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K.E.S SHROFF COLLEGE

PROJECT PRESENT BY

GROUP NO01

GROUP MEMBERS OF FDI AND WORLD BANK

ROLL NO NAMES SIGN

01 PANDEY AMIT

02 PARMAR MEERA

03 DHNASHREE PATANKAR

04 PATEL HARSHAL

05 PATEL KARUNA

06 PATEL NAVINCHANDRA

07 PATEL POOJA

TO RESPECTED TEACHER

RACHANA MAM

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INDEX OF FDI AND WORLD BANK:-

SRNO.

TOPICS PAGE NO

01 MEAN AND DEFI NATION OF FDI 03

02 FEATUERS,TYPE AND METHOD OF FD I 03-04

03 ADVANTAGE AND DI S-ADVANTAGE 05-07

04 POLI CY AND REGULATION 08-09

05 PROHIBITEDSECTORS FOR FDI IN INDI A 10

06 ENTRY OPTIONS FOR FOREIGN INVESTORS IN INDI A 11-12

WORLD BANK

01 MEAN AND DEFI NATION 15

02 HISTORY AND CRITERIA 15-17

03 WORLD BANK GROUP AND POVERTY REDUCTI ON STAGE 18-19

04 FUNCTION OF WORLD BANK 19-20

05 TREASURY MANAGEMENT BY THE WORLD BANK AND SERVICE 21

06 CONCLUSION 22

07 REFRENCES 23

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What is Foreign direct investment (FDI )?Foreign direct investment (FDI) is a direct investment into production or business in acountry by a company in another country, either by buying a company in the target country or

by expanding operations of an existing business in that country. Foreign direct investment isin contrast to portfolio investment which is a passive investment in the securities of anothercountry such as stocks and bonds.

The Foreign Direct Investment means cross border investment made by a resident in oneeconomy in an enterprise in another economy, with the objective of establishing a lasting

interest in the investee economy.

Features of Foreign Direct I nvestment(FDI )

FDI has become a major component capital inflow.

FDI today is seen as an instrument to facilitate and support domestic investment forachieving higher level of economic development.

FDI benefits both domestic industry as well as consumer by providing opportunities

like technological up-gradation optimum utilization human and natural resourcesaccess to international quality goods and services.

FDI is a long terms investment which strategic in nature ,made by one entity fromanother nation in a corporate firm.

FDI has the potential to generate employment, increaseproductivity, transfer skills andtechnology ,enhance export and contribute to the long term economic development ofthe country.

FDI is essential for overcoming the investment saving gap to achieve sustainedgrowth.

FDI along with the foreign capital brings in improved management techniques fromthe advanced countries into the developing countries.

What are types of FDI?

Horizontal FDI arises when a firm duplicates its home country-based activities at the samevalue chain stage in a host country through FDI.

1. Platform FDI Foreign direct investment from a source country into a destinationcountry for the purpose of exporting to a third country.

2. Vertical FDI takes place when a firm through FDI moves upstream or downstream in

different value chains i.e., when firms perform value-adding activities stage by stagein a vertical fashion in a host country.Horizontal FDI decreases international trade asthe product of them is usually aimed at host country; the two other types generally actas a stimulus for it.

http://en.wikipedia.org/wiki/Portfolio_investmenthttp://en.wikipedia.org/wiki/Stock_%28finance%29http://en.wikipedia.org/wiki/Bond_%28finance%29http://en.wikipedia.org/wiki/Bond_%28finance%29http://en.wikipedia.org/wiki/Stock_%28finance%29http://en.wikipedia.org/wiki/Portfolio_investment

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Methods

The foreign direct investor may acquire voting power of an enterprise in an economy throughany of the following methods:

by incorporating a wholly owned subsidiary or company anywhere by acquiring shares in an associated enterprise through a merger or an acquisition of an unrelated enterprise participating in an equity joint venture with another investor or enterprise

Foreign direct investment incentives may take the following forms:

low corporate tax and individual income tax rates tax holidays other types of tax concessions preferential tariffs

special economic zones EPZExport Processing Zones Bonded Warehouses Maquiladoras investment financial subsidies soft loan or loan guarantees free land or land subsidies relocation & expatriation infrastructure subsidies R&D support derogation from regulations (usually for very large projects)

Why Countr ies Seek FDI ?(a) Domestic capital is inadequate for purpose of economic growth;

(b) Foreign capital is usually essential, at least as a temporary measure, during the period whenthe capital market is in the process of development;

(c) Foreign capital usually brings it with other scarce productive factors like technical knowhow, business expertise and knowledge

