Group (International Development Association; International Finance Corporation; Multilateral Investment

Guarantee Agency). The establishment of the IBRD, like the International Monetary Fund,

Was agreed by the representatives of forty-four countries at the UN Monetary and Financial Conference

At Bretton Woods in July 1944. It began operations in June 1946, and has its head office in Washington,

DC. The purpose of the Bank is to encourage capital investment for the reconstruction and

Development of its member countries, either by channelling the necessary private funds or by making

loans from its own resources. Originally, 20 per cent of each member’s subscription was paid into the

Bank’s funds in currency and gold, but this has been progressively reduced to 4.4 per cent; the remainder

is retained but available for call to meet any of the Bank’s liabilities if required. The Bank also raises

Money by selling bonds on the world market. Generally speaking, the Bank makes loans either direct to

Governments or with governments as the guarantor. Contributions of member countries to its capital are

made in proportion to that member’s share of world trade. Members’ voting rights are allocated in the

same way. In 1995 the Bank had an authorized capital of $184 billion. In 1995 there were 179 member

countries and gross disbursements of the Bank were $12,7 billion.