The World Bank is an international financial institution that provides loans and grants to developing countries for projects focused on areas like education, health, infrastructure, and poverty reduction. It has over 180 member countries and is comprised of five institutions, including the International Bank for Reconstruction and Development and the International Development Association. The World Bank aims to reduce global poverty and improve living standards through development programs and initiatives.
2. • The World Bank is an international financial institution
that provides financial and technical assistance to
developing countries for development programs
• WB provides low-interest loans, interest-free credit
and grants.
• These loans are for
– education,
– health,
– infrastructure,
– communications and many other purposes.
• Unlike other financial institutions, WB does not
operate for profit.
3. • Headquarters : Washington, DC, and more
than 100 country offices
• Established : July 1, 1944
• CEO :- Kristalina Georgieva (2
Jan 2017
• President JIM YONG KIM
• Membership :- 185 countries
• Main Organ : Board of Directors
• Parent Organization : World Bank Group
• Affiliates :- IFC, MIGA, ICSID
• web site- www.worldbank.org
• WB mission is to -
• Reduce poverty in the globe
• Improve the living standard
4. Kristalina Georgieva
12th and current President
of the World Bank since
2012. On January 7, 2019
Jim Yong Kim
President of the World Bank Group from
1 February 2019. Until 2017, she was Vice-
President of the European Commission in
the college
5.
6. • To provide long term capital to member countries for
economic reconstruction and development. World Bank
provides capital mainly for the following purposes:
– To rehabilitate war ruined economies (this objective is fully achieved).
– To finance productive efforts according to peace-time requirements
– To develop resources and production facilities in underdeveloped
countries.
• To induce long-run capital investment for assuring BOP
equilibrium and balanced development of international trade.
• To promote capital investment in member countries by
following ways:
• To provide guarantee on private loans or capital investment.
7. • If private capital is not available even after
providing guarantee, then IBRD provides loans for
productive activities on considerate conditions.
• To provide guarantee for loans granted to small
and large units and other projects of member
countries.
• To ensure the implementation of development
projects so as to bring about a smooth
transference from a war-time to peace economy
8. • 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:
1) Build capacity
2) Infrastructure creation
3) Development of Financial Systems
4) Combating corruption
5) Research, Consultancy and Training.
10. • Agriculture and Rural Development
• Economic policy
• Education
• Energy
• Environment
• Financial sector
• Health, nutrition and population industry
• Information, computing and telecommunication
• Law and justice
• Private sector
• Social protection
• Trade
• Water resources
• Water supply and sanitation
12. • IBRD lending to developing countries is
financed by selling AAA-rated bonds.
• IDA is the world’s largest source of interest
free loans and grant assistance to the poorest
countries.
14. • Relieve the debt burden of heavily indebted poor
countries
• Improve sanitation and water supplies
• Support vaccination and immunization programs
to reduce the incidence of communicable
diseases like malaria
• Combat the HIV/AIDS pandemic
• Support civil society organizations
• Create initiatives to cut the emission of
greenhouse effect
15. • Poverty Assessments
• Public Expenditure Reviews
• Country Economic Memoranda
• Social and Structural Reviews
• Sector Reports
• Topics in Development
16. • Advisory Services
• Global Development Learning Network
• World Bank Institutes Global and Regional
Programs
17. • THE WORLD BANK'S TWO CLOSELY AFFILIATED ENTITIES
1. The International Bank for Reconstruction and Development (IBRD)
2. The International Development Association (IDA)
❑ In addition to the IBRD and the IDA, three other institutions are closely
associated with the World Bank:
a) The International Finance Corporation (IFC),
b) The Multilateral Investment Guarantee Agency (MIGA), and
c) The International Centre for Settlement of Investment Disputes
(ICSID).
➢ ALL five of these institution together make up a WORLD BANK GROUP.
18. ❑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:
o development projects (i.e. highways, schools)
o Provides technical assistance in project
19. • 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
20. )
• 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
21. • Established in 1988
• Helps developing countries attract foreign
investment Provides investment marketing
services and legal advisory services to its
members
• 152 members
22. • Established in 1966 to promote increased flow
of international investment
• Provides facilities for the reconciliation of
disputes between governments and foreign
investors
• 131 members
23. • 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.
• The five largest shareholders, France, Germany, Japan, the United
Kingdom and the United States appoint an executive director,
24. • 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
• 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
25. • India is over one-quarter of the world’s poor,
and the World Bank Group is focused on
sharing best practices as well as financing for
development as part of its mission ton help
reduce global poverty
26.
27.
28. • It was started to reduce poverty but it support
United States’ business interests.
• The President of the Bank is always a citizen of
the United States.
• Lack transparency to external publics.
• It is an instrument for the promotion of U.S. or
Western interests.
• The decision-making structure is undemocratic.
29. ✓ World bank provides the largest external funds for
education.
✓ It is a big support in reducing poverty.
✓ It provides fund for biodiversity projects.
✓ it helps to bring clean water, electricity, and
transport to poor people.
✓ It helps in controlling emerging conflicts.
30. • 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.