1. Ishpreet Singh – 12P139
Karan Jaidka – 12P141
Lucky Sharma – 12P145
Prabhat Singh– 12P154
Vignesh Patil – 12P177
Viswanath Kuppa – 12P180
PGPM – Section C – Group 9
1

2. Partners
Where does
History money come
from ?
World Bank
Where does
Lessons of money go ?
experience
Role of
Help to World
India Bank
2

3. • Founded in 1944,at Bretton Woods, New Hampshire
• First loan to France in 1947 of $250 million
• 1947 - Incorporation into UN System
History • 1979 - Lending for the fiscal year crosses the $10
billion mark for the first time
• 1995 – James D. Wolfensohn becomes Bank president
• One of the world’s largest sources of development
What is assistance (FY 2001 provided more than US$17
World billion in loans)
Bank ? • IBRD has 183 members, IDA has 161, the IFC has 174,
MIGA has 154 and ICSID has 133
3

4. IBRD
ICSID World IDA
Bank
Group
MIGA IFC
4

5. Partners
International Organizations (EU,IMF,UN,WTO)
Affiliates (CGIAR,CGAP, Development Gateway, GEF)
NGO’s and Civil Society
Business and the Private Sector
Donors & Co-financing
Students and the Academic Community
5

6. What is IBRD?
• One of five institutions that make up the World Bank Group, the IBRD is
structured something like a cooperative owned and operated for the
benefit of its member countries
• Founded in 1944, it is the part of the World Bank that works with middle-
income and creditworthy poorer countries to
– promote sustainable, equitable and job-creating growth;
– reduce poverty; and
– address issues of regional and global concern
• IBRD's 24-member Board is made up of 5 appointed and 19 elected
Executive Directors who represent its 187 member countries
6

7. What does IBRD do?
• Supports long-term human and social development needs that private
creditors do not finance;
• Preserves borrowers' financial strength by providing support in crisis
periods, which is when poor people are most adversely affected;
• Uses the leverage of financing to promote key policy and institutional reforms
(such as safety net or anticorruption reforms);
• Creates a favourable investment climate in order to catalyze the provision of
private capital;
• Provides financial support (in the form of grants made available from the
IBRD's net income) in areas that are critical to the well-being of poor people in
all countries.
• IBRD helps members achieve results by delivering financial
products, knowledge and technical services and strategic advice
• It uses its capacity to call members together to discuss ways to further their
specific development objectives
• It works closely with International Finance Corporation (IFC), the Multilateral
Investment Guarantee Agency (MIGA) and the International Monetary Fund
(IMF)
7

8. How IBRD is financed?
• IBRD gets its money from the capital markets
• Investors see IBRD bonds as a safe and profitable place to put their money
and their cash finances projects in middle-income countries
• IBRD enjoys its high credit rating of AAA because it is backed by the
capital commitments of its 186 shareholder governments
• Annual funding volumes vary from year to year, and are currently around
$10-15 billion
• IBRD earns an income every year from the return on its equity and from
the small margin it makes on lending
• This pays for IBRD's operating expenses, goes into reserves to strengthen
the balance sheet and also provides an annual transfer to the
International Development Association (IDA)
• IBRD clients are middle-income and credit-worthy lower income
countries
8

9. Criteria for membership
• Middle-income countries are defined as having a per capita
income of between around US$1,000 and US$10,000, which
may qualify them to borrow from IBRD
• Low-income countries with a per capita income of less than
$1,000 usually do not qualify for IBRD loans unless they are
creditworthy
• India, Indonesia and Pakistan are examples of creditworthy
low-income countries which are eligible for a blend of
financial assistance from both IBRD and IDA
9

10. What is IDA?
• The International Development Association (IDA) is the part of the World
Bank that helps the world’s poorest countries
• IDA aims to reduce poverty by providing loans (called “credits”) and
grants for programs that boost economic growth, reduce inequalities, and
improve people’s living conditions
• IBRD and IDA share the same staff and headquarters and evaluate projects
with the same rigorous standards
• IDA charges little or no interest and repayments are stretched over 25 to
40 years, including a 5- to 10-year grace period
• IDA also provides grants to countries at risk of debt distress
• IDA is one of the largest sources of assistance for the world’s 81 poorest
countries, 39 of which are in Africa, and is the single largest source of
donor funds for basic social services in these countries
• IDA-financed operations deliver positive change for 2.5 billion people, the
majority of whom survive on less than $2 a day
10

