Page 257 - General Knowledge

GENERAL KNOWLEDGE 2019

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 With this India emerged as the 7 largest shareholder in IBRD with voting power of 2.91
percent.
IDA (International Development Agency)
 The International development Agency (IDA) which is also known as the soft window of the
WB was set up in 1960 with the basic aim of developing infrastructural support among the
member nations, long-term lending for the development of economic services.
 Its loans, known as credits are extended mainly to economies with less than $895 per
capita income.
 The credits are for a period of 35-40 years, interest-free, except for a small charge to cover
administrative costs.

 Repayment begins after a 10-year grace period.
 There was no human angle and fast differences between the purposes for the IBRD and
IDA lending.
 India had been the biggest beneficiary of the IDA support.
 The total support for the India had been $91.81 billion till date.
IFC (International Finance Corporation)
 The International Finance Corporation (I.F.C) is an affiliated institution of World Bank. It was
established on July 20, 1956 with the object of assisting private enterprises in developing
countries by providing them with risk capital.
 The World Bank grant loans only to member governments or private enterprises with the
guarantee of member government concerned.
 Again the World Bank provides only loan to private enterprises.
 Infact the development of private enterprises is held up for lack of adequate risk capital.
 Hence there was an urgent need for some international finance institution which would be
willing to provide risk capital to the private industrial undertaking in developing countries.
 The I.F.C was set up to meet the participation requirement of private industrial
undertakings.
Objectives
 The main objectives of the I.F.C is to accelerate the pace of economic development of the
member countries in the under developed areas of the world in these ways.
 By investing in private productive enterprises in association with private investors and
without any government guarantee of repayment.
 By bringing together investment opportunities, private capital, and both foreign and
domestic and experienced management.
 By stimulating productive investment of private capital, both foreign and domestic, in the
developing countries for productive purposes.
Membership of I.F.C
 As already pointed out that the I.F.C is an affiliate of the World Bank.
 Its membership is separate from that of the World Bank.

 But it is only the members of the World Bank who can become members of the I.F.C. It is
not essential that all the members of the World Bank should also be the members of the
I.F.C, is optional for the members of the World Bank.
 Total membership of the I.F.C at present is 161.

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