What are the major benefits of FDI :

(a) Improves forex position of the country;

(b) Employment generation and increase in production ;

(c) Help in capital formation by bringing fresh capital;

(d) Helps in transfer of new technologies, management skills, intellectual property

(e) Increases competition within the local market and this brings higher efficiencies

(f) Helps in increasing exports and tax revenues.

http://en.wikipedia.org/wiki/Corporate_taxhttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Special_economic_zonehttp://en.wikipedia.org/wiki/Free_trade_zonehttp://en.wikipedia.org/wiki/Bonded_warehousehttp://en.wikipedia.org/wiki/Maquiladorahttp://en.wikipedia.org/wiki/Soft_loanhttp://en.wikipedia.org/wiki/Soft_loanhttp://en.wikipedia.org/wiki/Maquiladorahttp://en.wikipedia.org/wiki/Bonded_warehousehttp://en.wikipedia.org/wiki/Free_trade_zonehttp://en.wikipedia.org/wiki/Special_economic_zonehttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Corporate_tax

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Advantages of FDI in Retail in India :

(1) Growth in Economy : Due to foreign companies entering into retail sector, newinfrastructure will be built thereby bolstering the jagging real estate sector. In turn, bankingsector will also grow as the funds needed to build infrastructure will be provided by banks.

(2) Job Opportunities : It has been estimated according to government, thatapproximately ten million jobs will be created mostly in retail and real estate sectors.

(3) Benefits to Farmers : In the retailing business, the intermediaries have dominated theinterface between the manufacturers or producers and the consumers. Hence the farmers andmanufacturers lose their actual share of profit margin, as the lions share is eaten up by the

middlemen.

This issue can be resolved by FD1, as farmers might get contract farming, where they will beable to supply an organised retailer based upon demand and will get paid handsomely for thatand they need not run in search of buyers.

(4) Benefits to consumers : Consumers will get variety of good quality products at lowprices compared to market rates and will be able to choose from various international brandsat one place.

(5) Lack of Infrastructure : This has been one of the common issues in the retailing chainin India for years, which has led to the process of an incompetent market mechanism. To citean example, inspite of India being one of the largest producers of fruits and vegetables, lackof proper cold storage facility significantly affects the selling of these perishable items andalso in huge losses. Allowing FDI might help India have better logistics and storagetechnologies resulting in avoiding wastage. Due to FDI foreign companies will invest around$ 100 million in India. Thereby, infrastructure facilities, refrigeration technology,

transportation sector will get a boost.

(6) Cheaper Production facilities : FDI will assure operations in production cycle anddistribution. Due to economies of operation, production facilities will be available at acheaper rate and thus resulting in availability of variety products to the ultimate consumers ata reasonable and cheaper price.

(7) Availability of new technology : FDI allows transfer of skills and technology fromabroad and develops the infrastructure of the domestic country. Greater managerial talent willflow in from other countries. Domestic consumer will get the benefit of getting great varietyand quality products at all price points.

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(8) Long term cash liquidity : FDI will render necessary capital for establishingorganised retail chain stores. It is a long term investment because the physical capital in thedomestic company is not easily liquidated.

(9) Conducive for the countrys economic growth: FDI will create a competitionamong the global investors, which will ultimately guarantee better and lower prices, thereby

benefiting people in all sections of the society. The market growth and expansion willincrease. It will step-up retail employment. It will ensure better managerial techniques andsuccess. Higher wages will be paid by the international companies. Urban consumers will beexposed to international lifestyles.

(10) FDI opens up a new avenue for Franchising : Restrictions on FDI are regarded astrade barriers as they traverse direct market access to foreign firms. Retail giants who arevery keen in looking for entry into foreign markets look for other available alternatives.These restrictions on the global retailers regarding the inflow of FDI, leads them towardsgetting the market entry through franchises. Thus, countries which offer promising market

potentialities for retail growth offer substantial growth in the franchising sector also.

(11) According to the Indian Governments condition, foreign companies have to source aminimum of 30% of their goods from Indian micro and small industries. This will encouragethe domestic manufacturing by creating a big effect for employment and technologyupgradation and income generation.

(12) Countries like China, Indonesia and Thailand have 100% FD1 in retail. Reports showthat these countries have experienced high growth in agro processing industry, refrigerationtechnology and infrastructure.

