JK Business School

&

Submitted to: Dr. Sandeep Parmar

Presented by: Group no. 3
Nishi Kumari 046
Rishabh Kumar 060
Jay Pansari 073
Hunny 042

Tanav Kulshreshtha 037

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Index
World Bank
 Introduction of World Bank 3
 Analytics and advisory Services 6
 Area of Operation 8
 Priorities of World Bank 9
 Critism 10
IMF
 Introduction of IMF 11
 IMF Lending Criteria 13
 Fund Generation 15
 Critism 17
 Analysis of Bangladesh (Data Regarding World Bank & IMF) 18
 Conclusion 27

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Introduction of World Bank

The world bank is an internationally supported bank that provides financial and technical
assistance t developing countries for development programs (e.g., bridges, roads, schools,
etc.) with the stated goal of reducing poverty. The bank predominantly acts as an organization
that attempts to fight poverty by offering developmental assistance to middle- and low-
income countries. The World Bank Group offers a multitude of proprietary financial
assistance, products, and solutions for international governments, as well as a range of
research-based thought leadership for the global economy at large.
Currently, the World Bank has two stated goals that it aims to achieve by 2030. The first is to
end extreme poverty by decreasing the number of people living on less than $1.90 a day to
below 3% of the world population. The second is to increase overall prosperity by increasing
income growth in the bottom 40% of every country in the world.
History
The World Bank was created at the 1944 Bretton Woods Conference, along with the
International Monetary Fund (IMF). The president of the World Bank is traditionally an
American. The World Bank and the IMF are both based in Washington, D.C., and work
closely with each other.
Although many countries were represented at the Bretton Woods Conference, the United
States and United Kingdom were the most powerful in attendance and dominated the
negotiations. The intention behind the founding of the World Bank was to provide temporary
loans to low-income countries that could not obtain loans commercially. The Bank may also
make loans and demand policy reforms from recipients.
Currently, its president is Robert B. Zoellick with membership of 185 countries affiliates by
IFC, MIGA and ICSID. Having staff of more than 10000 in more than 130 countries.
Though titled as a bank, the World Bank, is not necessarily a bank in the traditional,
chartered meanings of the word. The World Bank and its subsidiary groups operate within
their own provisions and develop their own proprietary financial assistance products, all with
the same goal of serving countries' capital needs internationally.
The World Bank‘s counterpart, the IMF, is structured more like a credit fund. The differing in
the structuring of the two entities and their product offerings allows them to provide different
types of financial lending and financing support. Each entity also has several of its own
distinct responsibilities for serving the global economy.
The World Bank has expanded to become known as the World Bank Group with five
cooperative organizations, sometimes known as the World Banks. The World Bank Group

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offers a multitude of proprietary financial assistance, products, and solutions for international
governments, as well as a range of research-based thought leadership for the global economy
at large.
The World Bank's Human Capital Project seeks to help nations invest in and develop their
human capital to produce a better society and economy.
Examples
In 2017, the World Bank created the Human Capital Project, which seeks to help countries
invest in and develop their people to be productive citizens and active contributors to their
economy.
World leaders are urged to prioritize investments in education, healthcare, and social
protections, and, in return, they will realize a stronger economy full of healthy, thriving
adults.
The Human Capital project outlines how governments should invest in providing quality,
affordable childcare to support and improve child development, increase women's access to
better employment opportunities, and increase economic growth, to name a few.
To build human capital globally, the World Bank has identified several areas of focus: the
Human Capital Index (HCI), measurement and research, and country engagement.
Created in October 2018, the Human Capital Index summarizes a nation's investments in its
human capital, specifically concerning health and education. The index is used to identify
what is lost from the lack of investments in human capital; it also prompts leaders to think of
how to remedy these deficiencies.
Beyond analysing human capital, the World Bank measures the effectiveness of a nation's
educational and healthcare systems. Doing so helps them identify what should be continued
and what should be changed. It can also give insight on where to allocate resources.
Country engagement requires a country to take a "whole government" approach to addressing
factors that compromise human capital. The nation, its leaders, and influencers band together
to champion reducing poverty and increasing shared prosperity.
National Immunization Support Project
In April 2016, the World Bank approved the National Immunization Support Project for
Pakistan.
This project, costing an estimated $377.41 million, aims to increase the equitable distribution
of vaccines to children ages 0 to 23 months.
The project consists of five components that are designed to enhance the country's vaccine
distribution to the most vulnerable. The first component creates a governance structure and
addresses logistics, monitoring, and evaluation systems. The second component involves
performance planning and the alignment of skilled human resources.
The third component increases the awareness of and promotes the program among Pakistan's
citizens, as well as addresses how their schools' curriculum aligns with this initiative. The
fourth component makes it possible to obtain the necessary equipment to widely distribute

