Major Achievements of the World Bank are as follows:

1. General Progress:

(i) The Bank's membership has increased from the initial number of 30 countries to 68 countries in
1960 and to 151 countries in 1988.

(ii) The subscribed capital has increased from the initial amount of $ 10,000 million to $ 19,300
million in 1960 and further to $ 91,436 million in 1988. This increased capital has led to the
expansion of the Bank's lending capacity.

(iii) In 1960, the Bank approved loans worth $ 659 million which went up to $ 14,762 million in 1988.

(iv) The disbursement of loans increased from $ 544 million in 1960 to $11636 million in 1988.

(v) In 1960, 31 operations were approved for financial assistance. In 1988, the number of operations
approved increased to 118.

(vi) Cumulatively, up to June 1988, the IBRD has provided loans worth $155049 million (as shown in
Table-2).

2. Lending Operations:

It is clear from Table-2 that till June, 1988, the IBRD has granted loans worth $155049 million. About
22% of the Banks aggregate lending is for energy, 21% for agriculture and rural development, 18%
for transportation and communications and 10% for industry and small scale enterprises.

3. Term Loans:

The Bank grants medium and long-term loans (i.e., payable over a period of 15-20 years) for
reconstruction and development purposes to the member countries. The actual term of a loan
depends upon the estimated useful life of the equipment or plant financed.

4. Loans for Reconstruction:

In the initial years of its establishment, the World Bank's loans were mainly directed to the European
countries (whose economies were shattered during the World War II) for financing their
programmes of reconstruction. The Bank provided loans worth about $ 5, 00 million for
reconstruction purpose.

5. Traditional Development Loans Policy:

In 1948, the Bank started paying attention to lending for development purposes. The traditional
development loan policy of the Bank has been to help the member nations to strengthen the
foundations of their economies for rapid economic development.

Therefore, the major portion of the Bank's assistance has gone to finance infrastructure of the
borrowing country.

About half of the loans have been for the development of electric power projects and the other half
for the development of other sectors, i.e. transport, agriculture and industry.
6. New Loan Strategy:

Recently, however, the Bank has changed its development loan strategy and lays more emphasis of
financing schemes which directly influence the well-being of poor masses of the member countries,
especially the developing countries.

The bank's adoption of the new strategy of 'development with justice' has led to the following
changes in the sectoral finance.

(i) The amount of agricultural loans has increased more rapidly than in any other sector. The
emphasis in agricultural has also shifted from basic irrigation infrastructure to storage, marketing,
seed multiplication, forestry, fishery, etc.

(ii) The bank now also takes interest in the activities of the development of rural areas such as (a)
spread of education among the rural people ; (b) development of feeder roads in rural areas ; and (c)
electrification of the villages.

(iii) The main features of the Bank's assistance to the industrial sector are: (a) considerable increase
in the direct lending to industries, particularly the public sector industries; (b) more emphasis on the
heavy industries like mining, steel, fertilisers, pulp and paper ; (c) greater attention to fertilisers
projects for agricultural industrial development; (d) greater emphasis on labour-intensive small scale
industries and primary export-oriented industries ; and (e) support for development finance com-
panies.

(iv) In the electric power sector, the Bank's emphasis has shifted from generation and transmission
of electricity to distribution of electric power and rural electrification.

(v) Other schemes financed by the Bank include water supply and sewerage, housing and other
facilities for the urban poor, tourism, etc.

7. Assistance to Underdeveloped Countries:

The World Bank has a special role in accelerating the process of economic and welfare schemes in
these countries. The following are the main aspects of Bank's assistance to the underdeveloped
countries :

(i) Bulk of the Bank's financial assistance has been given to the underdeveloped countries for the
promotion of development.

(ii) Through its 'third window", the Bank has made available loans to the underdeveloped countries
at tower interest rates.

(iii) The Bank organises meetings of creditor countries for extending assistance to the developing
countries. Aid India Club is one such example.

