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World bank


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World bank

  1. 1. WORLD BANK
  2. 2.  The World Bank is an international financial institution that provides loans to developing countries for capital programs.
  3. 3. Overview of the world bank  The World Bank was originally established to support reconstruction in Europe after World War II.  On July 1, 2012, Jim Yong Kim became the 12th president of the World Bank Group.
  4. 4. WORLD BANK  Headquarters: Washington, DC and more than 100 offices around the world.  Established: 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.
  5. 5. IS ONE OF THE WORLD’S LARGEST SOURCES OF FUNDING FOR THE DEVELOPING WORLD SPECIAL FEATURES OF WORLD BANK Its primary focus is on helping the poorest people and the poorest countries It uses its financial resources, its staff, and extensive experience to help developing countries, reduce poverty, increase economic growth, improve their quality of life.
  6. 6. FUNCTIONS  Reconstruction and development.  Promotion of investment.  Promotion of long range balanced growth of international trade.  Arranging the loans through other channels for priority.
  7. 7. 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 than 3%  Promote shared prosperity by fostering the income growth of the bottom 40% for every country 
  8. 8. IBRD The International Bank for Reconstruction & Development (1945) IDA The International Development Association (1960) IFC The International Finance Corporation (1956) M.I.G.A The Multilateral Investment Guarantee Agency (1988) ICSID The International Centre for the Settlement of Investment Disputes (1966)
  9. 9. 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 services‖   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. reign investors
  11. 11. CONTD. 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 lives.  5. The International Centre for Settlement of Investment Disputes (ICSID)  The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes
  12. 12. MEMBER COUNTRIES     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 membership issues. 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.
  13. 13. 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 membership lists.
  14. 14. o o o o WHO GOVERNS THE WORLD BANK? Executive Board (16) Board of Governors President Unequal representation - USA: 16.68% - Japan:8% - Germany:4.5% - UK and France:4.38% 14
  15. 15. 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.
  16. 16. ROLE OF BOARD OF GOVERNERS         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.
  17. 17. WHO PAYS FOR THE WORLD BANK?  (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   17
  18. 18. THE WORLD BANK AND ON WHAT CONDITIONS?  Any 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 a loan  Apparently, all decisions are taken on technical and economic grounds with no potential political influence. 18
  20. 20. ACTIVE AREAS The World Bank is active in the following areas:     Agriculture and Rural Development  Conflict and Development  Development Operations and Activities   Economic Policy   Education   Energy  Environment  Financial Sector   Gender   Governance   Health, Nutrition and Population  Industry         International Economics and Trade Labor and Social Protections Law and Justice Macroeconomic and Economic Growth Mining Poverty Reduction Poverty Private Sector Public Sector Governance Rural Development Social Development Social Protection Trade Transport Urban Development Water Resources Water Supply and Sanitation
  21. 21. THE WORLD BANK GROUP IS: The world’s largest funder of education  The world’s largest external funder of the fight against HIV/AIDS  A leader in the fight against corruption worldwide  A strong supporter of debt relief  The largest international financier of biodiversity projects  The largest international financier of water supply and sanitation projects 
  22. 22. 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 member nations. 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 international conferences, 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 member countries.
  23. 23. 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 nations.  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 
  24. 24. MILLENNIUM DEVELOPMENT GOALS Targets and Goals set for 2015 1. Reducing Poverty and Hunger—global poverty is projected to fall to 12 percent 2. Educating All Children—ensure that all children complete primary education. 3. Empowering Women—eliminate gender disparity in primary and secondary education. 4. Saving Children—reduce the under 5 mortality rate. ―Millennium Development Goals‖
  25. 25. MILLENNIUM DEVELOPMENT GOALS 5. Caring for Mothers—reduce the maternal mortality rate. 6. Combating Diseases—such as AIDS/HIV, Tuberculosis, malaria, and other major diseases. 5. Using Resources Wisely—improvements in slum dwellings, create sustainable access to drinking water, and sustainable access to basic sanitation. 5. 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 countries. ―Millennium Development Goals‖
  26. 26. 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. 
  27. 27. CLIMATE CHANGE 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. 
  29. 29. NATIONAL AIDS CONTROL SUPPORT PROJECT 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 $525 million under the last three projects. 
  30. 30. INDIA LOW-INCOME HOUSING FINANCE The development objective of the Low Income Housing Finance Project for India is to provide access to sustainable housing finance for low income households  Approval Date (as of board presentation)-:May 14, 2013.  Closing Date-:December 31, 2018  Total Project Cost-:US$ 100.00 million 
  31. 31. 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 
  32. 32. 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 
  33. 33. 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 
  34. 34. 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 
  35. 35. Presented by-: Anuj Avneet Pardeep kaur Ramandeep(95) Shagun(CR)