World bank


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World bank

  1. 1. Presented To Prof. Amna Majeed Presented By Najeeb Ullah L4S12MCOM2057 Sana Shafique L4S12MCOM2061 Mehwish Butt L4S12MCOM2062 Ammar Ali Khan L4S12MCOM2066 Muhammad Zohaib NasirL4S12MCOM2074
  2. 2.  The world bank is an international organization dedicated to provide Financing, Advice and research to developing nations to aid their economic advancements  It provides loans to the developing countries for capital advancement.  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.
  3. 3.  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.
  4. 4.  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.
  5. 5.  First president: Eugene Meyer  Present president: Jim Yong Kim  Managing director: Caroline Anstey, Sri Mulyani Indrawati  Headquarters: Washington, D.C.  Employees and offices: more than 9,000 employees in more than 100 offices worldwide
  6. 6. 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 Disputes (ICSID)
  7. 7. Board of Governors DirectorGeneral Executive Directors Chairperson President Managing Director Vice President
  8. 8.  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.
  9. 9. There are total of 188 member countries. Some of them are as follows
  10. 10. 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
  11. 11.  To promote the long-range balanced growth of international trade  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 first.  To conduct its operations with due regard to the effect of international investment on business conditions in the territories of members
  12. 12. World Bank performs the following functions:  Granting reconstruction loans to war devastated countries.  Providing loans to governments for agriculture, irrigation, power, transport, water supply, educations, health, etc.  Providing loans to private concerns for specified projects.  Promoting foreign investment by guaranteeing loans provided by other organizations.
  13. 13.  Providing technical, economic and monetary advice to member countries for specific project  Encouraging industrial development of underdeveloped countries by promoting economic reforms.  Granting developmental loans to underdeveloped countries.
  14. 14. 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 1988. (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.
  15. 15. 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 reconstruction purposes.
  16. 16. 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 development. 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
  17. 17. 7. Assistance to Underdeveloped Countries: The following are the main aspects of Bank's assistance to the underdeveloped countries (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 various institutions.
  18. 18.  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.
  19. 19.  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.
  20. 20.  In the 1990’s, the World Bank played a key role in assisting the establishment of the Hub Power project in Pakistan.  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.
  21. 21. 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.