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vaccines and increase the supply chain for vaccines. Lastly, the fifth component includes
being able to expand the program's reach and enhance research and development in this field.
Learning for the Future
The Learning for the Future project was created to enhance children's readiness for school
and the effectiveness of secondary instruction in specific Kyrgyz Republic communities. The
project consists of two components: increasing the equitable access of early childhood
education and improving the effectiveness of instruction in secondary education.
To meet these objectives, the program establishes 500 community-based kindergarten
programs, which will allow for the enrolment of 20,000 children. To increase the
effectiveness of instruction, the project finances a training program for 500 new teachers and
provides digital resources to complement existing learning resources (e.g., textbooks). The
project also assesses how well students learn, cognitively and non-cognitively.

World bank is made of 5 different organisations:

 International Bank for Reconstruction and Development (IBRD)-
o This is an institution with in the World Bank that aims to reduce poverty in
middle- income and creditworthy poorer countries by promoting sustainable
development through loans, guarantees, risk management products, and
analytical and advisory services.
o It raises most of its funds on the world‘s financial markets. It has become one
of the most established borrowers since issuing its first bond in 1947 to
finance the reconstruction of Europe.
o Lends to countries with relatively high per capita incomes.
o Earns income from return on its equity, from small margin on lending‘s, sale
of bonds in international capital markets and member‘s subscriptions to its
capital stock.
 International Development Association-
o Its main focus in helping the poorest countries in the world by providing loans
and grants to boost economic growth, reduce inequality and improve living
conditions.
o Provide access to better water sources for 123 million people and helped 65
million people receive health services.
o It lends money on concessional terms to countries with annual per capita
incomes of about $ 800 or less.
o Its repayments are stretched over 25-40 years including 5-10 year of grace
period.
o IDA mostly gets it money from government‘s voluntary contributions.
 International Finance Corporation-
o Established in 1956 to reduce poverty and improve people‘s lives.
o Finances private sectors investments, mobilizes capital in international
financial markets and provides technical assistance and advice to governments
and businesses.

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o Provides both loan and equity finance for business venture in developing
countries.
 Multilateral Investment Guarantee Agency-
o Created in 1988 to promote foreign direct investment among developing
countries to support economic growth, reduce poverty and improve people‘s
lives.
 International Centre for the Settlement of Investment Disputes-
o Provides facilities for conciliation and arbitration of investment disputes.
o Established in 166 to promote international investment.
o Reconciliation of disputes between governments and foreign investors.

Analytics and advisory Services

 World bank's top borrowers:

 Mexico
 Brazil
 Turkey
 Pakistan
 China
 India
 Argentina

 World Bank's Top contributor's:

Contribution
USA
16%
USA
Japan Japan
8%
Germany
Germany
5% UK
Other UK
France
63% 4%
France Other
4%

 USA 16.39%
 Japan 7.87%
 Germany 4.49%
 UK 4.30%
 France 4.30%
 Other 62.65 %

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World bank group

 International bank for reconstruction and development. (IBRD).
 International Development association (IDA).
 International finance corporation (IFC).
 Multilateral Investment Guaranty agency (MIGA).
 International centre for settlement of investment disputes (ICSID).
Functions
 Granting reconstruction loans to war devastated countries.
 Granting developmental loans to underdeveloped countries.
 Providing loans to governments for agriculture, irrigation, power, transport, water
supply, educations, health, etc.
 Providing loans to private concerns for specified projects.
 Promoting foreign investment by guaranteeing loans provided by other organisations.
 Providing technical, economic and monetary advice to member countries for specific
project.
 Encouraging industrial development of underdeveloped countries by promoting
economic reforms.
Analytical and advisory services:
 Poverty Assessments.
 Public Expenditure Reviews.
 Country Economic Memoranda.
 Social and Structural Reviews.
 Sector Reports.
 Topics in Development.

Advice and Analytics

The World Bank undertakes analytical and advisory activities to inform country, regional and
global development agenda in line with its commitment to the twin goals of eliminating
extreme poverty and boosting shared prosperity in a sustainable manner.

