THE WORLD BANK

A Research presented by:

Angel, Jan Sandrix

Carub, Abbieygail
Dumayas, Roland

Dumlao, Melody
Duritan, Jan Michael
Espinosa, Princess Sarah

Leano, Jerlyn Mae

Magpale, Marjorie

Natividad, Tristan
Resurreccion, Jhanine
Tabulina, Jhonray
Viloria, Christine

The Contemporary World

A65 10-11:30 am TTh

Lourgielene Khay S. Viesca, LPT. MAed.

September 07, 2023

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 TABLE OF CONTENTS

Page Number

Title Page……………………………………………………………………… i

Table of Contents……………………………………………………………… ii-iii

THE WORLD BANK………………………………………………………… 1

MISSION OF WORLD BANK………………………………..……………… 2

STRUCTURE OF WORLD BANK GROUP………………………………… 2-3

PRIMARY FUNCTIONS OF WORLD BANK……………………………… 4-5

HISTORY OF WORLD BANK…………………………… ……………….. 5-6

SOME PROJECTS OF WORLD BANK …………………………………… 6-9

MEMBER COUNTRIES OF WORLD BANK…………………………….. 9-10

TOP 10 BORROWERS OF WORLD BANK………………………………. 10-11

SOURCES OF FUND OF WORLD BANK…………………………………. 11-12

PHILIPPINES AS A MEMBER OF WORLD BANK……………………… 12-13

CONTRIBUTIONS OF WORLD BANK TO THE PHILIPPINES………… 13-14

CRITICISMS ON WORLD BANK AND ITS POSSIBLE SOLUTION…….. 14-15

FUTURE PRIORITIES AND INITIATIVES…………………………………. 15-16

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GLOBAL CHALLENGES THAT THE WORLD BANK MAY FACE IN THE

FUTURE………………………………………………………………………. 17-18

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 THE WORLD BANK

✓ The World Bank is an international financial institution that provides loans and grants for

low-income countries pursuing capital projects that they are unable to fund otherwise.

✓ The World Bank is an international organization dedicated to providing financing, advice,

and research to developing nations to aid their economic advancement. 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 funds a diverse array of projects, including infrastructure development

(such as roads, bridges, and power plants), education initiatives, healthcare programs, and

environmental sustainability projects. Over the years, the World Bank has played a crucial

role in funding projects that have improved living standards and reduced poverty in many

developing countries. Moreover, the World Bank aligns its activities with the United

Nations' Sustainable Development Goals (SDGs) to address global challenges such as

poverty, hunger, healthcare, and climate change. During the COVID-19 pandemic, the

World Bank played a critical role in providing emergency financing to help countries

respond to the health and economic impacts of the virus.

✓ Overall, the World Bank remains a significant player in the international development

landscape, working toward a world where poverty is reduced, and sustainable development

is achieved in partnership with its member countries.

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 MISSION OF WORLD BANK

The primary mission of the World Bank is to reduce poverty and promote sustainable economic

development in developing countries. It aims to achieve this by providing loans, grants, and

expertise for a wide range of development projects.

STRUCTURE OF WORLD BANK GROUP

The World Bank consists of two main institutions: the International Bank for Reconstruction

and Development (IBRD) and the International Development Association (IDA). The IBRD

primarily provides loans to middle-income and creditworthy low-income countries, while the IDA

offers concessional loans and grants to the world's poorest countries.

The World Bank is actually made up of two main institutions, each with its own specific focus

and purpose:

1. The International Bank for Reconstruction and Development (IBRD): The IBRD is

often referred to as the "World Bank." It primarily works with middle-income and

creditworthy low-income countries to reduce poverty and promote sustainable

development. The IBRD provides loans and guarantees to member countries for a wide

range of development projects, including infrastructure, healthcare, education, and

economic reforms.

2. The International Development Association (IDA): IDA is another arm of the World

Bank that focuses on the poorest and most vulnerable countries. IDA provides concessional

loans and grants to help these countries address pressing development challenges. The goal

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 of IDA is to reduce extreme poverty, promote inclusive growth, and improve living

conditions in the poorest nations.

In addition to these two main institutions, the World Bank Group also includes three other

entities:

3. The International Finance Corporation (IFC): The IFC is the private sector arm of the

World Bank Group. It works with businesses and entrepreneurs to support private sector

development and investment in developing countries. The IFC provides investment and

advisory services to help create jobs, stimulate economic growth, and reduce poverty.

