The document provides information about the World Bank, including that it is an international financial institution that provides loans to developing countries. It was established in 1944 at the Bretton Woods Conference and has 187 member countries. The World Bank Group consists of five institutions focused on global development and poverty reduction. Key units include 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).

1. World bank
Neha Bhartiya (130)
Prateek Meharia (138)
Punit Rajmohan (140)

2. WORLD BANK
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 International financial institution that provides
loans to developing countries for capital
programmes
 Official goal: Reduction of poverty
 Bretton Woods Conference, 1944
 Headquarters: Washington DC
 Membership: 187 countries
 President: Robert B. Zoellick
 Parent Organization: World Bank Group
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3. WORLD BANK GROUP
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4. WORLD BANK MISSION
To fight poverty with passion and professionalism
for lasting results. To help people help themselves
and their environment by providing resources,
sharing knowledge, building capacity, and forging
partnerships in the public and private sectors.

5. IBRD
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 Created December 27, 1945
 187 members
 Original institution of the World Bank
 Largest country membership, the broadest mission, and the
greatest number of staff in the Bank Group
 First task to help Europe recover from World War II
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6. IBRD
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 Plays an important role in poverty reduction; provides
middle-level and poor credit-worthy countries with loans,
guarantees, analytical and advisory services
 Supports long term human and social developmental needs
that private creditors do not finance
 Preserves borrowers’ financial strength by providing support
during crisis periods, which is when poor people are most
adversely affected
 Creates favorable investment climate to catalyze provision
of private capital
 Provides financial support in the form of grants made
available from IBRD’s net income in areas which are critical
to the well being of poor people in all countries
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7. IDA
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 Created September 24, 1960
 Provides loans to 81 countries
 171 member countries
 IDA helps world’s poorest countries reduce poverty by
providing credits and grants
 IDA’s goal is to reduce disparities across and within
countries— especially in terms of access to primary
education, basic health, and water supply and sanitation—
and to bring more people into the economic mainstream by
raising their productivity.
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8. IFC
 Promotes sustainable private sector investment in
developing countries
 Established 1956
 182 member countries
 Member of the World Bank Group
 Promotes sustainable private sector development by:
 Financing private sector projects and companies located in
the developing world.
 Helping private companies in the developing world
mobilize financing in international financial markets.
 Providing advice and technical assistance to businesses
and governments.

9. MIGA
 Founded 1988
 Promotes foreign direct
investment into developing countries by
insuring investors against political risk,
advising governments on attracting
investment, sharing information through on-
line investment information services, and
mediating disputes between investors and
governments
 Member of the World Bank Group
 174 member countries

10. International Centre for Settlement
of Investment Disputes
 Established 1966
 143 member countries
 Member of the World Bank Group
 Provides facilities for the conciliation
and arbitration of investment disputes between
member countries and individual investors.

11. Difference between World Bank and IMF
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 The World Bank lends only to developing or transition economies,
whereas all member countries, rich or poor, can draw on the
IMF’s services and resources.
 The IMF’s loans address short-term economic problems: they
provide general support for a country’s balance of payments and
international reserves while the country takes policy action to
address its difficulties. The World Bank is concerned mainly with
longer-term issues: it seeks to integrate countries into the wider
world economy and to promote economic growth that reduces
poverty.
 The IMF focuses on the macroeconomic performance of
economies, as well as on macroeconomic and financial sector
policy. The World Bank’s focus extends further into the particular
sectors of a country’s economy and Bank work includes specific
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development projects as well as broader policy issues.

