What are the objectives of European bank of reconstruction and Development? What are the advantages for India for its membership?

The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. EBRD uses investment as a tool to build market economies. Headquartered in London it initially focused on the countries of the former Eastern Bloc of erstwhile Soviet Union. Later it expanded to support development in more than 30 countries from central Europe to central Asia.
Objectives of EBRD:

  • It supports countries in the process of establishing their private sectors.
  • It offers “project financing” for banks, industries and businesses, for new ventures or existing companies.
  • It works with publicly owned companies to support their
  • EBRD mandates to work only in countries that are “committed to democratic principles”.
  • It promotes “environmentally sound and sustainable development”, and does not finance “defense-related activities, the tobacco industry, selected alcoholic products, substances banned by international law and stand-alone gambling facilities.

Advantages for India for the membership:

  • It will also enable Indian citizens to work for the organisation.
  • India’s stake will also give it a say in the direction of the EBRD’s future work.
  • It will spur further investment by Indian firms in various sectors from solar to utilities thus providing them access to fast growing markets.


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