WORLD BANKING OPERATION

1. World Bank Group
Working for a world
free of poverty

2. 4/18/2023 2
AGENDA
 Global Development Context
 Bank Origins
 Organizational Structure
 Evolving Paradigm
 Development Projects
 Online Resources

3. 4/18/2023 3
Global Development
Context

4. 4/18/2023 4
The Development Challenge
Poorest fifth: 3 % of world expenditures
Richest fifth: 75% of world expenditures
Developed countries spend:
$ 786 billion a year on military expenditures (2004)
$ 283 billion a year on agricultural subsidies (2005)
$ 106 billion in aid to developing countries (2005)
Population growth over the next 25 years
50 million in rich countries
1.5 billion in poor countries
Half of the population is under 25

5. 4/18/2023 5
Millennium Development Goals
Goal 1: Wipe out extreme
poverty and hunger
Goal 2: Get all children a
primary school
education
Goal 3: Help women get equal
rights and empower them.
Goal 4: Reduce death rate of young children
Goal 5: Improve the health of mothers
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Help countries protect their environments.
Goal 8: Promote a global partnership for
development

6. 4/18/2023 6
The world is on track globally to
meet the Poverty Reduction Goal
Goal 1- Eradicate Poverty
Population living on less than $1 a day
10
15
20
25
30
1990 1995 2000 2005 2010 2015
Actual path
Goal
%
The Good News…

7. 4/18/2023 7
Goal 1- Sub-Saharan Africa
Population living on less than $1 a day
20
30
40
50
60
1990 1995 2000 2005 2010 2015
History + Forecast
Goal
%
Some regions of the world may be left
behind
The Bad News …

8. 4/18/2023 8
Origins and Background

9. 4/18/2023 9
The World Bank
 International Bank
for Reconstruction
and Development
established
July 1944, Bretton
Woods.
 Mission?
To rebuild Europe
and Japan after
World War II.

10. 4/18/2023 10
World Bank Early Borrowers
 France first to borrow
$250 million to finance
post-war reconstruction
in 1947.
 Many current donor
nations such as Austria,
Australia, Denmark,
Italy, Korea, and Greece
were borrowers.

11. 4/18/2023 11
ORGANIZATIONAL
STRUCTURE

12. 4/18/2023 12
Bank’s Agencies
International Bank
for Reconstruction
and Development
International
Development
Association
International
Finance
Corporation
Mutilateral
Investment
Guarantee Agency
International Center
for the Settlement of
Investment Disputes
World Bank Group
1945 1988
1956
1960 1966

13. 4/18/2023 13
Where does the
money come from?
 IBRD raises funds on capital markets
(rate lower than commercial banks).
 Donors give money to IDA for the
world’s poorest countries, with
additional money coming from IBRD
profits and repayments.

14. 4/18/2023 14
 Established in 1960, IDA has 165
members countries of whom 82 recipients
which are the world’s poorest countries.
 Since inception in 1960, IDA credits and grants
have totaled $161 billion.
IDA14 provides $33 billion over 3 years
(FY2006-2008).
 Africa’s share of IDA 14 is 50%.
IDA: A fund for the poorest
countries

15. 4/18/2023 15
How the World Bank Operates
 185 Member
Countries appoint
their Governors
 Governors delegate
specific duties to 24
Executive Directors
 President of the
World Bank reports
to the Board of
Executive Directors
Office of the
President
Executive
Directors
Board of Governors

16. 4/18/2023 16
Voting Powers of
Executive Directors for IBRD
World Bank Shareholders
United States
16%
Japan
8%
Germany
4%
Russian
Federation
3%
Saudi Arabia
3%
China
3%
United Kingdom
4%
Rest of the World
55% France
4%

17. 4/18/2023 17
Organizational Structure
Board
Executive
Directors
President
Inspection
Panel
Independent
Evaluation
Jeffrey Gutman
Vice President &
Network Head
Oper. Policy &
Country Serv.
External Affairs
Sr. Vice President
Marwan Muasher
Graeme Wheeler
Managing
Director
Juan Jose
Daboub
Managing
Director
Ngozi
Okonjo-Iweala
Managing
Director
W. Paatii
Ofosu-Amaah
Vice President
& Corporate
Secretary
Vincenzo La Via
WBG Chief
Financial Officer
Ana Palacio
Sr. Vice President
& WBG General
Counsel
Alan Gelb
Acting Sr. Vice
President
& Chief Economist
Institutional
Integrity
Internal
Auditing

18. 4/18/2023 18
Where Does the Bank Work Today?

