Business Strategy

WORLD BANKThe World Bank provides financial and technical assistance to emerging market countries. The World Bank is not actually a bank in the common sense. Instead, it consists of two development institutions -- the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)-- owned by 186 member countries. It’s a sister institution to the IMF. The members of the international monetary fund are also the membersof the world bank. As of 1986, world bank has the total of 181 members and country that wants to resign it’s membership, that country is expected to pay back all loans with interest ondue date.ROLES OF THE WORLD BANKWorld bank position in international trade is to influence interest rate and balnce of payment.World bank gives out short loans while the IMF gives out longterm loans.While the world bank lends out it’s capital the world bank lends outit’s proceed of bonds sold to the public through various capital markets.The world bank gives out loans to finance investment projects. You are member of world bank only when you are a member of the IMF.Private long-term lending to aid investment in foreign countries quite independently of the world bank.OBJECTIVES OF THE WORLD BANKThe World Bank provides low-interest loans, interest-free credits and grants to developing countries. In the past, this usually occurred when they were in danger of sovereign debt default, itself often a result of overspending and extensive borrowing. Many countries then devalued their currencies, which resulted in hyperinflation. To combat this, the Bank often required austerity measures, where the country must agree to cut back on spending and support its currency. The World Bank loans are usually to invest in education, health, and infrastructure. The loans can also be used to modernize a country's financial sector, agriculture, and natural resources management. The Bank's goal is to "bridge the economic divide between poor and rich