Role Of World Bank In Developing Countries 5c46q

 The

World Bank is an international financial institution that provides financial and technical assistance to developing countries for development programs (e.g. bridges, roads, schools, etc.) with the stated goal of reducing poverty.

 Major

institutions created as a result of the Bretton Woods Conference in 27th December, 1944

 Two

main countries which shaped the negotiations were United States and Britain

 Provide

assistance to developing and transition countries  Promote the economic development of the world's poorer countries  Finance the poorest developing countries whose per capita GNP is less than $865 a year special financial assistance through the International Development Association (IDA)

 Build capacity  Infrastructure creation  Development of Financial Systems  Combating corruption  Research, Consultancy and Training

 Investment

loans: of economic and social development projects

 Development

policy loans: Quick disbursing finance to countries



International Bank for Reconstruction and Development (IBRD) :186 member countries



International Development Association (IDA): 168 countries

Focus on three priority areas:  Safety net programs  Global recession and the food  Fuel and financial crises For this:  $8.3 billion to mitigate the crisis impact in poor countries, over and above previous commitments to the institution

 Trade flows  Bolster distressed banking systems  Keep infrastructure projects on track  Shift advisory services  microfinance institutions

Onchocerciasis Control Program (O) Successfully halted transmission of river blindness in 11 countries with a collective population of 35 million.

Consultative Group for International Agricultural Research (CGIAR) Created and promoted crop improvements in developing countries over the last 30 years through a network of research centers.

Global Environment Facility (GEF) Provides grants to developing countries to fund projects that benefit the global environment and promote sustainable livelihoods in local communities.

Consultative Group to Assist the Poorest (CGAP) Expands access by the poor in developing counctries to microfinance through a consortium of 28 public and private development agencies.

Financial Sector Reform and Strengthening Initiative (FIRST) Provides flexible, practical assistance to developing countries to strengthen their financial systems and adopt international financial standards.

Global Water Partnership (GWP) s countries in the sustainable management of their water resources. Global Alliance for Vaccines and Immunization (GAVI) Seeks to protect public health worldwide through the widespread use of vaccines. The Carbon Fund Works to develop viable, flexible market mechanisms to reduce greenhouse gas emissions under the Kyoto Protocol. Roll Back Malaria Coordinates the international fight against malaria, which kills more than 1 million people a year, most of them children in Africa. t United Nations Programme on HIV/AIDS (UNAIDS) Advocates for global action on the HIV/AIDS epidemic and works with civil society, the business community and the private sector. Education for All Focuses attention on education and strives to ensure an education for every citizen in every society



Focuses on: • Fast-track the development • seven poorest states

Total proposed lending program of US$14 billion, for the next three years  Strategy is aligned with Government of India’s own development priorities 

 

Agriculture Infrastructure: • Power • Transport • Water • Urban development



Skills

Components

Amount (US $ Million)

Loan

Rail

305

IBRD Loan repayable over 20 years with 5 year grace period

Road

150

IBRD Loan repayable over 20 years with 5 year grace period

Resettlement

79

IDA Credit - an interest-free loan repayable over 35 years with a 10year grace period

Total From World Bank

542

Channelled through Government of India

Govt. of India Maharashtra Total Cost of Project

and

Govt.

403

945

the

The low cost and stable financing it provides with longer maturity periods  Financing through the International Development Association (IDA) 

 Interest rate: 0.75% p.a.  Repayable over a period of 35 years  Inclusive of a 10 year grace period



Government estimates investment of $475 billion

WB financed FY08: US$ 2.7 billion World Bank group had  60 active projects in the country