INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT :-
The IBRD was set up in 1945 with 8 million dollars.
Objectives Of IBRD :-
1. It was set up to provide foreign exchange for post war reconstruction.
2. To improve the economic condition of the less developed countries.
The IBRD is actively engaged in assisting and encouraging the long term investment for the development. The IBRD has increased the private investment in abroad. IBRD also lends directly to the countries. It also participates with private investors in foreign lending. The bank also advances loans to local Govt. and commercial institutions if Govt. of that country gives surety of the repayment of capital. No doubt the IBRD has played very effective role in improving the economic conditions of the less developing countries who have requested the bank to provide them loans on low rate of interest. The conditions for credit should be also easier.
EUROPEAN COMMON MARKET or EUROPEAN ECONOMIC COMMUNITY :-
European Economic Community is also called European Common Market. It was set up in 1957 by six nations of the Western Europe.
Its main aim is to remove the restrictions on the mobilization of labour and capital among the member of countries.
Now its membership has increased up to ten. In order to achieve economic integration it has made the following decisions :
1. Abolition Of Tariffs : It has been decided that tariffs and import quotas should be abolished over a period of ten to 15 years among the member countries.
2. Common System : A common system of tariffs should be set up for the goods received from the rest of the world.
3. Perfect Mobility : There should be a perfect mobility of labour and capital within common market.
4. Common Policies : As regards the other economic affairs of joint concerns, common policies are be formulated. Economic purpose of ECM was to realize the advantages of increased specialization. The members felt that their national market was very small, so they thought that a large market will absorb by the community members that due to the improved efficiency production will he cheaper and it will increase their prosperity. Past experience shows that trade among the member countries has been increased but it has neglected the rest of the world. So these countries also hesitate to purchase the product of other countries, who are not the member of the community.