TOPIC

WORLD BANK

A WORLD FREE OF POVERTY

CONTENTS• HISTORY

• What is world bank?

• MISSION

• PRESIDENT AND BOARD OF DIRECTORS

• WHO RUNS THE WORLD BANK

• MEMBER COUNTRIES

• OBJECTIVE OF THE WORLD BANK

• FUNCTIONS

• GROUP MEMBERS OF WORLD BANK

• LAST REPORT

• WORLD BANK AND PAKISTAN

• SOURCE OF WORLD BANK FUNDS

• CRITICISM

• CONCLUSION

HISTORY

• Founded in 1944, at Bretton Woods, New Hampshire

• Initial capital was $10b

• First loan to France in 1947 of $250 million

• 1947 - Incorporation into UN System

• 1979 - Lending for the fiscal year crosses the $10 billion mark for the first time

• James D. Wolfensohn became the Bank president

WORLD BANK?

• Today, the World Bank functions as an international organization that fights poverty by offering developmental assistance to middle-income and low-income countries.

• By giving loans and offering advice and training in both the private and public sectors.

• The World Bank aims to eliminate poverty by helping people help themselves.

• Under the World Bank Group, there are complimentary institutions that aid in its goals to provide assistance.

WORLD BANK

Headquarter……

Washington Dc and more than 100 offices in different countries

Staff……

8000 employees in Washington and over 2000 in the field

Largest Funder of…..

Education

Health

Infrastructure

MISSION• Very simple

• Our dream is a world free of poverty

PRESIDENT

• First president was James D Wolfensohn

• Current Jim Yong Kim

• President is selected by the executive board of directors

• President is responsible for smooth running of the bank and is forbidden from any political activity

• Representative of world poorest nations

• Must be

• Diplomatic

• Impartial in decision making

• Large organizational running experience

BOARD OF DIRECTORS

• Board of directors are 24

• They are elected for two years

• 5 from US, Japan, Germany, France and Britain

• 19 Directors represent the rest of the nations like Australia, Cambodia etc.

• Under the IBRD Articles of Agreement, each of the five members having the largest number of shares appoints an Executive Director

• Role…

• President is elected by directors

• Should make decision impartially

• Should meet twice in a week to see the affairs

WHO RUNS THE WORLD BANK:

• They run like a cooperative, with their member countries as

share holders. The no. of shares a country has is based on the

size of the economy.

• Largest Share holder: United State (16.41% of votes)

• Followed by: Japan (7.87% ),

• Germany (4.49%),

• The United Kingdom (4.31%) &

• France (4.31%) .

• The rest of the shares are divided among the other member

countries

CONT…

• Ultimate Decision-Making Authority: Their

government represented by Board of Governors. These

governors are ministers, such as Ministers of Finance or

Ministers of Development.

• Day-To-Day Decision Making: Governors meet only

once in a year. They give specific duties to their Executive

Directors, who work on-site at the Bank.

MEMBER COUNTRIES

• 188 countries.

• Pakistan availed membership on 1st July 1950.

• Panama is the first member country of world bank which got membership on 27 Dec 1945.

• South Sudan got recent membership on 18 April 2012.

• To become a member of the Bank, under the IBRD Articles of Agreement.

• A country must first join the International Monetary Fund (IMF).

• Membership in IDA, IFC and MIGA are conditional on membership in IBRD

OBJECTIVES OF WORLD BANK

• World Bank was to make loans to develop the war shattered economies of Europe in 2nd World War

• World Bank also promote investment by means of guarantee to private sector

• World Bank helps the poorer countries & providing source of advice and information besides making loans

FUNCTIONS

• Granting loans for

• Reconstruction

• Under develop countries

• Developmental purposes

• Power, Irrigation, Agriculture, Water Supply, Transportation and Health etc. to governments

• Granting loans to private concerns for specified projects

• And also provide technical, economic and monetary advice to member countries for specific projects

FIVE AGENCIES – ONE GROUP

ICSID

LAST REPORT OF 2013

• TWO AMBITIOUS GOALS IN A LAST REPORT

3% POVERTY IN 2030

EQUALITY

WORLD BANK AND PAKISTAN

• FEDERAL LEVEL….

IN 2007 WORLD BANK APROVED US$350 MILLION TO SUPPORT

-- ENCOURAGING GROWTH

--EMPLOYEMENT GENERATION

--INVESTMENT & GOVT POVERTY REDUCTION

PROVINCIAL LEVEL• AT PROVINCIAL LEVEL WORLD BANK APPROVED US$430 MILLION IN

2007

TO PUNJAB KPK SIND AND BOLOCHISTAN TO HELP IMPROVE

• IRRIGATION

• EDUCATION

• HUMAN DEVELOPMENT INDICATORS

WORLD BANK AND PAKISTAN

• Providing assistance to Pakistan in various fields…

• Education

• Banking

• Technical Assistance

• Agriculture

• Some projects that have been carried out in Pakistan

• Banking sector technical assistance project

• Ajk community infrastructure and services project

• Kpk on farm water management project

• Ghazi Barotha Hydro Power Project etc

THE VICTIMS OF EARTHQUAKE :

• IN A 2005 • DEMAGED AROUND 575000 HOUSES• GOVT CREATED AUTHORTHY OF

(ERRA) LAUNCHED US$1.5 BILLION

PARTIALLY FUNDED BY WORLD BANK

TO HELP PAKISTAN FIGHT AGAINST POLIO:• THEY APPROVED 2 PROJECTS

• IN 2003 US $42.71 MILLION

• IN 2006 US $ 74.27 MILLION

• TO PURCHASE A POLIO VACINE

YEAR NUMBER OF POLIO CASES

1997 1147

2007 31

SOURCE OF WORLD BANK FUNDS• Quotas

• Bonds

• Income

CRITICISM

• It was started to reduce poverty but it support united nations business interest

• The president of the bank is always is the citizen of US

• The decision making structure is undemocratic

• It is the instrument for the promotion of us or western interest

• Lack transparency to external public

CONCLUSION

• Resistance by some government

• Some actions needed to avoid

• Bias

• Corruption

• Influence of US in Banks activities

THANK YOU for

your concentration