WHAT IS THE WORLD BANK?

The World Bank is an international financial institution that provides loans to

developing countries for capital programs.
The World Bank Institute (WBI) is a global connector of knowledge, learning and
innovation for poverty reduction.
ccording to the World Bank!s rticles of greement, all of its decisions must be
guided by a commitment to promote foreign investment, international trade, and
facilitate capital investment.

The World Bank comprises only two institutions" the International Bank for
#econstruction and $evelopment (IB#$) and the International $evelopment
ssociation (I$).
Historical Background:
%&''
The World Bank is one of four institutions
created at the Bretton Woods (onference in
%&''.
%&)*
+rom its conception until %&)*, the bank
undertook a relatively low level of lending.
%&),-%&,.
+rom %&), to %&,., the bank concentrated on
meeting the basic needs of people in the
developing world.
Mission and ision:
/ission" Its mission is to fight poverty with passion and professionalism for lasting
results and to help people help themselves and their environment by providing resources,
sharing knowledge, building capacity and forging partnerships in the public and private
sectors.
%&,.
In %&,., the World Bank dministrative
Tribunal was established to decide on disputes
between the World Bank 0roup and its staff.
%&,&
+rom %&,&, World Bank policy changed in
response to criticism from many groups.
%&,&
%&&%
In %&&%, the WB announced that it would not
finance any commercial logging or infrastructure
pro1ects that do harm to the environment.
2.%2
In 2.%2, for the first time, there are two
candidates nominated for the
presidency of the World Bank who are not from
the 3nited 4tates.
In %&,&, World Bank named an implementing
agency in /ontreal protocols to stop the o5one
damage
2..%
In 2..% the World Bank adopted a gender
e6uality policy as a means to help reduce
poverty.
7ision" The World Bank8s vision is to achieve a world that is free of poverty and that will
be able to achieve all the /illennium $evelopment 0oals.
M!"#!r $ountri!s and %o&!rning Bodi!s:
The World Bank is like a cooperative, made up of %,, member countries. These member
countries, or shareholders, are represented by a Board of 0overnors, who is the ultimate
policymakers at the World Bank.
The list of the /ember (ountries are presented below-
A'g(anistan) Al#ania) Alg!ria) Angola) Antigua and Bar#uda) Arg!ntina) Ar"!nia) Australia)
Austria) A*!r#ai+an) Ba(a"as) Ba(rain) Banglad!s(, Bar#ados) B!larus) B!lgiu") B!li*!)
B!nin B(utan Boli&ia Bosnia and H!r*!go&ina Bots,ana, Bra*il, Brun!i Darussala",
Bulgaria, Burkina -aso, Burundi, $a"#odia, $a"!roon, $anada, $a.! !rd!, $!ntral
A'rican R!.u#lic, $(ad, $(il!, $(ina, $olo"#ia, $osta Rica, $ot! d/I&oir!, $roatia, $[Link],
$*!c( R!.u#lic, D!n"ark, D+i#outi, Do"inica, Do"inican R!.u#lic, Ecuador, Eg0.t) Ara#
R!.u#lic o', El Sal&ador, E1uatorial %uin!a, Eritr!a, Estonia, Et([Link], -i+i, -inland, -ranc!,
%a#on, %a"#ia) %!orgia, %!r"an0, %(ana, %r!!c!, %r!nada, %uat!"ala, %uin!a, %uin!a2
Bissau, %u0ana, Haiti, Honduras, Hungar0, Ic!land, India, Indon!sia, Iran) Isla"ic R!.u#lic
o', Ira1, Ir!land, Isra!l, Ital0, 3a"aica, [Link], 3ordan, Ka*ak(stan, K!n0a, Kiri#ati, Kor!a)
R!.u#lic o', Koso&o, Ku,ait, K0rg0* R!.u#lic, Lao 4!o.l!/s D!"ocratic R!.u#lic, Lat&ia,
L!#anon, L!sot(o, Li#!ria, Li#0a, Lit(uania, Lu5!"#ourg, Mac!donia) -6R o', Madagascar,
Mala,i, Mala0sia, Maldi&!s, Mali, Malta, Mars(all Islands, Mauritania, Mauritius, M!5ico,
Micron!sia) -!d!rat!d Stat!s o', Moldo&a, Mongolia, Mont!n!gro, Morocco, Mo*a"#i1u!,
M0an"ar, Na"i#ia, N!.al, N!t(!rlands, N!, 7!aland, Nicaragua, Nig!r, Nig!ria, Nor,a0,
O"an, 4akistan, 4alau, 4ana"a, [Link] N!, %uin!a, 4aragua0, 4!ru, 4(ili..in!s, 4oland,
4ortugal, 8atar, Ro"ania, Russian -!d!ration, R,anda, Sa"oa, San Marino, Sao To"! and
4rinci.!, Saudi Ara#ia, S!n!gal, S!r#ia, S!0c(!ll!s, Si!rra L!on!, [Link]!, Slo&ak R!.u#lic,
Slo&!nia, Solo"on Islands, So"alia, Sout( A'rica, Sout( Sudan, [Link], Sri Lanka, St9 Kitts and
N!&is, St9 Lucia, St9 inc!nt and t(! %r!nadin!s, Sudan, Surina"!, S,a*iland, S,!d!n,
S,it*!rland, S0rian Ara# R!.u#lic, Ta+ikistan, Tan*ania, T(ailand, Ti"or2L!st!, Togo, Tonga,
Trinidad and To#ago, Tunisia, Turk!0, Turk"!nistan, Tu&alu, :ganda, :krain!, :nit!d Ara#
E"irat!s, :nit!d Kingdo", :nit!d Stat!s, :rugua0, :*#!kistan, anuatu, !n!*u!la)
R!.u#lica Boli&ariana d!, i!tna", 6!"!n) R!.u#lic o' 7a"#ia
List o' t(! M!"#!r $ountri!s o' World #ank
Board o' %o&!rnors: The Boards of 0overnors are the ultimate policymakers at the
World Bank. The Boards of 0overnors consist of one 0overnor and one lternate
0overnor appointed by each member country. The office is usually held by the country!s
minister of finance, governor of its central bank, or a senior official of similar rank. The
0overnors and lternates serve for terms of five years and can be reappointed.
