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World Bank Introduction

World Bank is a term used to describe an international financial institution that provides leveraged loans to developing countries for capital programs. The World Bank has a stated goal of reducing poverty. By law, all of its decisions must be guided by a commitment to promote foreign investment, international trade and facilitate capital investment. The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: •

the International Bank for Reconstruction and Development (IBRD) the International Development Association (IDA)

Whereas the latter incorporates these two in addition to three more: • International Finance Corporation (IFC) • Multilateral Investment Guarantee Agency (MIGA) • International Centre for Settlement of Investment Disputes (ICSID).

History
The World Bank is one of five institutions created at the Bretton Woods Conference in 1944. The International Monetary Fund, a related institution, is the second. Delegates from many countries attended the Bretton Woods Conference. The most powerful countries in attendance were the United States and United Kingdom which dominated negotiations.

Key Factors
The World Bank sees the five key factors necessary for economic growth and the creation of an enabling business environment as:

1. Build capacity: Strengthening governments and educating government officials. 2. Infrastructure creation: implementation of legal and judicial systems for the encouragement of business, the
protection of individual and property rights and the honoring of contracts.

3. Development of Financial Systems: the establishment of strong systems capable of supporting endeavors from
micro credit to the financing of larger corporate ventures. 4. Combating corruption: Support for countries' efforts at eradicating corruption. 5. Research, Consultancy and Training: the World Bank provides platform for research on development issues, consultancy and conduct training programs (web based, on line, tele-/video conferencing and class room based) open for those who are interested from academia, students, government and non-governmental organization (NGO) officers etc. The Bank obtains funding for its operations primarily through the IBRD's sale of AAA-rated bonds in the world's financial markets. The IBRD's income is generated from its lending activities, with its borrowings leveraging its own paid-in capital, plus the investment of its "float". The IDA obtains the majority of its funds from forty donor countries who replenish the bank's funds every three years, and from loan repayments, which then become available for re-lending.

Criteria
For the goals to be realized, six criteria must be met: stronger and more inclusive growth in Africa and fragile states, more effort in health and education, integration of the development and environment agendas, more and better aid, movement on trade negotiations, and stronger and more focused support from multilateral institutions like the World Bank.

are contributing but unpaid family workers. Promote Gender Equality and Empower Women: The tide is turning slowly for women in the labor market. Africa's poverty. new policies. . There are numerous causes of maternal death that require a variety of health care interventions to be made widely accessible. AIDS remains the leading cause of death in Sub-Saharan Africa (1. while the International Development Association (IDA) has 168 members. particularly in regions of biological diversity. 3. networks and functions. 8. the trend indicates that the world as a whole can meet the goal of halving the percentage of people living in poverty. The Executive Directors. Improve Maternal Health: Almost all of the half million women who die during pregnancy or childbirth every year live in Sub-Saharan Africa and Asia. Zoellick. country assistance strategies and borrowing and financing decisions. the proportion of people living in extreme poverty fell from almost a third to less than a fifth. Achieve Universal Primary Education: The number of children in school in developing countries increased from 80% in 1991 to 88% in 2005. and most of the 36 countries where 90% of the world's undernourished children live are in Africa. sectors. The nominee is subject to confirmation by the Board of Governors. is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. the Bank President has always been a US citizen nominated by the United States. most of their deaths were from preventable causes. Greenhouse gas emissions are increasing faster than energy technology advancement. currently Robert B. 4. An estimated 10 million-plus children under five died in 2005. but the number of people living with HIV continues to grow.1. Reduce Child Mortality: There is some improvement in survival rates globally. usually meeting twice a week to oversee activities such as the approval of loans and guarantees. Donors have to fulfill their pledges to match the current rate of core program development. Traditionally. There are 24 Vice-Presidents. The World Bank Group Gender Action Plan was created to advance women's economic empowerment and promote shared growth. 2. Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank (such as IDA). make up the Board of Directors. however. Develop a Global Partnership for Development: Donor countries have renewed their commitment. 6. and Other Diseases: Annual numbers of new HIV infections and AIDS deaths have fallen. Members The International Bank for Reconstruction and Development (IBRD) has 186 member countries.6 million deaths in 2007). Although results vary widely within regions and countries. Still. prevalence is above 15 percent. representing the Bank's member countries. in charge of regions. 7. Leadership The President of the Bank. Ensure Environmental Sustainability: Deforestation remains a critical problem. In the eight worst-hit southern African countries. leading to more than 1 million deaths. 57% of them girls. to serve for a five-year. were not being educated as of 2005. Eradicate Extreme Poverty and Hunger: From 1990 through 2004. Emphasis is being placed on the Bank Group's collaboration with multilateral and local partners to quicken progress toward the MDGs' realization. Malaria. Combat HIV/AIDS. Treatment has increased globally.worldwide more than 60% . the largest shareholder in the bank. Nearly all the cases and more than 95 percent of the deaths occur in Sub-Saharan Africa. three Senior Vice Presidents and two Executive Vice Presidents. the administrative budget. yet far more women than men. but still meets only 30 percent of needs (with wide variations across countries). The Vice Presidents of the Bank are its principal managers. There are 300 to 500 million cases of malaria each year. 5. is expected to rise. Less than a quarter of countries are on track for achieving the goal of halving under-nutrition. which continues to decline. about 72 million children of primary school age. renewable term. accelerated improvements are needed most urgently in South Asia and Sub-Saharan Africa.

thus promoting economic growth through investment and enabling the poor to share the fruits of economic growth. Japan (6. Germany (4. while the IDA provides low or no interest loans and grants to low income countries with little or no access to international credit markets.85%).75%). Most developed countries' voting power was reduced. the United Kingdom (3. lending primarily to "middle-income countries" at interest rates which reflect a small mark-up over its own (AAA-rated) borrowings from capital markets.75%). The IBRD is a market-based nonprofit organization. other countries that saw significant gains included Brazil. in cooperation with the local government and any interested stakeholders and may rely on analytical work performed by the Bank or other parties. and the World Bank aligns its aid efforts correspondingly. Russia's voting power was unchanged.00%). a Country Assistance Strategy is produced. including achievement of the MDGs. jobs and sustainable growth. India. . by helping countries develop an environment for investment. Millennium Development Goals The World Bank's current focus is on the achievement of the Millennium Development Goals (MDGs). the bank's assistance plans are based on poverty reduction strategies. The government then identifies the country's priorities and targets for the reduction of poverty. using its high credit rating to make up for the relatively low interest rate on its loans. notably China. Country assistance strategies As a guideline to the World Bank's operations in any particular country. South Korea and Mexico. by combining a cross-section of local groups with an extensive analysis of the country's financial and economic situation the World Bank develops a strategy pertaining uniquely to the country in question. and France (3. while the IDA is funded primarily by periodic "replenishments" (grants) voted to the institution by its more affluent member countries. voting powers at the World Bank were revised to increase the voice of developing countries. The Bank's mission is to aid developing countries and their inhabitants to achieve development and the reduction of poverty. Under the changes.Voting power In 2010. known as 'Voice Reform Phase 2'.42%).84%). China (4. The countries with most voting power are now the United States (15. Poverty reduction strategies For the poorest developing countries in the world.