INDEX OF TODAY’S PERSENTATION

INTRODUCTION (1-3) HISTORY (3-6) VISION & MISSION (6-6) STRUCTURE & BOARD OF DIRECTOR (7-8) CRITICISM (8-8) OBJECTIVES (8-9) FUNCTION (9-13) SWOT ANALYSIS (13-15) SWOT CONCLUSION (15-15) IMPORTANCE (16-16) ROLE OF WORLD BANK IN PAK (17-17)

World Bank

World Bank logo

Motto Working for a World Free of Poverty

Formation July 1944; 71 years ago

Type Monetary International

Financial Organization

Legal status Treaty

Purpose Crediting

Headquarters Washington, D.C., United States

Region Worldwide

Membership 188 countries (IBRD) 173 countries (IDA)

Key people Jim Yong Kim, president

Parent organization

World Bank Group

Website worldbank.org

The World Bank is an international financial institution that provides loans to developing countries for capital programs. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group, which is part of the United Nations system.The World Bank's official goal is the reduction of poverty. However, according to its Articles of Agreement, all its decisions

must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of Capital investment.

World Bank GroupThe World Bank is different from the World Bank Group, an extended family of five international organizations:International Bank for Reconstruction and Development (IBRD)International Development Association (IDA)International Finance Corporation (IFC)Multilateral Investment Guarantee Agency (MIGA)International Centre for Settlement of Investment Disputes (ICSID)

HistoryJohn Maynard Keynes (right) and Harry, the "founding fathers" of both the World Bank and the International (IMF). The World Bank was created at the 1944 Bretton Woods Conference, along with three other institutions, including the International Monetary Fund(IMF). The president of the World Bank is, traditionally, an American. The World Bank and the IMF are both based in Washington D.C., and work closely with each other.

The Gold Room at the Mount Washington Hotel where the IMF and World Bank were established Although many countries were represented at the Bretton Woods Conference, the United States and United Kingdom were the most powerful in attendance and dominated the negotiations.

1944–1974

Before 1974, the reconstruction and development loans provided by the World Bank were relatively small. The Bank's staffs were aware of the need to instill confidence in the bank. Fiscal

conservatism ruled, and loan applications had to meet strict criteria.

The first country to receive a World Bank loan was France. The Bank's president at the time, John McCloy, chose France over two other applicants, Poland and Chile. The loan was for US$250 million, half the amount requested, and it came with strict conditions. France had to agree to produce a balanced budget and give priority of debt repayment to the World Bank over other governments. World Bank staff closely monitored the use of the funds to ensure that the French government met the conditions. In addition, before the loan was approved, the United States State Department told the French government that its members associated with the Communist Party would first have to be removed. The French government complied with this diktat and removed the Communist coalition government. Within hours, the loan to France was approved.

When the Marshall Plan went into effect in 1947, many European countries began receiving aid from other sources. Faced with this competition, the World Bank shifted its focus to non-European countries. Until 1968, its loans were earmarked for the construction of income-producing infrastructure, such as seaports, highway systems, and power plants that would generate enough income to enable a borrower country to repay the loan. In 1960, the International Development Association was formed (as opposed to a UN fund named SUNFED), providing soft loans to developing countries.

1974–1980

From 1974 to 1980, the bank concentrated on meeting the basic needs of people in the developing world. The size and number of loans to borrowers was greatly increased as loan targets expanded from infrastructure into social services and other sectors.

These changes can be attributed to Robert McNamara, who was appointed to the presidency in 1968 by Lyndon B. Johnson. McNamara implored bank treasurer Eugene Rotberg to seek out new sources of capital outside of the northern banks that had been the primary sources of funding. Rotberg used the global bond market to increase the capital available to the bank.[11] One consequence of the period of poverty alleviation lending was the rapid rise of third world debt. From 1976 to 1980 developing world debt rose at an average annual rate of 20%.In 1980, the World Bank Administrative Tribunal was established to decide on disputes between the World Bank Group and its staff where allegation of non-observance of contracts of employment or terms of appointment had not been honored

1980–1989

In 1980, McNamara was succeeded by US President Jimmy Carter's nominee, A. W. Clausen. Clausen replaced many members of McNamara's staff and instituted a new ideological focus. His 1982 decision to replace the bank's Chief Economist, Hollis B. Chenery, with Anne Krueger was an indication of this new focus. Krueger was known for her criticism of development funding and for describing Third World governments as "rent-seeking states."

During the 1980s, the bank emphasized lending to service Third-World debt, and structural adjustment policies designed to streamline the economies of developing nations. UNICEF reported in the late 1980s that the structural adjustment programs of the World Bank had been responsible for "reduced health, nutritional and educational levels for tens of millions of children in Asia, Latin America, and Africa".

