Topics to be Discussed 2• Introduction• Brief History• World Bank Group• Objectives• Functions• Voting Power• World Bank and India• References
3Introduction:• The world bank is an internationally supported bank that provides financial and technical assistance to developing countries for development programs (e.g. Bridges, roads, schools) with the stated goal of reducing poverty.
4• President - Jim Yong Kim (12th)• Membership - 188 countries (IBRD) 172 countries (IDA)• Headquarters - Washington, DC• Established - July 1,1944• Parent organization - World Bank Group
5History: Founded in 1944,at Bretton Woods. First loan to France in 1947 of $250 million. 1947 - Incorporation into UN System. 1979 - Lending for the fiscal year crosses the $10 billion mark for the first time.
6World Bank Group: IBRD ICSID IFC MIGA IDA
7 World Bank Group:• IBRD: provides loans and advice to government of middle income countries to assist development.• IDA: provide interest free loans called credits and grants to countries who are not able to borrow through normal market channels or to the poorest countries.• IFC: provides loans, equity and technical assistance to stimulate private sectors investment in developing countries.• MIGA: Provides guarantees against losses caused by non-commercial risks to investors in developing countries.• ICSID: Provides international facilities for arbitration of investment disputes.
8Objectives:• To assist in the reconstruction and development of territories of members.• To promote private investment.• When private capital is not available on reasonable terms, to supplement private investment.
9• To promote the long-range balanced growth of international trade and the maintenance of equilibrium in balances of payments.• To arrange the loans made or guaranteed by it in relation to international loans.• To conduct its operations with due regard to the effect of international investment on business conditions in the territories of members and in the immediate postwar years.
10Functions:• Granting reconstruction loans to war devastated countries.• Granting developmental loans to underdeveloped countries.• Providing loans to governments for agriculture, irrigation, power, transport, water supply, educations, health, etc• Providing loans to private concerns for specified projects.
11• Promoting foreign investment by guaranteeing loans provided by other organizations.• Providing technical, economic and monetary advice to member countries for specific projects• Encouraging industrial development of underdeveloped countries by promoting economic reforms.
13 India :Amount of Lending (Millions Of US Dollars)Source: www.worldbank.org
14 Project Details in India:Total projects in India till sep. 6722012Total active projects 116Total closed projects 494Total dropped projects 44Total pipeline projects 18Active Project in India in 2012 10
S. Project Title Commit Approval 15no ment Date. Amount million US $1 ICDS Systems Strengthening & Nutrition Improvement 106 06/092012 Program (ISSNIP)2 Karnataka Watershed Development II 60 06/0920123 Development Policy Loan (DPL) to Promote Inclusive 100 06/092012 Green Growth and Sustainable Development in Himachal4 Enhancing Capacity for NAP alignment and Reporting 0.15 12/07/2012 to UNCCD Secretariat - India5 Bihar Rural Livelihood Project Additional Financing 100 31/05/20126 Rajasthan Agricultural Competitiveness Project 109 27/03/20127 India: Secondary Education Project 500 22/03/201 28 National Dairy Support Project 352 15/03/20129 Assam State Roads Project 320 16/03/201210 Assam Agricultural Competitiveness Project Additional 50 08/13/2012
16Meeting Challenges in India:• India is the Bank’s largest borrower, with total commitments of $5.5 billion in fiscal 2011.• India’s Sarva Shiksha Abhiyan—The Bank- supported, government launched scheme seeks to meet the primary education needs of nearly 200 million poor children living in more than 1 million rural towns and villages across the country.
17• the Bank approved a $1.5 billion loan in fiscal 2011 for the Pradhan Mantri Gram Sadak Yojana.• In addition a $350 million loan for the Second Karnataka State Highway Improvement Project was approved this fiscal year• In May the World Bank approved a $1 billion credit and loan as part of its long-term support for the government’s Mission Clean Ganga.