“Working for a World free of
poverty”
The World Bank
Assigned By: Presented by:
Mr. Rojan Karki Archana Dahal, 05
Visiting Faculty Rohan Jungh Thapa, 25
DoA Smrity Thapa, 26
Kathmandu University Ganga Pd. Yadav, 29
Presentation Outline
1 Background
4 Millennium
Development Goals
2 5 Agencies of the
World Bank 5 Differences and
similarities with
IMF
3 Organizational Bodies 6 World Bank in Nepal
Background
• The world bank is an international financial institution that
provides loans to developing countries for capital programs.
• Group of five international organizations that provide financial &
technical assistance in areas such as health, education,
infrastructure, agriculture and economic development
Mission
• To reduce poverty in the globe
• Improve the living standard
• To promote sustainable development through
loans, guarantees, risk management and advisory
services
Overview of the world bank
• The world bank was originally established
to support reconstruction in Europe after
World war II.
• On June 2, 2023, Ajay Banga became the 14th
president of the world bank group.
World bank
• Headquarters-
Washington DC, USA
• Established-
July 1, 1944 by a conference of 44 governments in Bretton woods,
New Hampshire, USA
• Membership-
189 countries
• Official language-
English, French, Russian, Spanish, Arabic, Chinese
• Parent organization-
World bank group
• Website-
www.worldbank.org
Special features of world
bank
Its uses its financial
resources, its staff,
World’s largest source Helping the poorest and extensive
of funding for the people and the experience to help
developing world poorest countries developing countries,
reduce poverty,
improve the quality of
life
Function
• offers low-interest loans, zero-interest credits
• provides technical expertise and policy advice to
governments
• promote sustainable development, focusing on issues like
climate change, renewable energy, and environmental
sustainability
• Reduce poverty
world bank
It has set two goals for the world to
achieve by 2030:
• End extreme poverty by decreasing the percentage of
people living on less than $ 1.25 a day to no more than 3%
• Promote shared prosperity by fostering the income growth
of the bottom 40% for every country
Five Agencies of the World Bank
• They collectively work to reduce poverty, support development, and foster
economic growth worldwide
1. International Bank for Reconstruction and Development (IBRD)
Established in 1944 to help Europe rebuild after World War II.
• Function: It provides loans and financial services to middle-
income countries to support development projects, like building
infrastructure and improving education systems.
• Focus: Sustainable economic development.
Five Agencies of the World Bank
2. International Development Association (IDA)
• Established in 1960, IDA focuses on helping the world’s poorest
countries by offering concessional loans and grants.
• Function: Provides interest-free or low-interest financing for programs
that improve health, education, agriculture, and other critical sectors.
• Focus: Reducing inequalities and improving quality of life in low-
income nations
Five Agencies of the World Bank
3. International Finance Corporation (IFC)
• Founded in 1956, IFC is the private sector arm of the World Bank Group
• Function: It promotes private-sector investment in developing countries
by offering loans, equity investments, and advisory services to businesses
and industries.
• Focus: Job creation and economic growth through private sector
development.
Five Agencies of the World Bank
4. Multilateral Investment Guarantee Agency (MIGA)
• Established in 1988, MIGA supports foreign investment in developing
countries by reducing risks.
• Function: Provides political risk insurance and credit enhancement to
investors and lenders, mitigating risks like expropriation, currency
transfer restrictions, and war.
• Focus: Encouraging investments in high-risk environments.
Five Agencies of the World Bank
5. International Centre for Settlement of Investment Disputes (ICSID)
• Established in 1966, ICSID facilitates the resolution of disputes between
foreign investors and governments
• Function: Offers arbitration and conciliation services to ensure fair
resolution of investment disputes.
• Focus: Promoting a secure environment for international investments.
Summary
Agency Established Primary Role Beneficiaries
Provides financial products to middle-
Middle-income and
IBRD 1944 income and creditworthy low-income
low-income countries.
countries.
Offers concessional loans and grants to
IDA 1960 Poorest countries.
the world’s poorest countries.
Supports private sector development in Private companies in
IFC 1956
emerging markets. developing countries.
Promotes foreign investment by offering
MIGA 1988 Foreign investors.
political risk insurance.
Resolves investment disputes between Governments and
ICSID 1966
governments and foreign investors. investors.
