DEVELOPMENT BANKS, BILATERAL AGENCIES AND PROJECTS

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THE WORLD BANK: OBJECTIVES AND SCOPE

The role of the World Bank was to facilitate investment and reconstruction in the post-war economy through raising capital in the money markets and lending it at advantageous rates to war torn and developing countries.

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THE WORLD BANK: RESOURCES

Part of the World Bank resources comes from the market-related interest rates from the funds it lends to the developing countries.

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THE WORLD BANK: ACTIVITIES

The World Bank involved itself in channeling funds from private capital markets to developing countries.

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REGIONAL DEVELOPMENT BANKS: OBJECTIVES AND SCOPE

Regional Development Banks (RDBs) are multi-lateral financial institutions that offer financial and technical assistance for development in low and middle-income countries within their region.

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REGIONAL DEVELOPMENT BANKS: INSTITUTIONS

They are comprised of four institutions;

African Development Bank (AfDB),Asian Development Bank (ADB),European Bank for Reconstruction,Development (EBRD),Inter-American Development Bank (IDB).

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REGIONAL DEVELOPMENT BANKS: RESOURCES

RDBs are funded by both the hard and soft lending windows. The hard lending windows borrows funds from the international capital market and relends the money to developing countries at a slightly higher rate to cover their operating expenses.

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REGIONAL DEVELOPMENT BANKS: ACTIVITIES

They offer grants and low-interest loans to various sectors of a country’s economy such as agriculture, education and infrastructure.

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BILATERAL AGENCIES: OBJECTIVES AND SCOPE

Bilateral agencies usually receive funding from the government in their home countries, which they then utilize in providing aid directly to developing countries through various programs and projects.

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BILATERAL AGENCIES: RESOURCES

Bilateral agencies are associated with particular governments, which are their chief financiers. The aid donor countries have more control in deciding where to provide the aid, as well, as selecting the projects to be funded and their respective financial budgets.

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BILATERAL AGENCIES: ACTIVITIES

The main activity of bilateral agencies is the provision of aid to the poorest developing countries to help facilitate policies, encourage trade, coordinate finances and facilitate the flow of financial assistance to the developing nations.

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