(13) Foreign countries will also create a supply chain management in the Indian market.This will result in avoidance of food wastage and perishables

Why FDI is Opposed by Local People or Disadvantages of

FDI:

(a) Domestic companies fear that they may lose their ownership to overseas company

(b) Small enterprises fear that they may not be able to compete with world class largecompanies and may ultimately be edged out of business;

(c) Large giants of the world try to monopolise and take over the highly profitable sectors;

(d) Such foreign companies invest more in machinery and intellectual property than in wages ofthe local people;

(e) Government has less control over the functioning of such companies as they usually work

as wholly owned subsidiary of an overseas company;

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POLICY AND REGULATORY FRAMEWORK TOWARD FDIThe Government has put in place a policy framework on Foreign Direct Investment. which isembodied in the Circular on Consolidated FDI Policy, issued which is updated every six months, tocapture and keep pace with the regulatory changes. The Department of Industrial Policy and

Promotion (DIPP), Ministry of Commerce & Industry, Government of India makes policypronouncements on FDI through Press Notes/ Press Releases which are notified by the Reserve Bankof India as amendments to the Foreign Exchange Management (Transfer or Issue of Security byPersons Resident Outside India) Regulations, 2000 (notification No.FEMA 20/2000-RB dated May 3,2000).

The procedural instructions are issued by the Reserve Bank of India vide A.P. DIR. (series) Circulars.Thus, regulatory framework for FDI consists of Acts, Regulations, Press Notes, Press Releases,Clarifications, etc.FDI policy is reviewed on an ongoing basis and measures for its further liberalization are taken.Change in sectoral policy/sectoral equity cap is notified from time to time through Press Notes by theDepartment of Industrial Policy & Promotion. Policy announcement by DIPP are subsequently

notified by RBI under FEMA.

AUTOMATIC ROUTEFDI Policy permits FDI up to 100 % from foreign/NRI investor without prior approval in most of thesectors including the services sector under automatic route. FDI in sectors/activities under automaticroute does not require any prior approval either by the Government or the RBI. The investors arerequired to notify the concerned Regional office of RBI of receipt of inward remittances within 30days of such receipt and will have to file the required documents with that office within 30 days afterissue of shares to foreign investors.

The present Automatic Route allows Indian companies engaged in all industries except for certainselect industries/sectors to issue shares to foreign investors up to 100% of their paid up capital inIndian companies. There are also some areas where though Automatic Route is available, foreigninvestors cannot invest beyond a certain percentage of the paid up capital of the Indian companies orwhere investment is subject to some other conditions.

Foreign investors have to, however, keep in mind that they may invest freely under the AutomaticRoute described above but where such investment does not conform to policies of Government ofIndia, a specific approval from Government must be sought. For example, there are Governmentguidelines on location of industrial units, or there are certain items like explosives or liquor that needan industrial licence. If the Indian company does not conform to the locational guidelines or needs anIndustrial licence then it cannot issue shares under the Automatic Route.

GOVERNMENT APPROVAL ROUTEAll activities which are not covered under the automatic route, prior Government approval forFDI/NRI shall be necessary. Areas/sectors/activities hitherto not open to FDI/NRI investment shallcontinue to be so unless otherwise decided and notified by Government.

An investor can make an application for prior Government approval even when the proposed activityis under the automatic route.

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Proposals requiring Government ApprovalFDI up to 100% is allowed under the automatic route in all activities/sectors except thefollowing which will require approval of the Government:

Activities/items that require an Industrial License.

All proposals falling outside notified sectoral policy/caps or under sectors in which FDI isnot permitted.

Proposals in which the foreign collaborator has a previous/existing venture/tie up in India inthe same.

Prior Government approval for new proposals would be required only in cases where theforeign investor has an existing joint venture, technology transfer, trade mark agreement inthe same field. With the amendment of the Press Note 18, joint ventures formed with foreigninvestment before December 12, 2004 would be considered as existing JVs which will fallunder the ambit of Press Note 18. The foreign partner in such JV has to obtain a No

Objection Certificate (NOC) from the Indian partner for starting new venture in India in thesame field of activity.

However, Government via Press Note No. 1 (2005 Series) made an exception that even incases where the foreign investor has a joint venture or technology transfer/ trademarkagreement in the 'same' field prior approval of the Government will not be required in thefollowing cases:

a. Investments to be made by Venture Capital Funds registered with the Security andExchange Board of India (SEBI); or

b. where in the existing joint-venture investment by either of the parties is less than 3%; orc. where the existing venture/ collaboration is defunct or sick.

