IA-2 Assignment 2023

MSB21T2004 International Business

Group No. 18

Project Title:
Analyse various promotional roles undertaken by the World Bank in
the fiscal year 2022-23 for Sri Lanka, Malaysia & Myanmar.

Sl. No. Admission No. Name

1. 22GSOB2040009 Shristi Kumari
2. 22GSOB2010622 shruti raj
3. 22GSOB2010717 Shruti Singh
4. 22GSOB2010054 Shruti Kumari
5. 22GSOB2010860 Shubham Kumar Gupta
6. 22GSOB2010463 Shubhi Bansal

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 Table of Contents

Title Page No.

Executive Summary 03

Introduction 04

Methodology 11

Analysis 14

Recommendations 17

Conclusion 18

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 Executive Summary

The report provides a comprehensive analysis of the World Bank Group's promotional roles in Sri
Lanka, Malaysia, and Myanmar during the fiscal year 2022-23. The focus was on economic
development, trade promotion, exchange rate policies, and poverty reduction initiatives. Here are
the key findings and recommendations:

Key Findings:

1. Economic Overview:
• Sri Lanka, Malaysia, and Myanmar faced economic challenges, including the impact of the
COVID-19 pandemic and political instability.
• Efforts were made to promote economic growth through reforms, trade initiatives, and
infrastructure development.

2. Trade Promotion Initiatives:

• The World Bank actively supported trade promotion in all three countries, focusing on
infrastructure development, private sector support, and public-private partnerships (PPPs).
• Notable projects included funding for transport and energy infrastructure in Sri Lanka, urban
infrastructure investments in Malaysia, and rural development projects in Myanmar.

3. Exchange Rate Policies:

• Exchange rate policies played a crucial role in influencing investments, private sector
development, and crisis response in the selected countries.
• The World Bank supported currency stability and provided financial assistance to navigate
the economic impact of the pandemic.

4. Poverty Reduction and Development:

• The World Bank implemented targeted programs to reduce poverty, including cash transfer
programs, vocational training, and community development initiatives.
• Emphasis was placed on education and health sectors to improve access and quality of
services.

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 5. Malaysia's Economic Monitor:
• Malaysia's fiscal year 2022-23 focused on recovery, with significant economic expansion
driven by increased employment and domestic consumption.
• The Malaysia Economic Monitor highlighted the effects of eliminating fuel subsidies and
outlined the country's countercyclical fiscal policy.

6. Malaysia's Fiscal Management:

• The World Bank collaborated with Malaysia on fiscal management, addressing macro-fiscal
stability, civil service efficiency, and spending in education and health.
• Recommendations included building Malaysia's Goods and Services Tax (GST) Gap, tax
policy reforms, and enhancing spending efficiency.

7. Education Challenges Post-COVID-19:

• The report emphasized the challenges faced by Malaysia's education system due to the
prolonged school closures during the COVID-19 pandemic.
• The World Bank worked closely with the Ministry of Education to address learning loss and
support the long-term development of the education system.

Recommendations:

1. Tailored Technical Assistance:

Increase the focus on providing tailored technical assistance to address specific needs in
each country.
2. Strengthen Partnerships:
Strengthen partnerships with civil society organizations, the private sector, and government
entities to enhance the effectiveness of development initiatives.
3. Knowledge Sharing:
Establish knowledge centers and forums to facilitate knowledge sharing and experience
exchange between nations.
4. Sustainable Development Goals:
Ensure that promotional practices align with and contribute to the achievement of
sustainable development goals, emphasizing inclusivity and long-term sustainability.

In conclusion, the World Bank's efforts in Sri Lanka, Malaysia, and Myanmar have contributed to
economic development, trade promotion, and poverty reduction. The recommendations aim to
further enhance the impact of these initiatives and promote sustainable and inclusive growth in the
region.

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 Introduction

The World Bank Group (WBG) is a collective of five international organizations dedicated to
economic development, with the primary objective of alleviating global poverty. Initially established
by the Western powers in 1944 to assist in the economic reconstruction of post-war Europe, the WBG
has since grown to finance over twelve thousand projects and extend its reach to almost all of the
world's developing countries.

