Page 195 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes (a) International Finance Corporation: This corporation was set up in 1960 to provide
loans to the private sector of the member countries. By far, 57 companies of India have
been able to secure foreign investment worth $121 crore through this corporation.
(b) International Development Association: It was founded in 1960 with the objective
of providing loans to poor countries on concessional rate. India obtained a loan of
90.3 crore dollars from this Association in 1997. These loans are mainly meant for
agriculture, population control and development of roads.
(c) Multinational Investment Guarantee Agency: It was established in 1988. Its objective
is to give guarantee against risk, so as to encourage foreign investment in the private
sector of developing countries. India became its member in 1993.
7. Technical Assistance: World Bank has provided from time-to-time, technical assistance
to India for its varied projects. It has sent about 15 Expert teams to India. After surveying
different parts of the country and assessing the development projects in India, these experts
gave several valuable suggestions for their development. World Bank has its Resident
Representative at New Delhi. He has a constant liaison with the Government of India
regarding development projects.

8. Population Control Assistance: World Bank has given loans amounting to $495 crore
to India for effective implementation of population control programme and for urban
development.

9. Help to Non-governmental Organization: World Bank has given financial assistance to
many non-governmental organizations involved in public welfare activities. Some of the
main projects are
(a) National Leprosy Elimination
(b) Basic Education Project
(c) Child Development Services Project, etc.
The World Bank has been largely instrumental in accelerating the pace of economic development
in different countries of the world. The purpose of the Bank can be fulfilled only when the rate of
interest charged by the bank is low enough for all countries to enable them to take loans from the
bank more frequently. The Bank is a non-political institution expected to treat all member equally
and not to discriminate among them.
It is hoped that in future the World Bank will be in a stronger positions to render financial assistance
to the member countries with its increased capital, resources and the active co-operation of its
affiliates, i.e., the International Development Association (IDA) and the International Finance
Corporation (IFC).

self assessment

Fill in the blanks:
11. The ............... has been largely instrumental in accelerating the pace of economic development
in different countries of the world.
12. The purpose of the Bank can be ............... only when the rate of interest charged by the
bank is low enough for all countries to enable them to take loans from the bank more
frequently.
13. The Bank is a ............... expected to treat all member equally and not to discriminate among
them.

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