The document summarizes trends in lending, funding sources, trust funds, and staffing at the World Bank over recent years. Total World Bank lending has declined in real terms since the 1980s-1990s, driven by a decrease in IBRD lending. IDA lending has increased but is more dependent on donor contributions as IBRD income available to subsidize IDA has decreased. Funding to support the private sector through institutions like IFC and MIGA has dramatically increased. Trust funds have also grown rapidly, increasing the influence of individual donors but posing management challenges. Declining income has led to reductions in Bank staff costs.
This briefing note explores ongoing macro-level changes at the World Bank. It focuses on four major trends: (1) changes in lending, including amount of lending, type of lending, and recipient countries; (2) changes in income sources; (3) the growth of trust funds; and (4) trends in staffing. The findings presented here are intended to help shape future engagements with the Bank by placing its operations in a broader context. Major findings: (1) Total World Bank lending has declined in real terms in recent years, driven by a significant decline in International Bank for Reconstruction and Development (IBRD) lending. IBRD commitments averaged more than $25 billion per year during the 1980s and 1990s, but commitments have since declined and are expected to average around $15 billion per year in the near term. This decline is the result of a number of factors, including insufficiently large capital infusions and reduced borrower demand stemming from low global interest rates and the growing availability of alternative funding sources. Declining Bank lending coincides with declining profitability. President Kim has recently announced plans to nearly double IBRD lending over the next several years, but it is not clear how this will be achieved. (2) International Development Association (IDA) lending has continued to increase in real terms, but IDA funding is increasingly dependent on donor contributions. Declining IBRD income limits the size of the subsidy IBRD can provide to IDA and increases the importance of individual IDA donors. (3) World Bank Group funding to support the private sector has increased dramatically, both in absolute terms and relative to overall spending. In 2013, the International Finance Corporation (IFC) accounted for 35% of World Bank Group commitments, compared with 18% in 2009 and only 13% in 2000. IFC support for financial intermediaries has also increased rapidly over the last several years. Multilateral Investment Guarantee Agency (MIGA) commitments have doubled in the past five years, albeit from a low base. (4) The Bank has always faced a pressure to lend, stemming from structural factors (administrative costs are covered by profits from loans), institutional factors (the real or perceived importance of ‘moving money’ for staff promotions), and external factors (demands from donors and shareholders). But while lending has declined, the pressure to expedite disbursements remains stronger than ever. This is because of the increasing pressure from both clients and donors to be more efficient and because of the increasing availability of alternative funding sources for national governments. While these changes have the potential to make the Bank more responsive and effective, they also pose a potential risk to policies, like the suite of safeguards, which could be perceived as impediments to speedy disbursement.
The Role of Multilateral Development Banks (MDBs) in the 2030 AgendaMarc-Anton Pruefer
This presentation provides: i) an overview of the 2030 Agenda and the Sustainable Development Goals (SDGs), ii) the order of magnitude of the associated financing needs, iii) the sources of development finance, focusing on iv) Multilateral Development Banks (MDBs) and their financing instruments, and v) a comparison of the major MDBs. It is targeted at both laypeople and professionals and seeks to convey a “big picture” of what Development Finance is, why the SDG period (2016-2030) is different from the MDG period (2000-2015), and what the role of different MDBs could be in achieving the 2030 Agenda.
The document discusses the declining role of World Bank lending in middle-income countries and proposes ways to address the problem. It notes that World Bank lending to MICs has significantly declined in recent decades. While MICs still face development challenges, the Bank is constrained in supporting them. There are many reasons for the lending decline, including shifts in Bank priorities and procedures. Progress has been made to facilitate more lending, but more can be done, such as expanding financial intermediation lending and adapting instruments for sub-national governments.
The document provides an overview of recent developments in emerging East Asian local currency bond markets. It notes that while growth prospects remain robust in emerging East Asia, uncertainties in the eurozone pose risks. Total bonds outstanding in the region grew 7.0% in 4Q11, led by strong corporate bond growth, while government bond growth was more modest. Inflationary pressures have moderated but may rise again with higher commodity prices.
OECD: Corporate bond markets in a time of unconventional monetary policyEduardo Vinante
The cheap money policies that fueled the global economy’s rebound since the financial crisis may be about to turn sour.
The amount of corporate bonds in circulation has doubled over the last decade to $13 trillion after companies binged on debt, causing “elevated risks and vulnerabilities,” the Organization for Economic Cooperation and Development said in a report.
Financial stability risks: old and new - Brookings presentation by Hyun Song...Macropru Reader
Hyun Shin’s presentation slides on financial stability risks, old and new http://www.brookings.edu/~/media/Blogs/Up%20Front/2014/12/04%20financial%20stability%20risks/shin_presentation.pdf @BIS_org @HyunSongShin @BrookingsInst Brookings December 4, 2014
CDFA Annual VC Report for 2014 20150821Pete Mathews
The document analyzes 2014 private activity bond and volume cap trends based on a survey of state allocating authorities. Key findings include:
- Total national volume cap increased to $92.1 billion, up from $87.3 billion in 2013.
- Total private activity bond issuance increased to $11.6 billion after declining for three years, reversing the shrinking bond market trend.
- Industrial development bond issuance decreased to $270 million after being below $300 million in 2012 but over $1 billion as recently as 2009.
Monday September 10 2012 - Top 10 Risk Management NewsCompliance LLC
This document summarizes key points from a speech given by Charles L. Evans, President and CEO of the Federal Reserve Bank of Chicago, on the global economic outlook and monetary policy implications. The speech discusses:
1) Tepid growth forecasts for the US and global economies in the next few years due to ongoing effects of the financial crisis.
2) Downside risks to the outlook from the European debt crisis and potential US fiscal cliff, which could further slow the economic recovery.
3) Implications of sluggish advanced economy growth for Asian economies that rely on exports to the US and Europe.
4) Low inflation expectations and projections that inflation will remain near the Fed's 2% target despite
This briefing note explores ongoing macro-level changes at the World Bank. It focuses on four major trends: (1) changes in lending, including amount of lending, type of lending, and recipient countries; (2) changes in income sources; (3) the growth of trust funds; and (4) trends in staffing. The findings presented here are intended to help shape future engagements with the Bank by placing its operations in a broader context. Major findings: (1) Total World Bank lending has declined in real terms in recent years, driven by a significant decline in International Bank for Reconstruction and Development (IBRD) lending. IBRD commitments averaged more than $25 billion per year during the 1980s and 1990s, but commitments have since declined and are expected to average around $15 billion per year in the near term. This decline is the result of a number of factors, including insufficiently large capital infusions and reduced borrower demand stemming from low global interest rates and the growing availability of alternative funding sources. Declining Bank lending coincides with declining profitability. President Kim has recently announced plans to nearly double IBRD lending over the next several years, but it is not clear how this will be achieved. (2) International Development Association (IDA) lending has continued to increase in real terms, but IDA funding is increasingly dependent on donor contributions. Declining IBRD income limits the size of the subsidy IBRD can provide to IDA and increases the importance of individual IDA donors. (3) World Bank Group funding to support the private sector has increased dramatically, both in absolute terms and relative to overall spending. In 2013, the International Finance Corporation (IFC) accounted for 35% of World Bank Group commitments, compared with 18% in 2009 and only 13% in 2000. IFC support for financial intermediaries has also increased rapidly over the last several years. Multilateral Investment Guarantee Agency (MIGA) commitments have doubled in the past five years, albeit from a low base. (4) The Bank has always faced a pressure to lend, stemming from structural factors (administrative costs are covered by profits from loans), institutional factors (the real or perceived importance of ‘moving money’ for staff promotions), and external factors (demands from donors and shareholders). But while lending has declined, the pressure to expedite disbursements remains stronger than ever. This is because of the increasing pressure from both clients and donors to be more efficient and because of the increasing availability of alternative funding sources for national governments. While these changes have the potential to make the Bank more responsive and effective, they also pose a potential risk to policies, like the suite of safeguards, which could be perceived as impediments to speedy disbursement.
The Role of Multilateral Development Banks (MDBs) in the 2030 AgendaMarc-Anton Pruefer
This presentation provides: i) an overview of the 2030 Agenda and the Sustainable Development Goals (SDGs), ii) the order of magnitude of the associated financing needs, iii) the sources of development finance, focusing on iv) Multilateral Development Banks (MDBs) and their financing instruments, and v) a comparison of the major MDBs. It is targeted at both laypeople and professionals and seeks to convey a “big picture” of what Development Finance is, why the SDG period (2016-2030) is different from the MDG period (2000-2015), and what the role of different MDBs could be in achieving the 2030 Agenda.
The document discusses the declining role of World Bank lending in middle-income countries and proposes ways to address the problem. It notes that World Bank lending to MICs has significantly declined in recent decades. While MICs still face development challenges, the Bank is constrained in supporting them. There are many reasons for the lending decline, including shifts in Bank priorities and procedures. Progress has been made to facilitate more lending, but more can be done, such as expanding financial intermediation lending and adapting instruments for sub-national governments.
The document provides an overview of recent developments in emerging East Asian local currency bond markets. It notes that while growth prospects remain robust in emerging East Asia, uncertainties in the eurozone pose risks. Total bonds outstanding in the region grew 7.0% in 4Q11, led by strong corporate bond growth, while government bond growth was more modest. Inflationary pressures have moderated but may rise again with higher commodity prices.
OECD: Corporate bond markets in a time of unconventional monetary policyEduardo Vinante
The cheap money policies that fueled the global economy’s rebound since the financial crisis may be about to turn sour.
The amount of corporate bonds in circulation has doubled over the last decade to $13 trillion after companies binged on debt, causing “elevated risks and vulnerabilities,” the Organization for Economic Cooperation and Development said in a report.
Financial stability risks: old and new - Brookings presentation by Hyun Song...Macropru Reader
Hyun Shin’s presentation slides on financial stability risks, old and new http://www.brookings.edu/~/media/Blogs/Up%20Front/2014/12/04%20financial%20stability%20risks/shin_presentation.pdf @BIS_org @HyunSongShin @BrookingsInst Brookings December 4, 2014
CDFA Annual VC Report for 2014 20150821Pete Mathews
The document analyzes 2014 private activity bond and volume cap trends based on a survey of state allocating authorities. Key findings include:
- Total national volume cap increased to $92.1 billion, up from $87.3 billion in 2013.
- Total private activity bond issuance increased to $11.6 billion after declining for three years, reversing the shrinking bond market trend.
- Industrial development bond issuance decreased to $270 million after being below $300 million in 2012 but over $1 billion as recently as 2009.
Monday September 10 2012 - Top 10 Risk Management NewsCompliance LLC
This document summarizes key points from a speech given by Charles L. Evans, President and CEO of the Federal Reserve Bank of Chicago, on the global economic outlook and monetary policy implications. The speech discusses:
1) Tepid growth forecasts for the US and global economies in the next few years due to ongoing effects of the financial crisis.
2) Downside risks to the outlook from the European debt crisis and potential US fiscal cliff, which could further slow the economic recovery.
3) Implications of sluggish advanced economy growth for Asian economies that rely on exports to the US and Europe.
4) Low inflation expectations and projections that inflation will remain near the Fed's 2% target despite
The less transparent, often misunderstood high yield municipal bond sector offers not only unusually high tax exempt income, but a mostly unrecognized source of long run diversification with the taxable high grade (re what the Fed says and does) bond market.
After the global financial crisis, the global banking industry will undergo significant changes due to new regulations. Growth and profitability for banks will likely decline as equity ratios increase. Lean years are ahead for US banks as revenue growth may remain low due to reduced lending. Private equity experienced booms and busts with the economic cycle, riding high during expansions but seeing deal volumes drop sharply during recessions. The industry is starting to see signs of recovery in 2010 in both developed and emerging markets like India.
Monday November 26 2012 - Top 10 Risk Management NewsCompliance LLC
This document provides a summary of the top 10 risk and compliance related news stories from the week according to the International Association of Risk and Compliance Professionals. It discusses two quotes from regulatory officials and summarizes reports from the SEC and other organizations. Key topics included whistleblower awards, fraud prevention, and Islamic finance prospects in Africa.
The financial crisis of 2008 originated from the collapse of the US housing market and subprime mortgage crisis. Risky mortgage loans were bundled into securities that were given high credit ratings and sold widely. When housing prices declined and mortgage defaults increased, the value of these securities plummeted. This caused the failure of major financial institutions, a stock market decline, and a recession around the world.