Application for proposals requiring prior Govts approval should be submitted to FIPB in

fresh Application . The application shall be filed online through FIPB portal. Plain paperapplications carrying all relevant details are also accepted. No fee is payable. The followinginformation should form part of the proposals submitted to FIPB: -

a)Whether the applicant has had or has any previous/existing financial/technical collaborationor trade mark agreement in India in the same or allied field for which approval has beensought; and

b)If so, details thereof and the justification for proposing the new venture/technicalcollaboration (including trade marks).

c)Applications can also be submitted with Indian Missions abroad who will forward them tothe Department of Economic Affairs for further processing.

d)Generally foreign investment proposals received in the DEA (Department of Economic

Affairs) are placed before the Foreign Investment Promotion Board (FIPB) within 15 days ofreceipt. The decision of the Government in all cases is usually conveyed by the DEA within30 days.

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PROHIBI TEDSECTORS FOR FDI IN I NDIA FDI is not permissible in the following cases

Gambling and Betting, or

Lottery Business, or

Business of chit fund

Nidhi Company

Housing and Real Estate business (to a certain extent has been opened. For details please see noteon Construction)

Trading in Transferable Development Rights (TDRs)

Retail Trading (discussions are being held to open this area-B2B and Cash & Carry are permitted)

Atomic Energy

Agricultural or plantation activities or Agriculture (excluding Floriculture, Horticulture,Development of Seeds, Animal Husbandry, Pisiculture and Cultivation of Vegetables, Mushrooms

etc. under controlled conditions and services related to agro and allied sectors) and Plantations(otherthan Tea plantations)RBI has granted general permission under Foreign Exchange Management Act (FEMA) in respect ofproposals approved by the Government. Indian companies getting foreign investment approvalthrough FIPB route do not require any further clearance from RBI for the purpose of receiving inwardremittance and issue of shares to the foreign investors.

The companies are however required to notify the concerned Regional office of the RBI about receiptof inward remittances within 30 days of such receipt and to file the required documents with theconcerned Regional offices of the RBI within 30 days after issue of shares to the foreign investors orNRIs.

FDI IN LIMITED LIABILITY PARTNERSHIPS (LLPS)

Government of India recently allowed FDI in LLPs however LLPs with FDI will not be allowed tooperate in agricultural/plantation activity, print media or real estate business. FDI in LLP is allowedwith the previous approval of the Government. Further it is allowed with the Governments approvalonly in those sectors in which 100% FDI is allowed under automatic route under the FDI policy. Thusthose sectors which are not available under automatic route is not available for FDI in LLP. Thefollowings are some conditions with respect to FDI in LLPs.

LLPs with FDI will not be eligible to make any downstream investments.

Foreign Capital participation in LLPs will be allowed only by way of cash consideration.

Investment in LLPs by Foreign Institutional Investors (FIls) and Foreign Venture CapitalInvestors (FVCIs) will not be permitted.

LLPs are not allowed to raise ECB (external commercial borrowings)

I NDUSTRIES UNDER SMALL-SCALE SECTOR

An industrial undertaking is defined as a small-scale unit if the capital investment in plantand machinery does not exceed Rs 10 million. Small-scale units can get registered with theDirectorate of Industries/District Industries Centre of the State Government. Such units can

manufacture any item, and are also free from locational restrictions.

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Manufacture of items reserved for small-scale sectorNon-small scale units can manufacture items reserved for the small scale sector only after obtainingan industrial license. In such cases, the non-small scale unit is required to undertake an obligation to

export 50 per cent of the production of SSI reserved items.

FDI IN SSI UNITS

A small scale unit can not have more than 24 per cent equity in its paid up capital from any industrialundertaking, either foreign or domestic. If the equity from another company (including foreign equity)exceeds 24 per cent, even if the investment in plant and machinery in the unit does not exceed Rs 10million, the unit loses its small-scale status.

Locational Restr ictions

Industrial undertakings are free to select the location of a project. Industrial Licence is required if theproposed location is within 25 KM of the Standard Urban Area limits of 23 city having population of1 million as per 1991 census.

Locational restriction does not apply:i) If the unit were to be located in an area designated as an industrial area before the25th July,1991.ii) Electronics, Computer software and Printing and any other industry, which may be notified infuture as non polluting industry, are exempt from such locational restriction.

The location of industrial units is subject to applicable local zoning and land use regulations and

environmental regulations.

ENTRY OPTIONS FOR FOREIGN INVESTORS IN I NDI AEntry OptionsA foreign company planning to set up business operations in India has the following options:Incorporated Entity

1.By incorporating a company under the Companies Act,1956 throughJoint Ventures; or

Wholly Owned Subsidiaries

Foreign equity in such Indian companies can be up to 100% depending on the requirements of theinvestor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment(FDI) policy.As an Unincorporated Entity

As a foreign Company throughLiaison Office/Representative OfficeProject Office

Branch OfficeSuch offices can undertake activities permitted under the Foreign Exchange Management(Establishment in India of branch or office of other place of business) Regulations,2000.

