A Presentation on

World Bank

Presented by:Bhupendra Bhavsar

Logo of World Bank

Head Quarter of World Bank in Washington DC, USA

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.

World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) .

whereas World Bank Group incorporates these two in addition to three more: International Finance Corporation (IFC). Multilateral Investment Guarantee Agency (MIGA). . and 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. is the second . a related institution.

. The presence of a dominant power willing and able to assume a leadership role in global monetary affairs. The concentration of power in a small number of states.What was the Need of Forming World Bank? The shared experiences of the Great Depression.

To Find the ways to resolve these problems A conference was held inMount Washington Hotel in Bretton Woods. The 730 delegates from all 44 Allied nations deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944. New Hampshire. for the United Nations Monetary and Financial Conference. United States. .

All the participating governments at Bretton Woods agreed that the monetary chaos of the interwar period had yielded several valuable lessons. .Bretton-Woods System The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value²plus or minus one percent²in terms of gold and the ability of the IMF to bridge temporary imbalances of payments.

governments would closely police the production of their currencies and ensure that they would not artificially manipulate their price levels . the new system would be devoid (initially) of governments meddling with their currency supply as they had during the years of economic turmoil preceding WWII. only using US dollars as the world's new reserve currency until the world's gold supply could be reallocated via international trade.Thus. Instead.the new international monetary system was in fact a return to a system similar to the pre-war gold standard.

utcomes of Bretton Woods System International Monetary Fund:   Officially established on December 27. the IMF was to be the keeper of the rules and the main instrument of public international management. IMF approval was necessary for any change in exchange rates in excess of 1%. 1945. It advised countries on policies affecting the monetary system. The Fund commenced its financial operations on March 1. when the 29 participating countries at the conference of Bretton Woods signed its Articles of Agreement. . 1947.

President Harry S. When the IMF began operations in 1946. economists. Truman named White as its first U. .. Executive Director. D.S.S. International Bank for Reconstruction and Development(IBRD) World Bank Group. It regularly exchanged personnel with the U. Treasury.C. the IMF was based in Washington.S. and staffed mainly by U.

Organization Of World Bank The President Of World Bank Robert Zoellick .

it is customary for the Directors of MIGA to be the same individuals as the Executive Directors of the Bank.‡Boards of Directors ‡Executive Directors:. International Development Agency (IDA). . Under the Articles of Agreement of IDA and IFC. Furthermore. International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). or any one of the countries that have elected them.Member countries of the World Bank Group appoint or elect Executive Directors* to the Boards of the International Bank for Reconstruction and Development (IBRD). Executive Directors serving on these Boards are usually the same. Executive Directors and Alternates of the Bank serve ex officio as Executive Directors and Alternates of IDA and IFC. is a member of IFC and IDA. as long as the country that appoints them. ‡While there are four Boards.

The Executive Directors approve the President's contract and have the authority to remove the President from office . The Executive Directors select a President who serves as Chairman of the Boards.Executive Function of the Executive Directors The Executive Directors are responsible for the conduct of the general operations of the Bank and exercise all the powers delegated to them by the Board of Governors under the Articles of Agreement.

MIGA guarantees. Policies that impact the World Bank's general operations .Executive Directors consider and decide the proposals made by the President on:      IBRD loans and guarantees: IDA credits and grants: IFC investments.

The Executive Directors are also responsible for presenting to the Board of Governors. and an annual report on the Bank's operations and policies as well as other matters. an audit of accounts. . an administrative budget. at the Annual Meetings.

and the remaining members elect the other Executive Directors. each of the five members having the largest number of shares appoints an Executive Director. IBRD¶s Board consists of 24 Executive Directors. .Election or Appointment of Executive Directors Under the IBRD Articles of Agreement. five appointed and 19 elected. Presently.

Under the IDA Articles of Agreement and the IFC Articles of Agreement. In practice. the same individuals are chosen to serve on the IBRD Board of Executive Directors and the MIGA Board. . the Executive Directors of IBRD serve ex officio as Executive Directors of IDA and as members of the Board of Directors of IFC. The Multilateral Investment Guarantee Agency (MIGA) has its own separate Board of Directors. All members of the MIGA Board are elected. and are normally concluded at the time of the Annual Meetings. consisting of 24 members. Regular elections of Executive Directors are held every two years.

A country applying for membership in the Fund is required to supply data on its economy.Voting Powers The World Bank and the IMF have adopted a weighted system of voting. . A quota is then assigned. which are compared with data from other member countries whose economies are similar in size. membership in the Bank is open to all members of the IMF. and this determines its voting power in the Fund. According to IBRD Articles of Agreement. equivalent to the country's subscription to the Fund.

Each new member country of the Bank is allotted 250 votes plus one additional vote for each share it holds in the Bank's capital stock. The quota assigned by the Fund is used to determine the number of shares alloted to each new member country of the Bank. .

the United Kingdom (3.42%). China (4. other countries that saw significant gains included Brazil.00%). Most developed countries' voting power was reduced. Under the changes.84%). The countries with most voting power are now the United States (15. known as 'Voice Reform Phase 2'.75%). United States'. South Korea and Mexico.85%). Germany (4. notably China. voting powers at the World Bank were revised to increase the voice of developing countries.In 2010. India.75%). Japan (6. Russia's and Saudi Arabia's voting power was unchanged . and France (3.

Five Executive Directors are appointed by the members with the five largest numbers of shares (currently the United States. and Saudi Arabia each elects its own Executive Director. Germany. China. the Russian Federation. Japan. France and the United Kingdom). The other Executive Directors are elected by the other members .

supersedes the Code of Conduct and Ethics Committee Procedures approved in August 2003.Ethics Matters The Code of Conduct for Board Officials that took effect in November 1. and Advisors to Executive Directors (collectively. Alternate Executive Director Designates. 2007. Alternate Executive Director Post-Designates. ³Board Officials´) in connection with. The Code of Conduct for Board Officials (Code of Conduct) sets forth principles and ethical standards for the Executive Directors. Executive Director Post-Designates. or having a bearing upon. . the President of each of the Organizations. Executive Director Designates. Alternate Executive Directors. Temporary Alternate Executive Directors. their status and responsibilities in the organizations of the World Bank Group. Senior Advisors.

144 .Members The International Bank for Reconstruction and Development (IBRD)187 The International Development Association (IDA)170 The International Finance Corporation (IFC)182 The Multilateral Investment Guarantee Agency (MIGA)175 The International Centre for Settlement of Investment Disputes (ICSID).

Functions Of World Bank:- .

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