The governors delegate specific duties to 2* 9:ecutive $irectors, who work on-site at the
Bank. The five largest shareholders, +rance, 0ermany, ;apan, the 3nited <ingdom and
the 3nited 4tates appoint an e:ecutive director, while other member countries are
represented by 2. elected e:ecutive directors.
The =resident of the Bank, currently ;im >ong <im, is responsible for chairing the
meetings of the Boards of $irectors and for overall management of the Bank.
4o,!r o' t(! Boards o' %o&!rnors:
dmit and suspend members?
Increase or decrease the authori5ed capital stock?
$etermine the distribution of the net income of the Bank?
$ecide appeals from interpretations of the rticles of greement by the
9:ecutive $irectors?
/ake formal comprehensive arrangements to cooperate with other international
organi5ations?
4uspend permanently the operations of the Bank?
Increase the number of elected 9:ecutive $irectors? and
pprove amendments to the rticles of greement.
-unctions o' t(! World Bank:
World Bank performs the following functions-
%. 0ranting reconstruction loans to war devastated countries.
2. 0ranting developmental loans to underdeveloped countries.
@. =roviding loans to governments for agriculture, irrigation, power, transport, water
supply, educations, health etc.
'. =roviding loans to private concerns for specified pro1ects.
*. =romoting foreign investment by guaranteeing loans provided by other
organi5ations.
). =roviding technical, economic and monetary advice to member countries for
specific pro1ects.
A. 9ncouraging industrial development of under developed countries by promoting
economic reforms.
D!aling Matt!rs o' t(! World Bank:
%. D!al ,it( c!ntral and national #anks: It is mainly in deal with central, national
banks and in a way it conducts international monetary policy through giving loans
to countries in development.
2. Larg!2scal! land in&!st"!nt: The World Bank 0roup (WB0) promotes large-
scale land investment in developing countries as a Bwin-winC situation where
investors profit and BhostC nations benefit from economic development, improved
agricultural infrastructure, and employment opportunities.
@. -ood and 'inancial cris!s" 4ince the 2.., food and financial crises, the number
of land investment deals in developing countries has skyrocketed, particularly in
4ub-4aharan frica.
'. Building 4!ac!'ul Stat!s: The Dew $eal for 9ngagement in +ragile 4tates is a
new approach that sets out five =eace building and 4tate building 0oals, as the
foundation to achieving the /$0s, and commits national and international actors
to new ways of working to support the building of peaceful states.
*. H![Link] d!&!lo. in'rastructur!: We are encouraging regional integration and
helping develop infrastructure" power, water, transport, and information and
communications technologies.
). 4ri&at! s!ctor and [Link]'it d!&!lo."!nt: the World Bank 0roup!s lead
agency for private sector development, as well as with other nonprofit
organi5ations.
A. To o''!r "or! r![Link]&!) 'l!5i#l! and co".r!(!nsi&! solutions" The World
Bank 0roup is working with many partners, including donor trust funds and the
3nited Dations, to offer more responsive, fle:ible and comprehensive solutions in
difficult environments.
,. To "!!t "iddl!2inco"! countri!s; s.!ci'ic n!!ds" The World Bank 0roup is
working to meet middle-income countries8 specific needs with tailored assistance
that draws on an array of competitive financial products and knowledge and
learning services.
R!lations(i. ,it( Banglad!s(:
<9 The World Bank has been supporting the 0overnment of Bangladesh to implement a
market-based off-grid electrification program since 2..2.
=9 /r. rastoo <han, dditional 4ecretary, 9conomic #elations $ivision, and /s. 9llen
0oldstein, World Bank (ountry $irector for Bangladesh, signed the financing agreement
on behalf of the 0overnment of Bangladesh and the World Bank, respectively, at the
9conomic #elations $ivision.
