writing Challenge Day 229: Model Answer

Question: What are the objectives of International Bank for Reconstruction and Development (IBRD)? How has IBRD contributed to the Socio-Economic Development of India? (8 marks/ 120 words)

Answer:

The International Bank for Reconstruction and Development (IBRD) is formed in 1944 and presently it has 189 members. The IBRD is the first of five member institutions that compose the World Bank Group.

Objectives:

• 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 standard of living.
• To promote private foreign investment by guarantees of and participation in loans and other investments made by private investors.
• When private capital is not available or reasonable terms to make loans for productive purposes out of its own resources or the funds borrowed by it.
• To arrange the loans made or guaranteed by it in relation to international loans through other channels so that more useful and urgent small and large projects are dealt with first.

The IBRD has financially helped many middle-income countries to grow their economy, similarly, IBRD has a significant contribution to the socio-economic development of India, as discussed below.

• India has received a loan of USD 39,576,852,00 by 2020 from the IBRD. This loan amount is issued by the IBRD to India, to improve some of its key sectors like agriculture, health care, education, infrastructure, skill information, sanitation, etc.
• The Indian Development forum or previously known as the Aid-India Consortium was formed in 1958 by the world bank as an international scheme. The main aim of this scheme was to provide financial assistance to India in its development projects. The countries like the USA, Japan, Germany, and the UK are member countries of this forum.
• In 2017, World Bank has announced a $625 million loan to SBI to provide discounted finance for rooftop solar installations on factories and institutions.
• In January 2022, the world bank raised a fund of USD 125 million to uplift the economically backward sector and provide social protection to people living in vulnerable districts of West Bengal.
• In December 2021, IBRD launched a program that supported the Central Board of Secondary Education (CBSE) to develop vocational skills among students across India.