12. Millennium Development Goals
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 MDGs were endorsed by 189 countries at the September 2000 UN
Millennium General Assembly in New York.
 MDG’S came out of the agreements and resolutions that have
resulted from world conferences organized by the UN in the past 10–
15 years. Each goal is to be achieved by 2015.
 Their aim is to reduce poverty while improving health, education, and
the environment.
 To achieve the MDGs poorest countries require financial aid.
 Developing countries may also benefit if trade barriers are lowered,
thereby allowing a freer exchange of goods and services.
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13. Goals and Targets of Millennium Declaration
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ERADICATE EXTREME POVERTY AND HUNGER
ACHIEVE UNIVERSAL PRIMARY EDUCATION
PROMOTE GENDER EQUALITY AND EMPOWER WOMEN
REDUCE CHILD MORTALITY
IMPROVE MATERNAL HEALTH
COMBAT HIV/AIDS, MALARIA, AND OTHER DISEASES
ENSURE ENVIRONMENTAL SUSTAINABILITY
DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT
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14. The World Bank’s Finances
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IBRD
 IBRD – taps the world’s capital markets
 IBRD raises money primarily by selling bonds in international financial markets. It sells
AAA-rated bonds and other debt securities to pension funds, insurance companies,
corporations, other banks, and individuals around the world
 IBRD uses capital from reserves built up over the years and money paid in from the bank's
187 member country shareholders
 IBRD charges interest to its borrowers at rates that reflect its cost of borrowing. Loans
must be repaid in 15 to 20 years, and there is a 3- to 5-year grace period before
repayment of principal begins
IDA
 IDA, the world’s largest source of interest-free loans and grant assistance to the poorest
countries, is replenished every three years by donor countries
 Provides 35- to 40-year no-interest loans. IDA accounts for nearly 40 percent of World
Bank lending
 Forty countries contribute to IDA’s funding. Chief donors are France, Germany, Japan,
United Kingdom, and the United States
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15. World Bank - Profits
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 Income used to sustain operating expenses
 Some of the surplus goes to IDA
 The rest of the surplus is either used for debt relief for
heavily indebted poor countries
 To meet unseen humanitarian crises
 IBRD seeks not to maximize profit but to earn enough
income to ensure its financial strength and to sustain
its development activities
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16. Project Cycle
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 The Project Cycle is the framework used by the World Bank to design,
prepare, implement and supervise projects
 The World Bank's public-lending institutions (IDA and IBRD) lend about US$
15-20 billion annually to 100 countries to Projects ranging from
infrastructure, education, health and government financial management
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17. Project Cycle
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 Pre-Pipeline
Studies of development issues carried at the thematic,
country and sector level. This is used to improve the Bank’s
understanding of development challenges and to promote
best practice among staff
 Identification
The World Bank and borrowing countries jointly identify
projects that support their development goals. The
identification stage can take up to a year and a half
 Preparation
The borrowing country is responsible for project
preparation. During this stage, which can last up to two years,
the borrowing country continues to conduct further studies
and impact assessments that includes economic, financial,
social and environmental impacts
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18. Project Cycle
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 Appraisal
Appraisal is the sole responsibility of Bank staff. Project Appraisal Document
(PAD) is prepared which provides a detail description of the project and its
implementation. The Appraisal stage often lasts between 3-6 months
 Negotiation and Approval
During negotiations, the World Bank and borrowing country will agree on the terms
of the loan supporting the project. Typically, negotiations last about 1-2 months
 Implementation and Supervision
After the loan or credit is approved, the borrowing country can use the funds to
purchase the goods and services necessary to meet the project’s objectives. The
borrowing country, is responsible for implementing the project. The World Bank’s
role is to monitor project implementation to ensure that the terms of the loan/credit
agreement are followed and that procurement is conducted according to the World
Bank’s guidelines
 Evaluation
Following completion of the project, the Bank’s Independent Evaluation Group,
conducts an audit of the project, where the World Bankoutcome is measured against
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its original objectives