Advisory Services and Analytics (ASA) are non-lending activities that help external
clients or audiences advance a development objective. The World Bank provides ASA
to support design or implementation of better policies, strengthen institutions, build
capacity, inform development strategies or operations, and contribute to the global
development agenda. ASA outputs include analytical reports, policy notes, hands-on
advice, and knowledge-sharing workshops or training programs. ASA related to private
sector development at times are prepared jointly with IFC and MIGA.

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Reimbursable Advisory Services (RAS) are ASA provided in response to a request

from, and paid for by, the recipient of the service (client), under a legal agreement. In
providing RAS, the Bank's purpose is to expand the options available to member
countries of all income levels, including those that have graduated from the Bank. RAS
clients can be central governments; subnational governments; state-owned enterprises;
non-governmental and other not-for-profit organizations (such as chambers of
commerce); and multilateral institutions, including development banks and regional
organizations.
Areas of operation
The World Bank provides low-interest loans, zero to low-interest credits, and grants
to developing countries. These support a wide array of investments in such areas as
education, health, public administration, infrastructure, financial and private sector
development, agriculture, and environmental and natural resource management. Some of our
projects are financed with governments, other multilateral institutions, commercial banks,
export credit agencies, and private sector investors.

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Some areas where they serve:

 Agriculture and Rural Development.
 Conflict and Development.
 Development Operations and Activities.
 Economic Policy.
 Education.
 Energy.
 Environment.
 Financial Sector.
 Gender.
 Governance.
 Health, Nutrition and Population.
 Industry.
 Information and Communication Technologies.
 Information, Computing and Telecommunications.
 International Economics and Trade.
 Labour and Social Protections.
 Law and Justice.
 Macroeconomic and Economic Growth.
 Mining.
 Poverty Reduction.
 Poverty.
 Private Sector.
 Public Sector Governance.
 Social Development.
 Social Protection.
 Trade.
 Transport.
 Urban Development.
 Water Resources.
 Water Supply and Sanitation.

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Priorities of world bank

 World bank provides the largest external funds for education.
 It is a big support in reducing poverty.
 It provides fund for biodiversity projects.
 It helps to bring clean water, electricity, and transport to poor people.
 It helps in controlling emerging conflicts.
Priorities relates to human capital:
We can end extreme poverty and create more inclusive societies by developing human
capital. This requires investing in people through nutrition, health care, quality education,
jobs and skills.

Criticism of world bank

 The president of world bank is always a citizen of United States
 It was started to reduce poverty but it supports United States business interest
 It is now become an instrument for the promotion of U.S or Western interest
 Lack of Transparency to external Publics
 The decision making structure is undemocratic

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Introduction to International Monetary Fund

The International Monetary Fund (IMF) is an international organization that promotes global
economic growth and financial stability, encourages international trade, and reduces poverty.
Quotas of member countries are a key determinant of the voting power in IMF decisions.
Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes.
SDRS are an international type of monetary reserve currency created by the IMF as a
supplement to the existing money reserves of member countries.
The IMF's mission is to promote global economic growth and financial stability, encourage
international trade, and reduce poverty around the world.
The IMF was originally created in 1945 as part of the Bretton Woods agreement, which
attempted to encourage international financial cooperation by introducing a system of
convertible currencies at fixed exchange rates.
History of the IMF:
The IMF was originally created in 1945 as part of the Bretton Woods Agreement, which
attempted to encourage international financial cooperation by introducing a system of
convertible currencies at fixed exchange rates. The dollar was redeemable for gold at $35 per
ounce at the time.2 The IMF oversaw the system: for example, a country was free to readjust
its exchange rate by up to 10% in either direction, but larger changes required the IMF's
permission.
The IMF also acted as a gatekeeper: Countries were not eligible for membership in the
International Bank for Reconstruction and Development (IBRD)—a World Bank forerunner
that the Bretton Woods agreement created in order to fund the reconstruction of Europe after
World War II—unless they were members of the IMF.
Since the Bretton Woods system collapsed in the 1970s, the IMF has promoted the system of
floating exchange rates, meaning that market forces determine the value of currencies relative
to one another. This system continues to be in place today.

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IMF Activities:
The IMF's primary methods for achieving these goals are monitoring capacity building and
lending.

 Surveillance-
The IMF collects massive amounts of data on national economies, international trade,
and the global economy in aggregate. The organization also provides regularly
updated economic forecasts at the national and international levels. These forecasts,
published in the World Economic Outlook, are accompanied by lengthy discussions
on the effect of fiscal, monetary, and trade policies on growth prospects and financial
stability.