The World Bank was established in 1944 by the United Nations, the United States, and the United
Kingdom as part of a larger effort to restore prosperity to Europe and prevent a return to the economic
hardship of the late 1920s and early 1930s, which had contributed to the spread of totalitarianism. In
order to achieve this, the World Bank, under the leadership of an American, was tasked with
managing the global exchange rate and balance of payments system, while the IMF was responsible
for providing member countries with post-war reconstruction loans. In recent years, the World Bank
has shifted its primary focus from working with middle-income countries on growth-oriented
initiatives and trade liberalization to focusing on global poverty alleviation, particularly in the world's
most impoverished countries, such as Africa and the Middle East, where the vast majority of the
world's poor live.

Source: World Bank

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The International Bank for Reconstruction and Development (IBRD), the International Development
Association (IDA), the International Finance Corporation, the Multilateral Investment Guarantee
Agency, and the International Center for Settlement of Investment Disputes are the five distinct
organizations that make up the World Bank Group. The member nations of each of these agencies
own and run them as cooperatives.

The IBRD and IDA together are sometimes referred to as the "World Bank." Out of the 189 members
of the bank, the United States, Japan, China, Germany, France, and the United Kingdom are its six
largest [PDF] shareholders as of 2023.

The board of governors, which is primarily composed of senior finance or development officials from
member nations, has final say over policy decisions at the bank. In turn, the board of governors
assigns.

In the fiscal year 2022-23, the World Bank undertook various promotional roles in Sri Lanka,
Malaysia, and Myanmar with the objective of discussing the global economy of these countries,
encouraging trade and economic growth, and addressing exchange rate policy and poverty reduction
and development.

1. Infrastructure Development: The World Bank supported infrastructure development

projects in all three countries. In Sri Lanka, this included funding for transport and energy
infrastructure to facilitate trade and connectivity. In Malaysia, investments were made in
urban infrastructure, while Myanmar received support for rural development projects.

2. Private Sector Development: The World Bank focused on promoting a conducive

environment for the private sector in these countries. This involved providing technical
assistance, policy advice, and financing for businesses. In Sri Lanka, efforts were made to
improve the ease of doing business, while in Malaysia, support was directed towards small
and medium-sized enterprises (SMEs). In Myanmar, initiatives were aimed at attracting
foreign investment.

3. Education and Health: The World Bank worked on enhancing education and health sectors
in these nations. In Sri Lanka, this included funding for improving the quality of education
and healthcare services. In Malaysia, efforts were made to strengthen vocational training and
healthcare access. Myanmar received assistance in expanding access to quality education and
healthcare in remote areas.

4. Crisis Response: Given the challenges posed by the COVID-19 pandemic, the World Bank
played a role in crisis response. This involved providing financial assistance and technical
expertise to help these countries navigate the economic impact of the pandemic, including
support for healthcare systems and social safety nets.

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 5. Public Private Partnerships (PPPs): The World Bank facilitated public-private partnerships
to boost infrastructure development and service delivery. Sri Lanka, Malaysia, and Myanmar
all saw increased engagement in PPP projects, ranging from transport infrastructure to energy
production.

6. Poverty Reduction and Development: Poverty reduction remained a core focus. The World
Bank implemented targeted programs and projects aimed at reducing poverty and improving
livelihoods. This involved measures such as cash transfer programs, vocational training, and
community development initiatives.

MALASIYA

In December 2019, the World Bank Group and the Malaysian government reached a decision to
continue operating the Bank Group's Kuala Lumpur hub for an extra five years, from FY21 to FY25.
Effective July 1, 2020, the Hub will now be known as the World Bank Group Inclusive Growth and
Sustainable Finance Hub in Malaysia.

It represents Malaysia's aspirations for development—inclusive growth, increased shared prosperity,

and developed nation status—as well as its desire to maintain its position as the world's leader in
sustainable finance.

In order to accomplish this goal, the Hub will continue to provide a forum for: developing and
fostering novel policy ideas with an international influence; exchanging knowledge and experience
internationally in order to assist Malaysia's development objectives; generating state-of-the-art
economic research and worldwide public goods; and sharing development experiences and planning
learning activities between South and South.

