Higher education in Asian countries and the role of international ...

5.3.2 The World Bank
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The World Bank or the Bank supports and is engaged in wide range of activities covering all
fields of life in all parts of the world. It gives loans, policy advice, and technical assistance to
supports a broad range of programs. The Bank divides its work between IBRD which assists
middle-income and creditworthy poorer countries, and IDA which focuses exclusively on the
world‟s poorest countries. Working through both IBRD and IDA, the Bank uses its financial
resources, skilled staff, and extensive knowledge base to help each developing country achieve
stable, sustainable, and equitable growth.
IBRD and IDA share the same staff and the same headquarters, report to the same senior
management, and use the same standards when evaluating projects. Some countries borrow from
both institutions. For all its clients, the Bank emphasizes the need for:
Strengthening governments‟ ability to deliver quality services efficiently and
transparently;
Focusing on social development, inclusion, governance, and institution building as
key elements of poverty reduction;
Protecting the environment; supporting and encouraging private business
development;
Promoting reforms to create a stable macroeconomic environment that is conducive
to investment and long-term planning
Investing in people, particularly through basic health and education;
5.3.2.1 IBRD and IDA Funding and Lending: sources of income of the World Bank
The World Bank finances the development programs by tapping the world‟s capital markets (in
the case of IBRD) and by receiving contributions from wealthier member governments (in the
case of IDA). Additionally, specific activities can be funded by donors through trust funds
managed by the World Bank.
IBRD which facilitates more than half of the Bank‟s annual lending, raises money primarily by
selling AAA-rated bonds in international financial markets. Additionally, IBRD charges interest
to its borrowers at rates that reflect its cost of borrowing. Loans must be repaid in 15 to 20 years,
and there is a 3- to 5-year grace period before repayment of principal begins.