World Bank is an international
financial institution that provides loans
to developing countries for capital
Overview of the world bank
World Bank was originally established to
support reconstruction in Europe after World War
On July 1, 2012, Jim Yong Kim became the 12th president
of the World Bank Group.
Washington, DC and more than 100
offices around the world.
July 1, 1944 by a conference of 44 governments in
Bretton Woods, New Hampshire, USA
Membership: 188 countries
Staff: Approximately 7,000 employees in Washington,DC
and over 3,000 in offices around the world.
IS ONE OF THE WORLD’S
LARGEST SOURCES OF
FUNDING FOR THE
Its primary focus is on
helping the poorest
people and the
It uses its financial
resources, its staff,
experience to help
growth, improve their
quality of life.
Promotion of investment.
Promotion of long range balanced growth of
Arranging the loans through other channels
THE WORLD BANK GROUP HAS SET TWO GOALS
FOR THE WORLD TO ACHIEVE BY 2030
The World Bank Group has set two goals for the
world to achieve by 2030:
End extreme poverty by decreasing the percentage
of people living on less than $1.25 a day to no more
Promote shared prosperity by fostering the income
growth of the bottom 40% for every country
Centre for the
THE WORLD BANK GROUP
1. International Bank for Reconstruction and Development (IBRD)
Founded: 1944 Members: 176
―Aims to reduce poverty in middle-income and creditworthy poorer
countries by promoting sustainable development through loans,
guarantees, risk management products, and analytical and advisory
2. International Development Association (IDA)
Founded: 1960 Members: 185
The International Development Association (IDA)
provides interest-free loans—called credits— and grants
to governments of the poorest countries.
THE INTERNATIONAL FINANCE CORPORATION (IFC),
MEMBERS: 185TWEEN GOER
THE INTERNATIONAL FINANCE CORPORATION (IFC), A MEMBER OF
THE WORLD BANK GROUP, IS THE LARGEST GLOBAL
DEVELOPMENT INSTITUTION FOCUSED EXCLUSIVELY ON THE
PRIVATE SECTOR. WE HELP DEVELOPING COUNTRIES ACHIEVE
SUSTAINABLE GROWTH BY FINANCING INVESTMENT, MOBILIZING
CAPITAL IN INTERNATIONAL FINANCIAL MARKETS, AND PROVIDING
ADVISORY SERVICES TO BUSINESSES AND GOVERNMENTS
4. Multilateral Investment Guarantee Agency (MIGA)
Founded: 1988 Members: 101
The Multilateral Investment Guarantee Agency (MIGA) was created in
1988 as a member of the World Bank Group
Promote foreign direct investment into developing countries
To support economic growth, reduce poverty, and improve people’s
5. The International Centre for Settlement of Investment
The International Centre for Settlement of Investment Disputes (ICSID)
provides international facilities for conciliation and arbitration of investment
The organizations that make up the World Bank Group are
owned by the governments of member nations
They have the ultimate decision-making power within the
organizations on all matters, including policy, financial or
Member countries govern the World Bank Group through
the Boards of Governors and the Boards of Executive
These bodies make all major decisions for the organizations.
HOW TO BECOME MEMBER OF WB
To become a member of the Bank, under the IBRD
Articles of Agreement, a country must first join the
International Monetary Fund (IMF).
Membership in IDA, IFC and MIGA are conditional on
membership in IBRD.
In tandem with the IMF, and in consultation with other
World Bank Group staff, the Corporate Secretariat Vice
Presidency coordinates the process for new
membership and maintains the information relating to
the status of membership which includes the
WHO GOVERNS THE WORLD
Executive Board (16)
Board of Governors
- USA: 16.68%
- UK and France:4.38%
BOARDS OF GOVERNORS
The Boards of Governors consist of one Governor and one
Alternate Governor appointed by each member country.
The office is usually held by the country's minister of finance,
governor of its central bank, or a senior official of similar rank.
The Governors and Alternates serve for terms of five years and
can be reappointed.
If the country is a member of the Bank and is also a member of
the International Finance Corporation (IFC) or the International
Development Association (IDA), then the appointed Governor
and his or her alternate serve ex-officio as the Governor and
Alternate on the IFC and IDA Boards of Governors.
They also serve as representatives of their country on the
Administrative Council of the International Center for Settlement
of Investment Disputes (ICSID) unless otherwise noted.
Multilateral Investment Guarantee Agency (MIGA) Governors
and Alternates are appointed separately.
ROLE OF BOARD OF
All powers of the Bank are vested in the Boards of
Governors, it is the Bank's senior decision-making body
The Boards of Governors has delegated all powers to the
Executive Directors except those mentioned in the
Articles of Agreement. These powers include:
Admit and suspend members
Increase or decrease the authorized capital stock
Determine the distribution of the net income of the Bank
Make formal comprehensive arrangements to cooperate
with other international organizations
Suspend permanently the operations of the Bank
Approve amendments to the Articles of Agreement.