 Capacity Building-
The IMF provides technical assistance, training, and policy advice to member
countries through its capacity building programs. These programs include training in
data collection and analysis, which feed into the IMF's project of monitoring national
and global economies.
 Lending-
The IMF makes loans to countries that are experiencing economic distress to prevent
or mitigate financial crises. Members contribute the funds for this lending to a pool
based on a quota system. In 2019, loan resources in the amount of SDR 11.4 billion
(SDR 0.4 billion above target) were secured to support the IMF‘s concessional
lending activities into the next decade.
IMF funds are often conditional on recipients making reforms to increase their growth
potential and financial stability. Structural adjustment programs, as these conditional
loans are known, have attracted criticism for exacerbating poverty and reproducing
the colonialist structures.

IMF has 188 members and categorised them into two parts, which are:
 Original members-
 Countries whose representatives took part in Bretton Woods conference
 Who agreed to be the members of the fund prior to 31st December, 1945.
 Ordinary membership-
 Those who became its members subsequently.
 Bank has the authority to suspend any member and similarly every member is
free to resign.
Obligations of Members:
 Agree on the code of conduct in IMF Articles of Agreement.
 Pay a quota subscription
 Refrain from restrictions on exchange of foreign currency
 Strive for openness in economic policies affecting other countries.

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IMF LENDING CRITERIA

When a country borrows from the IMF, its government agrees to adjust its economic policies
to overcome the problems that led it to seek financial aid. These policy adjustments are
conditions for IMF loans and serve to ensure that the country will be able to repay the IMF.
This system of conditionality is designed to promote national ownership of strong and
effective policies.

Designing effective programs

Conditionality covers the design of IMF-supported programs—that is, macroeconomic and

structural policies—and the specific tools used to monitor progress toward goals outlined by
the country in cooperation with the IMF. Conditionality helps countries solve balance-of-
payments problems without resorting to measures that are harmful to national or international
prosperity. At the same time, the measures are meant to safeguard IMF resources by ensuring
that the country‘s balance of payments will be strong enough to permit it to repay the loan.

The member country has primary responsibility for selecting, designing, and implementing
policies to make the IMF-supported program successful. The program is described in a letter
of intent, which often has a memorandum of economic and financial policies attached. The
program‘s objectives and policies depend on a country‘s circumstances. But the overarching
goal is always to restore or maintain balance-of-payments viability and macroeconomic
stability while setting the stage for sustained, high-quality growth and, in low-income
countries, reducing poverty.

How compliance with program conditions is assessed

Most IMF financing is paid out in instalments and linked to demonstrable policy actions. This
is intended to ensure progress in program implementation and reduce risks to IMF resources.
Program reviews provide a framework for the IMF Executive Board to assess whether the
program is on track and whether modifications are necessary. Periodic reviews combine an

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assessment of whether program conditions have been met with a look ahead at whether the
program needs to be adjusted in light of new developments.

Policy commitments agreed with country authorities can take different forms. They include:

 Prior actions. These are stepping a country agrees to take before the IMF approves
financing or completes a review. They ensure that a program will have the
necessary foundation for success.
 Quantitative performance criteria (QPCs). Specific, measurable conditions for
IMF lending that always relate to macroeconomic variables under the control of
the authorities. Such variables include monetary and credit aggregates,
international reserves, fiscal balances, and external borrowing.
 Indicative targets (ITs). In addition to QPCs, it‘s may be set for quantitative
indicators to assess progress in meeting a program‘s objectives. Sometimes ITs
are set instead of QPCs because of uncertainty about economic trends. As
uncertainty is reduced, these targets may become QPCs, with appropriate
modifications.
 Structural benchmarks (SBs). These are reform measures that often are non-
quantifiable but are critical for achieving program goals and are intended as
markers to assess program implementation.

If a country misses a QPC condition, the IMF Executive Board may approve a waiver if it is
satisfied that the program will still succeed. This may be because the deviation was minor or
temporary or because national authorities are taking corrective actions. Missed structural
benchmarks and indicative targets do not require waivers but are assessed in the context of
overall program performance. The IMF‘s publicly available database for the Monitoring of
Fund Arrangements covers all aspects of program conditionality.

Why we need IMF?

