ABSTRACT
The World Bank, more formally known as the International Bank for Reconstruction and Development (or IBRD), was founded as the sister institution of the International Monetary Fund in July 1944 at the Bretton Woods conference. The IBRD was designed to complement the IMF's short-term focus by taking a longer-term, development perspective. More specifically, the IBRD's articles of agreement state that the Bank is to promote foreign investment for development through loan guarantees and participations; it is also to supplement private investment in projects it deems appropriate, when other sources of funds are insufficient. The IBRD obtains funds from four sources: capital subscriptions of its member countries, capital market borrowing, loan repayments, and retained earnings. Furthermore, the Bank has invested a great deal of time and resources in pursuit of the belief that a reduction of the role of the state in the economy will produce greater efficiency and better economic performance.
