By Kate Pletcher, Jeff Freygang, and Mark Jacobs

1
World Bank

• By Kate Pletcher, Jeff Freygang, and Mark Jacobs

2
International Financial Architecture

• International Financial Architecture refers
  broadly to the framework and set of measures that
  can help prevent crises and manage them better in
  the more integrated international financial
  environment.
• Collective action is needed at the international
  level to deal with the aspects of crisis
  prevention and resolution.

3
International Financial Architecture

• Crisis is caused by weaknesses in the
  international financial level that contributes to
  global instability.
• However, there is widespread recognition that
  global financial stability also rests on robust
  national systems and hence requires enhanced
  measures at the country level as well.
• This is where The World Bank comes in.

4
International Financial Architecture

• The World Banks role is determined by its
  mandate of poverty reduction, its familiarity
  with and involvement in developing countries
  given its role as a global development
  institution, and its comparative strengths on
  social and structural issues.

5
International Financial Architecture

• The social and structural issues are
• The World Bank is helping countries assess the
  social and structural sources of vulnerability
  and address underlying policy and institutional
  weaknesses.
• Second, the World Bank is contributing to efforts
  to strengthen economic and financial governance
  at the global level in its areas of comparative
  advantage, and to help bring developing country
  experience and perspectives to the discussions
  that are underway on reform.
• Third, the World Bank is helping countries
  respond to and manage the consequences of
  financial crises.

6
World Bank Facts

• The World Bank Group was founded in 1944, and it
  is the largest source of development assistance
  in the world.
• The Bank provided 15.3 billion U.S. dollars in
  loans last year to its client countries.
• It is currently working in over 100 developing
  economies, bringing a mix of finance and ideas to
  improve living standards and eliminate the worst
  forms of poverty.

7
World Bank Facts

• The World Bank. . .
• Is the worlds largest external funder of
  education and health
• Is a leader in the global fight against AIDS
• Strongly supports debt reliefand is putting its
  money where its mouth is
• Works in partnership more than ever before
• Is helping to fight corruption world-wide

8
World Bank Facts

• Civil Society and participation play an ever
  larger role in the Banks work.
• The World Banks priorities have changed
  dramatically.
• The Bank is expanding its work to help countries
  that have emerged from conflict.
• The Bank is doing development differently, and
  quality, and checks and balances are better.

9
Members Governors

• The World Bank is owned by 182 member countries
  whose views and interests are represented by a
  Board of Governors and a Washington-based Board
  of Directors.
• The member countries are shareholders, and they
  are the ones who carry the ultimate
  decision-making power in the Bank.

10
Members Governors

• A Governor and an alternate Governor are
  appointed by member nations carry out the
  following responsibilities
• Decide on key policy issues
• Admit or suspend members
• Decide on changes in the authorized capital stock
• Determine the distribution of net income
• Endorse financial statements and budgets

11
Members Governors

• Specifically, their policy discussions during the
  annual meetings range on issues related to
• Poverty reduction
• International economic development
• Finance
• Provide a forum for international cooperation
• Better serve its member countries

12
Members Governors

• The President of the World Bank serves as the
  chairman of the Board of Executive Directors.
• Based in Washington D.C., this Board is a small
  group of representatives who are responsible for
  the approval of all loans and for policy
  decisions affecting the World Banks general
  operations.

13
Members Governors

• The Bank currently has 24 executive directors.
• The five largest shareholders France, Germany,
  Japan, the United Kingdom, and the United States
  each appoint their own Executive Director.
• The other countries are grouped into
  constituencies, and each are represented by an
  elected Executive Director.
• These Directors usually meet every Tuesday and
  Thursday to oversee the Banks business.

14
What World Bank Does

• The Bank uses its financial resources, its
  highly trained staff, and its extensive knowledge
  base to individually help each developing country
  onto a path of stable, sustainable, and equitable
  growth.
• Their main focus is on helping the poorest people
  in the poorest countries.
• Through its loans, policy advice, and technical
  assistance, World Bank supports a broad range of
  programs aimed at reducing poverty and improving
  living standards in the developing world.

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What World Bank Does

• Invest in people through basic health and
  education
• Focus on social development, governance, and
  institution-building as key elements of poverty
  reduction
• Strengthen the ability of governments to deliver
  quality services efficiently
• Protect the environment
• Support and encourage private businesses
• Promote reforms to create a stable environment

16
Massive Development Challenges

• Of the 4.7 billion people who live in the 100
  countries that are World Bank Clients
• 3 billion live on less than 2 a day
• 40,000 die of preventable diseases every day
• 130 million never have an opportunity to go to
  school
• 1.3 billion do not have clean water to drink

17
Success in Developing Countries

• Life Expectancy has increased from 55 to 65 years
• Income per person has doubled
• The proportion of children attending school has
  risen from less than half to more than three
  quarters
• Infant mortality has been reduced by 50

18
Financial Products and Services

• Lending Instruments
• Co-financing, Trust Funds, and Guarantees
• Grants
• Analytic and Advisory Services
• Capacity Building

19
World Bank Group Institutions

• IDA-- International Development Assistance
• IBRD-- International Bank for Reconstruction and
  Development
• IFC-- International Finance Corporation
• MIGA-- Multilateral Investment Guarantee Agency
• ICSID-- International Center for Settlement of
  Investment Disputes

20
Conclusion

• These slides just present a brief overview of
  some of the main areas of the World Bank.
• All information was taken from the World Bank
  Group website at
• http//www.worldbank.org/