|
At the same time that the International Monetary Fund was created, the International Bank for Reconstruction and Development (the World Bank) was also established. The function of the Bank was to provide a mechanism for supplying for long periods of time - 20 or 30 years -- the foreign exchange needed to rebuild and develop economies. It was recognized that buying equipment from abroad provides a short cut to development, but that is impossible for a country without substantial exports to obtain the currency needed to buy such equipment. By offering long-term financing, the Bank was expected to accelerate the growth of economies in this category. |