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I ncorporation of Company

For registration and incorporation, an application has to be filed with Registrar of Companies (ROC).Once a company has been duly registered and incorporated as an Indian company, it is subject toIndian laws and regulations as applicable to other domestic Indian companies.

L iaison Off ice/Representative OfficeThe role of the liaison office is limited to collecting information about possible market opportunitiesand providing information about the company and its products to prospective Indian customers. It canpromote export/import from/to India and also facilitate technical/financial collaboration betweenparent company and companies in India. Liaison office can not undertake any commercial activitydirectly or indirectly and can not, therefore, earn any income in India. Approval for establishing aliaison office in India is granted by Reserve Bank of India (RBI).

Project Off iceForeign Companies planning to execute specific projects in India can set up temporary project/siteoffices in India. RBI has now granted general permission to foreign entities to establish ProjectOffices subject to specified conditions. Such offices can not undertake or carry on any activity otherthan the activity relating and incidental to execution of the project. Project Offices may remit outsideIndia the surplus of the project on its completion, general permission for which has been granted bythe RBI.

Branch Off ice

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up

Branch Offices in India for the following purposes:

(i).Export/Import of goods(ii).Rendering professional or consultancy services(iii).Carrying out research work, in which the parent company is engaged.(iv).Promoting technical or financial collaborations between Indian companies and parent or overseasgroup company.(v). Representing the parent company in India and acting as buying/selling agents in India.(vi).Rendering services in Information Technology and development of software in India.(vii).Rendering technical support to the products supplied by the parent/ group companies(viii).Foreign airline/shipping company.

A branch office is not allowed to carry out manufacturing activities on its own but is permitted tosubcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI,may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBIguidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).

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World Bank

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World Bank logo

Type International organization

Legal status Treaty

Purpose/focus Crediting

Location Washington, D.C., U.S.

Membership

188 countries[1]

(IBRD)

172 countries (IDA)

President Jim Yong Kim

Main organ Board of Directors[2]

Parent organization World Bank Group

Website worldbank.org

http://en.wikipedia.org/wiki/World_Bank#cite_note-1http://en.wikipedia.org/wiki/World_Bank#cite_note-1http://en.wikipedia.org/wiki/World_Bank#cite_note-1http://en.wikipedia.org/wiki/Jim_Yong_Kimhttp://en.wikipedia.org/wiki/World_Bank#cite_note-2http://en.wikipedia.org/wiki/World_Bank#cite_note-2http://en.wikipedia.org/wiki/World_Bank#cite_note-2http://en.wikipedia.org/wiki/World_Bank_Grouphttp://www.worldbank.org/http://en.wikipedia.org/wiki/File:World_Bank_Logo.svghttp://www.worldbank.org/http://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/World_Bank#cite_note-2http://en.wikipedia.org/wiki/Jim_Yong_Kimhttp://en.wikipedia.org/wiki/World_Bank#cite_note-1

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Introduction:

The World Bankis aninternational financial institutionthat providesloanstodevelopingcountriesforcapital programs.

The World Bank's official goal is thereduction of poverty. According to its Articles ofAgreement (as amended effective 16 February 1989), all its decisions must be guided by acommitment to the promotion offoreign investmentandinternational tradeand to thefacilitation ofcapitalinvestment.

The World Bank comprises two institutions: theInternational Bank for Reconstruction andDevelopment(IBRD) and theInternational Development Association(IDA).

The World Bank should not be confused with theWorld Bank Group, which comprises theWorld Bank, theInternational Finance Corporation(IFC), theMultilateral InvestmentGuarantee Agency(MIGA), and theInternational Centre for Settlement of Investment

Disputes(ICSID).

History

Lord Keynes (right) and Harry Dexter White, the "founding fathers" of both the World Bankand the International Monetary Fund (IMF).Seen here at the Bretton Woods conference,where plans were laid to launch the two institutions.

