The World Bank
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Group 3
The World Bank
Mark Oshida
Alex Stefanciw
Patrick Hobbs
Nate Stums
Ryan Kendrick
Lindsey Forrest
Introduction on the
World Bank
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In first world countries
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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
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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
Introduction on the
World Bank
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What is the World Bank?
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The World Bank works to bridge the divide
between rich and poor countries. It supports the
efforts of developing country governments to
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build schools and health centers
provide water and electricity
fight disease
protect the environment
Introduction on the
World Bank
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How is the Bank Organized?
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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
5 Institutions of the World Bank
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The International Bank for Reconstruction
and Development
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IBRD aims to reduce poverty in middleincome and creditworthy poorer countries by
promoting sustainable development, through
loans, guarantees, and nonlending (including
analytical and advisory) services.
http://web.worldbank.org/WBSITE/EXT
ERNAL/EXTABOUTUS
5 Institutions of the World Bank
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International Development Association
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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.
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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/EXT
ERNAL/EXTABOUTUS
5 Institutions of the World Bank
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The International Finance Corporation
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IFC’s mandate is to further economic
development through the private sector.
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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/EXT
ERNAL/EXTABOUTUS
5 Institutions of the World Bank
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The Multilateral Investment Guarantee
Agency
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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/EXT
ERNAL/EXTABOUTUS
5 Institutions of the World Bank
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The International Centre for Settlement of
Investment Disputes
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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/EXT
ERNAL/EXTABOUTUS
History
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Conceived during World War II (July, 1944) at
Bretton Woods, New Hampshire.
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Initially was called the International Bank for
Reconstruction and Development (IBRD). Now
is called the “World Bank Group”
1944 - Present
Today
1944
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Focus:
 Post-war reconstruction and
development
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Organization:
 A homogeneous staff of
engineers and financial
analysts, based solely in
Washington, D.C.
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Portfolio:
 Heavy infrastructure
investment projects
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Focus:
 World-wide poverty alleviation.
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Organization:
 A multidisciplinary and diverse
staff including economists, public
policy experts, sectoral experts,
and social scientists; 40%
internationally located.
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Portfolio:
 Social sector lending projects,
poverty alleviation, and the
Comprehensive Development
Framework.
Current Events and Projects
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Extending Credit to the Rural Poor of
Vietnam
Reconstruction of Telecommunications in
Afghanistan
Educating girls in Bangladesh
Providing Funds for the Reconstruction of
Iraq
Extending Credit to the Rural
Poor of Vietnam
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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.
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
Educating Girls Bangladesh
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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.
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
Project Cycle of Financial Aid
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Three Stages of the Project Cycle:
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Stage One: Pipeline
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Stage Two: Active
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Stage Three: Closed or Dropped
Stage One: Pipeline
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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.
Stage Two: Active
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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.
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This period lasts from one to ten
years
Stage Three: Closed or
Dropped
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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/EXT
ERNAL/PROJECT
Fields of Work
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Human Resources
Finance
Economic Management
Public and Private Sector Development
Environment
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“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.”
Internship Program
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Eligibility
Undergraduate degree
 Enrolled in full-time graduate program
 Highly Qualified
 Students who are nationals of Bank’s member
countries are often recruited
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Hourly Salary
Responsible for living arrangements and
travel
Professional Staff
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Experts with strong academic training
Minimum of 5 years experience
Understanding of development issues
International work experience
Interpersonal and communication skills
Mission Statement
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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.