Abstract: The World Bank group mainly comprises the International Bank for

Reconstruction and Development (IBRD) and the International Development

Association (IDA), which together form the World Bank. These institutions work
together and complement one anothers activities to achieve their shared goals of
reducing poverty and improving lives. Collaboration by the affiliates is increasing
as the World Bank group works more closely with the private sector. This global
development cooperative is owned by 188 member countries. World Bank works
with its members to achieve equitable and sustainable economic growth in their
national economies and to find solutions to pressing regional and global problems
in economic development and other important areas. Its funding supports
countries efforts to boost economic growth, reduce poverty, and improve the
living conditions of the poor.

Chapter-1: Introduction
Description of the topic:
The Bank uses finance and its experience to help poor and developing countries
eliminating poverty, increasing economic growth, and improving the standard of
life. But at the same time, The World Bank is helping Third World governments
cripple their economies, maul their environments, and oppress their people.
The World Bank is a lending institution that funds necessary infrastructural
requirement to south Asia. South Asia has experienced a long period of robust
economic growth, averaging 6 percent a year. Still, the South Asia region is home
to many of the developing worlds poor. The World Bank Group is a key
development partner in South Asia, with a portfolio of 223 International
Development Association (IDA)/ International Bank of Reconstruction and
Development (IBRD) projects and total commitments of $36 billion as of
September 2012. (Waldorf, 2012)The strategy of World Bank to develop the
condition of south Asia comprises of four pillars: 1) creating more and better jobs
by mitigating constraints on growth; 2) building skills and improve health and
nutrition outcomes; 3) promoting regional cooperation; and 4) strengthening
governance.


Relevance of the topic in current research on similar issue:
Current research on World Bank focuses on how the World Bank ends extreme
poverty, promotes shared prosperity, and achieves sustainable results for
transformational impact.
Developing and underdeveloped countries are getting the benefit of World Banks
mission of fighting poverty. World Bank plays an important supporting role as
developing countries shape and implement their strategies to reduce poverty and
stimulate growth. World Bank assists in the ght against poverty by focusing
many of its investments in sectors that have the most direct effect on living
standards. But the critics say the "shared prosperity" target merely expands the
bank's focus on the world's poorest people rather than shifting it to also tackle
inequalities and growing gaps between rich and poor.
The World Bank is a key development partner in South Asia as it has supported
Government effort of south Asian countries in economic growth, power,
infrastructure, disaster management, human development and ultimately poverty
reduction. The Banks strategy also provides a road map to accelerate growth and
foster human development which would decline the poverty rate in south Asia. In
fiscal year 2012 the World Bank approved 54 projects in this region.
Overview:
This paper presents the pros and cons of various policies of World Bank. And its
role in south Asian countries. This paper also analyses the activity of World Bank
according to theoretical framework toward developing south Asian countries
particularly Bangladesh, India, Pakistan.

Chapter-2: Theoretical Framework:
About World Bank:
The World Bank assists developing countries around the world with financial and
technical assistance. The World Bank is a lending institution that funds necessary
infrastructural requirement worldwide. World Bank as an organization was formed
for investment as well as providing loans. It was established in 1944 during a
conference in Bretton Woods, New Hampshire. The World Bank Group is

headquartered in Washington, D.C. It has more than 10,000 employees in more
than 120 offices worldwide.187 countries are member of this Bank. The name of
the president of World Bank is Robert Zoellick Jim Yong Kim (Anon., 2014)
The World Bank Group has set two goals for the world to achieve by 2030:
1. End extreme poverty by decreasing the percentage of people living on less
than $1.25 a day to no more than 3%
2. Promote shared prosperity
And to achieve these goals World Bank mainly perform two types of task. And
those are:
1. Financial Products and Services: World Bank provides low interest loans,
interest free credits and grants to developing countries for education, health,
public administration, financial and private sector development,
infrastructure, agriculture, communications, and many other purposes.

