THE WORLD BANK

The World Bank Group was founded in 1945 by the United

Nations.

It consists of 5 closely associated institutions:

1) The International Bank for Reconstruction and
Development (IBRD)
2)The International Development Association (IDA)
3)The International Finance Corporation(IFC)
4)The Multilateral Guarantee Agency
5)The International Center for settlement of Investment
Disputes(ICSID)
The World Bank headquarters in
Washington D.C.
The World Bank is comprised of 183
countries

Major objective: To provide

development assistance to countries
,especially the poorest of the poor.

It measures per capita income to

identify those countries that need the
most help.
 Its program include:
 Investing in people, particularly through basic health and
education.

 Focusing on social development to reduce poverty.

 Strengthening the ability of the government to deliver

quality services, both efficiently and transparently.

 Protecting the environment

 Supporting and encouraging private business

development

 Promoting reforms to create a stable macroeconomic

environment, one that is conducive to investment and
long term planning
Main interest: eliminating poverty
Classifies economies according to per capita GNI:

Low Income ($755 or less)

Middle income ($756-$9265)

High income ($9266 or more)

The World Bank refers to the low and middle income
countries as developing countries.

Developing countries are also known as emerging countries

The Worlds wealth is measured in per capita GNI

Low income countries are mostly located in Asia and

Africa

High Income countries generate 80% of the worlds GNI

Developed And Developing
Countries

KEY:
DEVELOPED COUNTRIES

DEVELOPING COUNTRIES
 ECONOMIC GROWTH
According to world Bank there are 5 key factors
responsible for economic growth:

i. Build capacity

ii. Infrastructure creation

iii.Development of Financial Systems

iv.Combating corruption

v. Research, Consultancy and Training

Area of operations
Agriculture
Energy
Economics policy
Education
Environment
Financial sector
Governance
Poverty reduction strategy
Clean technology fund management

Training wings
World bank institute
Global development learning network
INTERNATIONAL MONEARY
FUND
 HISTORY
In 1944 toward the close of world war II the major allied
governments met in New Hampshire, to determine what
was needed to bring economic stability and growth to the
post war world.

As a result of the meetings, the International Monetary

Fund came into official existence on 27th Dec 1945 and
began financial operations on 1st March 1947

29 countries initially signed the IMF agreement.

IMF Headquarters in
Washington DC
Major objectives
To promote International Monetary cooperation

To facilitate the expansion and balanced growth of

International trade.

To establish a multilateral system of payments

To make its resources available to its members who

are experiencing balance of payments difficulties
Working of IMF……..

 When a country joins IMF, it contributes a certain

sum of money called Quota relating to its:
1. National income
2. Monetary reserves
3. Trade balance
4. Other economic indicators

 The Quota is a pool of money that the IMF can draw

on to lend to countries
 The quota determines the voting
rights of the individual members
COUNTRY QUOTAS

 The Board of Governors, the

US 17.5%
IMF’s highest authority is
composed of one representative
JAPAN 6.26%
from each member country.
GERMANY 6.11%

 The number of votes a country FRANCE 5.05%

has depends on the size of its
quota. UK 5.05%
The functions
Surveillance
Conditional financial support
Technical assistance
THANK
YOU