The document discusses several organizations that make up the World Bank Group: 1. The International Bank for Reconstruction and Development (IBRD) lends to middle-income countries and provides loans, technical assistance, and risk management products. 2. The International Development Association (IDA) provides interest-free credits and grants to the world's poorest countries. 3. The International Finance Corporation (IFC) focuses on investing in private sector businesses in developing countries to promote private sector development.

1. 2021
World Bank
Classroom Deliberations
CA Dr. Prithvi Ranjan Parhi
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CA DR Prithvi Ranjan Parhi

2. 703- INTERNATIONAL TRADE AND BUSINESS
MODULE- I
International Trade: Concept, Importance, Benefits of International Trade, international
Marking vs. Domestic Marking (differences).
Theory of International Trade: theory of comparative Cost, factor proportion Theory.
MODULE-II
Multinational corporations (MNCs): Definition, Role of MNCs in International marking.
International Trade barriers: Meaning, tariff and non-Tariff Barriers, Impact of Non-tariff
barriers.
MODULE-III
Organizational and Agreements: WTO (Functions, Principle, agreements), IMF
(Purposes, Facilities Provided by IMF), World Bank (Purpose, Principle, Policies).
MODULE-IV
Foreign Trade of India: Organizational Setup (Autonomous Bodies, Attached and
subordinate offices), Major Export and Imports, Concept of Export House, EXIM Policy
(2002-2007) of India (Features and Objectives of the Policy).
MODULE-V
Foreign Exchange market: Concept, Functions, Methods of international Payment,
concept of Balance of Payment, Concept of Fixed and Flexible Exchange Rate and
Convertibility of Rupee.
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3. World Bank Group
• The World Bank Group consists of five
organizations:
1. IBRD (International Bank for Reconstruction and
Development)
2. IDA (International Development Association)
3. IFC (International Finance Corporation)
4. MIGA(Multilateral Investment Guarantee Agency)
5. ICSID (International Centre for Settlement of
Investment Disputes )
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4. World Bank
• The International Bank for Reconstruction and
Development(IBRD)-
It lends to governments of middle-income and
creditworthy low-income countries.
• The International Development Association(IDA)
It provides interest-free loans, called credits and
grants to governments of the poorest countries.
Together, IBRD and IDA make up the World Bank.
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5. World Bank Groups
• The International Finance Corporation(IFC): It is the largest global
development institution focused exclusively on the private sector.
It help developing countries achieve sustainable growth by
financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and
governments.
• The Multilateral Investment Guarantee Agency: It was created in
1988 to promote foreign direct investment into developing
countries to support economic growth, reduce poverty, and
improve people’s lives. MIGA fulfills this mandate by offering
political risk insurance (guarantees) to investors and lenders.
• The International Centre for Settlement of Investment Disputes: It
provides international facilities for conciliation and arbitration of
investment disputes.
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6. IBRD
• The International Bank for Reconstruction and Development
(IBRD) is an international financial institution that offers loans to
middle-income developing countries and creditworthy low-income
countries.
• The IBRD is the first of five member institutions that compose the
World Bank Group and is headquartered in Washington, D.C.,
United States.
• It was established in 1944 with the mission of financing the
reconstruction of European nations devastated by World War II.
• Following the reconstruction of Europe, the Bank's mandate
expanded to advancing worldwide economic development and
eradicating poverty.
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7. IBRD
• The IBRD and its concessional lending arm, the
International Development Association, are
collectively known as the World Bank as they share
the same leadership and staff.
• The IBRD provides commercial-grade or
concessional financing to sovereign states to fund
projects that seek to improve transportation and
infrastructure, education, domestic policy,
environmental consciousness, energy investments,
healthcare, access to food and potable water, and
access to improved sanitation.
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8. IBRD
• The IBRD is owned and governed by its member states, but has
its own executive leadership and staff which conduct its normal
business operations.
• The Bank's member governments are shareholders which
contribute paid-in capital and have the right to vote on its
matters.
• In addition to contributions from its member nations, the IBRD
acquires most of its capital by borrowing on international
capital markets through bond issues.
• The Bank offers a number of financial services and products,
including flexible loans, grants, risk guarantees, financial
derivatives, and catastrophic risk financing. 8
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9. IBRD
• IBRD is owned by the governments of its 189
member countries, which are represented by a
25-member board of 5 appointed and 20
elected Executive Directors.
• The institution provides a combination of
financial resources, knowledge and technical
services, and strategic advice to developing
countries, including middle income and credit-
worthy lower income countries.
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10. IBRD’s Services------
• The World Bank Group works with middle income countries
simultaneously as clients, shareholders, and global actors. As this
partnership evolves, IBRD is providing innovative financial
solutions, including financial products (loans, guarantees, and risk
management products) and knowledge and advisory services
(including on a reimbursable basis) to governments at both the
national and sub-national levels.
