The World Bank Org. & Inter-American Development Bank roles in the International System

Keon Gordon

Yizhao Li

Connor Price

The World Bank Group

1818 H St N.W. Washington, D.C.

Separate Entities…

Same Mission•The World Bank Group essentially consists of five separate organizations that work congruently under the same goal to reduce world poverty and promote economic growth in emerging markets & developing countries.

•The W.B. Group operates in partnership with more than 180 country to provide basic goods + services for nearly 2.5 billion people.

Brief history of the World Bank

• It was first established during 1944 in response to the aftermath of WWII to help European countries reconstruct and alleviate serve poverty conditions.

• the bank continues to helped countries worldwide manage their governments through reconstruction during harsh economic times such as natural disasters and post-war conflicts.

The International Bank for Reconstruction & Development (IBRD)

• Aims to reduce poverty in struggling middle-income countries and low-creditworthy countries that are incapable of managing themselves.

• Owned/Operated for the benefit of all its members.

• They promote sustainability through:• Low interest loans

• Interest-free credits + grants

• Risk management products

• Advisory services

The International Development Association (IDA)

• Their work focuses primarily on broad based growth & development in the worlds poorest countries.

• Supports countries that do not meet IBRD requirements.

• Provides funds for countries based on GDP level and success managing economy.

• Provides goods + services addressing basic education, sanitary, health, environmental, infrastructural, and institutional needs that improve living conditions.

• Also coordinates relief assistance for countries that can’t manage debt burdens (debt sustainability).

The International Finance Corporation (IFC)

• Works exclusively on private sectors in developing countries.

• Aims to reduce poverty by promoting trade & regional integration in emerging economies through:• Investment opportunities

• Advisory services

• Asset Management

The Multilateral Investment Guarantee Agency •Helps support economic growth and reduce poverty by providing political risks insurance guarantees to private sectors in developing countries.

• guarantees developing countries investment protection against non-commercial risks.

•Highly supports foreign direct investment into emerging economies.

•attracts investors

•Has issued more than $20 billion in risk insurance for projects in (various sectors) regions throughout the world.

The International Centre for Settlement of Investment Disputes (ICSID)

•Purpose of agency is to provide facilities for conciliation and arbitration of international investment disputes.

Inter-American Development Bank• Support efforts by Latin America and the Caribbean countries

to reduce poverty and inequality

• largest source of development financing for Latin America and the Caribbean

• we also provide loans, grants, technical assistance and do research

• have a strong financial position

• President: Luis Alberto Moreno

• Membership:

48 countries represented by the Board of Executive Directors

• Approved lending and grants in 2011: $10.9 billion

• Employees: About 2,000

• Offices: Headquarters in Washington, DC, with country offices in 26 borrowing countries, plus a regional office in Asia and office in Europe

• Clients: Central governments, provinces, municipalities, private firms and non-governmental organizations

• The IDB was founded in 1959 as a partnership between 19 Latin American countries and the United States

• Over the next several decades, the Bank expanded its membership, initially through the Western Hemisphere

• Today the IDB is owned by 48 member states, of which 26 are borrowing members in Latin America and the Caribbean

• Board of Governors delegates oversight of Bank operations to the Board of Executive Directors

• Each member country appoints a governor, whose voting power is proportional to the Bank’s capital

• Members of the Board of Executive Directors serve three-year terms in D.C.

• The President of the IDB is elected by the Board of Governors for a five-year term

Brief History• The idea of a development institution for Latin America

was first floated during the earliest efforts to create an inter-American system, at the First Pan-American Conference in 1890

• The Bank was formally created in 1959

• Throughout the years, the IDB has added new member countries and it increased its capital nine times

The Initiatives of the Inter American Development Bank

Goal of the Bank

To provide the financial and operational resources to aide in both social and economic

development in Latin America and The Caribbean

Housing• One of the IDB’s primary

goals is to prepare and allocate funds to low-income families for affordable housing.

• In Honduras-over 12,000 families are receiving subsidies to construct or enhance their homes• With a rising population rate

of over 2% this funding is crucial

• Also aides in neighborhood infrastructure (i.e. sewage, roads, etc.)

Hygiene and Sanitation• The Inter American Development

Bank also supports numerous efforts in developing strong hygiene systems for developing countries-55 communities impacted in most recent project

• In Bolivia-over 20 million dollars in capital was injected into funding projects for a better water supply system.

• Targeted small rural areas of the country

• Also aides in the development of better hygiene products such as showers and baths for low-income families

Childhood Development and Education

• The IDB also targets children in need of better education and early-development

• In Nicaragua-Over 80,000 children were funded with ~ 25 million dollars allocated towards education and physical and mental health• Allocation of funds to better

parenting programs and counseling services

Agriculture and Technology• Based upon need only, the IDB

also allocates funds to improve agriculture and irrigation to target farm areas• Effort to improve local economies

and markets

• Haiti-over 7,000 hectares of land were improved thanks to funds from the IDB that purchased better seeds, soil and pest control• Rice crops have improved

exponentially

• Invests in land studies to determine agricultural problems