WORLD BANK

By

SRITHIKA (093156)

SNEHA(0903160)

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.

The World Bank is a lending institution that funds essential infrastructural requirement, globally.

The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)

World Bank Group incorporates these two in addition to three more: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).

AT A GLANCE

NAME : WORLD BANK H.Q. : WASHINGTON D.C. ESTD. : 27 DEC 1945 MEMBERSHIP : 185 COUNTRIES CURRENT PRESIDENT : ROBERT B. ZOELLICK. STAFF : 10000 IN 100 COUNRIES AUTHORIZED CAPITAL : $184 BILLION FINANCIAL SOURCES : BORROWING ON

INTERNATIONAL MARKET

HISTORY

Conceived during World War II (July, 1944) at Bretton Woods, New Hampshire.

1944 - 1968: Bank president John McCloy selected France to be first recipient of World Bank aid. The loan was for US$250 million.

1968 - 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.

Initially was called the International Bank for Reconstruction and Development (IBRD). Now is called the “World Bank Group

FUNCTIONS

The Bank Group uses financial resources and extensive experience to help poor nations reduce poverty, increase economic growth, and improve the quality of life.

World Bank provides technical and financial assistance to underdeveloped nations for development schemes like building roads, schools, hospitals, etc. The main aim is to eliminate poverty from the world

Current global challenges include the financial crisis, high food prices, and climate change.

PRESENT1944

Focus:Post-war reconstruction anddevelopment

Organization:A homogeneous staff ofengineers and financialanalysts, based solely inWashington, D.C.

Portfolio:Heavy infrastructure investmentprojects

TodayFocus:World-wide povertyalleviation.

Organization:A multidisciplinary anddiverse staff includingeconomists, public policyexperts, sectoral experts,and social scientists; 40%internationally located.

Portfolio:Social sector lending projects,poverty alleviation, and theComprehensive DevelopmentFramework.

WORKING GROUPS OF WORLD BANK International Bank for Reconstruction and Development

(IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes

(ICSID)

The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries.

The International Development Association (IDA) provides interest-free loans—called credits— and grants to governments of the poorest countries.

The International Finance Corporation (IFC) provides loans, equity and technical assistance to stimulate private sector investment in developing countries

The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against losses caused by non-commercial risks to investors in developing countries

The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.

CURRENT AFFAIRS

LEADERSHIP On 30 May 2007, US President George W.

Bush nominated former deputy secretary of

state Robert Zoellick as the 11th President of

the World Bank, effective 1st July 2007.

Zoellick announced in October, 2007 that his

priorities for the World Bank included

increasing efforts to reduce poverty in the

world's poorest countries, increasing support

for neglected Arab countries, increasing

support for countries emerging from violent

conflicts, addressing poverty in "emerging"

economies like India and China, increasing

emphasis on environmental issues (especially

global warming), and improving access to

treatments for HIV and malaria.

The Executive Directors, representing the Bank's member countries,

make up the Board of Directors, usually meeting twice a week to oversee

activities such as the approval of loans and guarantees, new policies, the

administrative budget, country assistance strategies and borrowing and

financing decisions.

The Vice Presidents of the Bank are its principal managers, in charge of

regions, sectors, networks and functions. There are 24 Vice-Presidents,

three Senior Vice Presidents and two Executive Vice Presidents.

Chief Economist – Justin Yifu

Lin (june 2008), a Chinese

economist, is the chief

economist and senior vice

president of the world bank

WORLD BANK IN INDIA The World Bank's work plan in India is spelt out in its Country

Strategy (CAS). The Country Strategy for India for 2009-2012 is aligned with the

government's Eleventh Five Year Plan. It focuses on helping the country to fast-track the development of

much-needed infrastructure, support the seven poorest states, and respond to the financial crisis.

The strategy envisages total proposed lending of US$14 billion for 2009 - 2012. 

The strategy is implemented through lending, dialogue, analytical work, engagement with the private sector, and capacity building exercises.

  Commitments   FY05 FY06 FY07 FY08 FY09 FY10

New Lending 2.9 1.4   3.7 2.7 2.3 9.3

Total Commitments (Active Projects)

 12.8 11.3 14.3 13.8 14.9 21.4

Total No. of Active Projects

64 56 67 60 61 75

At the end of June 30, 2010, the World Bank group had 75 active projects in the country. The net commitment for these projects was about $21.4 billion. New lending in FY10 (1 July 2009- 30 June 2010) amounted to $9.3 billion. Total IBRD/IDA Commitments as on June 30,2010 (FY10): $21.4 billion

PROJECTS

VOTING POWER In 2010, voting powers at the World Bank were revised to

increase the voice of developing countries, notably China. The countries with most voting power are now the United States (15.85%), Japan(6.84%), China (4.42%), Germany (4.00%), the United Kingdom (3.75%), France (3.75%), and India (2.91%).

Under the changes, known as 'Voice Reform - Phase 2', countries other than China that saw significant gains included South Korea, Turkey, Mexico, Singapore, Greece, Brazil, India, and Spain. Most developed countries' voting power was reduced, along with a few poor countries such as Nigeria. The voting powers of the United States, Russia and Saudi Arabia were unchanged.

WORLD BANK – INTERNATIONAL SCENARIO

World Bank Releases US$500 million to Assist Philippine Government Address Impacts of Devastating Storm : The World Bank released US$500 million to assist the Philippine government’s recovery and reconstruction efforts in the wake of tropical storm Washi, locally known as Sendong, which devastated parts of the country during December 17-18, 2011.

World Bank Group to Provide up to $5.5 billion to Pakistan for Next Three Years: The World Bank Group (WBG) will continue to support Pakistan’s poverty reduction and development agenda with an assistance of up to $5.5 billion over the FY 12-14, according to the World Bank’s Country Partnership Strategy Progress Report (CPSPR).

Brazil: More Reliable, Affordable and Sustainable Power for All: Brazil’s energy and mining sectors are among the largest in the developing world, and have contributed significantly to the country’s growth in recent years. However, both still face challenges to realize their full development potential and promote environmental sustainability and social inclusion. To support Brazil’s efforts to meet these challenges, the World Bank has approved a US$ 49.6 million loan for the Energy and Mineral Sectors Strengthening Project.

World Bank to Finance Better Health Services for up to 8 Million Tanzanians a Year: – Up to 8 million Tanzanians should have access to better health services each year from now until 2015 following World Bank approval of US$100 million for the Basic Health Services Project. The new project is designed to build on Tanzania’s success in improving access to health services, which has helped to cut infant and child mortality rates by nearly half over the past decade.

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