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Khaula Basalat [1989-FMS/BBA/FO7] | Maryam Bashir [-FMS/BBA/FO7]
We are not a bank in the common sense. Multilateral Investment Guarantee Agency (MIGA) and the International Centre for the Settlement of Investment Disputes (ICSID). we are continuing to sharpen our focus on helping developing countries deliver measurable results. we provide low-interest loans. Benefit from micro credit as well as large corporate undertakings. while IDA focuses on the world's poorest countries. Our mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources. .Business Law 2011 WORLD BANK The World Bank is a vital source of financial and technical assistance to developing countries around the world. Purpose: World Bank is a financial institution designed to cater to the needs of the international community. we are made up of two unique development institutions owned by 187 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Strengthen governments with education. how information is made available (access to Page | 2 2. Reform: New reforms at the World Bank Group are aimed at improving every aspect of our work: the way projects are designed (investment lending). Promote socio-economic growth through investment. Increase job opportunities. public administration. financial and private sector development. Promote research and training opportunities. Each institution plays a different but collaborative role in advancing the vision of inclusive and sustainable globalization. business opportunities and protection of individual rights. Pillars of these efforts include: Together. to meet pressing development priorities. 3. Together. agriculture and environmental and natural resource management. infrastructure. the World Bank Group is revising its programs to assist the poor. Combat corruption. Develop an investment-environment. Work towards sustainable economic growth. The IBRD aims to reduce poverty in middleincome and creditworthy poorer countries. to enable developing countries to address important infrastructural requirements. as well as its range of financing options. It provides technical assistance within the highly volatile fiscal world. Their work is complemented by that of the International Finance Corporation (IFC). World Bank funds target development programs to reduce poverty. interest-free credits and grants to developing countries for a wide array of purposes that include investments in education. Definition of World Bank: A bank with a mission to aid developing and under-developed nations of the world to: y y y y y y y y y y Reduce poverty. Innovating from Within: To ensure countries continue to have access to the best global expertise and cutting-edge knowledge. Empower the development of legal and judicial systems. health. sharing knowledge. 1. building capacity and forging partnerships in the public and private sectors.
Facts About World Bank: World Bank offers two types of loans: investment and development policy. while the IMF is led by a European. D. While investment loans are those that are forwarded to support economic and social development. is the second. Generate low or no interest loans to under-developed countries.Business Law 2011 information). Increase periodic grant-investments by member countries. three Senior Vice Presidents and two Executive Page | 3 . The International Monetary Fund. World Bank Goals: The World Bank headquarters are in Washington D. This subjects the investment made to fluctuations and restrain on lending activities. It also encourages innovation and cooperation between local stakeholders to generate: y y y y Debt relief in the case of very poor countries.C. Delegates from many countries attended the Bretton Woods Conference. representing the Bank's member countries. make up the Board of Directors. Create 'green' initiatives. The nominee is subject to confirmation by the Board of Governors. the World Bank is. The Executive Directors. renewable term. The most powerful countries in attendance were the United States and United Kingdom. the Bank President has always been a US citizen nominated by the United States. In case of any upsets in this arena. The replenishments are dependent on timely loan repayment. Traditionally. to serve for a five-year. These nations replenish the lent funds every three years. the largest shareholder in the bank. Zoellick. by custom. in charge of regions.. Development of sanitation and water supply. currently Robert B. and how our staff is deployed to best assist governments and communities (decentralization).C. usually meeting twice a week to oversee activities such as the approval of loans and guarantees. Although both are based in Washington. new policies. the administrative budget. is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. which dominated negotiations. The goals of this international organization include: y y y y y Achievement of the Millennium Development Goals. Support immunization programs during epidemics. a related institution. History: The World Bank is one of five institutions created at the Bretton Woods Conference in 1944. country assistance strategies and borrowing and financing decisions. Majority of the World Bank funds are got from forty donor countries. Leadership: The President of the Bank. sectors. The Vice Presidents of the Bank are its principal managers. development policy loans are offered as quick finance to support institutional reforms to reduce third world debt. The Bank provides analytical services for economic and social infrastructural improvements. Develop and forward easily payable interest rates. automatically the future lending capacity of the Bank is affected. Increase lending to middle-income countries. Operational problems: The World Bank maintains funds or capital from investments made by in various operations by subsequent investment in the world financial market. headed by an American. networks and functions. There are 24 Vice-Presidents.
