World Bank Group

1
World Bank Group

• Working for a world free of poverty

John Garrison Civil Society Team
2
AGENDA

• Global Development Context
• Bank Origins
• Organizational Structure
• Financing Instruments
• Evolving Paradigm
• Development Projects

11/4/2015
2
3
The Development Challenge

• Poorest fifth 3 of world expenditures
• Richest fifth 75 of world expenditures
• Developed countries spend (OECD 2006)
• 1.204 billion a year on defense
• 360 billion a year in agricultural
  subsidies
• 103 billion in aid to developing
  countries
• 300 billion via remittances
• Population growth over the next 25
  years
• 50 million in rich countries
• 1.5 billion in poor countries
• Half of the population is under
  25

4
Millennium Development Goals (MDGs)

• Goal 1 Wipe out extreme poverty and hunger
• Goal 2 Get all children a primary school
  education
• Goal 3 Help women get equal rights and empower
  them.
• Goal 4 Reduce death rate of young children
• Goal 5 Improve the health of mothers
• Goal 6 Combat HIV/AIDS, malaria, and other
  diseases
• Goal 7 Help countries protect their
  environments
• Goal 8 Promote a global partnership for
  development

5
The Good News

• The world is on track globally to meet the
  Poverty Reduction Goal

6
The Bad News
Some regions of the world may be left behind
7
ORIGINS
11/4/2015
7
8
The World Bank

• International Bank for Reconstruction and
  Development established July 1944, Bretton
  Woods, New Hampshire.
• Its mission? To rebuild Europe after World War
  II.

9
Initial Borrowers

• France was the first borrower for 250 million to
  finance post-war reconstruction in 1946.
• Many developed nations who are now donors, were
  also borrowers, such as Austria, Australia,
  Denmark, Japan, Italy, Slovenia, Greece, and
  Chile.

10
ORGANIZATIONAL STRUCTURE
11/4/2015
10
11
Todays World Bank Group
1945
1988
1956
1960
1966
12
How the World Bank Operates

• 185 Member Countries appoint their Governors
• Governors delegate specific duties to 24
  Executive Directors
• President of the World Bank reports to the Board
  of Executive Directors

13
Voting Powers of Executive Directors for IBRD
14
Organizational Structure
11/4/2015
14
15
World Bank Staff

• Total Bank staff numbers about 10,000. 7,000 at
  HQ and 3,000 in the field.
• Developing country nationals represent 55 of
  total staff.

16
FINANCING INSTRUMENTS
11/4/2015
16
17
Source of Funds for Bank Loans and Credits

• IBRD has a AAA bond rating and raises funds on
  capital markets. (Rate lower than commercial
  Banks) (190 billion)
• IDA credits to the worlds poorest
  countries are funded largely from donor
  contributions, with additional funds from
  IBRD profits and credit repayments. (No
  interest rate / 45 year repayment)
• - 1,065 GNI per capita
• 80 countries

18
World Bank Funding Levels Have Changed Over Time
1991 - 2005
19
EVOLVING DEVELOPMENT PARADIGM
11/4/2015
19
20
World Bank Priorities Have Changed Over Time

• In 1980, investment in the power sector accounted
  for 21 of Bank lending. It now accounts for 5.
• Lending for health, education, and social
  protection now accounts for 25 of Bank lending.
• New areas include environment, HIV/AIDS,
  governance, community-driven development.

21

• Evolving Development Paradigm

• 1950s (Europe Reconstruction) Physical
• 1960s (Rural) Natural
• 1970s (Human Development) Human
• 1980s (Economic Reform) Financial
• 1990s (Poverty Reduction) Social
• 2000s (Governance) Institutional

22
NEW CONCEPTUAL FRAMEWORK

• Comprehensive Development Framework
• Holistic approach
• Poverty reduction (results-based)
• Country ownership
• Broader participation
• Partnerships (donor coordination)

23
NEW INSTRUMENTS

• Information Disclosure
• PICs in 80 countries
• Environmental Social Safeguards (10)
• Compliance Mechanisms (IP, CAO)
• Debt Relief
• HIPC (26 countries / US41 billion)
• MDRI (19 countries / US40 billion)
• Poverty Reduction Strategies (PRSP)
• WB / IMF joint commitment
• 60 countries
• Community Driven Development (10 portfolio)

24
DEVELOPMENT PROJECTS
11/4/2015
24
25
Project Cycle
Bank / Borrower
Bank
Bank
Borrower
Bank / Borrower
Bank
Bank / Borrower
11/4/2015
25
26
Where Does the Bank Work Today?
27
2007 Lending by Region24.7 billion
28
Work Today

• Basic education and health services
• Poverty reduction
• Infrastructure / Energy
• Environmental protection / Climate change
• Private sector investment
• Governance and anti-corruption

29
2007 Lending by Sector
Agriculture 7
Total Lending 24.7 billion
30
Books to Read

• The Bottom Billion Why the Poorest Countries
  are Failing and What Can be Done About it by
  Paul Collier
• Globalization and its Discontents Joseph
  Stiglitz
• The End of Poverty Economic Possibilities for
  our Time Jeffrey Sachs
• The White Mans Burden Why the West's Efforts
  to Aid the Rest have done so much Ill and so
  Little Good William Easterley
• The World s Banker Sebastian Mallaby

31
Thank you!

http//www. worldbank.org
11/4/2015
31