4. The Multilateral Investment Guarantee Agency (MIGA): MIGA provides political risk

insurance and credit enhancement to encourage foreign investment in developing

countries. It helps mitigate risks for investors by providing guarantees against non-

commercial risks, such as expropriation and political unrest.

5. The International Centre for Settlement of Investment Disputes (ICSID): ICSID is an

arbitration institution that provides facilities for the arbitration and conciliation of

investment disputes between governments and foreign investors. It helps resolve disputes

in a fair and impartial manner.

Together, these institutions and entities make up the World Bank Group, which works to

address a wide range of development challenges, from poverty reduction and infrastructure

development to private sector growth and investment promotion, in countries around the world.

Each institution within the World Bank Group has its unique mandate and role in advancing global

development goals.

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 PRIMARY FUNCTIONS OF WORLD BANK

The World Bank serves as a vital international financial institution with a broad mandate

to promote global economic development and reduce poverty. Its primary functions encompass a

range of activities aimed at assisting member countries in achieving sustainable development. Here

are the core functions of the World Bank:

1. Providing Financial Assistance: One of the most prominent functions of the World Bank

is to support their development initiatives. This financial assistance can take several forms,

including:

• Loans: The World Bank extends long-term, low-interest loans to member countries for

various development projects, such as infrastructure, education, healthcare, and

environmental conservation.

• Grants: In specific cases, particularly for the poorest and most vulnerable countries,

the World Bank provides grants that do not require repayment. These grants are often

used for projects that address critical social and environmental challenges.

• Concessional Financing: The International Development Association (IDA), a part of

the World Bank Group, offers concessional financing with low or zero interest rates to

the poorest countries to help them implement projects that might otherwise be

financially unfeasible.

2. Technical Expertise and Knowledge Sharing: The World Bank is renowned for its

extensive pool of experts and economists who offer technical expertise and knowledge in

various sectors, such as infrastructure development, education, healthcare, agriculture, and

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 more. This expertise is crucial for member countries seeking guidance in designing and

implementing effective policies and projects.

3. Crisis Response: In times of economic and financial crises, as well as health emergencies,

the World Bank provides rapid response and financial assistance to help member countries

stabilize their economies and mitigate the impacts of these crises. This function is crucial

for maintaining global economic stability.

4. Environmental and Social Sustainability: The World Bank promotes environmental and

social sustainability in its development projects by integrating environmental and social

considerations into its lending and advisory services. This helps member countries pursue

development in ways that are environmentally responsible and socially inclusive.

5. Global Partnerships: The World Bank collaborates with other international organizations,

governments, civil society groups, and the private sector to address complex global

challenges collectively. It facilitates partnerships and coordination among various

stakeholders to achieve common development goals.

HISTORY OF WORLD BANK

The history of the World Bank dates back to the aftermath of World War II when the

global community recognized the need for reconstruction and economic development in war-

ravaged Europe. The World Bank was established during the Bretton Woods Conference held in

July 1944 in Bretton Woods, New Hampshire, USA. The intellectual leaders at the conference

were John Maynard Keynes (Adviser to the Treasury in the United Kingdom), and Harry

Dexter White (Assistant Secretary of the Treasury in the United States). Delegates from 44

countries came together to create a framework for international monetary cooperation and

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economic development after the war. The conference led to the creation of two institutions: the

International Monetary Fund (IMF) and the International Bank for Reconstruction and

Development (IBRD), which later became part of the World Bank Group. 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.

HERE ARE SOME PROJECTS THAT WERE FUNDED BY WORLD BANK

The World Bank has been involved in numerous successful projects in various countries

over the years, each with its own unique impact on economic development, poverty reduction,

and improved quality of life for local populations. Here are a few examples of successful World

Bank projects in specific countries and their notable impacts:

1. China - Poverty Reduction Projects:

Impact: China's partnership with the World Bank on poverty reduction projects has been

instrumental in lifting hundreds of millions of people out of poverty over several decades.

These projects have improved access to basic services, healthcare, education, and

infrastructure in rural areas.

2. Philippines - Social Welfare and Development Project (SWDP):

Impact: The SWDP is aimed at strengthening the Philippines' social protection system. It

includes the Pantawid Pamilyang Pilipino Program (4Ps), a conditional cash transfer

program. The 4Ps has provided cash assistance to low-income families in exchange for

meeting certain conditions related to health and education. This initiative has helped

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 improve the well-being of vulnerable households by increasing their access to healthcare

and education, reducing poverty, and enhancing child nutrition.

