IBRD

2016-08-12 00:00:00

IBRD (International Bank for Reconstruction and Development) is one of the divisions of the financial network of the World Bank. The company arose thanks to the cooperation of the UN and the International Monetary Fund. It performs the role of an interstate investment institution. The bank began its activity in 1946. The headquarters of the financial organization is located in Washington.

The IBRD provides financial support for the economic development of countries that have signed a cooperation agreement with the bank. The company takes an active part in the formation of international trade relations.

In the difficult post-war years, the task of the IBRD was to provide assistance to the capitalist powers, whose economies had suffered greatly as a result of the war against Nazi Germany. The bank attracted investments in Western European countries. At the age of 50 the position of these states returned to normal, the economy improved, and the financial organization directed its activities to the developing countries of South America, Africa, Eastern Europe, and Asia. Russia is also a member of the IBRD.

 

Services and products

IBRD Bank specializes in providing loans to countries that need financial assistance. The Government of the Russian Federation also uses the services of the organization.

The Bank offers a wide range of solutions that will help in the economic development of the state and raise the well-being of citizens to a qualitatively new level. This may be, for example, funding various kinds of projects or research. IBRD staff will help analyze the country's financial situation and develop an effective strategy for economic development. The organization is also working towards the elimination of financial illiteracy of the population: seminars and trainings are held.

Financing

1. Financing projects to attract investment. The Bank provides loans, the proceeds of which are to be used to develop the country's infrastructure.
2. Development finance. Governments of states can take a loan from the IBRD to support the country's budget and implement programs aimed at combating poverty.
3. Loans aimed at achieving results. By issuing this type of loan, the government must guarantee a specific result.
4. Grants and trust funds. This solution can be used by countries that have been particularly affected by the crisis. Credit funds can be used to eliminate the consequences of natural disasters.
5. Development of individual loan products to meet the needs of a particular country.

 

Services offered by the International Bank for Reconstruction and Development

Providing technical support

Technical support is expressed in recommendations, the purpose of which is the implementation of reforms in the field of politics and economics. These reforms are necessary for the development of the state. The financial institution has vast experience in creating and implementing government programs with a long-term perspective.

The bank's employees will help to draft bills that provide for state reform and develop a strategy for the country's economic development.

Paid consulting

The Bank provides its clients with advice that is not included in the budget of the financial institution. This consultation is provided for a fee. This includes holding forums, meetings, conferences.

Research in the field of industry and economics

Employees of the IBRD Bank will help analyze the economic situation in the country, the level of industrial development and the characteristics of the social sphere. The analysis is carried out on the basis of statistical studies. Using the data obtained, the bank's specialists, together with the leaders of the country, will be able to build a strategy for the further development of the state (both economic and political). Based on research, effective projects and long-term government programs are being developed.

Donor help

IBRD Bank is the official representative of the World Bank financial group, which acts as an intermediary between funds and organizations providing humanitarian and financial assistance to developing countries. These funds are called donors. The Bank coordinates the activities of donor organizations, creating advisory groups, organizing meetings of partners at which the problems of the state in need of assistance are solved.

 

Capital Management

A correctly chosen capital management strategy has a positive effect on the economic development of the state. Therefore, the IBRD bank controls all the operations it finances and helps develop the right financial management tactics.

The IBRD management sees its goal in supporting the borrowing country not only financially by offering loans, but also technically by providing an information base in the field of financial management. In a word, the bank provides the state with a loan and controls the use of credit funds. This policy ensures transparency in all financial transactions and ensures that money is spent appropriately.

For the state, this tactic also has certain advantages: the government can control the spending of money: each payment is accompanied by a report. The efficiency of state treasury management is rising to a new level. In addition, such a scheme simplifies the fight against embezzlement and corruption.

 

State procurements

IBRD employees carefully monitor that the borrowing state uses the loan funds provided by the bank only for the purposes that were determined by the Cooperation Agreement. That is, all purchases must be made exclusively within the framework of projects or programs financed by the IBRD.

The financial institution is an initiator of public procurement reforms in many countries. The bank's management believes that spending transparency guarantees economic development and improvement in the welfare of the population.

In the winter of 2016, the bank proposed a new public procurement scheme that focuses not so much on low prices as on the quality of goods.

Support

In case of disputes or unsatisfactory performance of the bank, clients have the right to file complaints with the World Bank Help Desk. The complaint will be considered as soon as possible.

A special commission considers complaints related to the International Bank for Reconstruction and Development. Complaints can be filed by both individuals and communities. The Help Desk will not accept a confidential complaint, however, if the petitioner wishes to remain incognito, the commission will grant his request and will not disclose personal information.

Complaints are submitted in writing. A petition is addressed to the World Bank in a department called "Helpdesk".

You can send a letter in any convenient way:

• to an email address;
• postal services;
• by fax.

 

External Relations Services

The IBRD Bank helps partner countries to establish external relations. For this purpose, briefings and meetings are held, the participants of which are representatives of different states: youth communities, students and teachers, business representatives and government members, and many others. This is done by a special unit - the "Bureau of External Relations".

Every Tuesday and Thursday, the Bureau holds informative lectures and seminars for about 2 dozen participants. Here you can learn about how the World Bank Group was created and developed, get acquainted with its leaders. The financial instruments that are used in the work of the bank are not left without attention. Seminar organizers talk about the problems hindering the economic development of the country.

Such presentations have an educational purpose, so heads of state, directors of large companies and corporations often order them for their subordinates.

 

Work results

The International Bank for Reconstruction and Development finances various projects in many countries. The activities of the financial organization contributed to the implementation of reforms in a wide variety of areas: politics, economics, education, medicine, and so on. Projects related to the improvement of settlements were also implemented: repairing the water supply, bringing transport routes into proper condition, improving communal infrastructure, opening new schools, etc.