11. IDA Fund Allocation (1/2)
• IDA funds are allocated to the recipient countries in relation to their
income levels and record of success in managing their economies and
their ongoing IDA projects
• The lending terms are determined with reference to
– recipient countries' risk of debt distress,
– the level of GNI per capita, and
– creditworthiness for the IBRD borrowing
• Recipients with a
– high risk of debt distress receive 100 percent of their financial
assistance
– medium risk of debt distress receive 50 percent in the form of grants
and
– Other recipients receive IDA credits on regular or blend and hard-
terms with 40-year and 25-year maturities respectively
11

12. IDA Fund Allocation (2/2)
• IDA-financed operations address
– primary education,
– basic health services,
– clean water and sanitation,
– environmental safeguards,
– business climate improvements,
– infrastructure and institutional reforms
• These projects pave the way toward economic growth, job
creation, higher incomes and better living conditions
12

13. World Bank – Project Monitoring and Evaluation (M&E)
Cost-Benefit and Cost-Effective Analysis Performance Logical Framework Theory based
Indicators Approach Evaluation
• Tools for • Measures of • Helps to clarify • In-depth
assessing inputs, processes objectives understanding of
whether or not , outputs and the “program
• Aids in
the costs of an impacts on theory” or
identification of
activity can be projects and “program logic
the “program
justified by the strategies logic”, • Provides early
outcomes and
• Used to set outcomes and feedback about
impacts
targets, track impact what is or is not
• Used to identify progress, identif working, and
projects that ying problems why
offer the highest early
rate of return on
investment.
13

14. World Bank – Project Monitoring and
Evaluation (M&E)
Rapid Appraisal Public Expenditure
Formal Surveys Participatory Methods
Models Tracking Surveys
• Used to collect • Quick, low-cost ways • Provides active • Track the flow of
standardized to gather the views involvement in public funds and
information from a and feedback of decision-making for determine the extent
carefully selected beneficiaries and those with a stake in to which resources
sample of people or other stakeholders, in a project actually reach target
households order to respond to • Helps in identifying groups
• Providing baseline decision-makers’ problems and • The surveys examine
data against which needs for information trouble-shooting the
the performance of • Helps in providing problems during manner, quantity, and
the rapid information for implementation and timing of releases of
strategy, program, or management in learning about resources to different
project can be decision-making local conditions levels of government
compared
14

15. World Bank IMF
Size and Structure: Slightly complex, 2 major Size and Structure: No affiliates or subsidiaries; about
organizations (IBRD and IDA); associated with IFC, 2,300 staff members
ICSID, MGA; about 7,000 staff members
Source of Funding: Acquires most of its financial Source of Funding: Draws its financial resources
resources by borrowing on the international bond principally from the quota subscriptions of its member
market countries
Type of Institution: An investment bank, Type of Institution: not a bank and does not
intermediating between investors and recipients, intermediate between investors and recipients. The
borrowing from the one and lending to the others IMF is more like a credit union whose members have
access to a common pool of resources to assist them
in times of need
Recipients of Funding: Developing countries whose Recipients of Funding: All member nations, both
per capita GNP exceeds $1,305 may borrow from the wealthy and poor, have the right to financial
IBRD. The IDA lends only to governments of very poor assistance from the IMF
developing nations whose per capita GNP is below
$1,305 (interest free, maturity = 35-40 years)
Operations: encourage poor countries to develop by Operations: the IMF continues to urge its members to
providing them with technical assistance and funding allow their national currencies to be exchanged
for projects and policies that will realize the countries' without restriction for the currencies of other
economic potential member countries; provides short- and medium-term
financial assistance to member nations that run into
temporary balance of payments difficulties
15

