t he w orld b ank g roup rohini sengupta & sreya vaidyanathan

THE WORLD BANK GROUPRohini Sengupta & Sreya Vaidyanathan

HISTORY

Established in1944 at the Bretton Woods Summit in New Hampshire

Conceived for the reconstruction Europe

International Bank of Reconstruction and Development First loan to $250 million to France Offices setup in Paris, Prague, and Copenhagen

TRANSITION

Transitioned and expanded responsibilities in the 1980s Macroeconomics and debt rescheduling Social and environmental issues

Criticisms prompted: Waphens Report Inspection Panel 1994 Annual Meeting in Madrid

Larger role in global policy Expanded to 5 financial & banking agencies –

each with its own Articles of Agreement

PURPOSE

Mandate has evolved: worldwide poverty alleviation

Source of technical and financial assistance for developing countries Low interest loans, interest free credits, grants Supports investment Trust fund partnerships

Policy advice, research & analysis, technical assistance

Still focuses on post-war reconstruction

SIX STRATEGIC THEMES

Focus on… Poorest countries Fragile/conflict affected states The Arab world Middle income countries Global public goods issues Education

MEMBERSHIP AND LEADERSHIP Current President: Rober B. Zoellick 187 Members

US, UK, France, Germany, and Japan are largest shareholders

Ultimate decision making power with member countries: Board of Governors (senior decision-making body) Board of Executives (25 members)

Each member has one Governor and one Alternate

5 Largest shareholders appoint Directors, other 20 are elected

ADVANTAGES/BENEFITS OF MEMBERSHIP

Loans to developing countries for capital projects

Benefits economic prosperity in the long run Free trade with foreign investment & capital

investment Foreign investment Access to capital markets Opens new markets Falling extreme poverty rates Increase in general education rates

DISADVANTAGES/ CRITICISMS

Structural adjustment “worsens life for the poor” Only effective in countries with stable institutional

frameworks (Sub-Saharan Africa worse) Global inequity Shock therapy

Detrimental to health, environment & cultural diversity Brazilian Kayapo People

Run by a small number of economically prosperous countries American leaders

“Sovereign immunity”

WORLD BANK & AP6: MEXICO

Worldbank.org

WORLD BANK & AP6

MEXICO: 18 active projects Oportunidades Program

5.8 million of the poorest “provides cash on condition health, education

and nutrition targets are met, including regular medical check-ups and school attendance” (WB Press Release 2010)

Extreme poverty 10.4% 10.2% NIGERIA: 130 loans Fadama II project (agriculture), microfinance

projects, HIV/AIDS, education, water projects

WORLD BANK & AP6:

IRAN Active project: Alborz Integrated Land & Water Management Increases agricultural productivity US $120 mil May 2005- October 2012

CHINA: 107 active projects, 315 completed projects

US $1,770.72 mil loaned in 2011

Railroad programs, health programs, urban development programs, agricultural programs

WORLD BANK & AP6:

UK: 3.75% voting power Represented on Board of Governors 2007/2008: 1.4 billion pounds loaned RUSSIA: 10 investment projects in Russia

totaling US$ 987 million (2012) More than 70 projects Public administration and fiscal policy,

human and infrastructure development, energy efficiency and environmental and forestry protection

WORKS CITED "Amazon Indians Attack Official Over Dam Project." National Geographic. National

Geographic Society. Web. 26 Mar. 2012. <http://news.nationalgeographic.com/news/2008/05/080521-AP-indians-dam.html>.

"EDITORIAL - Criticism of World Trade Organization, World Bank and International Monetary Fund - Editorial." CBS Interactive. CBS Interactive Business Network, 01 Sept. 2000. Web. 26 Mar. 2012. <http://findarticles.com/p/articles/mi_m2465/is_6_30/ai_65653637/>.

"Mexico." Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/mexico/overview>.

"Russian Federation." Russia Projects & Programs. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/russia/projects>.

“UK.” Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/uk/overview

“China.” Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/China/overview

"Leadership." About Us. 19 Jan. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:22428930~menuPK:1697011~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.

"Site Tools." About Us. The World Bank Group, 31 Jan. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20653660~menuPK:72312~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.

"What We Do." About Us. The World Bank Group, 8 Mar. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20103838~menuPK:1696997~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.