World Bank Group was established in 1945
Function
Provides low or no interest loans and grants to countries with little or no access to international credit markets
World Bank consists of:
World Bank consists of:
The International Bank for Reconstruction and Development (IBRD)
( Interest rate between 0.5 – 1% for a standard Bank loan)
The International Development Association (IDA)
IDA’s loans are interest free
1947 First and largest loan to FRANCE for $250 million for post-war reconstruction
185 member countries, shareholders, represented by a Board of Governors, the ultimate policy makers of the Bank.
24 on-site Executive Directors
The five largest shareholders;
- France
- Germany
- Japan
- United Kingdom
- United States
The President (currently Robert Zoellick, five-year term) is, by tradition, a US citizen nominated by the United States; the bank’s largest shareholder.
The World Bank’s activities are focused on
The World Bank’s activities are focused on
Reduction of global poverty
Implementation of sustainable development
Developing an environment for investment and jobs
Investment in and empowerment of the poor
Analytical and advisory services
Educating members
The four key factors necessary for economic growth and the creation of a business environment
Capacity Building – Strengthening governments and educating government officials
Infrastructure creation – implementation of legal and judicial systems for the encouragement of business, the protection of individual and property rights and the honoring of contracts
Development of Financial Systems – the establishment of strong systems capable of supporting endeavors from micro credit to the financing of larger corporate ventures
Combating corruption – Eradicating corruption to ensure optimal effect of actions
The Bank obtains funding for its operations primarily through the IBRD’s sale of AAA-rated bonds in the world’s financial markets.
The IDA obtains the majority of its funds from forty donor countries who replenish the bank’s funds every three years, and from loan repayments, which then become available for re-lending.
Types of loans
The Bank obtains funding for its operations primarily through the IBRD’s sale of AAA-rated bonds in the world’s financial markets.
The IDA obtains the majority of its funds from forty donor countries who replenish the bank’s funds every three years, and from loan repayments, which then become available for re-lending.
Types of loans
- Investment loans
For the support of economic and social development projects - Development policy loans.
Quick finance to support countries’ policy and institutional reforms. - Grants
The Bank also distributes grants for the facilitation of development projects through the encouragement of innovation, cooperation between organizations and the participation of local stakeholders in projects.
4 comments:
I may be wrong here, But you could have justed posted the wikipedia link instead of paraphrasing it. I don't understand why you chose top post something like this.
Huzefa - Actually I have more like arranged the points I need to know.
I posted this link for my future reference.
I know far less about this than you, but don't many countries have quite a deep mistrust about the motives for the World Bank, given its principal shareholders and restricted loans? Isn't there a big move for reform of the IMF because it doesn't achieve its stated goals?
Mustafa- A controversial Qs!
Yes there are many policies of IMF and World Bank that don't really help other developing countries. Especially the one where if they lend X country $, then X has to repay in $. That means X has to export to US so that it can earn $ and repay but then comes the twist - > X can't export to US.
The universal truth is friend, in terms of management 'The market leaders will do whatever need to do to remain on top'. Same applies to our world leaders.
I will have to check out what are the latest reforms IMF is doing...
Post a Comment