Presented By

GIRIDHAR KATTIMBA-12-10

Central University of Karnataka

Presentation on world bank

WB mission is to

Reduce poverty in the globe

Improve the living standard

The World Bank is an international financial

institution that provides financial and technical

assistance to developing countries for

development programsHeadquarters:Washington, DC, and more than 100 country officesEstablished:July 1, 1944 during a conference of 44 countries in Bretton Woods,

The World Bank (WB)

The World Bank (WB)

WB provides low-interest loans, interest-free credit

and grants (Grants are designed to facilitate

development projects by encouraging innovation, co-

operation between organizations and local

stakeholders’ participation in projects) to developing

countries

These loans are for education, health, infrastructure,

communications and many other purposes.

Unlike other financial institutions, WB does not

operate for profit.

Objective and Function

Provide assistance to developing countries

Promote the economic development of the world's

poorer countries

Finance the poorest developing countries whose per

capita GNP is less than $865 a year special financial

assistance through the International Development

Association (IDA).

The Bank offers two basic types of

loans:

Investment loans: Support of economic

and social development projects

Development policy loans: Quick

disbursing finance to support countries

World Bank Associations

The World Bank's two closely affiliated entities

1. The International Bank for Reconstruction andDevelopment (IBRD)

2. The International Development Association (IDA

In addition to the IBRD and the IDA, three otherinstitutions are closely associated with the World Bank:

1. The International Finance Corporation (IFC),

2. The Multilateral Investment Guarantee Agency (MIGA),and

3. The International Centre for Settlement of InvestmentDisputes (ICSID).

All five of these institutions together make up the WorldBank Group.

International Bank for Reconstruction

and Development(IBRD)

Founded in 1944 at the Bretton Woods Conference

to finance the reconstruction of countries affected by WWII

help with development of impoverished nations

World Bank’s central institution

181 member countries

Lends to countries with relatively high per capita incomes

Money is used for:

development projects (i.e. highways, schools)

Provides technical assistance in projects

International Development Association(IDA)

Established in 1960

assist the poorest developing countries

lends to countries with annual per capita incomes of

about $800 or less

It’s loans are knows as “credits”

161 members

International Finance Corporation(IFC)

Established in 1956 to reduce poverty and improve people's

lives in an environmentally and socially responsible manner

174 members

Finances private sector investments, mobilizes capital in

international financial markets, and provides technical

assistance and advice to governments and businesses

Provides both loan and equity finance for business ventures

in developing countries

Multilateral Investment Guarantee Agency(MIGA)

Established in 1988

Helps developing countries attract foreign

investment

Provides investment marketing services and legal

advisory services to its members

152 members

International Center for the Settlement of

Investment Disputes(ICSID)

Established in 1966 to promote increased flow of

international investment

Provides facilities for the reconciliation of disputes

between governments and foreign investors

131 members

The World Bank (WB)

WB focuses on achievement of the 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

Combating corruption

Research, Consultancy and Training.

Areas of operation

Agriculture and Rural

Development

Conflict and Development

Development Operations and

Activities

Economic Policy

Education

Energy

Environment

Financial Sector

Gender

Governance

Health, Nutrition and

Population

Industry

Information and

Communication Technologies

Information, Computing and

Telecommunications

International Economics and

Trade

Labor and Social Protections

Law and Justice

Macroeconomic and Economic

Growth

Mining

Poverty Reduction

Poverty

Private Sector

Public Sector Governance

Rural Development

Social Development

Social Protection

Trade

Transport

Urban Development

Water Resources

Water Supply and Sanitation

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.

How is World Bank Run?

The five largest shareholders, France, Germany,

Japan, the United Kingdom and the United States

appoint an executive director,

The other member countries are represented by 19

executive directors.

The President is elected by the Board of Governors for a five-

year, renewable term.

How is World Bank Run?

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

Where Does the Money Come from to Operate the

World Bank

IBRD lending to developing countries is primarily financed by

selling AAA-rated bonds in the world's financial markets.

The greater proportion of its income comes from lending out its own

capital.

This capital consists of reserves built up over the years and money

paid in from the bank's 184 member country shareholders.

IBRD’s income also pays for world bank operating expenses and has

contributed to IDA and debt relief.

CONT…

IDA is the world's largest source of interest-free

loans and grant assistance to the poorest countries.

This source is replenished every three years by 40

donor countries.

Additional funds are regenerated through

repayments of

loan principal on 35-to-40-year,

no-interest loans, which are then available for re-lending.

IDA accounts for nearly 40% of our lending

What is World Bank Now?

Last year, the World Bank provided $23.6 billion for

279 projects in developing countries worldwide, with

the financial and/or technical expertise aimed at

helping those countries reduce poverty.

The bank is currently involved in more than 1,800

projects in virtually every sector and developing

country.

There are more than 63,000 donor-funded

development projects worldwide, each governed by

countless demands, guidelines and procedures

designed to protect the project and ensure that aid gets

to the poor.

Summary

Since inception in 1944, the World Bank has expanded from a

single institution to a closely associated group of five

development institutions.

Our mission evolved from the IBRD as facilitator of post-war

reconstruction and development to the present day mandate of

worldwide poverty alleviation in conjunction with our affiliate,

the International Development Association.

Once we had a homogeneous staff of engineers and financial

analysts, based solely in Washington, DC. Today, we have a

multidisciplinary and diverse staff that includes economists,

public policy experts, sector experts and social scientists, and

30% of our staff is now based in country offices.

Summary

Reconstruction remains an important focus of ourwork, given the natural disasters and post conflictrehabilitation needs that affect developing andtransition economies.

We have, however, broadened our portfolio's focus toinclude social sector lending projects, povertyalleviation, debt relief and good governance. Attoday's World Bank, we have sharpened our focus onpoverty reduction as the overarching goal of all ourwork.

For more on the world bank visit:www.worldbank.org