The World Bank was formed in 1944 at the Bretton Woods Conference to provide financing for post-war reconstruction efforts and development projects in member countries. It aims to reduce poverty and support development by providing long-term loans, technical assistance, and policy advice to governments. The World Bank Group consists of five institutions focused on global development, including the International Bank for Reconstruction and Development and International Development Association, which provide loans and grants to middle-income and poorer countries respectively.

1. World Bank

2. Fact file
Formation : 1st July 1944, 73 years ago
Type: Monetary International FInancial Organisation
Legal Status: Treaty
Head quarters: Washington, DC, US.
Membership: 189 Countries (IBRD), 173 Countries (IDA)
Key People: JIm YOng KIm, President

3. Introduction
● International Bank for Reconstruction and Development (IBRD) commonly
referred to as the world Bank.
● It is originated as a result of the Bretton woods Conference of 1st July 1944.
● An international organization dedicated to providing financing, advice and
research to more than 100 developing nations to aid their economic
advancement.

4. Why it came into existence?
● The world Bank was created at the end of WOrld War II as a result of many
European and Asian COuntries needing financing to fund reconstruction
efforts.
● The Bank is successful in providing financing for these devastated (destroyed)
Countries.

5. Need of World Bank
● Build Capacity
● Create Infrastructure
● Develop Financial System
● Combat Corruption

6. Objectives
● To provide long-run capital to member countries for economic reconstruction
and development
● To induce long run capital investment for assuring Balance of Payments(BoP)
equilibrium and balanced development of international trade.
● To provide guarantee for loans granted to small and large units and other
projects of member countries.
● To ensure the implementation of development projects so as to bring about a
smooth transference from a war-time to peace economy.
● To promote capital investment in member countries by the following ways; to
provide guarantee on private loans or capital investment. If private capital is
not available even after providing guarantee, then IBRD provides loans for
productive activities on considerate conditions.

7. Functions
● Granting reconstruction loans to war devastated countries.
● Granting developmental loans to underdeveloped countries.
● Providing loans to governments for agriculture, irrigation, power, transport,
water supply, educations, health, etc.
● Providing loans to private concerns for specified projects.
● Promoting foreign investment by guaranteeing loans provided by other
organisations.
● Providing technical, economic and monetary advice to member countries for
specific project.
● Encouraging industrial development of underdeveloped countries by
promoting economic reforms.

8. Organisational structure
● Board of Governors---------> Board of Executive Directors --------------> Advisory
Committee ----------> Loan Committee ----------------> President ------------> other
staff member.
● It like a cooperative , made up 189 member countries.
● Member countries or shareholders are represented by a Board of Governors,
who are the ultimate, policy makers. Governors are member countries
ministers of finance or ministers of development. Annual meeting is conducted
once in a year.
● The board consists of one governor and one alternative Governor appointed
for five years by each member country. Each governor has voting power
related to financial contribution of the Government.

9. Cont….
● The governors delegate specific duties to 25 Executive Directors, who work
on-site at the bank. Out of 25 members, 6 members are from largest
shareholders, namely USA, UK, West Germany, France, Japan and India.
Executive Directors meets once in a month to carry on the routine working of
the bank.
● President responsible for day to day activities of bank.

10. Capital Resources of World Bank
● Initial Authorized capital - $ 10,000 million
(1 lakh shares of $1 lakh each).
● 30 June 1996, authorized capital of Bank
was $188 billion out of which 180.6 billion
(96% of total authorized capital) was issued
to member countries in the form of shares.

11. Lending Programmes
1. They provide financial support to capital infrastructure and helps to development strategy
2. Objectives: establishment of a new set up of co-financing instruments to help the bank’s borrowers.
Stabilize flows of private capital on approved terms by linking part of commercial bank flows to IBRD
operations.
Structural Adjustment Lending: specific policy changes and institution reforms in developing countries.
Contribute to a more sustainable balance of payments in the medium and long term and lay the basis for
regaining momentum for future growth.
Special Action Program: 1983, to increase assistance to countries that were making efforts to cope with
the exceptionally difficult economic environment brought on by a global recession.

12. World Bank Group
● International Bank for Reconstruction and Development (IBRD)
● International Development Association (IDA)
● International Finance corporation(IFC)
● Multilateral Investment Guarantee Agency (MIGA)
● International Centre for settlement of Investment Disputes (ICSID).

