Observation

This question was the most unpopular among the candidates. The candidates were required to differentiate between the International Monetary Fund (IMF) and the World Bank and explain any four ways through which the World Bank contributes to the economic development of their country in the (a) and (b) parts of the question respectively. Most of the candidates were unable to differentiate between the International Monetary Fund (IMF) and the World Bank in the (a) part of the question. The contributions of the World Bank to economic development of a country were not properly outlined as required in the (b) part of the question. Candidates’ performance in this question was poor. 

 

These candidates were expected to give the following answers to score the maximum marks:

(a)        The IMF was established by the United Nations for the purpose of creating favourable conditions to expand international trade and help members solve their balance of
payments problems effectively without harming the interests of others, with short-term loans.

The World Bank was established by the United Nations to provide long-term loans
to help finance developmental/infrastructural projects in developing economies.

(b)(i)    The World Bank provides long-term loans for developmental projects e.g. roads, irrigation projects, power stations etc.
(ii)   The World Bank also provides technical assistance regarding surveys for development  plans, training facilities and project management.
(iii)  The World Bank provides experts to solve problems in the home country which the local personnel are unable to solve.
(iv)  The World Bank makes available the development experiences of other countries to the recipient country.
(v)   The World Bank finances feasibility studies relating to development in the recipient country.
(vi)  The World Bank offers advice on development issues and ensures that the recipient country takes it.     
(vii) The World Bank provides guarantee for loans granted to private institutions in member countries.

     (viii)The World Bank helps in poverty alleviation by investing in schools, health facilities, water and sanitation etc.