world bank.purpose and strategies.

1. Discuss the purpose and objectives of the World Bank.
Highlight its various strategies and critically assess
them. Do you think the World Bank has been
successful in achieving its objectives…?
Submitted To:
Dr. Namrata Sandhu
Submitted by:
Spinder Singh
Parmdeep Singh
Sumat Kaur
Naveenjot Kaur

2. Introduction
• The World Bank is an international financial institution that
provides loans to developing countries for capital programs.
• The World Bank's official goal is the reduction of poverty. According to its Articles
of Agreement (as amended effective 16 February 1989), all its decisions must be
guided by a commitment to the promotion of foreign investment and international
trade and to the facilitation of capital investment.
• The World Bank comprises two institutions: the International Bank for
Reconstruction and Development(IBRD) and the International Development
Association (IDA).
• The World Bank should not be confused with the World Bank Group, which
comprises the World Bank, the International Finance Corporation (IFC),
the Multilateral Investment Guarantee Agency (MIGA), and the International
Centre for Settlement of Investment Disputes (ICSID)

3. Introduction cont…
• President – Robert B. Zoellick
• Members – 185 countries
• Headquarters – Washington D.C
• Established on – July 1, 1944
• Parent organization – World Bank Group

4. Purpose
• Provide a safe, secure place where nations can deposit their money
• Provide financing for the elimination of poverty and create development
• An international organization for private multi-national corporations to
pool their money
• The World Bank provides low-interest loans, interest-free credits and
grants to developing countries
• The World Bank loans are usually to invest in education, health, and
infrastructure.
• The loans can also be used to modernize a country's financial sector,
agriculture, and natural resources management.

5. Objectives
The World Bank was established to promote long-term foreign investment loans on
reasonable terms. The, purposes of the Bank, as set forth in the 'Articles of
Agreement’ are as follows:
• To assist in the reconstruction and development of territories of members by
facilitating the invest-ment of capital for productive purpose including;
(a) the restoration of economies destroyed or disrupted by war;
(b) the reconversion of productive facilities to peaceful needs; and
(c) the encouragement of the development of productive facilities and resources in
less developing countries;
• To promote private investment by means of guarantee or participation in loans and
other investments made by private investors.
• When private capital is not available on reasonable terms, to supplement private
investment by providing on suitable conditions finance for productive purpose out
of its own capital funds raised by it and its other resources.

6. Objectives
• To promote the long-range balanced growth of international trade and the
maintenance of equilibrium in balances of payments by encouraging
international investment for the development of the productive resources of
members, thereby assisting in raising productivity, the standard of living,
and conditions of labor in their territories.
• To arrange the loans made or guaranteed by it in relation to international
loans through other channels so that the more useful and urgent projects,
large and small alike, will be dealt with first.
• To conduct its operations with due regard to the effect of international
investment on business conditions in the territories of members and in the
immediate postwar years, to assist in bringing about a smooth transition
from a wartime to peacetime economy.

7. Strategies.
• World Bank Education Strategy:
The World Bank’s new Education Strategy lays out a ten-year
agenda focused on the crucial goal of “learning for all”. The
bottom line: Invest early, invest smartly, and invest for all.
The strategy draws on consultations with governments,
development partners, students, teachers, researchers, civil
society, and business representatives from more than 100
countries.

8. Strategies.cont…
• ICT Strategy:
The World Bank Group’s new Information and
Communication Technology (ICT) Strategy aims at helping
developing countries use ICT to transform delivery of basic
services, drive innovations and productivity gains, and
improve competitiveness. The strategy reflects rapid changes
in the ICT sector over the last decade, including a dramatic
increase in use of mobile phones and the Internet, plunging
prices of computing and mobile internet devices, and the
increasing prevalence of social media.

9. Strategies cont…
• Poverty Reduction Strategies
Poverty Reduction Strategies (PRS) and Poverty Reduction Strategy Papers
(PRSP) describe a country's macroeconomic, structural and social policies
and programs to promote growth and reduce poverty, as well as associated
external financing needs and major sources of financing. They are prepared
by governments through a participatory process involving civil society and
development partners, including the World Bank and the International
Monetary Fund (IMF). A country only needs to write a PRSP every three
years. The coverage of PRSP’s varies from country to country, but lately
are converging to cover a government period. However, changes can be
made to a PRSP using an Annual Progress Report which analyzes PRSP
implementation and progress on achievement of stated goals.

10. Strategies cont…
• Country Assistance Strategies
The World Bank prepares a Country Assistance Strategy (CAS) for active
borrowers from the International Development Association (IDA) and the
International Bank for Reconstruction and Development (IBRD). The CAS
takes as its starting point the country’s own vision for its development, as
defined in a Poverty Reduction Strategy Paper or other country-owned
process. Oriented toward results, the CAS is developed in consultation
with country authorities, civil society organizations, development partners,
and other stakeholders. The purpose of the CAS is to set out a selective
program of Bank Group support linked to the country’s development
strategy and based on the Bank Group’s comparative advantage in the
context of other donor activities. CASs are designed to promote
collaboration and coordination among development partners in a country.

11. Impact of World Bank
We all know that developing countries have
seen rapid growth in information and
communication technology (ICT) access and
use – from basic Internet access to the
explosive growth of mobile phone ownership

13. Impact of World Bank
• The life expectancy in developing countries has
increased by 20 years.
• During the past 30 years the illiteracy in the
developing countries has been nearly halved to 25 %.
• The proportion of people living under poverty line
has reduced.

15. Impact in India
Over the past years it has been successful on various fronts:
• Reduced absolute poverty to great extent
• Dramatically improved literacy
• Vastly improved health conditions
• India emerged as global player in IT, business process
outsourcing, telecommunications and pharmaceuticals.
• India became one of the world’s fastest growing economies.

16. THANK YOU