Prof. Amna Majeed
Ammar Ali Khan
Muhammad Zohaib NasirL4S12MCOM2074
The world bank is an international organization
dedicated to provide Financing, Advice and
research to developing nations to aid their
It provides loans to the developing countries for
The world bank focuses to reduce the poverty. The
bank’s decision must be guided by a commitment
to promote foreign investment, trade and enhance
the capital investment.
The world bank was created at the end of the World War II.
The world bank is one of the four institutions created at the
Breton Woods conference, in 1944.
Delegates from many countries attended the
conference, the most powerful one is UK and USA
Traditionally the world bank is leaded by a US citizen
The Bank functions as an international organization that
attempts to fight poverty by offering developmental
assistance to middle and poor-income countries.
The bank was providing the loans for the reconstruction
and development of needy countries.
France was the first country to receive loan,
From 1968 to 1980, the bank concentrated on meeting the
basic needs of people in the developing world.
In late 1980’s a report by UNICEF tells that the world bank
were responsible for the "reduced health, nutritional and
educational levels for tens of millions of children in
Asia, Latin America, and Africa".
From 1989 till present World Bank policy changed in
response to criticism from many groups.
First president: Eugene Meyer
Present president: Jim Yong Kim
Managing director: Caroline Anstey, Sri Mulyani
Headquarters: Washington, D.C.
Employees and offices: more than 9,000 employees in
more than 100 offices worldwide
Basically the World Bank comprises of two institutions managed
by 188 member courtiers
International Bank for Reconstruction and Development (IBRD)
International Development Association (IDA)
The World Bank differs from the World Bank group in the sense
that the World bank comprises of only two institutions whereas the
World Bank group incorporates the three other
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
International Centre for Settlement of Investment
To fight poverty with passion and professionalism
for lasting results.
To help people help themselves and their
environment by providing resources, sharing
knowledge, building capacity, and forgoing
partnerships in the public and private sectors.
To be an excellent institution able to
attract, excite, and nurture diverse and committed
staff with exceptional skills who know how to
listen and learn.
There are total of 188 member countries. Some of them
are as follows
The World Bank was established to promote longterm foreign investment loans on reasonable terms.
The, purposes of the Bank, as set forth in the
'Articles of Agreement’ are as follows:
To assist in the reconstruction and
development, restoration and reconversion of
destroyed economies or nations etc.etc.
To promote private investment
To promote the long-range balanced growth of
To arrange the loans made or guaranteed by it in
relation to international loans through other
channels so that the more useful and urgent
projects, large and small alike, will be dealt with
To conduct its operations with due regard to the
effect of international investment on business
conditions in the territories of members
World Bank performs the following functions:
Granting reconstruction loans to war devastated
Providing loans to governments for
agriculture, irrigation, power, transport, water
supply, educations, health, etc.
Providing loans to private concerns for specified
Promoting foreign investment by guaranteeing
loans provided by other organizations.
Providing technical, economic and monetary
advice to member countries for specific project
Encouraging industrial development of
underdeveloped countries by promoting economic
Granting developmental loans to underdeveloped
1. General Progress:
(i) The Bank's membership has increased from the initial number
of 30 countries to 68 countries in 1960 and to 151 countries in
(ii) In 1960, the Bank approved loans worth $ 659 million which
went up to $ 14,762 million in 1988.
2. Lending Operations:
IBRD has granted loans worth $155049 million till june 1988
22% for energy, 21% for agriculture development, 18% for
transportation, 10% for industry and small scale enterprises.
3. Term Loans:
The Bank grants medium and long-term for
reconstruction and development purposes to the
member countries depending upon the estimated
useful life of the equipment or plant financed.
4. Loans for Reconstruction:
In the initial years of its establishment, the World Bank's
loans were mainly directed to the European countries
for financing their programs of reconstruction. The
Bank provided loans worth about $ 5, 00 million for
5. Traditional Development Loans Policy:
The traditional development loan policy of the Bank has
been to help the member nations to strengthen the
foundations of their economies for rapid economic
6. New Loan Strategy:
Recently, however, the Bank has changed its development
loan strategy and lays more emphasis of financing schemes
(i) The amount of agricultural loans has increased
(ii) The bank now also takes interest in the activities of the
development of rural areas
7. Assistance to Underdeveloped Countries:
The following are the main aspects of Bank's assistance to the
(i) Bulk of the Bank's financial assistance has been given to the
underdeveloped countries for the promotion of development.
(ii) Through its 'third window", the Bank has made available loans
to the underdeveloped countries at tower interest rates.
(iii) The Bank organizes meetings of creditor countries for
extending assistance to the developing countries. Aid India Club
is one such example.
(iv) The Bank also provides technical assistance to the developing
countries by making available training facilities through its
In fiscal 2012, the World Bank Group committed
$52.6 billion in loans, grants, equity
investments, and guarantees to its members and to
private businesses. IDA, the Bank’s fund for the
poorest countries, made commitments of $14.8
billion, compared with $16.3 billion in 2011.
Pakistan became a member of the World Bank in 1950
and began borrowing from it in 1952.
The country also started borrowing from IDA since its
inception in 1962. Therefore, the Pakistan-World Bank
relationship spans over half a century.
Pakistan has also remained in the list of the top ten
recipients of WB financing and its economy has
benefited in more ways than meets the eye.
In the 1990’s, the World Bank played a key role in
assisting the establishment of the Hub Power project
The World Bank uses lending and analytical work to
help Pakistan achieve its goals.
The Bank also manages a Multi-Donor Trust Fund of
about $140 million for conflict-affected areas.
Until now World Bank has provided assistance in
many projects carried on in Pakistan.
In nutshell, Today's Bank has sharpened its focus on
poverty reduction as the overarching goal of all its
work. It once had a homogeneous staff of engineers
and financial analysts, based solely in
Washington, D.C. Today, it has a multidisciplinary and
diverse staff including economists, public policy
experts, sect oral experts, and social scientists. 40
percent of staff is now based in country offices.
Reconstruction remains an important part of its work.
However, at today's World Bank, poverty reduction
through an inclusive and sustainable globalization
remains the overarching goal of our work.