Discuss the purpose and objectives of the World Bank.Highlight its various strategies and critically assessthem. Do you think the World Bank has beensuccessful in achieving its objectives…?Submitted To:Dr. Namrata SandhuSubmitted by:Spinder SinghParmdeep SinghSumat KaurNaveenjot Kaur
Introduction• The World Bank is an international financial institution thatprovides loans to developing countries for capital programs.• The World Banks official goal is the reduction of poverty. According to its Articlesof Agreement (as amended effective 16 February 1989), all its decisions must beguided by a commitment to the promotion of foreign investment and internationaltrade and to the facilitation of capital investment.• The World Bank comprises two institutions: the International Bank forReconstruction and Development(IBRD) and the International DevelopmentAssociation (IDA).• The World Bank should not be confused with the World Bank Group, whichcomprises the World Bank, the International Finance Corporation (IFC),the Multilateral Investment Guarantee Agency (MIGA), and the InternationalCentre for Settlement of Investment Disputes (ICSID)
Introduction cont…• President – Robert B. Zoellick• Members – 185 countries• Headquarters – Washington D.C• Established on – July 1, 1944• Parent organization – World Bank Group
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 topool their money• The World Bank provides low-interest loans, interest-free credits andgrants to developing countries• The World Bank loans are usually to invest in education, health, andinfrastructure.• The loans can also be used to modernize a countrys financial sector,agriculture, and natural resources management.
ObjectivesThe World Bank was established to promote long-term foreign investment loans onreasonable terms. The, purposes of the Bank, as set forth in the Articles ofAgreement’ are as follows:• To assist in the reconstruction and development of territories of members byfacilitating 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 inless developing countries;• To promote private investment by means of guarantee or participation in loans andother investments made by private investors.• When private capital is not available on reasonable terms, to supplement privateinvestment by providing on suitable conditions finance for productive purpose outof its own capital funds raised by it and its other resources.
Objectives• To promote the long-range balanced growth of international trade and themaintenance of equilibrium in balances of payments by encouraginginternational investment for the development of the productive resources ofmembers, 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 internationalloans 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 internationalinvestment on business conditions in the territories of members and in theimmediate postwar years, to assist in bringing about a smooth transitionfrom a wartime to peacetime economy.
Strategies.• World Bank Education Strategy:The World Bank’s new Education Strategy lays out a ten-yearagenda focused on the crucial goal of “learning for all”. Thebottom line: Invest early, invest smartly, and invest for all.The strategy draws on consultations with governments,development partners, students, teachers, researchers, civilsociety, and business representatives from more than 100countries.
Strategies.cont…• ICT Strategy:The World Bank Group’s new Information andCommunication Technology (ICT) Strategy aims at helpingdeveloping countries use ICT to transform delivery of basicservices, drive innovations and productivity gains, andimprove competitiveness. The strategy reflects rapid changesin the ICT sector over the last decade, including a dramaticincrease in use of mobile phones and the Internet, plungingprices of computing and mobile internet devices, and theincreasing prevalence of social media.
Strategies cont…• Poverty Reduction StrategiesPoverty Reduction Strategies (PRS) and Poverty Reduction Strategy Papers(PRSP) describe a countrys macroeconomic, structural and social policiesand programs to promote growth and reduce poverty, as well as associatedexternal financing needs and major sources of financing. They are preparedby governments through a participatory process involving civil society anddevelopment partners, including the World Bank and the InternationalMonetary Fund (IMF). A country only needs to write a PRSP every threeyears. The coverage of PRSP’s varies from country to country, but latelyare converging to cover a government period. However, changes can bemade to a PRSP using an Annual Progress Report which analyzes PRSPimplementation and progress on achievement of stated goals.
Strategies cont…• Country Assistance StrategiesThe World Bank prepares a Country Assistance Strategy (CAS) for activeborrowers from the International Development Association (IDA) and theInternational Bank for Reconstruction and Development (IBRD). The CAStakes as its starting point the country’s own vision for its development, asdefined in a Poverty Reduction Strategy Paper or other country-ownedprocess. Oriented toward results, the CAS is developed in consultationwith country authorities, civil society organizations, development partners,and other stakeholders. The purpose of the CAS is to set out a selectiveprogram of Bank Group support linked to the country’s developmentstrategy and based on the Bank Group’s comparative advantage in thecontext of other donor activities. CASs are designed to promotecollaboration and coordination among development partners in a country.
Impact of World BankWe all know that developing countries haveseen rapid growth in information andcommunication technology (ICT) access anduse – from basic Internet access to theexplosive growth of mobile phone ownership
Impact of World Bank• The life expectancy in developing countries hasincreased by 20 years.• During the past 30 years the illiteracy in thedeveloping countries has been nearly halved to 25 %.• The proportion of people living under poverty linehas reduced.
Impact in IndiaOver 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 processoutsourcing, telecommunications and pharmaceuticals.• India became one of the world’s fastest growing economies.