19. 4/18/2023 19
Bank’s Networks
 Human Development
 Poverty Reduction and Economic
Management
 Sustainable Development
 Financial and Private Sector
Development
 Operations Policy & Country Services

20. 4/18/2023 20
World Bank Staff
 Total Bank staff
numbers about
10,000. 7,000 at HQ
and 3,000 in the field.
 170 nationalities
 Developing country
nationals represent
55% of total staff.

21. 4/18/2023 21
EVOLVING DEVELOPMENT
PARADIGM

22. 4/18/2023 22
 1950s (Europe Reconstruction) Physical
 1960s (Rural) Natural
 1970s (Human Development) Human
 1980s (Economic Reform) Financial
 1990s (Poverty Reduction) Social
 2000s (Governance) Institutional
 2007 Sustainable and Inclusive Globalization
Evolving Development
Paradigm

23. 4/18/2023 23
Comprehensive Development Framework
 Multi-Sectoral
 Focus on Poverty Reduction
 Country Ownership
 Beyond Governments
 Partnering with other Organizations
A New Approach to
Development

24. 4/18/2023 24
Today: Six Strategic Themes
1. Poverty and Sustainable Growth
 Especially in Africa
 IDA: core financing instrument for the 81
poorest countries
2. Post-Conflict States
3. Diversify menu of development
solutions for Middle-income
Countries

25. 4/18/2023 25
4. Active role in regional and global
public goods
 Close cooperation with other agencies – WHO,
UNEP, UNODC, WTO
5. Support advance development and
opportunities in the middle east
region
6. Bank as a “brain trust” of applied
experience

26. 4/18/2023 26
 Information Disclosure (Public Information Centers)
 Compliance Mechanisms (Inspection Panel)
 Debt Relief
 HIPC (26 countries / US$41 billion)
 MDRI (19 countries / US$40 billion)
 Environmental & Social Safeguard
 Poverty Reduction Strategies (PRSP)
 WB / IMF joint commitment
 60 countries
 Community Driven Development (10% portfolio)
 Empowerment Agenda (social accountability, civic
engagement)
New Approaches and
Instruments

27. 4/18/2023 27
Bank’s Main Products
 Investment Loans/Credits
 Development Policy Lending
Loans/Credits
 Guarantees
 Other (Non-lending) Products

28. 4/18/2023 28
DEVELOPMENT
PROJECTS

29. 4/18/2023 29
What Does the World Bank
Do Today?
 In fiscal 2007, $34.3 billion in loans,
grants, equity investments and
guarantees to over 100 developing
countries.
 Focus: Poverty Reduction
 Africa is priority of World Bank.

30. 4/18/2023 30
Largest IBRD/IDA Borrowers FY07
Commitments
Borrower $ Millions % of Total
India 3,751 15.2
Argentina 1,749 7.1
China 1,641 6.6
Indonesia 1,159 4.7
Turkey 1,158 4.7
Colombia 1,102 4.5
Pakistan 985 4.0
Nigeria 750 3.0
Vietnam 712 2.9
Africa Regional
Projects
707 2.9
Total 13,714 55.5

31. 4/18/2023 31
2007 Lending by Region
Europe and Central
Asia
15%
Latin America and
the Caribbean
18%
Middle East and
North Africa
4%
South Asia
23%
Africa
24%
East Asia and
Pacific
16%

32. 4/18/2023 32
IBRD/IDA Lending by Sector
Fiscal 2007
Agriculture
7%
Transportation
20%
Education
8%
Energy & Mining
7%
Finance
7%
Law & Justice
& Public
Administration
22%
Water, Sanitation, &
Flood Protection
12%
Health & Social
Services
11%
Information &
Communication
1%
Industry & Trade
5%

