Final answer:
The World Bank, through IBRD, raises funds to provide loans and assists LDCs in economic development, while the IMF promotes credibility inviting foreign investment. These international investments are essential for capital accumulation and growth in LDCs.
Step-by-step explanation:
The International Bank for Reconstruction and Development (IBRD), commonly known as the World Bank, encourages investment funds to Less Developed Countries (LDCs) as a crucial part of its mission to alleviate poverty and promote economic development.
The World Bank supports projects that drive economic growth and improve living standards. This investment is crucial because it fills a gap for LDCs that find it difficult to generate investment themselves. Foreign investment not only contributes to economic growth but also brings in necessary skills, technology, and can spur further investment from other sources.