13. International Bank for Reconstruction and Development
● world's largest development Bank,.
● Provide financial products and policy advice to help countries reduce poverty
and extend the benefits of sustainable growth to all of their people.
● It a global development cooperative owned by 189 member countries.
● It supports the World Bank Group’s mission by providing loans, guarantees,
risk management products, and advisory services to middle income and
creditworthy low-income countries, as well as by coordinating responses to
regional and global challenges.
● It is created in 1944 to help Europe rebuild after World War .
● It joins with DA, our fund for the poorest countries to form the World Bank.
● They also work closely with other group of World Bank to reduce poverty and
build shared prosperity in developing countries.

14. International Development Association
● The world Bank’s fund for the poorest countries
● Established in 1960
● Aim: to reduce poverty by providing loans and grants for programs that boost
economic growth, reduce inequalities and improve people’s living conditions.
● It support 75 countries out which 39 countries are from Africa, loans are at 0%
or very low interest rate.
● Repayment period: 25 to 38 years, including a 5 to 10 years grace period.
● It provide grants to countries at risk of debt distress.
● Criteria for approving IDA credit: 1. Poverty test 2. Performance test 3. Project
test.

15. Achievement of IDR
For 2011-17
1. 8 million teachers were recruited and or trained
2. ¼ billion children were immunized
3. 30 million pregnant women received prenatal care from a health provider
4. 72 million people received access to an improved water source
5. 602 million people received access to essential health services
For 2015-17
1. 35 million people benefited from access to electricity
2. 14.5 million people benefited from improved sanitation facilites

16. International Finance Corporation
1. It is the largest global development institution focused on the private sector in
developing countries.
2. Established in 1956, IFC is owned by 184 member countries, a group that
collectively determines its policies.
3. IFC has six decades of experience in the world’s most challenging markets
4. With a global presence in more than 100 countries, a network consisting of
hundred of financial institutions, and more than 2000 client firms.
5. IFC has been leading the way in private sector development.
6. It reach millions of people in more than 100 countries, creating jobs, raising
living standards, and building a better future to support the world Bank Group’s
two goals: ending extreme poverty and boosting shared prosperity.

17. Multilateral Investment Guarantee AGENCY
1. TO promote foreign direct investment (FDI) into developing countries to help
support economic growth, reduce poverty and improve people's lives.
2. To create a complement public and private sources of investment insurance
against non-commercial risks in developing countries.

18. International Centre for Settlement of Investment Disputes
1. It was established in 1966 by the convention on the settlement of investment
Disputes between states and Nationals of other states .
2. It provides for settlement of disputes by conciliation, arbitration or fact-finding.

19. World Bank Assistance to India
1. Founder of IBRD and also largest beneficiaries of the IBRD-IDA Assistance.
2. Until China become a member of the World Bank in 1980, India was the largest
beneficiary of the World Bank Assistance.
3. In 1997, 5% of total Bank assistance is given to India
4. 1974-75- IDA -¾ and World Bank ¼
5. 1998 World Bank ⅗ andIDA ⅓. It helps to reduce soft loan naturally increases
India’s debt burden.

20. World Bank Support to India
1. Between 2001 and 2009, Education for all program enrolled some 20 million
out-of-school children. 98% of India's children now have access to primary
school within 1 kilometer of their home.
2. Vocational training programs for rural areas to find the job
3. Rural livelihood programs - self help group in 90000 villages for 1.2 millions
4. Rural water supply and sanitation
5. Tuberculosis (1998-2012)
6. health projects
7. Rural Roads
8. Sodic Lands Reclamation Projects in Uttar Pradesh

21. IMF and World Bank a glance
IMF
1. Oversees the international monetary
system
2. Draws its financial resources principally
from the quota subscriptions of its member
countries
3. Promotes exchange stability and orderly
exchange relations among its members
countries.
4. Supplements the currency reserves to its
members through the allocation of (SDRs)
to date SDR 21.4 billion has been issued to
member countries in proportion to their
quotas.
World Bank
1. Seeks to promote the economic
development of the world’s poorer
countries
2. Acquires most of its financial resources by
borrowing on the international bond
market
3. Provides to the poorest developing
countries whose per capita GNP is less
than $865 a year special financial
assistance through the International
Development Association (iDA)
4. Encourages privates enterprises in
developing countries through its affiliate,
the International Finance Corporation (IFC)

22. Cont...
IMF
5. Has a staff of 2,300 drawn from 182 member
countries
6. Assists all members both industrial and
developing countries that find themselves in
temporary balance of payments difficulties by
providing short to medium term credits.
7. Has at its disposal fully paid-in quotes or
totalling SDR 145 billion (about $215 billion)
World Bank
5. Has a staff of 7,000 drawn from 182 member
countries
6. Assists developing countries through long-
term financing of development projects and
programs
7. Has an authorized capital of $184 billion, of
which members pay in about 10%.