ACM – 903TERM PAPER

PRESENTATION ON

WORLD BANK

CONTENTSINTRODUCTIONWORLD BANKWORLD BANK GROUP INTERNATIONAL BANK FOR

RECONSTRUCTION & DEVELOPMENT (IBRD) INTERNATIONAL DEVELOPMENT

ASSOCIATION(IDA) INTERNATIONAL FINANCIAL CORPORATION

(ICA) MULTILATERAL INVESTMENT GUARANTEE

AGENCY (MIGA) INTERNATIONAL CENTRE FOR SETTLEMENT

OF INVESTMENT DISPUTES (ICSID)• CONCLUSION

INTRODUCTIONIn response to post-war reconstruction and to discuss the future of international economic cooperation In July of 1944, representatives from 44 countries met at Bretton Woods, New Hampshire. Creation of two institutions: International Monetary Fund (IMF)

World Bank

World Bank Motto Working for a World Free of Poverty

Formation July 1944; 72 years ago

Legal Status Monetary International Financial Organization

Type Treaty

Purpose Crediting

Head Quarter Washington, D.C., U.S.

Membership 189 countries (IBRD) 173 countries (IDA)

Key People Jim Yong Kim, president

Parental Organization World Bank Group

Website worldbank.org

Objectives of World BankTo help the member countries by providing long term

capital for economic reconstruction and development.To introduce long term capital investment for assuring

balance of payment equilibrium and balanced development of international trade.

To promote private foreign investments.To provide guarantee for loans granted for small and

large units and projects of member countries. To help the economies of those countries who

destroyed by war.Provide technical services to member countries.End extreme poverty by decreasing the percentage of

people living less than $1.9in a day to not then 3% of world population till 2030.

To promote shared prosperity for fostering income group of the bottom of 40% of every country.

Functions of World Bank

To assist in the construction and develop ment of the territories of its members by facilitating investment of capital for productive purposes, including the ‘restoration of economies destroyed or disrupted by war’, and the encouragement of the “development” of productive facilities and resources in less developed countries.

To promote private investment and long run balanced growth of international trade and BOP equilibrium by means of guarantees or partici pation in international loans and investments.

To arrange loans made or guaranteed by it. so that more useful and urgent projects receive preference.

To provide finance to projects from its own capital, funds raised by it and by participating with other members.

Organization structure of World Bank

World Bank lending by theme and sector: fiscal 2012–16 (millions of dollars)

FY12 FY13 FY14 FY15 FY160

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

35,33531,547

40,843 42,49545,900

Total World Bank Lending (IBRD + IDA)MILLIONS OF DOLLARS

Total World Bank Lending (IBRD + IDA)

world bank annual report 2016

Sector FY12 FY 13 FY 14 FY15 FY16Agriculture, Fishing, and Forestry

1163 851 801 797 547

Education 1296 1065 1123 1477 1754Energy and Mining 2,848 1,208 2,356 3,150 4,557Finance 1,410 1,609 1,293 3,404 2,634Health and Other Social Services

2,489 1,822 1,598 2,949 2,399

Industry and Trade 713 747 1,054 1,653 3,426Information and Communications

94 102 262 77 186

Public Administration, Law, Justice

5,381 4,405 4,806 4,318 5,775

Transportation 3,379 2,600 4,032 3,086 4,330Water, Sanitation, Flood Protection

1,807 840 1,279 2,616 4,121

Sector Total 20,582 15,249 18,604 23,528 29,729

World Bank groupThe 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 Settlement of Investment Disputes(ICSID)

IBRDThe International Bank for

Reconstruction and Development was created in 1944 to help Europe rebuild after World War II.

It works closely with the rest of the World Bank Group to help developing countries reduce poverty, promote economic growth, and build prosperity.

IBRD is owned by the governments of its 189 member countries, which are represented by a 25-member board of 5 appointed and 20 elected Executive Directors.

IBRD’s Services IBRD finances projects across all sectors and provides

technical support and expertise at various stages of a project.

IBRD’s financial products and services help countries build resilience to shocks by facilitating access to products that mitigate the negative impact of currency, interest rate, and commodity price volatility, natural disasters and extreme weather.

Unlike commercial lending, IBRD’s financing not only supplies borrowing countries with needed financing, but also serves as a vehicle for global knowledge transfer and technical assistance.

Advisory services in public debt and asset management help governments, official sector institutions, and development organizations build institutional capacity to protect and expand financial resources.

