world bank ppt @ bec doms bagalkot mba

8/2/2019 World Bank Ppt @ Bec Doms Bagalkot Mba

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WORLD BANK


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ROBERT-ZOELLICKPrsident since July 2007


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Introduction

The World Bank is one of the worlds largest sources of funding and knowledge for

developing countries. India is one of our oldest members, having joined the

institution at its inception in 1944.

In India, the World Bank works in close partnership with the Central and State

Governments.

It also works with other development partners: bilateral and multilateral donor

organizations, nongovernmental organizations (NGOs), the private sector, and the

general publicincluding academics, scientists, economists, journalists, teachers,

and local people involved in development projects


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THE WORLD BANKS PLAN OF ACTION IN INDIA

The World Bank's work plan in India is spelt out in its Country Strategy

(CAS). The Country Strategy for India is closely aligned with India's own

development priorities and describes what kind of supportand how much

can be provided to the country over a period of around four years.

The Country Strategy for India for 2009-2012 is aligned with the

government's Eleventh Five Year Plan. It focuses on helping the country to

fast-track the development of much-needed infrastructure, support theseven poorest states, and respond to the financial crisis


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The strategy foresee total proposed lending of US$14

billion for 2009 - 2012. As private financing dries up

in the wake of the global financial crisis, the Bank has

agreed to provide an additional US$ 3 billion as partof the total financing envelope of US$ 14 billion


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LENDING TO INDIA

At the end of June 30, 2010, the World Bank group had

75 active projects in the country. The net commitment

for these projects was about $21.4 billion. New lending

in FY10 (1 July 2009- 30 June 2010) amounted to $9.3 billion


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Commitments as on June 30, 2010 (FY10):

$21.4 billion

Commitments FY05 FY06 FY07 FY08 FY09 FY10

New Lending 2.9 1.4 3.7 2.7 2.3 9.3

Total Commitments

(Active Projects)12.8 11.3 14.3 13.8 14.9 21.4

Total No. of Active

Projects64 56 67 60 61 75


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World Bank to Support Bihar Governments Initiative to

Rebuild Flood-Affected Areas with $220 million

The 2008 floods in the Kosi basin affected about 3.3 million people

in five districts of Bihar. About one million people were withdraw

from and about 460,000 people were given temporary shelter in

relief camps.

Thousands of families dependant on farming lost land due to

siltation, with massive damage to housing and infrastructure.

An already helpless rural population lost whatever little they

owned, falling even deeper into poverty.


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The new project aims to help Bihars flood-affected people by

supporting the reconstruction of about 100,000 houses, and the

rebuilding of 90 bridges and 290 kilometers of rural roads.

Of the total cost of $259 million, Government of Bihar would

contribute $39 million for the project.

The cost per house will be Rs. 55000 ($1200) with an additional

cost of Rs. 2300 ($50) for a toilet and Rs. 5000 ($110) for solar

powered lighting.

In cases where beneficiaries do not own land, the Government ofBihar will provide additional assistance of Rs. 5000 ($110) for the

people to buy the land.


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Project Details:

The project has five key components:

Owner Driven Housing Reconstruction - To reconstruct thedamaged houses of about 100,000 households using an

owner driven reconstruction model.

Reconstruction of Roads and Bridges To restore

connectivity by reconstructing damaged roads and bridges.About 2.2 million people are expected to benefit from the

construction of about 90 bridges and culverts on the state

highway and major district roads, as well as from the

reconstruction of about 290 km of rural roads.

Strengthening Flood Management Capacity To

strengthen Bihars capacity for overall flood forecasting and

the management of flood-erosion.


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Livelihood Restoration and Enhancement - To help

build social and financial capital, and restore and

expand the livelihood opportunities of the affected

people.

Improving Emergency Response Capacity To

provide contingency funding for works, goods and

services required to respond in case of future

calamities.


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India's transfer of funds data until

third quarter of 2009


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India's Prime Minister's Economic Advisory Council

which suggest that remittance flows to India willgrow strongly in the 2009/10 fiscal year (which runs

from April through March).

Inward private transfers reached $27.5 billion in the

first half of the current fiscal year, a 4.3 percentincrease on a year on year basis .

The PMEAC predicts that India will receive $30

billion in the second half of the fiscal year, which will

take the annual figure to over $57 billion, a nearly 30

percent increase over the previous fiscal year.


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Global Finance and the role

of the World Bank


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International Financial Institutions

The role of the World Bank as provider ofeconomic and development data and

intelligence, provider of infrastructure project

financing and structural adjustment lending,and of investment risk cover.


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IMF & WORLD BANK: the two sister institutions

IMF

2715 employees cooperative credit union with

185 member countriesproviding quotas whose totalreach > US$300 billion.

