Presented by

ANJALI.M

4 TH SEM MCOM

SEMINAR PRESENTATION

WORLD BANK AND ASSOCIATES

ANJALI.M4th SEM M COM

An over view of World Bank

The World Bank is an International financial institution that provides loans to developing countries for capital programs. 

Established: July 1, 1944 by a conference of 44 governments in

Bretton Woods, New Hampshire, USA Headquarters: Washington, DC and more than 100 offices around the world. Membership: 188 countries Mission Reduction of poverty and improve Standard of living of people.

SPECIAL

FEATURES OF

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, reduce poverty, increase

economic growth, improve their quality of life.

OBJECTIVES OF WORLD BANK

1. To render assistance in the reconstruction and development of

member countries by facilitating investment of capital for productive

purposes.

2. To help restoration of economies from enormous destruction brought

about by the world war I and II(reconstruction)

3. To promote private foreign investment by means such as participation

in loans or guarantee for loans made by private investors, as also to

supplement private investment by its own loans or finances.

 

4. To provide encouragement to the development of productive resources

of less developed countries.

5. To promote long term balanced growth of international trade help

achieve equilibrium in balance of payments position of member

countries by promoting international investments for the development

of productive resources and thereby rendering assistance in raising

productivity and standard of living of people in the member countries.

6. To make arrangement for loans or guarantees in respect of

international loans.

Members of World Bank

188 countries were members of the bank. Each member of the

world bank has a capital subscription that is similar to, not identical

with, its quota in the funds.

Generally every member country of the IMF automatically

becomes the member of world bank. Similarly any country which

quits IMF is automatically expelled from the world bank’s

membership.

Organization structure

PRESIDENT

BOARD OF GOVERNORS

BOARD OF EXECUTIVE DIRECTORS

BOARD COMMITTEE - MANAGING DIRECTORS VICE PRESIDENT & FINANCIAL OFFICERS

DEVELOPMENT COMMITTEE

The president

The president of the Bank, elected by the executive directors, is also their chairman, although he is not entitled to a vote, except in case of an equal division. Subject to their general direction, the president is responsible for the conduct of the ordinary business of the Bank. Action on Bank loans is initiated by the president and the staff of the Bank. The amount, terms, and conditions of a loan are recommended by the president to the executive directors, and the loan is made if his recommendation is approved by them.

Board of Directors

All powers of the Bank are vested in its Board of Governors, composed of one governor and one alternate from each member state. Ministers of Finance, central bank presidents, or persons of comparable status usually represent member states on the Bank's Board of Governors. The board meets annually.

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.

Executive Directors

The Bank's Board of Governors has delegated most of its authority to 24 executive directors. According to the Articles of Agreement, each of the five largest shareholders—the United States, Japan, Germany, France and the United Kingdom—appoints one executive director.

The other countries are grouped in 19 constituencies, each represented by an executive director who is elected by a group of countries.

•The International Bank for Reconstruction & Development(1945)

•The International Development Association (1960)

•The International Finance Corporation 1956)

• The Multilateral Investment Guarantee Agency (1988)

The International Centre for the Settlement of Investment Disputes (1966)

IBRD

IDA IFC MIGA ICSID

WORLD BANK

GROUP

The international bank for Reconstruction and development

known popularly as the world bank. It is an is an internationally

supported bank that provides financial and technical assistance to

developing countries for development programs (e.g. bridges,

roads, schools)with the stated goal of reducing poverty.

It began its operation in June 1946. The world bank (IBRD) is an

international agency, owned by governments , which operated by

board of Governor making long term loans to member countries

and finance to productive investment in member countries.

International Bank for Reconstruction and Development

It aims to reduce poverty in middle- income and creditworthy

poorer countries by promoting sustainable development through

loans, guarantees, risk management products, and analytical and

advisory services.

IBRD is the original World Bank institution. It works closely

with the rest of the World Bank Group to help developing countries

reduce poverty, promote economic growth, and build prosperity.

International Finance Corporation (IFC)

International Finance Co-operation is the affiliate of the world bank

which came in to force in 1956, membership in world bank is a

prerequisite for membership in the IFC. It is as an autonomous

international body, which is designed to stimulate growth in its

development member countries by investing in productive

enterprises in association with private capital and management and

without any guarantee. At present 184 countries are its member.

Objectives of IFC

To make investments in private sector enterprises in member

countries particularly in the less developed countries.

To stimulate the international flow of private capital.

To assists the growth of capital market in less developed

countries.

To bring together investment opportunities foreign and domestic

private capital.

International Development Association (IDA)

IDA is an associate institution of world

bank known as loan window of world bank,

IDA was established on September 24, 1960,to provide

concessional assistance to countries that are too poor to

borrow at commercial rates. At present 172 countries are its

member.

• Helps build the human capital, policies, institutions, and

physical infrastructure needed to bring about equitable and

sustainable growth.

• IDA's goal is to reduce the disparities across and within

countries, to bring more people into the mainstream, and to

promote equitable access to the benefits of development.

• It provides long-term loans at zero interest to the poorest of the

developing countries.

• supports efficient and effective programs to reduce poverty and

improve the quality of life in its poorest member countries.

Features.....

Multilateral Investment Guarantee Agency (MIGA)

MIGA , A member of world bank group was

established on April 12, 1988 to promote

Foreign Direct Investment(FDI) in to

developing countries to help support

economic growth, reduce poverty, and

Improve peoples lives .At present 179 countries are members

of MIGA.

It encourages the flow of foreign direct investment to its

developing member countries.

It facilitates investment primarily by providing investment

guarantees against noncommercial risks (currency transfer,

expropriation, and war, for example).

It provides technical assistance to help countries

disseminate information on investment opportunities, and to

build capacity for investment promotion.

MIGA has its own operating and legal staff and is legally

and financially a separate entity from the World Bank

Features.....

International Center for the Settlement on Investment Disputes (ICSID)

ICSID was established in 1966 as an independent

international organization under the World Bank

Group. It intermediates in investment disputes between

a government and a private foreign investor. ICSID is

an international organ for settlement of disputes

arising in connection with foreign investments in the

member states of the Bank

provides facilities for the settlement, by conciliation or

arbitration, of investment disputes between member

countries and nationals of other member countries.

It is an autonomous international organization with

close links with the World Bank. All of its members are

also members of the Bank

CONCLUSION

Concluded that World bank is an international financial

institution that provides financial assistance to member

countries.The world bank group consisting of five institutions

includes IBRD, IFC, IDA, MIGA and ICSID. While all five

specialise in different aspect of development, they use their

comparative advantage to work collaborate towards the same

overarching goal poverty reduction.

References

• International Financial Management, V K Bhalla, Anmol publications pvt ltd, Page no; 65-80

• International Financial Management (Third Edition) – V. Sharan , Page no: 306-317

• International Financial Management – Madhu Vij Excel books, New Delhi, page no; 43 to 46

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