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WORLD BANK

Submitted toMd. Mahmud Hasan

Submitted By•Farah Tahsin 2010237009•Riya Begum 2010237042•Mohammad Mizbahuddoza 2010237063•Habil Uddin 2010237076•Rajan Roy 2009237024

WHAT IS THE WORLD BANK?

The World Bank is an international financial institution that provides loans to developing countries for capital programs.

The World Bank is a global connector of knowledge, learning and innovation for poverty reduction.

According to the World Bank's Articles of Agreement, all of its decisions must be guided by a commitment to promote foreign investment, international trade, and facilitate capital investment.

The World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Historical Background:

1944

1965

1968-1980

1980

The World Bank is one of four institutions created at the Bretton Woods Conference in 1944.

From its conception until 1965, the bank undertook a relatively low level of lending.

From 1968 to 1980, the bank concentrated on meeting the basic needs of people in the developing world.

In 1980, the World Bank Administrative Tribunal was established to decide on disputes between the World Bank Group and its staff.

1989

1991

2001

2012

From 1989, World Bank policy changed in response to criticism from many groups.

In 1991, the WB announced that it would not finance any commercial logging or infrastructure projects that do harm to the environment.

In 2001 the World Bank adopted a gender equality policy as a means to help reduce poverty.

In 2012, for the first time, there are two candidates nominated for the presidency of the World Bank who are not from the United States.

Mission and Vision of the World Bank:

Mission:Its mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors.

Vision:The World Bank’s vision is to achieve a world that is free of poverty and that will be able to achieve all the Millennium Development Goals.

Member Countries of the World Bank:

The World Bank is like a cooperative, made up of 188 member countries. These member countries, or shareholders, are represented by a Board of Governors, who is the ultimate policymakers at the World Bank.

The list of the Member Countries are presented below-

Member Countries of the World bank

Afghanistan, Albania, Algeria, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin Bhutan Bolivia Bosnia and Herzegovina Botswana, Brazil, Brunei

Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Costa Rica, Cote d'Ivoire, Croatia, Cyprus, Czech Republic, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, Arab Republic of, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, Iceland, India, Indonesia, Iran, Islamic Republic of, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kiribati, Korea, Republic of, Kosovo, Kuwait, Kyrgyz Republic, Lao People's Democratic Republic, Latvia, Lebanon,

Lesotho, Liberia, Libya, Lithuania, Luxembourg, Macedonia, FYR of, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritania, Mauritius, Mexico, Micronesia, Federated States of, Moldova, Mongolia, Montenegro, Morocco,

Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, Samoa, San Marino, Sao Tome and Principe, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Slovak Republic, Slovenia,

Solomon Islands, Somalia, South Africa, South Sudan, Spain, Sri Lanka, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sudan, Suriname, Swaziland, Sweden, Switzerland, Syrian Arab Republic, Tajikistan, Tanzania, Thailand, Timor-Leste,

Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Republica Bolivariana de, Vietnam, Yemen, Republic of

Zambia

Governing Bodies:

Board of Governors:

The Boards of Governors are the ultimate policymakers at the World Bank. The Boards of Governors consist of one Governor and one Alternate Governor appointed by each member country. The office is usually held by the country's minister of finance, governor of its central bank, or a senior official of similar rank. The Governors and Alternates serve for terms of five years and can be reappointed.

The governors delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest shareholders, France, Germany, Japan, the United Kingdom and the United States appoint an executive director, while other member countries are represented by 20 elected executive directors.

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Ministry of Finance

Governor of its Central Bank

Senior Official of Similar Rank

The Boards of Governors

One Governor

One Alternate Governor

appointed by each member country

Power of the Boards of Governors:

• Admit and suspend members;• Increase or decrease the authorized capital stock;• Determine the distribution of the net income of the Bank;• Decide appeals from interpretations of the Articles of Agreement by

the Executive Directors;• Make formal comprehensive arrangements to cooperate with other

international organizations;• Suspend permanently the operations of the Bank;• Increase the number of elected Executive Directors; and• Approve amendments to the Articles of Agreement.

