World bank

MEANING AND FUNCTIONS

1. WORLD BANK
BY
DR. JYOTI KHARE
ASSOCIATE PROFESSOR
GOVT. P. G. COLLEGE
MALDEVTA, RAIPUR
DEHRADUN,

2. WORLD BANK
After II WORLD BANK-
•the formation of world bank was done Bretton Woods committee that was held in 1944
•The World Bank (WB) was originally created as the International Bank for Reconstruction and Development
(IBRD) in 1944 along with its twin, the IMF.
•In early 1946 this international bank launched its carrier as the multilateral development bank and since then
the IBRD came to be known as the World Bank.
•Not a bank , it is a group of two bank-IBRD & IDA
•Now this is group of 5 banks –IBRD, IDA, IFC, MICA, ICSID
•The World Bank's most recent stated goal is thereduction of poverty.
•INDIA is the founder member of world bank
•1958 –India Club Consortium-help to take the loan from WB .
•1994 –BHARAT VIKAS MANCH

3. BRITTEN WOODS TWINS SISTER -
(WORLD BANK & IMF)
Motto Working for a World Free of Poverty
Formation July1944; 75years ago
Type Monetary International Financial Organization
Legal status Treaty
Headquarters 1818 H Street NW,Washington, D.C.,U.S.
Membership 189 countries (IBRD)
173 countries (IDA)
Key people •David Malpass
(President)
•AnshulaKant
(MDandCFO)
•Penny Goldberg
(Chief Economist)
Parent organization World Bank GrouP
Founders: John Maynard Keynes,Harry Dexter White

4. OBJECTIVES
•Infrastructural Build up
•economic development and reconstruction.
•inducing long term capital
•improving the balance of payments(growth of international trade)
•Alleviation of poverty
•Establishment of projects in backward areas
•Helps special area development programmes
•Lends for product purposesthereby stimulating economic growth in developing countries.

5. NEED OF WORLD BANK
(1) Investing in people, particularly through
basic health and education;
(ii) Focusing on social development, gover-
nance and institution-building as the major
elements of poverty alleviation;
(iii) Strengthening the ability of the govern-
ments to deliver quality services with greater
efficiency and i) transparency;
(iv) Protecting the environment;
(v) Supporting and encouraging private
business development and long-term planning.

6. FUNCTIONS OF WORLD BANK
•To assist in the construction and development
•To promote private investment and long run balanced growth
•To arrange loans made or guaranteed by it
•To provide finance to projects from its own capital, funds
•provides advice and expertise
•to generate and disseminate policy relevant knowledge

7. ORGANISATION STRUCTURE
TheorganizationalstructureoftheWorldBank
consistsofBoardofGovernors,ExecutiveDirectors
andapresident.Allthepowersofthebankare
entrustedtotheBoardofDirectors.Eachmember
countryhasonegovernorandonealternategovernor
andtheirtermisforfiveyears.TheBoardof
Governorsmeetsonceayear.Thegovernorshave
delegatedtheirpowerstoaBoardofExecutive
Directorsinordertocarryontheday-to-dayfunctions
ofthebank.Atpresent,thereare25executive
directors.
ThepresidentofWorldBankisalsothechairmanof
theBoardofExecutiveDirectors.

8. CAPITAL AND IT’S RESOURCES OF W.B
ResourcesofWorldBank
Initially,theWorldBankhasan
authorizedcapitalof10billionUSdollars
dividedinto1,00,000sharesof1,00,000
USdollars.Outofthis,themember
countries’subscriptionwas9400million
dollars.TheUnitedStateswasthelargest
subscriberandIndiawasoneofthefive
largestsubscriberstothebank.
Thesubscriptionquotaofeach
countryconsistedofthreedivisions.
•Twopercentofthequotawaspayable
ingoldorUSdollarswhichwas
availableforlending.
•18percentofthequotawaspayable
inlocalcurrencyandwasavailablefor
lendingwiththeconsentofthe
members whosecurrencywas
involvedand
•theremaining18percentofthe
subscriptionwassubjecttocall,asand
whenrequiredbythebanktomeetits
obligations.

9. LENDING OPERATIONS OF WORLD BANK
•Lending is of two types:
The first is for developing countries which are able to pay near market interest rates.
Resources for such type of lending are obtained from investors across the world. The
World Bank issues bonds to mobilize such funds.
The second type of lending is to the poorest countries which have no credit worthiness in
the international financial markets. As they will not be in a position to pay near market
interest rates on their borrowings. The World Bank’s affiliate, theInternational
Development Association(IDA) undertakes Lending to poorest countries.

10. FORMS OF LOANSOFFERED BY WORLD
BANK
TheWorldBankextendsloanstomember
countriesinthefollowingforms:
•Grantingloansoutofitsownfunds.
•Byparticipatinginloansoutoffundsraisedinthe
marketofamember countryorotherwise
borrowedbytheWorldBank.
•Providingguaranteeinpartorinfullforloans
madebyprivateinvestorsthroughtheusual
investmentchannel.

11. CONDITIONS OF LOANS OFFERED
TheWorldBanklendsonthefollowingterms:
•TheWorldBankensuresthattheborrowerisunableto
obtainloansunderconditionswhichthebankconsiders
reasonable.
•Loansaremeantforreconstructionordevelopmentexceptinspecial
circumstances.
•TheCentralBankofthemember countryguarantees
paymentoftheprincipal,interestonloanandotherrelated
charges.
•ThecompetentcommitteeintheWorldBankisthoroughlysatisfied
withtheloanproject.
•Theborrowerisabletomeetobligationsasimposedbythe
WorldBank.

12. FACTS ABOUT W.B
•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 theIMF, it was launched in the presence of many important delegates.

14. THANK YOU

15. THANK YOU