3. INTRODUCTION
The World Bank is an international financial institution
that provides financial and technical assistance to
developing countries for development programs.
World bank is a specialized agency of the United
Nation. It established in 1944, has its headquarter in
Washington, D.C.
It established with the purpose of helping less
developed countries raise their living standards.
4. WORLD BANK EXISTENCE
The World Bank was created at the end of World War
2 as a result of many European and Asian countries
needing financing to fund reconstruction efforts.
The purpose of the bank are vested in a board of
governors. The bank gives loans for projects that will lead
to economic growth (e.g., India’s population projects).
The projects are usually concerned with electric power,
roads, railways, agriculture, water supply, education,
family planning, etc.
5. Health and environmental components have been added
to many projects.
Its mission is to fight poverty with passion and
professionalism for lasting results and to help people help
themselves and their environment by providing
resources, sharing knowledge, building capacity and
forging partnerships in the public and private sectors.
6. It provides low-interest loans, interest –free credits and
grants to developing countries for various purposes that
include:-
1.Investments in education
2. Health
3. Public administration
4. Infrastructure
5. Financial and private sector development
6. Agriculture
6. Environmental and natural resources management.
7. WHAT IS WORLD
BANK ?
World bank is an international organization
dedicated to providing financing, advice and
research to developing nations to aid their
economic advancement.
8. WORLD BANK
GROUP
The world bank’s two closely affiliated entities : -
The International Bank for Reconstruction and Development [ IBRD]
The International Development Association [ IDA ]
In addition to the IBRD and the IDA, three other institutions are closely
associated with the World Bank : -
The International Finance corporation [ IFC ]
THE International Investment Guarantee Agency [ MIGA ]
The International Centre for Settlement of Investment Disputes [ICSID ]
All five of these institutions together make up the WORLD BANK
GROUP.
9. WORLD BANK
GROUP
The International
Finance
Corporation ( IFC )
The Multilateral
Investment
Guarantee Agency
(MIGA )
The International
Centre for
Settlement of
Investment
disputes (ICSID)
International
Bank for
Reconstruction
and
Development (
IBRD)
The International
Development
Association ( IDA )
10.
11. QUESTIONS…
1. What does WB stand for?
World Health Organization.
World Trade Organization.
World Bank.
World Wildlife Fund.
2. When was the World Bank established?
In 1945.
In 1975.
In 1944.
In 1991.
12. 3. How many agencies are there in the World Bank?
► 2.
► 3.
► 4.
► 5.
13. MISSION OF WORLD
BANK
WB main mission is to :-
Reduce poverty in the globe
Improve the living standard
14. How is World Bank
Run?
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.
15. (CONT….)
The five largest shareholders, France, Germany, Japan,
the United Kingdom and the United States appoint an
executive director,
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.
16. (CONT….)
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.
18. Millennium Development Goals
Goal 1: Eradicate extreme poverty and
hunger
Goal 2: Achieve universal primary
education
Goal 3: Promote gender equality and
empower women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and
other diseases
Goal 7: Ensure environmental
sustainability
Goal 8: Develop a global partnership for
development
19. OBJECTIVES OF WORLD
BANK
The principle objectives of the World Bank were : -
Help to improve the lives of under-served populations worldwide.
Eradicate extreme poverty and hunger.
Achieve universal primary education.
Promote gender equality.
Reduce child mortality.
Improve maternal health.
Combat HIV/AIDS, malaria and other disease.
Ensure environmental sustainability.
20. OBJECTIVES..
(CONT.)
Develop a global partnership for a development.
Provide assistance to developing countries.
Promote the economic development of the world’s poorer
countries.
Reconstruction Work
Reduce Poverty
Reduce Illiteracy
Reduce disease
Reduce Corruption
21. FUNCTIONS OF WORLD
BANK
Granting reconstruction loans to war devastated countries.
Granting developmental loans to underdeveloped countries.
Providing loans to governments for agriculture, irrigation, power,
transport, water supply, education, health, etc.
Providing loans to private concerns for specified projects.
Promoting foreign investment by guaranteeing loans provided by
other organizations.
Providing technical, economic and monetary advice to member
countries for specific project.
Encouraging industrial development of underdeveloped countries
by promoting economic reforms.
24. Where Does the Money Come
from to Operate the World
Bank…..
IBRD lending to developing countries is primarily financed
by selling AAA-rated bonds in the world's financial markets.
The greater proportion of its income comes from lending
out its own capital.
This capital consists of reserves built up over the years and
money paid in from the bank's 184 member country
shareholders.
IBRD’s income also pays for world bank operating expenses
and has contributed to IDA and debt relief.
25. (CONT….)
IDA is the world's largest source of interest-free loans and
grant assistance to the poorest countries.
This source is replenished every three years by 40 donor
countries.
Additional funds are regenerated through repayments of
• loan principal on 35-to-40-year,
• no-interest loans, which are then available for re-lending.
IDA accounts for nearly 40% of our lending
26. AREA OF
OPERATION
Agriculture and rural development
Economic policy
Education
Energy
Environment
Financial sector
Health, nutrition and population industry
Information, computing and telecommunication
27. ( Cont…)
Law and justice
Private sector
Social protection
Trade
Water resources
Water supply and sanitation
28. WORLD BANK’S
CONTRIBUTION
TO INDIA
India is a founder member of the Bretten Woods twins, i.e.,
the IMF and the World Bank; it has a permanent place on the
bank’s executive board.
India is a member of four of the five constituents of the World
Bank Group viz., International Bank for Reconstruction and
development [IBRD], International Development Association
[IDA], International Finance Corporation [IFC] and Multilateral
Investment Guarantee Agency [ MIGA].
India is not a member of ICSID (International Centre for
Settlement of Investment Disputes.
29. ►India has been accessing funds from the World Bank ( mainly
through IBRD and IDA) for various development projects.
►India as one of the 17 counties which met in Atlantic City, USA in
June 1944 to prepare agenda for the Bretton woods
conference.
►In fact, the name “International Bank for Reconstruction and
Development “ [IBRD] was first suggested by India to the
drafting committee.
►The Bank lending to India started in 1949, when the first loan of
$34 million was approved for the Indian Railways.
►The aggregate of the Bank’s lending in India in the last 45 years
was approximately $42 billion.
►India is the single largest borrower of WB and IDA.
30. The World Bank’s assistance to India has been mainly for
development purpose. The major projects finance by the bank
are:-
• Railway
• Generation of power
• Multi-purpose projects
• Port development
• Development of aviation
• Iron and steel industry
• Coal mining
• Agriculture
• Telecommunication, etc.
The World Bank has also provided useful technical assistance in
India’s development plans. It has sent a number of missions to
India to evaluate the working and progress of her Five Year Plans
and to assess the foreign exchange requirements of the country.
31. CRITICIS
M
It was started to reduce poverty but it support United
States’ business interests.
It deeply implicated in contemporary modes of donor and
NGO driven imperialism.
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.
32. CRITICISM
(CONT…)
It has consistently pushed a “neo-liberal” agenda.
• Knowledge development
• Structural adjustment
• Water privatization
• Business and political interest of main stakeholders
