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The World Bank
Multilateral Development Banks: Overview
• World Bank Group• International Bank for Reconstruction and
Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
--------------------------------------------------
• African Development Bank (AfDB)
---------------------------------------
• Asian Development Bank (AsDB)
--------------------------------------
• European Bank for Reconstruction and Development (EBRD)
------------------------------------
• Inter-American Development Bank (IDB)
• Primarily middle-income governments, also some creditworthy low-income
• Low-income governments• Private sector firms in developing countries (middle -and
low income countries)
----------------------------------------------• Middle -income governments, some creditworthy
low -income governments, and private sector firms in the region
-------------------------------------------------• Middle-income governments, some creditworthy low-
income governments, and private sector firms in the region
------------------------------------• Primarily private sector firms in developing countries in
the region, also developing -country governments in the region
-----------------------------• Middle-income governments, some creditworthy low-
income governments, and private sector firms in the region
The World Bank Group (WBG) is a family of
five international organizations that make
leveraged loans to developing countries.
It is the largest and most famous
development bank in the world and is an
observer at the United Nations Development
Group]
The bank is based in Washington, D.C. and
provided around $61 billion in loans and
assistance to "developing" and transition
countries in the 2014 fiscal year
The WBG came into formal existence on 27
December 1945 following international
ratification of the Bretton Woods agreements.
Commencing operations on 25 June 1946, it
approved its first loan on 9 May 1947
(US$250M to France for postwar
reconstruction, in real terms the largest loan
issued by the Bank to date).
All of the 193 UN members and Kosovo that
are WBG members participate at a minimum in
the IBRD. Most of them also participate in
some of the other 4 organizations
The World Bank is like a cooperative, made up
of 188 member countries. These member
countries, or shareholders, are represented by
a Board of Governors, who are the ultimate
policymakers at the World Bank
As of 15 November 2009 the United States
held 16.4% of total votes, Japan 7.9%,
Germany 4.5%, the United Kingdom 4.3%, and
France 4.3%.
As changes to the Bank's Charter require an
85% super-majority, the US can block any
major change in the Bank's governing structure
The President of the World Bank is nominated
by the President of the United States and
elected by the Bank's Board of Governors
World Bank Group agencies
The World Bank Group consists of:
• the International Bank for Reconstruction and Development (IBRD), established in 1945, which provides debt financing on the basis of sovereign guarantees;
• the International Finance Corporation (IFC), established in 1956, which provides various forms of financing without sovereign guarantees, primarily to the private sector;
• the International Development Association (IDA), established in 1960, which provides concessional financing (interest-free loans or grants), usually with sovereign guarantees;
• the International Centre for Settlement of Investment Disputes (ICSID), established in 1965, which works with governments to reduce investment risk;
• the Multilateral Investment Guarantee Agency (MIGA), established in 1988, which provides insurance against certain types of risk, including political risk, primarily to the private sector.
The term "World Bank" generally refers to just the IBRD and IDA, whereas the term World Bank Group or WBG is used to refer to all five institutions collectively.[8]
• The World Bank Institute is the capacity development branch of the World Bank, providing learning and other capacity-building programs to member countries.
The World Bank's (the IBRD and IDA's) activities are
focused on developing countries, in fields such as
human development (e.g. education, health),
agriculture and rural development (e.g. irrigation
and rural services), environmental protection (e.g.
pollution reduction, establishing and enforcing
regulations), infrastructure (e.g. roads, urban
regeneration, and electricity), large industrial
construction projects, and governance (e.g. anti-
corruption, legal institutions development).
The IBRD and IDA provide loans at preferential rates
to member countries, as well as grants to the
poorest countries. Loans or grants for specific
projects are often linked to wider policy changes in
the sector or the country's economy as a whole.
IDA resources
• IDA is financed largely by contributions from partner governments.
• Additional financing comes from transfers from IBRD’s net income, grants from the International Finance Corporation (IFC), and borrowers’ repayments of earlier IDA credits.
• Every three years, contributing partners and representatives of borrower countries meet to agree on IDA’s strategic direction, priorities, and financing for the subsequent three-year implementation period.
• Under the IDA17 Replenishment, which covers fiscal 2015–17, total resources amount to 33.7 billion in Special Drawing Rights (SDR) (equivalent to $50.8 billion).