19. Ways of classifying countries
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 Low income, Middle and High income
Income level of countries average annual per capita
low $875 or less
lower-middle $876 to $3,465
upper-middle $3,466 to $10,725
High $10,726 or more
 Developing and industrial economies:
developing low-income or middle-
income
industrial high-income
 Donors and borrowers
 Part I, part II: Countries choose whether they are Part I or Part II
primarily on the basis of their economic
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20. Sectors of operation
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 Agriculture and rural  Health, nutrition, andnpopulation
development
 Indigenous peoples
 Aid effectiveness
 Information and communication technologies
 Combating corruption  Infrastructure
 Conflict prevention and  Labour and social protection
 fragile states  Law, regulation, and the judiciary
 Debt relief  Manufacturing and services
 Economic research and  Poverty
 data  Private sector development
 Education  Social development
 Empowerment and participation  Sustainable development
 Energy and mining  Trade
 Environment  Transport
 Financial sector  Urban development
 Gender  Water
 Globalization
 Governance
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21. Initiatives
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Multilateral Debt Relief Initiative (MDRI)
• To cut the debt burdens of many of the world’s poorest countries to
acceptable levels. Total debt relief under the MDRI is estimated at
about $50 billion(2008)
Low-Income Countries Under Stress (LICUS) Initiative
• Which recommends ways to help countries with particularly weak
policies and institutions get onto a path of sustained growth and
poverty reduction by improving the effectiveness of development aid
Education for all fast track initiatives
• The initiative’s goal is to accelerate progress toward achievement of
the MDGs for education. It is open to all low-income countries that
demonstrate a serious commitment to achieving universal primary
education
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22. IDA Lending
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23. WORLD BANK IN INDIA
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Infrastructure
• Mumbai Urban Transport Project (MUTP)
• Rural roads
• Building state highways in A.P.
Rural development
• Empowering the poor in Tamil Nadu
• Reclaiming saline lands in UP
• Improving agriculture in Assam
• Reversing the degradation of natural resources in lower Himalayas
• Rural water supply and sanitation
Creating jobs
Health
• Eliminating leprosy
• Controlling T.B .
• Reconstruction World Bank 7/01/2011

24. WORLD BANK IN INDIA
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• North east rural livelihood project(NERLP)(20-dec-2011)
• Uttar Pradesh Health Systems Strengthening Projects (UPHSSP)(20-
dec-2011)
• Rampur Hydropower project- carbon finance (6th oct 2011)
• Capacity Building for Urban Local Bodies-NURM (21st July 2011)
• West Bengal Accelerated development of Minor Irrigation (24th Oct
2011)
• Karnataka State Highway Improvement (24th March 2011)
• National Ganga River Basin Project(31-may-2011)
• Rajasthan Rural Livelihood Project – RRLP (11th Jan 2011)
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25. Current Lending by Sector in Number of
Projects - India
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Year 2011
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http://web.worldbank.org

26. Lending in Millions of US Dollars to
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India
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http://web.worldbank.org

27. IDA – INDIA FUNDING
Sarva Shiksha Abhiyan or SSA
 In 2002 India unveiled its national flagship program, the Elementary
Education Project (Sarva Shiksha Abhiyan or SSA), financed by
the International Development Association (IDA).
 IDA is the single largest donor. IDA’s SSA I project (2004 to 2007)
contributed US$500 million of the program’s total cost of US$3.5
billion. In May 2008, SSA II was approved with an IDA commitment
to provide an additional US$600 million to the program, In March
2010, following the Government of India’s decision to extend SSA II
for another two years, additional IDA funding of US$750 million was
approved for 2010-12
 With SSA having made great strides in increasing access to primary
education, the focus is now on bringing the remaining 8.1 million
out-of-school children into school, boosting provision of upper-
primary educational facilities, and improving learning outcomes

28. IDA – INDIA FUNDING
Bhoomi Project – IDA funded project
 Deals with computerization of 20 million
records of land ownership
 It will benefit nearly seven million rural farmers
by allowing them to transfer land titles online.
 The project has reduced corruption and saved
time and costs.

29. Impact of World Bank
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 During the past 40 years, life expectancy in developing countries
has risen by 20 years—about as much as was achieved in all of
human history prior to the mid-20th century.
 During the past 30 years, adult illiteracy in the developing world has
been nearly halved to 25 percent.
 During the past 20 years, the absolute number of people living on
less than US$1 a day has begun to fall for the first time, even as the
world's population has grown by 1.6 billion people.
 During the last decade, growth in the developing world has
outpaced that in developed countries, helping to provide jobs and
boost revenues poor countries' governments need to provide
essential services.
MNEs
 MNEs prefer World bank funded projects rather than country
funded projects
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FEEDBACK
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