World Bank Group

In 1954, an International Finance Corporation was established to supplementthe World Bank by participating in equityfinancing in member countries, and in 1960, a thirdorganization, the International Development Association (IDA), was created. These three organizations constitutethe World Bank Group. The IDA has the same officers and staff as the World Bank, but its separate charter enables it to offer loans to low-income member countries repayableat 0.75percent interest over 50 years (including 10 years’ grace).

Soft or concessionaryassistance is made possible by contributions to (replenishmentsof)the IDA bythegovernments of high-income (industrial) countries. The management of the World Bank Group is thus enabled to offer rates of interest and loan maturities which take into account the nature of the projects financed and the presumed ability of borrowing governments to service their debt. The initial capitalization of IDA for the 5 years 1960 to 1964 was less than $1 billion in hard currencies. By 192, the ninth replenishmentfor 3 years will be over $ 11 billion.

Today, the World Bank Group is a far cryfrom what it was when the World Bank began in 1946 under President Eugene Meyer – with three floor of rented office space at 1818 H Street NW and a few dozenemployers. Even in the final days of the presidency of George Woods, in 1968, the group had fewer than 1500 employers and four buildings. As of August 31, 1991, however, on the eve of the accessionto the presidency of Lewis Preston, former chairman of the board of J.P.Morgan & Co., the World Bank Group had 3 senior vice presidents, 14 vice presidents, and 6500 employees scatteredthrough 18 separate buildings in Washington, D.C.; 2 large officers in Paris and Tokyo; and 50 regional offices.

The World Bank Group has had a significant positive effect on the flow of capital to the poorer countries of the world, both directly and indirectly, and knowledge of Third World problems has increased enormously.Still, the record of growth is spotty.In much of East Asia, per capita income is rising rapidly, but in Africa south of the Sahara, in South Asia, and in much of Latin America, the growth of per capita income has been discouragingly slow.

a) Translate the vocabulary and learn it by heart:

foremost intergovernmental

prospects for repayment

to be carried out

dam

to accede

subscription

to take into account

day-to-day affairs

to hire

to appoint

to join