3. Rwanda - Land Tenure Regularization Project:

Impact: The project aimed to formalize land tenure arrangements in Rwanda, leading to

increased land security for citizens. This has encouraged investment in agriculture and

improved land management, contributing to economic growth and reduced land-related

conflicts.

4. India - National Rural Health Mission:

Impact: The World Bank supported India's National Rural Health Mission, which aimed

to improve healthcare services in rural areas. This initiative significantly increased the

availability and accessibility of healthcare services, leading to improved maternal and

child health outcomes.

5. Bangladesh - Padma Multipurpose Bridge Project:

Impact: The Padma Bridge project has enhanced connectivity and transportation in

Bangladesh. It has reduced travel times, increased trade and economic activity, and

improved the living standards of communities in the region.

6. Ethiopia - Productive Safety Net Program (PSNP):

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 Impact: PSNP has helped Ethiopia build resilience against food insecurity and drought. It

provides cash transfers and food assistance to vulnerable households, reducing poverty

and food insecurity during crises.

7. Brazil - Bolsa Família Program:

Impact: The Bolsa Família Program is a large-scale conditional cash transfer program in

Brazil. It has reduced poverty and inequality, improved school attendance among children,

and contributed to better health outcomes for recipients.

8. Ghana - Community Water and Sanitation Project:

Impact: This project expanded access to clean water and improved sanitation facilities in

rural communities in Ghana. It has significantly reduced waterborne diseases and

improved overall health and well-being.

9. Kenya - Kenya Electricity Expansion Project:

Impact: The project expanded access to electricity in Kenya, particularly in rural areas. It

has boosted economic activities, improved living conditions, and provided new

opportunities for education and healthcare.

10. Peru - Rural Roads and Connectivity Project:

Impact: This project improved rural road infrastructure, enhancing access to markets,

schools, and healthcare facilities. It has boosted agricultural production, reduced

transportation costs, and improved overall economic conditions in rural areas.

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 These are just a few examples of successful World Bank projects that have had a

significant impact on countries and communities. The World Bank continues to work on projects

worldwide, addressing various development challenges and contributing to global poverty

reduction and sustainable development.

MEMBER COUNTRIES OF WORLD BANK

The World Bank has had member countries join at various times since its establishment. As

of September 2021, the World Bank had 189 member countries. Here is a list of some of the

earliest member countries to join the World Bank, based on their date of membership:

1. United States - Founding Member (July 1, 1944)

2. United Kingdom - Founding Member (July 1, 1944)

3. France - Founding Member (July 1, 1944)

4. China - Founding Member (July 1, 1944)

5. Soviet Union (now Russia) - Founding Member (July 1, 1944)

6. India - Founding Member (July 1, 1944)

7. Brazil - Founding Member (July 1, 1944)

8. Canada - Founding Member (July 1, 1944)

9. Australia - Founding Member (July 1, 1944)

10. Argentina - Founding Member (July 1, 1944)

11. Mexico - Founding Member (July 1, 1944)

12. Egypt - Founding Member (July 1, 1944)

13. South Africa - Founding Member (July 1, 1944)

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 14. Saudi Arabia - Founding Member (July 1, 1944)

15. Belgium - Founding Member (July 1, 1944)

16. Netherlands - Founding Member (July 1, 1944)

17. Luxembourg - Founding Member (July 1, 1944)

18. Switzerland - Founding Member (July 1, 1944)

19. Sweden - Founding Member (July 1, 1944)

20. Norway - Founding Member (July 1, 1944)

Note that the World Bank has had additional member countries join over the years, and

the list of member countries has evolved. New members have joined, while some have withdrawn

or changed their status. To get the most current and comprehensive list of member countries, you

should refer to the official World Bank website or other authoritative sources.

TOP 10 BORROWERS OF WORLD BANK

As of September 2021, here are the top 10 borrowers or debtors of the World Bank.

1. India: India has been one of the largest borrowers from the World Bank, with an

outstanding debt of over $100 billion.

2. China: China has also been a significant borrower, with an outstanding debt exceeding

$100 billion.

3. Indonesia: Indonesia's outstanding debt to the World Bank was approximately $40

billion.

4. Pakistan: Pakistan had an outstanding debt of around $30 billion.

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 5. Nigeria: Nigeria's outstanding debt to the World Bank was roughly $15 billion.