The World Bank was created at the 1944 Bretton Woods Conference, along with three otherinstitutions, including the International Monetary Fund (IMF). The World Bank and the IMFare both based in Washington DC, and work closely with each other.

http://en.wikipedia.org/wiki/International_financial_institutionhttp://en.wikipedia.org/wiki/International_financial_institutionhttp://en.wikipedia.org/wiki/International_financial_institutionhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Poverty_alleviationhttp://en.wikipedia.org/wiki/Poverty_alleviationhttp://en.wikipedia.org/wiki/Poverty_alleviationhttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/International_Development_Associationhttp://en.wikipedia.org/wiki/International_Development_Associationhttp://en.wikipedia.org/wiki/International_Development_Associationhttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/International_Finance_Corporationhttp://en.wikipedia.org/wiki/International_Finance_Corporationhttp://en.wikipedia.org/wiki/International_Finance_Corporationhttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/International_Centre_for_Settlement_of_Investment_Disputeshttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/Multilateral_Investment_Guarantee_Agencyhttp://en.wikipedia.org/wiki/International_Finance_Corporationhttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/International_Development_Associationhttp://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Developmenthttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Poverty_alleviationhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/International_financial_institution

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There were a number of vital world delegates and many plays an important role in policymakers from United States and Britain was attending the launching of World Bank alongsidewith International Monetary Fund. The World Bank was officially operating on 26th June1946.The amount of $12 million was the initial authorized capital of bank. The concept ofWorld Bank was being created in World War II at Bretton Woods, New Hampshire which itinitially assisted reconstructive Europe after World War II. The first loan that World Bankgave to France with the amount of $250 million was in 1947 for the purpose of post-warreconstruction. The most important focus job of World Bank done is reconstruction. Thereare many factors that were affect the developing and transition economies such as the naturaldisasters, humanitarian emergencies and post conflict rehabilitation need

Till 1968, the World Bank was mainly in the business of lending money, and later on it wasredesigned as an institution, which would assist with investments too. Under Chairman JohnMcCloy, the bank gave its first aid of $250 million to France, rejecting the other aspirants

Poland and Chile. Over time, the scope for getting funds was broadened, and many non-European nations were given aid, on conditions that the nation borrowing the money had thecapability to pay back the loan within a stipulated timeframe.Recently the "World Bank"name has come to be used for the International Bank for Reconstruction and Development(IBRD) and the International Development Association (IDA). When it first began operationsto speed post World War II reconstruction, it had 38 members, now it has 184, almost all thecountries in the world

At the present time, World Bank integrates its lending practices to achieve infrastructural andenvironmental requirements. The new green focus of World Bank is made the capitalavailable to under-developed and developing country. It is to enhance exports to reach the

goal of economic stable and same time promises the citizens to improve the utilities andservices.

Through 1980s, structural adjustment and streamlining the economies of few of developingcountries were being concern by World Bank. The World Bank was focus on macroeconomicand debt rescheduling issue in early decades during 1980s. Later in decades, theenvironmental issue becomes centre stage. It is because the vocal civil society was increasingand accused the Bank did not observe their policies in some high profile projects The WorldBank today extends aid all over the world, and its lending practices are designed in ways thatmeet both infrastructural and environmental requirements.

The World Bank headquarters in Washington, DC

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Benefits

o The World Bank is beneficial in many ways. First, it enables poor countriesaccess to money at low interest rates, which allows them to develop programsand projects that they might not be able to afford otherwise. The programs the

World Bank sponsors are often aimed at building infrastructure anderadicating disease, which can help countries become more financially stableand self-sufficient in the future.

International Monetary Fund

o The International Monetary Fund (IMF) is another international organizationthat is commonly confused with the World Bank. According to the IMF, theorganization differs from the World Bank in that the IMF "oversees theinternational monetary system" and "assists all members -- both industrial anddeveloping countries -- that find themselves in temporary balance of paymentsdifficulties by providing short- to medium-term credits." The IMF is notfocused solely upon helping poor countries like the World Bank.

Criteria

Many achievements have brought the Millennium Development Goals (MDGs) targets for2015 within reach in some cases. For the goals to be realized, six criteria must be met:stronger and more inclusive growth in Africa and fragile states, more effort in health andeducation, integration of the development and environment agendas, more and better aid,movement on trade negotiations, and stronger and more focused support from multilateral

institutions like the World Bank

1. Eradicate Extreme Poverty and Hunger: From 1990 through 2004, the proportionof people living in extreme poverty fell from almost a third to less than a fifth.Although results vary widely within regions and countries, the trend indicates that theworld as a whole can meet the goal of halving the percentage of people living in

poverty. Africa's poverty, however, is expected to rise, and most of the 36 countrieswhere 90% of the world's undernourished children live are in Africa. Less than aquarter of countries are on track for achieving the goal of halving under-nutrition.

2. Achieve Universal Primary Education: The number of children in school indeveloping countries increased from 80% in 1991 to 88% in 2005. Still, about 72million children of primary school age, 57% of them girls, were not being educated asof 2005.