2. Innovative Knowledge Sharing: World Bank provides assistance to
developing countries with policy advice, research and analysis, and technical
assistance. It supports capacity development in the countries it serves.
The World Bank consists of five organizations:
1. International Bank for Reconstruction and Development (IBRD): It lends to
governments of middle-income and creditworthy low-income countries.
2. International Development Association (IDA): It provides interest-free loans
called credits and grants to governments of the poorest countries.
3. The International Finance Corporation (IFC): It focuses on the private sector and
helps developing countries achieve sustainable growth.
4. The Multilateral Investment Guarantee Agency (MIGA): It promotes foreign
direct investment into developing countries.
5. The International Centre for Settlement of Investment Disputes (ICSID): It
provides international facilities for conciliation and arbitration of investment
disputes. (Anon., 2014)


And Combining these five organization, The World Bank as a group World Bank is:
And a group:
The worlds largest funder of education
A leader in the fight against corruption worldwide
A strong supporter of debt relief
The largest international financier of biodiversity projects
The largest international financier of water supply and sanitation projects
(Anon., 2007)
The policies of the World Bank: The policies of World Bank draw both criticism
and praise. Among all other this article will at first focus on the pros and cons of
four important World Bank policies: structural adjustment policies (SAPs), gender
development policies, foreign direct investment, and Heavily Indebted Poor
Countries (HIPC) Initiative.
Structural Adjustment Policies: Structural Adjustment Policies (SAPs) are
conditions countries must meet in order to obtain World Bank loans. It is the most
controversial policy of World Bank. It has the target of reducing government
budget deficits through decreasing government spending. Among the conditions
are:

Cutbacks, liberalization of the economy and resource
extraction/export-oriented open markets as part of their structural
adjustment.
Minimizing he role of the state
Encouraging privatization as well as reduced protection of domestic
industries.
Other adjustment policies also include currency devaluation, increased
interest rates, flexibility of the labor market, and the elimination of
subsidies such as food subsidies.
The impact of these preconditions on poorer countries can be devastating.
Gender Development Policies: In accordance with the World Banks Operational
Policy statement the goal of its gender development policies is to eliminate
poverty and increase economic growth, human well-being, and development
effectiveness by addressing the gender disparities and inequalities that are
obstacles to development.
Foreign direct investment policies: This policies emphasizes on 4 thematic areas
measuring how foreign companies invest across sectors, start local businesses,
access industrial land, and arbitrate commercial disputes. And this policies
suggest reduction and removal of various regulations and standards to be
attractive to foreign investors.
HIPC:
Poor countries are enabled by HIPC to focus on building the policy and
institutional foundation for sustainable development and poverty reduction. It
reduces, and not just refinances, debt. Poverty reduction is included in HIPC, as
are fiscal and monetary performance, as measurements of a countrys
commitment to reform. (Gina-Marie Cheeseman, 2007)
Role of World Bank in south Asian countries: The percentage of people living on
less than $1.25 a day fell in South Asia from 61% to 36% between 1981 and 2008.
The proportion of poor is lower now in South Asia than any time since 1981. And
to improve the situation the World Bank is working in this region.
The World Bank Group (WBG) is a significant development partner in South Asia,
with a portfolio of 190 IDA/IBRD projects, totaling approximately $37.1 billion in

net commitments. In fiscal year 14, WBG will provide over $2 billion in IBRD
assistance (a five-time increase compared to fiscal year 13) and $7.3 billion in IDA
assistance (nearly 80% increase against fiscal year 13).
The Banks strategy for South Asia was updated in March 2012. The strategy
comprises of four pillars: 1) creating more and better jobs; 2) building skills and
improve health and nutrition outcomes; 3) promoting regional cooperation; and
4) strengthening governance. The Banks strategy also provides a road map to
accelerate growth and foster human development. In fiscal year 2012 the World
Bank approved 54 projects in the region (Anon., 2014)
World Bank does this works to achieve its goal of reducing poverty and increasing
shared prosperity by:
enhancing job sector and accelerating growth;
enhancing human development and social inclusion;
strengthening governance and accountability;
addressing disaster and climate risk; and
increasing regional integration and cooperation.
Achieving Results in south Asian countries
World Bank support has helped South Asia achieve the following results, among
others:
Afghanistan: School enrollment increased from 1 million to 7 million
children;
Bangladesh: Secondary school graduation rate increased from 30% to 39%
from 2008 to 2011 ;
India: 25 million people benefited from rural water supply and sanitation
projects in the past 15 years ;
Nepal: 1.2 million people have improved water supply and 1 million people
supported through Food Crisis Response program ;
Pakistan: 1.9 million micro-credit loans made to communities;

Sri Lanka: 620 km of roads rehabilitated. At the same time, 200,000
households in 1,000 post-conflict villages benefited from
infrastructure/productive investment. (Anon., 2014)

