Overview of World Bank
Founded in 1944, the International Bank for Reconstruction and Development—soon called the
World Bank—has expanded to a closely associated group of five development institutions .
Originally, its loans helped rebuild countries devastated by World War II. In time, the focus
shifted from reconstruction to development, with a heavy emphasis on infrastructure such as
dams, electrical grids, irrigation systems, and roads.
The World Bank Group is one of the world’s largest sources of funding and knowledge for
developing countries.
The World Bank has 189 countries as it’s members The Bank continues to expand presence on
the ground in client countries—particularly in those affected by fragility, conflict, and violence.
World Bank is a value based Bank group working on principles of Impact, Integrity, Respect,
Teamwork and Innovation.
The World Bank consists of five institutions that share a commitment to reducing poverty,
increasing shared prosperity, and promoting sustainable growth and development.
International Bank for Reconstruction and Development (IBRD) lends to governments of
middle-income and creditworthy low-income countries.
International Development Association (IDA) provides financing on highly concessional terms
to governments of the poorest countries.
International Finance Corporation (IFC) provides loans, equity, and advisory services and
mobilizes additional capital from other sources to stimulate private sector investment in
developing countries.
Multilateral Investment Guarantee Agency (MIGA) provides political risk insurance and credit
enhancement to investors and lenders to facilitate foreign direct investment in emerging
economies.
International Centre for Settlement of Investment Disputes (ICSID) provides international
facilities for conciliation and arbitration of investment disputes.
OBJECTIVES OF World Bank
The main purpose of the Bank is, “to assist in the reconstruction and development of territories
of members by facilitating the investment of capital for productive purposes.
World Bank’s Mission is to end extreme poverty and promote shared prosperity.
To promote the long-range balanced growth of international trade and the maintenance of
equilibrium in balances of payments by encouraging international investment thereby assisting
in raising the productivity, the standard of living and conditions of labor
INDIA & WORLD Bank
( https://www.worldbank.org/en/country/india/brief/75-years-of-world-bank-in-india#9)
Currently, the World Bank’s support to India is spread over 127 active projects with a combined worth of
over $28 billion
Timeline World bank’s Landmark Projects in India’s Development.
1940-1950 India became one of the founding members of the World Bank.
India took its First World Bank Loan for the development of Indian
Railways.
1950-1960 Assisted in procuring the foreign exchange needed to set up its first power
and steel plants.
Supported Air India, the national airline, to expand and modernize its
fleet.
1960-1970 Provided Assistance to set the stage for its landmark Green Revolution
Setting Stage for Capital Goods Industries
1970-1980 White Revolution-Business Model of Milk Cooperatives.
1980-1990 Supported the development of oil and gas extraction facilities.
Supported the development of India’s largest container port.
1990-2000 Build institutions for managing critical sectors of a newly globalizing
economy
PowerGrid and National Highway Authority of India.
2000-2010 Supported Education For All
Relief Measures undertaken during 2001 Earthquake.
2010-2020 Supporting Clean Energy Projects
Assisted in Rejuvenating the iconic Ganga River
Engaged in construction of India’s first electrified rail freight corridor.
World Bank Response to Covid-19 in India(https://www.worldbank.org/en/country/india/coronavirus)
The Bank partnered with GOI to support India’s immediate health needs
Program to help the poor and vulnerable communities deeply affected by the pandemic.
Economic stabilization and included a Bank-supported project for medium small and micro
enterprises (MSMEs)
By the end of June 2020, the World Bank approved $2.75 billion in emergency lending to
support India’s response to the COVID-19 crisis. Watch the video to know more on World Bank’s
support to India’s response.
