World Bank Group

Working for a world free of poverty

Presentation for participants of Diplomatic Course

at the Foreign Services Academy-- March 2, 2005
 The World Bank
™ International Bank for
Reconstruction and
Development established
July 1944, Bretton Woods,
New Hampshire.
™ Its mission? To rebuild
Europe after World War II.

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 World Bank Borrowers

™ France was the first borrower for

$250 million to finance post-war
reconstruction in 1946.
™ Many developed nations who are
now donors, were also borrowers,
such as Austria, Australia, Denmark,
Japan, Italy, Slovenia, and Greece.

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 What Does the World Bank Do Now?
™ One of the world's largest sources of
development assistance.
™ In fiscal 2004, it provided US$20.1
billion in loans to developing countries.
™ It works in more than 100 developing
economies.
™ Primary focus: poverty reduction

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 Where Does the Bank
Work Today?

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 Borrowers Today
The largest IDA borrowers today
include India, Vietnam, Nigeria,
Bangladesh and Pakistan

The largest IBRD borrowers today are

India, Brazil, Turkey, China, Romania
and Argentina

The top 10 IBRD/IDA blend borrowers

are India, Brazil, Turkey, China,
Indonesia, Pakistan, Colombia,
Vietnam, Romania and Nigeria
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 Partners
™ The World Bank works with a wide
range of partners including:
‹ Bilateral development agencies
‹ Multilateral Dev Banks
‹ United Nations
‹ International Monetary Fund
‹ Civil Society
‹ Parliamentarians
‹ Academic Community and Students
‹ Youth

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Progress toward Poverty Reduction
Over the last 30 years, in
developing countries:
™ Life expectancy has increased
from 55 to 65 years.
™ The number of literate adults has
doubled.
™ The total number of children in
primary school has risen from
411 million to 681 million.
™ Infant mortality has been reduced
by 50 percent
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 However, Many Challenges Remain

Although the proportion of people living on less

than $1 a day has decreased from 40% to 21%:
™ Poverty is on the rise in Latin America and
Caribbean, Eastern Europe and Central Asia,
and Africa.
™ 2 billion people do not have access to clean
drinking water.
™ 115 million children are not in school.
™ More than 40 million people are living with HIV-
AIDS.

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 Agreement Needed on How to
Move Forward

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 Why? The World in 2050
™ World income will be $135 trillion, compared to
$35 trillion today
™ 40 percent of world income will be in
developing countries compared to 20 percent
today
™ 65 percent of people will live in urban areas.
™ Population of 9 billion as opposed to 6 billion
today
™ Life expectancy of 72 years up from 64 today
™ Death rate of children under 5 decreases to 17
per 1,000 live births down from 85.

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 Millennium Development Goals
™ The goals set targets for reductions
in poverty, improvements in health
and education, and protection of
the environment.
™ They were adopted by the
countries attending the Millennium
Summit in New York at the United
Nations.
™ They measure progress from 1990
and look toward what can be
accomplished by 2015.

http://www.developmentgoals.org/
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 Priorities Today
™ Improve delivery of basic education
and health services.
™ Provide social protection for
vulnerable groups.
™ Deliver access to services—
infrastructure.
™ Protect the environment.
™ Support and encourage private
business development.
™ Promote reforms to create a stable
economic environment.

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 Bank Funding, Research, and
Learning
™ Education: $1.6 billion
™ HIV-AIDS: $1.6 billion for UNAIDS
™ Health: $3 billion for health, nutrition, and
population projects.
™ Debt Relief: 27 countries
™ Environment: $1.2 billion
™ Partnerships
™ Anti-corruption and Governance
™ Post-Conflict Reconstruction
™ Community-Driven Development

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 Today’s World Bank Group
World Bank Group

International Bank International International Mutilateral International Center

for Reconstruction Development Finance Investment for the Settlement of
and Development Association Corporation Guarantee Agency Investment Disputes

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 Source of Funds for Bank Loans
and Credits
™IBRD has a AAA bond rating
and raises funds on capital
markets.

™IDA credits and grants to the

world’s poorest countries are
funded largely from donor
contributions, with additional
funds from IBRD profits and
credit repayments.

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 How the World Bank Operates
™ 184 Member Countries
Board of Governors appoint their Governors
™ Governors delegate specific
duties to Executive Directors
™ President of the World Bank
Executive Directors reports to the Board of
Executive Directors

Office of the President

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 Annual and Spring
Meetings
™ Each autumn, the Boards of Governors
of the World Bank Group and the IMF
hold their Annual Meetings

™ Spring Meetings the joint Bank-IMF

Development Committee and the IMF’s
International Monetary and Financial
Committee hold meetings to discuss
progress on the work of the Bank and
the Fund.

