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Unit 12: International Monetary Fund

the drafting committee. The Indian delegation was led by Sir Jeremy Raisman, Finance Member Notes
of the Government of India and included Sir C. D. Deshmukh (Governor of the Reserve Bank of
India, later to become India's Finance Minister), Sir Theodore Gregory (the first Economic
Advisor to the Government of India), Sir R.K. Shanmugan Chetty (later independent India's first
Finance Minister), Mr. A.D. Shroff (one of the architects of the Bombay Plan) and Mr B.K. Madan
(later India's Executive Director in IMF).
IBRD is made up of two unique development institutions owned by 184 member countries – the
International Bank for Reconstruction and Development (IBRD) and the International
Development Association (IDA). Each institution plays a different but supportive role in our
mission of global poverty reduction and the improvement of living standards. Besides, it also
has three affiliates named:

1. The International Finance Corporation (IFC),
2. The International Centre for Settlement of Investment Disputes (ICSID),
3. The Multilateral Investment Guarantee Agency (MIGA).
All five of these institutions together make up the World Bank Group.

Notes Total member countries in each institution:

1. The International Bank for Reconstruction and Development (IBRD) - 184
2. The International Development Association (IDA) - 165
3. The International Finance Corporation (IFC) - 178
4. The Multilateral Investment Guarantee Agency (MIGA) - 167

5. The International Centre for Settlement of Investment Disputes (ICSID) - 142

12.2.1 Purpose of Organization

The purposes of the Bank as described in its articles:
1. The main purpose of the bank is to assist economies in the reconstruction and development
by facilitating the investment of capital for productive purposes, it also helps in
reconstruction of economies destroyed or disrupted by war, and it encourages the
development of productive facilities and resources in less developed countries.
2. To promote private foreign investment by means of guarantees or participations in loans
and other investments made by private investors; and when private capital is not available
on reasonable terms, to supplement private investment by providing, on suitable
conditions, finance for productive purposes out of its own capital, funds raised by it and its
other resources.
3. To promote the long-range balanced growth of international trade and the maintenance
of equilibrium in balances of payments by encouraging international investment for the
development of the productive resources of members, thereby assisting in raising
productivity, the standard of living and conditions of labour in their territories.
4. To arrange the loans made or guaranteed by it in relation to international loans through
other channels so that the more useful and urgent projects, large and small alike, will be
dealt with the first.

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