Ppt on role of international financial institutions
PRESENTED BY:NAINA GUPTA
INTERNATIONALFINANCIAL INSTITUTIONS:International financial institutions (IFIs) are financial institutions that have been established by more than one country, and hence are subjects of international laws. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions exist and are technically IFIs. Many of these are multilateraldevelopment banks (MDB).
WHAT ARE INTERNATIONALFINANCIAL INSTITUTIONS (IFI’S)?World Bank Group (WBG): International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID)International Monetary Fund (IMF)Regional development banks, such as: African Development Bank (AFDB) Asian Development Bank (ADB)
CONTINUED….. Inter-American Development Bank (IADB) Bank of the South European Bank for Reconstruction and Development (EBRD)Other regional financial institutions e.g. European Investment Bank (EIB)Export Credit Agencies of individual country governments, such as: US Export Import Bank (EXIM) Japan External Trade Organization Hermes Kreditversicherungs (Germany)
INTERNATIONAL FINANCIAL INSTITUTIONS: Their common goal……. to reduce global poverty and improve peoples living conditions and standards; to support sustainable economic, social and institutional development; and to promote regional cooperation and integration.
PLANS LED BY G-20 G20 leaders and delegates attend the Summit on Financial Markets and the World Economy SUMMIT IN Saturday at the National Building Museum in Washington, D.C. on November 15, 2008. WASHINGTON D.C:1. World Bank Group (WBG)2. International Monetary Fund (IMF)3. European Bank for Reconstruction and Development (EBRD)4. Asian Development Bank (ADB)5. African Development Bank (AFDB)6. Inter-American Development Bank (IDB)
WORLD BANK WORLD BANK GROUP:The term "World Bank" generally refers tojust the IBRD and IDAThe World Banks activities are focused on Formation- 27 December 1945developing countries, in fields such ashuman development, agriculture and rural Type- International organizationdevelopment, environmental protection, Legal status- Treatyinfrastructure, and governance. Purpose/focus- Economic development, poverty elimination It is concerned with assisting its member Membership- 187 countries countries to achieve sustained economic President- Robert Zoellickgrowth. It functions as an intermediary for Jim Yong Kim (Elect)the transfer of financial resources from the Main organ- Board of Directors more developed to the less developed Website- worldbank.org countries.
ROLE OF WORLD BANK:FIGHTS POVERTY BY OFFERING DEVELOPMENTAL ASSISTANCE TO MIDDLE INCOME AND LOW INCOME COUNTRIES. GIVE LOANS AND OFFERS ADVICE AND TRAINING IN BOTH THE PRIVATE AND PUBLIC SECTORS. AIMS TO ELIMINATE POVERTY BY HELPING PEOPLE HELP THEMSELVES. THE WORLD BANK GROUP CREATED A NEW $1.2 BILLION RAPID FINANCING FACILITY- THE GLOBAL FOOD RESPONSE PROGRAM (GFRP)- IN MAY 2008 TO SPEED ASSISTANCE TO THE NEEDIESTCOUNTRIES. GFRP HAS APPROVED AND BEGUN DISBURSING $200 MILLION IN 21 COUNTRIES.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMET (IBRD):1.The International Bank for Reconstruction and Development was established in 1945.2. It had 184 members.3. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II.4. Now, its mission has expanded to fight poverty by means of financing states.5. Cumulative lending: $394 billion6. Fiscal 2004 lending: $11 billion for 87 new operations in 33 countries
INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA):1.The International Development Association was established in September 24, 1960.2. 165 Members is the part of the World Bank that helps the world’s poorest countries.3. IDA is responsible for providing long-term, interest-free loans to the worlds 80 poorest countries, 39 of which are in Africa.4. Fiscal 2004 commitments: $9 billion for 158 new operations in 62 countries
MULTILATERAL INVESTMENT AND GUARENTEE AGENCY (MIGA):1. The Multilateral Investment Guarantee Agency was established in 1988.2. It had165 members.3. Cumulative guarantees issued: $13.5 billion (Amounts include funds leveraged through the Cooperative Underwriting Program).4. Fiscal 2004 guarantees issued: $1.1 billion
INTERNATIONAL FINANCE CORPORATION (IFC):1. The International Finance Corporation was established in 1956.2. It had 176 members.3. Committed portfolio: $23.5 billion (includes $5.5 billion in syndicated loans).4. It promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve peoples lives.5. Fiscal 2004 commitments: $4.8 billion for 217 projects in 65 countries.
