WORLD BANK

PRESENTED BY
:VAISHALI SHARMA
LECTURER MBA-IBE
It is the vision of the World Bank
Group to contribute to an inclusive
and sustainable globalization - to
overcome poverty, enhance growth
with care for the environment, and
create individual opportunity and
hope.“

Robert B. Zoellick, President

About
 The World Bank is a vital source of financial and technical
assistance to developing countries around the world. We are not a
bank in the common sense.

 WB are made up of two unique development institutions owned by
186 member countries—the International Bank for Reconstruction
and Development (IBRD) and the International Development
Association (IDA).

 Each institution plays a different but collaborative role to advance the
vision of an inclusive and sustainable globalization.

 The IBRD focuses on middle income and creditworthy poor
countries, while IDA focuses on the poorest countries in
the world.


 Provide low-interest loans, interest-free credits and grants to

developing countries for a wide array of purposes that
include investments in education, health, public
administration, infrastructure, financial and private sector
development, agriculture, and environmental and natural
resource management.

World Bank : to reduce global
poverty
 The Bank 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.


 Our mission is to help developing countries and their people

reach the goals by working with our partners to alleviate
poverty. We address global challenges in ways that
advance an inclusive and sustainable globalization—that
overcome poverty, enhance growth with care for the
environment, and create individual opportunity and hope.
 Six Strategic themes drive  To the poorest countries
our efforts. By focusing 
on these strategic  Fragile states and
themes, the Bank 
delivers technical,
financial and other  The Arab world
assistance to those most 
in need and where it can  To middle-income countries
have the greatest impact 
and promote growth:  To solving global public
goods issues

 To delivering knowledge
and learning services.
Total member countries in each institution  

The International Bank for Reconstruction and Development  186
(IBRD)

The International Development Association (IDA) 169

The International Finance Corporation (IFC) 182

The Multilateral Investment Guarantee Agency (MIGA) 175

The International Centre for Settlement of Investment  144
Disputes (ICSID)
 The World Bank is like a cooperative, where its 186
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.


 Because the governors only meet annually, they
delegate specific duties to 24 Executive Directors, who
work on-site at the Bank. The five largest shareholders,
France, Germany, Japan, the United Kingdom and the
United States appoint an executive director, while other
member countries are represented by 19 executive
directors.

 The President of the World Bank, Robert B. Zoellick, chairs
meetings of the Boards of Directors and is responsible for
overall management of the Bank. By tradition, the Bank
president is a U.S. national and is nominated by the United
States, the Bank's largest shareholder. The President is
elected by the Board of Governors for a five-year, renewable
term.

 The Executive Directors make up the Boards of Directors of

the World Bank. They normally meet at least twice a week to
oversee the Bank's business, including approval of loans and
guarantees, new policies, the administrative budget, country
assistance strategies and borrowing and financial decisions.

 The World Bank operates day-to-day under the leadership and
direction of the president, management and senior staff, and
the vice presidents in charge of regions, sectors, networks
and functions.

President of the World
Bank
 On July 1, 2007, Robert
B. Zoellick became the
11th President of the
World Bank Group,
which works with 185
member countries.
FUNCTIONS
 To assist in the reconstruction and development of
territories of its members by facilitating the
investment of capital for productive purpose & the
encouragement of the development of productive
facilities and resources in developing countries.


 To promote private foreign investment by means of
guarantees on participation in loans and other
investment made by private investors , when capital
is not available on reasonable terms, to supplement
private investment by providing finance for
productive purpose out of its own resources or from
borrowed funds.
 To promote the long-range balanced growth of
international trade and the maintenance or
equilibrium in the BOP (balance of payment) of
member countries by encouraging international
investment for the development of their productive
resources, thereby assisting in raising productivity ,
the standard of living & conditions of workers in their
territories.

 To arrange the loans of guarantees by it in relation to
international loans through other channels so that
more useful & urgent small & large projects are dealt
with first.
Memberships
 Any country can join as a member of the IBRD by
signing in the charter of the Bank as its subscriber .
Bank can suspend any member , if the country
concerned fails to discharge its responsibilities to the
IBRD . The members of the IMF are also the
members of the WB . The membership of the Bank
as on Jan 31, 2009 186.

 The member country has to pay all the dues and also
its share of losses , if it resigns.
 Lynn 11 Dona 16 Jane 24
WORLD BANK
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WORLD BANK GROUP

 W ORLD BAN K GROUP

WORLD BANK
•The World Bank is one of the world’s largest
sources of funding for the developing world.
•Its primary focus is on helping the poorest people
and the poorest countries.
•It uses its financial resources, its staff, and
extensive experience to help developing countries,
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reduce poverty, increase Dona 16
economic Jane
growth, 24
and
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improve their quality of life.
 WORLD BANK GROUP
CONSISTS OF FIVE ORGANIZATIONS
• The
WORLD BANK
International Bank for Reconstruction and
Development (IBRD)
• The International Development Association (IDA)
• The International Finance Corporation (IFC)
• The Multilateral Investment Guarantee Agency (MIGA)
• The International Centre for the Settlement of Investment
Disputes (ICSID).
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 W ORLD BAN K GROUP
Headquarters: Washingt on, DC and m ore t han 100

WORLD BANK
offices around the world.
Established: July 1, 1944 by a conference of 44
governments in Bretton Woods, New Hampshire, USA
Membership: 185 countries
Staff: Approximately 7,000 employees in Washington,
DC and over 3,000 in offices around the world.