1989–present

Beginning in 1989, in response to harsh criticism from many groups, the bank began including environmental groups and NGOs in its loans to mitigate the past effects of its development policies that had prompted the criticism.[8]:93–97 It also formed an implementing agency, in accordance with the Montreal Protocols, to stop ozone-depletion damage to the Earth's atmosphere by phasing out the use of 95% of ozone-depleting chemicals, with a target date of 2015. Since then, in accordance with its so-called "Six Strategic Themes", the bank has put various additional policies into effect to preserve the environment while promoting development. For example, in 1991, the bank announced that to protect against deforestation, especially in the Amazon, it would not finance any commercial logging or infrastructure projects that harm the environment.

In order to promote global public goods, the World Bank tries to control communicable disease such as malaria, delivering vaccines to several parts of the world and joining combat forces. In 2000, the bank announced a "war on AIDS", and in 2011, the Bank joined the Stop Tuberculosis Partnership.

Less recently, a project in Seychelles to promote local tourism by the name of project MAGIC was launched in 2010. Its successor project TIME was scheduled to be launched in 2012.

Traditionally, based on a tacit understanding between the United States and Europe, the president of the World Bank has always been selected from candidates nominated by the United States. In 2012, for the first time, two non-US citizens were nominated.

On 23 March 2012, U.S. President Barack Obama announced that the United States would nominate Jim Yong Kim as the next

president of the Bank. Jim Yong Kim was elected on 27 April

2012.

The World Bank Group headquarters bldg. in Washington, D.C.’

Vision & mission of the World BankVision statementThe World Bank group aim to fight poverty with passion & professional for lasting result to help people themselves. Mission statementCreating sharing & applying knowledge has always been an important part of the world bank’s program to assist its member countries to promotes growth & reduces poverty .

Criteria; Various developments have brought the Millennium Development Goals targets for 2015 within reach in some cases. For the goals to be realized, six criteria must be met: stronger and more inclusive growth in Africa and fragile states, more effort in health and education, integration of the development and environment agendas, more as well as better aid, movement on trade negotiations, and stronger and more focused support from multilateral institutions like the World Bank.

Eradicate Extreme Poverty and Hunger: From 1990 through 2004, the proportion of people living in extreme poverty fell from almost a third to less than a fifth. Although results vary widely within regions and countries, the trend indicates that the world as a whole can meet the goal of halving the percentage of people living in poverty. Africa's poverty, however, is expected to rise, and most of the 36 countries where 90% of the world's undernourished children live are in Africa. Less than a quarter of countries are on track for achieving the goal of halving under-nutrition.

Achieve Universal Primary Education: The percentage of children in school in developing countries increased from 80% in 1991 to 88% in 2005. Still, about 72 million children of primary school age, 57% of them girls, were not being educated as of 2005.

Promote Gender Equality: The tide is turning slowly for women in the labor market, yet far more women than men- worldwide more than 60% – are contributing but unpaid family workers. The World Bank Group Gender Action Plan was created to advance women's economic empowerment and promote shared growth.

Reduce Child Mortality: There is some improvement in survival rates globally; accelerated improvements are needed most urgently in South Asia and Sub-Saharan Africa. An estimated 10 million-plus children under five died in 2005; most of their deaths were from preventable causes.

Improve Maternal Health: Almost all of the half million women who die during pregnancy or childbirth every year live in Sub-Saharan Africa and Asia. There are numerous causes of maternal death that require a variety of health care interventions to be made widely accessible.

Combat HIV/AIDS, Malaria, and Other Diseases: Annual numbers of new HIV infections and AIDS deaths have fallen, but the number of people living with HIV continues to grow. In the eight worst-hit southern African countries, prevalence is above 15 percent. Treatment has increased globally, but still meets only 30 percent of needs (with wide variations across countries). AIDS remains the leading cause of death in Sub-Saharan Africa (1.6 million deaths in 2007). There are 300 to 500 million cases of malaria each year, leading to more than 1 million deaths. Nearly all the cases and more than 95 percent of the deaths occur in Sub-Saharan Africa.

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Leadership

Jim Yong Kim, the current President of the World Bank Group

The President of the Bank is the president of the entire World Bank Group. The president, currently Jim Yong Kim, is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. Traditionally, the President of the Bank has always been a US citizen nominated by the United States, the largest shareholder in the bank (the managing director of the International Monetary Fund having always been a European). The nominee is subject to confirmation

by the Board of Executive Directors, to serve for a five-year, renewable term. While most World Bank presidents have had banking experience, some have not.

The vice presidents of the Bank are its principal managers, in charge of regions, sectors, networks and functions. There are two Executive Vice presidents, three Senior Vice presidents, and 24 Vice presidents.