The IMF plays a similar role for the world economy. It acts as a backstop for countries that
exhaust their foreign exchange reserves: the dollars, yen and marks those nations use to
conduct trade. When this happens, the IMF makes loans to them in these currencies. The
loans buy time to restore a sustainable balance in their overseas payments without an abrupt
halt to imports. The global advantages are obvious. One country's imports are another's
exports. So, if too many countries reduce their imports, the process can feed on itself and
trigger a worldwide slump.

First, forcing repayment of all debts may deepen the present crisis. The debt burden needs to
be lightened; otherwise, countries will be compelled to run huge trade surpluses (to generate
foreign exchange) for years. If too many countries have to do this, all may not succeed. Their
economies will stagnate; global trade will suffer.

Second, there is the problem of "moral hazard." If banks (or other investors) can reap profits
on risky investments but are saved from losses -- by the IMF -- they will make more risky
investments in the future. The solution to today's crisis may become the seed of tomorrow's;
capricious capital flows will continue to destabilize the world economy.

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All lenders of last resort face a similar dilemma. Too much easy credit will spawn future
crises. But stingy credit risks making this one much worse. The IMF is tiptoeing through a
mine field. Somehow, it ought to prod banks to write down loans; but it needs to be subtle
enough to maintain confidence. It may or may not succeed. Congress shouldn't make the job
harder by having its largest member -- the United States -- refuse new support. It's worth
noting that the United States has never lost anything on its IMF contributions; almost all IMF
loans are repaid. The larger reason for acting is that the Asian crisis won't resolve itself. If the
IMF didn't exist, we'd have to invent it.

Fund Generations
IMF funds come from two major sources: quotas and loans. Quotas, which are pooled funds
of member nations, generate most IMF funds. The size of a member's quota depends on its
economic and financial importance in the world. Nations with greater economic significance
have larger quotas. The quotas are increased periodically as a means of boosting the IMF's
resources in the form of special drawing rights.

Quotas

Quotas are the IMF‘s main source of financing. Each member of the IMF is assigned a quota,
based broadly on its relative position in the world economy.

The IMF regularly conducts general reviews of quotas to assess the adequacy of overall
quotas and their distribution among members. The most recent increase in quotas, to
SDR 477 billion (US$ 651 billion), was agreed under the 14th Review (concluded
in December 2010, effective from January 2016.) The 15th Review was concluded in
February 2020 without a quota increase. In its resolution concluding the 15th Review, the
Board of Governors also provided guidance on the 16th Review, expected to be concluded no
later than December 15, 2023.

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1) Agreed quotas, current NAB credit arrangements (excluding prospective

participants), and 2020 BBAs

2) Includes: quotas of members participating in the Financial Transactions Plan

(FTP); credit arrangements of NAB participants eligible to participate in the Resource
Mobilization Plan (RMP) in the event of NAB activation; and credit amounts under
effective 2020 BBAs with members participating in the FTP. Excludes 20 percent
liquidity buffers.

Multilateral Borrowing

The New Arrangements to Borrow (NAB) constitutes a second line of defence to supplement
IMF resources to forestall or cope with an impairment of the international monetary system.
Through the NAB, a number of member countries and institutions stand ready to lend
additional resources to the IMF. In January 2021, a reform of the NAB took effect following
consents from NAB participants, almost doubling the size of the NAB to SDR 361 billion
(US$521 billion) for the period from 2021 to 2025.

Bilateral Borrowing Agreements

Bilateral Borrowing Agreements serve as a third line of defence after quotas and the NAB.

Since the onset of the global financing crisis, the IMF has entered into several rounds
of bilateral borrowing agreements (BBAs) to ensure that it can meet the financing needs of its
members. BBAs serve as a third line of defence after quotas and the NAB.

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In January 2021, a new round of 2020 BBAs, (―2020 BBAs‖) became effective, replacing the
previous round of BBAs which expired at end-2020. So far, agreements with 40 creditors are
effective, for a total amount of SDR 135 billion. Agreements with a few other prospective
2020 BBA creditors are on track to become effective shortly. The 2020 BBAs have an initial
term of three years through end-2023, which is extendable with creditors‘ consents for one
further year through end-2024.

Criticisms of the IMF include

1. Conditions of loans
On giving loans to countries, the IMF make the loan conditional on the implementation of
certain economic policies. These policies tend to involve:

 Reducing government borrowing – Higher taxes and lower spending

 Higher interest rates to stabilise the currency.
 Allow failing firms to go bankrupt.
 Structural adjustment. Privatisation, deregulation, reducing corruption and
bureaucracy.
The problem is that these policies of structural adjustment and macroeconomic intervention
can make difficult economic situations worse.

