1
MARIST INTERNATIONAL UNIVERSITY COLLEGE
(A constituent College of the Catholic University of Eastern Africa)
BACHELOR OF ARTS IN STRATEGIC DEVELOPMENT
COURSE CODE: BSD 404
COURSE TITLE: STRATEGIC DEVELOPMENT FINANCE
TOPIC: FIVE FUNCTIONS OF WORLD BANK, ROLES OF MULTINATIONAL
BANKS, ANALYZE ANY THREE FINANCING AGENCIES.
, 2
Discuss 5 functions of World Bank
Before world war two, the global financial sectors were operating autonomously without
any common bank or financial services to unify the countries. However, after WW2, many
countries had issues with inflation, unemployment and currency fluctuations which led to a
meeting to be held in Bretton Woods New Hamphire (1944), to focus on promotion of free trade,
creation of a bank to help finance countries after the war and to solve the short term financial
crisis of the countries. The resulting outcome of the meeting was the formulation of IMF and the
World Bank. The World Bank comprises International Bank for Reconstruction and
Development (IBRD) which lends to developed countries at market rates and International
Development Association (IDA) for poor countries interest free or minimal interest. The World
Bank performs its actions through the following agencies.
● the International Bank for Reconstruction and Development (IBRD)
● International Development Association (IDA)
● International Finance Corporation (IFC)
● Multilateral Investment Guarantee Agency (MIGA)
● International Center for the Settlement of Disputes (ICSID)
The word bank was formulated to perform the following functions:
1. Giving loans and grants
The Word Bank was formulated to give long term loans to countries regardless of their
development levels. Although the lending rates are different for poor and developed countries,
the aim of the grants and loans is to facilitate development of the countries. The loans that are
given are, investment loans which enables the countries to engage in investment opportunities
either in attainment of the SDGs (Sustainable Development Goals). The investment projects can
be those that will give the government profits or those that aim at improving the livelihood of the
citizens. The World Bank also gives policy development loans to enable the countries to enact
institutional reforms. Additionally, the bank gives grants for innovation and cooperation with
different stakeholders. For example, in the middle of the Covid 19 pandemic, many companies
and individuals have obtained funding from the bank to develop prototypes aiding in the fight
against the pandemic.
MARIST INTERNATIONAL UNIVERSITY COLLEGE
(A constituent College of the Catholic University of Eastern Africa)
BACHELOR OF ARTS IN STRATEGIC DEVELOPMENT
COURSE CODE: BSD 404
COURSE TITLE: STRATEGIC DEVELOPMENT FINANCE
TOPIC: FIVE FUNCTIONS OF WORLD BANK, ROLES OF MULTINATIONAL
BANKS, ANALYZE ANY THREE FINANCING AGENCIES.
, 2
Discuss 5 functions of World Bank
Before world war two, the global financial sectors were operating autonomously without
any common bank or financial services to unify the countries. However, after WW2, many
countries had issues with inflation, unemployment and currency fluctuations which led to a
meeting to be held in Bretton Woods New Hamphire (1944), to focus on promotion of free trade,
creation of a bank to help finance countries after the war and to solve the short term financial
crisis of the countries. The resulting outcome of the meeting was the formulation of IMF and the
World Bank. The World Bank comprises International Bank for Reconstruction and
Development (IBRD) which lends to developed countries at market rates and International
Development Association (IDA) for poor countries interest free or minimal interest. The World
Bank performs its actions through the following agencies.
● the International Bank for Reconstruction and Development (IBRD)
● International Development Association (IDA)
● International Finance Corporation (IFC)
● Multilateral Investment Guarantee Agency (MIGA)
● International Center for the Settlement of Disputes (ICSID)
The word bank was formulated to perform the following functions:
1. Giving loans and grants
The Word Bank was formulated to give long term loans to countries regardless of their
development levels. Although the lending rates are different for poor and developed countries,
the aim of the grants and loans is to facilitate development of the countries. The loans that are
given are, investment loans which enables the countries to engage in investment opportunities
either in attainment of the SDGs (Sustainable Development Goals). The investment projects can
be those that will give the government profits or those that aim at improving the livelihood of the
citizens. The World Bank also gives policy development loans to enable the countries to enact
institutional reforms. Additionally, the bank gives grants for innovation and cooperation with
different stakeholders. For example, in the middle of the Covid 19 pandemic, many companies
and individuals have obtained funding from the bank to develop prototypes aiding in the fight
against the pandemic.
