International Bank for Reconstruction and Development (IBRD) International Bank for Reconstruction and Development (IBRD) Establishment, objectives and membership: Establishment, objectives and membership:  establishment: Bretton Woods, 1944  objectives: long-term financing of after-war reconstruction and long-term financing of development of less developed member countries (developing countries and countries in transition)  membership: IBDF with global membership  Evolution of activities and changing priorities from establishment until now: second half of the 1940s and first half of the 1950s: financing economic reconstruction of countries that were affected most during World War II second half of the 1950s: long-term financing of economic development

International Bank for Reconstruction and Development (IBRD) SOME OTHER CONTIBUTIONS 1960s: financing big industrial and infrastructure objects 1970s: socio-economic development goals: growth, poverty reduction, securing basic needs of the population financing integral programs of countryside development, health and education projects, securing clean water access, sanitary services, apartment building and urban area development 1980s: project and balance-of-payments financing ecological aspects of economic development 1990s: Washington Consensus poverty reduction programs, institutional capabilities strengthening and anticorruption programs, programs oriented towards cooperation with the private sector as well as non-government organizations

International Bank for Reconstruction and Development (IBRD) Capital and voting method: Capital and voting method: capital: 188,6 mia $ (in the middle of 2010), of which less than 1/10 of paid-in-capital voting method: voting power of a country depends on its share in the capital of the bank basis: quotas in the IMF Organization structure : Organization structure : Board of Governors Board of Executive Directors Development Committee President

International Bank for Reconstruction and Development (IBRD) Sources of funds: Sources of funds: basic financial source is capital borrowing in international capital markets reserves and debt repayments for loans approved in previous years Loans as a prevailing form of the allocation of funds: Loans as a prevailing form of the allocation of funds: terms of the loans: favorable commercial loans, payment term between 12 and 20 years (3-5 years of principal payment deferral), variable interest rate, unconditional insurance with the borrowing country guarantee preferred creditor

International Bank for Reconstruction and Development (IBRD) loan types: loan types: project loans sectorial loans structural adjustment loans technical assistance loans loans for reconstruction size and structure of approved loans: size and structure of approved loans: the biggest IBDF that approves loans to developing countries and to countries in transition

International Bank for Reconstruction and Development (IBRD) Structural Adjustment Loans (SAL): Structural Adjustment Loans (SAL): multitude of economic reforms that are supposed to reach macroeconomic equilibrium in a country through supply side measures reasons for the introduction of SAL loans concepts and basic elements of the SAL loan/program: SAL loan– balance-of-payments loan SAL program– structural reform program criteria for accompanying success of implementing SAL programs: drawing in more tranches complementarity of/competitiveness between SAL programs and economic stabilization programs