For Malaysia, this fiscal year (FY23) has been one of recovery. In 2022, the economy expanded well,
driven by increased employment and a rebound in domestic consumption. The fastest yearly growth
rate in the area was 8.7%. However, the epidemic, like other crises, left many people behind as weaker
and impoverished groups—including smaller businesses—kept finding it difficult to get back on their
feet. The price rises for food and energy, brought on by geopolitical circumstances, severely affected
them.

The work under this broad sub-theme is aided by two World Bank Group Practices: Poverty and
Equity and Macroeconomics, Trade, and Investment. Supporting Malaysia's long-standing goal of
equitable economic growth and disseminating its own experience to other nations with comparable
goals are the two main goals of the work.

The Hub's teams working on this theme have the following goals in mind: (i) conduct policy analysis
and offer advisory services to the Malaysian government in the areas of shared prosperity,

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macroeconomic and fiscal management, and poverty reduction; (ii) share Malaysia's experience with
inclusive growth and development with other nations and stakeholders; and (iii) support capacity
building in the areas of statistical analysis, economic modeling, and survey methods.

The Malaysia Economic Monitor (MEM) was prepared in the reviewed year as per standard
procedure.

The 27th edition of the MEM, Expanding Malaysia's Digital Frontier, was delayed until February
2023 in the wake of the 14th general elections that were held in November 2022 and the cabinet
formation that took place in December 2022. Taking into account the reopening of the economy, the
edition provided an update on Malaysia's macroeconomic recovery. This memo included a number
of new analyses. One of them examined the effects of abruptly eliminating fuel subsidies on
businesses and inflation. Preliminary findings indicate that eliminating fuel price subsidies entirely
will probably result in a 9.0% increase in consumer prices, with varying effects expected across
different industries. Furthermore, the MEM included features such a boxed article detailing
Malaysia's fiscal policy's countercyclical trend over time.

MACRO FISCAL MANAGEMNT

The Bank completed the 2022 Programmatic Fiscal Management Work Program over 2021–2023—
its first since 2011. It consists of six thematic chapters that address Malaysia's top fiscal policy
priorities for the upcoming years: the maintenance of macro-fiscal stability; the enhancement of
spending and delivery in the civil service; the strengthening of education spending efficiency and
results; the amplification of health spending efficiency and sufficiency; the improvement of tax and
spending equity; and the mitigation of climate change. Pre-primary education, primary health care,
noncommunicable diseases, and social assistance are the areas where Malaysia will need to spend
more, according to the PER, even though there is room to increase efficiency and, most notably,
reduce spending on the public wage bill.

The Bank also finished the deliverables under the 2021–2023 Malaysia Tax Policy Reform Technical
Assistance Program as part of the larger Malaysia Fiscal Management program. These will provide
guidance for MOF's Medium-Term Revenue Strategy, which aims to restore fiscal room and
sustainably fund Malaysia's long-term, inclusive growth plan.

The deliverables consist of the following:

I. Building Malaysia's Goods and Services Tax (GST) Gap and Tax Expenditure Model;
II. Providing MOF and the Royal Malaysian Customs Department (RMC) with two user training
workshops on Malaysia's GST Gap and Tax Expenditure Model;
III. A discussion notes on reform considerations to improve Malaysia's consumption tax
framework;
IV. Building Malaysia's Personal Income Tax (PIT) Policy Microsimulation Model;
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 V. Delivering a user training workshop to MOF on Malaysia's Personal Income Tax Policy
Microsimulation Model and IRB;
VI. a discussion notes outlining potential policy changes to improve Malaysia's framework for
personal income taxes; and
VII. a policy analysis of taxes that support health care.

POVERTY

Although COVID-19 caused a setback to Malaysia's efforts to combat poverty and inequality,
regional or rich-poor income disparities had already started to widen before the pandemic.
Furthermore, a general perception exists that not every Malaysian has benefited equally from growth.
As the nation moves toward becoming a high-income economy, activities falling under this theme
seek to support the Government of Malaysia's efforts to guarantee inclusive and sustainable growth
by producing evidence and exchanging experiences across national boundaries.

Another emphasis was on bringing attention to how urgently Malaysia needs to address youth
inequality. In collaboration with the Perdana Fellows Alumni Association, the team organized a
plenary session at the Youth Economic Forum (YEF) 2022 as part of the World Bank's yearly
commemoration of End Poverty Day. Youth were urged to address inequality at the session in order
to create a more inclusive and sustainable future. More than a thousand young professionals and
students from Malaysia and nearby nations attended the event with great success. Furthermore, on
October 18, 2022, the team collaborated with the Ministry of Economy, Yayasan Sejahtera, and the
United Nations Development Programme (UNDP) to host an International Day of Eradication of
Poverty (IDEP) conference.

PRIVATE SECTOR DEVELOPMENT

In order to maintain economic growth and remain competitive with high-income nations, Malaysia
must increase productivity and innovation as it works toward becoming a high-income nation in the
coming years.

In light of recent economic developments, tighter fiscal constraints, tighter monetary policy, and an
environment more susceptible to shocks, Malaysia must continue to pursue private-sector led
economic development in order to meet its high-income target and maintain its growth trajectory.

The private sector development team has been actively involved in offering MITI a review and TA
of the NIMP in order to assist Malaysia's industrial and private sector development while utilizing
alliances with significant counterparts. As a member of the task force tasked with reviewing and
rewriting the NIMP, the team provides vital information to MITI and other task force participants.
The team has additionally contributed to the development of policies and enablers that support the

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national investment aspirations of Malaysia as well as the wider economic goals and targets for
industrial development. Launch of the NIMP is anticipated for September 2023.

EDUCATION

Investing in education is essential to building up a nation's human capital. All people who have access
to high-quality education are better equipped to enhance their quality of life, social mobility, and
means of subsistence. Thus, inequality is decreased, and the country's sustainable development and
economic growth are fueled by this. However, the COVID-19 pandemic has presented education
institutions around the world with hitherto unseen difficulties in recent years, which has resulted in
major disruptions to learning, a widening of inequality gaps, and an increase in learning loss that was
already present prior to the pandemic. Malaysia experienced one of the longest school closures in the
region and was not exempt from these negative consequences. The main issue since the pandemic's
endemic phase began in FY23 has been making sure that the learning as the long-term development
of the nation's education system continues, the pandemic's effects are addressed and the impacted
generations are given the assistance they need to recover.

Building on their successful partnership of the previous two years, the World Bank education team
has worked closely with MOE and pertinent stakeholders. Specifically, building on the work from
FY21 and FY22, the Bank's FY23 activities were designed to support the implementation of
Malaysia's strategic plan goals in the field of education.

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 Methodology

Research is a “careful investigation of inquiry specially through search for new facts
in any branch of knowledge”.

The project is a systematic presentation consisting of the enunciated probe formulated

hypothesis, collected fact or data, analyses fact and proposed conclusions in form of
recommendation.

1. KIND OF RESEARCH
• The kind of research done is descriptive research.
• Descriptive research methods are pretty much as they sound — they
describe situations. They do not make accurate predictions, and they
do not determine cause and effect.
• In survey method research, participants answer questions
administered through interviews or questionnaires. After participants
answer the questions, researchers describe the responses given. In
order for the survey to be both reliable and valid it is important that
the questions are constructed properly. Questions should be written
so they are clear and easy to comprehend.

2. RESEARCH DESIGN

The research design is the specification of method and procedure for acquiring the
information needed to structure or to solve problem. It is the overall operation pattern
or framework of the project that stipulates what information is to be collected from
which source, and be what procedures. Research design is the arrangement of
condition for the collection and analysis and analysis of data in a meaner that aims to
combine relevance to the research purpose with economy in procedure.”

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 3. DATA ANALYSIS

The analysis of data was done on the basis of unit, age and number of years of
experience and factors. Analysis was done using the simple average method so that,
finding of the survey was easily comprehensible by all.

4. TYPE OF DATA

Type of data in this I have used both of the primary and secondary data. Primary Data
I have collected data from observation method, face to face communication with the
officials Secondary Data Secondary data was collected from websites and other
related websites and documents. Secondary data was used for this study as the
research design is descriptive in nature so we tried to collect the data available
through other sources on the subject. Sometimes, primary data is also collected
through observation method to facilitate the research work.