16. World Bank – IMF co-operation
• Focusing on structural reform in recent years has resulted in
considerable convergence in the efforts of the Bank and IMF
and has led them to greater reliance on each other's special
expertise.
• The regular and frequent interaction of economists and loan
officers who work on the same country.
• The Bank and the IMF have distinct mandates that allow
them to contribute, each in its own way, to the stability of the
international monetary and financial system and to the
fostering of balanced economic growth throughout the entire
membership
16

17. Perspective about India
• World Bank lending to India is organized
around the following key challenges:
– achieving rapid and inclusive growth,
– building strong partnerships with low-income
states,
– agricultural and rural development, and
– enhancing infrastructure
17

18. Current Projects in Execution
18

19. 19

20. Education and the World Bank in India
Summary
• Primary education is a fundamental right in India, and at the
international level an important Millennium Development Goal
to which India and the Bank are totally committed.
• GOI and States increasingly recognize education as a critical
input for human capital development, employment/ jobs, and
economic growth, and are putting major financial and technical
resources into this effort.
• Nevertheless, demand for education far exceeds supply, in terms
of both access and quality, at all levels.
20

21. Where does money come from?
WB raises money (IBRD) by lending to developing countries is primarily
financed by selling AAA-rated bonds in the world's financial markets
IBRD bonds are purchased by a wide range of private and institutional investors in
North America, Europe, and Asia.
While IBRD earns a small margin on this lending, the greater proportion of income
comes from lending out their own capital.
WB also has US$178 billion in what is known as "callable capital," which could be
drawn from their shareholders as backing, should it ever be needed to meet IBRD
obligations for borrowings (bonds) or guarantees
21

22. World Bank: Strategy and Support
• IDA Lending: 0%, 35 years to repay with first 10 years “grace” (no
repayment)
• Since FY00: over US$ 1 Billion (Rupees 40 billion) committed to sector.
• Over last 10 years: eight State-level District Primary Education Projects
• US$ 280 M for VET: support 400 Industrial Training Institutes, for
improved quality and relevance (June 2007)
• US$ 250 M for Technical Education and Engineering: reforms in 128
competitively selected engineering institutions in 13 states to address
skills shortages
• US$ 70 M for polytechnics in six remote states (possible $300 M
additional)
• State education reforms in Orissa and AP
• US$ 500 M for SSA I; Additional US$500 M in November 2007 for SSA II
– Increased focus on quality in SSA II
– Partner with European Commission and UK DFID
– Still a small player: Bank $ is less than 10% of GOI $
22

23. Collaboration with Civil Society
• Over 7,000 NGOs participating as partners in SSA
– Alternative education programs: “bridge courses”
– Monitoring of quality
– Capacity-building of VECs
– Reference Groups advising States, Districts and Blocs
– Contracting (e.g. MP with Pratham)
• Not surprisingly, varies greatly by State
23

24. World Bank Research
• Elementary Education
– Impact evaluation regarding:
• Incentive payments and schooling inputs on student learning
• Dissemination of education information on school governance and
student outcomes
• School characteristics and student outcomes
• Instructional time on task survey
• Early Childhood Development
– focus on integrated (health/nutrition/education) approaches
– Will feed into US$ 450 M Integrated Child Development Services
Project
• Secondary Education – major analytical study related to expanding
access, particularly for girls and marginalized groups, and to role of private
sector
• Higher Education – contribute to debate regarding how India can address
skills shortages among HE graduates, linked to economic growth
opportunities.
24

25. World Bank’s Limitations
• Engagement in Indian education is largely through centrally-sponsored
schemes, while most implementation happens at the State level. Need to
find ways to foster dialogue and technical assistance with States, and
increase exchanges with civil society on substantive policy issues.
Additional Issues for Discussion
• Access versus quality tradeoffs
• Role of public and private sectors in education financing and provision
• Prioritization of education levels (basic, secondary, VET, higher)
• Role of civil society in policy debates and project implementation
25

