4. 4/18/2023 4
The Development Challenge
Poorest fifth: 3 % of world expenditures
Richest fifth: 75% of world expenditures
Developed countries spend:
$ 786 billion a year on military expenditures (2004)
$ 283 billion a year on agricultural subsidies (2005)
$ 106 billion in aid to developing countries (2005)
Population growth over the next 25 years
50 million in rich countries
1.5 billion in poor countries
Half of the population is under 25
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Millennium Development Goals
Goal 1: Wipe out extreme
poverty and hunger
Goal 2: Get all children a
primary school
education
Goal 3: Help women get equal
rights and empower them.
Goal 4: Reduce death rate of young children
Goal 5: Improve the health of mothers
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Help countries protect their environments.
Goal 8: Promote a global partnership for
development
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The world is on track globally to
meet the Poverty Reduction Goal
Goal 1- Eradicate Poverty
Population living on less than $1 a day
10
15
20
25
30
1990 1995 2000 2005 2010 2015
Actual path
Goal
%
The Good News…
7. 4/18/2023 7
Goal 1- Sub-Saharan Africa
Population living on less than $1 a day
20
30
40
50
60
1990 1995 2000 2005 2010 2015
History + Forecast
Goal
%
Some regions of the world may be left
behind
The Bad News …
9. 4/18/2023 9
The World Bank
International Bank
for Reconstruction
and Development
established
July 1944, Bretton
Woods.
Mission?
To rebuild Europe
and Japan after
World War II.
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World Bank Early Borrowers
France first to borrow
$250 million to finance
post-war reconstruction
in 1947.
Many current donor
nations such as Austria,
Australia, Denmark,
Italy, Korea, and Greece
were borrowers.
12. 4/18/2023 12
Bank’s Agencies
International Bank
for Reconstruction
and Development
International
Development
Association
International
Finance
Corporation
Mutilateral
Investment
Guarantee Agency
International Center
for the Settlement of
Investment Disputes
World Bank Group
1945 1988
1956
1960 1966
13. 4/18/2023 13
Where does the
money come from?
IBRD raises funds on capital markets
(rate lower than commercial banks).
Donors give money to IDA for the
world’s poorest countries, with
additional money coming from IBRD
profits and repayments.
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Established in 1960, IDA has 165
members countries of whom 82 recipients
which are the world’s poorest countries.
Since inception in 1960, IDA credits and grants
have totaled $161 billion.
IDA14 provides $33 billion over 3 years
(FY2006-2008).
Africa’s share of IDA 14 is 50%.
IDA: A fund for the poorest
countries
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How the World Bank Operates
185 Member
Countries appoint
their Governors
Governors delegate
specific duties to 24
Executive Directors
President of the
World Bank reports
to the Board of
Executive Directors
Office of the
President
Executive
Directors
Board of Governors
16. 4/18/2023 16
Voting Powers of
Executive Directors for IBRD
World Bank Shareholders
United States
16%
Japan
8%
Germany
4%
Russian
Federation
3%
Saudi Arabia
3%
China
3%
United Kingdom
4%
Rest of the World
55% France
4%
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Organizational Structure
Board
Executive
Directors
President
Inspection
Panel
Independent
Evaluation
Jeffrey Gutman
Vice President &
Network Head
Oper. Policy &
Country Serv.
External Affairs
Sr. Vice President
Marwan Muasher
Graeme Wheeler
Managing
Director
Juan Jose
Daboub
Managing
Director
Ngozi
Okonjo-Iweala
Managing
Director
W. Paatii
Ofosu-Amaah
Vice President
& Corporate
Secretary
Vincenzo La Via
WBG Chief
Financial Officer
Ana Palacio
Sr. Vice President
& WBG General
Counsel
Alan Gelb
Acting Sr. Vice
President
& Chief Economist
Institutional
Integrity
Internal
Auditing
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Bank’s Networks
Human Development
Poverty Reduction and Economic
Management
Sustainable Development
Financial and Private Sector
Development
Operations Policy & Country Services
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World Bank Staff
Total Bank staff
numbers about
10,000. 7,000 at HQ
and 3,000 in the field.
170 nationalities
Developing country
nationals represent
55% of total staff.
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1950s (Europe Reconstruction) Physical
1960s (Rural) Natural
1970s (Human Development) Human
1980s (Economic Reform) Financial
1990s (Poverty Reduction) Social
2000s (Governance) Institutional
2007 Sustainable and Inclusive Globalization
Evolving Development
Paradigm
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Comprehensive Development Framework
Multi-Sectoral
Focus on Poverty Reduction
Country Ownership
Beyond Governments
Partnering with other Organizations
A New Approach to
Development
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Today: Six Strategic Themes
1. Poverty and Sustainable Growth
Especially in Africa
IDA: core financing instrument for the 81
poorest countries
2. Post-Conflict States
3. Diversify menu of development
solutions for Middle-income
Countries
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4. Active role in regional and global
public goods
Close cooperation with other agencies – WHO,
UNEP, UNODC, WTO
5. Support advance development and
opportunities in the middle east
region
6. Bank as a “brain trust” of applied
experience
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Information Disclosure (Public Information Centers)
Compliance Mechanisms (Inspection Panel)
Debt Relief
HIPC (26 countries / US$41 billion)
MDRI (19 countries / US$40 billion)
Environmental & Social Safeguard
Poverty Reduction Strategies (PRSP)
WB / IMF joint commitment
60 countries
Community Driven Development (10% portfolio)
Empowerment Agenda (social accountability, civic
engagement)
New Approaches and
Instruments
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Bank’s Main Products
Investment Loans/Credits
Development Policy Lending
Loans/Credits
Guarantees
Other (Non-lending) Products
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What Does the World Bank
Do Today?