• IBRD finances projects across all sectors and provides technical
support and expertise at various stages of a project.
• IBRD’s financial products and services help countries build
resilience to shocks by facilitating access to products that mitigate
the negative impact of currency, interest rate, and commodity
price volatility, natural disasters and extreme weather.
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11. -------IBRD Services
• Unlike commercial lending, IBRD’s financing not only
supplies borrowing countries with needed financing, but
also serves as a vehicle for global knowledge transfer and
technical assistance.
• Advisory services in public debt and asset
management help governments, official sector institutions,
and development organizations build institutional capacity
to protect and expand financial resources.
• IBRD supports government efforts to strengthen not only
public financial management, but to also improve the
investment climate, address service delivery bottlenecks,
and other policy and institutional actions.
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12. Functions of IBRD
• Supports long-term human and social development that
private creditors do not finance
• Preserves borrowers' financial strength by providing support
in times of crisis, when poor people are most adversely
affected
• Promotes key policy and institutional reforms (such as safety
net or anti-corruption reforms)
• Creates a favorable investment climate to catalyze the
provision of private capital.
• Facilitates access to financial markets often at more
favorable terms than members can achieve on their own.
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13. How IBRD Is Financed?
• IBRD raises most of its funds in the world's financial
markets. In fact, in these markets, IBRD is known
simply as the World Bank. This practice has allowed
IBRD to provide more than $500 billion in loans to
alleviate poverty around the world since 1946, with its
shareholder governments paying in about $14 billion in
capital.
• IBRD has maintained a triple-A rating since 1959. Its
high credit rating allows it to borrow at low cost and
offer middle-income developing countries access to
capital on favorable terms -- in larger volumes, with
longer maturities, and in a more sustainable manner
than world financial markets typically provide.
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14. IBRD sources of income?
• IBRD earns income every year from the return on its
equity and from the small margin it makes on lending.
This pays for IBRD's operating expenses, goes into
reserves to strengthen the balance sheet, and provides
an annual transfer of funds to IDA, the fund for the
poorest countries.
• The World Bank has helped millions of poor people in
middle income countries gain access to jobs, markets,
and social services; helped provide them with essential
services such as water, electricity, and roads; and
worked with governments to improve governance and
public sector management.
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15. IDA
• The International Development Association (IDA) is an
international financial institution which offers
concessional loans and grants to the world's poorest
developing countries.
• The IDA is a member of the World Bank Group and is
headquartered in Washington, D.C., United States.
• It was established in 1960 to complement the existing
International Bank for Reconstruction and Development
by lending to developing countries which suffer from the
lowest gross national income, from troubled
creditworthiness, or from the lowest per capita income. 15
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16. IDA
• The association shares the World Bank's mission of
reducing poverty and aims to provide affordable
development financing to countries whose credit risk is
so prohibitive that they cannot afford to borrow
commercially or from the Bank's other programs.
• The IDA's stated aim is to assist the poorest nations in
growing more quickly, equitably, and sustainably to
reduce poverty.
• The IDA is the single largest provider of funds to
economic and human development projects in the
world's poorest nations.
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17. IDA
From 2000 to 2010, it financed projects which
• recruited and trained 3 million teachers,
• immunized 310 million children,
• funded $792 million in loans to 120,000 small and medium
enterprises,
• built or restored 118,000 kilometers of paved roads,
• built or restored 1,600 bridges,
• and expanded access to improved water to 113 million
people and
• improved sanitation facilities to 5.8 million people.
• The IDA has issued a total $238 billion USD in loans and
grants since its launch in 1960.
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18. IDA
• IDA is one of the largest sources of assistance for the
world’s 77 poorest countries, 39 of which are in Africa,
and is the single largest source of donor funds for basic
social services in these countries.
• IDA lends money on concessional terms. This means
that IDA credits have a zero or very low interest charge
and repayments are stretched over 25 to 40 years,
including a 5- to 10-year grace period.
• IDA also provides grants to countries at risk of debt
distress.
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19. IDA
• In addition to concessional loans and grants, IDA provides
significant levels of debt relief through the Heavily Indebted
Poor Countries (HIPC) Initiative and the Multilateral Debt Relief
Initiative (MDRI).
• IDA is a multi-issue institution, supporting a range of
development activities that pave the way toward equality,
economic growth, job creation, higher incomes, and better
living conditions.
• IDA's work covers primary education, basic health services,
clean water and sanitation, agriculture, business climate
improvements, infrastructure, and institutional reforms.
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20. IFC
• The International Finance Corporation (IFC) is an
international financial institution that offers
investment, advisory, and asset management services
to encourage private sector development in developing
countries.
• The IFC is a member of the World Bank Group and is
headquartered in Washington, D.C., United States.
• It was established in 1956 as the private sector arm of
the World Bank Group to advance economic
development by investing in strictly for-profit and
commercial projects that purport to reduce poverty
and promote development.