South Asian Countries Development: The policies of the World Bank draw both
criticism and praise. And these have considerable effect on south Asian countries.
First of all World Bank is a bank. So its first goal is to earn profit and get the
benefit. Many of the policies of World Bank were made for the benefit of the
donor countries. And at the same time in many sectors, the Banks policy advice
was sound.
World Bank prescribes that the role of the state is minimized and privatization is
encouraged as well as reduced protection of domestic industries. (Shah, 2013)
World Bank in south Asian countries, focuses on sustainable private sector
development by providing financing, enabling a better business environment, and
promoting the competitiveness of small and medium enterprises. In Bangladesh
The World Bank, together with UK-DFID and IFC, is supporting the Government to
develop Economic Zones through the Private Sector Development Support Project
(PSDSP) From total loan of World Bank approved to Bangladesh, 6% of it is used in
private sector development. And it aims to facilitate investment in growth centers
in the emerging manufacturing and services sectors of the economy, with a view
to generating employment. And as a result of World Bank investment US$10
million generated in direct investment in the economic zones by zone developers
in new zones, at the same time 2,000 new jobs created, 30% for women.

Financing in Bangladesh (US$m)
Financier Financing
IDA Credit 42.8
GOB
DFID 17.4
Total Cost 60.2
Pakistans ranking in Doing Business has declined from 76 to 110 out of 185
economies over the past five years and at the same time, state owned enterprises
are not performing well. In this situation, SMEs are key features of Pakistans

economic landscape. 1.9 million micro-credit loans made to communities by
World Bank. Collectively, SMEs in Pakistan provide about 78 percent of non-
agricultural employment, con-tribute almost 40 percent of GDP, and account for
some 30 percent of manufacturing exports. (Anon., 2014)
In India, from total $22.7 billion loan of World Bank 3% of it is used in private
sector development. World Banks efforts to expand state-level partnership
programs with Rajasthan, Odisha, and other states where IFC serves as advisor to
the government to improve the investment climate, and to simplify and
modernize tax regimes. Overall, IFC has helped generate $309 million of private
sector investment in FY2011-13 through investment climate programs with state
governments. Growth is largely depend on fostering private sector development
and private investment and the World Bank is creating a suitable environment
developing private sector. (Anon., 2013)
World Bank is raising poor peoples ability to participate more fully in the growth
process, through access to better quality education, health, safe water, and
nutrition. To improve the quality and relevance of the teaching and research
environment in higher education institutions World Bank is providing total
$206million to Bangladesh and for primary education development World Bank is
financing 300 million dollar. WB also has financed 358.9million dollar to enable
the government of Bangladesh (Gob) to strengthen health systems and
improve health services, particularly for the poor. At the same time World Bank
also assists Indias efforts to improve access, equity, and quality of education at
the primary, secondary, and tertiary levels remains a work in progress. And in
Pakistan WB is running Baluchistan Education Support Project, Second Sindh
Education Project, Punjab Education Sector Project, and tertiary Education
Support Project .By these The World Bank provides significant backing to
education to raise standards and enrollment, particularly of girls and the children
of poor families in the south Asian countries.
World Bank in south Asia works in areas that are important for the south Asian
countries economy, such as agriculture, infrastructure, financial markets, and
energy efficiency. World Bank provided with a loan of $467 million (of which
financial institutions 56 percent, telecom 30 percent, agribusiness four percent,
and textiles three percent). And in India World Bank provided with a loan of $22.7

billion (of which agriculture and rural development 19%, urban development 4%,
financial development 3%, energy 16 %). And eliminating extreme poverty and
boosting shared prosperity in the future will require coordinated multi-sector
action to increase agricultural productivity, promote more jobs in the
manufacturing and service sectors, and improve targeting and efficiency of safety
net programs. And by investing on these sector (agriculture, infrastructure,
financial markets, rural and urban development) World Bank is paving a way for
development in this south Asian region.

