THE WORLD BANK
INTERNATIONAL ECONOMIC LAW
A PRESENTATION BY:
OM AGARWAL
ROLL NO: 09
4TH YEAR B.A. LL.B
FIRST SESSION
Introduction
Purpose
Structure
History
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Introduction
• The World Bank is an international organization that helps
emerging market countries to reduce poverty.
• The World Bank provides low-interest loans, interest-free credit,
and grants. It focuses on improving education, health, and
infrastructure. Moreover, it uses funds to modernize a country’s
financial sector, agriculture, and natural resources management.
• Its first goal is to end extreme poverty.
• It wants that no more than 3 percent of people to live on $1.90 a
day or less by 2030.
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Purpose
The Bank purpose is to bridge the economic divide between poor and rich countries. It does this
by turning rich country resources into poor country growth. It has a long-term vision to ‘achieve
sustainable poverty reduction’.
The Bank focuses on six areas:
• Overcome poverty by spurring growth, especially in Africa
• Help reconstruct countries emerging from war
• Provide a customized solution to help middle-class income countries remain out of poverty
• Spur governments to prevent climate change. It helps control diseases such as HIV, and
Malaria.
• Work with the Arab League on three goals; to improve education, build infrastructure, and
provide micro-loans to SMEs.
• Share its expertise with developing countries. Publicize its knowledge via reports and its
interactive online database
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Structure
World Bank Group
International International Center Multilateral
World Bank Finance for Settlement of Investment
Corporation Investment Disputes Guarantee Agency
International Bank for
Reconstruction and
Development
International Development
Association
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History
• Was formed on July 1944 following Bretton Woods Conference along with IMF
• It was formed to rebuild Europe after World War II
• France was the first receiver of World Bank loan / US$250
• After Marshal Plan went into effect in 1947, the Word Bank shifted its focus to non-European
countries.
• From 1974 to 1980 the Bank concentrated on meeting the needs of people in developing
countries.
• Beginning in 1989, in response to harsh criticism from many groups, the bank began including
environmental groups and NGOs in its loans to mitigate the past effects of its development
policies that had prompted the criticism.
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SECOND SESSION
Leadership
Membership
Budget
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Leadership
• The president of the World Bank is, traditionally, an American.
• The President of the Bank is the president of the entire World Bank Group.
• The US Secretary of Treasury sits on the World Bank’s Board of Governors, the Bank’s highest
governing body.
• The vice presidents of the Bank are its principal managers, in charge of regions, sectors,
networks and functions.
• The Boards of Directors consist of the World Bank Group President and 25 Executive Directors.
• On 23 March 2012, U.S. President Barack Obama announced that the United States would
nominate Jim Yong Kim as the next president of the Bank. He served two terms till 2017.
• Current President is David Malpass
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Membership
• The International Bank for Reconstruction and Development (IBRD) has 189
member countries, while the International Development Association (IDA) has 173
members.
• Each member state of IBRD should also be a member of the International
Monetary Fund (IMF) and only members of IBRD are allowed to join other
institutions within the Bank (such as IDA).
• The World Bank or the World Bank Group is also a sitting observer in the United
Nations Development Group.
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Budget
• Although the Bank is not a profit-maximizing institution, strong financial
performance is important to sustainably support development goals.
• Profit and Interest Receive from Loans through IBRD
• Contribution from Donor Members who meet every three years to replenish its
funds
• Repayment of IDA credits
• Strong shareholder support for IBRD and IDA
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THIRD SESSION
Shareholders
Criticism
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Shareholders of the World Bank
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Criticism
• State domination of international trade
• Joseph Stiglitz, former Chief Economist of the Bank, argued that the so-called free
market reform policies that the Bank advocates are often harmful to economic
development if implemented badly, too quickly in the wrong sequence or in weak,
uncompetitive economies.
• Being governed by small number of economically powerful countries despite having
189 members.
• Too much focus on privatization and increase in GDP that not necessarily result to
growth in better living standards.
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Thank You!
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