David Rubenstein posed 10 key questions facing the private equity world. These questions addressed issues like whether leverage for buyouts would return, the potential for major defaults of deals completed during the "golden age" of private equity, what areas private equity firms would pursue to achieve targeted returns, and whether now is the right time for investors to pursue private equity investments. The document also discussed sovereign wealth funds and their potential impact on private equity, as well as ways the industry could work to improve its public image.
Global Financial Stability – The Role of Islamic FinanceSDGsPlus
This document discusses the role of Islamic finance in global financial stability. It makes three key points:
1) Islamic finance bolstered financial stability during the 2008 crisis by maintaining growth and stronger links to the real economy compared to conventional finance.
2) Challenges like improving regulation, standardizing products, and ensuring liquidity need to be addressed to further enhance Islamic finance's contribution to stability.
3) International organizations like the World Bank are working with the Islamic finance industry on knowledge sharing and establishing principles around insolvency and governance to support the continued development of the sector.
The global financial crisis began in 2007-2008 as a result of rising housing prices and subprime lending in the United States that led to defaults and losses for many banks and financial institutions. As the crisis spread, it caused stock market declines, a slowdown in economic activity, and concerns over the stability of major financial institutions around the world. Central banks responded by cutting interest rates and providing liquidity, while governments bailed out major banks and implemented economic stimulus programs. The crisis had significant impacts on unemployment, trade, foreign direct investment, and growth in both developed and developing countries worldwide.
This document provides an introduction to major investment vehicles and concepts, focusing on fixed income securities. It defines different types of fixed income investments such as Treasury securities, agency bonds, municipal bonds, and corporate bonds. It discusses risks associated with fixed income investments like interest rate risk, price risk, liquidity risk, and reinvestment risk. The document also reviews historical returns of government bonds and notes that future returns are likely to be more subdued given current low interest rates.
The document summarizes the Multilateral Debt Relief Initiative (MDRI), which proposes to cancel debts owed by some of the world's poorest countries to the IMF, World Bank, and African Development Bank. The MDRI builds on previous debt relief efforts like the HIPC initiative. It provides 100% debt relief to countries that have completed the HIPC program in order to help them achieve development goals. While debt relief can increase resources for poor countries, debt is not the main impediment to reducing poverty, and other reforms are also needed. The IMF was the first institution to implement MDRI debt relief for 21 countries totaling $3.67 billion.
- Zions Bancorporation reported a net loss of $832.2 million or $7.29 per share for Q1 2009, driven largely by a $634 million non-cash goodwill impairment at Amegy Bank and $249 million in impairment and valuation losses on securities.
- Key factors contributing to the loss included building loan loss reserves by $146 million, a decline in net interest margin to 3.93%, and acquiring failed bank Alliance Bank's assets.
- However, the company extended $3.8 billion in new credit in Q1, loan charge-offs declined from Q4, and its capital ratios remained above regulatory requirements despite the reported loss.
The global financial stock grew by $11 trillion in 2010 to $212 trillion total, surpassing pre-crisis levels. Nearly half of the growth came from a $6 trillion increase in global stock market capitalization. Global credit markets also grew by $5.5 trillion to $158 trillion total, with most growth coming from a $4.4 trillion increase in government debt as budget deficits rose in many countries. Bank lending grew by $2.6 trillion while bond issuance by corporations and financial institutions was mixed.
The document summarizes a McKinsey Global Institute report on trends in global financial markets. It finds that while global financial assets have surpassed pre-crisis levels, growth has significantly slowed since 2007. Cross-border capital flows also declined sharply during the financial crisis and remain well below peak levels. Specifically, Eurozone banks have reduced foreign claims by $3.7 trillion since 2007, with $2.8 trillion of that within Europe. Capital flows to emerging markets have rebounded since the crisis, growing to 32% of the global total in 2012, up from just 5% in 2000.
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
All Eyes on Asset Quality Microfinance Global Valuation Survey 2010Dr Lendy Spires
This document summarizes key findings from a report on microfinance equity valuations in 2010. It finds that while microfinance institutions experienced rising delinquencies and falling profits during the economic downturn, most remained stable with solid reserve and capital levels. Despite challenges, microfinance equity valuations globally continued to rise in 2009, with the median private transaction valuation at 2.1x book value. The outlook for 2010 is assessed as generally positive, with continued client reach growth and interest from public and commercial investors, though at a slower pace with improved risk management.
The document discusses the global financial crisis that began in 2007 and its impacts. It describes how subprime mortgage loans in the US led to the housing bubble bursting and widespread defaults. Complex financial products containing these risky mortgages spread the crisis globally. The crisis led to stock market crashes, tight credit, economic slowdowns, and responses from governments and central banks like monetary policy easing and fiscal stimulus packages. India was impacted through stock and currency declines, tight credit, slowing growth and trade deficits, prompting Indian policy measures.
This study presentation looks at the causes and consequences of different types of financial crisis. It also focuses on the Hyman Minsky theory of financial instability in a capitalist economic system.
Global Meltdown and it's effects on IndiaAmol Shenvi
The document summarizes the global financial crisis of 2008 and its impact on India. It describes how the crisis originated from a housing bubble and bad debt in the US banking system. This led to a severe global economic recession. While foreign investments pulled out of India and exports declined, India was less impacted than other countries due to its large domestic market accounting for 80% of GDP. The government announced economic stimulus packages. Overall, while some sectors slowed, India remained the second fastest growing economy. The crisis also created new outsourcing and investment opportunities for India.
Overview of GLOBAL FINANCE CRISIS and impact with market. Impacts of the US Financial Crisis on Indian Economy. FINANCE CRISIS, Subprime Mortgage Crisis, US Financial Markets, US Unemployment and Stock Market Returns, Treasury Rates and Inflation,
Sovereign Bancorp reported third quarter 2007 earnings of $58.2 million, down from $184 million in the third quarter of 2006, due to disruptions in the mortgage and credit markets. Net interest income was $457 million and the net interest margin was 2.74%. Non-interest income fell to $141 million due to losses from capital markets and mortgage banking. The provision for credit losses increased to $162.5 million due to higher reserves for home equity and auto loans. Capital ratios declined slightly but remained strong.
This document provides a skills plan for the South African banking sector from 2013-2014. It analyzes the sector context, demand for skills, and supply of skills. In terms of demand, it identifies scarce skills like risk specialists, credit card specialists, and IT skills. Drivers of skills shortages include lack of experienced black candidates and limited tertiary education access. On the supply side, it finds low math and science pass rates limiting skills flows, and notes the need for collaboration across SETAs to address common skills needs like financial compliance and management skills. The plan aims to increase skills development opportunities to support the sector's growth and transformation goals.
The document discusses private equity investment in Africa. It notes that private equity firms seeking exposure to sub-Saharan Africa's high growth markets have been one of the key drivers of M&A activity on the continent over the past five years. According to reports, sub-Saharan Africa attracted $3.2 billion in private equity investment in 2013, up from $1.6 billion in 2012, making Africa the most popular investment destination globally for private equity firms ahead of Brazil, Russia, India and China. The trend of increasing private equity investment flows into Africa is expected to continue gaining momentum in the medium to long term.
This document summarizes lessons learned from food companies' experiences with sustainable sourcing initiatives involving large-scale agriculture. Key lessons include:
1) Engage producers as partners by focusing on continuous improvement and outcomes over time rather than annual comparisons or prescriptive checklists.
2) Recognize the limits of demand-driven requirements, as sustainability goals need flexibility to adapt to changing conditions.
3) Collaborate with other companies and organizations to address challenges that no single entity can solve alone.
4) Sustainable food production requires building trust and shared understanding across diverse stakeholders through high-quality engagement.
The less transparent, often misunderstood high yield municipal bond sector offers not only unusually high tax exempt income, but a mostly unrecognized source of long run diversification with the taxable high grade (re what the Fed says and does) bond market.
After the global financial crisis, the global banking industry will undergo significant changes due to new regulations. Growth and profitability for banks will likely decline as equity ratios increase. Lean years are ahead for US banks as revenue growth may remain low due to reduced lending. Private equity experienced booms and busts with the economic cycle, riding high during expansions but seeing deal volumes drop sharply during recessions. The industry is starting to see signs of recovery in 2010 in both developed and emerging markets like India.
Monday November 26 2012 - Top 10 Risk Management NewsCompliance LLC
This document provides a summary of the top 10 risk and compliance related news stories from the week according to the International Association of Risk and Compliance Professionals. It discusses two quotes from regulatory officials and summarizes reports from the SEC and other organizations. Key topics included whistleblower awards, fraud prevention, and Islamic finance prospects in Africa.
The financial crisis of 2008 originated from the collapse of the US housing market and subprime mortgage crisis. Risky mortgage loans were bundled into securities that were given high credit ratings and sold widely. When housing prices declined and mortgage defaults increased, the value of these securities plummeted. This caused the failure of major financial institutions, a stock market decline, and a recession around the world.
David Rubenstein posed 10 key questions facing the private equity world. These questions addressed issues like whether leverage for buyouts would return, the potential for major defaults of deals completed during the "golden age" of private equity, what areas private equity firms would pursue to achieve targeted returns, and whether now is the right time for investors to pursue private equity investments. The document also discussed sovereign wealth funds and their potential impact on private equity, as well as ways the industry could work to improve its public image.
Global Financial Stability – The Role of Islamic FinanceSDGsPlus
This document discusses the role of Islamic finance in global financial stability. It makes three key points:
1) Islamic finance bolstered financial stability during the 2008 crisis by maintaining growth and stronger links to the real economy compared to conventional finance.
2) Challenges like improving regulation, standardizing products, and ensuring liquidity need to be addressed to further enhance Islamic finance's contribution to stability.
3) International organizations like the World Bank are working with the Islamic finance industry on knowledge sharing and establishing principles around insolvency and governance to support the continued development of the sector.
The global financial crisis began in 2007-2008 as a result of rising housing prices and subprime lending in the United States that led to defaults and losses for many banks and financial institutions. As the crisis spread, it caused stock market declines, a slowdown in economic activity, and concerns over the stability of major financial institutions around the world. Central banks responded by cutting interest rates and providing liquidity, while governments bailed out major banks and implemented economic stimulus programs. The crisis had significant impacts on unemployment, trade, foreign direct investment, and growth in both developed and developing countries worldwide.
This document provides an introduction to major investment vehicles and concepts, focusing on fixed income securities. It defines different types of fixed income investments such as Treasury securities, agency bonds, municipal bonds, and corporate bonds. It discusses risks associated with fixed income investments like interest rate risk, price risk, liquidity risk, and reinvestment risk. The document also reviews historical returns of government bonds and notes that future returns are likely to be more subdued given current low interest rates.
The document summarizes the Multilateral Debt Relief Initiative (MDRI), which proposes to cancel debts owed by some of the world's poorest countries to the IMF, World Bank, and African Development Bank. The MDRI builds on previous debt relief efforts like the HIPC initiative. It provides 100% debt relief to countries that have completed the HIPC program in order to help them achieve development goals. While debt relief can increase resources for poor countries, debt is not the main impediment to reducing poverty, and other reforms are also needed. The IMF was the first institution to implement MDRI debt relief for 21 countries totaling $3.67 billion.
- Zions Bancorporation reported a net loss of $832.2 million or $7.29 per share for Q1 2009, driven largely by a $634 million non-cash goodwill impairment at Amegy Bank and $249 million in impairment and valuation losses on securities.
- Key factors contributing to the loss included building loan loss reserves by $146 million, a decline in net interest margin to 3.93%, and acquiring failed bank Alliance Bank's assets.
- However, the company extended $3.8 billion in new credit in Q1, loan charge-offs declined from Q4, and its capital ratios remained above regulatory requirements despite the reported loss.
The global financial stock grew by $11 trillion in 2010 to $212 trillion total, surpassing pre-crisis levels. Nearly half of the growth came from a $6 trillion increase in global stock market capitalization. Global credit markets also grew by $5.5 trillion to $158 trillion total, with most growth coming from a $4.4 trillion increase in government debt as budget deficits rose in many countries. Bank lending grew by $2.6 trillion while bond issuance by corporations and financial institutions was mixed.
