world bank and pakistan
TRANSCRIPT
Shahid Akbar Mc13153Jawad ahmad Mc13117Mohsin ali Mc13143Ghulam Baddar Mc13107Arsklan M. Din Mc13119
Who Runs the World Bank?
Robert Zoellick has been President of the World Bank since 2007.
Zoellick got his start working for President Ronald Reagan's Treasury Secretary, James Baker. Zoellick also worked in executive positions in Fannie Mae (1993-1997), the Office of Trade Representative (2001-2005),
the State Department (2005-2006) and Goldman Sachs (2006-2007)
World Bank Current PresidentJim Yong Kim
World Bank Headquarter, Washington D.C.; U.S.A.
World Bank is a United Nations international financial institution that provides loans to developing countries.
The World Bank is a component of the World Bank Group.
Member of the United Nations Development Group.
The World Bank's official goal is the reduction of poverty.
INTRODUCTION
INTRODUCTION
World Bank established in 1944
A family of five international organizations that make World Bank:
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA)3. International Finance Corporation (IFC)4. Multilateral Investment Guarantee Agency (MIGA)5. International Centre for Settlement of Investment
Disputes (ICSID)
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Since World Bank has lent and given grants and credits worth $400 billion.
Its money is spent on specific projects such as freeways and dams.
World bank also employs economists and policy people to tackle the causes of poverty in the poorest nations.
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The World Bank is not actually a bank in the common sense. Instead, it consists of two development institutions -- the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)-- owned by 186 member countries.
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In world Bank there are 25 members of Board of Directors.
Five of whom represent major contributors France, Germany, Japan, the UK and the U.S.
while the other countries are represented by the remaining 20 directors.
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The Bank has more than 10,000 employees from over 160 countries.
Two-thirds work in Washington, DC, with the rest stationed in 100 country offices in the developing world.
Vision & mission of the World Bank
The World Bank provides low-interest loans, interest-free credits and grants to developing countries.
The World Bank loans are usually to invest in education, health, and infrastructure.
The loans can also be used to modernize a country's financial sector, agriculture, and natural resources management.
International Bank forReconstruction and DevelopmentIBRD logo
Formation 1945Type Development finance institutio
nLegal status TreatyPurpose Development assistance,
Poverty reductionHeadquarters Washington, D.C., United
StatesMembership 188 countriesPresident of the World Bank Jim Yong KimParent organization World Bank GroupWebsite worldbank.org/ibrd
International Development Association
IDA logoFormation 1960Type Development finance ins
titutionLegal status TreatyPurpose Development assistance
,Poverty reductionHeadquarters Washington, D.CMembership 172 countriesPresident of the World Bank
Jim Yong Kim
Parent organization World Bank GroupWebsite worldbank.org/ida
International Finance CorporationIFC logo
Formation July 24, 1956Type Development finance institut
ionLegal status TreatyPurpose Private sector development,
Poverty reduction
Headquarters Washington, D.C.Membership 184 countriesExecutive Vice President & CEO
Jin-Yong Cai
Parent organization World Bank GroupWebsite ifc.org
Multilateral Investment Guarantee AgencyMIGA logo
Formation 1988Type Development finance instituti
onLegal status TreatyPurpose Political risk insurance,
foreign direct investment
Headquarters Washington, D.C.Membership 181 countriesExecutive Vice President Keiko HondaParent organization World Bank GroupWebsite miga.org
International Centre forSettlement of Investment Disputes
ICSID logoFormation 1966Type Dispute resolution organ
izationLegal status TreatyPurpose International arbitrationHeadquarters Washington, D.C.Membership 159 countriesSecretary-General Meg KinnearParent organization World Bank GroupWebsite icsid.worldbank.org
Capital Resources of World Bank:
The initial authorized capital of the World Bank was $ 10,000 million,
On June 30, 1996, the authorized capital of the Bank was $ 188 billion out of which $ 180.6 billion (96% of total authorized capital) was issued to member countries in the form of shares.
Continue Member countries repay the share amount to the
World Bank in the following ways:
2% of allotted share are repaid in gold, US dollar or Special Drawing Rights (SDR).
Every member country is free to repay 18% of its capital share in its own currency.
The remaining 80% share deposited by the member
country only on demand by the World Bank.
CONTRIBUTIONS BY NATIONS
COUNTRY RATES %U.S.A 16.39JAPAN 7.87GERMANY 4.49U.K 4.30FRANCE 4.30
WORLD BANK LOANS DISTRIBUTION
WORLD’S BANK TOP 7 BORROWERS1 MEXICO2 BRAZIL3 TURKEY4 PAKISTAN5 CHINA6 INDIA7 ARGENTINA
REGIONAL DISTRIBUTION OF WORLD BANK
LATIN AMERICA &THE CARIBBEAN REGION
$5.9 BILLION/26% OF THE TOTAL LENDING
SOUTH ASIA ACCOUNTED 16%OF ALL LOANS, GRANTS AND CREDITS
EUROPE & CENTRAL ASIA 17% WITH $4 BILLIONSOUTH ASIA 16% WITH $3.8 BILLIONEAST ASIA & THE PACIFIC 14% WITH $3.4 BILLIONMIDDLE EAST & NORTH AFRICA REGION
7% WITH $1.7 BILLION
Functions of World Bank:
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.