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21. ------IFC(objective)
1. to create opportunities for people to escape poverty
and achieve better living standards by mobilizing
financial resources for private enterprise,
2. promoting accessible and competitive markets,
supporting businesses and other private sector
entities, and
3. creating jobs and delivering necessary services to
those who are poverty-stricken or otherwise
vulnerable.
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22. IFC
• Since 2009, the IFC has focused on a set of
development goals that its projects are expected
to target.
• Its goals are to increase sustainable agriculture
opportunities, improve health and education,
increase access to financing for microfinance and
business clients, advance infrastructure, help
small businesses grow revenues, and invest in
climate health.
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23. IFC------
• IFC, a member of the World Bank Group, is the largest
global development institution focused exclusively on
the private sector in developing countries.
• It utilize and leverage its products and services—as well
as products and services of other institutions in the
World Bank Group—to provide development solutions
customized to meet clients’ needs.
• It apply its financial resources, technical expertise,
global experience, and innovative thinking to help its
partners overcome financial, operational, and political
challenges.
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24. IFC—Source of Fund
• IFC raises virtually all funds for lending activities
through the issuance of debt obligations(bonds) in
international capital markets. Its borrowings are
diversified by country, currency, source, and maturity in
order to provide flexibility and cost effectiveness.
• IFC issues bonds in a variety of markets and formats,
including U.S. dollar benchmarks bonds, themed
bonds.
• IFC issues local-currency bonds to develop domestic
capital markets and facilitate local-currency lending.
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25. IFC--Governance
• Established in 1956, IFC is owned by 184 member
countries, a group that collectively determines its policies.
Through a Board of Governors and a Board of Directors, its
member countries guide IFC's programs and activities.
• Each of its member countries appoints one governor and
one alternate. Corporate powers are vested in the Board of
Governors, which delegates most powers to a board of 25
directors. Voting power on issues brought before them is
weighted according to the share capital each director
represents.
• The directors meet regularly at World Bank Group
headquarters in Washington, D.C., where they review and
decide on investments and provide overall strategic
guidance to IFC management.
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26. MIGA
• Multilateral Investment Guarantee Agency (MIGA) is an
international financial institution which offers political
risk insurance and credit enhancement guarantees.
• Such guarantees help investors protect foreign direct
investments against political and non-commercial risks
in developing countries.
• [MIGA is a member of the World Bank Group and is
headquartered in Washington, D.C., United States. It
was established in 1988 as an investment insurance
facility to encourage confident investment in
developing countries.
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27. MIGA
• MIGA's stated mission is "to promote foreign
direct investment into developing countries to
support economic growth, reduce poverty,
and improve people's lives".
• It targets projects that endeavor to create new
jobs, develop infrastructure, generate new tax
revenues, and take advantage of natural
resources through sustainable policies and
programs.
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28. MIGA
• MIGA is owned and governed by its member states, but has
its own executive leadership and staff which carry out its
daily operations.
• Its shareholders are member governments which provide
paid-in capital and have the right to vote on its matters.
• It insures long-term debt and equity investments as well as
other assets and contracts with long-term periods.
• The agency is assessed by the World Bank's Independent
Evaluation Group.
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29. MIGA
• As a multilateral development agency, MIGA
only supports investments that are
developmentally sound and meet high social
and environmental standards.
• MIGA applies a comprehensive set of social and
environmental performance standards to all
projects and offers extensive expertise in
working with investors to ensure compliance to
these standards.
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30. ------MIGA(Governance)
• A Council of Governors and a Board of Directors
representing its member countries guide the programs and
activities of MIGA.
• MIGA’s corporate powers are vested in the Council of
Governors, which delegates most of its powers to a Board
of Directors.
• Voting power is weighted according to the share of capital
each director represents.
• The directors meet regularly at the World Bank Group
headquarters in Washington, DC, where they review and
decide on investment projects and oversee general
management policies.
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31. Political Risk Covered by MIGA
• Currency Inconvertibility and Transfer
Restriction
• Expropriation (act of a government claiming privately owned
property against the wishes of the owners)
• War, Terrorism, and Civil Disturbance
• Breach of Contract
• Non-honoring of Financial Obligations(Credit
Enhancement Guarantee)
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32. ICSID
• The International Centre for Settlement of Investment Disputes
(ICSID) is an international arbitration institution established in 1965
for legal dispute resolution and conciliation between international
investors.
• The ICSID is part of and funded by the World Bank Group,
headquartered in Washington, D.C., in the United States.
• It is an autonomous, multilateral specialized institution to
encourage international flow of investment and mitigate non-
commercial risks by a treaty drafted by the International Bank for
Reconstruction and Development's executive directors and signed
by member countries.
• As of May 2016, there were 153 contracting member states agree
to enforce and uphold arbitral awards in accordance with the ICSID
Convention. The center performs advisory activities and maintains
several publications.
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33. Thank You
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