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A presentation on

World Bank and


Asian Development Bank
Course : International Finance
Submitted By :
Alok Kr Singh
Aravind Jayan
Ivin Kurian
Jeevan Raj A
Jithin Jimmy
Sankalp Pandey

World Bank

A component of the World Bank Group


Founded in July 1942
Headquarters at Washington D.C, United States
Motto: World Free of Poverty
Consist of two institutions
1. International Bank for Reconstruction and
Development (IBRD)
2. International Development Association (IDA)
189 countries in IBRD and 173 countries in IDA
President: Jim Yong Kim

The IBRD aims to reduce poverty in middleincome and creditworthy poorer countries, while
IDA focuses on the worlds poorest countries.
MISSION
The World Bank has two ambitious goals:
End extreme poverty within a generation and
boost shared prosperity.

Organization
Its 189 member countries are its shareholders.
The shareholders are represented by a Board of Governors,
who are generally ministers of finance of these member
countries
They have one Annual Meetings of the Boards of Governors.
France, Germany, Japan, U. K and the United States are the
five largest shareholders. They appoint an executive director,
while other member countries are represented by elected
executive directors
The President is elected by the Board of Executive Directors for
a five-year, renewable term.
The Executive Directors make up the Boards of Directors of
the World Bank. They normally meet at least twice a week to
oversee the Bank's business, including approval of loans and
guarantees, new policies and financial decisions.

Objectives:
The following objectives are assigned by the World Bank:
1. To provide long-run capital to member countries for economic
reconstruction and development.
2. To induce long-run capital investment for assuring Balance of
Payments (BoP) equilibrium and balanced development of
international trade.
3. To provide guarantee for loans granted to small and large units and
other projects of member countries.
4. To ensure the implementation of development projects so as to
bring about a smooth transference from a war-time to peace economy.
5. To promote capital investment in member countries by the
following ways;
(a) To provide guarantee on private loans or capital investment.
(b) If private capital is not available even after providing guarantee,
then IBRD provides

The main functions can be explained with the help of the following
points:
1. World Bank provides various technical services to the member
countries. For this purpose, the Bank has established The Economic
Development Institute and a Staff College in Washington.
2. Bank can grant loans to a member country up to 20% of its share in
the paid-up capital.
3. The quantities of loans, interest rate and terms and conditions are
determined by the Bank itself.
4. Generally, Bank grants loans for a particular project duly submitted to
the Bank by the member country.
5. The debtor nation has to repay either in reserve currencies or in the
currency in which the loan was sanctioned.
6. Bank also provides loan to private investors belonging to member
countries on its own guarantee, but for this loan private investors have
to seek prior permission from those counties where this amount will be
collected.

Operations

Fund Generation
Loans
Grands
Capital Budgeting
Analytical & advisory services
Other Key activities

Membership
Any country can become the member of
world bank if 75% of the existing member
countries approved the application.
Any member nation can also resign from its
membership voluntarily or if any country
violates the rules of the world bank.

Introduction
The Asian Development Bank was conceived in the early 1960s
as a financial institution that would be Asian in character and
foster economic growth and cooperation in one of the poorest
regions in the world. A resolution passed at the first Ministerial
Conference on Asian Economic Cooperation held by the
United Nations Economic Commission for Asia
The Asian Development Bank (ADB) is a
regional development bank established on 19 December
1966 which is headquartered in Philippines.
Motto - Fighting poverty in Asia and the Pacific
Purpose - Social and economic development

Structure
An international development finance institution
President - Takehiko Nakao ( Japan )
Headquartered in Manila, Philippines
Owned by 67 members : 48 regional, 19 non-regional
31 field offices
3,105 employees from 59 countries
Each member county is represented on the Board of
Governors
12 Executive Director

The Regions Poverty Challenge


-- It remains home to half of the worlds extreme poor
-- 451 million in developing Asia live on $1.90 a day
-- 260 million people lack access to improved drinking water supply
-- 1.5 billion people are still without sanitation access
-- 1 out of 24 children dies before reaching age 5

ADBs Vision
An Asia and Pacific region free of poverty

ADBs Mission
To help our developing member countries reduce poverty and
improve quality of life

Where does ADB get its funding?


ADB raises funds through bond issues on the world's capital
markets. We also rely on our members contributions, retained
earnings from our lending operations, and the repayment of
loans.

Focus areas
80% of ADBs lending is concentrated public sector lending in five
operational areas.
-- Education
-- Environment, Climate Change, and Disaster Risk Management
-- Regional Cooperation and Integration
-- Finance Sector Development
-- Health and Agriculture

Functions
1. Promote investment in the region of public and private capital
for development purposes.
2. Provide loans for the economic and social development of the
member countries of the region.
3. Help member countries in coordinating their development
policies and plans. Asian Development Bank Fighting Poverty in
Asia and the Pacific
4. Provide technical assistance for the preparation, financing and
execution of development projects and programmes.

5. Undertake such other activities and provide such other services


as may advance its objectives.
6. Provide financial and technical assistance to member countries
for environmental protection. Asian Development Bank Fighting
Poverty in Asia and the Pacific
7. Act as financial intermediary by transferring resources from
global capital markets to developing countries.
8. Support public resource mobilization and management to
member countries. Asian Development Bank Fighting Poverty in
Asia and the Pacific

Strategy 2020
Three Strategic Agendas:
-- Inclusive Economic Growth
-- Environmentally Sustainable Growth
-- Regional Integration and Cooperation
Drivers of Change:
-- Private Sector Development
-- Good Governance and Capacity Development
-- Gender Equity
-- Knowledge Solutions
Core Operational Areas:
-- Infrastructure
-- Environment including Climate Change
-- Regional Cooperation and Integration
-- Finance Sector Development
-- Education

THANK YOU