In this article we will discuss about:- 1. Aims of International Bank for Reconstruction and Development 2. Functions of International Bank for Reconstruction and Development 3. Subsidiaries of International Bank for Reconstruction and Development.

The International Bank for Reconstruction and Development (briefly known as the World Bank), like the International Monetary Fund, is the outcome of the Bretton Woods Conference, July 1944. The Bank began its operations in June 1946. It is a specialised agency of the United Nations but is also an independent international organisation. All the members of the I.M.F. can become its members.

Aims of International Bank for Reconstruction and Development:

The following are some principal aims of the Bank:

(a) To provide funds and technical assistance to facilitate economic development in its poorer mem­ber countries;

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(b) To help reconstruction work in countries damaged by war;

(c) To help in order to develop member countries by facilitating the invest­ment of capital for productive purposes;

(d) To promote the long-range growth of international trade and

(e) To encourage private foreign invest­ment by guaranteeing and participating in such investment.

Functions of International Bank for Reconstruction and Development:

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The bank performs the following functions:

(a) Granting of long and me­dium-term loans for reconstruction to war-damaged countries and tor development of developing countries,

(b) Granting of loans to governments and also to private industrial concerns for specific projects like reconstruc­tion electric power, transportation (e.g., the Metro Railway of Calcutta), agriculture or communications; and

(c) Promoting foreign investments by guaranteeing loans given by other organisations.

Subsidiaries of International Bank for Reconstruction and Development:

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The Bank has set up two subsidiary organisations to supplement its activi­ties:

(a) The International Development Agency (IDA) and

(b) The Interna­tional Finance Corporation (IFC).