Detail Presentation on World Bank

1. THE WORLD BANK
Presented by
Binay Gyanwali
Roll no 4
UCMS

2. Contents
• Introduction
• Historical Development
• Institutions(World Bank
Group)
• Organization
• Goals of World Bank
• Areas of cooperation
• World Bank and Health
• World Bank and SDG
• COVID-19 and World Bank
• World Bank in Nepal
• Criticisms
• References

3. Introduction
• World Bank is a specialized agency of the United Nations which
was established in July 1st 1944 with the purpose of helping less
developed countries raise their living standards.
• Lord Keynes and Harry Dexter White are the "founding fathers”
of both the World Bank and the International Monetary
Fund(IMF).
• It is an international financial institution that provides financial
and technical assistance to developing countries for development
programs with the stated goal of reducing poverty.

4. Introduction
• World Bank doesn't operative for profit, it provides low
interest loan, interest free credits and grants to developing
countries.
• It is an international financial institution that provides loans
and grants for low-income countries pursuing capital projects
that they are unable to fund otherwise.
• Currently 189 are engaged with The World Bank with its
headquarter in Washington DC.
• World Bank has offices in over 130 locations.

5. Historical Development of World Bank
Established as an output of Bretton Wood Conference
( 1st to 22nd July 1944).
Conference concluded on agreement for long term
recovery of European Nations devasted by World war 2
and global growth.
International Monetary Fund (IMF ) and International
Bank for Reconstruction and Development (IBRD) was
founded on the dominant negotiations of UK and USA.

6. 1944 to 1968
John Mc Coly was first President of world Bank.
Initially World Bank funds were focused on reconstruction of
European countries by landing money with no interest rate
but with strict criteria.
France was first country to receive US$250 Million as
Reconstruction loan in 1947.
After Marshall Plan went into effect in 1947, World Bank
started shifting focus towards non European Nations.

7. 1968 to 1980
• After appoint of Robert MC. Namara as President in
1968 World Bank geared up its works.
• Loan target was expanded to social and other sectors.
• New sources of capital outside America was found.
• Poverty alleviation lending policy announced for third
world.
• Loan process was made fast and easy.

8. 1980- 1989
•New president A.W Clausen was appointed and
changed many policy of previous president
•Launched Structural Adjustment Program to lend
loans to third world.
•Investment in commercial sectors increased
rapidly

9. 1989 on wards
• Bank started including environmental groups and
NGOs in its loans to mitigate past effects.
• Implementing agency formed according to Montreal
Protocol to stop Ozone depletion.
• Six Strategic Themes was established for preservation
of environment and combating climate change .
• In 2012 for first time non USA citizen Jim Young Kim
was appointed as President on 27 April 2012.

10. Institutions of World Bank Group
1) The International Bank for Reconstruction and
Development (IBRD)
2) The International Development Association (IDA)
3) The International Finance Corporation (IFC)
4) The Multilateral Investment Guarantee Agency (MIGA)
5) The International Centre for Settlement of Investment
Disputes (ICSID).

11. International Bank of reconstruction and
Development ( IBRD)
• Established in 1944 and currently has 188 member countries.
• Provides loans to Middle and Developing countries and Credit worthy
lower income countries at market rates of interest.
• Collects information and helps developing countries implement their
projects.
• Three core function of IBRD are
1. Country strategy
2. Production and services
3. Financing and risk management

12. International Development Association (IDA)
• It aims to reduce poverty by providing zero to low interest
loans and grants.
• It helps world’s poorest countries to boost economic growth,
reduce inequalities and improve peoples living standard.
• It is largest source of assistance to over 74 poorest countries.
• Provides grants to countries at risk of dept distress through
Heavily Indebted poor Countries (HIPC) initiatives and the
Multilateral Dept Relief Initiatives (MDRI).

13. The International Finance Corporation(IFC)
•Established in 1956, IFC is owned by 185 member
countries
•IFC is the largest global development institution
focused exclusively on the private sector.
•IFC help developing countries achieve sustainable
growth by financing investment, and providing
advisory services to businesses and governments.

14. The Multilateral Investment Guarantee
Agency (MIGA)
• Established and became operational on April 12, 1988
has 181 member countries.
• MIGA was created to promote foreign direct
investment into developing countries to support
economic growth, reduce poverty, and improve
people’s lives.
• MIGA fulfills this mandate by offering political risk
insurance (guarantees) to investors and lenders.

15. The International Center for Settlement of
Investment Disputes (ICSID)
• Established in October 14, 1966 has 163 member
countries.
• The International Centre for Settlement of Investment
Disputes (ICSID) provides international facilities for
conciliation and arbitration of investment disputes.

16. President
Executive Directors
Board of Governors
Organization

17. Organization
• 189 members of World Bank are represented through
Board of Governors who are the ultimate policy
makers.
• Board of Governor consist of one governor and one
alternative governor appointed by each member
country for 5 years renewable term.
• Board of governor delegate their specific duties to 25
Executive Directors who work on site at Bank.

18. Organization
•5 largest shareholder appoint executive director
while other member country are represented by
19 elected executive directors.
•President is elected by board of executive
directors for 5 years renew able term.
•David R. Malpass was elected as 13th President
of the World Bank Group on April 5, 2019.

19. Voting Rights
• It is decided according to number of shares a country posses in world
Bank.
• One vote for each share of bank’s capital stock plus basic votes.
• Country with highest shares and voting power are;
1. USA 15.85%
2. Japan 6.84%
3. China 4.42%
4. Germany 4.00%
5. UK 3.75%
• Nepal has 0.06% shares and vote power.