WHO PAYS FOR THE WORLD
(5%) IBRD - paid-in capital subscription(USA: 16.98%)
AAA rated bonds & debt securities
(25%) IDA – concessional loans – periodic replenishments
USA – 20.86%, Japan – 18.7%, UK & France – 7.3%
Tail has been used to shake the dog:
- 1970s :- forced not to lend to Vietnam
- 1993 :- Inspection Panel
THE WORLD BANK AND ON WHAT
member country can propose a loan
Staffs carefully prepare the proposal
A detailed proposal goes to the Board
A simple majority of votes. No one country can veto
Apparently, all decisions are taken on technical and
economic grounds with no potential political
The World Bank is active in the
Agriculture and Rural Development
Conflict and Development
Development Operations and
Health, Nutrition and Population
International Economics and Trade
Labor and Social Protections
Law and Justice
Macroeconomic and Economic
Public Sector Governance
Water Supply and Sanitation
THE WORLD BANK GROUP IS:
The world’s largest funder of education
The world’s largest external funder of the fight
A leader in the fight against corruption worldwide
A strong supporter of debt relief
The largest international financier of biodiversity
The largest international financier of water supply
and sanitation projects
SIMILARITIES BETWEEN IMF & WB
The Bank and the IMF are twin intergovernmental pillars supporting
the structure of the world's economic and financial order
Both are in a sense owned and directed by the governments of
Both institutions concern themselves with economic issues and
concentrate their efforts on broadening and strengthening the
economies of their member nations.
Staff members of both the Bank and IMF often appear at
Share a common library and other facilities, regularly exchange
economic data, sometimes present joint seminars, daily hold
informal meetings, and occasionally send out joint missions to
DISTINCTION BETWEEN IMF & WB
World Bank is primarily a development institution
IMF is a cooperative institution that seeks to maintain an
orderly system of payments and receipts between
Receives its funding from different sources
Assists different categories of members, and strives to
achieve distinct goals through methods peculiar to itself
A distinct size & structure
MILLENNIUM DEVELOPMENT GOALS
Targets and Goals set for 2015
Reducing Poverty and Hunger—global poverty is
projected to fall to 12 percent
Educating All Children—ensure that all children
complete primary education.
Empowering Women—eliminate gender disparity in
primary and secondary education.
Saving Children—reduce the under 5 mortality rate.
www.web.worldbank.org ―Millennium Development Goals‖
MILLENNIUM DEVELOPMENT GOALS
Caring for Mothers—reduce the maternal mortality rate.
Combating Diseases—such as AIDS/HIV,
Tuberculosis, malaria, and other major diseases.
Using Resources Wisely—improvements in slum
dwellings, create sustainable access to drinking
water, and sustainable access to basic sanitation.
Working Together—make available technological
advancements in information and communication.
Allow affordable access to essential drugs in developing
countries. Address the particular need of developing
www.web.worldbank.org ―Millennium Development Goals‖
POVERTY REDUCTION STRATEGIES
Forty-five countries pledged US$25.1 billion in "aid
for the world's poorest countries―
The World Bank International Development
Association (IDA) which distributes the loans to
eighty poorer countries.
Climate change Report 2012: Even with the current
mitigation commitments and pledges fully
implemented, there is roughly a 20 percent
likelihood of exceeding 4°C by 2100.
Report 2013: The World Bank doubled its aid for
climate change adaptation from $2.3bn (£1.47bn) in
2011 to $4.6bn in 2012. The planet is now 0.8 ºC
warmer than in pre-industrial times. 2ºC warming is
reached in 20 to 30 years.
NATIONAL AIDS CONTROL SUPPORT
The government of India and the World Bank
signed a $255 million credit agreement to support
the National AIDS Control Support Project to help
accelerate AIDS prevention programs by targeting
vulnerable groups at high risk of infection.
So far the World Bank has provided a total of $525
million under the last three projects.
INDIA LOW-INCOME HOUSING FINANCE
The development objective of the Low Income
Housing Finance Project for India is to provide
access to sustainable housing finance for low
Approval Date (as of board presentation)-:May 14,
Closing Date-:December 31, 2018
Total Project Cost-:US$ 100.00 million
INDIA: SECONDARY EDUCATION PROJECT
The development objective of the Secondary
Education Project for India is to achieve increased
and more equitable access to good quality
secondary education through support of the
Government's ongoing program for secondary
education as delineated in the Rashtriya
Madhyamik Shiksha Abhiyan (RMSA) framework.
Approval Date-: March 22, 2012
Closing Date-: June30, 2017
Total Project Cost -:US$ 12896.00 million
NATIONAL DAIRY SUPPORT PROJECT
The National Dairy Support Project for India is to
increase the productivity of milch animals and
improve market access of milk producers.
Approval Date -:March 15, 2012
Total Project Cost-:US$ 453.90 million
NATIONAL RURAL LIVELIHOODS PROJECT
The National Rural Livelihoods Project is to
establish efficient and effective institutional
platforms of the rural poor that enables them to
increase household income through sustainable
livelihood enhancements and improved access to
financial and selected public services.
Approval Date -:July 5, 2011
Total Project Cost-:US$ 1171.00 million
NATIONAL GANGA RIVER BASIN PROJECT
The objectives of the National Ganga River Basin
Project for India are to support the National Ganga
River Basin Authority (NGRBA) to manage the longterm Ganga clean-up and conservation program.
Approval Date -: May 31, 2011
Total Project Cost-: US$ 1556.00 million