3. Promote Gender Equality: The tide is turning slowly for women in the labor market,yet far more women than men- worldwide more than 60% are contributing butunpaid family workers. The World Bank Group Gender Action Plan was created toadvance women's economic empowerment and promote shared growth.

4. Reduce Child Mortality: There is some what improvement in survival rates globally;accelerated improvements are needed most urgently in South Asia and Sub-SaharanAfrica. An estimated 10 million-plus children under five died in 2005; most of theirdeaths were from preventable causes.

5. Improve Maternal Health: Almost all of the half million women who die duringpregnancy or childbirth every year live in Sub-Saharan Africa and Asia. There arenumerous causes of maternal death that require a variety of health care interventionsto be made widely accessible.

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6. Combat HIV/AIDS, Malaria, and Other Diseases: Annual numbers of new HIVinfections and AIDS deaths have fallen, but the number of people living with HIVcontinues to grow. In the eight worst-hit southern African countries, prevalence isabove 15 percent. Treatment has increased globally, but still meets only 30 percent ofneeds (with wide variations across countries)..

7. Ensure Environmental Sustainability: Deforestation remains a critical problem,

particularly in regions of biological diversity, which continues to decline. Greenhousegas emissions are increasing faster than energy technology advancement.

To make sure that World Bank-financed operations do not compromise these goals butinstead add to their realisation, environmental, social and legal Safeguards were defined.However these Safeguards have not been implemented entirely yet. At the World Bank'sannual meeting in Tokyo 2012 a review of these Safeguards has been initiated which waswelcomed by several civil society organisation

Leadership

The President of the Bank, currently Jim Yong Kim, is responsible for chairing the meetingsof the Boards of Directors and for overall management of the Bank. Traditionally, the BankPresident has always been a US citizen nominated by the United States, the largestshareholder in the bank. The nominee is subject to confirmation by the Board of ExecutiveDirectors, to serve for a five-year, renewable term. While most World Bank presidents havehad banking experience, some have not.

The vice presidents of the Bank are its principal managers, in charge of regions, sectors,networks and functions. There are two Executive Vice Presidents, three Senior VicePresidents, and 24 Vice Presidents.[

The Boards of Directors consist of the World Bank Group President and 25 ExecutiveDirectors. The President is the presiding officer, and ordinarily has no vote except a decidingvote in case of an equal division. The Executive Directors as individuals cannot exercise any

power nor commit or represent the Bank unless specifically authorized by the Boards to doso. With the term beginning 1 November 2010, the number of Executive Directors increased

by one, to 25

Poverty reduction strategies

For the poorest developing countries in the world, the bank's assistance plans are based onpoverty reduction strategies; by combining a cross-section of local groups with an extensiveanalysis of the country's financial and economic situation the World Bank develops a strategy

pertaining uniquely to the country in question. The government then identifies the country'spriorities and targets for the reduction of poverty, and the World Bank aligns its aid effortscorrespondingly.

World Bank organizes Development Marketplace Awards which is a competitive grantprogram that surfaces and funds innovative, development projects with high potential fordevelopment impact that are scalable and/or replicable. The grant beneficiaries are socialenterprises with projects that aim to deliver a range of social and public services to the mostunderserved low-income groups.

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How is the World Bank Group Organized?

As membership grew, and needs changed, the World Bank expanded and now

comprises five different agencies that together make up the World Bank Group:

The International Bank for Reconstruction and Development provides assistance to

middle income countries. IBRD obtains most of its funds through the sales of bonds

in international capital markets.

The International Development Association assists the poorest countries with a per

capita income of less than $885--to which it provides interest-free loans, technical

assistance and policy advice.

The International Finance Corporation (IFC) promotes growth in client countries by

financing private sector investments.

The Multilateral Investment Guarantee Agency (MIGA) helps encourage foreign

investment by providing guarantees to foreign investors against loss caused by non-

commercial risks in developing countries, thereby creating investment opportunities

in those countries.

The International Centre for Settlement of Investment Disputes provides facilities for

the settlement by conciliation or arbitration of investment disputes between foreign

investors and their host countries

Function of world bank:-

The World Bank is not a bank in the usual sense. Rather, it is an organization comprised of

two development institutions known as the International Bank for Reconstruction and

Development (IBRD) and International Development Association (IDA), which are owned

by member countries. The World Bank raises money for low interest and no interest loans to

poor countries by selling bonds in international financial markets and through the support of

member.