INTERNATIONAL CENTRE FOR THE SETTLEMENT OFINVESTMENT DISPUTES (ICSID):1. The International Centre for Settlement of Investment Disputes was established in 1966.2. It had 143 members.3. Total cases registered: 1594. It provides facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.5. Fiscal 2004 cases registered: 30
INTERNATIONAL MONETARY FUND INTERNATIONALMONETARY FUND (IMF):The International Monetary Fund was createdin 1944, with a goal to stabilize exchange rates andsupervise the reconstruction of the world’sinternational payment system.1- Promote international monetary cooperation.2-Shorten the duration and lessen the degree ofdisequilibrium in the international balances ofpayments of members. Formation- Adopted: July 22, 1944 (67 years ago) Entered into force:3-Facilitate the expansion and balanced growth of December 27, 1945international trade. Type- International Economic4-Promote Exchange stability and maintain Organizationorderly exchange arrangements among members. Headquarters- Washington, D.C.5-Assist in establishing a multilateral system of Membership- 1 nation (founding); 188payments. nations (to date)The IMF provides financial assistance to members Official languages- English, French, and Spanish to help them to correct balance of payments Managing Director- Christine Lagarde problems in a manner that promotes sustained growth. Main organ- Board of Governors Website- www.imf.org
BENEFITS TO INDIA BY IMF: Freedom to Rupee Membership of the World bank Importance of India in international field Technical advice and training
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD):EBRD provide project financing for banks, industries and businesses, both new ventures andinvestments in existing companies. We also work with publicly owned companies.Founded in 19911- Financial institution investing in public and private sectors2- Multinational shareholding: 60 countries, EIB and EU3- Operates in 27 countries of Central and Eastern Europe and the former Soviet Union)4- Institution with broader mandate: foster transition to market economy
ROLE OF EUROPEAN BANKS FORRECONSTRUCTION AND DEVELOPMENT:Structuring the financing of municipal infrastructure, equipment and servicesPromote commercialization and corporatization of servicesDevelopment of regulatory structuresPromotion of appropriate private sector involvementEnvironmental improvementFacilitate EU grant and commercial loan co-financingEBRD assists in developing municipal creditworthiness and improving budgetary and fiscal practiceEBRD mobilizes financing for municipal advisory servicesSupport in project appraisal and transaction structuringProvide most appropriate financing structure from a wide array of financial instrumentsMobilization of co-financing and syndication
Asian Development Bank ASIAN DEVELOPMENT BANK (ADB):The Asian Development Bank (ADB) is aregional development bank established to facilitateeconomic development of countries in Asia.ITS STATED GOALS: Motto- Fighting poverty in Asia and1- Promoting economic growth the Pacific2.Reducing poverty Formation- 22 August 19663.Developing human resources Type- Regional organization4.Improving the status of women Legal status- Treaty5.Protecting the environment Purpose/focus- Crediting Headquarters- Mandaluyong City,The Banks operations cover a wide spectrum of Metro Manila, Philippinesactivities and have been classified according to thefollowing sectors: Region served- Asia-Pacific1.Agriculture and natural resources Membership- 67 countries2.Transport and communications President- Haruhiko Kuroda3.Energy Main organ- Board of Directors4.Industry and non-fuel minerals Staff- 2,500+5.Finance Website- http://www.adb.org6.Socialinfrastructure
ROLE OF ASIAN DEVELOPMENT BANK:1- Provides loans and equity investments to its developing member countries2- Provides technical assistance for the planning and execution of development projects and programs and for advisory services3-Promotes and facilitates investment of public and private capital for development4-Assists in coordinating development policies and plans of its DMCs
AFRICAN DEVELOPMENT BANK AFRICANDEVELOPMENT BANK Formation August 4, 1963 (AFDB): Type International organizationEstablished in 1964 with a mandate to Legal status Treatypromote economic and socialdevelopment in Africa, the African Purpose/focus RegionalDevelopment Bank is a regional developmentmultilateral development finance Membership 78 countriesinstitution comprising the African President Donald KaberukaDevelopment Bank, the AfricanDevelopment Fund, and the Nigeria TrustFund. The opacity of its operations and its Main organ Board ofemphasis on major regional infrastructure Executiveprojects have generated concern among DirectorsAfrican and international civil society. Website http://www.afdb.or
ROLE OF AFRICAN DEVELOPMENT BANK: The main role of the African Development Bank is to help the development of countries in Africa by making loans and equity investments in various projects and programs. African Development Bank also provides technical assistance on development projects. African Development Bank helps in coordinating the development projects of the various countries involved.
Inter-American Development Bank INTER-AMERICANDEVELOPMENT BANK (IDB): Type International organizationThe Inter-American Development Bank was Headquarters Washington,founded in 1959. The IDB has 48 member DCcountries, including 26 Latin American and Membership 48 countriesCaribbean borrowing members. The banksupports efforts by Official language English,Latin America and the Caribbean countries to s Spanish,reduce Poverty and Inequality and is the largest French,source of development financing in this area, Portuguesebesides loans, grants are provided as wellas technical assistance and do research. The President Luis Alberto MoreIDB has a strong commitment to achievemeasurable results, increased integrity, Main organ Board oftransparency and accountability. Governors Staff About 2,000 Website iadb.org
ROLE OF INTER-AMERICAN DEVELOPMENT BANK:1- Using its lending operations, regional initiatives, research and knowledge dissemination activities, institutes, and programs, the IDB helps to foster sustainable economic and social development in Latin America and the Caribbean.2- Through its financing, the Bank prioritizes poverty reduction and social equity, environmentally sustainable growth, modernization of the state, and regional integration.3- IDB has the following main areas of action: Reducing poverty and social inequalities; Addressing the needs of small and vulnerable countries; Fostering development through the private sector; Addressing climate change, renewable energy and environmental sustainability; and Promoting regional cooperation and integration.