6. Bangladesh: Bangladesh had an outstanding debt of over $10 billion.

7. Brazil: Brazil's debt to the World Bank was around $10 billion.

8. Vietnam: Vietnam's outstanding debt was approximately $10 billion.

9. Philippines: The Philippines had an outstanding debt of around $8 billion.

10. Turkey: Turkey's outstanding debt to the World Bank was approximately $8 billion.

SOURCES OF FUND OF WORLD BANK

The World Bank raises funds through various channels and mechanisms to finance its

development projects and initiatives. Here are some of the primary ways the World Bank raises

funds:

1. Capital Contributions from Member Countries: The World Bank is owned by its member

countries, and these countries provide capital to the institution. Each member's financial

contribution is based on its size and economic capacity. These capital contributions form the core

funding source for the World Bank's operations.

2. Borrowing from International Capital Markets: The World Bank is highly rated by

international credit agencies, which allows it to borrow money from international capital markets

at favorable terms. It issues bonds and securities in global financial markets to raise funds. These

bonds are considered attractive investments because they are backed by the financial strength of

the institution and have historically low default rates.

3. Income from Loans and Credits: The World Bank provides loans and credits to member

countries for various development projects. The interest and principal payments received from

these loans generate revenue for the institution. While some loans are provided at market-based

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interest rates through the International Bank for Reconstruction and Development (IBRD),

concessional loans with lower interest rates and grants are offered through the International

Development Association (IDA).

4. Dividends and Returns from Investments: The World Bank may also earn income from its

investments in various financial instruments and projects, which contributes to its overall funding.

It's important to note that the World Bank's ability to raise funds is closely tied to its

creditworthiness, reputation, and the support of its member countries. The funds raised are then

used to provide loans, grants, and technical assistance to support development projects and

initiatives in member countries.

PHILIPPINES AS A MEMBER OF WORLD BANK

The Philippines has a long-standing and cooperative relationship with the World Bank,

which is rooted in the country's commitment to socioeconomic development and poverty

reduction. The Philippines is a member of the World Bank and has been a member since 1945,

when the institution was established. As a member, the Philippines participates in the governance

and decision-making processes of the World Bank.

The first World Bank-supported project in the Philippines was the Binga Power Project

in 1957 which funded the construction of a hydroelectric power station in Benguet to meet the

growing demand for electricity in Luzon following the Second World War.

After this first project, WB support funded a dozen projects in the ‘60s, these include

renewable energy projects (such Angat Power Project in Bulacan Province and Maria Cristina

Falls Hydro Power Expansion Project in Iligan City, Lanao del Sur), irrigation (Upper Pampanga

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River Irrigation Project, including Pantabangan Dam), and water supply (Manila Water Supply

Project). Most of these projects are still operational until today.

SIGNIFICANT CONTRIBUTIONS OF WORLD BANK IN THE PHILIPPINES

1. Financial Support: The World Bank has provided significant financial support to the

Philippines over the years. This support comes in the form of loans, credits, and grants for

a wide range of development projects and programs.

2. Infrastructure Development: The World Bank has provided funding and technical

assistance for numerous infrastructure projects in the Philippines. These projects have

included the construction and improvement of roads, bridges, ports, airports, and public

transportation systems. Improved infrastructure can help stimulate economic growth,

reduce transportation costs, and enhance access to services.

3. Education: The World Bank has provided funding and technical assistance to enhance

the quality of education in the Philippines. This includes programs aimed at improving

access to quality education, teacher training, and curriculum development.

4. Healthcare: The World Bank has supported healthcare projects in the Philippines,

including efforts to improve healthcare facilities, expand access to healthcare services,

and strengthen health systems. These initiatives have contributed to better healthcare

outcomes for Filipinos.

5. Social Protection: The World Bank has worked with the Philippine government to

develop and implement social protection programs aimed at reducing poverty and

vulnerability. This includes conditional cash transfer programs that provide financial

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 assistance to poor families, as long as they meet certain conditions related to education

and healthcare.

6. Disaster Resilience and Recovery: Given the Philippines' vulnerability to natural

disasters, the World Bank has played a critical role in supporting disaster resilience and

recovery efforts. This includes funding for disaster risk reduction projects and post-

disaster reconstruction.

7. COVID-19 Response: During the COVID-19 pandemic, the World Bank provided

emergency financial support to the Philippines to help the country respond to the health

and economic impacts of the virus. This assistance included funding for healthcare

systems, social protection, and economic recovery.