Crisis prevention and short-term financing of temporarybalance of payments problemswith macro-economicstabilization programs

Technical assistance Loans outstanding: $45 billion

IBRD + IDA + IFC +MIGA

10,000 employees 185 shareholder countries

The Bank leverages its AAA ratingto issue long-term global bonds inthe capital markets

Eligible countries:$1065>GDP


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World Bank Group

M H BOUCHET/CERAM (c)

IBRD: set up in 1945; 184 member countries; cumulative lending:US$394 billion; US$11 in 2004 in 40 countries; lending (12-20/3-5);

Capital: US$189 billion. Loans to low and middle-income countries

IDA: 1960; 164 members; GNP per capita


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The IBRD in the World Bank Group

World Bank (1944)

makes LT loans to countries to enhance sustainable

economic development

alleviates external debt burden

maintains profit-oriented objectives

loans are not subsidized

engages in co-financing agreements to extend

economic impact (catalytic role)


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The IBRD Organization

The World Bank is a truly global institution

184 countries, all members of the IMF (precondition) Established in 1945, as part of a new framework for

international cooperation (Bretton Woods Conference, New

Hampshire, July 1944)

The 24-member Board represents the 184 member countriesand is made up of 5 appointed and 19 elected Executive

Directors

Cumulative lending as of 2004= $394 billion Lending in 2004: $11 billion in 37 countries

Capital to Assets ratio= 1


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Cooperative institution owned by its memberswho subscribe to its capital. The amount of shares

each member is allocated reflects its quota in theIMF.

Members pay in a small portion of the value oftheir shares, the remainder is callable capital

(only be paid should the IBRD be unable to meetits obligations)

Subscribed capital= US$189 billion


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The World Bank Group and the IBRD

Capital Share and Country Voting Power

USA= 13,91%

Japan= 10,92%

Germany= 7,02

UK= 5%

France= 4,34%

Belgium-Turkey (12 countries) = 4,45%


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M H BOUCHET/CERAM (c)


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Regional IBRD-IDA Lending distribution 2004

27%

20%

5%

17%

13%

18%

LAC

Africa

Meast

South Asia

East Asia

Eurasia


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Annual lending program (IBRD/IDA)in US$ million

0

5000

10000

15000

20000

25000

1 99 2 1 99 3 1 99 4 1 99 5 1 99 6 1 99 7 1 99 8 1 999 2 00 0 2 00 1 2 00 2 2 003 2 00 4

Loans


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4 types of guarantees

Transfer restriction coverage protects against losses arising from aninvestor's inability to convert local currency (capital, interest,principal, profits, royalties, or other monetary benefits) into foreignexchange for transfer outside the host country.

Expropriation coverage offers protection against loss of the insuredinvestment as a result of acts by the host government that may reduceor eliminate ownership of, control over, or rights to the insured

investment. War and civil disturbance coverage protects against loss due to the

destruction, disappearance, or physical damage to tangible assetscaused by politically motivated acts of war or civil disturbance,including revolution, insurrection, and coups d'etat. Terrorism and

sabotage are also covered. Breach of contract coverage protects against losses arising from the

host government's breach or repudiation of a contractual agreementwith the investor.


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Toward a mutually-fruitfulpartnership between the World Bank

Group and the Private Sector


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1. Products and Services


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a. ProcurementInformation

World Bank lending generates about 40,000 contractsworth approximately $25 billion annually to firms

worldwide.

Loans are made to governments and government agencies,

which are responsible for procurement. The World Bank

issues standard bidding documents, supports borrowers in

developing procurement capacity, disseminates information

on procurement matters, and maintains liaison with thebusiness community through periodic conferences and

monthly business seminars.


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Fi i f S ll dM di i


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c. Financing for Small- andMedium- size

Enterprises

Both the World Bank and IFC have developed specialfacilities to enhance access to international credit byentrepreneurs for micro-, small-, and medium-sizeenterprises.

The "Extending IFC's Reach" initiative promotes privateinvestment in selected regions and countries where difficultconditions have constrained IFC activity.

A Small Enterprise Fund is used to invest in projects with

total costs between US$250,000 to US$5 million andprimarily provides debt financing but will also have theflexibility to make equity and quasi-equity investments andto provide local currency guarantees.


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IFC has established several programs to assist entrepreneurs

develop business proposals and raise financing for projects.

To meet the financing needs of the enterprises, the programscatalyse funds from local and foreign banks, private

investors, and investment funds.

The Consultative Group to Assist the Poorest (CGAP) is a

multidonor effort to systematically increase resources formicro enterprises. It provides governments, donors, and

practitioners with a vehicle for structured learning on how to

reach the poor with sustainable financial services. CGAP

also funds sound micro finance institutions, with the

objective of helping them achieve commercial viability.