The document summarizes a McKinsey Global Institute report on trends in global financial markets. It finds that while global financial assets have surpassed pre-crisis levels, growth has significantly slowed since 2007. Cross-border capital flows also declined sharply during the financial crisis and remain well below peak levels. Specifically, Eurozone banks have reduced foreign claims by $3.7 trillion since 2007, with $2.8 trillion of that within Europe. Capital flows to emerging markets have rebounded since the crisis, growing to 32% of the global total in 2012, up from just 5% in 2000.
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
All Eyes on Asset Quality Microfinance Global Valuation Survey 2010Dr Lendy Spires
This document summarizes key findings from a report on microfinance equity valuations in 2010. It finds that while microfinance institutions experienced rising delinquencies and falling profits during the economic downturn, most remained stable with solid reserve and capital levels. Despite challenges, microfinance equity valuations globally continued to rise in 2009, with the median private transaction valuation at 2.1x book value. The outlook for 2010 is assessed as generally positive, with continued client reach growth and interest from public and commercial investors, though at a slower pace with improved risk management.
The document discusses the global financial crisis that began in 2007 and its impacts. It describes how subprime mortgage loans in the US led to the housing bubble bursting and widespread defaults. Complex financial products containing these risky mortgages spread the crisis globally. The crisis led to stock market crashes, tight credit, economic slowdowns, and responses from governments and central banks like monetary policy easing and fiscal stimulus packages. India was impacted through stock and currency declines, tight credit, slowing growth and trade deficits, prompting Indian policy measures.
This study presentation looks at the causes and consequences of different types of financial crisis. It also focuses on the Hyman Minsky theory of financial instability in a capitalist economic system.
Global Meltdown and it's effects on IndiaAmol Shenvi
The document summarizes the global financial crisis of 2008 and its impact on India. It describes how the crisis originated from a housing bubble and bad debt in the US banking system. This led to a severe global economic recession. While foreign investments pulled out of India and exports declined, India was less impacted than other countries due to its large domestic market accounting for 80% of GDP. The government announced economic stimulus packages. Overall, while some sectors slowed, India remained the second fastest growing economy. The crisis also created new outsourcing and investment opportunities for India.
Overview of GLOBAL FINANCE CRISIS and impact with market. Impacts of the US Financial Crisis on Indian Economy. FINANCE CRISIS, Subprime Mortgage Crisis, US Financial Markets, US Unemployment and Stock Market Returns, Treasury Rates and Inflation,
Sovereign Bancorp reported third quarter 2007 earnings of $58.2 million, down from $184 million in the third quarter of 2006, due to disruptions in the mortgage and credit markets. Net interest income was $457 million and the net interest margin was 2.74%. Non-interest income fell to $141 million due to losses from capital markets and mortgage banking. The provision for credit losses increased to $162.5 million due to higher reserves for home equity and auto loans. Capital ratios declined slightly but remained strong.
This document provides a skills plan for the South African banking sector from 2013-2014. It analyzes the sector context, demand for skills, and supply of skills. In terms of demand, it identifies scarce skills like risk specialists, credit card specialists, and IT skills. Drivers of skills shortages include lack of experienced black candidates and limited tertiary education access. On the supply side, it finds low math and science pass rates limiting skills flows, and notes the need for collaboration across SETAs to address common skills needs like financial compliance and management skills. The plan aims to increase skills development opportunities to support the sector's growth and transformation goals.
The document discusses private equity investment in Africa. It notes that private equity firms seeking exposure to sub-Saharan Africa's high growth markets have been one of the key drivers of M&A activity on the continent over the past five years. According to reports, sub-Saharan Africa attracted $3.2 billion in private equity investment in 2013, up from $1.6 billion in 2012, making Africa the most popular investment destination globally for private equity firms ahead of Brazil, Russia, India and China. The trend of increasing private equity investment flows into Africa is expected to continue gaining momentum in the medium to long term.
This document summarizes lessons learned from food companies' experiences with sustainable sourcing initiatives involving large-scale agriculture. Key lessons include:
1) Engage producers as partners by focusing on continuous improvement and outcomes over time rather than annual comparisons or prescriptive checklists.
2) Recognize the limits of demand-driven requirements, as sustainability goals need flexibility to adapt to changing conditions.
3) Collaborate with other companies and organizations to address challenges that no single entity can solve alone.
4) Sustainable food production requires building trust and shared understanding across diverse stakeholders through high-quality engagement.
This document provides an overview of recent economic and social developments in West Africa in 2011 and prospects for 2012. It finds that while West African economies experienced overall growth in 2011, the region remains vulnerable to global economic shocks due to its reliance on commodity exports and lack of economic diversification. It recommends that countries in the region diversify their economies to reduce vulnerabilities and increase employment, including by adding value to commodity exports and expanding trade within the region. Political stability is also essential to protect governance gains and ensure continued socioeconomic progress. Overall, the report emphasizes the need for West African countries to diversify their sources of growth, trade, and financing to inoculate themselves from global economic instability and promote sustainable development.
This document outlines the IFC Sustainability Framework, which includes IFC's Policy on Environmental and Social Sustainability and 8 Performance Standards. The Policy commits IFC to ensuring environmental and social sustainability in its investment and advisory activities. It also describes IFC's roles in conducting environmental and social due diligence, categorizing risks, and supervision. The 8 Performance Standards provide requirements for clients to manage risks related to issues like labor, resource use, communities, biodiversity and cultural heritage.
South Africa has attracted mixed levels of inward foreign direct investment (IFDI) due to its dual economy characteristics. While it has a sophisticated business environment, it also has issues like poverty, inequality, and inefficient labor markets. IFDI flows increased after the end of apartheid but have been volatile. The mining sector receives the most IFDI but growth has been slow. Recent policy discussions around nationalizing mines have created uncertainty for investors. Overall, South Africa has struggled to attract higher levels of stable IFDI relative to its potential.
WOMEN IN THE ECONOMY: A REVIEW OF RECENT LITERATURE GREATER ACCESS TO TRADE E...Dr Lendy Spires
This document provides a literature review on women's participation in the economy. It begins by outlining women's unique position within economies, noting they often have asymmetric rights and responsibilities compared to men. They also experience "time poverty" due to greater domestic responsibilities. The document then reviews how labor markets are often gendered institutions, with women facing wage gaps and concentration in lower-paying jobs and sectors. It emphasizes that promoting gender equality and women's full participation in the economy is important for development and economic growth. The review concludes by presenting policy recommendations focused on conducting gender analyses, supporting women through targeted programs, and investing in infrastructure to reduce women's domestic burdens.
Ifc iga geothermal-exploration_best_practices-march2013Dr Lendy Spires
This document outlines a 7-phase process for geothermal exploration and development:
1) Preliminary survey
2) Exploration
3) Test drilling
4) Project review and feasibility study
5) Field development
6) Power plant construction
7) Commissioning and operation
It emphasizes establishing a conceptual model and addressing resource risks through data collection on geology, geochemistry, and geophysics. Financial justification is needed to advance from Exploration to Test Drilling.
This document outlines a new agenda for aid, trade, and investment. It notes shifts in global power, interconnectedness, patterns of poverty, and roles. Three types of bilateral relationships are identified: 1) Aid relationships focus on countries unable to reduce poverty alone, 2) Transitional relationships combine aid and trade to benefit developing and Dutch economies, 3) Trade relationships promote Dutch trade and investment. The agenda aims to eradicate extreme poverty, enable sustainable inclusive growth worldwide, and support Dutch companies abroad through coherent policy, new forms of cooperation, financing, and spending cuts.
This document is an interim financial report for a French company with operations in Africa, French overseas territories, Vietnam, and Denmark. It provides an overview of the company's business segments and their financial performance in the first half of 2014. The main business segments discussed are Equipment & Services (automotive, equipment, and rental services), Healthcare (pharmaceutical distribution), and Consumer Goods (beverages, plastics, retail). The report also addresses the company's risk factors, including risks related to its operating environment and business activities.
This document provides an overview of economic conditions in Gauteng province, South Africa in 2012. It summarizes the global and national economic outlooks, and reviews economic performance in Gauteng. Unemployment remains high in Gauteng at 25.4%, though declining, and infrastructure investment is emphasized as a priority to drive growth. The agricultural sector in Gauteng is also analyzed, noting challenges like lack of access to markets and opportunities from new provincial support programs.
Gender Perspectives Improve Reproductive Health Outcomes: New Evidence Dr Lendy Spires
In 2004, the Inter-agency Gender Working Group (IGWG) published The “So What?” Report: A Look at Whether Integrating a Gender Focus into Programs Makes a Difference to Outcomes. The 2004 report presented evidence of the value of integrating gender into programs for promoting positive reproductive health (RH) and gender outcomes.
The purpose of this new 2009 review is to assemble the latest data and update the evidence as to what difference it makes when a gender perspective is incorporated into RH programs. The review focuses on five components of reproductive health programs, including interventions related to: n Unintended pregnancy; n Maternal health; n HIV/AIDS and other STIs; n Harmful practices, including early marriage, female genital mutilation/cutting, and gender- based violence; and n Youth.
The authors examined gender-related barriers to each component of reproductive health and the strategies undertaken by programs to address the barriers. Out of nearly 200 interventions reviewed, 40 are included here as examples of programs that integrate gender to improve reproductive health outcomes.
The interventions selected for inclusion were limited to those that have been evaluated— meaning they established criteria for assessment that were related to the goals of the intervention and followed an evaluation design—and that used accommodating or trans-formative approaches. The results of these pro-grams suggest that the field is evolving toward a deeper understanding of what gender equality entails and a stronger commitment to pursue this equality in reproductive health programs. Reducing Unintended Pregnancies Several of the projects to reduce unintended pregnancy countered the traditional practice of aiming family planning (FP) services at women only; they encouraged husbands and other males to take more responsibility in this area.
The strategies included enlistment of men who hold power, such as community or religious leaders, to support FP; influencing husbands to encourage their wives to use FP services; and providing a male-controlled contraceptive method. Other projects encouraged joint decision making, shared responsibility in FP, and the institutionalization of gender into RH services.
The document summarizes the global economic outlook and trends in foreign direct investment. It predicts that global economic growth will gradually strengthen to around 3% in the coming years. In 2012, FDI to developing countries declined slightly but is expected to rebound in 2013. South-South FDI flows between developing countries are increasing and now account for about a quarter of developing country outward FDI stock. MIGA plays an important role in mobilizing private investment in priority areas like poorer countries, conflict-affected areas, and complex projects through political risk guarantees that help investors overcome hesitations.
FAO supported producers' organizations and cooperatives in 2011 and has planned work for 2012 to address ongoing challenges. Key 2011 activities included providing technical support to field projects, holding meetings to support networking, and developing knowledge platforms. For 2012, FAO has planned additional projects, publications, and meetings to help producers' organizations amid issues like rising global food demand, population growth, and continued food price volatility, which have made it difficult for small producers to benefit from opportunities.
The Informal Economy: Definitions, Theories and Policies Dr Lendy Spires
Introduction It was widely assumed during the 1950s and 1960s that, with the right mix of economic policies and resources, low-income traditional economies could be transformed into dynamic modern economies. In the process, the traditional sector comprised of petty trade, small-scale production, and a range of casual jobs would be absorbed into the modern capitalist or formal economy and, thereby, disappear.
This perspective was reflected in the prediction by W. Arthur Lewis, in the 1954 essay for which he received a Nobel Prize in Economics, that economic development in developing countries would, in the long-term, generate enough modern jobs to absorb surplus labour from the traditional economy. This would lead to a turning point when wages would begin to rise above the subsistence level: what is referred to even today as the “Lewis Turning Point” (Lewis 1954). This perspective was reinforced by the successful rebuilding of Europe and Japan after World War II and the expansion of mass production in Europe and North America during the 1950s and 1960s.
By the mid- 1960s, however, the optimism about the prospects for economic growth in developing countries began to give way to concerns about persistent widespread unemployment. This led development economist Hans Singer to argue in 1970 that he saw no sign of the “Lewis Turning Point” in developing countries. In sharp contrast with the historical experience in developed countries, unemployment and under-employment of various kinds were on the rise in developing countries, even those that were growing economically.
Singer attributed this trend to an imbalance resulting from technological advances: an imbalance between limited creation of jobs due to the extensive use of capital-intensive technology and significant growth in the population—and labour force—due to technological progress in health and disease control. He predicted a persistent “dangerous” dualism in labour markets with high levels of casual and intermittent employment, as well as disguised or open unemployment. He also warned of an employment crisis due to acute land shortage in overcrowded farming communities and an acute job shortage in overcrowded urban communities (Singer 1970).
