WORLD BANK

o The World Bank is a United Nations international financial

institution that provides loans to developing countries for capital
programs. The World Bank is a component of the World Bank Group,
and a member of the United Nations Development Group.
o Their motto is Working for a World Free of Poverty

HISTORY
o The World Bank was created at the1944 Bretton Woods Conference,
and is headquartered in Washington, D.C.
o Lord Keynes and Harry Dexter White are the "founding fathers" of both
the World Bank and the International Monetary Fund (IMF).
o In 1947, the first ever loan was approved to Credit National of France
for $250 million.
o Initially, till 1968, the World Bank mainly lent money, following fiscal
conservatism.
o From 1968 to 1980, the bank concentrated on meeting the basic needs
of people in the developing world.
o Through the 1980s, the focus was on structural adjustment and
streamlining the economies of several developing countries.
o Today, the World Bank integrates its lending practices to meet
environmental and infrastructural requirements in the world.

OBJECTIVES
1. To provide long-run capital to member countries for economic
reconstruction and development.
2. To induce long-run capital investment for assuring Balance of Payments
(BoP) equilibrium and balanced development of international trade.
3. To provide guarantee for loans granted to small and large units and other
projects of member countries.

4. To ensure the implementation of development projects so as to bring

about a smooth transference from a war-time to peace economy.
5. To promote capital investment in member countries by the following ways;
(a) To provide guarantee on private loans or capital investment.
(b)If private capital is not available even after providing guarantee, then
IBRD provides loans for productive activities on considerate conditions.

FUNCTIONS
1. World Bank provides various technical services to the member countries.
For this purpose, the Bank has established The Economic Development
Institute and a Staff College in Washington.
2. Bank can grant loans to a member country up to 20% of its share in the
paid-up capital.
3. The quantities of loans, interest rate and terms and conditions are
determined by the Bank itself.
4. Generally, Bank grants loans for a particular project duly submitted to the
Bank by the member country.
5. The debtor nation has to repay either in reserve currencies or in the
currency in which the loan was sanctioned.
6. Bank also provides loan to private investors belonging to member
countries on its own guarantee, but for this loan private investors have to
seek prior permission from those counties where this amount will be
collected.

CRITERIA
o Stronger and more inclusive growth in Africa and fragile states
o More effort in health and education
o Integration of the development and environment agendas
o More and better aid

o Movement on trade negotiations

o Stronger and more focused support from multilateral institutions like
the World Bank

ORGANIZATION AND STRUCTURE

o The organization of the bank consists of the Board of Governors, the
Board of Executive Directors and the Advisory Committee, the Loan
Committee and the president and other staff members. All the powers
of the bank are vested in the Board of Governors which is the supreme
policy making body of the bank.

LIST OF PRESIDENTS
1. Eugene Meyer
2. John J. McCloy
3. Eugene R. Black, Sr.
4. George Woods
5. Robert McNamara
6. Alden W. Clausen
7. Barber Conable
8. Lewis T. Preston
9. Sir James Wolfensohn
10. Paul Wolfowitz
11. Robert Zoellick
12. Jim Yong Kim

REFERENCES:

http://en.wikipedia.org/wiki/World_Bank
http://www.yourarticlelibrary.com/economics/world-bank-its-objectives-andfunctions/23534/
http://www.worldbank.org/mdgs/
http://www.slideshare.net/daniMD/world-bank-2583368?related=1