Additionally. with member countries as shareholders. the Islamic Republic of Iran. Turkey.42%).41 percent of the votes. followed by Japan (7.85%). the World Bank has created new organizations within itself that specialize in different activities. which lends to the private sector Page | 4 y y . Germany (4. Greece. How is Citizens Represented at the World Bank? The World Bank is run like a cooperative. Tanwir Ali Agha is the Executive Director for Pakistan. with 16. it is a totally separate organization. country support strategies. Singapore. other countries that saw significant gains included South Korea. Morocco. the United Kingdom (4. The changes were brought about with the goal of making voting more universal in regards to standards. Russia's and Saudi Arabia's voting power was unchanged. and Tunisia.75%). All these organizations together are called the World Bank Group. Japan (6. the United Kingdom (3. Under the changes. and Spain.87 percent). notably China. developing countries have an increased voice in the "Pool Model.and middle-income countries International Development Association IDA." backed especially by Europe.31 percent). and France (3.49 percent). the IMF aims to stabilize the international monetary system and monitors the world s currencies. voting power is based on economic size in addition to International Development Association contributions. The United States is the largest single shareholder. Iraq. Most developed countries' voting power was reduced. known as 'Voice Reform . and transparent among other things. new policies. The five largest shareholders (France. While the World Bank provides support to developing countries. while countries including Nigeria. Japan.75%). Although the IMF s functions complement those of the World Bank. They normally meet twice a week to oversee business. and borrowing and financial decisions. which was also set up at the Bretton Woods conference in 1944. Brazil. What is the difference between IMF and Word Bank? People sometimes confuse the World Bank with the International Monetary Fund (IMF).Phase 2'. China (4. Every member government is represented by an Executive Director. the original "World Bank. Now. Germany. which lends to low-income countries International Finance Corporation IFC. The 24 Executive Directors make up our Board of Directors.84%). India. rule-based with objective indicators. The rest of the shares are divided among the other member countries. including reviewing loans and guarantees. Mexico.Business Law 2011 Voting power: In 2010.31 percent) and France (4. the United Kingdom and the United States) appoint an executive director each. voting powers at the World Bank were revised to increase the voice of developing countries. while other member countries are represented by 19 Executive Directors. Ghana.00%). The countries with most voting power are now the United States (15. the administrative budget. Germany (4. United States'. The World Bank Group consists of: y International Bank for Reconstruction and Development IBRD." which lends to low. The number of shares a country has is based roughly on the size of its economy. He also represents Afghanistan. How Is the Bank Organized? As it has grown. Algeria.
and France. The five largest shareholders (France. During loan negotiations. The governors are the ultimate policymakers in the World Bank. country assistance strategies. including anthropologists. who work on-site at the Bank. including approving loans and guarantees. and adjustment loans to support policy and institutional reforms. while other member countries are represented by 19 Executive Directors.000 people from 165 nations. they give specific duties to their Executive Directors. the borrower puts the project or program into practice according to the terms agreed with the World Bank. new policies. Who Makes the Decisions? A Board of Governors represents the Bank's government shareholders. the World Bank agrees with the borrowing country on the development objective of the project or program. the United Kingdom. health specialists and many others. They meet once a year at the Bank's Annual Meetings. Japan. engineers. financial analysts. The Bank's 24 Executive Directors oversee the Bank's business. the administrative budget. performance indicators (to measure the impact and success of the project) and a plan to put it all into practice. How Many People Work for the Bank? The Bank employs more than 10. and borrowing and financial decisions. Germany. which encourages private companies to invest in foreign countries International Centre for Settlement of Investment Disputes ICSID. Because the governors meet only once a year.Business Law 2011 y Multilateral Investment Guarantee Agency MIGA. such as Ministers of Finance or Ministers of Development. Once a loan is approved and becomes effective. The rest of the shares are divided among the other members. these governors are ministers. followed by Japan. Every member government is represented by an Executive Director. work and services to support economic and social development projects in a broad range of sectors. the United Kingdom and the United States) appoint an executive director each. Page | 5 . Loans How are Loans Made? The World Bank offers two basic types of loans: investment loans for goods. At the Annual Meetings all of the Bank's (and IMF's) governors come together to decide how best to address global development issues and decide what the world should focus on in the upcoming year (and near future) to help reduce poverty in the world. Germany. environmental scientists. Generally. The number of shares a country has is based roughly on the size of its economy. which helps private investors and foreign countries work out differences when they don't agree y Who Runs the Bank? The World Bank is like a giant cooperative where its members are shareholders. educators. The United States is the largest single shareholder. outputs. economists.