GBRW Consulting has been analysing the major Multilateral Development Banks - International Bank for Reconstruction & Development, or World Bank; International Finance Corporation; Inter-American Development Bank; African Development Bank; Asian Development Bank and European Bank for Reconstruction and Development- since the late 1990s.
This is the second of two presentations available on SlideShare. It illustrates some of the main characteristics of the financial statements of this very specialised group of institutions, which we refer to as MDBs.
The document provides information about the World Bank, including its objectives, organization, and subsidiaries. It discusses the formation of the World Bank at Bretton Woods in 1944 to aid post-war reconstruction. The main subdivisions of the World Bank are described: the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID). Details are given about the purpose and functions of each organization.
This document summarizes a journal article that investigates constraints on small and medium enterprises (SMEs) accessing bank finance in Cote d'Ivoire. It finds that information asymmetry and inadequate collateral are two major demand-side constraints. SMEs in Cote d'Ivoire struggle to provide adequate financial statements and records to banks, and many lack sufficient collateral to secure loans. The document also notes supply-side constraints, including a low level of foreign bank participation and poor economic freedom in Cote d'Ivoire.
This document is MIGA's annual report for fiscal year 2013 which highlights MIGA's activities and financial performance for the year. Some key points:
- MIGA issued a record $2.8 billion in political risk guarantees in FY2013, up from $2.7 billion the prior year. Nearly three-quarters of the guarantees went to IDA-eligible countries.
- MIGA's gross exposure reached $10.8 billion by the end of FY2013, continuing six years of growth. Operating income was $19.1 million.
- Key projects supported included power and oil/gas projects in Cote d'Ivoire, totaling over $2 billion in
Introduction to the Post-2015 Development Agenda from the World Bank with spe...SDGsPlus
Special High-Level Meeting of the ECOSOC with Bretton Woods Institutions, the WTO and the United Nations Conference on Trade and Development
New York, USA
April 2013
This report provides an evidence-based overview of developments in capital markets globally leading up to the COVID-19 crisis. It then documents the impact of the crisis on the use of capital markets and the introduction of temporary corporate governance measures.
Islamic Finance, the SDGs & Impact InvestingSDGsPlus
The presentation discusses how Islamic finance can help support the UN's 2030 Development Agenda and Sustainable Development Goals (SDGs). It provides an overview of the SDGs and the large financing needs to achieve them. Islamic finance principles of risk sharing and asset-backed financing align well with mechanisms to mobilize private capital like public-private partnerships for infrastructure. The presentation also explores opportunities for Islamic finance in impact investing. It argues Islamic finance could play a meaningful role in achieving the SDGs both on its own and by complementing conventional financing approaches and mechanisms.
From Commitment to Delivery: Catalyzing Resources for DevelopmentSDGsPlus
Crisis
Response
Window
Catastrophe
Deferred
Drawdown
Option
Climate
Change
Action Plan
Green
Bonds
Sustainable
Development
Bonds
Green
Growth
Climate
Change
Sustainable
Development
Fragility, Conflict & Violence
Human Capital
Urbanization
Trade & Competitiveness
Governance & Institutions
Private Sector Development
Infrastructure
Agriculture & Food Security
Energy & Extractives
Health, Nutrition & Population
Education
Water
Social Protection & Jobs
Environment & Natural Resources
Macroeconom
Session 6 - Presentation by Frank van Lerven, New Economics FoundationOECD Environment
This document discusses the role central banks and commercial banks can play in promoting green investment and transitioning to a greener economy. It outlines how banks create money through lending and how central banks influence monetary policy. It then presents three policy instruments central banks could use: 1) macroprudential regulation, 2) influencing green credit creation through tools like refinancing and quotas, and 3) green quantitative easing where central banks directly finance green projects. The document provides examples of countries using these approaches and discusses both the opportunities and limitations central banks face in promoting green transitions.
Turning Ideas Into Action: Financing the Post-2015 AgendaSDGsPlus
This document discusses financing strategies to support development goals after 2015. It proposes increasing the impact of available resources through good policies and credible institutions. Additional resources could be leveraged from domestic and foreign sources. Developing countries could generate more tax revenues, ensure efficient spending, promote financial inclusion and private sector growth. The international community could maximize aid impact, support new partners, tap private finance, and provide global public goods. Public-private partnerships and syndicated loans with development banks could leverage private flows for long-term investments.
SDG Financing: Enhancing the Role of National and Regional Development Financ...SDGsPlus
This document discusses financing strategies for achieving the 2030 Development Agenda goals. It notes that annual investments of $690-780 billion will be needed for power, transport, telecommunications and other infrastructure to meet the goals. While private capital could help close this investment gap, public and concessional financing will still be needed. The World Bank aims to mobilize various sources of financing including private, commercial, Islamic and public/concessional funds. It has worked with the Islamic Development Bank on joint projects and knowledge products to leverage Islamic finance for development. Collaboration between multilateral development banks is important to effectively finance the 2030 Agenda.
ADBI Working Paper Series Financial Inclusion and Financial Stability: Curren...Dr Lendy Spires
This document discusses financial inclusion and financial stability. It argues that greater financial inclusion can enhance financial stability in several ways:
1) Financial inclusion poses risks at the institutional level but these are not systemic in nature, as evidence shows that low-income groups maintain solid financial behavior during crises.
2) The risk profile of inclusive institutions is characterized by many small clients and transactions, posing minimal risk to financial stability.
3) Risks at the institutional level can be managed with prudent tools and effective consumer protection. Potential costs of inclusion are outweighed by long-term benefits of a deeper, more diversified financial system.
This document discusses financial inclusion and financial stability. It argues that greater financial inclusion can enhance financial stability by cushioning the impact of financial crises at the local level. While financial inclusion poses some risks at the institutional level, these are not systemic in nature and can be managed with prudent regulation. The potential costs of inclusion are outweighed by long-term benefits of a deeper, more diversified financial system that is more resilient to shocks. Innovations to promote inclusion may strengthen financial systems rather than weakening them.
Needs of Countries in Special Situations: African Countries, LDCs, LLDCs, and...SDGsPlus
This document discusses the unique challenges facing developing countries and the financing needs for achieving development goals. It notes that African countries have experienced growth without poverty reduction, least developed countries face challenges with investment, poverty, and human development, and small island developing states are vulnerable to climate change. Middle-income countries contain 75% of the world's poor and risk getting trapped at middle-income levels. The document also discusses progress on the MDGs, challenges with official development assistance falling short of targets, the potential for emerging donors and domestic resource mobilization, and leveraging private finance through public-private partnerships and syndicated loans. It provides examples of innovative financing mechanisms.
The IMF conducted its first review of Bangladesh's performance under the Extended Credit Facility (ECF) and found that Bangladesh had made progress on most targets but fell short on some structural reforms. Bangladesh stabilized its fiscal position, strengthened foreign reserves, and improved its trade and investment climate. However, delays occurred in implementing a new VAT law and banking sector reforms. The IMF sees risks from a worsening eurozone crisis and recommends Bangladesh focus on tax revenue generation, priority spending, and fiscal sustainability.
On the Sustainable Development Goals and Islamic Capital MarketsSDGsPlus
This document discusses how Islamic capital markets can support sustainable development goals. It provides an overview of the SDGs and financing needs. Islamic finance principles like risk-sharing and asset-backed instruments allow sukuk to finance infrastructure. The large and growing Islamic finance industry worth over $2 trillion indicates its potential. However, markets require robust legal and regulatory frameworks. The World Bank Group is leveraging Islamic finance through various projects and instruments like green sukuk and social bonds. Collaboration between public and private sectors is needed to mobilize financing and achieve the 2030 development agenda.
The document discusses offshore banking institutions and how they are difficult to regulate. It notes that countries cannot impose reserve requirements on their own banks' overseas branches. It also discusses the Basel Committee on Banking Supervision and their role in negotiating international banking standards. Overall, the document examines issues around regulating international banking institutions and setting international standards.
1. BRIEFING NOTE
SOME EVOLVING TRENDS AT THE WORLD BANK:
LENDING, FUNDING, STAFFING
Kevin Currey
Natural Resources and Sustainable Development
The Ford Foundation
May 2014
2. 2
EXECUTIVE SUMMARY
This briefing note explores ongoing macro-level changes at the World Bank. It focuses on four major trends: (1) changes in lending, including amount of lending, type of lending, and recipient countries; (2) changes in income sources; (3) the growth of trust funds; and (4) trends in staffing. The findings presented here are intended to help shape future engagements with the Bank by placing its operations in a broader context.
Major findings:
(1) Total World Bank lending has declined in real terms in recent years, driven by a significant decline in International Bank for Reconstruction and Development (IBRD) lending. IBRD commitments averaged more than $25 billion per year during the 1980s and 1990s, but commitments have since declined and are expected to average around $15 billion per year in the near term. This decline is the result of a number of factors, including insufficiently large capital infusions and reduced borrower demand stemming from low global interest rates and the growing availability of alternative funding sources. Declining Bank lending coincides with declining profitability. President Kim has recently announced plans to nearly double IBRD lending over the next several years, but it is not clear how this will be achieved.
(2) International Development Association (IDA) lending has continued to increase in real terms, but IDA funding is increasingly dependent on donor contributions. Declining IBRD income limits the size of the subsidy IBRD can provide to IDA and increases the importance of individual IDA donors.
(3) World Bank Group funding to support the private sector has increased dramatically, both in absolute terms and relative to overall spending. In 2013, the International Finance Corporation (IFC) accounted for 35% of World Bank Group commitments, compared with 18% in 2009 and only 13% in 2000. IFC support for financial intermediaries has also increased rapidly over the last several years. Multilateral Investment Guarantee Agency (MIGA) commitments have doubled in the past five years, albeit from a low base.
(4) The Bank has always faced a pressure to lend, stemming from structural factors (administrative costs are covered by profits from loans), institutional factors (the real or perceived importance of ‘moving money’ for staff promotions), and external factors (demands from donors and shareholders). But while lending has declined, the pressure to expedite disbursements remains stronger than ever. This is because of the increasing pressure from both clients and donors to be more efficient and because of the increasing availability of alternative funding sources for national governments. While these changes have the potential to make the Bank more responsive and effective, they also pose a potential risk to policies, like the suite of safeguards, which could be perceived as impediments to speedy disbursement.
3. 3
(5) IBRD lending is shifting from investment lending toward development policy lending and the newly established Program-for Results (P4R). An evolving development context and changes in client demand are contributing to this shift. Efforts like P4R that seek to reorient the Bank from a ‘compliance focus’ to a ‘results focus’ offer both opportunities and risks.
(6) The influence of individual donors has increased through the rapid rise of trust funds. Trust funds have become increasingly central to the Bank’s efforts to address global public goods problems, but they also present complex management challenges and threaten to reduce the overall coordination of Bank activities.
(7) Declining income at the Bank has triggered reductions in staff costs. This has been accomplished in a variety of ways, including an increased reliance on trust funds to cover some of these costs.
(8) In sum, declining profitability at IBRD places pressure on the Bank to be more competitive with other lenders. This could have the positive effect of helping the Bank strengthen key areas of differentiation, but it could also lead to reduced attention to safeguards and other perceived impediments to efficient lending.
Notes:
Unless otherwise stated, years listed in this report refer to the World Bank Group fiscal year.
The World Bank refers to IBRD and IDA; World Bank Group refers to all five institutions.
4. 4
Five institutions make up the World Bank Group: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). The first two institutions, IBRD and IDA, are collectively referred to as the World Bank. Table 1 provides an overview of these institutions and their roles.
Table 1: The World Bank Group At-A-Glance Institution Est. Members Cumulative Commitments (billion USD) FY2013 Commitments (billion USD) Purpose International Bank for Reconstruction and Development (IBRD)
1944
188
586.2
15.2
Lends to creditworthy middle- and low-income countries; provides advisory and analytical services International Development Association (IDA)
1960
173
268.5
16.3
Offers highly concessional loans (called credits) and grants for the poorest countries International Finance Corporation (IFC)
1956
184
183.4
18.3
Stimulates private-sector investment in emerging markets through loans, risk-management products, equity finance, and advisory services Multilateral Investment Guarantee Agency (MIGA)
1988
180
30.0
2.8
Promotes investment in emerging economies by offering guarantees to protect investors and lenders against losses from noncommercial risk International Centre for Settlement of Investment Disputes (ICSID)
1966
150
[282 concluded cases]
[1 concluded case]
Promotes investment by providing facilities to help countries arbitrate investment disputes
Source: IBRD (2013); IDA (2013); IFC (2013); MIGA (2013); ICSID (2013).