26. Country Program Strategy (CPS)
• The World Bank prepares a CPS to set out the priority areas of its support to the country’s
development strategy (eg. India’s Five Year Plan)
– It serves as an indicative business plan in support of a country’s development goals.
– Oriented toward results, the CPS is developed in consultation with country
authorities, civil society organizations, development partners, and other stakeholders.
– It identifies the key areas where the Bank's assistance can have the biggest impact on
poverty reduction.
• From this assessment, the level and composition of Bank Group’s financial, advisory, and
technical support to the country is determined. Consultations with civil society are key to
identifying the internal and external challenges facing countries in its fight against poverty.
• Through consultations, the World Bank Group is able to tap into a broad range of
perspectives from those involved or affected by development programs. It aims to
integrate comments and new ideas into its operations, policies and final documents.
• Consultations help capture the experience and knowledge of multiple
audiences―government, NGOs, academia and think tanks, media and the private sector―
to enable greater participation of partners and stakeholders in operations supported by
the Bank
26

27. Focus areas of support identified for CPS 2008-12
• Pillar 1: Rapid and Inclusive growth
• Infrastructure building
• Enhancing agriculture productivity
• Increasing access to finance, for the poor
• Leveraging private investments
• Pillar 2: Sustainable development
 Supporting implementation of the GoI’s low carbon strategy
 Cleaner Coal
 Renewable energy sources - hydel, solar, wind
 Integrated coastal zone management and biodiversity conservation
 Strengthening disaster management (flood management in Bihar)
• Pillar 3: Service delivery improvement
 Promoting universalization of primary and secondary education; Strengthening public
Health delivery systems (NRHM)
 Strengthening implementation and effectiveness to national development programs
 Enhancing delivery of public services, such as water
 Promoting rural road connectivity, road safety and asset management
27

28. CPS 2008-2012 : Implementation Highlights
1. Scaling up of WBG engagement in India
 IBRD/IDA and IFC lending doubled:
 New areas of engagement:
 Moving from projects to country-wide programs:
 Knowledge and Technical Assistance (TA)
2a. Aiming for growth with inclusion
 Agriculture productivity and sustainability
 Transport Sector :
 Financial and private sector development
2b. GoI’s Growth with Inclusion agenda
 Poverty alleviation and social inclusion
 Engaging in low income states
3 Sustainable development initiatives
28

29. Planning the next CPS: current context
• India sustaining growth, though at lower levels
– While India’s growth rate in FY11/12 fell under 7%, it still is the second
fastest growing economy.
– From 1.7% of world GDP in 1980 to 5.5% in 2010 (4th largest)
– An increasing contribution to the international agenda - role within
G20, ASEAN, BRICS initiative etc.
– Falling corporate investment from 14% of GDP before crisis to 10%
• Global economic developments could pose serious challenges, given India’s
limited fiscal space
• Challenged by unequal benefit distribution –regional, caste, gender, income
categories, rural-urban, etc.
• Governance in focus:
 RTI Act, Women political empowerment, decentralization, E-service
delivery and Corporate governance
29

30. India Country Partnership Strategy 2013-16
The consultation process for CPS 2013-16
• Preparation on draft presentation on CPS
– Consultations with Ministry of Finance and line ministries at the
Centre
– Consultations with state government officials across six states
including Karnataka, Chhattisgarh, Assam, and Uttar Pradesh
– Civil society Consultations in Delhi and five state capitals –
Bangalore, Raipur, Guwahati, Lucknow and Mumbai
• Preparation of CPS
– Sharing of next CPS through website and email updates for further
feedback
– A separate section on the issues discussed during consultations with
civil society will be prepared
30

31. Planning the CPS : India 12th Plan highlights
 1st pillar: rapid & inclusive growth
 Investment rate of 38.5%; Jobs; Manufacturing, especially in SMEs; Agri growth,
improving Business climate, Domestic market integration
 One trillion in Infrastructure; Energy
 2nd pillar: sustainable development
 Improving the management of natural resources
• Strengthening land acquisition and R&R processes, rationalizing land use in urban
areas, promoting land titling/leasing
• Towards “ a credible and fair system of exploitation of mineral resources”
• Promoting green development: water & energy efficient, low carbon development
 Strengthening natural disaster management/resilience
 3rd pillar: enhanced effectiveness of service delivery
 Reforming the health system
 Improving quality of (universal) primary education
 Universalizing access to secondary education by 2017
 Enrolling 10 million additional students in higher education (Increasing present gross
enrollment rate of 18% to 25%)
31

