World Bank & the Export-Import Bank

Name Course Tutor Date World Bank & the Export-Import Bank The World Bank The main role of the World Bank is to promote free-market pathways to help in development, with the main focus on GDP as progress of indicator. As a result, most developing countries should concentrate on their market institutions that control spending and consider building fiscal instructions There are several functions that developing countries should adopt with regards to economic growth. For instance, governments should make sure that they address the issue of increase in spending, which can be made possible through such policies as redistribution and other government services. Over the years, developing countries have witnessed an increase in government spending that has so far been connected to advancement in economies. The world’s economy is supported by the extent and size of the advanced economies. In the current times, there has been an increased rate of spending by the developed nations such as Hong Kong, with 54 % rise. The developing countries should work towards adopting countercyclical system of spending. In this manner, such countries will be able to sustain their expenditure patterns. Furthermore, developing nations must be in a position to device countercyclical fiscal policies, especially those countries that have natural resources in abundance. On a different note, developing countries have since engaged in pro-cyclical fiscal policies that have led to profound cases of economic instability, macroeconomic imbalances, and unproductive debt build-ups. The International Bank for Reconstruction and Development offers loans to middle-income countries that are still developing. This is an international financial institution that has five other member institutions that make up the World Bank Group, with the headquarters in Washington D.C, United States. According to the World Bank, a development loan is one that is meant to finance real property and infrastructure, including excavation work, constructions of improvements, construction of roads and sewers. Additionally, this is a loan that can be used to hold the costs of a property until the time of sale or one that can support amortization of permanent financing. On the other hand, investment loan is one that support companies and governments investment in properties for the sake of making profits. This is a loan tha...