The World bank

• An international
organization
dedicated to
providing
financing, advice
and research to
developing nations
to aid their
economic
advancement.
What is the World Bank?

President :-
Membership:-
Affiliates :-
Headquarters
:-
David Malpass
189 countries
IBRD, IDA, IFC, MIGA, ICSID
Motto :- Working for a World Free of Poverty
Washington, DC, US
Introduction

 The World Bank was created at the end of World War II as a result
of many European and Asian countries needing financing to fund
reconstruction efforts.
 The Bank is successful in providing financing for these devastated
(destroyed) countries
 The International Bank for Reconstruction and Development was the
first “Multilateral Development Bank. "Before World War II had
ended.
 Harry Dexter White and John Maynard Keynes conceptualized an
international institution to stabilize exchange rates and provide a
source of financing for reconstruction and development among
countries ravaged by the war.
Why it came into existence?

 The Bretton Woods Conference was held from the 1st to 22nd of
July, 1944 .
 Contained 730 delegates from all 44 Allied nations in Bretton Woods
 To regulate the international monetary and financial order after the
conclusion of World War II.
 Created two major institutions:
– World bank : (long term loan for distressed economy and
member countries )
– IMF : (grants the short term loans to develop the cyclical
disturbance in economy.)
Bretton Woods Conference

Eradicate extreme poverty and hunger
Achieve universal and primary education
Promote gender equality
Reduce child morality
Improve maternal health
Combat HIV / AIDS, Malaria and other diseases
Goals of World Bank

 Financial assistance
 Technical assistance
 Inter organizational
cooperation Training
 Research and Studies
 Evaluation of projects
 Settlement of investment
disputes
Key Activities

World Bank
Group
International
Bank for
Reconstructio
n and
Development
IBRD
International
Development
Association
IDA
International
Finance
Corporation
IFC
Multilateral
Investment
Guarantee
Agency
MIGA
International
Center for
Settlement of
Investment
Disputes
ICSID
World bank Group

IFC
International Finance Corporation(IFC) a private sector arm owned by the bank’s 179
member countries, market rate loans and equity investments in developing lands.
Objective:-
 To serve as a clearing house to bring together investment opportunities, private capital
(both foreign and domestic) and experienced management
 To help in stimulating the productive investment of private capital, both
domestic and foreign
Functions:-
 Seeks to bring together investment opportunities, private capital of both foreign and
domestic origin, and experienced management
 Stimulates conditions conducive to the flow of private capital, domestic and
foreign, into productive investments in member-countries.

MIGA
Multilateral Investment Guarantee Agency(MIGA) works with
other bank units to develop foreign direct investment in high
risk countries.
Objective:-
 To promote flow of direct foreign investment into less
developed member nations
 To insurance cover investors against political hazards

ICSID
International Center for the Settlement of Investment Disputes(ICSID) is an
autonomous unit to settle disputes between governments and private
investment.
Objective:-
 To provide long run capital to member countries for economic
reconstruction and development
 To induce long-run capital investment for assuring balance of payments equilibrium and balanced
development of international trade
Functions:-
 Adopt ICSID rules on arbitration and conciliation proceedings Adopt annual
budget & annual report
 Determine conditions of service of Secretary General
and Deputy Secretary- General

IBRD
International Bank for Reconstruction and Development(IBRD) lends to countries
with good credit, funding itself by raising cash in credit markets.
Objective:-
 Investing in people, particularly through basic health and education
 Focusing on social development, governance and institution-building as
the major elements of poverty alleviation
Functions:-
 The Bank provides various technical services to the member countries. For this purpose, the Bank
has established “The Economic Development Institute” and a Staff College in Washington
 Bank grants loans for a particular project duly submitted to the Bank by
the member country.

IDA
International Development Association(IDA) lends $6 billion or more a year to poorest
countries, half in Africa, in interest free loans with repayment periods up to 40 years.
Objective:-
 To provide development finance on easy terms to less developed member
countries
 To promote economic development, increase productivity and thus, raise the standards of
living in the underdeveloped areas
Functions:-
 The IDA extends assistance to high priority projects in the
member-countries
 Advances to private enterprises many be made
without government guarantee

 The original members of the Bank shall be those
members of the International Monetary Fund which
accept membership in the Bank before the date specified
in Article XI, Section 2 (e).
 Membership shall be open to other members of the Fund,
at such times and in accordance with such terms as may
be prescribed by the Bank
Procedures to be a member

 Member countries govern the World Bank Group
through the Boards of Governors and the Boards of
Executive Directors. These bodies make all major
decisions for the organizations.
 There are 189 members of the World Bank including
United Kingdom, United States, People's Republic of
China, Germany and Bangladesh etc.
Member Countries

 Andorra
 Cuba
 Liechtenstein
 Monaco
 North Korea
 Vatican City
 State of Palestine
 Republic of Kosovo
Non-Member States

 The 4 Largest Countries by voting power :-
 United states
 Japan
 China
 Germany
Voting Power

 Granting reconstruction loans to war devastated countries.
 Granting developmental loans to underdeveloped 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.
 Providing technical, economic and monetary advice to member
countries for specific project.
 Encouraging industrial development of underdeveloped countries
by promoting economic reforms
Functions

Purpose of World Bank
 Rebuilding of European Countries devastated by World war
II
 Ending Extreme Poverty
 Building Shared Prosperity
 Focusing middle and low income countries for
the purpose of financial growth

 Focusing on Reconstruction of Economic Development and
Poverty
 Offering Loans, Grants and Financial Products
 Promoting Financial Growth
 Providing Finance, Advise and Research
 Helping Countries reducing Property and Making people’s live
better
Contribution

 IBRD lending to developing
countries is financed by selling
AAA-rated bonds.
 IDAis the world’s largest source of
interest free loans and grant assistance
to thepoorest countries.
Fund Generation

 The International Development Association (IDA) has supported Bangladesh since 1972,
From 1972 IDA has provided more than $16 billion in support for policy reforms and
projects. Key elements of that support have been the Bank’s long-term commitment to
health and education, rural infrastructure, and its engagement in policy dialogues that have
created conditions for broad-based economic growth.
 Bangladesh improving infrastructure as well as the business climate would
allow new productive sectors to develop and generate jobs which is help to
maintain sustained economic growth.
Bangladesh and The World Bank

 General Progress
 Lending Operations
 Term Loans
 Loans for Reconstruction
 Traditional Development Loans Policy
 New Loan Strategy
Achievements
 Assistance to Underdevelopment country

Criticism
 “Conditions” imposed on Borrower Countries
 Types of Development Project
Funded Role in the Global climate change finance architecture
 World Bank working in partnership with the private sector
 Role of the Bretton Woods Institutions
 Governance Structures

World bank serves as a store of
expert knowledge and wisdom for
countries throughout the world
that lack trained specialists. While
world bank has not met the lofty
goals of it's founders, it should
continue to play a small but
important role in promoting
prosperity and economic stability
worldwide.
Conclusion

The World bank

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