IBRD supports government efforts to strengthen not only public financial management, but to also improve the investment climate, address service delivery bottlenecks, and other policy and institutional actions

How IBRD Is Financed IBRD raises most of its funds in the world's financial

markets. In fact, in these markets. This practice has allowed IBRD to provide more than $500

billion in loans to alleviate poverty around the world since 1946, with its shareholder governments paying in about $14 billion in capital.

IBRD has maintained a triple-A rating since 1959. Its high credit rating allows it to borrow at low cost and offer middle-income developing countries access to capital on favorable terms -- in larger volumes, with longer maturities, and in a more sustainable manner than world financial markets typically provide.

IBRD earns income every year from the return on its equity and from the small margin it makes on lending. This pays for IBRD's operating expenses, goes into reserves to strengthen the balance sheet, and provides an annual transfer of funds to IDA, the fund for the poorest countries.

  Formation 1960

Legal Status Treaty

Type Development finance institution

Purpose Development assistance, Poverty reduction

Head Quarter Washington, D.C

Membership 173 countries

Parental Organization

World Bank Group

Website worldbank.org/ida

ObjectivesTo provide development finance

on easy terms to less developed member countries.

To promote economic development, increase productivity and thus, raise the standards of living in the underdeveloped areas

RESOURCESsubscription and contributionIBRD also supplements the resources of

IDA.The representatives of the donor nations

meet every three years to replenish IDA fund and review policies.

A notable feature in this context is that the representative of borrower countries are also invited to take part in the replenishment negotiations .The United States, Japan, Germany, the United Kingdom and France are the major donor countries of IDA

DEVELOPMENT OF RESOURCES

Relative poverty ,defined as GNI per capita below an established threshold(USD 1095 in fiscal year 2009)

Lack of creditworthiness to borrow on market terms and therefore a need for concessional resources to finance the country’s development programme.

Good policy performance, defined as the implementation of economic and social policies that promote growth and poverty reduction.

IDA assists three categories of countries.

The countries that are the earth’s poorest

The countries that are above the operational poverty cut-off but lack the creditworthiness needed to borrow from IBRD and other agencies

The countries that are eligible to seek assistance from IDA based on their per capita income levels but also creditworthy for borrowing from IBRD and other agencies. They are referred to as “blend” countries.

Loans The member countries with per capita income of less than US $694 at 1990 prices are eligible to borrow from IDA. IDA grants loans to those projects which are not financed by IBRD.IDA observe the following criteria in approving the projects:

Poverty criterion

Performance criterion

Condition of Loans

Financial year2015 Top 5 Borrowers of IDA

Bangladesh India Ethiopia Pakistan Kenya0

500

1000

1500

2000

2500

19241687

1395 1351 1305

FY15 Top 5 Borrowers of IDA

million usd

world bank.org

IDA BY FISCAL YEAR, MILLIONS OF DOLLARS

2012 2013 2014 2015 20160

5,000

10,000

15,000

20,000

25,000

14,75316,298

22,239

18,996

16,171

11,061 11,228

13,432 12,905 13,191

Commit-ments

Dis-bursements

Formation July 20, 1956Type Development finance

institutionLegal status Treaty

Purpose Private sector development, poverty reduction

Headquarters Washington, D.C.

Membership 184 countries

Executive Vice President & CEO

Philippe Le Houérou

Parent organization World Bank Group

Website ifc.org

ObjectivesTo invest in productive private enterprises,

in association with private investors, and without government guarantee of repayment, in cases where sufficient private capital is not available on reasonable terms.

To serve as a clearing house to bring together investment opportunities, private capital (both foreign and domestic) and experienced management.

To help in stimulating the productive investment of private capital, both domestic and foreign.

Working The IFC considers only such investment proposals whose

objective is the establishment, expansion or improvement of productive private enterprises which will contribute to the development of the economy of the country concerned. Industrial, agricultural, financial, commercial, and other private enterprises are eligible for IFC financing, provided their operations are productive in character.

The IFC is authorized to invest its funds in many forms it deems appropriate, with the exception of capital stocks and shares. It does not have a policy of uniform interest rates for its investments. The interest rate is to be negotiated in each case in the light of all relevant factors, including the risks involved and any right to participation in profits, etc.

IFC makes investments only when it is satisfied that the enterprise has or will have experience and competent management and it looks to that management to conduct the business of the enterprise. It does not itself assume responsibility of managing the enterprise.

2012 2013 2014 2015 20160

2,000

4,000

6,000

8,000

10,000

12,000

9,241

11,0089,967

10,53911,117

7,981

9,971

8,9049,264

9,953

IFC BY FISCAL YEARs

commit-mmentds

disbus-rement

worldbank.org

MIL

LIO

NS

OF

DO

LLAR

S

Region wise Disbursements of IFC

Formation 1988

Type Development finance institution

Legal status Treaty

Purpose Political risk insurance, foreign direct investment

Headquarters Washington, D.C.