(iv) The Bank also provides technical assistance to the developing countries by making available
training facilities through its various institutions.

(v) The Bank has established two subsidiary institutions for promoting development in the less
developed countries; (a) In 1956, International Finance Corporation was established to stimulate
productive investment in developing countries, (b) In 1960, International Development Association
was established to provide liberal and concessional finance to the developing countries.

(vi) The IBRD's lending to the poorest countries (i.e., those with per capital income less than $425 in
1986) has increased from an annual average of $1122 million during 1979-83 to 3439 in 1988.

http://www.simplynotes.in/e-notes/mbabba/international-business-management/world-bank/2/

Achievements

The following are the major achievements of World Bank:

(i) Membership

The total membership of the Bank has increased from a mere 30 countries initially to 68 countries in
1960 and then to 151 countries in 1988.

(ii) Increase in Working Capital

The bank has been increasing its Working Capital from time to time. Accordingly, it has raised its
capital by selling its securities and bonds at different times to different countries like USA, UK etc.
Accordingly, its capital has trebled during the past 40 years. In September, 1987, the Bank approved
on increase in general of 74.8 billion dollars in its capital and thereby raised its lendable resources to
170 billion dollars.

(iii) Increase in Subscribed Capital

The Bank has also raised its subscribed capital from $ 10,000 million initially to $ 19,300 million in
1960 and then to $ 91,436 million in 1988. As a result of following such process, the lending capacity
of the Bank has expanded.

(iv) Loan Approval

The amount of approval of loan to the member countries has been increasing and accordingly the
amount increased from $ 659 million in 1960 to $ 14,762 million in 1988.

(v) Loan Disbursement

The volume of loan disbursement by the Bank among its members has also been increasing and
accordingly the volume of loan disbursement has increased from $ 544 million in 1960 to $ 11,636
million in 1988.

(vi) Total Loan

The World Bank has advanced a significant amount of loan to its member countries. During the past
40 years of its existence since inception (up to June, 1989) the Bank had lent to the extent of $
1,36,596 million to 115 member countries for various developmental projects.

(vii) Loans for Productive Purposes

The World Bank is granting loans to member countries for productive purposes, especially for the
development of agriculture, irrigation, electricity and transportation projects. Economic
development of a country depends on the basic infrastructure. Therefore, the Bank is lending for
these aforesaid projects for this rapid economic development.

(viii) Technical Assistance

As per provisions of the Bank, the World Bank has been sending technical missions to member
countries for collecting necessary information regarding the functioning of their economies. The
Bank has been giving technical assistance to its member countries in order to solve their complicated
economic problems and for assessing economic resources of the country and setting up of priorities
for development programmes.

(ix) New Loan Strategy

In recent years, the Bank has introduced new loan strategy for giving more emphasis of financing
different schemes for influencing the well being of the poor masses of member developing
countries, especially for the purpose of agricultural marketing, forestry, fishery, development of
feeder roads in rural areas, rural electrification, spread of education in rural areas etc. In respect of
industry, the Bank made provision for direct lending to industries, more emphasis on heavy
industries, fertilizer industry, labour intensive small scale industry etc.

(x) Assistance to Underdeveloped Countries

The World Bank has been playing a special role for assisting the underdeveloped countries by
undertaking special economic and welfare schemes in the form of:

(a) Financial assistance for the promotion of development;

(b) Developing third window to advance loan at lower rate of interest to the underdeveloped
countries;

(c) Providing technical assistance;

(d) Organizing meetings of creditor countries for providing loan to developing countries such as Aid
India Club etc.;

(e) Setting up of subsidiary financial institutions like International Finance Corporation (IFC),
International Development Association (IDA) for providing soft and concessional finance to
developing countries etc.

(xi) Settlement of Disputes

The World Bank has been playing an important role in the settlement of international disputes
successfully for the promotion of world peace. Accordingly, it has resolved Indus river water dispute
between India and Pakistan and Suez Canal dispute between England and Egypt.