The World Bank

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The World Bank (WB)
The International Bank for Reconstruction and Development
(IBRD). 1945.

The International Finance Corporation (IFC). (1956),

The International Development Association (IDA). (1960)

The Multilateral Investment Guarantee Agency (MIGA). (1988),

The International Centre for Settlement of Investment

Disputes (ICSID). (1966)

WB mission
Reduce poverty in the globe
Improve the living standard 2
How is World Bank Run?

184 members

Board of Governors

countries' ministers of finance or ministers of development

Annual Meeting24 Executive Directors

The five largest shareholders

The President of the Bank

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How is World Bank Run?
The Executive Directors Meet Twice in Week

including approval of loans and

Approve guarantees,
new policies,
the administrative budget,
country assistance strategies and
borrowing and financial decisions

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Where Does the Money Come from to
Operate the World Bank
Selling AAA-rated bonds

Banks its own capital.

reserves built up over the years
money paid in from the bank's 184 member
A country is obligated to buy 195 World Bank shares
US$120,635 per share
Callable capital ( subscribes 250 shares)

Additional funds are regenerated through repayments of

loan principal on 35-to-40-year,
interest on Principal Loan

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Objectives and Priorities of Financing
1945-1950
World War II affected economic reconstruction .
1950
Long term financing for economic development of poorest countries
1960
Finance of big industrial and infrastructure objects.
1970
Socio-economic development goals
Poverty reduction
Securing basic needs of the population.
Education and health programs,
Securing clean water access & sanitary service etc.
1980
Project and balance of payment financing
1990 to Now
Poverty reduction program
Anti corruption program 6
How World Bank Use The Funds
Types of Loans
investment loans
economic and social development projects
Poverty reduction
Education and health programs
Project and balance of payment financing

development policy loans.

To support structural reforms in an economic sector
To support for macroeconomic policy reforms and
adjustment to economic crises

Grants 7
Pakistan Projects & Programs

Pakistans portfolio consists of 30 projects with a total

commitment of $5 billion.
$140 million for conflict-affected areas
Tarbela Fourth Extension Hydropower Project ($ 840 Mil)
Pakistan: Second Punjab Education Sector Project ( $350)
Punjab Irrigated Agriculture Productivity Improvement
Program Project Phase-I ( $ 250 Mil)
Natural Gas Efficiency Project ($ 200 Mil)
Pakistan: Social Safety Net Project - Additional Financing ($
150 Mil)
Punjab Cities Governance Improvement ($ 150 Mil)
Southern Area Development Project ($ 18 mil)

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World Bank Most Financed Countries

1990s 30% of Tanzanian GDP was Bank

support

1990-2003 55% of Ugandan public

spending was external aid

1990s in Mozambique 50% of government

spending externally funded, 75% of public
investment