Bank can grant loans to a member country up to 20% of its share in the paid-up capital.
The quantities of loans, interest rate and terms and conditions are determined by the Bank itself.
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Generally, Bank grants loans for a particular project duly submitted to the Bank by the member country.
The debtor nation has to repay either in reserve currencies or in the currency in which the loan was sanctioned.
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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.
Role of world bank in International Business : The distinguishing feature of the World Bank
work on international trade is that it is an integral part of the Bank’s work on development and poverty reduction.
poverty reduction and provides technical assistance or policy advice to the governments towards an open trade regime.
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The Bank has also contributed significantly to the development of techniques and policy tools for analyzing the impact of trade policy reforms.
World Bank through policy-based loans has supported trade reforms in many developing countries, such as reduction of tariffs, elimination of quantitative restrictions or improvement of foreign exchange systems, etc.
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The continued engagement and resulting core of expertise in research and policy analysis helped to under in the significant expansion of trade-related activities that began in 2002.
The latter involves identifying emerging or neglected issues that are important for developing countries.
A major function of the research program is to address trade issues that are of global importance - such as the WTO and the design/impact of regional integration agreements on both members and excluded countries.
World Bank supports two broad goals in South East Europe: (i) poverty reduction and (ii) economic and social development,
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World Bank has been supporting the region through wide range of development projects, collectively amounting to approximately US $5.9 billion.
These projects are directed towards a number of sectors, including: infrastructure and energy, private sector development, poverty reduction and economic management, social sectors, rural development and the environment.
Objectives of world Bank:
To provide long-run capital to member countries for economic reconstruction and development.
To induce long-run capital investment for assuring Balance of Payments (Bop) equilibrium and balanced development of international trade.
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To provide guarantee for loans granted to small and large units and other projects of member countries.
To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy.
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To provide guarantee on private loans or capital investment.
If private capital is not available even after providing guarantee, then IBRD provides loans for productive activities on considerate conditions.
The International Monetary Fund and the World Bank at a Glance
International Monetary Fund World Bank
• oversees the international monetary system
• seeks to promote the economic development of the world's poorer countries
• promotes exchange stability and orderly exchange relations among its member countries
• assists developing countries through long-term financing of development projects and programs
• assists all members--both industrial and developing countries--that find themselves in temporary balance of payments difficulties by providing short- to medium-term credits
• provides to the poorest developing countries whose per capita GNP is less than $865 a year special financial assistance through the International Development Association (IDA)
The International Monetary Fund and the World Bank at a Glance cont.International Monetary Fund World Bank
• supplements the currency reserves of its members through the allocation of SDRs (special drawing rights); to date SDR 21.4 billion has been issued to member countries in proportion to their quotas
• encourages private enterprises in developing countries through its affiliate, the International Finance Corporation (IFC)
• draws its financial resources principally from the quota subscriptions of its member countries
• acquires most of its financial resources by borrowing on the international bond market
• has at its disposal fully paid-in quotas now totaling SDR 145 billion (about $215 billion)
• has an authorized capital of $184 billion, of which members pay in about 10 percent
• has a staff of 2,300 drawn from 182 member countries
• has a staff of 7,000 drawn from 180 member countries
World bank and Pakistan
sustaining high and broad based growth, and improving competitiveness
improving governance
improving lives and protecting the vulnerable
The world bank provides for infrastructure projects and loans to countries like Pakistan
Main role of the world bank in Pakistan
FEDERAL LEVEL….
THE WORLD BANK SUPPORT ENCOURAGING GROWTH
Last week, Pakistan has signed with the World Bank the Second Fiscally Sustainable and Inclusive Growth Development Policy Credit of $500m to support its efforts to reinvigorate growth and stabilize the economy.
EMPLOYEMENT GENERATIONthere are many project that are started in the
Pakistan that generate a lot of employment.
PROVINCIAL LEVEL:
The world bank take the following at the provincial level
TO PUNJAB KPK SIND AND BOLOCHISTAN TO HELP IMPROVE
IRRIGATION
EDUCATION
HUMAN DEVELOPMENT
World bank and Pakistan
Providing assistance to Pakistan in various fields…
EducationThe education policy package the Bank is supporting at the
provincial and local level focuses on free tuition and books, upgrading school facilities, contract teacher recruitment to fill vacancies, public funding of non-government – independent, low-cost private –education, eventually through grade ten. Credits totaling $300 million from the World Bank’s give to education department.
Banking At the time of the need of any financial crices the bank take the Loan from the world bank.
AgricultureWASHINGTON, March 20, 2015 ─ The World Bank today approved US$187 million for a Sindh Irrigated Agricultural Productivity Enhancement Project (SIAPEP) to help improve irrigation water management at tertiary and field levels in Sindh.
Macroeconomic Stability and Government Effectiveness:
The DP-II is meant to boost economic growth through fostering private and financial sector development, and mobilizing revenue while expanding fiscal space to meet social needs.