20. Twin Goals of World Bank
In 2013 World Bank adopted two new Goals to
guide its work
1. Ending extreme poverty and boosting shared
prosperity.
2. Faster the income growth of bottom 40% of
population of each country

21. Areas of Cooperation of World Bank
• Agriculture and rural
development
• Conflict and development
• Development operations and
activities
• Economic policy
• Education
• Energy
• Financial sector
• Health, nutrition and population
• Industry
• Information and communication
technologies
• Information, computing and
telecommunications
• International economics and
trade labor and social protections

22. Areas of Cooperation
• Law and justice
• Macroeconomic and economic
growth
• Mining
• Poverty reduction
• Private sector
• Public sector governance
• Rural development
• Social development
• Social protection
• Trade
• Transport
• Urban development
• Water resources
• Water supply and sanitation
• Gender
• Governance

23. World Bank in Health
• It is world’s largest external funder of health more than US $1 Billon
annually.
• Twin goal of world Bank is driving force for all investment and is
committed for achievement of UHC by 2030.
• World Bank recently signed Global Action Plan For Healthy Lives and
well being to deliver SDG goal 3.
• World bank Report in G20 meeting showed developing country spend
half a trillion dollar out of pocket payment for health i.e. $80 /person.
• WHO and World Bank report on 2019 suggested country must
increase at least 1% of their GDP on primary health to achieve SDG.

24. World Bank and SDG
• World Bank is partner for Implementation of SDG by
2030 in alignment with its twin goals.
• Addis Ababa Action Agenda, Disaster Risk Framework ,
Paris Climate Agreement are some guiding agreement
for World bank partnership with SDG.
• It connects global financial resources, knowledge and
innovative solutions to the needs of developing
countries .

25. World Bank and SDG
• WB which worked for the completion of MDGs now is
working for the SDGs 17 goals by 2030 with partnership goal
of strengthening the means of implementation and revitalize
global partnership for SDGS.
• World bank objective for partnership with SDG are
1. Build capacity and awareness for implementing SDG
2. Develop analytical tools to share global challenges
3. Promote multistakeholder partnership

26. World Bank and SDG
1. Bonds for SDG to support financing.
2. Refugee Investment and Matchmaking platform.
3. Improving access to finance for small holder farmer.
4. Investing in solar potential in developing cities.
5. Improving water usage in central Asia.
6. Disability inclusive development.
7. Promoting gender diversity in global business.

27. World Bank’s Response to COVID -19
• It is taking broad, fast action to help developing countries strengthen
their pandemic response.
• Over 15 months, as of June 2021, World Bank is making available
upto US $ 160 Billion for COVID-19 response including US $ 50 Billion
IDA grants.
• It has launched two programs for COVID -19 Response till now;
1. COVID-19 strategic Preparedness and Response Program (SPRP) on
April 2, 2020
2. Purchase and Distribution of COVID-19 Vaccine for developing
countries on October 13, 2020.

28. World Bank’s Response to COVID -19
•World bank is working closely with partners on
largest vaccination effort in history to stop
pandemic.
•It has promised US $ 20 Billion for making available
in 100 IDA and IBRD member countries.
•Nepal had agreement with World Bank for COVID-
19 assistance in March 18, 2021 for vaccine.

29. World Bank Projects in Nepal
Nepal became member of World Bank in 1963.
Earthquake Housing Reconstruction Project
Program Development
Objective(PDO)
To Restore affected Houses.
Approved Date June 29, 2015
Closing Date June 30, 2023
Amount US $ 500 Million
Financing Agent IBRD and IDA
Borrower Ministry of Finance
Implementation Body NRA and NDRRMA

30. Nepal School Sector Development Program
PDO To improve quality , efficiency of
education
Approved Date 24 March, 2017
Closing Date 16 July, 2022
Amount US $ 6 Billion
Borrower Ministry of Education, science and
Technology
Implementing Body Ministry of Education, science and
Technology

31. Strengthening system for Social protection
and Civil Registration Project
PDO To improve coverage and delivery
of social security allowance
Approved Date 2 December 2016
Closing Date 30 June , 2023
Amount US $ 323 Million ( 0.32 interest
rate)
Borrower Government of Nepal
Implementing Body Ministry of Home Affairs
Department of National ID and
Civil Registration

32. Nepal health sector Management Reform
Program
OPD To improve efficiency in Federal
level public resource management
Approved Date 13 January 2017
Closing Date 16 July 2022
Amount US $ 2.88 Billion
Borrower Ministry of Finance
Implementing Body Ministry of Health and Population

33. World Bank COVID-19 Response in Nepal
• World Bank Group is working closely with government of Nepal’s
COVID-19 related priorities based on four pillars.
1. Support to health for saving lives threatened by virus
2. Social response for protecting poor and vulnerable from impacts of
Pandemic
3. Economic response for saving livelihoods, preserving jobs and
ensuring sustainable human growth
4. Support for strengthening policies, institutions and investment for
resilient and sustainable recovery.

34. COVID- 19 Emergency Response & Health
System Preparedness Project
PDO To prevent, detect and respond to
threats of Pandemic
Approved Date 3 April 2020
Closing Date 15 July 2024
Amount $104 Million
Borrower Government of Nepal
Implementing Body Ministry of Health and Population

35. Criticisms of World Bank
• Structural Adjustment
• Fairness of assistance conditions
• Sovereign immunity
• Under representation of developing country

36. References
• https://ida.worldbank.org/about/what-is-ida
• https://www.britannica.com/topic/World-Bank
• https://www.worldbank.org/en/about
• https://academy4sc.org/world-bank-the-purse-strings-of-global-
development
• https://www.worldbank.org/en/about/history
• https://www.worldbank.org/en/news/press-release/2020/05/19/
• Development Projects : Earthquake Housing Reconstruction Project -
P155969 (worldbank.org)
• And Many more …