World Bank and Asian Development Bank(Adb) 1

8/3/2019 World Bank and Asian Development Bank(Adb) 1

http://slidepdf.com/reader/full/world-bank-and-asian-development-bankadb-1 1/36

WORLD BANKWORLD BANKAND ASIANAND ASIAN

DEVELOPMENTDEVELOPMENT

BANK(ADB)BANK(ADB)Presented by,Gauri Panchal



WORLD BANKWORLD BANK

The World Bank is a vital source of financialand technical assistance to developingcountries around the world.

It uses its financial resources, its staff, andextensive experience to help developingcountries, reduce poverty, increase economicgrowth, and improve their quality of life.

It is not a bank in the common sense; weare made up of two unique developmentinstitutions owned by 187 member countries:

the International Bank for Reconstructionand Development (IBRD) and theInternational Development Association(IDA).



MISSIONMISSION

y to fight poverty with passion and professionalism forlasting results and

y to help people help themselves and their environmentby providing resources, sharing knowledge, buildingcapacity and forging partnerships in the public and

private sectors.



WORLD BANK GROUP AGENCIESWORLD BANK GROUP AGENCIESThe World Bank Group Consists Of:

y The International Bank for Reconstruction and Development (IBRD)established in 1945, which provides debt financing on the basis of sovereignguarantees.

y The International Development Association (IDA) , established in 1960,which provides concessional financing (interest-free loans or grants), usually

with sovereign guarantees.

y The International Finance Corporation (IFC) established in 1956, whichprovides various forms of financing without sovereign guarantees, primarily tothe private sector.

y The Multilateral Investment Guarantee Agency (MIGA) established in1988, which provides insurance against certain types of risk, including political

risk, aw primarily to the private sector.

y The International Centre for Settlement of Investment Disputes(ICSID) established in 1966, which works with governments to reduceinvestment risk.



Together, they provide:

Low-interest loans Interest-free credits and grants

to developing countries for a wide array of purposes that include,

Investments in education

Health

Public administration Infrastructure

Financial and private sector development,

Agriculture, environmental and natural resource management.



THE WORLD BANK AND WTOTHE WORLD BANK AND WTO

y Globalization has increased the need for closer cooperationbetween the multilateral institutions with key roles in theformulation and implementation of different elements of theframework for global economic policy.

y In particular the International Monetary Fund (IMF), the WorldBank and the World Trade Organization.

y Each of these organizations has a mandate for such cooperationin the agreements under which they have been established.

y They also have signed agreements among themselves, for mutualcooperation and regular consultation, which identify mechanismsdesigned to foster greater coherence in global economic policy-making.



PRESIDENTPRESIDENT--ROBERT B. ZOELLICKROBERT B. ZOELLICK



WORLD BANK GROUP WORLD BANK GROUP

y Headquarters :- Washington, DC and

more than 100countries

y

Established :- 27 December,1944y President :- Robert B. Zoellick

y Membership :- 187 countries

y Affiliates :- IFC, MIGA, ICSID

y

Staff :- About 10000 all overthe world.



HISTORYHISTORYy The world bank is one of the two Bretton Woods

Institutions which were created in 1944 to rebuild a wartorn Europe after World War II .

y Later ,largely due to the contributions of the MarshallPlan,the World Bank was forced to find a new area in whichto focus its efforts.



OrganisationOrganisation

y The World Bank is like a cooperative, where its 187 membercountries are shareholders.

y The shareholders are represented by a Board of Governors, whoare the ultimate policy makers at the World Bank.

y Generally, the governors are member countries' ministers of

finance or ministers of development.They meet once a year atthe Annual Meetings of the Boards of Governors of the World

Bank Group and the International Monetary Fund.

y Because the governors only meet annually, they delegate specificduties to 25 Executive Directors, who work on-site at the Bank.

y The five largest shareholders, France, Germany, Japan, theUnited Kingdom and the United States appoint an executive

director, while other member countries are represented by 20executive directors.



y The President of the World Bank, Robert B. Zoellick, chairs meetings of theBoards of Directors and is responsible for overall management of the Bank.

y The President is selected by the Board of Executive Directors for a five-year,renewable term.

