ali(final) world bank history

8/6/2019 ALI(FINAL) WORLD BANK HISTORY

1/9

1

SGM COLLEGE OF COMMERCE,ECONOMICS & MANAGEMENT

SUBMITTED BY:

NAME: WARASI JULFIKAR ALIROLL No: 22

STD:F.Y.B.M.S. SEMESTER II

SUBJECT:

BUSINESS ENVIRONMENT

TOPIC:

History of World Bank in Chronological Order

SUBMITTED TO:PROF. RAHUL SHAH


2/9

2

INDEX

SR. NO. TOPIC PAGE NO.1 INTRODUCTION 3

2 HISTORY 4-5

3 DEFINATION OF WORLDBANK

6-9

4 FACTS ABOUT WORLDBANK

10-12

5 ORGANIZATIONALSTRUCTURE

13-17

6 LIST OF PRESIDENT 18-19

7 LIST OF CHIEFECONOMIST 20-22

9 REGISTRATION FORM 23-26

10 ABOUT US 27-28

11 FESTIVAL 29-31

12 WEBLIOGRAPHY 32


3/9

3

INTRODUCTION:-

The World Bank is a lending institution that funds essentialinfrastructural requirement, globally. Headquartered in Washington D.C., thisfiscal institution is banked upon heavily by the governments of the world for

timely dispensing of funds to support the development of major utilities andservices. The current 'green' focus of the World Bank has taken the 1944initiative to a new level.The World Bank is the outcome of the Bretton Woods Conference, held in 1944.It was launched alongside the International Monetary Fund, in the presence of anumber of important world delegates, and many important policy makers from theUnited States of America and Britain. Initially, till 1968 the World Bank mainly lentmoney, following fiscal conservatism. Loan applications were very carefullyscreened.

HISTORY:-

The World Bank Group Historical Chronology provides acomprehensive timeline of key events in World Bank Group history. Since itsinception in 1944, the World Bank expanded from a single institution to anassociated group of co-ordinated development institutions. The Bank's missionevolved from a facilitator of post-war reconstruction and development to itspresent day mandate of worldwide poverty alleviation. Whereas heavyinfrastructure investment projects once dominated the Bank's portfolio, abroadened focus now includes social sector lending projects, poverty alleviation,and the Comprehensive Development Framework. The World Bank GroupHistorical Chronology highlights these changes in the institution's history.

Many of the items in the Chronology are "firsts", documenting the firstoccurrence of significant events, such as the first lending for each membercountry, the first meetings of consultative groups, first lending in a particularsector, etc. The chronology also includes membership dates for all membercountries in each institution within the World Bank Group.


4/9

4

Definition of World Bank:-

The definition of the World Bank specifies: A bank with a mission to aiddeveloping and under-developed nations of the world to:

y Reduce poverty.y Develop an investment-environment.y Increase job opportunities.y Work towards sustainable economic growth.y Promote socio-economic growth through investment.y Strengthen governments with education.y Empower the development of legal and judicial systems, business

opportunities and protection of individual rights.y Benefit from micro credit as well as large corporate undertakings.y Combat corruption.y Promote research and training opportunities.

Facts About World Bank:-

World Bank offers two types of loans: investment and development policy.While investment loans are those that are forwarded to support economic andsocial development, development policy loans are offered as quick finance tosupport institutional reforms to reduce third world debt.

The Bank provides analytical services for economic and social infrastructuralimprovements. It also encourages innovation and cooperation between localstakeholders to generate:

y Debt relief in the case of very poor countries.y Development of sanitation and water supply.y Support immunization programs during epidemics.y Create 'green' initiatives.

The current president of the World Bank is Robert B. Zoellick. He is assisted by 3senior Vice Presidents, 24 Vice-Presidents and 2 Executive Vice Presidents.


5/9

5

Organizational Structure

Together with four affiliated agencies created between 1956and 1988, the IBRD is part of the World Bank Group. The Group's

headquarters are in Washington, D.C.. It is a non-profit-makinginternational organization owned by member governments.

Technically the World Bank is part of the United Nations system, but itsgovernance structure is different: each institution in the World BankGroup is owned by its member governments, which subscribe to itsbasic share capital, with votes proportional to shareholding. Membershipgives certain voting rights that are the same for all countries but thereare also additional votes which depend on financial contributions to theorganization.

