Also known as ‘World Bank’
Type - International organization
Purpose/focus - Crediting
Location - Washington DC
Membership - 188 countries
President – Jim Yong Kim
Website - http://www.worldbank.org
Established in 1944 as the original institution of
the World Bank Group, IBRD is structured like a
cooperative that is owned and operated for the
benefit of its 188 member countries.
The World Bank is an international financial
institution that provides long term capital
assistance to developing countries for capital
The World Bank has a goal of reducing poverty.
By law, all of its decisions must be guided by a
commitment to promote foreign
investment, international trade and facilitate
WORLD BANK GROUP
IBRD - International Bank for
Reconstruction and Development
IFC - International Finance
IDA - International Development
MIGA - Multilateral Investment
ICSID - International Centre for
Settlement of Investment
History of IBRD
The World Bank is one of five institutions created at the Bretton
Woods Conference in 1944.
Delegates from many countries attended the Bretton Woods
Conference. The most powerful countries in attendance were
the United States and United Kingdom which dominated
Although both are based in Washington, D.C., the World Bank is, by
custom, headed by an American, while the IMF is led by a
Until 1967 the bank undertook a relatively low level of lending.
From 1989, World Bank policy changed in response to criticism
from many groups. Environmental groups and NGOs were
incorporated in the lending of the bank in order to mitigate the
effects of the past that prompted such harsh criticism. Bank projects
"include" green concerns.
Functions of IBRD
To assist in the reconstruction & development
of its member countries.
To promote private foreign investment.
To promote balanced growth of international
To bring about a smooth transition from a war
time economy to peace time economy.
IBRD 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.
All countries which are members of IMF are
members of World bank.
A country holding the membership of bank must
subscribe to the charter of the bank.
If a country resigns its membership, it is required to
pay back all loans granted to it through interest on
Each member of the world bank has a capital
subscription which is similar to but not identical with
its quota in the fund.
The member’s subscription also measures roughly
its voting power, but again the smaller nations have a
slightly higher vote.
Activities by IBRD
and health services
Private sector development
Governance and investment
BOARD OF GOVERNORS
BOARD OF EXECUTIVE DIRECTORS
BOARD COMMITTEE - MANAGING DIRECTORS
VICE PRESIDENT & FINANCIAL OFFICERS
The president of the Bank, elected by the
executive directors, is also their chairman,
although he is not entitled to a vote, except in
case of an equal division. Subject to their
general direction, the president is responsible
for the conduct of the ordinary business of the
Bank. Action on Bank loans is initiated by the
president and the staff of the Bank. The
amount, terms, and conditions of a loan are
recommended by the president to the
executive directors, and the loan is made if his
recommendation is approved by them.
Board of Governors
All powers of the Bank are vested in its Board of
Governors, composed of one governor and one alternate from
each member state. Ministers of Finance, central bank
presidents, or persons of comparable status usually represent
member states on the Bank's Board of Governors. The board
The Bank is organized somewhat like a corporation. According
to an agreed-upon formula, member countries subscribe to
shares of the Bank's capital stock. Each governor is entitled to
cast 250 votes plus 1 vote for each share of capital stock
subscribed by his country.
The Executive Directors make up the Boards of Directors of
the World Bank. They normally meet at least twice a week to
oversee the Bank's business, including approval of loans and
guarantees, new policies, the administrative budget, country
assistance strategies and borrowing and financial decisions.
The Bank's Board of Governors has delegated most of its
authority to 24 executive directors. According to the
Articles of Agreement, each of the five largest
States, Japan, Germany, France and the United
Kingdom—appoints one executive director.
The other countries are grouped in 19
constituencies, each represented by an executive director
who is elected by a group of countries.
The number of countries each of these 19 directors
represents varies widely. For example, the executive
directors for China, the Russian Federation, and Saudi
Arabia represent one country each, while one director
speaks for 24 Francophone African countries and another
director represents 22 mainly English-speaking African
How the World Bank operates
specific duties to
President of the
World Bank reports
to the Board of
Board of Governors
Office of the
To assist in bringing about a smooth transition from wartime
to peaceful economies,
To promote economic development that benefits poor
people in developing countries.