World Bank performs the following functions:

(i) Granting reconstruction loans to war devastated countries.

(ii) Granting developmental loans to underdeveloped countries.

(iii) Providing loans to governments for agriculture, irrigation, power,

transport, water supply, educations, health, etc

(iv) Providing loans to private concerns for specified projects.

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(v) Promoting foreign investment by guaranteeing loans provided by other

organisations.

(vi)Providing technical, economic and monetary advice to member countries

for specific projects

(vii) Encouraging industrial development of underdeveloped countries by

promoting economic reforms.

World Bank Toolkit for Stable, Crises andEmergency Situations

The World Bank had developed a toolkit to tackle the malnutrition that leads to irreversiblenegative impacts and generates high human, social, and economic costs that contribute to

perpetuating poverty. Latin America and the Caribbean are the most vulnerable regions in theworld to major crises and emergencies.

This toolkit is designed to guide countries in crafting policy responses to nutritional needs of

mothers and young children in unstable context. It also provides direction on how to protectand promote the nutrition of mothers and children during stable times, emergencies andduring the transition in and out of crisis.

This toolkit comprises three main components such as policy guidance for priority nutritioninterventions and cross-cutting approaches, country benchmarking and case studies.

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Treasury management by the World Bank

The World Bank is the Treasury Manager for IFFIm, facilitating IFFIm's disbursements for

immunisation and health programmes through the GAVI Alliance

Treasury Manager

The World Bank, a global development cooperative owned by 187 member countries, is the

Treasury Manager for IFFIm. In that capacity, the World Bank, manages IFFIm's finances

according to prudent policies and standards agreed with the IFFIm Board.

The World Bank's work as Treasury Manager includes managing IFFIm's funding strategyand its implementation, rating agency and investor outreach, hedging transactions, andinvestment management.

The World Bank also coordinates with IFFIm's donors and manages their pledges andpayments as well as IFFIm's disbursements for immunisation and health programmes throughthe GAVI Alliance.

About the World Bank

The World Bank's purpose is to help its members achieve equitable and sustainable economicgrowth in their national economies and to find effective solutions to pressing regional andglobal problems in economic development and environmental sustainability.

The goal is to help overcome poverty and improve standards of living for people worldwide.

The International Bank for Reconstruction and Development (IBRD) is the oldest and largestentity in the World Bank Group and provides funding, risk management tools and creditenhancement to sovereigns.

Services

The services that the World Bank provides to IFFIm include:

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market-based financing strategies and funding operations; intermediation of hedge transactions; multi-donor grant and payment tracking; liquidity and investment management; risk monitoring and asset-liability management;

Accounting and reporting.

As part of its duties, the World Bank recommends policies for funding, risk management,investment and liquidity management to the IFFIm Board and executes all financialtransactions based on approved policies and strategies.

The World Bank also assesses IFFIm's funding needs so that IFFIm can meet makedisbursements for approved immunisation and/or vaccine programmes and debt service, andensures that IFFIm is able to finance any proposed immunisation and/or vaccine procurement

programmes before they can be proceed.

Conclusion:

The future of both Bretton Woods institutions remains uncertain. Both the IMF and

World Bank escaped the efforts of the Republican U.S. Congress in the mid-1990s to

sharply curtail and even eliminate both organizations. These agencies have been less

successful in answering the charges from the left, as the IMF retains its demand for

"structural adjustments" and the World Bank still favors funding for large, project-

driven funding. While both the IMF and the World Bank have instituted some

reforms, they have been unable to appease the concerns of outraged

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environmentalists, labor unionists, and nationalists and advocates of indigenous

peoples in the developing world.

Still, as this essay has suggested, these two organizations are really the misguided

target for the legitimate concerns people of all ideological stripes have had about the

rapid pace of globalization in the past half century. It is likely this globalization

would have occurred whether or not there had been a Bretton Woods conference,

and it is all but certain it will continue in the future regardless of the policies pursued

by the IMF and World Bank. While it is true that they have often been too driven by

U.S. foreign policy concerns, in the end the influence of both institutions has been

widely overstated. And despite their mistakes during the past half century, they have

rarely been given credit for many of the little things they do well. For example, both

institutions perform economic surveillance over most of the world's economy, a

valuable task that no other international or private organization could perform with

such skill. Both agencies also serve as a store of expert knowledge and wisdom for

countries throughout the world that lack trained specialists. While neither the IMF

nor the World Bank has met the lofty goals of their founders or wielded the nefarious

influence charged by their critics, they have and should continue to play a small but

important role in promoting prosperity and economic stability worldwide.

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