The World Bank Group 3

1. The World Bank Group 3

2. The World Bank Mark Oshida Alex Stefanciw Patrick Hobbs Nate Stums Ryan Kendrick Lindsey Forrest

3. Introduction on the World Bank • In first world countries • Average income is $40,000 a year • In developing countries • 2.8 billion people earn only $700 a year • Of these, 1.2 billion earn less than $1 a day • 33,000 children die yearly • Each minute more than one woman dies during childbirth

4. World Bank’s Dream If we act now with realism and foresight, if we show courage, if we think globally and allocate our resources accordingly, we can give our children a more peaceful and equitable world. One where suffering will be reduced. Where children everywhere will have a sense of hope. This is not just a dream. It is our responsibility. James D. Wolfensohn

5. Introduction on theWorld Bank • What is the World Bank? • The World Bank works to bridge the divide between rich and poor countries. It supports the efforts of developing country governments to • build schools and health centers • provide water and electricity • fight disease • protect the environment

6. Introduction on theWorld Bank • How is the Bank Organized? • Divided into five closely associated institutions • Run by shareholders from member countries (U.S. 16%, Japan 8%, Germany 4.5%) • Directed by a President, a national of the largest shareholder (U.S.) • Employs 10,000 people including economists, educators, environmental scientists, financial analysts, and others from 160 countries

7. 5 Institutions of the World Bank • The International Bank for Reconstruction and Development • IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development, through loans, guarantees, and nonlending (including analytical and advisory) services. http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS

8. 5 Institutions of the World Bank • International Development Association • Contributions to IDA enable the World Bank to provide $7 billion per year in interest-free credits to the world’s 81 poorest countries, home to 2.5 billion people. • In most of these countries incomes average under just $500 a year per person, and many people survive on much less. http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS

9. 5 Institutions of the World Bank • The International Finance Corporation • IFC’s mandate is to further economic development through the private sector. • Working with business partners, it invests in sustainable private enterprises in developing countries and provides long-term loans, guarantees, and risk management and advisory services to its clients. http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS

10. 5 Institutions of the World Bank • The Multilateral Investment Guarantee Agency • MIGA helps encourage foreign investment in developing countries by providing guarantees to foreign investors against losses caused by noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, and war and civil disturbances. http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS

11. 5 Institutions of the World Bank • The International Centre for Settlement of Investment Disputes • ICSID helps to encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, in this way helping to foster an atmosphere of mutual confidence between states and foreign investors. http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS

12. History • Conceived during World War II (July, 1944) at Bretton Woods, New Hampshire. • Initially was called the International Bank for Reconstruction and Development (IBRD). Now is called the “World Bank Group”

14. 1944 - Present Today • Focus: • World-wide poverty alleviation. • Organization: • A multidisciplinary and diverse staff including economists, public policy experts, sectoral experts, and social scientists; 40% internationally located. • Portfolio: • Social sector lending projects, poverty alleviation, and the Comprehensive Development Framework. 1944 • Focus: • Post-war reconstruction and development • Organization: • A homogeneous staff of engineers and financial analysts, based solely in Washington, D.C. • Portfolio: • Heavy infrastructure investment projects

15. Current Events and Projects • Extending Credit to the Rural Poor of Vietnam • Reconstruction of Telecommunications in Afghanistan • Educating girls in Bangladesh • Providing Funds for the Reconstruction of Iraq

16. Extending Credit to the Rural Poor of Vietnam • Microfinance unlocks potential of poor farmers. • Small loans (averaging $360) are given to farm households that help them expand their businesses. • Loan rates are much lower than those of money lenders. • Loans are provided by seven local banks, which makes participating banks stronger and stimulates local economy. • Mobil banks provides banking to remote areas without banking branches, using specially equipped vehicles.

17. Reconstruction of Telecommunications in Afghanistan • Afghanistan currently has only two telephones per 1,000 people • The World Bank has given a $22 million credit to aid in the improvement of the telecommunication system

18. Educating Girls Bangladesh • Educational attainment of Bangladeshi women was among the lowest in the world (eighty percent were illiterate). • Money given to families of female students and participating schools as incentive to enroll girls. • Female enrollment has more than doubled to 1 million in 2001 from 462,000 in 1994.

19. Providing Funds for the Reconstruction of Iraq • Board of Executive Directors has met recently to discuss giving financial support totaling $4 billion • $36 to $56 billion may be needed from the World Bank in order to reconstruct over 14 priority sectors in Iraq • Some sectors include: education, health, employment creation, and electricity

20. Project Cycle of Financial Aid • Three Stages of the Project Cycle: • Stage One: Pipeline • Stage Two: Active • Stage Three: Closed or Dropped

21. Stage One: Pipeline • Identification: The Bank and borrowing country begin by analyzing development needs and strategies. The country then submits “application papers” to World Bank for consideration. • Preparation: The borrower must address the technical, economic, institutional, and financial issues facing the project. This phase generally lasts one to two years. • Appraisal: Bank staff then reviews the work done during the previous two steps, often spending three to four weeks in the client country, preparing the necessary loan documents. • Negotiation and Approval: Loan documents are then submitted to the Bank’s Board of Executive Directors for approval. If the loan or credit is approved, it is signed and the project moves into the “Active” stage.

22. Stage Two: Active • Effectiveness: Once a loan is approved, it is submitted to the borrowing country’s government for approval or modification. • Implementation and Supervision: With supervision from the Bank, the borrowing country evaluates bids to supply the necessary goods and services essential to the project. • This period lasts from one to ten years

23. Stage Three: Closed or Dropped • Ex-Post Evaluation: Following completion of the project, the Bank’s Operations Evaluation Department conducts an audit to measure its outcome against its original objectives. • Projects may be dropped at any point in the loan life cycle http://web.worldbank.org/WBSITE/EXTERNAL/PROJECT

24. Fields of Work • Human Resources • Finance • Economic Management • Public and Private Sector Development • Environment • “Global networks of leading experts in every field identify women and men whose experience, knowledge, and talents contribute to improving the quality of life in developing countries.”

25. Internship Program • Eligibility • Undergraduate degree • Enrolled in full-time graduate program • Highly Qualified • Students who are nationals of Bank’s member countries are often recruited • Hourly Salary • Responsible for living arrangements and travel

26. Professional Staff • Experts with strong academic training • Minimum of 5 years experience • Understanding of development issues • International work experience • Interpersonal and communication skills

27. Mission Statement • To fight poverty with passion and professionalism for lasting results. • To help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors. • To be an excellent institution able to attract, excite, and nurture diverse and committed staff with exceptional skills who know how to listen and learn.