Membership 181 countries

Executive Vice President Keiko Honda

Objectives

To promote Foreign Direct Investment (FDI) into developing countries

To help support economic growth, reduce poverty and improve people’s lives.

Membership and Capital

Membership in the Agency is open to all members of the Bank and to Switzerland. There is, however, no obligation for Bank members to join the Agency. The Convention recognizes the importance attached to participation by both capital-exporting and capital-importing members particularly in the provisions for its entry into force and for voting. At present 173 countries are members.

MIGA’s Added Value ServicesConfidence, Security and

CredibilityMarket LeaderComplex DealPRI Market

MIGA’s Development Impact and PrioritiesSince its inception in 1988, MIGA

has issued nearly 900 guarantees worth more than $17.4 billion for projects in 96 developing countries.

MIGAS INSURANCE BY FISCAL YEAR

2012 2013 2014 2015 20160

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2,657 2,781

3,1552,828

4,258

Gross issurance

Gross is-suance

worldbank.org

USD

MIL

LIO

N

Formation 1965

Type Dispute resolution organization

Legal status Treaty

Purpose International arbitration

Headquarters Washington, D.C.

Membership 161 countries(signatory and contracting states)153 countries(contracting states only)

Secretary-General

Meg Kinnear

Parent organization

World Bank Group

objectivesThe primary purpose of ICSID is

to provide facilities for conciliation and arbitration of international investment disputes.

ICSID ActivitiesPursuant to the Convention,

ICSID provides facilities for the conciliation and arbitration of disputes between member countries and investors who qualify as nationals of other member countries. Recourse to ICSID conciliation and arbitration is entirely voluntary.

Dispute Settlements Facilities

(a) ICSID Conventi

on, Regulations and Rules

(b)ICSID Additiona

l Facili

ty Rule

s

(c)Other

Dispute

Settlement

Activities of the

Centre

Institutional ArrangementsPermanent Court of Arbitration at The Hague;Regional Arbitration Centers of the Asian-African Legal Consultative Committee at Cairo, at Kuala Lumpur and at Lagos;Australian Commercial Disputes Centre at Sydney;Australian Centre for International Commercial Arbitration at Melbourne;

Singapore International Arbitration Centre;

Gulf Cooperation Council Commercial Arbitration Centre at Bahrain;

German Institution of Arbitration

Poverty reduction (Extreme poverty (% population below $1.90 a day, 2011 PPP))

AFRICA

EAST

ASIA &PA

CIFIC

EUROPE

&CENTR

AL ASIA

LATIN

AMERICA & CARRIBEA

N

MIDDLE EA

ST &NORTH

AFRICA

SOUTH

ASIA0

10

20

30

40

50

60 57.1

29.2

6.2

13.2

4.17

40.846.1

11.2

2.86.5

3.3

27.2

42.7

7.22.1

5.62.7

18.8 200020102015

Region wise committeements of world bank

Europe & central

Asia

Latin America & Caribbean

Sub Sahara African

Middle east & north Africa

South Asia East Asia & the pacific

total0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

93467500 7272 8218

52018363

45900

20% 16% 16% 18% 11% 19% 10000%

TOTALSHARE%

World bank commitments to india

1 2 3 4 50

1000

2000

3000

4000

5000

6000

3184

1334

5216

3848 3845

amount usd

amount usd

In recent years, World Bank operations have supported clients to

Reach 14.9 million people, and micro-, small, and medium enterprises with financial services

  Provide 2.0 million hectares of land with irrigation services Construct or rehabilitate 113,600 kilometers of roads Generate 4,287 megawatts’ capacity of conventional energy

and 2,461 megawatts’ capacity of renewable energy Recruit or train 6.6 million teachers Provide 377 million people with essential health, nutrition,

and population services Cover 32.7 million beneficiaries by social safety net

programs Provide 42.2 million people with access to an improved water

source Provide 16.6 million people with access to improved

sanitation facilities Reduce 588 million tons of CO2 equivalent emissions

annually with the support of special climate instruments Support 36 countries in institutionalizing disaster risk

reduction as a national priority

CONCLUSIONWorld Bank is an organization which

is working for welfare at global level, its objective is to poverty reduction and shared prosperity in present time and it is succeeded in achieving its objective in reducing poverty in different regions of world. The different institute of World Bank also trying to achieving their objectives helping peoples in different ways.