By

Pooja adhikari (A01)

Mayuri Bhogle (A12)
Rachna Kukreja (A52)
 What Is the World Bank?
• 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.
• Jim Yong Kim is currently the president of the world bank.
• Currently, the membership of the world bank is given to 189 countries
under IBRD and 173 countries under IDA.
• Organizations like MIGA, IFC, and ICSID manages the World bank
• Also, the world has it’s headquarters situated in Washington DC and has
more than 10000 staff all over the world.
• So, the formation of world bank was done Bretton Woods committee that
was held in 1944.
• Alongside the IMF, it was launched in the presence of many important
delegates.
 Why it came into existence?
• The World Bank was created at the end of World War II as a result
of many European and Asian countries needing financing to fund
reconstruction efforts.
• The bank is succesful in providing financing for those devastated
(destroyed ) countries.
 Progress
• The new bank received most of its funds from the New York
Investment community
• The bank made its first, general reconstruction loans to France
($250 million – largest ever) the Netherlands, Denmark, and
Luxembourg in 1947.
• The bank’s first bond offering abroad, worth £5 million, came in
London in 1951.
• China used IDA loans for agriculture and education projects while oil
wells were financed with IBRD loans.
• It helped resolve the Indus water dispute between India and
Pakistan.
 World Bank Top Borrowers
• Mexico
• Brazil
• Turkey
• Pakistan
• China
• India
• Argentina
The main objectives of the World Bank are:

• Reconstruction and Development

• Encouragement to Capital Investment
• Encouragement to International Trade
• Establishment of Peace Time Economy
• Environmental Protection
• Maintenance of equilibrium in balance of payment
 Functions
At Present, the World Bank is playing an important role in providing loans
for development works to member countries, especially to
underdeveloped countries.
• Bank can grant loans to members countries up to 20 % of its share in paid-
up capital.
• Bank also provides loans to private investors belonging to the members on
its own guarantee, but private investors need to take permission of its
native country. Banks charge 1% to 2% as service charges.
• The quantum of loan service, interest rate, terms and conditions are
decided by the World Bank itself.
• Generally banks grant loans for a particular project duly submitted to the
bank by the member country.
• The debtor nation has to repay either in reserve currencies or in the
currencies in which the loan was sanctioned.
 Where Does The World Bank Get Its Money From?

• The initial authorized capital of World Bank was

$10,000 million, which was divided into one lakh
shares of $ 1 each.
• The authorized capital of the World Bank has
increased from $ 24 bn to $27 bn.
• Members of the countries repay the share of the
World Bank in the following way:
i. Only 2% of the allotted share are repaid in gold, US
dollar or SDR.
ii. Every member country is free to repay 18% of its
capital share in its own currency.
iii. The remaining 80% is deposited by the member
country on demand by the World Bank.
 Timeline
World bank’s Landmark Projects in India’s Development.

• 1940-1950 • India became one of the founding members of the World

Bank.
• India took its First World Bank Loan for the development
of Indian Railways.

• 1950-1960 • Assisted in procuring the foreign exchange needed to set

up its first power and steel plants.
• Supported Air India, the national airline, to expand and
modernize its fleet.

• Provided Assistance to set the stage for its landmark Green

• 1960-1970
Revolution
• Setting Stage for Capital Goods Industries

• 1970-1980
• White Revolution-Business Model of Milk Cooperatives.
1980-1990 • Supported the development of oil and gas extraction
facilities.
• Supported the development of India’s largest container
port.

1990-2000 • Build institutions for managing critical sectors of a newly

globalizing economy
• PowerGrid and National Highway Authority of India.

• Supported Education For All

2000-2010
• Relief Measures undertaken during 2001 Earthquake.

•  Supporting Clean Energy Projects

• Assisted in Rejuvenating the iconic Ganga River
2010-2020
• Engaged in construction of India’s first electrified rail
freight corridor.
 World Bank Response to Covid-19 in
India
• The Bank partnered with GOI to support India’s immediate health
needs
• Program to help the poor and vulnerable communities deeply
affected by the pandemic.
• Economic stabilization and included a Bank-supported project for
medium small and micro enterprises (MSMEs)
• By the end of June 2020, the World Bank approved $2.75 billion in
emergency lending to support India’s response to the COVID-19
crisis. Watch the video to know more on World Bank’s support to
India’s response.