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|The World Bank helps the member countries in reducing their balance of payment deficits while maintaining or regaining their economic growth. Structural Adjustment Facility funds are utilized for the purpose of financing general imports. They are released in two parts and are based on stiffer conditions laid down by the bank for the projects which are running from five to seven years.
Enhanced structural adjustment facility:
The bank provides new concessional resources totaling special drawing rights amounting to $6 billions which are to be financed by special loans and contributions from the developed and OPEC countries . The loan is given to member countries to reduce its balance of payments deficits and encourage growth.
The Bank makes medium and long term loans running up to the completion of the project. They have a grace period of five years and repayable over 20 years or less.
The bank’s lending operations were concentrated heavily upon capita Wholesale Jerseys China , infrastructural projects such as power generation and distribution, railway and roads, ports and telecommunications, major irrigation works etc.,
Effective 1970, the bank finances for the changes in the educational system in developing countries towards establishing the institutions for financing of individual investments and provision of technical assistance in the selection and appraisal of invidividual projects and to help in the preparation of agricultural projects. Its present development strategy lays more emphasis on investments that can directly affect the welfare of the poor people of the developing countries by increasing their productiveness and standard of living. It has been financing the projects for rural development, education, family planning, nutrition, low cost housing, water and sewerage.
Special action programmes:
This lending programme helps in assisting the member countries in adjusting to the current economic environment and it has four elements as detailed below:
a) An expansion in lending for high priority operations that support structural adjustments Wholesale Jerseys , policy changes, production for export, fuller use of existing capacity and the maintenance of crucial infrastructure;
b) Accelerating investments under the existing and new investment commitments ensuring timely implementation of high priority projects;
c) Expanding advisory services on the design and implementation of appropriate policies and
d) Enlisting familiar efforts by other donors for fast disbursing assistance in support programmes of the bank and the International Monetary Fund.
Conditions for lending activities:
The following are the conditions laid down by the bank for the borrowers:
a) Unflinching commitments towards economic stability so as to reduce inflation and deficits;
b) An efficient regulatory mechanism ensuring transparent policies and de-political environment;
c) Adequate risk management;
d) Provision for long term financing
e) Increase in the share of private sector in the country’s gross domestic project.
The bank also indulges in training, technical assistance, inter organizational cooperation, economic research and studies, operations evaluation and settlement of investment dispute of its members. The bank is laying greater emphasis on developing the main resources such as education, population, health, nutrition and environment and it also helps the private sector in areas namely; finance, power Cheap Nike NFL Jerseys China Wholesale , telecommunications, information technology, oil and gas, industry, mining etc.
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