The Boards of Directors consist of the World Bank Group President and 25 Executive Directors. The President is the presiding officer, and ordinarily has no vote except a deciding vote in case of an equal division. The Executive Directors as individuals cannot exercise any power nor commit or represent the Bank unless specifically authorized by the Boards to do so. With the term beginning 1 November 2010, the number of Executive Directors increased by one, to 25.

Organization and Structure:The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the president and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank.

The board consists of one Governor and one Alternative Governor appointed for five years by each member country. Each Governor has the voting power which is related to the financial contribution of the Government which he represents.

The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely the USA, the UK, West Germany, France, Japan and India. The rest of the 15 members are elected by the remaining countries.

Each Executive Director holds voting power in proportion to the shares held by his Government. The board of Executive Directors meets regularly once a month to carry on the routine working of the bank.

The president of the bank is pointed by the Board of Executive Directors. He is the Chief Executive of the Bank and he is responsible for the conduct of the day-to-day business of the bank. The Advisory committees appointed by the Board of Directors.

It consists of 7 members who are expects in different branches of banking. There is also another body known as the Loan Committee. This committee is consulted by the bank before any loan is extended to a member country.

CRITICISM TO THE WORLD BANK

It was started to reduce the poverty but it support “United state” business interest

The president of Bank is always a citizen of the “United states

Objectives:

The following objectives are assigned by the World Bank:

1. To provide long-run capital to member countries for economic reconstruction and development.

2. To induce long-run capital investment for assuring Balance of Payments (Bop) equilibrium and balanced development of international trade.

3. To provide guarantee for loans granted to small and large units and other projects of member countries.

4. To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy.

5. To promote capital investment in member countries by the following ways;

(a) To provide guarantee on private loans or capital investment.

(b) If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.

Functions:

World Bank is playing main role of providing loans for development works to member countries, especially to underdeveloped countries. The World Bank provides long-term loans for various development projects of 5 to 20 years duration.

The main functions can be explained with the help of the following points:1. World Bank provides various technical services to the member countries. For this purpose, the Bank has established “The Economic Development Institute” and a Staff College in Washington.

2. Bank can grant loans to a member country up to 20% of its share in the paid-up capital.

3. The quantities of loans, interest rate and terms and conditions are determined by the Bank itself.

4. Generally, Bank grants loans for a particular project duly submitted to the Bank by the member country.

5. The debtor nation has to repay either in reserve currencies or in the currency in which the loan was sanctioned.

6. Bank also provides loan to private investors belonging to member countries on its own guarantee, but for this loan private investors have to seek prior permission from those counties where this amount will be collected.

Poverty reduction strategies

For the poorest developing countries in the world, the bank's assistance plans are based on poverty reduction strategies; by combining a cross-section of local groups with an extensive analysis of the country's financial and economic situation the World Bank develops a strategy pertaining uniquely to the country in question. The government then identifies the country's priorities and targets for the reduction of poverty, and the World Bank aligns its aid efforts correspondingly.

Forty-five countries pledged US$25.1 billion in "aid for the world's poorest countries", aid that goes to the World Bank International Development Association (IDA), which distributes the loans to eighty poorer countries. While wealthier nations sometimes fund their own aid projects, including those for diseases, and although IDA is the recipient of criticism, Robert B. Zoellick, the former president of the World Bank, said when the loans were announced on 15 December 2007, that IDA money "is the core funding that the poorest developing countries rely on"

World Bank organizes Development Marketplace Awards, a competitive grant program that surfaces and funds innovative, development projects with high potential for development impact that are scalable and/or replicable. The grant beneficiaries are social enterprises with projects that aim to deliver a range of social and public services to the most underserved low-income groups.

Global partnerships and initiatives

The World Bank has been assigned temporary management responsibility of the Clean Technology Fund (CTF), focused on making renewable energy cost-competitive with coal-fired power as quickly as possible, but this may not continue after UN's Copenhagen climate change conference in December 2009, because of the Bank's continued investment in coal-fired power plants.

Together with the WHO, the World Bank administers the International Health Partnership (IHP+). IHP+ is a group of partners committed to improving the health of citizens in developing countries. Partners work together to put international principles for aid effectiveness and development cooperation into practice in the health sector. IHP+ mobilizes national governments, development agencies, civil society and others to support a single, country-led national health strategy in a well-coordinated way.

Climate change

World Bank President Jim Yong Kim said in 2012 that:

"A 4 degree warmer world can, and must be, avoided – we need to hold warming below 2 degrees .... Lack of action on climate change threatens to make the world our children inherit a completely different world than we are living in today. Climate change is one of the single biggest challenges facing

development, and we need to assume the moral responsibility to take action on behalf of future generations, especially the poorest.A World Bank report into Climate change in 2012 noted that (p. xiii): "Even with the current mitigation commitments and pledges fully implemented, there is roughly a 20 percent likelihood of exceeding 4 °C by 2100." This is despite the fact that the "global community has committed itself to holding warming below 2 °C to prevent 'dangerous' climate change". Furthermore: "A series of recent extreme events worldwide highlight the vulnerability of all countries.... No nation will be immune to the impacts of climate change." 

