t he w orld b ank g roup rohini sengupta & sreya vaidyanathan
TRANSCRIPT
THE WORLD BANK GROUPRohini Sengupta & Sreya Vaidyanathan
HISTORY
Established in1944 at the Bretton Woods Summit in New Hampshire
Conceived for the reconstruction Europe
International Bank of Reconstruction and Development First loan to $250 million to France Offices setup in Paris, Prague, and Copenhagen
TRANSITION
Transitioned and expanded responsibilities in the 1980s Macroeconomics and debt rescheduling Social and environmental issues
Criticisms prompted: Waphens Report Inspection Panel 1994 Annual Meeting in Madrid
Larger role in global policy Expanded to 5 financial & banking agencies –
each with its own Articles of Agreement
PURPOSE
Mandate has evolved: worldwide poverty alleviation
Source of technical and financial assistance for developing countries Low interest loans, interest free credits, grants Supports investment Trust fund partnerships
Policy advice, research & analysis, technical assistance
Still focuses on post-war reconstruction
SIX STRATEGIC THEMES
Focus on… Poorest countries Fragile/conflict affected states The Arab world Middle income countries Global public goods issues Education
MEMBERSHIP AND LEADERSHIP Current President: Rober B. Zoellick 187 Members
US, UK, France, Germany, and Japan are largest shareholders
Ultimate decision making power with member countries: Board of Governors (senior decision-making body) Board of Executives (25 members)
Each member has one Governor and one Alternate
5 Largest shareholders appoint Directors, other 20 are elected
ADVANTAGES/BENEFITS OF MEMBERSHIP
Loans to developing countries for capital projects
Benefits economic prosperity in the long run Free trade with foreign investment & capital
investment Foreign investment Access to capital markets Opens new markets Falling extreme poverty rates Increase in general education rates
DISADVANTAGES/ CRITICISMS
Structural adjustment “worsens life for the poor” Only effective in countries with stable institutional
frameworks (Sub-Saharan Africa worse) Global inequity Shock therapy
Detrimental to health, environment & cultural diversity Brazilian Kayapo People
Run by a small number of economically prosperous countries American leaders
“Sovereign immunity”
WORLD BANK & AP6: MEXICO
Worldbank.org
WORLD BANK & AP6
MEXICO: 18 active projects Oportunidades Program
5.8 million of the poorest “provides cash on condition health, education
and nutrition targets are met, including regular medical check-ups and school attendance” (WB Press Release 2010)
Extreme poverty 10.4% 10.2% NIGERIA: 130 loans Fadama II project (agriculture), microfinance
projects, HIV/AIDS, education, water projects
WORLD BANK & AP6:
IRAN Active project: Alborz Integrated Land & Water Management Increases agricultural productivity US $120 mil May 2005- October 2012
CHINA: 107 active projects, 315 completed projects
US $1,770.72 mil loaned in 2011
Railroad programs, health programs, urban development programs, agricultural programs
WORLD BANK & AP6:
UK: 3.75% voting power Represented on Board of Governors 2007/2008: 1.4 billion pounds loaned RUSSIA: 10 investment projects in Russia
totaling US$ 987 million (2012) More than 70 projects Public administration and fiscal policy,
human and infrastructure development, energy efficiency and environmental and forestry protection
WORKS CITED "Amazon Indians Attack Official Over Dam Project." National Geographic. National
Geographic Society. Web. 26 Mar. 2012. <http://news.nationalgeographic.com/news/2008/05/080521-AP-indians-dam.html>.
"EDITORIAL - Criticism of World Trade Organization, World Bank and International Monetary Fund - Editorial." CBS Interactive. CBS Interactive Business Network, 01 Sept. 2000. Web. 26 Mar. 2012. <http://findarticles.com/p/articles/mi_m2465/is_6_30/ai_65653637/>.
"Mexico." Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/mexico/overview>.
"Russian Federation." Russia Projects & Programs. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/russia/projects>.
“UK.” Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/uk/overview
“China.” Overview. World Bank. Web. 26 Mar. 2012. <http://www.worldbank.org/en/country/China/overview
"Leadership." About Us. 19 Jan. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:22428930~menuPK:1697011~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.
"Site Tools." About Us. The World Bank Group, 31 Jan. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20653660~menuPK:72312~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.
"What We Do." About Us. The World Bank Group, 8 Mar. 2012. Web. 26 Mar. 2012. <http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20103838~menuPK:1696997~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>.