MEANING AND FUNCTIONS

1. WORLD BANK
BY
DR. JYOTI KHARE
ASSOCIATE PROFESSOR
GOVT. P. G. COLLEGE
MALDEVTA, RAIPUR
DEHRADUN,

2. WORLD BANK
After IIWORLD BANK-
• the formation of world bank was done BrettonWoods committee that was held in 1944
• TheWorld Bank (WB) was originally created as the International Bank for Reconstruction and Development
(IBRD) in 1944 along with its twin, the IMF.
• In early 1946 this international bank launched its carrier as the multilateral development bank and since then
the IBRD came to be known as theWorld Bank.
• Not a bank , it is a group of two bank- IBRD & IDA
• Now this is group of 5 banks – IBRD, IDA, IFC, MICA, ICSID
• TheWorld Bank's most recent stated goal is the reduction of poverty.
• INDIA is the founder member of world bank
• 1958 – India Club Consortium- help to take the loan from WB .
• 1994 – BHARATVIKAS MANCH

3. BRITTENWOODSTWINS SISTER-
(WORLD BANK & IMF)
Motto Working for aWorld Free of Poverty
Formation July 1944; 75 years ago
Type Monetary International Financial Organization
Legal status Treaty
Headquarters 1818 H Street NW,Washington, D.C., U.S.
Membership 189 countries (IBRD)
173 countries (IDA)
Key people •David Malpass
(President)
•Anshula Kant
(MD and CFO)
•Penny Goldberg
(Chief Economist)
Parent organization World Bank GrouP
Founders: John Maynard Keynes, Harry Dexter White

4. OBJECTIVES
• Infrastructural Build up
• economic development and reconstruction.
• inducing long term capital
• improving the balance of payments(growth of international trade)
• Alleviation of poverty
• Establishment of projects in backward areas
• Helps special area development programmes
• Lends for product purposes thereby stimulating economic growth in developing countries.

5. NEED OF WORLD BANK
(1) Investing in people, particularly through
basic health and education;
(ii) Focusing on social development, gover-
nance and institution-building as the major
elements of poverty alleviation;
(iii) Strengthening the ability of the govern-
ments to deliver quality services with greater
efficiency and i) transparency;
(iv) Protecting the environment;
(v) Supporting and encouraging private
business development and long-term planning.

6. FUNCTIONS OF WORLD BANK
• To assist in the construction and development
• To promote private investment and long run balanced growth
• To arrange loans made or guaranteed by it
• To provide finance to projects from its own capital, funds
• provides advice and expertise
• to generate and disseminate policy relevant knowledge

7. ORGANISATION STRUCTURE
The organizational structure of the World Bank
consists of Board of Governors, Executive Directors
and a president. All the powers of the bank are
entrusted to the Board of Directors. Each member
country has one governor and one alternate governor
and their term is for five years. The Board of
Governors meets once a year. The governors have
delegated their powers to a Board of Executive
Directors in order to carry on the day-to-day functions
of the bank. At present, there are 25 executive
directors.
The president of World Bank is also the chairman of
the Board of Executive Directors.

8. CAPITAL AND IT’S RESOURCES OFW.B
Resources of World Bank
Initially, the World Bank has an
authorized capital of 10 billion US dollars
divided into 1,00,000 shares of 1,00,000
US dollars. Out of this, the member
countries’ subscription was 9400 million
dollars. The United States was the largest
subscriber and India was one of the five
largest subscribers to the bank.
The subscription quota of each
country consisted of three divisions.
•Two percent of the quota was payable
in gold or US dollars which was
available for lending.
•18 percent of the quota was payable
in local currency and was available for
lending with the consent of the
members whose currency was
involved and
•the remaining 18 percent of the
subscription was subject to call, as and
when required by the bank to meet its
obligations.

9. LENDING OPERATIONS OFWORLD BANK
• Lending is of two types:
The first is for developing countries which are able to pay near market interest rates.
Resources for such type of lending are obtained from investors across the world.The
World Bank issues bonds to mobilize such funds.
The second type of lending is to the poorest countries which have no credit worthiness in
the international financial markets.As they will not be in a position to pay near market
interest rates on their borrowings.The World Bank’s affiliate, the International
Development Association (IDA) undertakes Lending to poorest countries.

10. FORMS OF LOANS OFFERED BY WORLD
BANK
The World Bank extends loans to member
countries in the following forms:
•Granting loans out of its own funds.
•By participating in loans out of funds raised in the
market of a member country or otherwise
borrowed by the World Bank.
•Providing guarantee in part or in full for loans
made by private investors through the usual
investment channel.

11. CONDITIONS OF LOANS OFFERED
The World Bank lends on the following terms:
•The World Bank ensures that the borrower is unable to
obtain loans under conditions which the bank considers
reasonable.
•Loans are meant for reconstruction or development except in special
circumstances.
•The Central Bank of the member country guarantees
payment of the principal, interest on loan and other related
charges.
•The competent committee in the World Bank is thoroughly satisfied
with the loan project.
•The borrower is able to meet obligations as imposed by the
World Bank.

12. FACTS ABOUTW.B
• JimYong Kim is currently the president of the world bank.
• Currently, the membership of the world bank is given to 189 countries under IBRD and 173
countries under IDA.
• Organizations like MIGA, IFC, and ICSID manages the World bank
• Also, the world has it’s headquarters situated inWashington DC and has more than 10000
staff all over the world.
• So, the formation of world bank was done Bretton Woods committee that was held in 1944.
• Alongside the IMF, it was launched in the presence of many important delegates.

14. THANKYOU

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