Define World Bank with it’s working Procedures

The International Bank for Reconstruction and Development (IBRD), commonly known as the World Bank. It was the result of the Bretton Woods Conference. The main objectives behind setting up this international organization were to aid the task of reconstruction of the war-affected economies of Europe and assist in the development of the underdeveloped nations of the world. For the first few years, the World Bank remained preoccupied with the task of restoring war-torn nations in Europe. Having achieved success in accomplishing this task by late 1950s, the World Bank turned its attention to the development of underdeveloped nations. It realized that by investing more and more in these countries. especially in social sectors like health and education; it could bring about the needed social and economic transformation of the developing countries.

To give shape to this investment aspect in the underdeveloped nations, the International Development Association (IDA) was formed in the year 1960. The main objective underlying setting up IDA has been to provide loans on concessional terms and conditions to those countries whose per capita incomes are below a critical level.