World Bank Presentation by: Chetan Nana Nagare Department of Management Studies, North Maharashtra University Jalgaon MBA – II (Finance) Roll No. 28
World Bank Formation: 27 December 1945 Type: International organization Purpose/ focus: Crediting Membership: 186 countries President: Robert B. ZoellickParent Organization: World Bank Group Website: http://www.worldbank.org
The World Bank is an international financial institution that provides leveraged loans to poorer countries for capital programs, tied to neoliberal market restructurings. The World Bank has a stated goal of reducing poverty. The World Bank (WB) is a global connector of knowledge, learning and innovation for poverty reduction. WB connect practitioners and institutions to help them find suitable solutions to their development challenges. With a focus on the "how" of reform, we link knowledge from around the world and scale up innovations.
Vision " The World Bank Group aims to fight poverty with passion and professionalism for lasting results - to help people help themselves and their environments by producing resources, sharing knowledge, building capacity, and forging partnerships in the publican private sector"— World Bank Mission Statement
OBJECTIVES Investing in people, particularly through basic health and education. Focusing on social development, inclusion governance, and institution-building as key elements of poverty reduction. Strengthening the ability of the governments to deliver quality services, efficiently and transparently. Protecting the environment. Supporting and encouraging private business development. Promoting reforms to create a stable macroeconomic environment, conducive to investment and long-term planning.
MEMBERSHIPGenerally every member country of the IMF automatically becomes the member of WorldBank. Similarly, any country quitting IMF is automatically expelled from the World Bank’smembership.But, under a certain provision a country leaving the membership of IMF can continue itsmembership with World Bank if 75% members of the Bank give their vote in its favour.Any member country can quit the Bank simply by written notice to the Bank, but suchcountry has to repay the granted loans on terms and conditions decided at the time ofsanctioning the loan.Any country working against the guidelines of Bank can be debarred from membership bythe Board of Governors.World Bank has two types of members: Founder members and General members.World Bank has 30 founder members. India is also one of the founding members.At present total membership is 186.
VOTING RIGHTVoting right of members is determined on thebasis of their share in the total capital of theBank.Each member has 250 votes plus one additionalvote for each 1,00,000 shares of the capital stockheld.
CAPITAL RESOURCESThe initial authorized capital of the WB was$ 10,000 million, divided in 1 lakh shares of$ 1 lakh each.On June 30, 1996, the authorized capital ofthe Bank was $ 188 billion out of which $180.6 billion was issued to the membercountries in the form of shares.The headquarter of World Bank is atWashington D.C.
FUNCTIONSMain role is of providing loans for developmentworks to member countries, especially tounder-developed countries.The Bank provides long-term loans for variousdevelopment projects of 5 to 20 years duration.Besides, granting loans for reconstruction anddevelopment, Bank also provides varioustechnical services to the member countries.