59 - World Bank

GK BY - SANJAY UTTAM

                           WORLD BANK

1). The World Bank is an international financial institution that provides loans to developing countries for capital programs

2). It comprises of 2-institutions

· International Bank for Reconstruction and Development (IBRD) – 188 countries

· International Development Association (IDA) – 172 countries

3). The World Bank’s official goal is the reduction of poverty

4). It was established in 1944

5). Headquarters – Washington DC, United States

6). Founders – Lord Keynes and Harry Dexter White – Fathers of both the World Bank and the International Monetary Fund

7). Parent Organization – World Bank Group (WBG)

8). President – same as the President of WBG – presently Jim Yong Kim

9). Objectives of World Bank

· To provide guarantee for loans granted to small and large units and other projects of member countries
· To ensure the implementation of development projects so as to bring about a smooth transference from a war-time to peace economy

10). It has 2-types of members:
a. Founder members
b. General members

11). India is a founder member

12). Voting right of every member is based on the member country’s share in the total capital of the Bank

13). Every member of the IMF is automatically a member of World Bank

14). Any member can be debarred from World Bank under the following conditions

· By written notice to the bank, but such country has to repay the granted loans on terms and conditions decided at the time of sanctioning the loan

· Any country working against the guidelines of Bank can be debarred by the Board of Governors

15). Top 5-member countries with voting powers are as follows:
· United States – 15.85%
· Japan – 6.84%
· China – 4.42%
· Germany – 4%
· United Kingdom – 3.75%

16). The initial authorized capital of the World Bank was 10,000 million which was divided into 1lakh shares each

17). The authorized capital of the Bank has been increased from time to time with the approval of the member countries. The member countries repay the share amount to the World Bank in the following ways:

· 2% allotted share are repaid in gold, US dollar or SDR

· 18% of the country’s capital share in its own currency

· Remaining 80% share is deposited by the member country on the demand of World Bank

18). World Bank can grant loans up to 20% of the member country’s share paid up as capital

19). World Bank takes guidance of the following international institutions
· FAO
· WHO
· UNESCO
· UNIDO

20). 75% of its total loans are sanctioned to developing countries while 25% to developed countries