1. Economic Development
and the World Bank

2. FACTS
• Formation: 27 December 1945
(following ratification of Bretton Woods
agreement)
• 188 members
• Headquarter: Washington D.C.
• 10,000 employees in more than 100 offices
worldwide

3. The World Bank Group consists of 5 Agencies

4. Mission

5. CPI – Corruption Perception Index

6. Criticisms:
The Three Main Institutions
IMF:
Has imposed misguided policies?
WTO:
Dominated by rich countries and corporations?
World Bank:
Wastes resources on corrupt elites?

7. The World Bank President
Traditionally, the Bank President has always
been a US citizen nominated by the (president
of the) United States, the largest shareholder
in the bank.
Current President: Jim Yong Kim - first Bank
leader whose professional background is not
in the political or financial sectors.

8. The World Bank
Chief Economists
The World Bank Chief Economist provides
intellectual leadership and direction to the
Bank’s overall development strategy and
economic research agenda. As a member of
the Bank’s senior management team the
person advises the President and Bank’s
management on economic issues.
Anne Osborn Krueger— 1982–1986
Stanley Fischer — 1988–1990
Lawrence Summers — 1991–1993
Michael Bruno — 1993–1996
Joseph E. Stiglitz — 1997–2000
Nicholas Stern — 2000–2003
François Bourguignon — 2003–2007
Justin Yifu Lin — 2008–2012
Kaushik Basu (September 2012-)

9. Regional and National Development Banks
• EIB (European Investment Bank)
• IADB (Inter-American Development Bank)
• ADB (Asian Development Bank)
• AFESD (Arab Fund for Economic and Social
Development)
• EBRD (European Bank for Reconstruction and
Development)

10. Measuring Economic Development

11. Measuring Economic Development
Simon Kuznets, the winner of the 1971 Nobel
Prize in economics, developed the basic
concepts of national-income accounting
during the 1920s and 1930s.

12. Weaknesses of GDP
 Definition GDP (Gross Domestic Product): The total
market value of all final goods and services produced
in a country in a given year
 Price increases = Wealth increases?
 Counts remedial and defensive expenditures as
positive contributions to commerce.
 Does not include non-market benefits
Does not include black-market activities

13. GNH "Gross National Happiness"
The term "gross national happiness" was coined
in 1972 by Bhutan's former King Jigme Singye
Wangchuck, who has opened Bhutan to the age
of modernization.
4 PILLARS:
•sustainable development
•establishment of good governance
•conservation of the natural environment
•preservation and promotion of cultural values

14. Scientific Theory of Happiness
The PERMA Model
Psychologist Martin Seligman provided the acronym PERMA to summarize
Positive Psychology's findings: humans seem happiest when they have:
Pleasure, Positive Emotion (tasty food, warm baths, etc.),
Engagement (or flow, the absorption of an enjoyed yet challenging activity),
Relationships (social ties are a reliable indicator of happiness),
Meaning (a perceived quest or belonging to something bigger), and
Accomplishments (having realized tangible goals).

15. The Happiest Place on Earth: Denmark
www.happyplanetindex.org

16. The Happiest Place on Earth: Denmark
• Relative equality between the citizens
• High-quality government services such as
mass transportation, healthcare, subsidized
child care, and a free educational system (all
the way through college).
• A high amount of trust between the citizens
and the government.
• Relatively low expectations

19. Microfinance
• The provision of financial services to low-
income clients or solidarity lending groups
including consumers and the self-employed,
who traditionally lack access to banking and
related services.
• Not just credit but also savings, insurance,
and fund transfers.
• Muhammad Yunus:
Grameen Bank
2006 Nobel Peace Price

20. The New Development Bank (NDB), formerly referred to as the BRICS
Development Bank, is a multilateral development bank operated by the BRICS
states (Brazil, Russia, India, China and South Africa) as an alternative to the
existing US-dominated World Bank and International Monetary Fund. It will be
headquartered in Shanghai, China. Unlike the World Bank, which assigns votes
based on capital share, in the New Development Bank each participant country
will be assigned one vote, and no countries will have veto power.

22. HISTORY OF POLITICAL AND ECONOMIC THOUGHT

23. FINANCIAL MARKETS: THE CITY OF LONDON

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