Loans are provided to developing countries to help reduce
poverty and to finance investments that contribute to
Investments include roads, power plants, schools, and
irrigation networks, as well as activities like agricultural
extension services, training for teachers, and nutritionimprovement programs for children and pregnant women.
Some World Bank loans finance changes in the structure of
countries' economies to make them more stable, efficient,
and market oriented.
The World Bank also provides technical assistance to help
governments make specific sectors of their economies more
efficient and more relevant to national development goals.
A diverse staff of more than 15,520 employees from
over 160 countries works at the World Bank.
Two-thirds of it are based in Washington DC, while
the remaining third are at work in more than 100
country offices in the developing world.
There are economists, educators, environmental
scientists, financial analysts, and managers, as well
as foresters, agronomists, engineers, information
technology specialists and social scientists, to name
a few. It apply its skills and the Bank's resources to
bridge the economic divide between poor and rich
countries, to turn rich country resources into poor
country growth and to achieve sustainable poverty
World Bank Staff
Total Bank staff
10,000 at HQ and
5,520 in the field.
55% of total staff.
What are the biggest global
challenges for IBRD?
Elimination of global poverty
Global life expectancy
Aid to education
Goal 1: Wipe out extreme
poverty and hunger
Offer all children a
good basic education
Help women get equal
rights and empower them
Reduce death rate of young children
Improve the health of mothers
Combat HIV/AIDS, malaria, and other diseases
Help countries protect their environments
Promote a global partnership for development
How IBRD is financed?
At its establishment, the IBRD had an authorized capital of US$
10 billion. IBRD raises most of its funds on the world's financial
markets. It has become one of the most established borrowers
since issuing its first bond in 1947 to finance the reconstruction
of Europe after World War Two. Investors see IBRD bonds as a
safe and profitable place to put their money and their cash
finances projects in middle-income countries.
IBRD became a major player on the international capital
markets by developing modern debt products, opening new
markets for debt issuance, and by building up a broad investor
base around the world of pension funds, insurance
companies, central banks, and individuals.
The World Bank's borrowing requirements are primarily
determined by its lending activities for development projects. As
World Bank lending has changed over time, so has its annual
borrowing program. In 1998 for example, IBRD borrowing
peaked at $28 billion with the Asian financial crisis. It is now
projected to borrow between $10 to 15 billion a year.
Where does the
money come from?
IBRD raises funds on capital markets
Donors give money to IDA for the
world’s poorest countries, with additional
money coming from repayments and
from the Bank’s earnings
World Bank funding
Education: $1.9 billion
HIV-AIDS: $2.5 billion for UNAIDS
Health: $2.2 billion for health,
nutrition, and population projects.
Debt Relief: 27 countries
Environment: $2.49 billion
Partnerships: $4.8 billion
Governance: $2.6 billion
World Bank Borrowers
France was the first
borrower for $250 million
to finance post-war
reconstruction in 1946
Many developed nations
who are now
donors, were also
borrowers, such as
Austria, Australia, Denm
ark, Japan, Italy, Finland
, and Greece
The IBRD lends to member governments, or, with
government guarantee, to political subdivisions, or to
public or private enterprises.
The IBRD normally makes long-term loans, with
repayment commencing after a certain period.
The length of the loan is generally related to the
estimated useful life of the equipment or plant being
Since July 1982, IBRD loans have been made at
variable rates. The lending rate on all loans made
under the variable-rate system is adjusted
semiannually, on 1 January and 1 July, by adding a
spread of0.5% to the IBRD's weighted average cost
during the prior six months.
Projects in India
• Urban development
Project in India
Uttarakhand Disaster Recovery Project
India: Bihar Integrated Social Protection Strengthening Project
India: Rural Water Supply and Sanitation Project for Low
Rajasthan Road Sector Modernization Project
National Highways Interconnectivity Improvement Project
Improving Development Programmes in Tribal Areas
Tamil Nadu and Puducherry Coastal Disaster Risk Reduction
India Low-Income Housing Finance
National AIDS Control Support Project
Himachal Pradesh Watershed Management Project
Integrated Child Development Systems (ICDS) Strengthening
& Nutrition Improvement Program (ISSNIP)
Development Policy Loan (DPL) to Promote Inclusive Green
Growth and Sustainable Development in Himachal Pradesh
www.wikipedia.com/ world bank