World Bank for South Asian political development: Joseph Stiglitz said, In
theory, the fund supports democratic institutions in the nations it assists. In
practice, it undermines the democratic process by imposing policies. Officially, of
course, the IMF doesnt impose anything. It negotiates the conditions for
receiving aid. But all the power in the negotiations is on one sidethe IMFsand
the fund rarely allows sufficient time for broad consensus-building or even
widespread consultations with either parliaments or civil society. Sometimes the
IMF dispenses with the pretense of openness altogether and negotiates secret
covenants. (Stiglitz, 2000)
The World Bank's goal in its early years was to encourage development. Now, the
bank exists largely to maximize the transfer of resources to Third World
governments like south Asian countries. And by so doing, the bank has greatly
promoted the nationalization of Third World economies and has increased
political and bureaucratic control over the lives of the poorest of the poor.
According to the World Banks Operational Policy statement the main objective of
its gender development policies is to address the gender disparities and
inequalities that are barriers to development. In south Asia, Womens political
empowerment is a prerequisite for sustainable development, at the same time it
is about rights and equitable societies. In south Asian countries, World Bank is
putting the condition of changing the political condition on these countries. In
accordance with the policy of WB, in Bangladesh women are encouraged to join
political party. At the same time important position of political parties are now
given to women so that they can create policy which benefit women most. In
India women empowerment is also seen. Indian political parties ensure that
women are included in all of the partys policies. At the same time Provide

information to voters that include specific messages highlighting the importance
of womens votes and womens right to vote as equal members of society. (Anon.,
2012) The political representation of women in Pakistan is higher than India, Sri
Lanka and Iran. Pakistan is listed as 45th in the Inter-Parliamentary Unions (IPU)
list of women in national parliaments and stood ahead of several developed
democracies, including Canada, the UK and the US.
The Bank Group has identied corruption as the single greatest obstacle to
economic and social development in South Asian countries. Fighting corruption
has become a policy priority for the development community in this region over
the past two decades and extensive reform efforts have been launched. The Bank
would make every effort to prevent fraud and corruption in the projects and
programs it finances. In Bangladesh World Banks Grant. Improves government
auditing. And TA. Assist Controller and Auditor General to develop ability to
conduct project audits. In India WB Grant. Upgrade institutional capacity of
Auditor General of India. In Pakistan WB Grant. Strengthen institutional capacity
of the Ministry of Finances Internal Auditing Department and runs Institutional
Reform Project. (Anon., 2000)
Among the total loan ($4.5 billion) of World Bank provided in south Asian
countries, 23% of it is lent on Public Administration, Law, and Justice Sector of
south Asia. (Anon., 2013) World Bank also support government of south Asian
countries to address both sectorial governance concerns and issues, such as
improving government capacity, promoting government at the local level, tackling
corruption, enhancing access to justice for poor people, and improving security
and public order.
Local institutions in south Asian countries have traditionally played a minimal role
in proving services, due to limited responsibilities and a lack of adequate
resources and staff. Government services are often delivered in a top-down
manner, with little accountability to local communities. World Bank is providing
credit to south Asian countries to strengthen local governance to become
accountable and responsive, supported by an efficient and transparent
intergovernmental fiscal system. And by this way World Bank is contributing to
political development.

Conclusion and recommendation: Economic growth in South Asia is rapid by
world standards, but the economies are still not vigorous enough to address the
needs of the poor who live in the region. Since many development agencies are
active in assisting South Asian countries with institution-building, public

management, and governance, World Bank is placing strong emphasis on low-
income, rural, and fragile regions while building infrastructure and assisting
public-private-partnerships and donor coordination, especially at the country
level. The aim is to agree on common approaches and to ensure that WB draws
on each others strengths to deliver the best possible support to its clients in
South Asia. With 35 projects approved in fiscal 2013 for various purpose and
achieved different result from these. South Asia has a young population and the
lowest female labor force participation rate in the world and WB is trying to
create adequate employment opportunity. At the same time, The Bank worked on
many fronts to enhance human development in South Asia. Most importantly,
The Bank is building the capacity of legislative bodies and supreme audit
institutions in their budget oversight roles. It is also helping to implement e-
procurement systems, improve the delivery of public services, and craft right-to-
information regulations. The Bank is working with governments to provide more
irrigation and drainage services; reforest land that had been logged; and increase
resilience to extreme weather events, natural disasters, and climate change.
Finally The World Bank is progressing rapidly toward its goal of reducing poverty.
The percentage of extremely poor population is reduced from 47.9(in 1990) to
35.5(2014). So with the assistance of World Bank the life of the people of this
region is getting better day by day. Among all these positive side structural policy
of World Bank is mostly criticized. World Bank mainly put condition on eligibility
on loan keeping in mind their structural condition. But there is lot of difference
(political condition, financial, etc.) between the third world countries and
developed countries. And most of the time, the conditions are made by World
Bank keeping in mind the befit of donor countries. So, this policy should be
reorganized. And then the World Bank can achieve its goal of eliminating poverty
and promote shared prosperity. (Shah, 2001)











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