The World Bank is an international organization owned by 189 member countries that provides loans and grants to developing countries with the goal of reducing poverty. It is governed by member countries through a Board of Governors and Board of Executive Directors. Though not technically a bank, it raises funds through bond sales and member contributions which it uses to finance projects focused on areas like education, health, infrastructure, agriculture and natural resource management in developing nations. The World Bank Group consists of five institutions that provide various types of financing to both governments and private sector entities.

1. The World Bank
Ms Neelam Kumari

2. Introduction
• The World Bank is an international
organization that helps emerging market
countries reduce poverty.
• It is not a bank in the conventional sense of
the word.
• The Bank's 189 member countries share
ownership.
• Unlike other financial institutions, WB does
not operate for profit.

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How the World Bank Operates
• 189 Member Countries
appoint their Governors
• Governors delegate specific
duties to 24 Executive
Directors
• President of the World Bank
reports to the Board of
Executive Directors
Office of the
President
Executive
Directors
Board of Governors

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World Bank Staff
• WB headquarters at
Washington DC.
• Total Bank staff numbers about
10,000. 189 nationalities
• 7,000 at HQ and 3,000 in the
field.
• Developing country nationals
represent 55% of total staff.

5. The Head of the World Bank
• Jim Yong Kim, M.D., Ph.D., is the president of
the World Bank
• The president of the United States has
selected the World Bank President since its
founding.
• That's because it owns 16 percent of the
bank's shares, making it the largest
shareholder.
• Other significant contributing countries to WB
are France, Germany, Japan and the United
Kingdom.

6. History (1/2)
• The 1944 Bretton Woods Conference established
the World Bank.
• Its loans helped European countries rebuild after
World War II. That made it the world's first
multilateral development bank.
• It was funded through the sale of World Bonds. Its
first loans were to France and other European
countries.

7. History (2/2)
• In the 1970s, it lent money to Chile, Mexico, and
India to build power plants and railways.
• By 1975, its loans had helped with a wide variety of
issues. They included family planning, pollution
control, and environmental protections.

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World Bank Early Borrowers
• France first to borrow $250
million to finance post-war
reconstruction in 1947.
• Many current donor nations
such as Austria, Australia,
Denmark, Italy, Korea, and
Greece were borrowers.

9. 9
The World Bank Group
World Bank
Group
World Bank
International Bank for
Reconstruction and
Development
International Development
Association
International
Finance
Corporation
Multilateral
Investment
Guarantee
Agency

10. World Bank Group
• The World Bank Group actually consists of five
institutions
– The International Bank for Reconstruction and
Development (IBRD), established in 1945, which
provides debt financing on the basis of sovereign
guarantees.
– The International Development Association (IDA),
established in 1960, which provides concessional
financing.
These both institutions are the part of World Bank

11. – The Multilateral Investment Guarantee Agency (MIGA),
established in 1988, which provides insurance against
certain types of risk, including political risk, primarily to the
private sector.
– The International Finance Corporation (IFC), established
in 1956, which provides various forms of financing without
sovereign guarantees, primarily to the private sector.
– International Centre for Settlement of Investment
Disputes(ICSID).

12. Purpose and Function of WB (1/2)
• The World Bank provides low-interest loans,
interest-free credit and grants.
• It focuses on improving education, health, and
infrastructure.
• It also uses funds to modernize a country's financial
sector, agriculture, and natural resources
management.

13. Purpose and Function of WB (2/2)
• The Bank's stated purpose is to "bridge the
economic divide between poor and rich countries.“
• It does this by turning "rich country resources into
poor country growth."
• It has a long-term vision to "achieve sustainable
poverty reduction."

14. To achieve this goal, World Bank focuses on six
areas:
1. Overcome poverty by spurring growth,
especially in Africa.
2. Help reconstruct countries emerging from
war, the biggest cause of extreme poverty.
3. Provide a customized solution to help
middle-income countries remain out of
poverty.

15. 4. Spur governments to prevent climate change. It
helps them control communicable diseases, especially
HIV/AIDS, and malaria. It also manages international
financial crises and promotes free trade.
5. Work with the Arab League on three goals. They are
to improve education, build infrastructure, and provide
micro-loans to small businesses.
6. Share its expertise with developing countries.
Publicize its knowledge via reports and its interactive
online database.

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Where does the money come from?
• The International Bank for Reconstruction
and Development (IBRD) raises funds on
capital markets (rate lower than commercial
banks).
• Donors give money to The International
Development Association (IDA) for the
world’s poorest countries, with additional
money coming from IBRD profits and
repayments.

17. Thank You