>9 The World Bank is the largest as well as the most influential lender to the country. It is
the coordinator of aid donors in Bangladesh. 4ince Independence, it has lent E%2.* billion
to the country and played a critical role in shaping the country8s institutions and policies.
?9 In the %&A.s, during the initial phase of its operations, the World Bank concentrated
largely on pro1ect lending for achieving food self-sufficiency, mobili5ing domestic
resources, improving social indicators, and enhancing pro1ect implementation.
@9 $uring the ne:t phase of its operations in the late %&,.s, the World Bank focused on
policy reforms to create an environment conducive to private sector development. These
reforms were addressed at removing the distortions in trade, pricing, credit allocation,
and interest rates.
A9 $uring the current decade WB has emphasi5ed a lot of sectors including strengthening
the financial sector. mong these sectors there are transportation, water, sanitation F
flood protection, health F social services, information F communication, public
administration F law, finance, agriculture and industry F trade.
B9 t present the WB is working a lot of pro1ects in different sectors. mong them the
B$ =rivate 4ector $evelopment =ro1ect, Bangladesh =adma /ultipurpose Bridge
=ro1ect, 9mployment 0eneration =rogram for the =oorest, Bangladesh Integrated
gricultural $evelopment =ro1ect, Investment =romotion and +inancing +acility, #ural
Transport Improvement dditional +inancing are mentionable. Beside these there are a
lot of pro1ects in the agriculture, finance, transportation sectors.
C9 In fact, WB is the largest donor agency in the economic sector of Bangladesh.
ccording to Gahid Hussain, a senior WB economist, BWB has lent Bangladesh E%*
billion since %&A2, or one-6uarter of the aid the country received (The $aily 4tar).C It is
the key agency in the economic development of Bangladesh.
$riticis" o' World Bank:
%. There is a wide gap between the ideal, reality, principles and practices of the World
Bank.
2. The World Bank encompasses a whole range of issues but they generally center around
concern about only the approaches adopted by their in formulating their policies, and the
way they are governed.
@. The World Bank is concerned about the Iconditionality8 imposed on borrower
countries. It often attaches loan conditionality based on what is termed the IWashington
(onsensus8. Jften the conditionality are attached without due regard for the borrower
countries8 individual circumstances and the prescriptive recommendations by the World
Bank fail to resolve the economic problems within the countries.
'. With the World Bank, there are concerns about the types of development pro1ects
funded. /any infrastructure pro1ects financed by the World Bank 0roup have social and
environmental implications for the populations in the affected areas and criticism has
centered on the ethical issues of funding such pro1ects. +or e:ample, World Bank-funded
construction of hydroelectric dams in various countries has resulted in the displacement
of indigenous peoples of the area.
*. The World Bank8s role in the global climate change finance architecture has also
caused much controversy. (ivil society groups see the Bank as unfit for a role in climate
finance because of the conditionality and advisory services usually attached to its loans.
). The Bank8s undemocratic governance structure K which is dominated by industrialised
countries K its privileging of the private sector and the controversy over the performance
of World Bank-housed (limate Investment +unds have also been sub1ect to criticism in
debates around this issue.
A. The Bank8s role as a central player in climate change mitigation and adaptation efforts
is in direct conflict with its carbon-intensive lending portfolio and continuing financial
support for heavily polluting industries, which includes coal power.
,. There are also concerns that the World Bank working in partnership with the private
sector may undermine the role of the state as the primary provider of essential goods and
services, such as healthcare and education, resulting in the shortfall of such services in
countries badly in need of them.
&. The Bank8s private sector lending arm K the International +inance (orporation (I+() K
has also been criticised for its business model, the increasing use of financial
intermediaries such as private e6uity funds and funding of companies associated with ta:
havens.
%.. (ritics of the World Bank also apprehensive about the role of the Bretton Woods
institutions in shaping the development discourse through their research, training and
publishing activities
%%. There are also criticisms against the World Bank governance structures which are
dominated by industriali5ed countries. $ecisions are made and policies implemented by
leading industriali5ed countries because they represent the largest donors without much
consultation with poor and developing countries.
%2. Jne of the strongest criticisms of the World Bank has been the way in which it is
governed. While the World Bank represents %,, countries, it is run by a small number of
economically powerful countries. These countries choose the leadership and senior
management of the World Bank, and so their interests dominate the bank.
%@. The World Bank has dual roles that are contradictory" that of a political organi5ation
and that of a practical organi5ation. s a political organi5ation, the World Bank must
meet the demands of donor and borrowing governments, private capital markets, and
other international organi5ations. s an action-oriented organi5ation, it must be neutral,
speciali5ing in development aid, technical assistance, and loans.
%'. The World Bank8s obligations to donor countries and private capital markets have
caused it to adopt policies which dictate that poverty is best alleviated by the
implementation of BmarketC policies.
%*. n important criticism of the World Bank is that the =resident is always a citi5en of
the 3nited 4tates, nominated by the =resident of the 3nited 4tates (though sub1ect to the
BapprovalC of the other member countries).
%). The effect of structural ad1ustment policies on poor countries has been one of the
most significant criticisms of the World Bank.