Member Countries
The World Bank Group is composed of 189
member countries, all of which are part of the
International Bank for Reconstruction and
Development (IBRD). Membership is key to
accessing the Bank’s financial and advisory
resources, and it allows countries to participate
in the governance of the institution.
How to Become a Member?
Membership in the IMF:
To join the World Bank, a country must first become a
member of the International Monetary Fund (IMF).
Subscription to Shares:
Each member is required to subscribe to shares of the IBRD’s
capital stock, which determines their financial commitment
and voting power.
How to Become a Member?
Acceptance of Articles of Agreement:
Countries must formally agree to the Bank’s founding
documents, such as the Articles of Agreement for IBRD and
other World Bank agencies they wish to join.
Organizational bodies
1. Board of Governers
Each member country appoints a governor, usually the country’s finance minister or
central bank governor.
2. Board of Executive Directors
o There are 25 Executive Directors, representing member countries or groups of
countries (constituencies).
o Some large shareholders like the United States, Japan, China, Germany, and
the UK have their own representatives.
Organizational bodies
3. The President
Elected by the Board of Executive Directors
Ajay Banga is the current president, having started his five-year term on
June 2, 2023. and will serve a five-year term, as is customary for World
Bank presidents. His term will end on June 2, 2028
Organizational bodies
4. Voting Power
• Voting power is determined by the number of shares a member country
subscribes to in the Bank’s capital. Wealthier countries hold more
shares and therefore have greater influence, though decisions often
seek consensus.
Organizational bodies
5. Advisory Bodies
• The Bank also receives input from technical and advisory committees,
including specialized panels, to enhance transparency and decision-
making.
Active areas of World Bank
o Agriculture and rural development o Industry
o Conflict and development o International economies and trade
o Development operations and o Labor and social protections
activities
o Economic policy o Law and justice
o Education o Poverty reduction
o Energy o Trade
o Environment
o Financial sector o Transport
o Gender o Urban development
o Governance o Water resources, supply and salination
o Health, nutrition and population
o Social development
Role of Board of Governers
-All powers of the bank are vested in the Boards of governers; it is
the Banks senior decision – making body
-The Boards of Governors has delegated all powers to the executive
Directors except those mentioned in the Articles of Agreement. The
powers include:
▪ Admit and suspend members
▪ Increase or decrease the authorized capital stock
▪ Determine the distribution of the net income of the bank
▪ Make formal comprehensive arrangements to cooperate with
other international organizations
▪ Suspend permanently the operations of the bank
▪ Approve amendments to the Articles of Agreement.
The world bank and on what conditions
▪ Any member country can propose a loan
▪ A detailed proposal goes to the board
▪ A simple majority of votes(no country can veto a loan)
▪ Apparently, all decisions are taken on technical and economic grounds
with no potential political influence.
The 8 Millennium Development Goals
Millennium Development Goals (MDGs)
UN-led initiative (2000-2015) with 8 global goals:
1. Eradicate extreme poverty and hunger.
2. Achieve universal primary education.
3. Promote gender equality.
4. Reduce child mortality.
5. Improve maternal health.
6. Combat HIV/AIDS, malaria, and other diseases.
7. Ensure environmental sustainability.
8. Develop a global partnership for development.
How MDGs Are Related to the World Bank
The aim of the MDGs is to reduce poverty while improving health, education, and the
environment. These goals were endorsed by 189 countries at the September 2000 United Nations
(UN) Millennium Assembly in New York. They help focus the efforts of the World Bank Group,
other multilateral organizations, governments, and other partners in the development community
on significant, measurable improvements in the lives of poor people in developing countries.
Since 2004, the World Bank in partnership with the International Monetary Fund (IMF) has
published the annual Global Monitoring Report, which monitors the performance of donor
countries, developing countries, and international financial institutions in delivering on their
commitments to support achievement of the MDGs.
● The World Bank supported MDGs through financial aid and technical
expertise.
● Focused on poverty reduction, education, healthcare, and environmental
sustainability.
● Played a role in tracking progress and providing data for MDG monitoring.
Transition to Sustainable Development Goals (SDGs)
Adopted in 2015, the SDGs expanded the development agenda with 17 goals
addressing broader, interconnected challenges such as climate action,
inequality, peace, and partnerships.