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 World Bank Staff
™ Total Bank staff numbers about
10,000. 7,000 at HQ and 3,000 in
the field.
™ Developing country nationals
represent 55% of total staff at HQ.

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The World Bank Group
www.worldbank.org

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 World Bank in Pakistan

www.worldbank.org.pk

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 Key Outcomes, FY00-04
Macro turnaround; debt burden reduced and on solid
downward trajectory
Banking Sector 80% privatized, under strong regulator
CBR reforms well advanced
Telecom sector opened to competition; private investors
entering market
Public financial management strengthened.
Power Sector about to be corporatized into separate
generation and regional distribution entities
Automatic price adjustment mechanisms for oil & gas
adopted
Major trade reforms; tariffs reduced and streamlined
Regulatory and legal reforms to reduce cost of doing
business
Local Government elected
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 Priority Challenges
Sustaining growth while maintaining
macroeconomic stability
Irrigation system rehabilitation and
improvement
Power sector performance improved--- reduce
fiscal drain
Lower costs of doing business to improve
competitiveness
Improved social service delivery
Education strategy implemented
Government statistical system strengthened
Civil service reformed
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 Lending Volumes in
Recent Years--FY02-05

FY02 FY03 FY04 FY05

Actual Actual Actual Indicative
US$ million US$ million US$ million US$ million
Project Lending 300 106 591 255

Adjustment Lending 500 190 190 700

Total 800 296 781 955

Of Which: IDA 800 296 731 600
IBRD - - 50 355
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 Portfolio Of On-going Projects
‰16 Projects under implementation
‰Net Commitments of US$1.2 billion
-- Share of commitments:
* 35% Agriculture/ Environment
* 30% Finance & Private Sector
* 17% Infrastructure & Transport
* 7% Public Sector Management
* 8% Human Development
* 10% Others
‰Un-disbursed: US$800 million
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 IDA/IBRD share in the Portfolio
Increased IDA (interest free credits) share

IDA/ IBRD Loan Outstanding

10 0 0 0
9000
8000
7000
IBRD
6000
5000
4000
3000
IDA
2000
10 0 0
0
F Y9 9 F Y0 0 F Y0 1 F Y0 2 F Y0 3 F Y0 4 F Y0 5
P ro je c tio n s
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 Portfolio Disbursements
FY02-05
1,200

1,000

800
(USD $m)

600

400

200

0
FY00 FY01 FY02 FY03 FY04 FY05
(Indicative)

Disbursements (adj) Disbursement (inv) New Loans

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 Bank Lending Program
FY04/05
FY04 (Actual) FY05 (Planned)
¾ National Highways ¾ PRSC I (Complete)
Rehab ¾ Polio Eradication (Complete)
¾ PPAF II ¾ BSAC (Complete)
¾ Sindh OFWM ¾ Tax Administration Reform
¾ Pub. Sector TA (Complete)
¾ NWFP CIP ¾ Punjab Barrage Rehab (Board
¾ NWFP SAC II presentation in March)

¾ Punjab Education SAC¾ Punjab Education Reform- II

(Board presentation in March)

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 Bank Lending Program
FY06-09 Indicative
PRSC II, III Punjab Land Registration
NWFP SAC III Project
PIFRA II Sindh Water Sector
Provincial Development Improvement
Credits (Health, Punjab Water Irrigation
Education) Railways Modernization
Power – Trans/Dist National Highways -II
Punjab Urban Services Trade & Transport
Housing Finance Facilitation –II
Safety Nets Balochistan Irrigation
Balochistan Primary Private Power
Education Private Infrastructure
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 Analytical Studies FY04/05
& Beyond
FY04 (Actual)
FY05 (Planned)
¾ Financial Sector Assessment
¾ Water Sector CAS
¾ Devolution Study ¾ Gender Assessment
¾ Rural Factor Markets Study¾ NWFP Economic Report
¾ Punjab Economic Report
FY06/09 Indicative
Rural DPR Municipal Services Study
Economic Growth & Sector Strategies
Competitiveness (Health/Education)
Poverty Assessment Labor Market Study
Public Expenditure Review Administrative Barriers to
Provincial Economic Investment (FIAS)
Reports Transport Competitiveness
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Study