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Energy problemsA $1.0 billion loan was approved for energy and revenue support during the current financial year
provides the poor greater access to health care
Improve conditions of women in Pakistan.
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The World Bank is the main financer of Pakistan’s Poverty Alleviation Fund, whichprovides assistance to poor communities throughout the country. The Fund has been working with nearly 40 local organizations and has extended micro-credit loans to more than 275 thousand borrowers, of which 45 percent are women.
Poverty:
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Technical Assistance
The world bank also made a lot of the investment to the Pakistan for the technical Assistance.
Project in Pakistan
Significance of the topic “Role of World Bank towards Developing economics in Pakistan:
The significance of the topic is because Pakistan is a Developing Economy
There are several development projects which are financially supported by world bank
Active projects 47 Closed projects 275 Dropped projects 32 Projects in Pipeline 7
Sindh Global Partnership for Education Project
Project ID P146451
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
April 2, 2015
Closing Date September 29, 2017
Total Project Cost** US$ 8293.40 million
Total project cost includes funding from World Bank
PK Sindh Public Sector Management Reform Project
Project ID P145617
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
January 28, 2015
Closing Date August 31, 2020
Total Project Cost** US$ 282.00 million
Total project cost includes funding from World Bank
PK-Sindh Barrages Improvement Phase I Project
Project ID P131324
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
June 19, 2015
Closing Date December 22, 2020
Total Project Cost** US$ 208.00 million
Total project cost includes funding from World Bank
PK: Sindh Agricultural Growth Project
July 08, 2014 - The World Bank’s Board of Executive Directors approved on Monday the Sindh Agricultural Growth Project in the amount of US$ 76.4 million. The project aims to improve the productivity and market access of small and medium producers in important commodity value chains. The project would benefit approximately 112,000 farmers covering over 66,000 hectares.
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Enhanced Nutrition for Mothers and Children
The world bank give a lot amount to the enhancement the nutrition for the mother And the children at Pakistan and international level
Competitive Industries Project for Khyber Pakhtunkhwa
Grant Amount: US$ 9.0 million Project Effectiveness Date: August 2013 Project Closing Date: June 30, 2015 The Project Management Unit (PMU) has signed a contract worth US$ 3.1 million for the procurement of excavators for the machinery pool.
Remaining project Pakistan: Punjab Public Management Reform Program
Dasu Hydropower Stage I Project
IDA Partial Credit Guarantee for Dasu
Tarbela Fourth Extension Hydropower Project
MDTF KP Emergency Roads Recovery Project
MDTF KP Emergency Roads Recovery Project
Punjab Health Sector Reform Project
TO HELP PAKISTAN FIGHT AGAINST POLIO:
Pakistan: Punjab Public Management Reform Program 50.0
Project ID P132234
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
November 14, 2013
Closing Date December 31, 2018
Total Project Cost** US$ 50.00 million
Total project cost includes funding from World Bank
47 Active Projects and commitment Amounts in U.S. million $ for Pakistan year 2013-14
Dasu Hydropower Stage I Project
Project ID P121507
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)June 10, 2014
Closing Date June 30, 2022
Total Project Cost** US$ 3787.70 million
Commitment Amount US$ 588.40 million
Total project cost includes funding from World Bank
IDA Partial Credit Guarantee for Dasu
Project ID P150756
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
June 10, 2014
Closing Date N/A
Total Project Cost**US$ 460.00 million
Total project cost includes funding from World Ban
Tarbela Fourth Extension Hydropower ProjectProject ID P115893
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
March 20, 2012
Closing Date December 31, 2018
Total Project Cost**US$ 914.00 million
Total project cost includes funding from World Bank
MDTF KP Emergency Roads Recovery Project
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Project ID P149311
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
April 21, 2014
Closing Date October 31, 2015
Total Project Cost** US$ 9.00 million
Total project cost includes funding from World Bank
MDTF KP Emergency Roads Recovery Project
Project ID P125584
Country Pakistan
Region South Asia
Status Closed
Approval Date (as of board presentation)
July 16, 2011
Closing Date June 30, 2015
Total Project Cost** US$ 8.00 million
Total project cost includes funding from World Ban
Punjab Health Sector Reform Project
Project ID P123394
Country Pakistan
Region South Asia
Status Active
Approval Date (as of board presentation)
May 31, 2013
Closing Date December 31, 2017
Total Project Cost** US$ 1116.50 million
Total project cost includes funding from World Ban
TO HELP PAKISTAN FIGHT AGAINST POLIO:THEY APPROVED 2 PROJECTS
TO PURCHASE A POLIO VACINE
It was started to reduce poverty but it support United States’ business interests.
It is an instrument for the promotion of U.S. or Western interests. The decision-making structure is undemocratic. Developing Countries still Developing. Why?
CRITICISM
Where as Pakistan is gifted with multiple resources,
capabilities and strength Pakistan must do development projects on its own financial resources. On the other side Pakistan must fill up loop wholes in its govt. administrative
institutions and bureaucracy. Increase, improve and implement on direct tax collection system. To finish imbalancement of between imports and exports
Recommendations
