World Bank helps countries with loans for which of the following purpose?

The correct answer is Reconstruction and development.

• World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects.
  • The World Bank's most recently stated goal is the reduction of poverty.

Key Points

• The World Bank is the largest public development institution in the world, lending around US$ 25 billion a year to developing countries.
  • The main purposes of the Bank, as outlined in Article One of its Articles of Agreement, are:
    • “to assist in the reconstruction and development of territories of members by facilitating the investment of capital for productive purposes” 
    • “to promote the long-range balanced growth of international trade and the maintenance of equilibrium in balances of payments by encouraging international investment. 
    • Thereby assisting in raising productivity, the standard of living and conditions of labour in their territories”.

Additional Information

• Harry Dexter White and John Maynard Keynes were the founders of the World Bank.
  • It is headquartered in Washington D.C., USA.
  • Ajay Banga is the President of the World Bank.