As a result, the World Bank is controlled primarily bydeveloped countries, while clients have almost exclusively beendeveloping countries. Some critics argue that a different governancestructure would take greater account of developing countries' needs. Asof November 1, 2004 the United States held 16.4% of total votes, Japan7.9%, Germany 4.5%, and the United Kingdom and France each held4.3%. As major decisions require an 85% super-majority, the US canblock any change.


6/9

6

HISTORY OF WORLD BANK IN CHRONOLOGICALORDER

PRESENT1989

From 1989 World Bank policy changed in response to criticism from manygroups. Environmental groups and NGOs were incorporated in the lending of thebank in order to mitigate the effects of the past that prompted such harshcriticism. Bank projects "include" green concerns.

The World Bank headquartersin Washington, D.C.

Millennium Development Goals

The World Bank's current focus is on the achievement of the MillenniumDevelopment Goals (MDGs), lending primarily to "middle-income countries" atinterest rates which reflect a small mark-up over its own (AAA-rated) borrowingsfrom capital markets; while the IDA provides low or no interest loans and grantsto low income countries with little or no access to international credit markets.

The IBRD is a market-based nonprofit organization, using its high credit rating tomake up for the relatively low interest rate on its loans, while the IDA is fundedprimarily by periodic "replenishments" (grants) voted to the institution by its moreaffluent member countries. The Banks mission is to aid developing countries andtheir inhabitants to achieve development and the reduction of poverty, includingachievement of the MDGs, by helping countries develop an environment forinvestment, jobs and sustainable growth, thus promoting economic growththrough investment and enabling the poor to share the fruits of economic growth.


7/9

7

1989-1980

In 1980 A.W. Clausen replaced McNamara after being nominated by USPresident Jimmy Carter. Clausen replaced a large number of bank staffers fromthe McNamara era and instituted a new ideological focus in the bank. The

replacement of Chief Economist Hollis B. Chenery by Anne Krueger in 1982marked a notable policy shift at the bank. Krueger was known for her criticism ofdevelopment funding as well as third world governments as rent-seeking states.

Lending to service third world debt marked the period of 19801989. Structuraladjustment policies aimed at streamlining the economies of developing nations(at the expense of health and social services) were also a large part of WorldBank policy during this period. UNICEF reported in the late 1980s that thestructural adjustment programs of the World Bank were responsible for thereduced health, nutritional and educational levels for tens of millions of childrenin Asia, Latin America, and Africa.

1980-1968

From 1968 to 1980 the bank concentrated on meeting the basic needs of peoplein the developing world. The size and number of loans to borrowers was greatlyincreased as loan targets expanded from infrastructure into social services andother sectors.

These changes can be attributed to Robert McNamara who was appointed to the

presidency in 1968 by Lyndon B. Johnson. McNamara imported a technocraticmanagerial style to the Bank that he had used as United States Secretary ofDefense and President of the Ford Motor Company. McNamara shifted bankpolicy toward measures such as building schools and hospitals, improvingliteracy and agricultural reform. McNamara created a new system of gatheringinformation from potential borrower nations that enabled the bank to process loanapplications much faster. To finance more loans, McNamara told bank treasurerEugene Rotberg to seek out new sources of capital outside of the northern banksthat had been the primary sources of bank funding. Rotberg used the global bondmarket to increase the capital available to the bank. One consequence of theperiod of poverty alleviation lending was the rapid rise of third world debt. From

1976 to 1980 developing world debt rose at an average annual rate of 20%.


8/9

8

1968-1945

From its conception until 1967 the bank undertook a relatively low level oflending. Fiscal conservatism and careful screening of loan applications wascommon. Bank staff attempted to balance the priorities of providing loans for

reconstruction and development with the need to instill confidence in the bank.Bank president John McCloy selected France to be the first recipient of WorldBank aid; two other applications from Poland and Chile were rejected. The loanwas for $987 million, half the amount requested and came with strict conditions.Staff from the World Bank monitored the use of the funds, ensuring that theFrench government would present a balanced budget and give priority of debtrepayment to the World Bank over other governments. The United States StateDepartment told the French government that communist elements within theCabinet needed to be removed. The French Government complied with thisdiktat and removed the Communist coalition government. Within hours the loanto France was approved. The Marshall Plan of 1947 caused lending by the bank

to change as many European countries received aid that competed with WorldBank loans. Emphasis was shifted to non-European countries and until 1968,loans were earmarked for projects that would enable a borrower country to repayloans (such projects as ports, highway systems, and power plants).


9/9

9

Webliography:-

1. www.wikipedia.org2. www.buzzle.com

Thank You

ali(final) world bank history

Documents