To meet the needs of poor countries the Bank changed its lending techniques, with regard tp the countries concerned.
The Bank has made leans that are primarily designed to protect the environment in developing countries.
The International Bank for Reconstruction and development made loan terms longer, and differentiated between the interest rates charged to industrialized States and those to developing nations.
The Bank is corporate in form, all its capital stock being owned by its member States; the amount of their shares is established on the basis of the quotas set for participating in the IMF.
The Bank’s primary statutory goals, namely, ‘the restoration of economies destroyed or disrupted by war’ and the ‘reconversion of productive facilities to peaceful needs’ were primary attained through activities carried out directly by the USA.
If the borrower is not a government, the loan must be guaranteed by the government in whose territory the project financed by the loan is located.
Loans made only for technically and economically valid projects, are long term and incur current interest rate.
Loans are made in instalments payment of which can be held up whenever the essential economic objectives of the adjustment programme are not fulfilled.
To meet the specific needs of developing countries the Find set up mechanisms designed to increase the lending of financial resources to those countries.
The lending of financial resources to developing countries has come about through the increase in the maximum limit on authorized drawing, and through the establishment of special resources designed to take into account the wide range of causes of disequilibria in the balance of payment.
Initially loans were made in the form of stand-by-arrangements, in order promptly to intervene in the event of balance of payment crises; they were granted for short periods and were to be repaid within a brief time span.
The Agreement, unlike the Articles instituting the Bank and the IMF, did not create an international organization; however over the years an international organization; however over the years an organizational structure did evolve, operating between the sessions of the contracting parties, held twice a year in Geneva.
Another obligation prescribes that imported goods be treated no worse than domestic goods under internal taxation or regulation measures.
While the most-favoured-nation clause is designed to provide non-discriminatory treatment for imports from different foreign countries, this obligation puts foreign goods on the same footing as those produced domestically.
In practice the structure of the WTO has formalized that with which the GATT had progressively endowed itself.
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