THE WORLD BANK Its is not a bank… Its a financial institution that provides technical and financial assistance

to developing countries around the world. ……….

HISTORY
•WB was created at Bretton Woods Conference in 1944 during world war II •Most powerful countries in the conference were US & UK

•Objective to rebuilt Europe post-war
•It started as the International Bank for Reconstruction and Development (IBRD)

•First loan worth $250 million was given to France in 1947
•Robert McNamara who was appointed to the presidency in 1968

INTRODUCTION
• WB is now a part of World Bank Group WB Group
International Development Association (IDA) International Centre for Settlement of Investment Decisions (ICSID) Multilateral Investment Guarantee Agency (MIGA)

International Finance Corporation (IFC)

IBRD

• The World Bank (WB) is like a co-operative • It comprising of 188 member countries who are represented by a Board of Governors • These Board of Governors are also the ultimate policy makers and decision makers of WB • A country has to join the International Monetary Fund (IMF) prior

STRATEGY
Approach
• Define Customers quantifiably and measurably • Multiple societal outcomes •Operational effectiveness - Doing things BETTER •Strategic PositioningDoing things DIFFERENTLY

Support to India
•Reduce poverty •Develop an investmentenvironment •Increase job opportunities •Strengthen governments with education •Empower the development of legal and judicial systems •Benefit from micro credit as well as large corporate undertakings •Combat corruption

Operations
•Fund Generation •Loans •Grants •Analytics & Advisory •Capacity Building

ORGANIZATIONAL STRUCTURE
Board of Governo rs Executiv e Director s Presiden t (Jim Yong
Kim)
The Vice President &WBG Chief Ethics Officer Managing Directors (3) Vice President & Corporate Secretary Sr. Vice President

DirectorGeneral

VicePresiden t

AuditorGeneral

Chairper son

Acting WBG Chief Financial Officer

Sr. Vice President & WBG General Counsel

The role of the Board of Governors
Admit and suspend members

Increase or decrease the authorized capital stock Determine the distribution of the net income of the Bank and Suspend the operations of the Bank

Increase the number of elected Executive Directors and Approve amendments to the AoA

Formalizat ion
• Documents and rules and regulations • Prescribed by the Articles of Association, ByLaws

Centralizati on Specializat ion
•The Governors delegate tasks to the 25 Executive Directors
•All the decisions are made through an 80% voting system of the Board of Governors •In case if equal votes: President decides

MATRIX STRUCTURE
Regional matrix :
1. Relationship of country director-controlled country
management units (CMUs) with sector manager controlled sector management units (SMUs) 2. CMUs: Client groups SMUs: Product groups 3. Work program agreements (WPAs)

Bank wide matrix
Relationship between operational regional VPUs (which include CMUs, SMUs, and central regional units) and

CULTURE
Internal integration
• Members develop a collective identity, cohesiveness , working relationships • learn how to work together effectively and efficiently

External Adaption:
• Organization meets its goals, adapt to various customer needs and the dynamic external environment

Strict formal Hierarchy : Rigid
World bank group Staff manual • Norms and principles • Guidelines of conduct within the institution • Conflict of interest policies • Decision making processes.

• Complexity in hierarchy with increase in members • Extreme Job dependency and lack of competition

PROCESS
What do they do? Process Issues
• Fiduciary responsibilities of its depositors • Maintenance of Loan Portfolio • Raising funds in capital market with the help of government guarantee • Lend them to the developing nations

• Money extraction > Money funded • Point of discussion for the critics

WORLD BANKS AS !
Financial intermediary (Bank-as-a-Bank model) Evangelical agent

Instrument to Save National Interests

Transfer Financial Resources

BANK GOVERNANCE SYSTEM

Reluctance to change the assigned object

Goal overloading for developing countrie External pressures from political parties
oPromotion of staff at higher levels oAllocation of funds

Challenges
oAccountability to its shareholders oProtection of its operations from political interferences oBoard of Directors : Proxy for their country, rather than long term interests of the bank

Conclusion CONCLUSION
Governors Role

Executive Directors Tenure

Board’s Functioning

Bank President says….
“create an internal climate that encourages better management of the portfolio" which ultimately leads to creating
"…a change in institutional behavior and attitudes over time which will reflect the crucial importance of managing the implementation of our operations well and of judging effectiveness in terms of development impact.”

RECOMMENDATIONS
Strong client orientation policy Idea marketing Regular field visits (Staff) Client friendly research

Privatization of its organizational culture

THE WORLD BANK Its is not a bank… Its a financial institution that provides technical and financial assistance to developing countries around the world. ……….

Thank You

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