● From MDGs to SDGs (2015-2030):
● The SDGs expanded the MDGs' scope to include climate action,
innovation, and reduced inequalities.
● The World Bank remains a pivotal partner in achieving the SDGs.
Similarities
And
Distinction
With IMF
Simalarities With IMF
Partners in Focus on
Global Economic
Economy Growth
Owned by
Collaborating
Member
for the Better
Countries
Simalarities With IMF
Partners in
Both the IMF and the World Bank are like two important pillars
Global that support the global economy.
They work together to keep the world's economy stable and
Economy growing.
Owned by
These organizations are owned and controlled by the governments of
Member their member countries. This means that the member countries decide
how these organizations are run.
Countries
Simalarities With IMF
Both the IMF and the World Bank are concerned with economic
Focus on
issues. They work hard to help countries grow their economies and Economic
improve the lives of their people.
Growth
Staff members from both organizations often work together, attending
conferences, sharing information, and even going on joint missions to
help countries.
Collaborating
This collaboration helps them achieve their shared goals more for the Better
effectively.
Distinction With IMF
Funding
Primary
Sources
Focus
Assistance and Size and
Goals Structure
Distinction With IMF
Primary Focus Funding Sources
World Bank IMF World Bank IMF
- member
- Short term
- Long term countries
economic - member
economic - borrowing
stability countries' quotas,
development from capital
- Provide which are based
- Provide loans markets,
financial on their economic
and grants - profits from
assistance, size and strength.
its
policy advice.
investments.
Distinction With IMF
Assistance and Goals Size and Structure
World Bank IMF World Bank IMF
- countries
experiencing
economic
- both low- difficulties, - generally
income and such as larger and - Simpler and
middle- balance of more complex smaller than WB
income payments than the IMF
countries problems or
financial
crises.
World Bank in Nepal
Finncial Assistance
The Bank's support increased significantly from initial projects to
reach US$ 1.3 billion in recent times.
World Bank in Nepal
Agreement with GoN
The International Development Association (IDA) of the World Bank Group has agreed to provide
US $ 100 million loan assistance equivalent to NRs 10.70 billion for the Financial Sector Stability
Development Policy Credit III. An agreement to this effect was signed and exchanged at the
Ministry of Finance.
Proposed credit will support four main policy areas:
(i)enhancing financial sector development;
(ii) restructuring and consolidating the financial system
(iii) strengthening the legal and regulatory framework and
(iv) enhancing the governance and transparency of the banking sector.
World Bank in Nepal
Agreement with GoN
The International Development Association (IDA) of the World Bank Group has agreed to provide
US $ 100 million loan assistance equivalent to NRs 10.70 billion for the Financial Sector Stability
Development Policy Credit III. An agreement to this effect was signed and exchanged at the
Ministry of Finance.
The government of Nepal has been receiving such budgetary support from the World Bank through
Development Policy Credit (DPC) window to implement policy reform in the financial sector
which is critical to enhance economic growth and for sound financial governance. Nepal has
already used such credit facility as first and second phases; the first credit in June 2013 and the
second credit in June 2015.
World Bank in Nepal
Finncial Assistance
The Bank's support increased
significantly from initial projects to
reach US$ 1.3 billion in recent times.
GoN and WB sign Exchange agreements for $100M
Concessional Loan and $3.84MGrant to strengthen Nepal’s
Health System (Press Release, Nov 2, 2023)
World Bank in Nepal
Infrastructure
Development
• Telecommunications (first credit approved in
1969)
• Highways
• Power systems
• Water supply and sanitation
• Agriculture and irrigation projects
Nepal Government, World Bank Sign US$100 million project
to Improve Provincial and Local roads (New Spotlight
Online, Aug 6, 2024)
World Bank in Nepal
Social Development
• Education and health programs
• Forest management and biodiversity conservation
• Environmental protection initiatives
• Support for disadvantaged populations and women
World Bank in Nepal
Partnership Building
• Collaboration with development organizations
• Working with private sector
• Engaging with Nepali civil society and NGOs
• Community-level partnerships
Conclusion
The World Bank has been a key partner in Nepal's journey
towards development, providing financial assistance and
technical expertise for infrastructure, poverty reduction, and
economic growth.
As Nepal continues to strive for sustainable development, a
strong partnership with the World Bank can be crucial in
achieving its goals.
Thank You
