The World Bank is an international financial institution that provides financial and technical assistance to developing countries for development programs (e.g. bridges, roads, schools, etc.) with the stated goal of reducing poverty.

Major institutions created as a result of the Bretton Woods Conference in 27th December, 1944

Two main countries which shaped the negotiations were United States and Britain

Provide assistance to developing and transition countries

Promote the economic development of the world's poorer countries

Finance the poorest developing countries whose per capita GNP is less than $865 a year special financial assistance through the International Development Association (IDA)

Build capacity Infrastructure creationDevelopment of Financial SystemsCombating corruptionResearch, Consultancy and Training

Investment loans: Support of economic and social development projects

Development policy loans: Quick disbursing finance to support countries

International Bank for Reconstruction and Development (IBRD) :186 member countries

International Development Association (IDA): 168 members countries

Focus on three priority areas: Safety net programs Global recession and the food Fuel and financial crises

For this: $8.3 billion to mitigate the crisis

impact in poor countries, over and above previous commitments to the institution

Trade flows Bolster distressed banking systemsKeep infrastructure projects on trackShift advisory support servicesSupport microfinance institutions

Onchocerciasis Control Program (OCP)Successfully halted transmission of river blindness in 11 countries with a collective population of 35 million.

Consultative Group for International Agricultural Research (CGIAR)Created and promoted crop improvements in developing countries over the last 30 years through a network of research centers.

Global Environment Facility (GEF)Provides grants to developing countries to fund projects that benefit the global environment and promote sustainable livelihoods in local communities.

Consultative Group to Assist the Poorest (CGAP)Expands access by the poor in developing counctries to microfinance through a consortium of 28 public and private development agencies.

Financial Sector Reform and Strengthening Initiative (FIRST)Provides flexible, practical assistance to developing countries to strengthen their financial systems and adopt international financial standards.

Global Water Partnership (GWP)

Supports countries in the sustainable management of their water resources.

Global Alliance for Vaccines and Immunization (GAVI)

Seeks to protect public health worldwide through the widespread use of vaccines.

The Carbon Fund

Works to develop viable, flexible market mechanisms to reduce greenhouse gas emissions under the Kyoto Protocol.

Roll Back Malaria

Coordinates the international fight against malaria, which kills more than 1 million people a year, most of them children in Africa.

Joint United Nations Programme on HIV/AIDS (UNAIDS)

Advocates for global action on the HIV/AIDS epidemic and works with civil society, the business community and the private sector.

Education for All

Focuses attention on education and strives to ensure an education for every citizen in every society

Focuses on:• Fast-track the development• Support seven poorest states

Total proposed lending program of US$14 billion, for the next three years

Strategy is aligned with Government of India’s own development priorities

Agriculture Infrastructure:

• Power • Transport• Water• Urban development

Skills

Components Amount(US $ Million)

Loan Terms

Rail 305 IBRD Loan repayable over 20 years with 5 year grace period

Road 150 IBRD Loan repayable over 20 years with 5 year grace period

Resettlement 79 IDA Credit - an interest-free loan repayable over 35 years with a 10-year grace period

Total From World Bank 542 Channelled through the Government of India

Govt. of India and Govt. Maharashtra

403  

Total Cost of Project 945  

The low cost and stable financing it provides with longer maturity periods

Financing through the International Development Association (IDA) Interest rate: 0.75% p.a. Repayable over a period of 35 years Inclusive of a 10 year grace period

Government estimates investment of $475 billion

WB financed FY08: US$ 2.7 billion

World Bank group had  60 active projects in the country