32. CPS 2013-16 : Strategic Objectives under Consideration
 Catalyzing infrastructure investment and creating bankable projects
 Financial engineering, PPP, asset management,
 Strengthening risk management
 Regional integration (energy, water resources, transport facilitation)
 Strengthening project management
 Promoting human development
 Managing demographic growth
 Job creation
 Urbanization
 Universalizing access to quality health services
 Education & skill development
 Fighting poverty alleviation & promoting social inclusion:
 Livelihood (rural & urban)
 Gender, equality of opportunity
32

33. CPS 2013-16 : Strategic Objectives under Consideration
 Supporting/informing key structural reforms
 Natural resources management (water, land, mineral)
 Energy security
 Agricultural productivity & food security
 Integration & performance of domestic markets
 Governance reforms
 Scaling up and bringing to fruition
 GoI’s urban agenda – service delivery such as transport, water, etc.
 Use of country systems for fiduciary controls and safeguards:
 Scaling up knowledge
 Accompanying India’s transition to a MIC
 Infrastructure regulatory framework, investment climate, domestic market
integration, governance, social/financial/legal inclusion, public finance
management, social and environmental safeguards
 Leveraging India’s development experience on behalf of other developing
countries: India as a funder and the main provider of knowledge and experience
within the South-South experience exchange
 Managing Finance Constraints
33

34. 34
IBRD and IDA Lending by IBRD and IDA Lending by
Region │ Fiscal 2012 Theme │ Fiscal 2012
Share of Total Lending of $43 Billion Share of Total Lending of $43 Billion
Economic Environmental
South Asia Africa and Natural
Management
24% 16% Trade and Urban Resources
2%
Integration Development Management
6% 10% 14%
Social
Protection and
Risk
Management
Financial and
Middle East 13%
Private Sector
and North
East Asia Development
Africa Social
and Pacific 19%
5% Development,
19% Human
Gender, and
Development
Inclusion
10%
2%
Latin Rural
America Development
Public Sector
and the Europe and 13%
Rule of Law Governance
Caribbean Central Asia
<1% 11%
22% 14%

35. 35
IBRD and IDA Lending by Sector │ Fiscal 2012 SOUTH ASIA
Share of Total Lending of $43 Billion Total IBRD and IDA Lending │
Fiscal 2006–12
Agriculture, Fi millions of dollars
Water, Sanitati shing, and Education
on, and Flood Forestry 4% 12,000
Protection 5%
Energy and
11%
Mining
10,000
14%
Transportatio 8,000
n
20%
Finance
2% 6,000
Health and 4,000
Other Social
Services
16% 2,000
Public Industry and
Administratio Information Trade
and 5% -
n, Law, and
Justice Communicati FY06 FY07 FY08 FY09 FY10 FY11
22% ons
<1%

36. 36
IBRD Top 10 Borrowers │Fiscal 2012 IDA Top 10 Borrowers │Fiscal 2012
millions of dollars millions of dollars
4.0 2,500
3.5
2,000
3.0
2.5
1,500
2.0
1,000
1.5
1.0
500
0.5
- 0

37. 37
South Asia
Regional Snapshot
Total population 1.7 billion
Population growth 1.4%
Life expectancy at birth 65 years
Infant mortality per 1,000 births 52
Female youth literacy 73%
Number of people living with HIV/AIDS 2.7 million
2010 GNI per capita $1,305
GDP per capita index (2000=100) 172
Note: Data for life expectancy at birth, infant mortality rate per 1,000 live births, female youth literacy, and people living with
HIV/AIDS are for 2012; other indicators are for 2010 from the World Development Indicators database. HIV/AIDS data are from
UNAIDS Report on the Global AIDS Epidemic 2012.
Total Fiscal 2012 Total Fiscal 2012
New Commitments Disbursements
IBRD $1,158 million IBRD $1, 037 million
IDA $5, 288 million IDA $2, 904 million
Portfolio of projects under implementation as of June 30, 2012: $37.8 billion