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 THE MILLENNIUM DEVELOPMENT
GOALS

Goal 1: End extreme poverty and hunger.

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Goal 2: Achieve universal primary education
Goal 3: Empower women and promote equality between
women and men
Goal 4: Improve health of pregnant women and mothers;
Goal 5: Reduce child death rates
Goal 6: Ensure environmental sustainability
Goal 7: Create a global partnership for development, with
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targets for aid, trade and debt relief.
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Goal 8: Tackle HIV/AIDS, Malaria, and other diseases
 WHO RUNS THE WORLD BANK?

•They run like a cooperative, with their member countries as

WORLD BANK
share holders. The no. of shares a country has is based on the
size of the economy.
•Largest Share holder: United State (16.41% of votes)
•Followed by: Japan (7.87% ),
Germany (4.49%),
The United Kingdom (4.31%) &
France (4.31%) .
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The rest of the shares are divided among the other member
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countries
 WHO RUNS THE WORLD BANK?

Ultimate Decision-Making Authority: Their

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government represented by Board of Governors. These governors are
ministers, such as Ministers of Finance or Ministers of Development.

Day-To-Day Decision Making: Governors meet only once

in a year. They give specific duties to their Executive Directors, who work
on-site at the Bank.
The 24 Executive Directors make up the Board of Directors.
Their President is, by tradition, a national of the largest shareholders
- The United States. Lynn 11 Dona 16 Jane 24
Elected for a five-year termJoanna
(which can 28 Shelley17 Rric27
be renewed)
 FIVE AGENCIES – ONE GROUP

WORLD BANK

IBRD IDA IFC M.I.G.A ICSID

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 INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT

•The International Bank for Reconstruction and

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Development (IBRD) provides loans and development
assistance to middle income countries in Latin
America, Asia, Africa and Eastern Europe.
•IBRD gets most of its funds by selling bonds in
international capital markets.

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 INTERNATIONAL DEVELOPMENT
ASSOCIATION

The International Development Association (IDA) plays an important role in

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our mission to reduce poverty.

Its support is focused on the poorest countries, to which it provides interest-

free loans and grants.
IDA depends on contributions from its wealthier member countries (including
some developing countries) for most of its financial resources.

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INTERNATIONAL FINANCE CORPORATION

The International Finance Corporation (IFC) promotes growth in the

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developing world by financing private-sector investments and
providing technical support and advice to governments and
businesses.

In partnership with private investors, IFC provides loans and equity

finance for business ventures in developing countries.

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 MULTILATERAL INVESTMENT
GUARANTEE AGENCY
The Multilateral Investment Guarantee Agency (MIGA) encourages

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foreign investment in developing countries by providing guarantees
to foreign investors against loss caused by noncommercial risks.

MIGA also provides technical support to help developing countries

promote investment opportunities and uses its legal services to
reduce possible barriers to investment.

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 INTERNATIONAL CENTRE FOR THE
SETTLEMENT OF INVESTMENT DISPUTES
The International Centre for the Settlement of
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Investment Disputes (ICSID) provides facilities
for settling investment disputes between foreign
investors and their host countries.

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 Fund Generation

World bank gets its main income by lending out its own
capital.
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IBRD (our main lending agency) raises most of its money in
the world’s financial markets by selling our AAA-rated World
Bank bonds— usually to financial institutions, pension funds
and other institutional money managers, as well as to central
banks.

They earn interest and fee income on our loans, and income
on our liquid asset investments and capital that is paid in by
our member country shareholders.
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IDA also helps mobilize and 11 aid
coordinate Dona 16 Jane 24
from donor
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countries and other international 28 Shelley17 Rric27
organizations.
 Fund Generation

MIGA is capitalized by its member countries and receives

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operating capital from the World Bank.
The agency also charges fees for some of its services.

IFC provides a mix of financing (loans, equity finance, risk

management products, and intermediary finance, among
others) for each of its projects.
However, most of its funding, comes from private sector
owners.
IFC operates on a commercial basis. It invests only in for-profit
projects and charges market rates for its products and
services.
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WHERE DOES THEIR MONEY GO?

IBRD LOANS GUARENTEES

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IDA CREDITS INVESTMENTS

TRUST FUND GRANTS

PROJECT FINANCE

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WORLD BANK
THANQ!

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