y The Executive Directors make up the Boards of Directors of the World Bank.

y They normally meet at least twice a week to oversee the Bank's business, includingapproval of loans and guarantees, new policies, the administrative budget, country

assistance strategies and borrowing and financial decisions.

y The World Bank operates day-to-day under the leadership and direction of thepresident, management and senior staff, and the vice presidents in charge of regions, sectors, networks and functions.

y Vice Presidents are the principal managers at the World Bank. For more

information about bank vice presidents, key bank managers and the organization of the Bank



MEMBER COUNTRIESMEMBER COUNTRIESy The organizations that make up the World Bank Group are ownedby the governments of member nations, which have the ultimate

decision-making power within the organizations on all matters,including policy, financial, or membership issues.

y Member countries govern the World Bank Group through

the Boards of Governors and the Boards of Executive Directors.These bodies make all major decisions for the organizations.

y To become a member of the Bank, under the IBRD Articles of Agreement, a country must first join the International MonetaryFund (IMF). Membership in IDA, IFC and MIGA are conditional onmembership in IBRD.

y Member countries govern the World Bank Group through theBoards of Governors and the Boards of Executive Directors. Thesebodies make all major decisions for the organizations.



THE DEVELOPMENT GOALSTHE DEVELOPMENT GOALS

y Goal 1: Poverty reduction and the sustainable growth in the poorestcountries, especially in Africa.

y Goal 2: Solutions to the special challenges of post-conflict countries and

fragile states.

y Goal 3: Development solutions with customized services as well as

financing for middle-income countries.

y Goal 4: Regional and global issues that cross national borders--climate

change, infectious diseases, and trade.

y Goal 5: Pulling together the best global knowledge to support

development.



Total Member Countries in each institutionTotal Member Countries in each institution

y The International Bank for Reconstruction andDevelopment (IBRD)

y The International Development Association (IDA)

y The International Finance Corporation (IFC)

y The Multilateral Investment Guarantee Agency (MIGA)

y The International Centre for Settlement of Investment

Disputes (ICSID)

187

171

183

175

147



OPERATIONSOPERATIONSy The World Bank's two closely affiliated entities²the

International Bank for Reconstruction and Development(IBRD) and the International Development Association(IDA)²provide low or no interest loans (credits) and grantsto countries that have unfavorable or no access tointernational credit markets.

y Unlike other financial institutions, World Bank doesn¶toperate for profit.

y The IBRD is market-based, and uses its high credit ratingto pass the low interest we pay for money on to itsborrowers²developing countries.

y It pays for its own operating costs, since we don¶t look tooutside sources to furnish funds for overhead.



So, where does the money come from toSo, where does the money come from tooperate the World Bank, and how do they useoperate the World Bank, and how do they use

the funds to carry out their mission?the funds to carry out their mission?

y Fund Generation

y Loans

y Trust Funds and Grantsy Analytic and Advisory service

y Capacity Building



FUND GENERATIONFUND GENERATION

y IBRD lending to developing countries is primarily financedby selling AAA-rated bonds in the world's financial markets.

y While IBRD earns a small margin on this lending, thegreater proportion of its income comes from lending out itsown capital.

y IDA is the world's largest source of interest-free loans andgrant assistance to the poorest countries. IDA's funds arereplenished every three years by 40 donor countries



LOANSLOANS



GrantsGrants Relieve the debt burden of heavily indebted poor countries.

Improve sanitation and water supplies.

Support vaccination and immunization programs to reducethe incidence of communicable diseases like malaria.

Combat the HIV/AIDS pandemic.

Support civil society organizations.

Create initiatives to cut the emission of greenhouse gases.



