2. * The World Bank is an
international financial
institution that provides
Financial and Technical
Assistance to Developing
Countries for Economic
Advancement.
*It is not a Bank in the ordinary
Sense but a Unique Partnership
to reduce poverty and Support
Development. It will not for a
profit motive.
3. IBRD
• International Bank for Reconstruction and Development
IDA
• International Development Association
IFC
• International Finance Corporation
MIGA
• Multilateral Investment Guarantee Agency
ICSID
• International Centre for Settlement of Investment Disputes
4. About World Bank…
Formation:
July, 1945
(73 years
Ago)
Head Quarters:
Washington
D.C.
Founders:
John Maynard
Keynes and
Harry Dexter
White
Parent
Organization:
World bank
Group
6. History Behind Establishment of WB…
The World bank was
Established to support
Reconstruction in European
and Asian Countries
(Especially Japan) after
World War-II and to Stabilize
Exchange rates.
It began operations in 1946,
it had 38 members, but has
since refrained its Mission
and Expanded its Operations
through out the world.
7. History Behind Establishment of WB…
John Maynard Keynes (right)
and Harry Dexter White, the
"founding fathers" of both
the World Bank and the
International Monetary
Fund.
At “Bretton Woods
Conference” held during 1st
to 22nd of July, 1944 with 730
delegates from all 44 allied
nations to Regulate the
International Monetary and
Financial order after the
conclusion of World War-II.
8. The Gold Room at the Mount Washington Hotel where the
International Monetary Fund and World Bank were established.
This is an image of a place or building that is listed on the
National Register of Historic Places in the United States of
America.
9. MAIN OBJECTIVES OF WORLD BANK
Eradicate Extreme Poverty and Hunger
Achieve Universal Primary Education
Promote Gender Equality
Reduce Child Mortality and Improve Maternal Health
Combat HIV/AIDS, Malaria and Other Diseases
Ensure Environmental Sustainability
Ensure a Global Partnership for Development
10. MAIN OBJECTIVES OF WORLD BANK
World Bank Focuses on achievement of Millennium
Development Goals that call for the elimination of Poverty
and Sustained Development.
Millennium Development Goals based on Five Key Factors:
Build Capacity
Infrastructure Creation
Development of Financial Systems
Combatting Corruption
Research, Consultancy and Training.
11. Functions performed by WB
• Providing Low Interest Loans , Zero to Low Interest Credits and
grants to developing Countries.
• 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 organizations.
• Providing technical, economic and monetary advice to
member countries for specific project.
• Encouraging industrial development of underdeveloped
countries by promoting economic reforms
12. Key Areas of Operation
Agriculture and
Rural
Development
Economic Policy
Education
Energy
Labor & Social
Protection
IT, Computing &
Telecommunication
s
Health ,
Nutrition &
Population
Environment Law & Justice
Macro & Micro
Economic
Growth
Mining
Private Sector Water supply &
Sanitation
Trade &
Transport
Rural & Social
Development
Public Sector
Governance
13. How is World Bank Run ?
The World Bank is like a cooperative, where its 184
member countries are shareholders. The
shareholders are represented by a Board of
Governors, who are the ultimate policy makers at
the World Bank.
The Governors are member countries' ministers of
finance or ministers of development
They meet once a year at the Annual Meetings of
the Boards of Governors of the World Bank Group
and the International Monetary Fund.
Because the governors only meet annually, they
delegate specific duties to 24 Executive Directors,
who work on-site at the bank.
The other member countries are represented by 24
executive directors.
14. How is World Bank Run ?
The President is elected by the Board of Governors
for a five year, renewable term.
The executive directors make the boards of
directors of the world bank.
They normally meet at least twice a week to
oversee the bank's business, including
* Approval of loans and Approve guarantees
* New Policies
* Country assistance strategies and borrowing and
financial decisions.