5. 5
WORLD BANK LENDING
Both the World Bank’s mission and its approach to executing it have evolved considerably over time. Created in Bretton Woods, New Hampshire, in 1944, IBRD‘s initial tasks were to address capital deficiency and stabilize a global economy ravaged by World War II (Phillips 2009). The Bank issued its first loan in 1947, committing $250 million to the French government to support reconstruction. But not long afterward, it turned its focus away from Europe and began to address global poverty.
Since then, the history of the Bank has closely tracked broader trends in international development approaches (trends the Bank itself helped shape). In the 1950s and 1960s, investments in industry and infrastructure dominated the Bank’s portfolio, although later in the period the Bank began investing in capacity and institution building as well. In the 1970s, under the leadership of President Robert McNamera, the Bank veered into more direct approaches to poverty reduction, pioneering strategies like ‘basic human needs’ and ‘integrated rural development.’ During the 1980s, the Bank focused on structural adjustment, macroeconomic policies, debt, and efforts to increase private capital flows. This culminated in the emergence of the so-called Washington Consensus, favoring privatization, trade liberalization, deregulation, fiscal and tax policy reforms, and other hallmarks of neoliberal economic policy. In the 1990s and 2000s, the Bank focused on sustainable development and continued to strengthen its brand as a ‘knowledge bank’ offering technical expertise on a range of development issues. Most recently, the Bank expanded its footprint to address global public goods problems, like climate change. Today, however, the Bank is at a crossroads, and as the next section explains, it is not yet clear how the current existential crisis will be resolved.
A. Amount of lending
More than six decades after Bretton Woods, the World Bank’s cumulative lending now stands in excess of $1 trillion. In 2013, the World Bank Group committed $52.6 billion in total loans, grants, equity investments and guarantees. The World Bank (IBRD and IDA) committed $31.5 billion in loans, credits, grants, and guarantees. This includes $15.2 billion from IBRD, to support 92 operations in 35 countries, and $16.3 billion from IDA, to support 184 operations in 59 countries (IBRD 2013; IDA 2013). Table 2 shows nominal commitments for the World Bank Group institutions over the past five years.
Figure 1 shows real (inflation-adjusted) World Bank lending commitments by year since 1970.
As the graph illustrates, with a few exceptions, IBRD lending has declined in real terms since the late 1980s and early 1990s. This is more clearly demonstrated in table 3. Real IBRD lending commitments averaged around $26 billion per year between 1980 and 1999, but dropped to $16.6 billion per year during the next decade. Growth in IDA lending, on the other hand, has outpaced inflation, but the real rate of growth was higher in the 1970s and 1980s than today.
6. 6
Table 2: Nominal World Bank Group commitments (billion USD), 2009-2013 Institution 2009 2010 2011 2012 2013
World Bank
46.9
58.8
43.0
35.4
31.5
IBRD
32.9
44.2
26.7
20.6
15.2
IDA
14.0
14.6
16.3
14.8
16.3
IFC
10.5
12.7
12.2
15.5
18.3
MIGA
1.4
1.5
2.1
2.7
2.8
WBG Total
58.8
73.0
57.3
53.6
52.6
Source: IBRD (2013); IDA (2013); MIGA (2013); IFC (2013)
Figure 1: Real IBRD, IDA, and total World Bank commitments by year (billion 2013 USD)
Note: Amounts adjusted to 2013 USD using the US CPI-All Urban Consumers index (base 1982-1984)
Source: IBRD (2013); IDA (2013)
Table 3: Nominal/ real average yearly lending commitments by decade (billion 2012 USD)
1970-79 1980-89 1990-99 2000-09 Nominal IBRD
3.9
12.0
16.7
14.2 IDA
1.4
3.6
6.5
9.1 Real IBRD
16.1
26.2
25.6
16.6 IDA
6.1
8.0
9.9
10.6
Source: IBRD (2013); IDA (2013)
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
Billions of 2013 USD
IBRD commitments
IDA commitments
Total World Bank commitments
7. 7
The exceptions to this trend are two spikes in lending, in response to the 1997 Asian financial crisis and the 2008 global financial crisis. For example, in the four years leading up to the global financial crisis, IBRD commitments averaged about $13.5 billion per year. IBRD dramatically ramped up lending in response to the crisis, making loan commitments of $32.9 billion in 2009 and $44.2 billion in 2010. But as the most immediate threats to global economic stability subside, IBRD lending has steadily declined to pre-crisis levels; after reaching a record high in 2010, IBRD lending commitments stood at $26.7 billion in 2011 and $20.6 billion last year. It declined $5.3 billion in 2013, to $15.2 billion.
Capital adequacy tests and prudent risk management practices place upper limits on IBRD’s lending, but those limits are far from being exceeded (Moody’s 2012). IBRD’s Articles of Agreement set a statutory lending limit of a 1:1 gearing ratio, meaning that outstanding loans may not exceed the sum of subscribed capital, reserves, and surplus (World Bank 2012a).
Outstanding loans and guarantees of $141 billion are currently 57% of the $250 billion lending limit. IBRD currently targets an equity-to-loan ratio of between 23% and 27%. This ratio has decreased since 2010, due to an increase in lending and decrease in useable equity, but it remains at the upper end of the target risk coverage range, at 26.8% (IBRD 2012). The Executive Directors also set Single Borrower Limits that restrict how much individual countries may borrow. In FY2013, this limit was set at $17.5 billion for India and $16.5 for other countries, and this will remain unchanged for FY2014 (IBRD 2013; Moody’s 2012).
There are many interlinked reasons why IBRD lending is declining, including the failure to secure additional capital increases. But a significant factor may be reduced demand for IBRD loans stemming increased competition from other funding sources and low global interest rates. The Bank’s lending has never accounted for more than 5% of total international financial flows (Phillips 2009), but as these flows have rapidly increased, the Bank’s lending had failed to keep pace. Table 4 shows lending commitments from regional development banks as well as the China Development Bank and BNDES, the Brazilian Development Bank. (Capital flows from ODA, remittances, and FDI are included for reference). Lending from the four regional development banks has been increasing significantly, especially in the aftermath of the financial crisis.
At the same time, middle income countries are increasingly financing their own development. Disbursements at BNDES have grown six-fold since 2000, and net profit has increased more than tenfold. Its lending in 2012 was almost four times more than IBRD lending. The China Development Bank had about $886 billion in loans outstanding in 2011, compared to only $136 billion in outstanding IBRD loans in FY2012. To put this number further in perspective,
China has only $13 billion in loans outstanding from IBRD and has received cumulative loans of only slightly more than $50 billion from the World Bank.
Moreover, China is now a major donor for other developing countries. China does not publish data on its overseas loans, but during the financial crisis, Chinese lending surpassed World Bank lending: the China Development Bank and the China Export-Import Bank committed
8. 8
more than $110 billion to developing countries from 2008 to 2010, while IBRD and IFC together committed only $100 billion (Dyer et al. 2011).
Finally, private capital flows are becoming increasingly important for development. Remittance flows to developing countries in 2012 were 13 times higher than World Bank lending and three times higher than total ODA; FDI inflows to developing countries were 22 times higher than World Bank lending and almost four times higher than total ODA. These forms of private capital are not perfect substitutes for Bank lending, of course, but they do represent an increased form of at least indirect competition.
Table 4: Loan commitments by development banks Development Bank Commitment (billion USD) Year
World Bank Group
52.6
2013
World Bank (IBRD+IDA)
31.6
2013
IBRD
15.3
2013
IDA
16.3
2013
China Development Bank
163+
2011
BNDES
79.7
2012
Asian Development Bank (ADB)
10.2
2013
European Bank for Reconstruction and Development (EBRD)
12.3
2012
Inter-American Development Bank (IDB)
10.7
2012
African Development Bank (AfDB)
8.5
2011
FDI inflows to developing countries
684
2012
Remittances to developing countries
406
2012
DAC ODA
134.8
2013
Source: IBRD (2012); EBRD (2012), ADB (2012); AfDB (2013); IDB (2011); World Bank (2012d); UNCTAD (2012); OECD (2013)
All of these changes have pushed governments, both borrowers and other shareholders, to pressure the Bank to remove perceived impediments to faster disbursements. And the Bank needs to better ‘compete’ with other international financial institutions for other reasons as well, including the fact that its operating budget is derived from the margin it receives on its lending. The implications of reduced lending, discussed later in this brief, include a reduced subsidy from IBRD to IDA, a push for results-based lending, and pressure to focus on fewer, larger projects with better economies of scale.
Lending, of course, it not the only measure of the Bank’s influence. The Bank also continues to plays a key role as a development policy expert, and other international financial institutions often benchmark their policies and practices against the Bank’s. But declining lending volumes may jeopardize this form of influence as well. As Phillips (2009:11) argues, “the “split between money and knowledge is in fact quite complex, since…money leverages knowledge by
9. 9
providing it with a transition vehicle and a high profile in the eyes of the governments that approve projects.”
To counter these trends, President Kim announced recently that the maximum loan book IBRD can support will increase by $100 billion, reaching $300 billion in a decade (World Bank 2014). This will allow IBRD leading to nearly double, from current levels of around $15 to $26 or $28 billion per year. This increase will not be financed by a capital increase but changes to minimum equity-to-loan ration, allowing the World Bank to take on more loans relative to its total capital. IBRD also plans to increase the single borrower limit by $2.5 billion for Brazil, China, Indonesia, India, and Mexico, while making slight changes to loan terms. In total, World Bank Group lending could increase to $70 billion over the next decade. This increased lending will finance efforts to advance the twin goals advanced in the World Bank’s new corporate strategy: ending extreme poverty and building shared prosperity, and will likely require more rapid disbursement of loans and increased sale of advisory services. President Kim plans to do this while cutting $400 million in costs over three years (about 8% of total spending).
B. Type of Lending
Eligible World Bank members may receive support from IBRD, IDA, or both. Currently, 79 countries are eligible for IBRD lending, 64 countries are eligible for IDA financing, and 17 countries are eligible for a blend of IBRD and IDA financing (IBRD 2013; IDA 2013).
IBRD offers several loan products, but the most common is the IFI Flexible Loan. These loans have maturities of up to 30 years, a lending rate set at 6-month LIBOR plus either a fixed or variable spread, and a front-end fee of 25 basis points. Countries are eligible for concessional IDA financing (credits) or outright IDA grants on the basis of lack of creditworthiness and relative poverty. The current operational cutoff for IDA eligibility is a per capita 2011 GNI of $1,195 (with an exception for small island states). That said, there is no automatic graduation rule linked to per-capita income—the operational cutoff is only a trigger for initiating broader discussions about continuing IDA eligibility.
Table 5 describes the kinds of financing available from IDA. On average, over the last five years, about 20% of IDA’s lending commitments have been in the form of outright grants.
Table 5: IDA loan terms Loan Terms Interest Service Charge
IDA only
40 yrs including 10 yr grace period
0
75 basis points
Blend
25 yrs including 5 yr grace period
1.25%
75 basis points
Blend (hard terms)
25 yrs including 5 yr grace period
1.5%
75 basis points
Source: IDA (2013)
World Bank lending can be differentiated into three categories: investment lending, development policy lending, and results-based lending. Investment lending focuses on
10. 10
providing the goods and services needed for development over the longer term. Physical infrastructure was the initial focus of this kind of lending, but investment lending now supports social infrastructure and institutional capacity building as well. Development policy lending or development policy operations (once called adjustment lending), on the other hand, supports reforms to government policy. Initially focused on macroeconomic policy (“structural adjustment”), adjustment lending now supports sectorial, structural, and social reforms.
Adjustment lending is a small part of IDA’s portfolio, typically accounting for less than 20% of its lending and accounting for only $1.9 billion, or 12% of its lending in 2013 (IDA 2013). Adjustment lending has played an increasingly important role at IBRD, however. In 1980, less than 4% of the IBRD portfolio was adjustment lending, a figure that had increased to 11% by 1985. By the early- to mid-1990s, adjustment lending reached 20-25% of total IBRD lending (World Bank 2001). Since then, adjustment lending has continued to increase.