2. Exchange rate reforms. When the IMF intervened in Kenya in the 1990s, they made the
Central bank remove controls overflows of capital. The consensus was that this decision
made it easier for corrupt politicians to transfer money out of the economy. Critics argue this
is another example of how the IMF failed to understand the dynamics of the country that they
were dealing with – insisting on blanket reforms.

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3. Devaluations In earlier days, the IMF have been criticised for allowing inflationary
devaluations.

4. Neo-Liberal Criticisms There is also criticism of neo-liberal policies such as privatisation.

Arguably these free-market policies were not always suitable for the situation of the country.
For example, privatisation can create lead to the creation of private monopolies who exploit
consumers.

5. Free market criticisms of IMF

As well as being criticised for implementing ‗free-market reforms‘ Others criticise the IMF
for being too interventionist. Believers in free markets argue that it is better to let capital
markets operate without attempts at intervention. They argue attempts to influence exchange
rates only make things worse – it is better to allow currencies to reach their market level.

6. Lack of transparency and involvement

The IMF has been criticised for imposing policy with little or no consultation with the
affected countries.

Jeffrey Sachs, the head of the Harvard Institute for International Development said:

―In Korea the IMF insisted that all presidential candidates immediately ―endorse‖ an
agreement which they had no part in drafting or negotiating, and no time to understand. The
situation is out of hand…It defies logic to believe the small group of 1,000 economists on
19th Street in Washington should dictate the economic conditions of life to 75 developing
countries with around 1.4 billion people.‖ source

Analysis of Bangladesh ( Data Regarding World Bank & IMF)

World Bank analysis

For the analysis we have taken country ―Bangladesh‖ here we evaluate examines outcomes,
analyses factors associated with satisfactory outcomes, and draws conclusions based on the
analysis; the evaluation also presents recommendations for the future.
For the analysis we have taken country ―Bangladesh‖ here we evaluate examines outcomes,
analyses factors associated with satisfactory outcomes, and draws conclusions based on the
analysis; the evaluation also presents recommendations for the future.
Projects are
1. Resilience, Entrepreneurship and Livelihood Improvement Project

The Resilience, Entrepreneurship and Livelihood Improvement or RELI Project will

help boost the rural economy in about 3,200 villages by providing income-generating
activities, livelihood and entrepreneurial support, as well as skills development for the
poor and extreme poor.

"In addition, the project will promote health and nutritional knowledge

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In addition, the initiative would provide market connections for rural businesses and
producer groups, such as e-commerce platforms, collaborations with local
governments, and promotional efforts.

It will also give skill development training to jobless or underemployed youngsters, as

well as returnee migrants, in order to improve their employability.

Project ID - P175820
Status – Active
Team Leader –
 Jean Edouard Albert Saint-Geours,
 Samina Yasmin
Borrower - People‘s Republic of Bangladesh
Approval Date - May 20, 2021
Total Project Cost - US$ 341.00 million
Tenure period by – May 28, 2026
Implementing Agency – Social Development Foundation
The Government of Bangladesh established the Social Development Foundation
(SDF) in 2000 as an independent and 'not-for-profit' organisation under the Ministry
of Finance, and it has since grown to become one of Bangladesh's most effective
poverty reduction organisations. SDF strengthens multifaceted initiatives that have an
influence on many elements of disadvantaged people's life, with an emphasis on
empowering women and establishing sustainable village institutions.
Funded by IDA – US$ 300 M
Local Beneficiaries – US$ 1 M
Borrower/Recipient – US$ 40 M
Where will the money be invested?

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It's critical to understand and keep track of finances to ensure that money isn't misused, and
that money isn't utilized for the wrong reasons.
As seen in this graph, 40% of the money will be spent on agriculture, fishing, and forestry.
Public administration and social protection received 36% of the funds. Agricultural market,
commercialization, and agri-business will get 22% of total funds. The remaining 2% of the
cash will be used towards local people's health and wellbeing.
The World Bank assigns a rating to a project to determine if it is on track or not.

