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International Finance Corporation

  1.  Establishment The International Finance Corporation was established in 1956 to encourage private enterprises and to increase the rate of economic development. The private enterprise is mainly responsible for very high rate of economic development in developed countries. In undeveloped in undeveloped countries, the projects of private competitive enterprises are not in existence on large scale. It is one of the reasons of slow economic growth of these countries. One of the economic backwardness of newly independent countries was that they have to wait for very long time for beginning the process of rapid economic development. There was worry of the failure of democratic system because of the different approach of private enterprises. 2. Objectives The IFC is an associate institution of the IBRD. Their objects are similar to that of objectives of IBRD. Following are the important objectives of IFC-   1.  To encourage foreign 2.  To enterprises private enterprises The IFC undert

International Bank for Reconstruction and Development

1. Establishment The IBRD was established in 1944. The first half of the 20 th Century was of uncertainties at levels in social, economic and political fields. Developed countries in Europe were eager to increase the size of their kingdom. The world economy was badly affected because of this approach. It resulted in World Depression in 1929. Immediately after Second World Was it was essential to help the countries to come out of social, political and economic difficulties. In order to remove these difficulties the IBRD was established. The important tasks before the IBRD were:- 1. Reconstruction of economies of countries involved in Second World War. 2. Economic Development of countries. The government of India also faces the same problems of reconstruction and development of Indian economy immediately after independence. 2.  Objectives Objectives of IBRD are:- 1.   To achieve economic development of countries. 2.   To undertake reconstruction of countries. 3.   To remove