1. International Organisation World Bank

2. The world Bank was established in the year 1945 to give loans to more advanced stages of economic & social growth of developing countries. The World Bank finances to all kinds infrastructure development such as roads, railways, communication, ports, power & energy, oil & gas. World Bank

3. World Bank Group:

4. IBRD- Industrial Bank for Reconstruction & Development. IDA-International Development Association. IFC- International Finance Corporation. MIGA-Multilateral Investment Guarantee Agency. ICSID-International Centre for Settlement of Disputes.

5. World Bank(185countries):

6. Capital subscribed by member countries. Retained earnings. Generate funds from capital market (own borrowings). Bank loan (repayable within 20 yrs). Interest calculated on cost of borrowings. Resource

7. Powers vested on Board of Governors. Bank Governors delegated powers to Board of Executive Directors of HQ. 21 Executive Directors. 5 Largest shareholders directors(US, Japan, Germany, France, UK) Rest are elected by Governors representing other member country. Meet once in a year. Serve a 5 year term. Organisation

8. To assist in the reconstruction & development of territories by investing capital. To restore & reconvert the economies of the member countries destroyed by war. To encourage the development of productive facilities. To promote private foreign investment. To promote the long-range balance growth. Finance for productive purposes. To encourage international investments. OBJECTIVE:

10. Contribute to a more sustainable BOP in the maintenance of growth in the face of severe constraints.

11. This program lays more importance on future growth.Financing Policies:

13. Restore credit working & growth.

14. Successful in meeting its objectives.Contd..

15. Assess the repayment prospects. Lend only for specific projects. Help to enable to meet the foreign exchange Encourages to procure machinery at cheapest possible market consistent with satisfactory performance. To maintain continuing relations with borrowers. Indirectly attaches special importance for local private enterprise. Bank’s AOA guided by certain policies:

16. Total 24 loans given to India totaling $662 million by July 2010, Recently sanctioned $70 million on 29th July 2010, for the improvement & expansion of Indian railways, @ 5.75% interest rate tenure of repayment is 20 years 1% along with interest as special reserve. World Bank & India

17. Largest beneficiaries until China become a member in 1980. Assistance to India 5% of the total bank assistance. India’s share in the Bank Global credit declined over the years. China’s entry seriously affected the fund flow to India. Needs substantial increase in concessional finance for poverty alleviation & eco. Dev. Conclusion: