BUSINESS ENVIRONMENT ANAND PATEL

WORLD BANK: SHORT INTRODUCTION

 The World Bank Group is one of the world’s largest sources of funding and knowledge for
developing countries.
 The World Bank is a lending institution that funds essential infrastructural requirement,
globally.
 World Bank as an institution that is designed for investment as well as providing loans.

11th President of the World Bank Group

1. Robert Bruce Zoellick
2. Born: July 25, 1953
3. Since July 1, 2007
4. Nominated by George W. Bush
5. $ 4,00,000 PA

WORLD BANK: SHORT INTRODUCTION

 Name: world bank
 H.q. : washington d.c.
 Estd. : 27 dec 1945
 Members : 185 countries
 Current president: robert b. Zoellick.
 Staff: 10000 in 100 counries
 Authorized capital:$184 billion
 Financial sources: borrowing on international market

World Bank e-Library

 Launch: May 20, 2003
 The premier collection on international, social and economic development, an electronic
collection of World Bank publications
 Includes all titles published since 2000 and several older books
 Includes 1,800+ backlist titles and all current and forthcoming titles
 Plus over 2,700 peer reviewed World Bank Research Working Papers

T.Y. B.B.A.
BUSINESS ENVIRONMENT ANAND PATEL

World Bank :History

The World Bank is the outcome of the Bretton Woods Conference, held in 1944. It was launched
alongside the International Monetary Fund(IMF), in the presence of a number of important world
delegates, and many important policy makers from the United States of America.

FUNDING
 Financial resources are acquired by borrowing on the international bond market.
 It issues bonds to raise money and then passes on the low interest rates to its borrowers.
 It is made up of 185 member countries. These countries are jointly responsible for how the
institution is financed and how its money is spent.
FUNCTION

 The Bank Group uses financial resources and extensive experience to help poor nations
reduce poverty, increase economic growth, and improve the quality of life.
 World Bank provides technical and financial assistance to underdeveloped nations for
development schemes like building roads, schools, hospitals, etc. The main aim is to
eliminate poverty from the world.
 The World Bank collaborates with numerous other partners and multilateral organizations,
including the World Health Organization (WHO) and the Food and Agriculture Organization
(FAO), to realize the most far-reaching results possible.
 Current global challenges include the financial crisis, high food prices, and climate change.

WORKING GROUPS OF WORLD BANK

 International Bank for Reconstruction and Development (IBRD)
 International Development Association (IDA)
 International Finance Corporation (IFC)
 Multilateral Investment Guarantee Agency (MIGA)
 International Centre for Settlement

T.Y. B.B.A.
BUSINESS ENVIRONMENT ANAND PATEL

AFFILIATES OF THE WORLD BANK GROUP

 The International Bank for Reconstruction and Development
 Established 1945, 185 Members
 Fiscal 2008 lending: $13.5 billion for 99 new operations in 34 countries
 provides debt financing on the basis of sovereign guarantees

• The International Development Association

1. Established 1960, 167 Members

2. Fiscal 2008 commitments:$11.2 billion for 199 new operations in 72 countries
3. Provides concessional financing (interest-free loans or grants), usually with sovereign
guarantees

• The International Finance Corporation

1. Established 1956, 179 Members

2. Fiscal 2008 commitments: $11.4 billion committed and $4.8 billion mobilized for
3. 372 projects in 85 countries
4. Provides various forms of financing without sovereign guarantees, primarily to the private
sector

• The Multilateral Investment Guarantee Agency

1. Established 1988, 172 Members

2. Fiscal 2008 guarantees issued: $2.1 billion
3. Provides insurance against certain types of risk, including political risk, primarily to the
private sector.

• The International Centre for Settlement of Investment Disputes

1. Established 1966, 143 Members

2. Total cases registered: 268
3. Fiscal 2008 cases registered: 32
4. Works with governments to reduce investment risk

T.Y. B.B.A.
BUSINESS ENVIRONMENT ANAND PATEL

Affiliates of the world bank group

1. The World Bank (IBRD and IDA),
2. IFC, and MIGA work together as well as independently to reduce poverty, faster growth, and
ensure that development is inclusive and sustainable

WORLD BANK IN INDIA

India's involvement with the World Bank dates back to its earliest days. India was one of the 17
countries which met in Atlantic City, USA in June 1944 to prepare the agenda for the Bretton
Woods conference, and one of the 44 countries which signed the final Agreement that established
the Bank. In fact, the name "International Bank for Reconstruction and Development" [IBRD]
was first suggested by India to the drafting committee.

 Reduce poverty.
 Develop an investment-environment.
 Increase job opportunities.
 Work towards sustainable economic growth.
 Promote socio-economic growth through investment.
 Strengthen governments with education.
 Empower the development of legal and judicial systems, business opportunities and
protection of individual rights.
 Benefit from micro credit as well as large corporate undertakings.
 Combat corruption.
 Promote research and training opportunities.
 Provides low-interest loans,
 Interest-free credits
 Grants to include investments in education,
 Health,
 Public administration,
 Infrastructure,

T.Y. B.B.A.
BUSINESS ENVIRONMENT ANAND PATEL

 Financial and private sector development,

 Agriculture,
 Environmental and natural resource management.
 The World Bank has, in September 2009, agreed to extend budgetary support of $2
million to the Government of India to help public sector banks expand credit for small &
medium enterprise (SME), as well as for the development of infrastructure and the rural
economy.
 Moreover, in June 2009, the World Bank provided additional financing of $400 million to
the Small Industries Development Corporation of India (SIDBI) to assist India's SME
sector through the financial crisis.
 The World Bank has, in September 2009, agreed to extend $1.195 billion to the India
Infrastructure Finance Company Limited (IIFCL) to help finance private-public
partnerships in infrastructure, especially in the roads, power and ports sectors.

 The World Bank has supported Andhra Pradesh to upgrade its state highways. It is now
helping to upgrade rail and road connectivity in Mumbai; improve state highways
in Andhra Pradesh, Himachal Pradesh, Kerala, Orissa, Punjab and Uttar Pradesh
 To help produce engineers of international standards, the World Bank has supported
improvements in the quality of education in engineering institutes in 13 states.

 SARDAR SAROVAR DAM…. World Bank is the financing agency for this project.
 The World Bank approved a US$520.75 million IDA credit to India in a major new attack
on three diseases to Combat Malaria, Kala Azar, and Polio
 World Bank Approves Two Credits To India For Polio Eradication And Rajasthan
District Poverty Initiatives.
 The World Bank approved two credits to India worth a total of more than US$243
million. The India Immunization Strengthening Project (US$142.6 million) will
benefit millions of children countrywide with intensified efforts to eradicate polio and
reduce vaccine preventable diseases, while the Rajasthan District Poverty Initiatives
Project (US$100.48 million) will empower the poor to develop their communities in the
Indian state of Rajasthan.

T.Y. B.B.A.
BUSINESS ENVIRONMENT ANAND PATEL

 And hundreds of projects like these are there .

ADVANTAGES
World Bank is to fight poverty with passion and professionalism for lasting results and to help
people help themselves and their environment by providing resources, sharing knowledge,
building capacity and forging partnerships in the public and private sectors

DARK SIDE
1. US held 16.4% of total votes. Major decisions require an 85% majority, so the US effectively
holds power of veto.
2. All 11 presidents have been chosen by the US because it is the bank's biggest shareholder.
3. The maximum votes are in hands of US and European countries so poor countries don’t get
much benefits.
4. World Bank imposes anti-communist conditions while giving the loan, as it did with France
in 1945.

T.Y. B.B.A.