Figure 2 shows IBRD’s lending by lending type over the past 15 years. As the graph shows, the mix of investment and adjustment lending now varies considerably by year, but with no real discernible pattern. Development Policy Operations have averaged 40% of IBRD lending over the past 15 years. In 2013, IBRD committed $8.1 billion in investment lending (53%) and $7.1 billion for development policy operations (46%). For the Bank as a whole, development policy lending accounted for 35% of total commitments in 2012. Table 6 shows the top recipients of this type of lending at the IBRA and IDA in 2013.
Figure 2: IBRD lending by type, 2000-2013
Source: IBRD (2013)
0
10
20
30
40
50
60
70
80
90
100
Percent
Program-for-Results
Development Policy
Operations
Investment Lending
11. 11
Table 6: Top Recipients of IBRA and IDA Development Policy Lending, 2013 Development Policy Operations: IBRD Country Number Value (million USD)
Brazil
5
1,650
Poland
1
1,308
Turkey
1
800
Colombia
3
600
Morocco
4
593 Development Policy Operations: IDA Country Number Value (million USD)
Myanmar
1
440
Vietnam
3
370
Tanzania
2
175
Rwanda
2
100
Nigeria
1
100
Mozambique
2
100
Malawi
2
100
In January 2012, IBRD and IDA announced a new results-based lending instrument, called Program-for-Results (P4R). The Bank provides funds to governments for programs that support government projects, but the disbursement of funds is linked to the achievement of measureable and verifiable development results. The Bank hopes P4R will help build capacity of partner countries, engender institutional change, reduce fraud and corruption, and enhance overall development effectiveness. Table 7 shows P4R commitments over time, including forecasted commitments for 2014.
Table 7: Program for Results Lending (million USD) Organization 2012 2013 2014
IBRD
300
66
990
IDA
60
710
1,350
Total
630
776
2,350
In response to civil society concerns, the Bank agreed to a two-year pilot program for P4R, capping disbursements at 5% of total lending and prohibiting the use of P4R for Category A projects (those with the highest social and environmental risk). P4R programs do no not require the application of Bank safeguards; instead, they rely on borrowers’ social and environmental management systems to manage risks. While the Bank makes information about each program publically available, each borrower decides what information about particular program activities will be publically available.
12. 12
The Bank is currently undertaking a review of the eight approved P4R projects and the 16 under preparation, with a draft expected by the end of the fiscal year. But experience with P4R has been very limited. As of October 2013, only $19 million had been disbursed against achieved results (World Bank 2013). The Bank hopes P4R will be part of a broader effort to move from ‘compliance’ to ‘results’ and to improve country ownership. It has already proved popular with countries for reducing transaction costs and promoting greater country ownership. Many important questions about P4R remain. It is not yet clear how well results can be measured and verified. The program’s transparency, supervision, and accountability have also been questioned. The Bank’s suite of safeguard systems do not apply to the program, and the operational policy governing P4R does not clearly specify how alternatives at the country level will be applied. Nevertheless, some analysts have suggested P4R could eventually account for 15% to 33% of total lending (BIC 2012).
C. Beneficiaries of Lending
Figure 3 shows the distribution of Bank lending by region. With the exception of smaller flows to the Middle East and North Africa, bank lending is more or less evenly distributed. Africa, however, receives almost no money from IBRD, while Europe and Central Asia and Latin America and the Caribbean receive very little money from IDA.
Figure 4 shows the distribution of Bank projects by region. The picture that emerges is similar, but shows that IDA tends to have more projects with smaller amounts of money.
Figure 3: World Bank Commitments by Geographic Region, 2013
$42
$4,591
$3,661
$4,769
$1,809
$378
$8,203
$729
$2,586
$435
$249
$4,096
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Africa
East Asia and
Pacific
Europe and
Central Asia
Latin America
and Carribbean
Middle East
South Asia
Millions of USD
IBRD
IDA
$8,245
$5,320
$6,247
$5,204
$2,058
$4,474
13. 13
Figure 4: World Bank Operations by Geographic Region, 2013
Table 8 shows the top 10 recipients of cumulative IBRD, IDA, and total World Bank lending between 1945 and 2013. Both IBRD and IDA lending has tended to be heavily concentrated in a handful of countries; funding for the 10 largest lending recipients accounts for more than 50% of total cumulative funding.
Table 8: Cumulative Lending, 1945-2013 (millions of USD) IBRD IDA World Bank (IBRD+IDA)
Brazil
56,268
India
44,474
India
93,137
Mexico
52,859
Bangladesh
19,656
Brazil
56,268
India
48,663
Pakistan
15,845
Mexico
52,859
Indonesia
45,423
Vietnam
15,122
China
52,392
China
42,445
Ethiopia
11,499
Indonesia
48,299
Turkey
36,277
China
9,947
Turkey
36,455
Argentina
29,277
Tanzania
9,633
Argentina
29,227
Colombia
19,449
Nigeria
9,573
Pakistan
24,207
South Korea
15,472
Ghana
7,611
Bangladesh
19,702
Philippines
15,102
Kenya
7,341
Colombia
19,469
subtotal
361,235
subtotal
150,701
subtotal
432,015
cumulative lending
586,201
cumulative lending
268,500
cumulative lending
854,701
% of total
61.6
% of total
56.1
% of total
50.5
Source: IBRD (2013)
4
25
24
28
9
2
91
22
18
13
7
33
0
10
20
30
40
50
60
70
80
90
100
Africa
East Asia and
Pacific
Europe and
Central Asia
Latin America
and Carribbean
Middle East
South Asia
Number of Operations
IBRD
IDA
47
42
41
16
35
95
14. 14
Table 9 shows the top 10 recipients of IBRD and IDA lending in FY2013. A few differences between table 4 and table 5 are suggestive of broader changes in the recipients of World Bank financing. Korea, for example, no longer takes new IBRD funding. IBRD has stepped up funding for eastern European and central Asian countries like Romania, Poland, and Kazakhstan. In the IDA column, Kenya and Mozambique, two high growth emerging markets in sub-Saharan Africa, replace China (no longer using IDA financing) and Ghana.
Much has been made about the future of the World Bank’s relationship with middle income countries, and this is going to be a key question for the Bank to address going forward. President Jim Yong Kim has expressed strong support for a continued engagement with middle-income borrowers.
Table 10 shows the top IBRD borrowers by share of loans outstanding over the last four years. Seven of the top borrowers this year would have made the same list a decade ago. This table is included to show that the change in composition of principal borrowers is a very slow process.
Table 9: Top 10 new IBRD and IDA commitments 2013 (USD millions) IBRD Amount IDA Amount
Brazil
3,076
Vietnam
1,982
Indonesia
1,721
Bangladesh
1,567
China
1,540
Ethiopia
1,115
Poland
1,308
India
948
Turkey
1,301
Pakistan
744
Colombia
600
Kenya
615
Morocco
593
Tanzania
606
Djibouti
585
D.R. Congo
532
Yemen
500
Myanmar
520
Uruguay
408
Mozambique
337
Source: IBRD (2013); IDA (2013)
Table 10: Top IBRD Borrowers by Share of Loans Outstanding 2013 2012 2011 2010 Country $ bn % Country $ bn % Country $ bn % Country $ bn %
Mexico
14.9
10.5
Mexico
13.6
10.1
China
13
9.8
China
12.9
10.7
Turkey
12.9
9.1
China
13.1
9.8
Turkey
12.9
9.8
Brazil
11.3
9.4
China
12.9
9.1
Turkey
12.7
9.5
Mexico
12.2
9.2
India
10.8
9
Indonesia
12.4
8.7
India
11.7
8.7
India
11.4
8.6
Mexico
10.5
8.7
India
11.9
8.4
Brazil
10.1
7.5
Brazil
10.4
7.9
Turkey
10.2
8.5
Brazil
11.6
8.2
Indonesia
9.9
7.4
Indonesia
8.9
6.8
Indonesia
7.6
6.3
Columbia
7.8
5.5
Columbia
7.5
5.6
Colombia
7.5
5.6
Colombia
7.2
6
Poland
6.7
4.7
Poland
5.6
4.2
Poland
5.6
4.2
Argentina
5.3
4.4
Source: IBRD (2013); Moody’s (2012)
15. 15
WORLD BANK SOURCES OF FUNDING
The World Bank’s lending, investments, and general operations are funded by equity (paid-in capital and retained earnings) and borrowing (debt issuance).
Equity
Each World Bank Group institution is owned by member countries—its shareholders. Ownership and therefore voting rights are proportional to each shareholder’s capital contributions. Table 11 and Table 12 show the top 15 shareholders of the IBRD and the IDA, respectively.
The World Bank is governed by a Board of Governors (one from each country) and a Board of 25 Executive Directors. By convention, the Executive Directors of IBRD, IDA, IFC, and MIGA are the same. This means that although the top shareholders for each institution may vary, relative voting power based on IBRD contributions tends to determine influence across the World Bank Group.
Table 11: Top 15 Subscriptions to IBRD Capital Stock as of June 30, 2013 # Member Total Subscription Amount (million USD) Paid In (million USD) Callable (million USD) % of Votes
1
United States
35,814
2,229
33,585
15.19
2
Japan
19,958
1,222
18,736
8.48
3
China
12,859
775
12,084
5.47
4
Germany
10,522
652
9,900
4.50
5
France
9,409
853
8,826
4.01
6
United Kingdom
9,409
602
8,807
4.01
7
Canada
7,040
433
6,607
3.01
8
India
6,845
413
6,432
2.93
9
Italy
5,663
351
5,312
2.43
10
Russia
5,529
334
5,195
2.37
11
Saudi Arabia
5,529
335
5,194
2.37
12
Netherlands
4,781
295
4,486
2.05
13
Brazil
4,104
246
3,859
1.77
14
Belgium
3,910
240
3,670
1.68
15
Spain
3,809
233
3,576
1.64
Source: IBRD (2013)
16. 16
Table 12: Top 15 IDA Subscriptions and Contributions as of June 30, 2013 # Member Total Subscription Amount (million USD)
1
United States
46,543
2
Japan
40,890
3
United Kingdom
24,976
4
Germany
24,068
5
France
15,899
6
Canada
10,228
7
Italy
9,552
8
Netherlands
8,201
9
Sweden
7,460
10
Australia
4,077
11
Belgium
4,051
12
Switzerland
3,954
13
Norway
3,642
14
Denmark
3,387
15
Spain
3,161
Source: IDA (2012)
IBRD members purchase shares of the bank, but pay in only 6% of the cost of shares purchased. The rest of the capital remains “on call.” If the IBRD suffers large losses—for example, if several large borrowers defaulted on their loans at the same time—the Bank could collect “on call” capital from its shareholders in order to pay its creditors, although the Bank has never needed to make a call on capital.
In April 2010, World Bank members agreed to the first capital increase 1988 (Beattie 2010). Members authorized a General Capital Increase of $58.4 billion ($3.5 billion paid in) and a Selective Capital Increase of $27.8 billion ($1.6 billion paid in). This will increase the Bank’s authorized capital to $278.4 billion and increase the Bank’s $11 billion of paid-in capital by $5.1 billion. Members also agreed to reforms that will increase the voting power of developing countries, from 44.06% to 47.19%. As part of the deal, China has become the third-largest shareholder, after the United States and Japan. The complements prior reforms enacted in 2008, when the voting power of developing countries was increased by 1.46% and an additional 25th seat on the Board of Executive Directors was added for sub-Saharan Africa, bringing the region’s total number of seats to three.
It is highly unlikely that the Bank will receive another capital infusion in the near future. President Kim recently told reporters that he sees “no appetite” for another capital increase. “It’s a tough environment,” he said. “I think it’s not the time for us to have a serious discussion about a capital increase” (Rastello 2012).
17. 17
IDA raises funds through “replenishments” that occur every three years. The level of funding it receives depends on how much its donors commit. The sixteenth IDA replenishment, finalized in December 2010, netted SDR 32.8 billion ($49.3 billion) for FY2012-2014. The seventeenth IDA replenishment, recently completed, brought in $52 billion. (SDR, or special drawing rights, are a kind of foreign exchange asset created by the IMF; at current rates, 1SDR = $1.53; see IMF 2012.) This amount includes transfers from the IBRD and IFC of $3 billion. Table 13 provides the history of IDA replenishments.
