Achievements
The following are the major achievements of World Bank:
(i) Membership
The total membership of the Bank has increased from a mere 30 countries initially to 68 countries in 1960 and then to 151 countries in 1988.
(ii) Increase in Working Capital
The bank has been increasing its Working Capital from time to time. Accordingly, it has raised its capital by selling its securities and bonds at different times to different countries like USA, UK etc. Accordingly, its capital has trebled during the past 40 years. In September, 1987, the Bank approved on increase in general of 74.8 billion dollars in its capital and thereby raised its lendable resources to 170 billion dollars.
(iii) Increase in Subscribed Capital
The Bank has also raised its subscribed capital from $ 10,000 million initially to $ 19,300 million in 1960 and then to $ 91,436 million in 1988. As a result of following such process, the lending capacity of the Bank has expanded.
(iv) Loan Approval
The amount of approval of loan to the member countries has been increasing and accordingly the amount increased from $ 659 million in 1960 to $ 14,762 million in 1988.
(v) Loan Disbursement
The volume of loan disbursement by the Bank among its members has also been increasing and accordingly the volume of loan disbursement has increased from $ 544 million in 1960 to $ 11,636 million in 1988.
(vi) Total Loan
The World Bank has advanced a significant amount of loan to its member countries. During the past 40 years of its existence since inception (up to June, 1989) the Bank had lent to the extent of $ 1,36,596 million to 115 member countries for various developmental projects.
(vii) Loans for Productive Purposes
The World Bank is granting loans to member countries for productive purposes, especially for the development of agriculture, irrigation, electricity and transportation projects. Economic development of a country depends on the basic infrastructure. Therefore, the Bank is lending for these aforesaid projects for this rapid economic development.
(viii) Technical Assistance
As per provisions of the Bank, the World Bank has been sending technical missions to member countries for collecting necessary information regarding the functioning of their economies. The Bank has been giving technical assistance to its member countries in order to solve their complicated economic problems and for assessing economic resources of the country and setting up of priorities for development programmes.
(ix) New Loan Strategy
In recent years, the Bank has introduced new loan strategy for giving more emphasis of financing different schemes for influencing the well being of the poor masses of member developing countries, especially for the purpose of agricultural marketing, forestry, fishery, development of feeder roads in rural areas, rural electrification, spread of education in rural areas etc. In respect of industry, the Bank made provision for direct lending to industries, more emphasis on heavy industries, fertilizer industry, labour intensive small scale industry etc.
(x) Assistance to Underdeveloped Countries
The World Bank has been playing a special role for assisting the underdeveloped countries by undertaking special economic and welfare schemes in the form of:
(a) Financial assistance for the promotion of development;
(b) Developing ‘third window’ to advance loan at lower rate of interest to the underdeveloped countries;
(c) Providing technical assistance;
(d) Organizing meetings of creditor countries for providing loan to developing countries such as Aid India Club etc.;
(e) Setting up of subsidiary financial institutions like International Finance Corporation (IFC), International Development Association (IDA) for providing soft and concessional finance to developing countries etc.
(xi) Settlement of Disputes
The World Bank has been playing an important role in the settlement of international disputes successfully for the promotion of world peace. Accordingly it has resolved Indus river water dispute between India and Pakistan and Suez Canal dispute between England and Egypt.
