13. FUNDING Financial resources are acquired by borrowing on the international bond market. It issues bonds to raise money and then passes on the low interest rates to its borrowers. It is made up of185 member countries. These countries are jointly responsible for how the institution is financed and how its money is spent.
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15. The IBRD in the World Bank Group World Bank (1944) makes Long Term loans to countries to enhance sustainable economic development alleviates external debt burden maintains profit-oriented objectives loans are not subsidized engages in co-financing agreements to extend economic impact (catalytic role)
16. The IBRD Organization The World Bank is a truly global institution 185 countries, all members of the IMF (precondition) Established in 1945, as part of a new framework for international cooperation (Bretton Woods Conference, New Hampshire, July 1944) The 24-member Board represents the 184 member countries and is made up of 5 appointed and 19 elected Executive Directors Cumulative lending = $420 billion Loans outstanding= $103 billion Lending in 2006: $11 billion in 37 countries Equity to Loans ratio = 33%
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18. Where do IDA resources come from? Contributions from donor countries (USA, UK, Japan, France, Italy and Canada) Repayments from « graduated » and current IDA borrowers Investment income and IBRD net income
19. IDA Top ten borrowers India Vietnam Bangladesh Pakistan Ethiopia Ghana Tanzania Nigeria Uganda Afghanistan
20. 3. MIGA: Multilateral Investment Guarantee Authority MIGA Is an insurer, not a lender! No export crédit insu rance but Investment insu rance! Guarantee up to 15 years, with minimum of 3 years Eligible sectors: oïl and gas, infrastructure, mining, télécommunications, services, agrobusiness, manufacturing
21. 4 types of guarantees Transfer restrictioncoverage protects against losses arising from an investor's inability to convert local currency (capital, interest, principal, profits, royalties, or other monetary benefits) in to foreign exchange for transfer outside the host country. Expropriation coverage offers protection against loss of the insured investment as a result of acts by the host government that May reduce or eliminate ownership of, control over, or rights to the insured investment. War and civil disturbance coverage protects against loss due to the destruction, disappearance, or physical damage to tangible assets caused by politically motivated acts of war or civil disturbance, including revolution, insurrection, and coups d‘ etat . Terrorism and sabotage are also covered. Breach of contractcoverage protects against losses arising from the host government's breach or repudiation of a contractual agreement with the investor.
22. MIGA’s Guarantees Process Only new investments and new contributions towards the expansion, privatization, or modernization of existing enterprises are eligible. MIGA must obtain approval from the host government to offer a guarantee to the investor. MIGA’s legal department undertakes a range of mediation activities to encourage the amicable settlement of disputes between investors and host countries, to forestall the need for formal international arbitration.
25. Source of funds: member capital, capital markets (80%) and IBRD (20%)
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28. *Empower the development of legal and judicial systems, business opportunities and protection of individual rights. *Benefit from micro credit as well as large corporate undertakings. *Combat corruption. *Promote research and training opportunities.
29. *In the area of privatisation and corporate restructuring, IFC advises at every stage of the process. *IFC undertakes a strategic review and recommends financial and organizational restructuring, assisting in changes of legal status where necessary. *IFC also helps implement sales, orchestrating a competitive bidding process, crafting sales and related contracts, marketing companies to interested investors, and conducting tender evaluation and negotiations.
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32. It is now helping to upgrade rail and road connectivity in Mumbai;
33. improve state high waysin Andhra Pradesh, Himachal Pradesh, Kerala, Orissa , Punjab and Uttar Pradesh
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