Functions of the World Bank:

World Bank performs the following functions-Granting reconstruction loans to war devastated countries.Granting developmental loans to underdeveloped countries.Providing loans to governments for agriculture, irrigation, power, transport, water supply, educations, health etc.Providing loans to private concerns for specified projects.Promoting foreign investment by guaranteeing loans provided by other organizations.Providing technical, economic and monetary advice to member countries for specific projects.Encouraging industrial development of under developed countries by promoting economic reforms.

Dealing Matters of the World Bank:

Central and national banks Large-scale land investment Food and financial crises Building Peaceful States Helping develop infrastructure Private sector and non-profit development Offer more responsive, flexible and comprehensive

solutions Meet middle-income countries’ specific needs

World Banks’s Relationship with Bangladesh:

The World Bank is the largest as well as the most influential lender of Bangladesh. It is the coordinator of aid donors in Bangladesh. Since Independence, it has lent $12.5 billion to the country and played a critical role in shaping the country’s institutions and policies.

In the 1970s, the World Bank concentrated largely on project lending for achieving food self-sufficiency, mobilizing domestic resources, improving social indicators, and enhancing project implementation of Bangladesh

During the next phase of its operations in the late 1980s, the World Bank focused on policy reforms to create an environment conducive to private sector development of Bangladesh.

The World Bank has been supporting the Government of Bangladesh to implement a market-based off-grid electrification program since 2002.

In recent times, WB has approved a low-interest loan which amounts $6.1 billion. Of the $6.1 billion, $1.2 billion is allocated to the Padma Multipurpose Bridge mega-project. Along with the loan it suggested that Bangladesh should adopt a 9- to 12-year plan to address the problems with gas and power.

World Bank has the larger share of credit in Bangladesh as percentage of GDP. Thus the World bank is contributing in the growth of the economy of Bangladesh. Over the years, the economy of Bangladesh has expanded a lot. In the way of expansion Bangladesh got the maximum help from its central donor agency World Bank.

At present the WB is working a lot of projects in different sectors. Among them the BD Private Sector Development Project, Employment Generation Program for the Poorest, Bangladesh Integrated Agricultural Development Project, Investment Promotion and Financing Facility, Rural Transport Improvement Additional Financing are mentionable.

Criticism of the World Bank:

There is a wide gap between the ideal, reality, principles and practices of the World Bank.

The World Bank encompasses a whole range of issues but they generally center around concern about only the approaches adopted by their in formulating their policies, and the way they are governed.

The World Bank is concerned about the ‘conditionality’ imposed on borrower countries. Often the conditionality are attached without due regard for the borrower countries’ individual circumstances and the prescriptive recommendations by the World Bank fail to resolve the economic problems within the countries.

Criticism has centered on the ethical issues of funding in different projects of the World Bank. For example, World Bank-funded construction of hydroelectric dams in various countries has resulted in the displacement of indigenous peoples of the area.

The World Bank’s role in the global climate change finance architecture has also caused much controversy. Civil society groups see the Bank as unfit for a role in climate finance because of the conditionality and advisory services usually attached to its loans.

There are also concerns that the World Bank working in partnership with the private sector may undermine the role of the state as the primary provider of essential goods and services, such as healthcare and education, resulting in the shortfall of such services in countries badly in need of them.

Critics of the World Bank also apprehensive about the role of the Bretton Woods institutions in shaping the development discourse through their research, training and publishing activities.

There are also criticisms against the World Bank governance structures which are dominated by industrialized countries. Decisions are made and policies implemented by leading industrialized countries because they represent the largest donors without much consultation with poor and developing countries.

One of the strongest criticisms of the World Bank has been the way in which it is governed. While the World Bank represents 188 countries, it is run by a small number of economically powerful countries. These countries choose the leadership and senior management of the World Bank, and so their interests dominate the bank.

The World Bank has dual roles that are contradictory: that of a political organization and that of a practical organization. In case of maintaining these dual roles, it does not show neutrality in specializing in development aid, technical assistance, and loans.

An important criticism of the World Bank is that the President is always a citizen of the United States, nominated by the President of the United States (though subject to the “approval” of the other member countries).

The effect of structural adjustment policies on poor countries has been one of the most significant criticisms of the World Bank.

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