As you can see in this diagram, progress toward the PDO has been given an acceptable grade
by the World Bank. Finally, Overall Implementation Progress was given a satisfactory grade,
and Overall Risk Rating was given a moderate rating.
Cumulative Disbursements of Fund

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This graph represents the Cumulative disbursement of fund for this project basically we can
see first installment will receive on quarter 1 of 2022, then again, some amount will come on
quarter 4 of 2022 and so on at the end of quarter 4 of 2026 Cumulative fund will reach US$
300 M.
2. Accelerating and Strengthening Skills for Economic Transformation
Objective of project to provide Bangladeshi youth and workers, especially women and
the poor, with skills needed for the future of work and better job prospects. In simple
words to provide certain skills to their youth which will help to fight against
unemployment and poverty.

Project ID - P167506
Status – Active
Team Leader - Shiro Nakata, Mokhlesur Rahman, Sabah Moyeen
Borrower - People's Republic of Bangladesh
Approval Date - May 20, 2021
Total Project Cost – US$ 500 M
Implementing Agency – Technical and Madrasah Education Division of Ministry of
Education
Commitment Amount – US$ 300 M
Tenure period by - December 31, 2026
Funded by –
 International Development Association (IDA) – US$ 300 M
 Borrower/Recipient – US$ 200 M

In US$ millions, the total project cost includes money from the World Bank and non-
bank sources. Current commitments are shown in the Active and Closed projects. The
anticipated amount is shown for proposed (pipeline) and dropped projects. The

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commitment amount for projects in the pipeline is a guideline that may change as the
project progresses. The Borrower of a Loan or the Recipient of a Grant is referred to
as a Borrower.

Where will the money be invested?

As seen in the graph, 92 percent of funds will go to workforce development and

vocational education i.e., US$ 276 M, with the remaining 8% going to public
administration education.

The World Bank assigns a rating to a project to determine if it is on track or not.

These are some factor world banks figure out while funding any project and its
important to figure out what are risk, such as political risk, financial risk such as
fluctuating currency.

Rating plays a significant part in analyzing criteria to determine whether to finance or

not to fund, and if funded, whether the project is progressing in the right path or not. It
is essentially a track record to ensure proper use of funds.

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Overall rating of project

Overall, the grading of progress toward achievement (PDO) is satisfactory, while

overall implementation progress has been rated Satisfactory, and overall risk has been
rated Substantial. So overall risk rating is not up to the mark this should be improved.
Cumulative Disbursements of Fund

This graph depicts the cumulative disbursement of funds for this project. We can see
that the first instalment will be received in quarter 1 of 2022, then some funds will be
received in quarter 1 of 2023, which means a gap of one year, and then some funds
will be received in quarter 1 of 2024, one year later, and this disbursement process
will end in quarter 2 of 2027.
Total funding by world Bank to Bangladesh in financial year 2021

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Commitment
Cumulative project
Project Title Country Project ID Amount in M Status Approval Date Last updated Date Cumulative fund of 2021
Resilience, Entrepreneurship and
P1
Livelihood Improvement Project Bangladesh P175820 300 Active May 20, 2021 August 17, 2021 300
Accelerating and Strengthening Skills
P1+P2
for Economic Transformation Bangladesh P167506 300 Active May 20, 2021 August 30, 2021 600
Bangladesh Third Programmatic
P1+P2+P3
Jobs Development Policy Credit Bangladesh P168725 250 Active March 26, 2021 August 24, 2021 850
Additional Financing for and
Restructuring of the COVID-19
P1+P2+P3+P4
Emergency Response and Pandemic
Preparedness Project Bangladesh P175837 500 Active March 18, 2021 February 16, 2021 1350
Recovery and Advancement of
P1+P2+P3+P4+P5
Informal Sector Employment Bangladesh P174085 200 Active March 15, 2021 June 15, 2021 1550
Climate-Smart Agriculture and
P1+P2+P3+P4+P5+P6
Water Management Project Bangladesh P161534 120 Active March 9, 2021 October 15, 2021 1670
Additional Financing for Digitizing
Implementation Monitoring and P1+P2+P3+P4+P5+P6+P7
Public Procurement Project Bangladesh P174056 40 Active February 5, 2021January 13, 2021 1710

There is total 7 funding to various project of Bangladesh in this year and its sum up to US$
1710 M at the end of this year.

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IMF analysis
For the analysis we have taken country ―Bangladesh‖ here we evaluate examines outcomes,
analyses factors associated with satisfactory outcomes, and draws conclusions based on the
analysis; the evaluation also presents recommendations for the future.