Table 13: IDA Replenishments Replenishment Period Amount (million SDR)
Initial
1961-1964
763
IDA1
1965-1968
924
IDA2
1969-1971
1,428
IDA3
1972-1974
2,738
IDA4
1975-1977
4,218
IDA5
1978-1980
6,193
IDA6
1981-1984
9,549
FY84 Account
1984
1318
Special Account
1984
519
IDA7
1985-1987
8,997
Special Facility for Africa
1986-1988
921
IDA8
1988-1990
1,677
IDA9
1991-1993
14,049
IDA10
1994-1996
16,274
Interim Trust Fund
1997
2228
IDA11
1997-1999
12,395
IDA12
2000-2002
15,312
IDA13
2003-2005
17,833
IDA14
2006-2008
22693
Multilateral Debt Relief Initiative
2007-2044
22,737
IDA15
2009-2011
27,300
IDA16
2012-2014
32,800
IDA 17
2015-2018
36,550
Source: IDA (2012); Marshall (2008)
Both IBRD and IFC make transfers to IDA on a yearly basis. Over the IDA 17 period, about $3 billion will be transferred from IBRD and IFC, an amount that is equal in real terms to transfers in the prior period. As IBRD profitability declines (see “Operating Income” below), its ability to fund IDA will be constricted. Some of the shortfall could be offset by rising IFC transfers to IDA, but any significant increase in IDA funding will require increasing donor contributions.
18. 18
Borrowing
The World Bank raises the majority of its capital by issuing debt to both institutional and retail investors. Since 1947, the Bank has issued bonds in 54 different currencies, and in FY2012 it issued bonds in 23 currencies. Funding levels depend on lending activity as well as broader macroeconomic conditions. Bond maturities generally range from 2 to 10 years, and the issue size is typically USD$1-3 billion. Moody’s rates the World Bank Aaa, the highest possible rating. It cites the Bank’s strong capital base, status as a preferred creditor, and sound financial management.
Operating Income
The World Bank’s operating income depends primarily on the margin it makes on the loans it issues (net of funding costs), the return on its investments, and its noninterest expenses, of which the largest is staff costs. Operating income has been positive every year since Moody’s began evaluating the Bank, and it has averaged around $1.1 billion over the past five years. Operating income was $876 million in 2013.
Figure 5 shows the Bank’s real loan income has declined over the past decade. Figure 6 shows that this has translated into a decline in real operating income. As Moody’s notes, “IBRD’s profitability is low relative to historical averages, but for a development-mandated institution Moody’s primary consideration of profitability is not the magnitude, but that it does not contribute to the erosion of the capital base” (Moody’s 2012). Declining operating income is largely a function of declining real lending.
Figure 5: IBRD Loan Income (millions of 2013 USD)
Note: Amounts adjusted to 2013 USD using the US CPI-All Urban Consumers index (base 1982-1984)
Source: IBRD (2013)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
Millions of 2013 USD
19. 19
Figure 6: IBRD Operating Income (millions of 2013 USD)
Note: Amounts adjusted to 2013USD using the US CPI-All Urban Consumers index (base 1982-1984)
Source: IBRD (2013)
In order to avoid further decreases in operating income given current constraints on lending, the Bank could increase its loan price (not likely given competition from other lending sources), reduce transfers (especially to IDA), reduce overheads (including staffing costs and other administrative expenses), or increase lending volume.
INTERNATIONAL FINANCE CORPORATON
The International Finance Corporation focuses on private sector investment in emerging markets. Its three main lines of business include investment services, advisory services, and asset management. Table 14 shows nominal IFC investments by type over the last five years.
In FY2013, IFC committed $18.3 billion of its own funds in loans and equity investments, an increase of nearly 75% in nominal terms since 2009. President Kim announced recently that IFC lending could double over the next 10 years (World Bank 2014). IFC commitments include both loans (typically with maturities of 7 to 12 years) and equity investments (typically a 5% to 20% stake). IFC also offers guarantees and other forms of structured finance (IFC 2013).
IFC also tracks “core mobilization,” financing from other sources (not IFC money) that becomes available to IFC clients as a result of IFC’s involvement in a project. This includes a variety of financial tools, such as parallel loans (arranged by IFC for a fee, but where IFC is not the lender) and loan participation (IFC acts as the lender of record and administers the entire loan, but the loan includes funding from non-IFC sources). Core mobilization was $6.5 billion in 2013, a nearly 65% increase in nominal terms over the past five years
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
Millions of 2013 USD
20. 20
Table 13: IFC investments and mobilization by type (millions of USD) Type 2009 2010 2011 2012 2013
IFC Commitments
10,547
12,664
12,186
15,462
18,349
Loans
5,959
5720
4,991
6,668
8,502
Equity
2,069
2974
1,968
2,282
2,732
Guarantees/other
2,519
3969
5,227
6,512
7,079
Core Mobilization
3,964
5378
6,474
4,896
6,504
Loan Mobilization
2,401
3,157
4,718
3,505
3,578
AMC
8
236
454
437
768
Other Initiatives
1,555
1,985
1,302
954
2,158
Total
14,511
18,042
18,660
20,358
24,853
Source: IFC (2013)
IFC’s Asset Management Company (AMC) mobilizes and manages third-party capital from institutional investors, like sovereign finds and pension funds. AMC manages seven funds, with $5.5 billion under management. These are (1) the Equity Capitalization Fund and (2) the Sub-Debt Capitalization Fund, which both strengthen banks, (3) the ALAC Fund, investing in a range of sectors across Africa, Latin America, and the Caribbean, (4) the African Capitalization Fund, investing in commercial banks, (5) the Russian Bank Capitalization Fund, investing in commercial banks, (6) the Catalyst Funds, investing in emerging market private equity funds focused on climate change and resource efficiency, and (7) the Global Infrastructure Fund, making debt and equity investments in emerging market infrastructure.
IFC lending has rapidly increased as a proportion of total World Bank Group lending over the past decade, indicating a strong belief in the importance of private sector investment for international development. Figure 7 demonstrates this. In 2000, IFC commitments accounted for less than 13% of total World Bank Group commitments. This rose to 30% over the next eight years. While IFC lending continued to increase through the global financial crisis, it did not do so at the same rate as IBRD lending, so the share of IFC commitments relative to World Bank Group commitments dropped. But over the last three years, IFC lending has continued to rise as IBRD lending has fallen, and IFC now accounts for nearly 35% of total World Bank Group commitments. If MIGA is included in this calculation, around 40% of World Bank Group investments now support private sector ventures.
A significant portion of IFC’s investments support financial intermediaries (third party financial institutions like banks or private equity funds, and the percentage of IFC’s total investment going into financial intermediaries is also increasing. In 2013, more than 60% of IFC’s commitments supported financial intermediaries. Analysis by the Bretton Woods Project (2014) shows that $36 billion has been invested by the IFC in financial intermediaries since 2009.
21. 21
Figure 7: IFC commitments as percentage of total World Bank Group commitments
Source: IFC (2013)
MULTILATERAL INVESTMENT GUARANTEE AGENCY
The goal of the Multilateral Investment Guarantee Agency (MIGA) is to stimulate foreign direct investment into developing countries. It does this providing political risk insurance (guarantees) to protect against expropriation, breach of contract, non-honoring of financial obligations, currency inconvertibility, terrorism and civil disturbance, and other non- commercial risks. In 2013, MIGA issued $2.8 billion in guarantees, with an additional $3.5 million issued under MIGA-administered trust funds (MIGA 2013). This is double (in nominal terms) the $1.4 billion in guarantees issued five years ago, in 2009.
Over the past five years, MIGA has supported about 27 new projects and 33 total projects per year, and it supported 30 total projects and 26 new projects in 2013. By financing volume, nearly three quarters of MIGA guarantees issues in 2013 supported IDA-eligible counties, including more than 40% to conflict-affected states. Nearly 55% supported projects in Sub- Saharan Africa. Recently, MIGA support has shifted to infrastructure (46% of new volume in 2013) and oil and gas (23% of new volume), moving away from the financial sector (17% of volume in 2013 versus 89% following the 2008 financial crisis).
MIGA’s strategy for 2014-2017 calls for work on infrastructure, power generation, transportation, manufacturing, agriculture, and finance. MIGA will work to expand its product line and reach a broader client base. It will continue to prioritize work in IDA-eligible countries and fragile and conflict-affected states.
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Percent of total WBG lending
22. 22
TRUST FUNDS
Trusts funds were initially designed to give bilateral donors a mechanism for co-financing specific projects. For example, the first World Bank trust fund, established in 1960, allowed co- financing of the Indus Basin Project in Pakistan. In the 1990s, the trust fund model expanded as the Bank took on new roles, particularly in the environmental arena. But truly explosive growth in trust funds has happened only over the last half decade. Since 2007 alone, the total value of World Bank Group trust funds has increased almost 73%, growing from $17.3 billion to $29.2 billion (World Bank 2012c). Trust funds are especially important part of the Bank’s strategy for addressing global public goods issues, like immunization or climate change, that are not easily addressed through the Bank’s traditional lending instruments.
The increasing importance of trust funds at the World Bank mirrors broader changes in global aid design, particularly the rise of so-called “multi-bilateral aid”—bilateral funding earmarked for a particular purpose that is funneled through multilateral agencies. Multi-bi aid increased from $9 billion in 2007 to $16.7 billion in 2010, and it now accounts for around 12% of gross ODA (excluding debt relief). Multi-donor trust funds constitute about 50% of all Bank trust funds, compared to 30% just five years ago. About a quarter of all multi-bi aid flows through the World Bank.
Table 15 provides a snapshot of the World Bank Group’s three major types of trust funds categories: IBRD/IDA trust finds, financial intermediary funds (FIFs), and the IFC trust funds.
Table 16 shows how the World Bank Group’s trust funds changed between 2008 and 2012, in absolute terms and as a percentage change from 2008.
Table 15: Overview of World Bank Group Trust Funds, 2012
Source: World Bank (2012c)
Table 16: Change in World Bank Group Trust Funds, 2012 v. 2008
Number Funds Held (USD billions) FY12 Contributions (USD billions) FY12 Disbursements (USD billions) IBRD/IDA TFs
-37 (-4.8%)
+1.0 (+11.5%)
+0.4 (+10.0%)
+1 (+30.3%) FIFs
+5 (+10.2%)
+7.2 (+67.9%)
+2.7 (+60%)
+2 (+62.5%) IFC TFs
+47 (+22.0%)
+0.5 (+100%)
+0.1 (+50%)
+0.1 (+50%) TOTAL
+45 (+4.4%)
+8.5 (+41%)
3.2 (+36.2%)
+3 (+44.7%)
Source: World Bank (2012c)
Number Funds Held (USD billions) 2012 Contributions (USD billions) 2012 Disbursements (USD billions) IBRD/IDA TFs
720
9.7
4.4
4.3 FIFs
54
17.8
7.2
5.2 IFC TFs
290
1
0.3
0.3 TOTAL
1064
29.2
11.9
9.7
23. 23
A. IBRD/IDA Trust Funds
IBRD/IDA trust funds account for 33% of World Bank Group trust funds by value. Since 2008, funds held in trust in IBRD/IDA trust funds have increased from $8.7 billion to $9.7 billion, cash contributions have increased from $4.0 billion to $4.4 billion, and disbursements have increased from $3.3 billion to $4.3 billion (World Bank 2012c; IEG 2011). Ongoing efforts to consolidate trust funds caused the overall number of IBR/IDA trust funds to decline to 720 in 2012, down from a peak of 780 in 2010. While 84 new trust funds were established, 122 existing funds were closed (World Bank 2012c).
The IBRD and IDA use two types of trust funds: Bank-Executed Trust Funds (BETFs) and Recipient-Executed Trust Funds (RETFs). BETF disbursements directly support Bank programs, typically in ‘knowledge activities’ like non-lending technical assistance. A significant portion of BETF disbursements are used to support Bank supervision of RETF-funded projects. BETF expenditures reached $646 million in 2012, equal to 23% of total World Bank administrative expenditures.
Funds in RETFs, on the other hand, are passed on to third parties for development activities that are usually monitored and evaluated by the Bank. RETF disbursements reached $3.6 billion in 2012, up 13% from the year before. They accounted for 10% of the World Bank’s total project financing (a 9% increase from 2011). Two thirds of RETF disbursements support activities in IDA countries.
B. FIFs
The World Bank’s role in financial intermediary funds is as a trustee: it receives, holds, invests, and transfers funds, often to multiple implementing agencies. As a trustee, the World Bank does not supervise the use of funds, but it may serve as a partner in implementation. The Bank may also provide additional administrative or financial services or serve as the Secretariat. FIFs typically support global programs, on topics like health (51% of FIFs) and the environment and climate change (32% of FIFs) (World Bank 2011c).
