2 The World Bank Mark Oshida Alex Stefanciw Patrick Hobbs Nate Stums Ryan KendrickLindsey Forrest
3 Introduction on the World Bank In first world countriesAverage income is $40,000 a yearIn developing countries2.8 billion people earn only $700 a yearOf these, 1.2 billion earn less than $1 a day33,000 children die yearlyEach minute more than one woman dies during childbirth
4 World Bank’s Dream If we act now with realism and foresight, if we show courage,if we think globally andallocate our resources accordingly,we can give our children amore peaceful and equitable world.One where suffering will be reduced.Where children everywherewill have a sense of hope.This is not just a dream.It is our responsibility.James D. Wolfensohn
5 Introduction on the World Bank What is the World Bank?The World Bank works to bridge the divide between rich and poor countries. It supports the efforts of developing country governments tobuild schools and health centersprovide water and electricityfight diseaseprotect the environment
6 Introduction on the World Bank How is the Bank Organized?Divided into five closely associated institutionsRun 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
7 5 Institutions of the World Bank The International Bank for Reconstruction and DevelopmentIBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development, through loans, guarantees, and nonlending (including analytical and advisory) services.
8 5 Institutions of the World Bank International Development AssociationContributions 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.In most of these countries incomes average under just $500 a year per person, and many people survive on much less.
9 5 Institutions of the World Bank The International Finance CorporationIFC’s mandate is to further economic development through the private sector.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.
10 5 Institutions of the World Bank The Multilateral Investment Guarantee AgencyMIGA 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.
11 5 Institutions of the World Bank The International Centre for Settlement of Investment DisputesICSID 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.
12 HistoryConceived during World War II (July, 1944) at Bretton Woods, New Hampshire.Initially was called the International Bank for Reconstruction and Development (IBRD). Now is called the “World Bank Group”
14 1944 - Present 1944 Focus: Post-war reconstruction and development Organization:A homogeneous staff of engineers and financial analysts, based solely in Washington, D.C.Portfolio:Heavy infrastructure investment projectsTodayFocus:World-wide poverty alleviation.Organization:A multidisciplinary and diverse staff including economists, public policy experts, sectoral experts, and social scientists; 40% internationally located.Portfolio:Social sector lending projects, poverty alleviation, and the Comprehensive Development Framework.
15 Current Events and Projects Extending Credit to the Rural Poor of VietnamReconstruction of Telecommunications in AfghanistanEducating girls in BangladeshProviding Funds for the Reconstruction of Iraq
16 Extending Credit to the Rural Poor of Vietnam 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.
17 Reconstruction of Telecommunications in Afghanistan Afghanistan currently has only two telephones per 1,000 peopleThe World Bank has given a $22 million credit to aid in the improvement of the telecommunication system
18 Educating Girls Bangladesh 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.
19 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 IraqSome sectors include: education, health, employment creation, and electricity
20 Project Cycle of Financial Aid Three Stages of the Project Cycle:Stage One: PipelineStage Two: ActiveStage Three: Closed or Dropped
21 Stage One: PipelineIdentification: 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.
22 Stage Two: ActiveEffectiveness: 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.This period lasts from one to ten years
23 Stage Three: Closed or Dropped 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
24 Fields of Work Human Resources Finance Economic Management Public and Private Sector DevelopmentEnvironment“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.”
25 Internship Program Eligibility Hourly Salary Undergraduate degreeEnrolled in full-time graduate programHighly QualifiedStudents who are nationals of Bank’s member countries are often recruitedHourly SalaryResponsible for living arrangements and travel
26 Professional Staff Experts with strong academic training Minimum of 5 years experienceUnderstanding of development issuesInternational work experienceInterpersonal and communication skills
27 Mission StatementTo 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.