World Bank Group

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World Bank Group

• Working for a world free of poverty

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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.

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World Bank 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, Singapore, and Greece.

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What Does the World Bank Do Now?

• One of the world's largest sources of development
  assistance.
• In fiscal 2001, it provided more than US17
  billion in loans to developing countries.
• It works in more than 100 developing economies.
• Primary focus helping the poorest people and the
  poorest countries.

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Where Does the Bank Work Today?
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Borrowers Today

• The largest borrowers today include India,
  Mexico, Brazil, Turkey, China, Ethiopia, Vietnam,
  and the Russian Federation.

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Progress toward Poverty Reduction

• Over the last 30 years, in developing
  countries
• Life expectancy has increased from 55 to 65
  years.
• The number of literate adults has doubled.
• The total number of children in primary school
  has risen from 411 million to 681 million.
• Infant mortality has been reduced by 50 percent

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However, Many Challenges Remain

• Of the 4.7 billion people who live in the 100
  World Bank client countries
• 3 billion live on less than 2 a day and 1.2
  billion on less than 1 a day.
• Nearly 3 million children in developing countries
  die each year from vaccine-preventable diseases.
• 113 million children are not in school.
• 1.5 billion do not have clean water to drink

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Agreement Needed on How to Reverse this
Marginalization
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Millennium Development Goals

• Set targets for reductions in poverty,
  improvements in health and education, and
  protection of the environment.
• Adopted by the World Bank, the International
  Monetary Fund, and other international agencies.
  
• Measure progress from 1990 and look toward what
  can be accomplished by 2015.

http//sima/mdg
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World Bank Priorities Have Changed Dramatically

• 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.

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Priorities Today

• Improve delivery of basic education and health
  services.
• Provide social protection for losers from
  economic change.
• Direct more aid where it will do the most good.
• Protect the environment.
• Support and encourage private business
  development.
• Promote reforms to create a stable economic
  environment.

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Largest External Funder of Education

• Since 1963, the Bank has provided over US30
  billion in loans and credits for education.
• Currently finances 164 educational projects in 82
  countries.

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Largest External Funder for HIV- AIDS

• The World Bank, a co-sponsor of UNAIDS, has
  committed more than US1.7 billion to combating
  the spread of HIV-AIDS around the world.

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Largest External Funder for Health

• 11 million children die each year in developing
  countries70 die from communicable diseases.
• The Bank commits an average of US1.3 billion in
  new lending each year for health, nutrition, and
  population projects.

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Supports Debt Relief

• The World Bank and the International Monetary
  Fund launched a debt relief initiative in 1996.
• Today, 26 countries are receiving debt relief
  projected to amount to US36 billion over time.

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Large International Funder of Biodiversity
Projects

• Biodiversity loss is felt most by rural people in
  developing countries.
• The Banks portfolio of projects with clear
  environmental objectives is US16 billion.

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Partners with Many Groups in the Global Fight
against Poverty

• The Bank works with the World Wildlife Fund to
  protect forests.
• It has helped launch the Prototype Carbon Fund to
  reduce global warming.
• It partners with the UN to sponsor new
  agricultural research.

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Fights against Corruption

• Corruption is a roadblock to development and
  diverts public resources from poor people.
• Launched more than 600 programs to fight
  corruption in almost 100 countries.
• Set up stringent guidelines and mechanisms to
  ensure Bank-financed projects are free from
  corruption.

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Consults with Civil Society

• Non-governmental organizations (NGOs)
  participated in nearly 70 of Bank-financed
  projects in 2000 and consult on all country
  assistance strategies.
• The Bank has staff working in 106 Bank offices
  around the world who liaise with civil society.

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Helps Countries Emerging from Conflict

• The Bank works in 35 conflict-afflicted
  countries, supporting international efforts to
  assist war-ravaged populations.
• The Bank works on a range of needsfrom
  jump-starting the economy and investing in
  war-torn regions to repairing roads and
  infrastructure.

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Inclusion of the Poor

• Multi-year research study conducted with 60,000
  poor people in 60 countries.
• The Bank has over US1.5 billion in commitments
  for community-driven development projects.

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Todays World Bank Group
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How the World Bank Operates

• 183 Member Countries appoint their Governors
• The governors delegate specific duties to
  Executive Directors
• The president of the World Bank reports to the
  Board of Executive Directors

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Voting Power of the Executive Directors
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World Bank Staff

• Total Bank staff numbers 10,686. 7,388 at HQ and
  3,298 in the field.
• Recent recruitment shows an increase in
  environmental and social development experts and
  finance specialists
• Developing country nationals represent 55 of
  total staff at HQ.

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Source of Funds for Bank Loans and Credits

• IBRD has a AAA bond rating and raises funds on
  capital markets.
• IDA credits to the worlds poorest countries are
  funded largely from donor contributions, with
  additional funds from IBRD profits and credit
  repayments.

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The World Bank Group

• www.worldbank.org