World Bank

Pankaj Jain

World Bank Briefing
Made up of 5 different organizations
 International

Bank for Reconstruction and Development (IBRD)  International Development Association (IDA)  International Finance Corporation (IFC)  Multilateral Investment Guarantee Agency (MIGA)  International Center for the Settlement of Investment Disputes (ICSID

About World Bank
 

The World Bank is like a cooperative, where its 185 member countries are shareholders. The shareholders are represented by a Board of Governors, who are the ultimate policy makers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund.

Purpose of World Bank

The World Bank is one of the world’s largest sources of funding and knowledge to support governments of member countries in their efforts to invest in schools and health centers, provide water and electricity, fight disease, and protect the environment.

Difference B/W World Bank and Commercial Bank…

While it lends and even manages funds much like a regular bank, the World Bank is different in many important ways. It is owned by 184 countries. The financial support and advice the World Bank provides its member countries is designed to help them fight poverty. Unlike commercial banks, the World Bank often lends at little or no interest to countries that are unable to raise money for development anywhere else.

Difference B/W World Bank and Commercial Bank…

Countries that borrow from the World Bank also have a much longer period to repay their loans than commercial banks allow. In some cases, they don’t have to start repaying for ten years. It has good credit because if has large, wellmanaged financial reserves. This means it can borrow money at low interest rates from capital markets all over the world and channel it to developing countries, often at much lower rates of interest than what markets would charge these countries.

IMF Vs World Bank

While the World Bank provides support to developing countries, the IMF aims to stabilize the international monetary system and monitors the world’s currencies.

How are Loans Made?

The World Bank offers two basic types of loans:
 investment

loans for goods, work and services to support economic and social development projects in a broad range of sectors;  adjustment loans to support policy and institutional reforms

How are Loans Made?

During loan negotiations, the World Bank agrees with the borrowing country on the development objective of the project or program, outputs, performance indicators (to measure the impact and success of the project) and a plan to put it all into practice. Once a loan is approved and becomes effective, the borrower puts the project or program into practice according to the terms agreed with the World Bank. The World Bank supervises how each loan is used and evaluate the results. All loans are governed by operational policies, which make sure that operations are economically, financially, socially and environmentally sound.

Global Challenges
At the World Bank we have made the world's challenge—to reduce global poverty—our challenge.  Our work focuses on achievement of the Millennium Development Goals that call for the elimination of poverty and sustained development. The goals provide us with targets and yardsticks for measuring results.

Global Challenges
Our mission is to help developing countries and their people reach the goals by working with our partners to alleviate poverty.  To do that we concentrate on building the climate for investment, jobs and sustainable growth, so that economies will grow, and by investing in and empowering poor people to participate in development.

Six Strategic Themes : To meet Global Challenges

The Poorest Countries : We are helping overcome poverty and spur sustainable growth in the poorest countries, especially in Africa. Post-conflict and Fragile States: We are addressing the special challenges of countries that are emerging from conflict or seeking to avoid the breakdown of the state. Middle-income Countries : We are building a competitive menu of development solutions for middle-income countries, with customized services as well as finance.

Six Strategic Themes : To meet Global Challenges

Global Public Goods : We are playing a more active role in regional and global issues that cross national borders, including climate change, infectious diseases, and trade. The Arab World : We are working with partners to strengthen development and opportunity in the Arab world. Knowledge and Learning : We are a learning organization: we increasingly leverage the best global knowledge to support development

10 Good Things About World Bank
1. 2. 3. 4. 5.

We are the world’s largest external funder of education We are one of the largest external funder in the fight against HIV/AIDS We are leader in the fight against corruption worldwide We strongly support debt relief to the poorest and most heavily indebted countries. We are one of the largest international funder of biodiversity projects

10 Good Things About World Bank
6. 7. 8. 9. 10.

We work in partnership more than ever before. We are helping to bring clean water, electricity and transport to poor people Civil Society plays a larger role in our work We help countries emerging from conflict We are responding to the voice of poor people

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