4. What is 'The World Bank’ ???
• The World Bank is an international
organization dedicated to providing
financing, advice and research to
developing nations to aid their economic
advancement.
5. About world bank
Formation:- July 1945; 73 years ago
Type:-
Monetary International Financial
Organization
Legal status:- Treaty
Headquarters:- Washington, D.C., U.S.
Membership :-
189 countries (IBRD)
173 countries (IDA)
Key people:-
•Jim Yong Kim (President)
•Kristalina Georgieva (CEO)
•Paul Romer (Chief Economist)
Parent organization:- World Bank Group
Website:- worldbank.org
6. History of world bank
• The 1944 Bretton Woods Conference established the
World Bank. Its loans helped European countries
rebuild after World War II. That made it the world's
first multilateral development bank.
• It was funded through the sale of World Bonds.
Its first loans were to France and other European
countries. In the 1970s, it lent money to
Chile, Mexico, and India to build power plants and
railways. By 1975, its loans had helped with a wide
variety of issues. They included family planning,
pollution control, and environmental protections.
8. Membership
Generally take membership of the IMF automatically
become the member of world bank. Any country
quitting IMF is automatically expelled from the world
bank’s membership.
But, under a certain provision a country leaving the
membership of IMF can continue its membership
with world bank if 75% member of the bank give
their vote in its
11. The bank offers loans
• There are two types of loans offers to world
bank :
Investment loans: Support of economic and
social development project
Development policy loans: Quick disbursing
finance to support countries
12. Main Purpose
• The main purpose of the world bank is ''Reduction of
Poverty'‘ reconstruct countries emerging from war,
the biggest cause of extreme poverty.
• To provide long-run capital to member countries for
economic reconstruction and development.
• To ensure the implementation of development
projects so as to bring about a smooth transference
from a war-time to peace economy.
• To provide guarantee for loans granted to small and
large units and other projects of member countries.
13. Function / key role of world bank
• Granting reconstruction & development loans
• Providing loans to government & private
concern
• Promoting foreign investment
• Providing technical, economic and monetary
advice
• Encouraging industrial development
14. Goals of world bank
• 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 $1.90
a day to no more than 3% .
• Promote shared prosperity by fostering the
income growth of the bottom 40% for every
country.
16. Disadvantages
• Increase the debt burden.
• Ignore the environmental and social impact.
• High development cost
• The decision making structure is undemocratic.