5. SOURCES OF DATA

The following sources are used for collecting the data for this study:

• Books
• internet
• Journals
• News papers
• Personal sources

6. SAMPLING AND THE METHOD USED

• SAMPLE DESIGN
Care was taken to choose the sample based on considerations like age,
sex & work experience of respondents thus enabling better
representations of the heterogeneous population. However, the sample
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 design was that of “JUDGEMENTAL SAMPLING” only. The time
consideration & size of population were major factors in determining
choice of sample design.

• SAMPLE SIZE
Here, researcher has taken 100 as the sample size. Employees of
different unit where randomly administrated the questionnaire.

7. METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data
analysis. According to Clifford Woody, Research Methodology comprises of defining
& redefining problems, collecting, organizing &evaluating data, making deductions
&researching to conclusions.

Accordingly, the methodology used in the project is as follows: -

• Defining the objectives of the study.

• Framing of questionnaire keeping objectives in mind (considering the
objectives).
• Feedback from the employees.
• Analysis of feedback.
• Conclusion, findings and suggestions.

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 Analysis

1. Discussing the Global Economy: -

Sri Lanka, Malaysia, and Myanmar:

• Economic Overview: Examine the overall economic health of each country,

considering factors such as GDP growth, inflation rates, and employment
trends.
• Global Positioning: Analyze the countries' positioning in the global economy,
looking at international trade, foreign direct investment (FDI), and economic
alliances.

Analysis:

• Comparative Perspective: Evaluate similarities and differences among the

three countries to provide a comparative analysis.
• Global Challenges: Discuss any common challenges these nations may face in
the global economic context.

2. Discussing Promotional Trade Practices by the World Bank: -

Fiscal Year 2022-23:

• Trade Promotion Initiatives: Explore specific projects and initiatives

undertaken by the World Bank to promote trade.
• Economic Growth Focus: Analyze how these practices aimed to encourage
economic growth in the selected countries.

Analysis:

• Impact Assessment: Evaluate the effectiveness and impact of the World

Bank's promotional trade practices.
• Sustainability: Discuss whether the strategies adopted have long-term
sustainability and potential for continued growth.

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 3. Discussing Exchange Rate Policy and Poverty Reduction and Development: -

Infrastructure Development:

• Investments: Examine how the exchange rate policy influenced investments in

infrastructure projects.
• Impact on Economic Development: Discuss the role of infrastructure in
overall economic development.

Private Sector Development:

• Currency Stability: Analyze the impact of exchange rate policies on currency

stability concerning private sector initiatives.
• Entrepreneurship and Innovation: Discuss how private sector development
contributes to poverty reduction and overall development.

Education and Health:

• Currency and Education Access: Explore how exchange rates affect funding
for education and access to quality healthcare.
• Human Capital Development: Discuss the role of education and health in
developing human capital for economic growth.

Crisis Response:

• Exchange Rate Flexibility: Assess how exchange rate policies supported

crisis response, considering factors like currency devaluation or stabilization.
• Financial Assistance: Explore how exchange rate policies influenced financial
assistance during crises.

Public Private Partnerships (PPPs):

• Currency Risk Management: Discuss how exchange rate policies impact

currency risk in PPPs.
• Investment Incentives: Evaluate if exchange rate policies incentivize private
sector involvement in public projects.

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Poverty Reduction and Development:

• Currency and Poverty Alleviation: Examine the relationship between

exchange rates and poverty reduction initiatives.
• Inclusive Development: Discuss how exchange rate policies contribute to or
hinder inclusive development.

Overall Analysis: -

1. Interconnectedness:
• Highlight the interconnected nature of global economic dynamics, trade
practices, and exchange rate policies in the context of the selected countries.

2. Impact on Sustainable Development:

• Assess the extent to which these initiatives contribute to sustainable
development goals, including poverty reduction, education, and health.

3. Potential for Future Collaboration:

• Discuss opportunities for future collaboration between the World Bank and the
selected countries based on the outcomes of the analysis.

4. Lessons Learned:
• Identify lessons learned from the discussed projects and practices that can
inform future strategies for economic development.

5. Policy Recommendations:
• Conclude with potential policy recommendations for the World Bank and the
selected countries to further enhance their collaboration and promote
sustainable economic growth.