The World Bank doubled its aid for climate change adaptation from $2.3bn (£1.47bn) in 2011 to $4.6bn in 2012. The planet is now 0.8 °C warmer than in pre-industrial times. It says that 2 °C warming will be reached in 20 to 30 years.

World Bank Institute

The World Bank Institute (WBI) creates learning opportunities for countries, World Bank staff and clients, and people committed to poverty reduction and sustainable development. WBI's work program includes training, policy consultations, and the creation and support of knowledge networks related to international economic and social development.

The World Bank Institute (WBI) can be defined as a "global connector of knowledge, learning and innovation for poverty reduction". It aims to inspire change agents and prepare them with essential tools that can help achieve development results. WBI has four major strategies to approach development problems: innovation for development, knowledge exchange, leadership and coalition building, and structured learning. World Bank Institute (WBI) was formerly known as Economic Development Institute (EDI), established on 11 March 1955 with the support of the Rockefeller and Ford Foundations. The

purpose of the institute was to serve as provide an open place where senior officials from developing countries could discuss development policies and programs. Over the years, EDI grew significantly and in 2000, the Institute was renamed as the World Bank Institute. Currently Sanjay Pradhan is the Vice President of the World Bank Institute.

Global Development Learning NetworkThe Global Development Learning Network (GDLN) is a partnership of over 120 learning centers (GDLN Affiliates) in nearly 80 countries around the world. GDLN Affiliates collaborate in holding events that connect people across countries and regions for learning and dialogue on development issues.

GDLN clients are typically NGOs, government, private sector and development agencies who find that they work better together on subregional, regional or global development issues using the facilities and tools offered by GDLN Affiliates. Clients also benefit from the ability of Affiliates to help them choose and apply these tools effectively, and to tap development practitioners and experts worldwide. GDLN Affiliates facilitate around 1000 videoconference-based activities a year on behalf of their clients, reaching some 90,000 people worldwide. Most of these activities bring together participants in two or more countries over a series of sessions. A majority of GDLN activities are organized by small government agencies and NGOs

SWOT OF THE WORLD BANK

StrengthsInnovative Culture (World bank) An innovative culture helps World bank to produce unique products and services that meet their...

Financial Leverage (World bank) Financial leverage allows World bank to use their balance sheet to expand their business and...

Economies of Scale (World bank) Economies of scale is the cost advantages that World bank obtains due to size. The greater the...

Brand Name (World bank) A strong brand name is a major strength of World bank. This gives World bank the ability to charge...

WeaknessesHigh Debt Burden (World bank) A high debt burden increases the risk that World bank goes bankrupt if they make a poor business...

Outdated Technology (World bank) A lack of proprietary technology and patents can hurt World bank’s ability to compete against...

Weak Supply Chain (World bank) A weak supply chain can delay the arrival of products to World bank’s customers. Unnecessary delays...

Cost Structure (World bank) A weak cost structure means World bank’s costs are high in comparison to their competitors…

OpportunitiesInnovation (World bank) Greater innovation can help World bank to produce unique products and services that meet customer’s...

New Technology (World bank) New technology helps World bank to better meet their customer’s needs with new and improved products...

International Expansion (World

bank) International markets offer World bank new opportunities to expand the business and increase...

ThreatsBad Economy (World bank) A bad economy can hurt World bank’s business by decreasing the number of potential customers…

Volatile Currencies (World bank) Volatile currencies make World bank’s investments difficult, because costs and revenues change so...

Intl Competition (World bank) International competitors are numerous and difficult to combat, because they can have many...

Mature Markets (World bank) Mature markets are competitive. In order for World bank to grow in a mature market, it has to...

Intense Competition (World bank) Intense completion can lower World bank’s profits, because competitors can entice consumers away...

Political Risk (World bank) Politics can increase World bank’s risk factors, because governments can quickly change business...

SWOT ConclusionStrengths + Opportunities = 7Threats + Weakness = 10

IMPORTANCE OF THE WORLD BANKThe World Bank is a very powerful organization. Many

countries that need to build roads, or deliver services to their

people ask for help from the World Bank. The World Bank also has many experts that know a great deal about economics and development. Many of their ideas become real world projects and programs that affect the lives of many people around the world.

ROLE OF WORLD BANK IN PAKISTANThere are several development projects which are financially

supported by the world bank

Active projects (42)

Closed projects (292)

Dropped projects (32)

Pipelines projects (2)