In fiscal 2007, $34.3 billion in loans,
grants, equity investments and
guarantees to over 100 developing
countries.
Focus: Poverty Reduction
Africa is priority of World Bank.
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Largest IBRD/IDA Borrowers FY07
Commitments
Borrower $ Millions % of Total
India 3,751 15.2
Argentina 1,749 7.1
China 1,641 6.6
Indonesia 1,159 4.7
Turkey 1,158 4.7
Colombia 1,102 4.5
Pakistan 985 4.0
Nigeria 750 3.0
Vietnam 712 2.9
Africa Regional
Projects
707 2.9
Total 13,714 55.5
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2007 Lending by Region
Europe and Central
Asia
15%
Latin America and
the Caribbean
18%
Middle East and
North Africa
4%
South Asia
23%
Africa
24%
East Asia and
Pacific
16%
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IBRD/IDA Lending by Sector
Fiscal 2007
Agriculture
7%
Transportation
20%
Education
8%
Energy & Mining
7%
Finance
7%
Law & Justice
& Public
Administration
22%
Water, Sanitation, &
Flood Protection
12%
Health & Social
Services
11%
Information &
Communication
1%
Industry & Trade
5%
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About the Bank
Members of the World Bank Group
Organization: structure, Board of Governors,
Executive Directors, Articles of Agreement
and much more…
Partners
History and Archives
37. 4/18/2023 37
About Us
Members of the World Bank Group
Organization: structure, Board of Governors,
Executive Directors, Articles of Agreement
and much more…
Partners
History and Archives
38. 4/18/2023 38
IBRD
185 member countries
Lends to middle income countries
Funds mainly from borrowing on capital markets
Repayment over 15–20 years/3 to 5-year grace
period
Sells bonds in international capital markets
www.worldbank.org/ibrd
39. 4/18/2023 39
IDA
165 member countries
Lends to poorest countries
Funded largely from wealthier government
contributions, with additional funds from IBRD
profits and repayments of earlier IDA credits
Credits carry no interest
Repayment over 35–40 years/10-year grace period
www.worldbank.org/ida
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178 member countries
Private sector
Works to develop capital markets; lends and takes
equity positions; provides advisory services for
privatization, project development and structuring
Loans carry market interest rates
Catalyst to other investors in the private sector
Sells bonds in international capital markets
www.ifc.org
IFC
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MIGA
171 member countries
Promotes foreign direct investment into emerging
economies to support economic growth, reduce
poverty, and improve people’s lives
Offers political risk insurance (guarantees) to
investors and lenders, covering risks including
expropriation, breach of contract, currency transfer
restriction, and war and civil disturbance
Disseminates information on investment opportunities
www.miga.org
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Documents and Reports, and
Operations
Operations: country aggregate reports, strategies, policies
and procedures, procurement, list of debarred firms, etc.
Projects: data on World Bank lending projects from
1947 to present.
Documents and Reports: over 14,000 World Bank full-text
documents
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Data and Statistics
Online databases
Data for Journalists (they can also join the Online Media
Briefing Center)
Reference Tables
Doing Business - provides objective measures of business
regulations and their enforcement across 178 countries
Private Participation database - information on infrastructure
projects with private investment in energy,
telecommunications, transport, and water/sewerage sectors.
Governance
Indicators of Governance and Institutional capacity
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Research and Development
Data and Research - also contains abstracts
of current studies
Topics in Development - provides sources of
information on development topics.
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World Bank Institute
Information on training courses, publications,
Global Distance Learning Network, B-Span
http://www.worldbank.org/wbi
46. 4/18/2023 46
News, Events, Newsletters,
Publications
News and Events
Newsletters and Subscriptions
World Bank Publications
47. 4/18/2023 47
Resources for the Private Sector
Business Center
Provides a guide to a range of
business and investment
opportunities
UN Development Business
(subscriptions) on opportunities to supply
goods, works and services for projects
financed by the United Nations,
governments and the world's leading
development banks
48. 4/18/2023 48
Global Development Gateway
Information on development worldwide from main
organizations http://www.developmentgateway.org/
49. 4/18/2023 49
Development Marketplace
A competitive grant program
administered by the World Bank and
supported by various partners that
identifies and funds innovative, early-
stage projects with high potential for
development impact.