FIFs account for 61% of World Bank Group trust funds by value, and they are also the major source of trust fund growth at the Bank. Over the past six years, funds held in trust in FIFs have more than doubled, from $8.9 billion in 2007 to $17.8 billion in 2012. Cash contributions from donors have also more than doubled over the same period, and transfers to implementing agencies and beneficiaries have increased by more than 50%. Some 96% of contributions are from governments. The United States is the largest donor, with cumulative contributions of $6.4 billion over the last five years. Other big contributors are the UK ($3.2 billion), France ($2.9 billion), and Japan ($2.3 billion).
As table 17 illustrates, the four largest FIFs hold 86% of all FIF funds. Still, three new FIFs were established in 2012: the Eastern and Southern Mediterranean Financial Intermediary Trust Fund
24. 24
(EBSM), the Global Partnership for Education Fund (GPEF), and the Green Climate Fund Trust Fund.
Table 17: The Four Largest FIFs Fund Established Cumulative Funding (USD billions)
Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM)
2002
22.5
Global Environment Facility (GEF)
1991
11.3
Debt Relief Trust Fund (DRTF)
1996
7.7
Climate Investment Funds (CIF)
2008
5.2
Other
---
7.4
Total
---
54.1
Source: World Bank (2012c); World Bank (2011c)
C. IFC TFs
IFC trust funds account for only about 1% of the total value of the World Bank Group’s trust funds, but they are important because they support 80% of IFC’s advisory services. IFC offers these services to businesses and governments in four categories: access to finance, investment climate, public-private partnerships, and sustainable business.
The number of IFC trust funds increased from 213 in 2008 to 290 in 2012, and the total value of IFC trust funds doubled over that same period, from $0.5 billion to $1 billion. Disbursements peaked at $1 billion in 2010, but are typically around $0.3 billion per year (World Bank 2012c).
Over the past five years, the United Kingdom has been the largest donor to IFC trust funds, providing 25% of all contributions. The MasterCard Foundation was the 4th largest donor in 2012, providing $37.5 million for the Partnership for Financial Inclusion in Sub-Saharan Africa.
D. Trust Fund Reform
From the perspectives of the World Bank, development donors, and development recipients, trust funds have both advantages and disadvantages (see World Bank 2012c; World Bank 2011c; IEG 2011).
Advantages: Trust funds…
Help fill gaps in existing development efforts by, for example, providing funds to post- disaster or post-conflict countries that are ineligible for IBRD/IDA support or by catalyzing investment in global public goods like climate change mitigation
Promote the coordination/harmonization of bilateral aid efforts and support the formation of new development partnerships
Secure broader support for and complement existing Bank work
25. 25
Allow doors to use the broader capacities of multilateral institutions
Reduce transaction and administrative costs and provide economies of scale
Disadvantages: Trust funds…
Are often not well-integrated into other Bank efforts and activities or into existing country programs
Often do not allow recipient countries to participate in their design and use, particularly for global funds
Reduce the visibility of individual donors and therefore the credit they receive
Reallocate existing ODA but do not increase it
Reduce transparency, especially because data is difficult to compile and sources conflict
Are not (or are not as easily) subjected to World Bank safeguards
In 2010, the Independent Evaluation Group undertook an evaluation of the World Bank’s trust fund portfolio and proposed a variety of changes, some of which are now being implemented (IEG 2011). For example, the World Bank is creating Umbrella Facilities in an effort to better align the interests of trust fund donors with existing Bank priorities. Only a few such facilities have been established so far.
STAFFING
By the time of the first annual World Bank meeting in Savannah, Georgia in 1946, the World Bank had 38 member countries and 72 staff members (Phillips 2009). By the 1960s, as Bank lending began to pick up, so did the growth in the size of its staff. Between 1960 and 1970, the number of professional staff more than tripled over the decade, growing from 283 to 917 (Mallaby 2004). Staff growth continued in the 1970s as President Robert MacNamara added new departments and responsibilities: the Rural Development Department in 1973, the Urban Population Department in 1975, and the Population, Health, and Nutrition Department in 1979.
Jim Wolfensohn also oversaw growth in the Bank’s staff as it expanded to new areas, especially the environment (in 1985 the Bank had only five environmental staff). Wolfensohn also oversaw a push to move staff out of the Washington, D.C. headquarters and into the field. In 1995, for example, none of the Bank’s country directors were based outside of Washington. By 2003, 71% of them were. Today, the World Bank employs some 10,000 people, around 40% of whom work in field offices in 110+ countries.
The Bank does not publish detailed data on its staff, but it is possible to make some observations based on its financial statements. Staff costs are lower now than they were in the 1990s, but the Bank is increasingly reliant on outside consultants for its work. The average staff cost over the last four years has been $490 million per year. In the first four years of the 1990s, by comparison, the average staff cost was more than $660 million per year (or more than $1100 million per year in real terms). Consulting costs in the early 1990s, though, averaged $84
26. 26
million per year (or $130 million per year in real terms). In 2012, the Bank spent more than $250 million on consultants. Of course, it is not clear from existing data to what extent changes in staff costs correlate with the number of staff or reflect instead cuts to salaries and benefits. It is also not clear how changes in staff costs have impacted staff quality.
An ongoing reorganization and restructuring process is leading to the creation of 14 global practices, working on areas like agriculture, environment and natural resources, and governance. These global practices replace the previous “sector” structure and are designed to reduce silos that prevented collaboration and exchange of knowledge and learning across regions and World Bank group institutions. The Bank will also have “cross cutting solution areas: climate change, gender, jobs, public private partnerships, and fragility, conflict, and violence (Harding 2014; FT 2014). The reorganization has also brought the departure of several senior Bank managers.
A recent staff survey illustrates the Bank staff feel uncertainty about the direction in which the Bank is headed (Gillison 2014). Among the findings are that 60% of staff think the Bank places more emphasis on the “number and volume of transactions” than on development. Some 58% do not understand the direction chosen senior management, and 68% do not think senior management acts as a unified team. Less than 40% of Bank staff thinks that they are rewarded according to their job performance. It remains to be seen whether President Kim can successfully shepherd the World Bank through this reorganization process and what sort of institution will emerge when this is completed.
27. 27
SOURCES
AfDB. (2012). Annual Report.
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/AfDB%202012%20EN_WEB.pdf
Asian Development Bank. (2013). Annual Report.
http://www.adb.org/sites/default/files/adb-financial-report-2013.pdf
Beattie, Alan (2010). World Bank wins rise in capital. Financial Times.
http://www.ft.com/cms/s/0/c8b8937e-5095-11df-bc86-00144feab49a.html
Bank Information Center. (2012). P4R Update.
http://www.bicusa.org/updates/p4r-update-world-bank-approves-program-for-results- policy/
BNDES (2012). Performance.
http://www.bndes.gov.br/SiteBNDES/bndes/bndes_en/Institucional/The_BNDES_in_Numbers/
Bretton Woods Project. (2014). Follow the Money: The World Bank Group and the Use of
Financial Intermediaries. http://www.brettonwoodsproject.org/2014/04/follow-the- money/
China Development Bank (2011). Annual Report 2011 Financial Summary.
http://www.cdb.com.cn/english/NewsInfo.asp?NewsId=4103
Dyer, Geoff et al. (2011). China’s lending hits new heights. The Financial Times.
http://www.ft.com/intl/cms/s/0/488c60f4-2281-11e0-b6a2-00144feab49a.html
European Bank for Reconstruction and Development. (2012). Annual Report.
http://www.ebrd.com/downloads/research/annual/fr12e.pdf
Financial Times. (2014). Editorial: Restructuring Hell at the World Bank. April 9, 2014.
http://www.ft.com/intl/cms/s/0/9244beca-bff5-11e3-b6e8- 00144feabdc0.html#axzz30sr7H8oO
Gillison, Douglas. (2014). World Bank staff fear blowing whistle, survey finds. 100 Reporters.
http://100r.org/2014/03/world-bank-staff-fear-blowing-whistle-survey-finds/
Harding, Robin. (2014). World Bank: Man on a mission. Financial Times. April 7, 2014.
http://www.ft.com/intl/cms/s/0/012f15d6-b8fa-11e3-98c5- 00144feabdc0.html#axzz30sr7H8oO
IDB. (2012). Basic facts. http://www.iadb.org/en/about-us/basic-facts,6550.html
IBRD. (2013). Annual Reports and Financial Statements. http://go.worldbank.org/UGHN76SCI0
ICSID. (2013). Annual Reports and Financial Statements.
https://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDPublicationsRH&actionVal=ViewAnnualReports
IDA. (2013). Annual Reports and Financial Statements. http://go.worldbank.org/UGHN76SCI0
Independent Evaluation Group. (2011). Trust Fund Support for Development: An Evaluation of
the World Bank’s Trust Fund Portfolio. http://ieg.worldbankgroup.org/content/dam/ieg/tf_eval.pdf
28. 28
IFC. (2013). Annual Reports and Financial Statements.
http://www1.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report
IMF. (2012). Factsheet: Special Drawing Rights.
http://www.imf.org/external/np/exr/facts/sdr.htm
Mallaby, Sebastian. (2004). The World’s Banker: A Story of Failed States, Financial Crises, and the
Wealth and Poverty of Nations. New York: Penguin Press.
Marshall, Katherine. (2008). The World Bank: From Reconstruction to Development to Equity. New
York: Routledge.
MIGA. (2013). Annual Reports and Financial Statements.
http://www.miga.org/documents/AR13_Highlights.pdf
Moody’s. (2012). Credit Analysis: IBRD (World Bank).
http://treasury.worldbank.org/cmd/pdf/Moodys_IBRD_Report_2012.pdf
OECD. (2013). Aid to developing countries rebounds in 2013 to reach an all-time high.
http://www.oecd.org/newsroom/aid-to-developing-countries-rebounds-in-2013-to- reach-an-all-time-high.htm
Phillips, David A. (2009). Reforming the World Bank: Twenty Years of Trial—and Error. New York:
Cambridge University Press.
Rastello, Sandrine. (2012). World Bank’s Kim sees “no appetite” to increase capital. Bloomberg
Businessweek. http://www.businessweek.com/news/2012-10-04/world-bank-s-kim-sees- no-appetite-to-increase-capital
The 1818 Society (2012). The Key Challenges Facing The World Bank President: An Independent
Diagnostic Assessment. http://siteresources.worldbank.org/1818SOCIETY/Resources/World_Bank_Diagnostic_Exercise.pdf
UNCTAD (2012). World Investment Report 2012.
http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/WIR2012_WebFlyer. aspx
World Bank (2014). World Bank President sees $100 billion increase in lending ability to help
end poverty. http://www.worldbank.org/en/news/press-release/2014/04/01/world- president-100-billion-increase-lending-poverty
--------. (2013). Program for Results Two Year Review: Concept Note.
http://documents.worldbank.org/curated/en/2013/11/18662374/program-results-two- year-review-concept-note
--------. (2012a). Annual Report 2012 World Bank Lending Presentation.
http://siteresources.worldbank.org/EXTANNREP2012/Resources/8784408- 1346247445238/8817772-1346257725199/LendingPresentation.pptx
--------. (2012b). The World Bank Investment Opportunities.
http://treasury.worldbank.org/cmd/pdf/IBRDInvestorPresentation.pdf
--------. (2012c). 2012 Trust Fund Annual Report.
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/CFPEXT/0,,contentMDK:23345020~menuPK:9030913~pagePK:64060249~piPK:64060294~theSitePK:299948,00.html
29. 29
--------. (2012d). Migration and Development Brief 19.
http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934- 1288990760745/MigrationDevelopmentBrief19.pdf
--------. (2011a). A Guide to the World Bank, Third Edition. http://hdl.handle.net/10986/2342
--------. (2011b). Program-for-Results Financing: An Overview.
http://www.worldbank.org/ProgramforResults
--------. (2011c). Financial Intermediary Funds: Meeting Global Development Challenges
Through International Partnerships. http://siteresources.worldbank.org/CFPEXT/Resources/299947- 1267555827203/FIFBrochure_FINAL_Sep22.pdf
--------. (2001). Adjustment Lending Retrospective.
http://siteresources.worldbank.org/PROJECTS/Resources/ALR06_20_01.pdf