world bank itf 212 international trade and investment instructor : assoc. prof. dr. hasan f. baklaci...

WORLD BANK

ITF 212 INTERNATIONAL TRADE AND INVESTMENT

INSTRUCTOR : Assoc. Prof. Dr. Hasan F. BAKLACI Güleycan DAĞDELEN Büşra ÇETMEN Görkem KURU Ahmet N. BOĞANÇ

What is World Bank?

• dedicated to providing finance

• research to developing nations

• created at the end of World War II

HISTORY OF WORLD BANK

• establishing with IMF in 1944

• Sign with 44 countries

• Prepare ‘Articles of agreement’

Articles of Agreement

• To assist in the reconstruction and development

• To promote private investment• suitable finance conditions for productive

purpose• Preferential more useful and urgent projects• To help the post-war years

MISSION ; Create a world fee of poverty’

STRUCTURE

• 184 member countries

• capital ratio 0.5% ratio of votes 0,5

• 55% of capital belong to 11 members

Five Institutions, One Group

International Bank for Reconstruction and Development

• lends to governments of middle-income and creditwo countries.

Interest-free for poorest countries

• the largest global development institution focused exclusively on the private sector

• to promote foreign direct investment into developing countries

• provide international facilities

TO BE A MEMBER OF WORLD BANK

• Must be member of IMF

• Must be member of IBRD

• the final decision-making power within the organizations on all matters

TODAY…

• attempts to fight poverty

• more direct government support policies and infrastructure projects

• 12th president is Jim Yong Kim

TYPES OF LOANS

LEARNING AND INNOVATION LOAN

• small-scale investments • Learn from observation• ’Commodities Market

Development Project’’ in Turkey

SPECIFIC INVESTMENT LOANS (SIL)

• Growth economic, social and institutional infrastructure projects.

• Turkey received 194 loan

EMERCENCY RECOVERY LOAN (ERL)

• extraordinary events

FINANCIAL INTERMEDIARY LOAN

• accommodate needs of the real sector investment

• credit to the local financial institutions

• Long term credit

INVESTMENT LOANS• realize public

investment projects• Finance part of the

project

ADJUSTMENT LOANS• support the

implementation of economic policy

• structural adaptation changes in

macroeconomic policy,• used at one stage or

step by step

-World Bank-Turkey Relations-

• became a member of the World Bank in 1947

• Turkey 0.48% of the voting power• 24 .01.1980 Turkish economies liberalization

program • 159 credit agreement signed with Turkey

since 1947

• Turkey’s geographical location important• needs :• such as performed this situations • Turkey has big potential• Turkey not use net resources against World

Bank

starting with 1989• more loans are the currency• interest rate payment has realized

Turkey's Worl d Bank Group debt the share of total foreign debt :

• 1.358 million$, to the IFC • 103 million$ to the IDA• 2.883 million$ to the IBRD

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