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, well-

managed 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. We are the world’s largest external funder of
education
2. We are one of the largest external funder in the
fight against HIV/AIDS
3. We are leader in the fight against corruption
worldwide
4. We strongly support debt relief to the poorest and
most heavily indebted countries.
5. We are one of the largest international funder of
biodiversity projects
10 Good Things About World Bank

6. We work in partnership more than ever

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