38. 38
South Asia South Asia
IBRD and IDA Lending by Theme │ Fiscal 2012 IBRD and IDA Lending by Sector │ Fiscal 2012
Share of Total Lending of $10.1 Billion Share of Total Lending of $10.1 Billion
Agriculture,
Fishing, and Education
Urban Economic Energy and
Trade and Development Forestry 5%
Management Mining
Integration 4% 1% 4% 7%
6% Environmenta
Water, Sanit Finance
l and Natural
ation, and <1%
Social Resources
Protection Management Flood Health and
and Risk 12% Protection Other Social
Social Management 11% Services
Development, 13% Financial and 13%
Gender, and Private Sector
Inclusion Development
26% Transportati Industry
2%
on and Trade
39% 4%
Information
Human and
Rural
Development Public Communica
Development
8% Administrati tions
22%
on, Law, an 2%
Public Sector
d Justice
Rule of law Governance
15%
<1% 7%

39. World Bank to lend $5 bn to India for poverty eradication
– TOI dated 14th March 2013
 Visiting World Bank President Jim Yong Kim told a press conference that the multi-
lateral agency will deepen its engagement with India for alleviating poverty
 World Bank on 13th March 2013 said it would give $3-5 billion to India in the next
four years to push development projects and poverty eradication programmes
 There are more than 200 million people in Uttar Pradesh, of which 70 million
people are below the poverty line. Eight per cent of the world’s poor are in Uttar
Pradesh. If they want to end poverty, they have to end poverty in Uttar Pradesh
and in other states
 Kim, who had earlier, pegged India’s economic growth at six per cent for the next
financial year, said the economy could expand at a higher pace than this rate.
39

40. Basic Education
• Two decades of focused programs in basic education have reduced out-of-
school youth to about 10 M (down from 25 M in 2003), most from
marginalized social groups. Net enrollment rate is 85%, with social
disparities.
• Key challenge is to finish the “access agenda” and dramatically increase
focus on quality, with more attention to classroom processes, basic
reading skills in early grades, teacher quality and
accountability, community/parent oversight, evaluation/assessment.
Secondary Education
• Access and Quality remain big challenges.
• Gross enrollment rate of 40%, with significant gaps between
genders, social groups, urban/rural, such that most secondary students
are urban boys from wealthier population groups.
• Private aided and unaided schools = 60% of all secondary schools, and
growing.
• Overloaded curriculum, poor teaching practices and low primary level
quality affect secondary quality.
40

41. Vocational Education and Training (VET)
• VET system is small, and not responding of needs of labor market; <40%
of graduates find employment quickly.
• Insufficient involvement of industry and employers in VET system
management, internships.
• Lack of incentives of public training institutions to improve
performance.
Technical and Higher Education
• Numerically huge: 330 universities and 18,000 colleges
• Substantial private provision in professional education.
• But just 11% of youth 18-23 are enrolled.
• Problems of capacity, quality, relevance, and public funding. Hard to
retain qualified faculty. Limited research.
• Several world-class institutions.
41

42. GOI Education Strategy
• Unprecedented priority to universal elementary education.
• Sarva Shiksha Abhiyan: aims to universalize elementary education by
2014, and improve learning outcomes.
• Education cess of 3% on income tax, corporation tax, excise and customs
duties generates necessary resources
• Cost-Share: was 50/50 (2007), moving to 65/35 Center/State
• Estimate: 11th Plan: ’07-’12: 60,000-70,000 crores (US$17 billion)
• Increased focus on quality and upper primary in phase II.
• National Mission for Skills is being set up, looking at both VET and secondary
education
• New centrally sponsored scheme to update all industrial training institutes
(ITIs)
• Significant investments in higher education (including reforms and expansion)
are expected
42

43. Millennium Development Goals
43

44. 44