 The IMF Executive Board approves the 60th request for emergency financial
assistance to help its member countries address the challenges posed by
COVID-19.
 Bangladesh’s economy has been severely impacted by the COVID-19
pandemic with weaker domestic demand and a sharp decline in exports and
remittances.
 To address the urgent balance-of-payments and fiscal needs, the IMF
approved US$ 732 million emergency assistance for Bangladesh under the
Rapid Credit Facility and the Rapid Financing Instrument.
 The government has scaled up health and social protection expenditures to
mitigate the pandemic’s impact on the population and adopted several
stimulus measures to preserve economic activity.

Washington, DC – The Executive Board of the International Monetary Fund (IMF)

today approved a disbursement of SDR 177.77 million (about US$ 244 million or
16.67 percent of quota) under the Rapid Credit Facility (RCF), and a purchase of
SDR 355.53 million (about US$ 488 million or 33.33 percent of quota) under
the Rapid Financing Instrument (RFI). This will help finance the health, social
protection and macroeconomic stabilization measures, meet the urgent balance-of-
payments and fiscal needs arising from the COVID-19 outbreak, and catalyze
additional support from the international community.

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Financial Position in the Fund as of September 30, 2021

I. Membership Status: Joined: August 17, 1972; Article VIII

II. General Resources Account: SDR Million %Quota
Quota 1,066.60 100.00
IMF's Holdings of Currency (Holdings Rate) 1,288.13 120.77
Reserve Tranche Position 134.08 12.57
III. SDR Department: SDR Million %Allocation
Net cumulative allocation 1,532.69 100.00
Holdings 1,705.67 111.29
IV. Outstanding Purchases and Loans: SDR Million %Quota
RCF Loans 177.77 16.67
Emergency Assistance 1/ 355.53 33.33
ECF Arrangements 347.41 32.57

1/
Emergency Assistance may include ENDA, EPCA, and RFI.
V. Latest Financial Commitments:

Arrangements:
Date of Expiration Amount ApprovedAmount Drawn
Type Arrangement Date (SDR Million) (SDR Million)
ECF Apr 11, 2012 Oct 29, 2015 639.96 639.96
ECF 1/ Jun 20, 2003 Jun 19, 2007 400.33 316.73
1/
ECF Aug 10, 1990 Sep 13, 1993 345.00 330.00
1/
Formerly PRGF.

Outright Loans:
Date of Date Amount Approved Amount Drawn
Type Commitment Drawn (SDR Million) (SDR Million)
RFI May 29, 2020 Jun 02, 2020 355.53 355.53
RCF May 29, 2020 Jun 02, 2020 177.77 177.77
1/
Undrawn outright disbursements (RFI and RCF) expire automatically 60 days following
the date of commitment, i.e. Board approval date.
VI. Overdue Obligations and Projected Payments to Fund 2/
(SDR Million; based on existing use of resources and present holdings of SDRs):
Forthcoming
2021 2022 2023 2024 2025
Principal 54.85 118.85 180.31 223.48 143.23
Charges/Interest 0.94 3.76 3.68 2.28 0.49
Total 55.79 122.61 183.98 225.75 143.72
2/
When a member has overdue financial obligations outstanding for more than three months,
the amount of such arrears will be shown in this section.

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VII. Implementation of HIPC Initiative: Not Applicable

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
IX. Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the
Catastrophe Containment and Relief (CCR) Trust.

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Conclusion
The future of both Bretton Woods institutions remains uncertain. These agencies have been
less successful in answering the charges from the left, as the IMF retains its demand for
"structural adjustments" and the World Bank still favours funding for large, project-driven
funding.
While both the IMF and the World Bank have instituted some reforms, they have been unable
to appease the concerns of outraged environmentalists, labour unionists, and nationalists and
advocates of indigenous peoples in the developing world.
It is likely this globalization would have occurred whether or not there had been a Bretton
Woods conference, and it is all but certain it will continue in the future regardless of the
policies pursued by the IMF and World Bank.
While it is true that they have often been too driven by U.S. foreign policy concerns, in the
end the influence of both institutions has been widely overstated. And despite their mistakes
during the past half century, they have rarely been given credit for many of the little things
they do well.
For example, both institutions perform economic surveillance over most of the world's
economy, a valuable task that no other international or private organization could perform
with such skill. Both agencies also serve as a store of expert knowledge and wisdom for
countries throughout the world that lack trained specialists.
While neither the IMF nor the World Bank has met the lofty goals of their founders or
wielded the nefarious influence charged by their critics, they have and should continue to
play a small but important role in promoting prosperity and economic stability worldwide.

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