from funds raised in the financial markets. This means it can borrow money at low interest rates from capital markets all over the world to then lend money to developing countries on very favorable terms. For example. It has good credit because it has large. especially for women and children Modernize The World Bank also tries to encourage investment and lending by countries. from fees paid in by member countries. And they don't have to start repaying for several years. and from borrowing countries themselves when they pay back their loans. well-managed financial reserves. World Bank loans help countries: y y y y y y y y y y Supply safe drinking water Build schools and train teachers Increase agricultural productivity Manage forests and other natural resources Build and maintain roads. Page | 6 . particularly the wealthier ones. Where Does the Bank Get Its Money? The Bank borrows the money it lends. if not all. All loans are governed by operational policies. In addition. Eventually. from contributions made by members. of the project itself. railways. The Bank's financial reserves come from several sources . companies and private investors. which make sure that operations are economically. socially and environmentally sound. from earnings on its investments. Countries that borrow from the Bank also have a much longer period to repay their loans than commercial banks allow. the Bank lends money at no interest to the poorest developing countries. The borrowing country must get the rest from other sources or use its own funds.Business Law 2011 The World Bank supervises how each loan is used and evaluate the results. To Whom Does the Bank Give Loans? The Bank lends money to middle-income countries at interest rates lower than the rates on loans from commercial banks. it ends up paying for most. the Bank lends money to hire people who are experts in their industry and to help countries to reshape their economies to make them more efficient and productive. financially. World Bank loans are for specific development projects as well as help in planning how to go about developing a project. In addition. and ports Reduce air pollution and other environmental problems Extend telecommunications networks Generate and distribute energy Expand health care. since the country has to pay back its loans. those that often cannot find other sources of loans. Does the Bank Pay for All Development? The World Bank lends only a portion of the money needed for a project.
often it is the advice and experience the Bank's staff bring to a project. but in cooperation with various groups including. and donor agencies. In some cases. What is the Difference Between the World Bank and a Commercial Bank? While it lends and even manages funds much like a regular bank. the World Bank is different in many important ways. How Does a Project Work? A project begins when a developing country identifies a need. often at much lower rates of interest than what markets would charge these countries. Monitoring helps project managers know if programs are reaching the people they are aimed at or if these programs are ineffective and wasteful. Once an agreement is reached. Experts from the borrowing country and the World Bank study the plan carefully. they don t have to start repaying for ten years. The financial support and advice the World Bank provides its member countries are designed to help them fight poverty. or the environmental and social standards it applies. Countries that borrow from the World Bank also have a much longer period to repay their loans than commercial banks allow. both now and in the future? Can other funding sources be found? Will the country be able to maintain the project once funding ends? Negotiations take place on how best to implement the strategy. This means it can borrow money at low interest rates from capital markets all over the world and channel it to developing countries. It is owned by 184 countries. and the loans are approved. work can begin. civil society. How the World Bank Works in Pakistan The World Bank does not work alone. the World Bank borrows the money it lends. And unlike commercial banks. designs a project (develops the plan). grants and guarantees. government. Basically. How Much Money Does the Bank Lend? In 2009 the World Bank sponsored 767 projects with a total commitment of $58. The joint effort of these groups is required to significantly reduce Page | 7 . It has good credit because if has large.Business Law 2011 But sometimes it isn't the money that the Bank provides that is the most important kind of support. Resources are scarce and must be used where they can have the largest effect. the World Bank often lends at little or no interest to countries that are unable to raise money for development anywhere else. and asks the Bank for a loan. loans. Monitoring and assessment also provide information and data on which future projects are designed. Bank staff appraises the project and ask a lot of questions like: y y y y y Will the project help the country's economy? Will it benefit the poorest people and increase economic opportunities for women? What impact would it have on the environment. The Bank carefully monitors progress and pays out the loan in installments. Assessing the effect of projects the Bank supports is essential in developing countries. well-manages financial reserves.8 billion distributed in credits. communities.
environmental reviews (Environmental Action Plan). the Bank has approved 31 operations of total US$3. The strategy was designed to directly support the government's Povery Reduction Strategy and focuses on three key areas: 1. and evaluating projects. and basic infrastructure. education. referred to as the Implementing Agency. The government designates an office. How are Priorities Selected? Working with the government and civil society. fiscal spending (Public Expenditure Review). This research is intended to provide an unbiased perspective on a range of specific development challenges. and civil society organizations to discuss how best to move forward on a given issue. 3.9 billion for Pakistan. media. It is important to note that the implementation of projects is managed by the government itself. Topics of research come from the Bank's Country Assistance Strategy. Loans or credits (interest-free loans) for these projects are then submitted for approval to the Executive Directors. Additional studies include reviews of economic policies (Country Economic Memoranda). 2. Further discussion of development issues is promoted though workshops and other events. implementing. Studies & Reports The World Bank also produces studies and reports based upon its own analysis of a given issue. Pakistan develops its own projects with World Bank financing and technical support. agriculture. public administration. monitoring and evaluation. the World Bank has developed an action plan known as the Pakistan Country Assistance Strategy which describes what kind of support and how much could be provided to the country beginning June. environmental protection. financing. and other specific topics. Strengthening the investment climate. Project evaluations are conducted to capture and share lessons for future reference. Various financing options are available based upon the type of assistance needed. Strengthening economic stability and government effectiveness. These events bring together groups such as government. Projects As outlined in the support strategy. Page | 8 . Bank¶s assistance to Pakistan During the past five years from Fiscal Year (FY) 2006 to March 2010. which is responsible for aspects such as procurement and selection of consultants and day to day work.Business Law 2011 poverty. Operational Policies set guidelines to ensure that projects meet the World Bank's own criteria such as social and environmental standards. 2002 and covering a period two years . The World Bank provides technical expertise and funding in areas such as health. the World Bank's decision-making body which represents all member countries. Supporting pro-poor and pro-gender equity policies. The project cycle outlines the process of identifying.