Analytic and Advisory ServicesAnalytic and Advisory Services

Poverty Assessments

Public Expenditure Reviews

Country Economic Reports

Sector Reports

Topics in Development



Capacity BuildingCapacity Building

y Advisory Services and Ask Us

y Global Development Learning Network

y Knowledge for Development

y Capacity Development Resource Center

y World Bank Institutes Global and Regional

Programs

y B-SPAN



Projects In IndiaProjects In Indiay INFRASTRUCTURE

y

- Rural RoadsRural roads are revitalizing village economies in Rajasthan and Himachal Pradesh.

y

- Mumbai Urban Transport Project (MUTP)The MUTP is carrying out much-needed improvements to Mumbai¶s rail and road infrastructure.

y

- Resettlement under MUTPResettling the displaced is an unprecedented exercise in improving the lives of the urban poor.

y

- Building State Highways in Andhra PradeshA new inter-state highway linking Hyderabad with Chennai has brought prosperity to the remoteregions.

y RURAL DEVELOPMENT

y

- Empowering the Poor in Tamil NaduThe livelihoods and quality of life of the rural poor, particularly women and other disadvantagedgroups, is being improved.



y

- Reclaiming Saline Lands in Uttar PradeshLarge tracts of saline lands in UP have been rendered fertile, boosting productivityand raising farmers' incomes.

y

- Better Crops, Higher Incomes in Dry Watershed Lands of KarnatakaDegraded lands have been brought under cultivation and farm yields have risen inthe drought-prone regions of Karnataka.

y

- Restoring Rain Water Reservoirs - Tanks - in KarnatakaRural communities in the poorest and driest districts are restoring traditional rainwater reservoirs - known locally as tanks - to increase the productivity of their land.

y

- Computerizing Land Records in KarnatakaWith World Bank assistance, 20 million land records have been computerized,benefiting 6.7 million farmers in Karnataka.

y

- Improving Agriculture in AssamTubewells and community-managed irrigation systems extend farming season inAssam, farmers' incomes rise significantly.

y

- Reversing the Degradation of Natural Resources in the Lower HimalayasFarmers in the lower Himalayan regions of Punjab, Haryana, Uttarakhand, HimachalPradesh and J&K have conserved soil and water, improved drinking water supply,and built roads and bridges.



y RURAL WATER SUPPLY AND SANITATION

- Bringing Water Connections to Rural Households in KeralaWomen who spent hours collecting water are now getting water in their homes.

y CREATING JOBS

- Small and Medium EnterprisesThe World Bank is financing the SME sector in India to increase job creation.

y HEALTH

- Eliminating LeprosyAccess to diagnosis and treatment services has increased, particularly for the poorest,cutting leprosy cases in half between 1993 and 2000.

- Controlling TBRemarkable progress is being made in controlling the spread of tuberculosis - a leadingcause of illness and death in adults in India.

y

- Reducing the Incidence of Cataract by more than half The World Bank has been a leading partner in India¶s efforts to address cataract blindnesswith a special focus on women and those living in tribal and remote areas.

y RECONSTRUCTION

- Rebuilding After the TsunamiHelping to rebuild lives and livelihoods after the 2004 tsunami.



y Total IBRD/IDA Commitments as of end June 2011 (FY11): $25.6 billion(by fiscal year, in nearest $ billion)

Commitments FY06 FY07 FY08 FY09 FY10 FY11

New Lending 1.4 3.7 2.1 2.3 9.3 5.5

Total Commitments

(Active Projects)

11.3 14.3 13.8 14.9 21.4 25.6

Total Number of

Active Projects

56 67 60 61 75 81



ASIAN DEVELOPMENT BANK (ADB)ASIAN DEVELOPMENT BANK (ADB)

The Asian Development Bank (ADB) isa regional development bank establishedon 22 August 1966 to facilitate economic

development of countries in Asia.

The bank admits the members of theUnited Nations Economic and SocialCommission for Asia and the Pacific(UNESCAP, formerly known as the United

Nations Economic Commission for Asiaand the Far East) and non-regionaldeveloped countries.

ADB was modeled closely on the WorldBank and has a similar weighted votingsystem where votes are distributed inproportion with member's capitalsubscriptions.



ADB AND WTOADB AND WTO

y In January 2002, the Asian Development Bank (ADB)strengthened its services in the trade sector by creatinggovernance, finance, and trade divisions in each regionaldepartment.

y In addition, in May 2002, ADB and WTO concluded amemorandum of understanding to cooperate in technicalassistance (TA) activities involving WTO-related issues in theregion.

y ADB launched two WTO-related capacity-building programs in20021 and 2003.