33. 4/18/2023 33
Project Cycle
Bank
Bank
Bank
Borrower
Bank Board
Bank/Borrower
Bank/Borrower

34. 4/18/2023 34
Thank you!
The World Bank Group
www.worldbank.org
We also have a site for youth:
www.youthink.worldbank.org

35. 4/18/2023 35
Online Resources

36. 4/18/2023 36
About the Bank
 Members of the World Bank Group
 Organization: structure, Board of Governors,
Executive Directors, Articles of Agreement
and much more…
 Partners
 History and Archives

37. 4/18/2023 37
About Us
 Members of the World Bank Group
 Organization: structure, Board of Governors,
Executive Directors, Articles of Agreement
and much more…
 Partners
 History and Archives

38. 4/18/2023 38
IBRD
 185 member countries
 Lends to middle income countries
 Funds mainly from borrowing on capital markets
 Repayment over 15–20 years/3 to 5-year grace
period
 Sells bonds in international capital markets
www.worldbank.org/ibrd

39. 4/18/2023 39
IDA
 165 member countries
 Lends to poorest countries
 Funded largely from wealthier government
contributions, with additional funds from IBRD
profits and repayments of earlier IDA credits
 Credits carry no interest
 Repayment over 35–40 years/10-year grace period
www.worldbank.org/ida

40. 4/18/2023 40
 178 member countries
 Private sector
 Works to develop capital markets; lends and takes
equity positions; provides advisory services for
privatization, project development and structuring
 Loans carry market interest rates
 Catalyst to other investors in the private sector
 Sells bonds in international capital markets
www.ifc.org
IFC

41. 4/18/2023 41
MIGA
 171 member countries
 Promotes foreign direct investment into emerging
economies to support economic growth, reduce
poverty, and improve people’s lives
 Offers political risk insurance (guarantees) to
investors and lenders, covering risks including
expropriation, breach of contract, currency transfer
restriction, and war and civil disturbance
 Disseminates information on investment opportunities
www.miga.org

42. 4/18/2023 42
Documents and Reports, and
Operations
 Operations: country aggregate reports, strategies, policies
and procedures, procurement, list of debarred firms, etc.
 Projects: data on World Bank lending projects from
1947 to present.
 Documents and Reports: over 14,000 World Bank full-text
documents

43. 4/18/2023 43
Data and Statistics
 Online databases
 Data for Journalists (they can also join the Online Media
Briefing Center)
 Reference Tables
 Doing Business - provides objective measures of business
regulations and their enforcement across 178 countries
 Private Participation database - information on infrastructure
projects with private investment in energy,
telecommunications, transport, and water/sewerage sectors.
 Governance
 Indicators of Governance and Institutional capacity

44. 4/18/2023 44
Research and Development
 Data and Research - also contains abstracts
of current studies
 Topics in Development - provides sources of
information on development topics.

45. 4/18/2023 45
World Bank Institute
 Information on training courses, publications,
Global Distance Learning Network, B-Span
http://www.worldbank.org/wbi

46. 4/18/2023 46
News, Events, Newsletters,
Publications
 News and Events
 Newsletters and Subscriptions
 World Bank Publications

47. 4/18/2023 47
Resources for the Private Sector
 Business Center
 Provides a guide to a range of
business and investment
opportunities
 UN Development Business
(subscriptions) on opportunities to supply
goods, works and services for projects
financed by the United Nations,
governments and the world's leading
development banks

48. 4/18/2023 48
Global Development Gateway
 Information on development worldwide from main
organizations http://www.developmentgateway.org/

49. 4/18/2023 49
Development Marketplace
 A competitive grant program
administered by the World Bank and
supported by various partners that
identifies and funds innovative, early-
stage projects with high potential for
development impact.

50. 4/18/2023 50
Other Useful Resources
 Civil Society
 Client Governments
 Investors
 Job Seekers
 Journalists
 Parliamentarians

51. 4/18/2023 51
The World Bank Group
www.worldbank.org