The World Bank

mandatory web resource-www.worldbank.org

Note-it is compulsory for the students to go through this web site-ppts are for reference

By-RAGINI KHANNA

• World Bank is a term used to describe an international financial institution that provides leveraged loans to developing countries for capital programs. The World Bank has a stated goal of reducing poverty.

Introduction

• Formation - 27 December1944• Type – International Organization• Legal status - Treaty• Purpose/focus - Crediting• Membership - 186 countries• President - Robert B. Zoellick• Main organ - Board of Directors• Parent organization - World Bank Group• Website - http://www.worldbank.org/

Headquarters in Washington D.C.

MISSION

“To fight poverty with passion and professionalism for lasting results. To help

people themselves and their environment by providing resources, sharing knowledge,

building capacity and forgoing partnerships in the public and private sectors.”

WB comprises of:• International Bank for Reconstruction and

Development (IBRD)• International Development Association (IDA)

WB Group comprises of:• IBRD• IDA• International Finance Corporation (IFC)• Multilateral Investment Guarantee Agency (MIGA)• International Centre for Settlement of Investment

Disputes(ICSID)

Active Areas• Agriculture and Rural Development• Conflict and Development• Development Operations and Activities• Economic Policy• Education• Energy• Environment• Financial Sector• Gender• Governance• Health, Nutrition and Population• Industry• Information and Communication Technologies• Information, Computing and Telecommunications• International Economics and Trade• Labor and Social Protections• Law and Justice• Macroeconomic and Economic Growth• Mining• Poverty Reduction• Poverty• Private Sector• Public Sector Governance• Rural Development• Social Development• Social Protection• Trade• Transport• Urban Development• Water Resources• Water Supply and Sanitation

Criteria

• Eradicate Extreme Poverty and Hunger• Achieve Universal Primary Education• Promote Gender Equality and Empower Women• Reduce Child Mortality• Improve Maternal Health• Combat HIV/AIDS, Malaria, and Other Diseases• Ensure Environmental Sustainability• Develop a Global Partnership for Development

World Bank in India India is one of the oldest members, having joined the institution at its

inception in 1944. The Country Strategy for India for 2009-2012 is aligned with the

government's Eleventh Five Year Plan. It focuses on helping the country to fast-track the development of much-

needed infrastructure, support the seven poorest states, and respond to the financial crisis.

The strategy was arrived at after a series of consultation with a broad range of stakeholders, including members of the government and civil society.

The strategy envisages total proposed lending of US$14 billion for 2009 - 2012. As private financing dries up in the wake of the global financial crisis, the Bank has agreed to provide an additional US$ 3 billion as part of the total financing envelope of US$ 14 billion.

The Bank’s previous four-year Country Strategy for 2005-2008 focused on lending for infrastructure, human development, and improving rural livelihoods.

World bank in India- Lending

Lending:-• At the end of June 2008, the World Bank group had 60

active projects in the country. New lending in FY08 (1 July 2007- 30 June 2008) amounted to US$2.7 billion.

• Total IBRD/IDA Commitments as on June 30, 2008 (FY 08): US$ 13.8 billion

LendingCommitments FY03 FY04 FY05 FY06 FY07 FY08

New 1.5 1.4 2.9 1.4 3.7 2.7

Total Commitments 13.0 12.0 12.8 11.3 14.3 13.8

Total Active projects 70 63 64 56 67 60

India Country: Overview

Over past 62 years, country has been successful on variousfronts:-• It has maintained electoral democracy• Reduced absolute poverty by more than half• Dramatically improved literacy• Vastly improved health conditions• Become one of the world’s fastest growing economies with

average growth rates of 9% over the past four years• Emerged as a global player in information technology,

business process outsourcing, telecommunications, and pharmaceuticals

Key Issues1. Making Growth More Exclusive- Small & Medium enterprises-

WB Sept.,09- $2 million to govt. for Pb. Sec. banks to expand SME credit.WB June,09- $400 million to SIDBI to assist India’s SME sector.

Agricultural & Rural Development-Raising Agri. Productivity- Soil & waterconservation,Reviving taditional rain water harvesting systems,Reclaim saline lands, link with Pb. Research org.Improving Rural Livelihoods- Andhra Pradesh,Chhattisgarh,Tamil Nadu, Orissa, Bihar, Madhya Pradesh.Rural Water Supply & Sanitation

Informal Sector Jobs Lagging States

Key Issues2. Improving Infrastrucutre:- Infrastrucutre

Sept.,09- WB extended $1.95 billion to IIFCL to help finance private-public partnerships in infrastructure, especially in the roads, power and ports sectors.

PowerHydropower project- 412 MW Rampur Hydropower Plant on Satluj, 444 MW Alaknanda River in Uttarakhand.Sept.,09- WB extended $1 billion to Powergrid to strengthen and expand five transmission systems.

Transport- WB supported Andhra Pradesh to upgrade its state highways, - Upgrade rail and road connectivity in Mumbai, - Improve state highways in Andhra Pradesh, Himachal Pradesh, Kerala, Orissa, Punjab and Uttar Pradesh - Construct a section of the Golden Quadrilateral in Uttar Pradesh,- Upgrade rural roads in select districts of Himachal Pradesh, Rajasthan,Jharkhand & Uttar Pradesh.

Urban Development- WB is helping streamline urban transport in Mumbai,- Improve the delivery of urban civic services in Tamil Nadu and Karnataka.

Key Issues

3. Addressing Issues for longer-term sustainability-

Integrated Coastal Zone Management Project rehabilitation of old and inefficient coal-fired

power plants strengthen power transmission networks

Key Issues4. Improving the effectiveness of public services and social

protection, especially to the poor- Education-

Between 2002 and 2007, the World Bank contributed $500 million of the total program cost of $3.5 billion.Between 2008 and 2010, domestic funding of over $9 billion for the program costing $600 million in Bank support.

Skills- quality of education in engineering institutes in 13 statesSupporting 400 Industrial Training Institutes (ITIs) to become centers of excellence

Health- leprosy as a national health problem,Project for kala azar, polio and malaria, HIV/AIDS, reproductive and child health programsProjects to strengthen state-level systems for rural healthcare.

Lending by Volume in Millions of US Dollars - India

Lending by Volume in Number of Projects - India

Current Lending by Sector in Number of Projects - India

10 THINGSWORTH KNOWING

ABOUTTHE WORLD BANK

IN INDIA

India is one of the World Bank’s ‘founding fathers’.

The World Bank supports India’s development goals.

The World Bank is helping India to build essential infrastructure.

The World Bank is working to boost rural growth.

The World Bank is investing in the education of India’s children.

The World Bank is helping India to fight ill-health and disease.

World Bank programs help the poor to steer their own development.

World Bank loans are a cheap source of financing.

The World Bank relies on local expertise.

India is the largest recipient of the World Bank’s financial assistance.