The world bank operates day-to-day under the
leadership and direction of the president,
management and senior staff, and the vice
presidents in charge of regions, sectors,
Networks and functions
15. Types of Loans offered by WB
Investment Loans
For Goods, Work and Services
to Support Economic and
Social Development Projects
in a Broad Range of Sectors.
Development Policy
Loans
(Formerly Known as
Adjustment Loans)Quick
disbursing finance to support a
country’s Policy and Social
Sectors.
World Bank Supervises how each loan is used and Evaluate the results.
All Loans are governed by Operational Policies which make sure that
operations are economically, financially, Socially and Environmentally Sound.
16. Process of Completion of Project;
1
• A project begins when a country identifies a need, develops a plan, and
asks the Bank for a loan.
2
• Experts from the borrowing country and the World Bank then study the
plan carefully.
3
• Bank staff carefully review the project and ask questions for clarifications
4
• Negotiations take place on how to implement the strategy.
5
• Once an agreement is reached, and the loans are approved, work can
begin.
6
• The Bank carefully monitors progress and pays out the loan in
installments.
18. Membership of World Bank Group
•Countries have the membership of IBRD
186
•Countries have the Membership of IDA
173
Each member Country of IBRD should also be a member of the IMF and only
members of IBRD are allowed to join other institutions within the Bank(like IDA).
But Under Certain Provision, with 75% Vote in its favor, A Country can continue WB
Membership in case of leaving Membership of IMF.
Any Member Country can quit the bank with written notice to the Bank, but it has
to repay all the granted loans on the T & C decided at the time of Sanction.
Any Country Working Against the guidelines of Bank can be debarred from the
Membership by the Board of Governors.
World Bank has Two Types of Members: Founder and General members.
World Bank has 30 Founder Members, INDIA is also one of the Founding Members.
19. * In 2010, Voting powers at the World Bank were revised to increase the voice of
developing countries, notably China.
* The changes were brought about with the goal of making voting more universal
in regards to standards, rule-based with objective indicators, and transparent
among other things.
* Now, developing countries have an increased voice in the "Pool Model", backed
especially by Europe. Additionally, voting power is based on economic size in
addition to International Development Association contributions
20. i) The World Bank lends money to Middle-Income Countries at interest rates lower
than the rates on loans from Commercial banks. In addition, the bank lends money
at no interest to the poorest developing countries, those that often cannot find the
sources of loans.
ii) The Bank offers Flexible loans with Maturities as long as 30 years and custom-
tailored repayment scheduling.
iii) The IBRD also offers loans in Local Currencies.
iv) Repayment period is measured in ARM, Current IBRD Policy limits establish a
maximum ARM of 18 years of WB loans.
22. Key Points about World Bank
The first country to receive a World Bank loan was France, over other two applicants
Poland & Chile , the amount is of US$250 million in 1947.
The bank’s first bond offering abroad, worth £5 million, came in London in 1951
Until 1968, its loans were earmarked for the construction of infrastructure works,
such as seaports, highway systems, and power plants, that would generate enough
income to enable a borrower country to repay the loan.
From 1974 to 1980 the bank concentrated on meeting the basic needs of people in
the developing world. The size and number of loans to borrowers was greatly
increased as loan targets expanded from infrastructure into social services and other
sectors.
During the 1980s the bank emphasized lending to streamline the economies of
developing nations. UNICEF reported in the late 1980s the World Bank had been
responsible for "reduced health, nutritional and educational levels for tens of millions
of children in Asia, Latin America, and Africa.
Beginning in 1989, in response to harsh criticism from many groups, the bank began
including environmental groups and NGOs in its loans.
23. Key Points about World Bank
In 1991 the World Bank announced that to protect against deforestation, especially in
the Amazon, it would not finance any commercial logging or infrastructure projects
that harm the environment.
In order to promote global public goods, the World Bank tries to control
communicable disease such as malaria, delivering vaccines to several parts of the
world and joining combat forces.
In 2000 the bank announced a "war on AIDS“
In 2011 the Bank joined the “Stop Tuberculosis(TB) Partnership”
Traditionally, based on a tacit understanding between the United States and Europe,
the President of the Bank has always been a US citizen nominated by the United
States and the managing director of the IMF having always been a European.