ORGANISATIONORGANISATION

y The highest decision making tier at ADB is its Board of Governors,to which each of ADB's 67 members nominate one Governor andan Alternate Governor to represent them.

y Since its foundation in 1966, ADB's Headquarters has been basedin Manila, Philippines.

y Its present building in the business district of Ortigas,Mandaluyong City, was opened in 1991 and accommodates about3,000 personnel.

y ADB also has 30 field offices, including resident and regionalmissions



MANAGEMENTMANAGEMENT

y The President is Chairperson of the Board of Directors, and under the Board'sdirection, conducts the business of ADB.

y He is responsible for the organization, appointment, and dismissal of theofficers and staff in accordance with regulations adopted by the Board of Directors.

y The President is elected by the Board of Governors for a term of five years, andmay be reelected.

y He is also the legal representative of ADB.

y On 17 April 2006, the Board of Directors approved the recommendation on thereassignment of the functions and duties of the operations vice presidents.

y The President now heads a management team comprising five Vice-Presidentsand the Managing Director General, who supervise the work of ADB'soperational, administrative, and knowledge departments.



PRESIDENT OF ADB and thePRESIDENT OF ADB and theCHAIRPERSON OF ADBµS BOARDCHAIRPERSON OF ADBµS BOARD

OF DIRECTORSOF DIRECTORS--HARUHIKOHARUHIKOKURODAKURODA



HISTORYHISTORY

y ADB was conceived amid the postwar rehabilitationand reconstruction of the early 1960s.

y The Philippines capital of Manila was chosen to host

the new institution - the Asian Development Bank.

y It opened its doors on 19 December 1966, with 31members to serve a predominantly agriculturalregion.

y As 2007 drew to a close, ADB celebrated 41 years of fruitful cooperation with the governments and peoplesof the Asia and Pacific region.



MEMBERSHIPMEMBERSHIP

y From 31 members at its establishment in 1966,ADB has grown to encompass 67 members.

y Of which 48 are from within Asia and the Pacificand 19 outside.

y Georgia is the 67th and newest member, having joined ADB effective 2 February 2007



OBJECTIVESOBJECTIVES

y ADB aims for an Asia and Pacific free from poverty. Over half the population remains poor,with one child in 20 dying before the age of 5, over 250,000 women dying annually fromchildbirth and pregnancy, over five million living with HIV AIDS and 3/5 of global TB casesfound in the region.

y With more than $17.5 billion in approved financing, 2,800 employees from 59 countries,ADB in partnership with member governments, independent specialists and other financialinstitutions is focused on delivering projects that create economic and developmentimpact.

y

Economists, sociologists, engineers, gender experts and environmental scientists areamongst the hundreds of professions at the bank working together to reduce poverty.

y Environmental sustainability is a core strategy of ADB¶s work as it is the poor that are mostseverely affected. Environmental damage and resource depletion are already impeding theregion¶s development and reducing the quality of life.

y ADB is active in creating the framework for the private sector to be involved in investing innew projects that underpin development and improve the lives of the 1.8 billion people inthe region who live on less than $2 a day.

y Since 2000, the Asian Development Fund has transformed the region with the constructionof thousands of schools, bridges, health clinics and roads, providing opportunities forpeople to lift themselves out of poverty.



OPERATIONSOPERATIONS

y For more than 40 years, ADB has supported projects inagriculture and natural resources, energy, finance, industry andnonfuel minerals, social infrastructure, and transport andcommunications.

y More than half of ADB's assistance has gone into building

infrastructure - roads, airports, power plants, and water andsanitation facilities.

y Such infrastructure helps lay the foundation for commerce andeconomic growth and makes essential services accessible to thepoor.

y In addition to loans, grants, and technical assistance, ADB usesguarantees and equity investments to help its developingmember countries.



Between 2007 and 2010, ADB, through theAsian Development Fund has:

y built 34,800 schools

y trained 253,000 teachers

y built or upgraded 29,400 kms of national highways androads

y provided 1.6 million new households with waterconnections

y connected over 1.19 million new households with electricity

y enabled over 1.8 million microfinance accounts to beopened or end borrowers reached



World Bank and Asian Development Bank(Adb) 1

Documents