By conducting a thorough analysis based on these objectives, the project can provide
valuable insights into the complex interplay of global economic forces, trade
practices, and policy decisions aimed at fostering development and reducing poverty
in Sri Lanka, Malaysia, and Myanmar.
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 Recommendations

Here are some recommendations for the World Bank's promotional roles in Sri
Lanka, Malaysia, and Myanmar:

1) Increase the focus on technical assistance.

2) Tailor promotional activities to the specific needs of each country.
3) Strengthen partnerships with civil society organizations and the private sector.

Here are some specific examples of how the World Bank could implement these
recommendations:

1) The World Bank could establish a knowledge center in Sri Lanka.

2) The World Bank could work with the Malaysian government.
3) The World Bank could partner with civil society organizations in Myanmar.

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 Conclusion

SRI LANKA
Sri Lanka has carried out critical reforms since the start of theeconomic crisis. Staying the course on
reforms while managing fiscal risks is crucial to restore a sustainable growthpath. Current efforts to
mobilize tax revenue should be coupled with continued reforms towards transparency of
expenditures to build public confidence and to deliver better public services.

Growth prospects depend on progress with debt restructuring and the implementation of
growth-enhancing structural reforms. Inflation is projected to stay in single digits amid
weak demand, as monetization of fiscal deficits wanes. Further, monetary loosening and
exchange rate pressures could counter this trend. Poverty is projected to increase in 2023
before declining over the medium term, in line with the slow recovery. Despite the removal
of import restrictions, the current accountdeficit is expected to narrow further in 2023, due
to continued liquidity constraints, and remain benign thereafter with the recovery in
tourism and remittances. Although the primary deficit is expected to decline in 2023, the
overall balance will remain high due to the large interest bill.

Debt restructuring and a revenue-based fiscal consolidation are projectedto reduce the overall
balance in the medium-term. While recent macroeconomic performance has been better than
expected, downside risks remain high, given a narrow path to recovery and limited buffers.

MALAYSIA
Malaysia’s response to the economic and financial crisis of 1997 was a set of unorthodox policy
measures, highlighted by the use of capital controls. This was complemented by institutional
measures, some of which were temporary, such as the establishment of organizations to restructure
debt, while others were of a more long-term nature. Among those in the latter category were actions
taken to strengthen the banking sector through bank mergers and initiatives for the phased
liberalization of the financial sector. At the center of Malaysia’s development plans is an export-
oriented growth strategy.

This has implied encouraging and providing incentives for export-oriented manufacturing and the
promotion of exports. Closely related are efforts to attract FDI and support the location of multi-
national corporations in Malaysia. In view of the nature of the current crisis and the economies
involved, there is an urgent need to reconsider the basis for these policies. The crisis requires a
rebalancing of strategies and consideration of policies that could change the structure of the
economy. The present crisis will require deeper changes that can be viewed not simply as an
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adjustment due to a possible decreased demand for exports, but as an attempt to enhance human
security, and upgrade human capital for Malaysia’s passage into a more knowledge-intensive era
of economic development.

MAYANMAR

Myanmar's global economy, trade, economic growth, exchange rate policy, and poverty
reduction and development trends.

1. Global Economy:
• Myanmar's economy has faced various challenges, including political instability and
the impact of the COVID-19 pandemic.
• The country has been working on economic reforms to attract foreign investment and
promote economic growth.

2. Trade:
• Myanmar has been engaged in regional and international trade, with its key trading
partners including China, Thailand, and India.
• The country has sought to enhance trade ties and improve infrastructure to facilitate
cross-border trade.

3. Economic Growth:
• Economic growth in Myanmar has been somewhat inconsistent due to political and
social challenges.
• Efforts have been made to diversify the economy and promote sectors such as
agriculture, manufacturing, and services.

4. Exchange Rate Policy:

• Myanmar has experienced fluctuations in its exchange rate, influenced by various
factors including economic policies, inflation, and global economic conditions.
• The country has been working on reforms to stabilize its currency and attract foreign
investment.

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5. Poverty Reduction and Development:
• Poverty reduction has been a significant focus, with efforts to improve education,
healthcare, and infrastructure.
• Development projects have aimed to address disparities between urban and rural
areas.

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