CRITICISMS ON WORLD BANK AND ITS POSSIBLE SOLUTION

Criticism of the World Bank is diverse and often stems from various perspectives, including civil

society organizations, academics, and policymakers. While addressing all criticisms may not be

straightforward, here are some common criticisms and potential ways to address them:

1. Transparency and Accountability:

Criticism: Lack of transparency and accountability in decision-making processes.

Solution: Enhance transparency by making key documents, project information, and board

deliberations publicly accessible. Involve a wider range of stakeholders in decision-making

to ensure inclusivity.

2. Environmental Impact:

Criticism: Negative environmental impacts of some projects.

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 Solution: Strengthen and enforce environmental safeguards, conduct rigorous

environmental impact assessments, and prioritize sustainable development. Support

renewable energy and environmentally friendly projects.

3. Social Inclusion:

Criticism: Concerns about projects displacing vulnerable communities or worsening

inequality.

Solution: Prioritize social inclusion by involving local communities in project design,

ensuring equitable benefits, and conducting thorough social impact assessments. Mitigate

displacement risks and promote livelihood restoration.

Addressing these criticisms requires a commitment to ongoing reform and collaboration

with stakeholders, including recipient countries, civil society organizations, and the private sector.

The World Bank should prioritize a people-centered approach, ensuring that development projects

genuinely benefit local communities and align with the Sustainable Development Goals (SDGs).

Additionally, regular assessments, independent evaluations, and transparent reporting are essential

to hold the institution accountable for its actions and outcomes.

FUTURE PRIORITIES AND INITIATIVES

1. Addressing Climate Change and Environmental Sustainability:

• The World Bank has been increasingly emphasizing its commitment to addressing climate

change and environmental sustainability. This includes supporting climate-resilient

infrastructure, renewable energy projects, and initiatives to reduce greenhouse gas

emissions.

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 • The bank has pledged to increase its investments in climate-related projects and promote

climate-smart policies and practices in its member countries.

• It also supports efforts to protect natural resources, biodiversity, and ecosystems.

2. Fostering Inclusive Growth and Reducing Inequality:

• Promoting inclusive economic growth and reducing income inequality have been central

to the World Bank's mission.

• The World Bank focuses on projects and policies that aim to reduce poverty, improve

access to quality education and healthcare, and create economic opportunities for

marginalized and vulnerable populations.

• Initiatives to enhance social safety nets and promote gender equality are also key

components of its inclusive growth agenda.

3. Promoting Digital Transformation:

• The World Bank recognizes the significance of digital transformation in driving economic

development and improving public services.

• It supports efforts to expand access to digital infrastructure, including broadband internet

and digital financial services.

• The World Bank also works with countries to build digital skills and foster innovation

ecosystems to promote economic growth in the digital age.

GLOBAL CHALLENGES THAT THE WORLD BANK MAY FACE IN THE FUTURE

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 The World Bank is likely to face several global challenges in the coming years, which may

include the following:

1. Impact of Pandemics and Health Crises:

Challenge: The World Bank will need to continue addressing the economic and social fallout

of pandemics and health crises while preparing for future outbreaks.

Overcoming it: The World Bank can work with member countries to strengthen healthcare

systems, invest in pandemic preparedness, and support equitable vaccine distribution. It can

also provide financial and technical assistance to help countries mitigate the economic impact

of health crises.

2. Food Security and Agricultural Sustainability:

Challenge: Ensuring food security and sustainable agriculture is critical for reducing poverty

and hunger.

Overcoming it: The World Bank can support agricultural development, promote sustainable

farming practices, and invest in rural infrastructure. It can also work with countries to enhance

food security through improved access to nutritious food and social safety nets.

These are just some of challenges the World Bank may face in the future. To overcome this

effectively, the World Bank should continue to collaborate with other international organizations,

leverage innovative financing mechanisms, and adapt its strategies to the evolving needs of its

member countries. Building partnerships with governments, civil society, and the private sector

will be essential to achieving its development goals in a rapidly changing global landscape.

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 While the World Bank's contributions are substantial, it is not without criticism and challenges.

Concerns have been raised about issues such as conditionality, environmental impacts, and

governance. Nevertheless, the institution continues to evolve and adapt, striving to address global

development challenges and promote sustainable economic growth and well-being in countries

worldwide. Its role remains critical in the ongoing pursuit of a more equitable and prosperous

world.

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