org/about/inside-world-bank http://bit. and irrigation. transport. combined with internal political turmoil.worldbank. It is built on the knowledge. an infrastructure deficit particularly in energy. Stringent implementation of the economic program will be critical to success.54 billion with the fifth tranche due in April. To avoid a balance of payments crisis and default on foreign debt payments. It has taken into account the results and lessons learnt from the Bank s past programs in the country and will also reflect the Government of Pakistan s development priorities. Infrastructure is also vital. Reference: ± ± http://youthink. . energy. and infrastructure. Governance is a cross cutting theme across all of the pillars. which envisages fiscal and monetary tightening to bring down inflation and reduce the external current account deficit to sustainable levels. community-led development. Continuing challenges facing Pakistan include the combined effects of food and fuel crisis. the global financial crisis and continuing volatile security situation. The program includes a medium-term macroeconomic framework. (ii) improved human development and social protection. led to rapidly expanding macroeconomic imbalances in Pakistan. particularly in water management. the sharp rise in international oil and food (specifically wheat) prices. The Bank is deepening its engagement on social protection. diagnostics and analytical work undertaken over the years by the Bank and other development partners in Pakistan. while maintaining strong programs in education.ly/hWUaDo Page | 9 . particularly on enhancing social safety nets for the most vulnerable sections of society. In 2007/08. and (iii) improved environment for private sector investment and growth. the Government developed a home-grown stabilization program. articulated in its Poverty Reduction Strategy Paper (PRSP) and provincial development plans. and timely responses of fiscal and monetary authorities to emerging risks will be essential to ensure it remains on track. The proposed activities of the CPS are clustered around three pillars: (i) sustained macroeconomic stability and reduced macroeconomic vulnerability.Business Law 2011 The World Bank is working with the Government of Pakistan to prepare the new Country Partnership Strategy (CPS) for the period FY2010-2013. While Pakistan s human development indicators have generally improved over the past few years. which was supported by the IMF through a 23-month Stand-By Arrangement (SBA) in November 2008. IMF has released four tranches amounting to $ 6. and poor delivery of social services. The CPS is scheduled to be presented to the World Bank s board of Executive Directors in May. and irrigation. 2010. education and energy. The development emphasis remains on poverty reduction and social protection. it lags behind most other countries in the region. water management. transport. insufficiently targeted social safety net.
com.00.c ontentMDK:20131431~menuPK:293059~pagePK:141137~piPK:141127~theSitePK:293052.buzzle.pk/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/PAKISTANEXTN/0.imf.00.worldbank.org.html #Commercial ± ± ± ± ± ± ± Page | 10 .htm http://www.org.Business Law 2011 http://books.google.pk/books?id=Jr855iC3S6MC&pg=PA463&lpg=PA463&dq=is+world+bank+ a+legal+entity?&source=bl&ots=ffX8aoI8xj&sig=tSWm3J1jP0AxZb_Oe43XMHmFFfw&hl=en&ei=v_6 mTabsF4yOvQPE3JyGCg&sa=X&oi=book_result&ct=result&resnum=10&ved=0CEYQ6AEwCQ#v=on epage&q=is%20world%20bank%20a%20legal%20entity%3F&f=false http://www.pk/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/PAKISTANEXTN/0.worldbank.c ontentMDK:20158057~menuPK:417444~pagePK:1497618~piPK:217854~theSitePK:293052.org.00.html #Priorities http://www.org/wiki/World_Bank http://www.wikipedia..worldbank.org/external/pubs/ft/exrp/differ/differ.html http://en.com/articles/history-of-the-world-bank...html http://www.pk/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/PAKISTANEXTN/0.c ontentMDK:20154256~menuPK:432606~pagePK:1497618~piPK:217854~theSitePK:293052.
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