The World Bank is an international financial institution that provides financial and technical assistance to developing countries for development programs (e.g. bridges, roads, schools, etc.) with the stated goal of reducing poverty.
Major institutions created as a result of the Bretton Woods Conference in 27th December, 1944 Two main countries which shaped the negotiations were United States and Britain
Provide assistance to developing and transition countries Promote the economic development of the worlds poorer countries Finance the poorest developing countries whose per capita GNP is less than $865 a year special financial assistance through the International Development Association (IDA)
Build capacity Infrastructure creation Development of Financial Systems Combating corruption Research, Consultancy and Training
Investment loans: Support of economic and social development projects Development policy loans: Quick disbursing finance to support countries
International Bank for Reconstruction and Development (IBRD) :186 member countries International Development Association (IDA): 168 members countries
Focus on three priority areas: Safety net programs Global recession and the food Fuel and financial crisesFor this: $8.3 billion to mitigate the crisis impact in poor countries, over and above previous commitments to the institution
Trade flows Bolster distressed banking systems Keep infrastructure projects on track Shift advisory support services Support microfinance institutions
Onchocerciasis Control Program (OCP)Successfully halted transmission of river blindness in 11 countries with acollective population of 35 million.Consultative Group for International Agricultural Research(CGIAR)Created and promoted crop improvements in developing countries over thelast 30 years through a network of research centers.Global Environment Facility (GEF)Provides grants to developing countries to fund projects that benefit theglobal environment and promote sustainable livelihoods in localcommunities.Consultative Group to Assist the Poorest (CGAP)Expands access by the poor in developing counctries to microfinancethrough a consortium of 28 public and private development agencies.Financial Sector Reform and Strengthening Initiative (FIRST)Provides flexible, practical assistance to developing countries to strengthentheir financial systems and adopt international financial standards.
Global Water Partnership (GWP)Supports countries in the sustainable management of their waterresources.Global Alliance for Vaccines and Immunization (GAVI)Seeks to protect public health worldwide through the widespread use ofvaccines.The Carbon FundWorks to develop viable, flexible market mechanisms to reducegreenhouse gas emissions under the Kyoto Protocol.Roll Back MalariaCoordinates the international fight against malaria, which kills morethan 1 million people a year, most of them children in Africa.Joint United Nations Programme on HIV/AIDS (UNAIDS)Advocates for global action on the HIV/AIDS epidemic and works withcivil society, the business community and the private sector.Education for AllFocuses attention on education and strives to ensure an education forevery citizen in every society
Focuses on: • Fast-track the development • Support seven poorest states Total proposed lending program of US$14 billion, for the next three years Strategy is aligned with Government of India’s own development priorities
Agriculture Infrastructure: • Power • Transport • Water • Urban development Skills
Components Amount Loan Terms (US $ Million)Rail 305 IBRD Loan repayable over 20 years with 5 year grace periodRoad 150 IBRD Loan repayable over 20 years with 5 year grace periodResettlement 79 IDA Credit - an interest-free loan repayable over 35 years with a 10- year grace periodTotal From World Bank 542 Channelled through the Government of IndiaGovt. of India and Govt. 403MaharashtraTotal Cost of Project 945
The low cost and stable financing it provides with longer maturity periods Financing through the International Development Association (IDA) Interest rate: 0.75% p.a. Repayable over a period of 35 years Inclusive of a 10 year grace period Government estimates investment of $475 billion
WB financed FY08: US$ 2.7 billionWorld Bank group had 60 active projects in the country