In 2012, for the first time, two non-US citizens were nominated. On 23 March 2012,
U.S. President Barack Obama announced that the United States would nominate Jim
Yong Kim as the next president of the Bank who is Korean American physician
and anthropologist who served as the 12th President of the World Bank from 2012 to
2019. On January 7, 2019, he announced that he would be stepping down, effective
February 1, 2019.
24. Key Points about World Bank
It also formed an implementing agency, to stop ozone-depletion damage to
the Earth's atmosphere by phasing out the use of 95% of ozone-depleting
chemicals, with a target date of 2015
With its "Six Strategic Themes", the bank has put various additional policies
into effect to preserve the environment while promoting development.
China used IDA loans for agriculture and education projects while oil wells
were financed with IBRD Loans.
It helped resolve the Indus water dispute between India and Pakistan.
Since 1947, the World Bank has funded over 12,000 development projects, via
traditional loans, interest-free credits, and grants.
It Introduced the ”Open Data website” offers free access to comprehensive,
downloadable indicators about development in countries around the globe.
It also Introduced ”World Bank Live”_Live discussions open to participants
worldwide—a key part of our Spring and Annual Meetings with
the International Monetary Fund.
25. India and World Bank
India is one of the founder members of IBRD, IDA and IFC. India is not
a member of ICSID.
India was one of the 17 countries which met in Atlantic City, USA in June
1944 to prepare the agenda for the Bretton Woods conference.
In fact, the name "International Bank for Reconstruction and Development"
[IBRD] was first suggested by India to the drafting committee.
The Bank lending to India started in 1949, when the first loan of $34 million was
approved for the Indian Railways.
India is the single largest borrower of WB and IDA. As of November 2018,
the largest recipients of world bank loans were India ($859 million in 2018)
and China ($370 million in 2018), through loans from IBRD.
India's loans from the World Bank stand at $104 billion (IBRD—$54 billion
and IDA—$50 billion) as on December 31, 2015. Of this, the World Bank has
disbursed $73 billion, with India repaying $37 billion.
26. India and World Bank
The World Bank Group’s Partnership Strategy for India (2013-2017) will help
India lay the foundations for achieving “faster, sustainable, and more
inclusive growth” as outlined in the government’s 12th five year Plan.
India has an Executive Director, in the Board of Directors of IBRD / IFC / IDA/
MIGA. The Executive Director from India represents a constituency
comprising of four countries: India, Bangladesh, Bhutan and Sri Lanka.
The World Bank Chennai is the extension of the World Bank headquartered
in Washington, DC. The World Bank Chennai office offers corporate financial,
accounting, administrative and IT services for the Bank's offices in around
150 countries.
India Secured 77th Rank in the latest World Bank Ease of Doing Business
Raking,2018 among 190 countries.
India is home to over one-quarter of the world’s poor, and the World Bank
Group is focused on sharing best practices as well as financing for
development as part of its mission ton help reduce global poverty.
27. CRITICISM
It was started to reduce
poverty but it support
United States’ business
interests.
The President of the Bank
is always a citizen of the
United States.
It is an instrument for the
promotion of U.S. or
Western interests.
The decision-making
structure is undemocratic.
28. CRITICISM
Focusing too much "on
issuing loans rather than on
achieving concrete
development results within
a finite period of time" .
Ignore the environmental
and social impact of
projects
Promoting Washington
consensus and allow only
big corporations to flourish
Resentment and social
turmoil in India
29. Future Goals by WB
The World Bank Group has set two goals for the world to achieve by 2030.
I. End extreme poverty by decreasing the percentage of people living on less than $1.90 a day
to no more than 3%
II. Promote shared prosperity by fostering the income growth of the bottom 40% for every
country
To help the world’s poorest people and ensure that everyone sees benefits from economic
growth.
To Understand these Challenges with the help of Data & Research , set priorities, Share