• Cumulative Lending Commitments by Country (1947 onwards)
12,425 projects in 173 countries
Objectives
The World Bank Group has set two goals for the
world to achieve by 2030:
• End extreme poverty by decreasing the
percentage of people living on less than $1.90
a day to no more than 3%
• Promote shared prosperity by fostering the
income growth of the bottom 40% for every
country
Program Organization
GENERAL MANAGEMENT UNITS
• Development Economics
• Development Finance
• External and Corporate Relations
• Human Resources
• WBG Information and Technology Solutions
• Integrity Vice Presidency
• Legal
REGIONAL UNITS
• Africa
• East Asia & Pacific
• Europe & Central Asia
• Latin America & the Caribbean
• Middle East & North Africa
• South Asia
GLOBAL PRACTICES
• Agriculture
• Education
• Energy and Extractives
• Energy | Extractive Industries
• Environment and Natural Resources
• Finance and Markets
• Governance
• Health, Nutrition, and Population
CROSS-CUTTING SOLUTIONS AREAS
• Climate Change
• Fragility, Conflict, and Violence
• Gender
• Jobs
• Public-Private Partnerships
Fiscal 2015 Regional Highlights
Africa
• The World Bank approved $11.6 billion for 103 projects in fiscal 2015.
East Asia and Pacific »
• The World Bank approved $6.3 billion for 57 projects in fiscal 2015.
Middle East and North Africa
• The World Bank approved $3.5 billion for 17 projects in fiscal 2015.
Europe and Central Asia
• The World Bank approved $7.2 billion for 54 projects in fiscal 2015.
Latin America and the Caribbean
• The World Bank approved $6.0 billion for 33 projects in fiscal 2015.
South Asia
• The World Bank approved $7.9 billion for 38 projects in fiscal 2015.
World Bank Regional Commitments, Fiscal 2015
Region
• Africa 27%
• East Asia and Pacific 15%
• Europe and Central Asia 17%
• Latin & Caribbean 14%
• Middle East and N Africa 8%
• South Asia 18%
World Bank’s project cycle
1. Overall development strategy
The Bank’s Country Assistance Strategy (CAS) forms the blueprint
2. Project identification
The borrower and Bank analyze development strategies (e.g. PRSP and CAS) and generate project ideas. The Bank’s economic and sector research is influential at this stage.
After project identification, the Bank country team creates a Project Concept Note (PCN), an internal document of four to five pages. The Project Information Document (PID) is prepared after an internal Bank review of the PCN and is released to the public. It contains information on the project’s objectives, a brief description and the name of the World Bank Task Manager who is supervising the project.
World Bank’s project cycle
3. Preparation
• This phase is supposed to be country driven. “Technical, institutional, economic, environmental and financial issues facing the project” are studied.
4. Appraisal
• The Bank is solely responsible for project appraisal. Bank staff review the work done during identification and preparation, often spending three to four weeks in the client country
World Bank’s project cycle
5. Negotiation and approval
• Both sides come to an agreement on the terms and conditions of the loan. The documents setting out the Bank’s assessment of the feasibility and justification for the program along with the memorandum of the president and legal documents are then submitted to the Bank’s board for approval.
• Submission of relevant documents for final clearance by the borrowing government is done at this stage and may involve ratification by a council of ministers or a country’s legislature.
6. Implementation and supervision
• Project implementation is the responsibility of the borrowing country, while the Bank is responsible for supervision.
World Bank’s project cycle
7. Completion
• At the end of the loan disbursement period, a completion report (staff self-evaluations) identifying accomplishments, problems, and lessons learned is submitted to the Bank board for information purposes
8. Evaluation
• The Operations Evaluation Department (OED) conducts an audit to measure project outcomes against the original objectives. The audit reviews the project completion report and a separate report is produced. Both reports are submitted to the executive directors and the borrower. These are not released to the public.
• Project performance assessment reports – produced by OED staff and involve country visitsImpact evaluation reports – conducted 5-8 years after loan disbursementInspection panel reports
Loans/ Grants by Sector
Sector # Projects % Total
Agriculture 170 8 %
Climate Change 2 <1 %
Education 136 18 %
Energy & Extrs 218 10 %
Env & Nat Res 182 9 %
Fin & Markets 49 10 %
Governance 77 6 %
Health, N, Pop 95 9 %
Sector # Projects % Total
Econ& Fisc Mgmt 6 17 %
Other 1 <1 %
Poverty and Equity 10 10 %
Soc Prot & Labor 83 10 %
Social, Urban, Rural1 94 6 %
Trade & Compet 52 12 %
Transport & ICT 214 7 %
Water 171 5 %