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e. Other Products and Services

In addition to providing products, services and business

opportunities to the private sector, the World Bank enters

into various types of partnerships with private sectororganizations.


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f. Investment Marketing Services

MIGA's Investment Marketing Services Departmentprovides technical assistance to public and private sectorinvestment intermediaries in developing membercountries and transition economies.

This assistance is designed to help client countries attractand retain foreign direct investment (FDI).

More than ninety developing and transitional countrieshave benefited from capacity building, investment

facilitation and information dissemination assistance fromIMS.


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Focal Point for Business Inquiries: The BPC acts as a

referral service and hot line, directing incoming

inquiries (via phone, fax, and e-mail) to appropriate

staff within the Bank Group for action. It also

disseminates general information on Bank Group

products, services and special initiatives of interest to

businesses. Partnerships with Business Organizations: The BPC is

establishing partnerships with leading business

organizations around the world (such as chambers of

commerce and federation of industries) to disseminateinformation about the Bank Group's private sector

activities.


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INTERNATIONAL TRADE

AFTER THE CRISIS

Sebastian Saez

Senior Economist

International Trade Department

World Bank


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CONTENTS

CRISIS CHARACTERISTICS

WHAT WE LEARNT FROM THE CRISIS

FUTURE TRENDS AND THEIR

IMPORTANCE FOR THE REGION


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Sudden, severe andsynchronized collapse

(Richard Baldwin, 2009)

CRISIS CHARACTERISTICS

S dd d h i d


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Sudden, severe and synchronized

collapse

Exports Growth by RegionImports Growth by Region

Source: World Bank, Global Monitoring Report, 2010.


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Commercial transmissionchannels

COMMERCIALCHARACTERISTICS OF THE

CRISIS

EVOLUTION OF RAW MATERIAL


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EVOLUTION OF RAW MATERIAL

PRICES

Source: World Bank based on WTO data, Global

Monitoring Report, 2010.

Source: World Bank, Global Economic

Prospects, Summer, 2010


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They were quite generalized.

Source: World Bank based on WTO data, Global Monitoring Report, 2010.

Number of restrictive andliberalizing measures


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DEVELOPING COUNTRIES HAVE STARTED MOST OF

THE PROTECTIONIST ACTIONS

Source : Bown, Chad P. (2010) Temporary Trade Barriers Database,May, available at http://econ.worldbank.org/ttbd

0

5

10

15

20

25

30

35

40

45

50

1Q-2007

2Q-2007

3Q-2007

4Q-2007

1Q-2008

2Q-2008

3Q-2008

4Q-2008

1Q-2009

2Q-2009

3Q-2009

4Q-2009

1Q-2010

Investigaciones Iniciadas1Q 2007 - 1Q 2010(a nivel de productos)

Initiated by

developingeconomies

Initiated bydevelopedeconomies

Investigations initiated 1Q 2007

1Q 2010(at product level)


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DEVELOPING COUNTRIES HAVE ADOPTED

MOST OF THE PROTECTION ACTIONS

0

5

10

15

20

25

30

35

1Q-2007

2Q-2007

3Q-2007

4Q-2007

1Q-2008

2Q-2008

3Q-2008

4Q-2008

1Q-2009

2Q-2009

3Q-2009

4Q-2009

1Q-2010

Nuevas Medidas Adoptadas 1Q 2007 - 1Q 2010

Imposed bydeveloping

economies

Imposed bydevelopedeconomies

Source : Bown, Chad P. (2010) Temporary Trade Barriers Database,May, available at http://econ.worldbank.org/ttbd

New measures adopted 1Q 2007 1Q 2010

EVALUATING THE COMMERCIAL


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EVALUATING THE COMMERCIAL

RESPONSES

Some countries have adopted liberalizing actions: Mexico,Malaysia and other.

Trade facilitation actions.

Reduction in taxes affecting trade and exports.

Many of the protection actions adopted are found in industries

that traditionally make use of contingent protection.

(Messerlin, 2009)

But we should see how the situation evolves and maintain

monitoring as was done during this period.


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Higher growth is expected in the Asian region.

TRENDS

Latin American-Asian trade has grown strongly over the last few years, but it

represents less than 15% of total exports.

Strategy to increase exports to this region

Higher and growing trade fragmentation: port nodes are organized

around main trade flows that do not go through Latin America

The crisis may strengthen the integration of regional blocks:In 2010, 9 new regional agreements were notified to the WTO;

In 2009, 20 agreements were notified to the WTO.

In recent years, agreements have increasingly included services trade.

In the region this is a little developed topic


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