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    Add as FriendROLE AND FUNCTIONS OF WORLD BANK

    by: roopesh

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    1 : ROLE AND FUNCTIONS OF WORLD BANK Roopesh m Imk kollam
    2 : WORLD BANK The world bank group originated as a result of the Bretton woods conference of 1944, is one of the world’s largest sources of development assistance and it has extended assistance to more than 100 developing economies , bringing a mix of finance and ideas to improve living standards and eliminate the worst form of poverty. For each of it’s clients, the Bank works with government agencies, non governmental organizations ,and the private sector to formulate assistance strategies.
    3 : The world bank group consist of five closely associated institutions, each playing a distinct role in the mission to fight poverty and improve living standards for people in the developing world. The term world bank specially refers to two of the five. The International bank for reconstruction and development (IBRD) The international development association (IDA) Other institutions are The international finance corporation (IFC) The multilateral investment guarantee agency The international centre for settlement of investment disputes (ICSID)
    4 : WORLD BANK’S MISSION ,VALUES AND PRINCIPLES. Mission To fight poverty with passion and professionalism for lasting result. To help people themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnership 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.
    5 : PRINCIPLES Client centered Working in partnership Accountable for quality results Dedicated to financial integrity and cost- effectiveness Inspired and innovative
    6 : VALUES Personal honesty Integrity Commitment Working together in teams- with openness and trust Empowering others and respecting deferences Encouraging risk taking and responsibility Enjoying our work and our families
    7 : PURPOSES OF WORLD BANK The purposes of world bank as laid down in the articles of agreement are To assist in the reconstruction and development of the territories of the members, by facilitating the investment of capital for productive purposes, including the restoration of economies destroyed or disrupted by war. To promote private foreign investment by means of guarantees or participation in loans and other investments made by private investors, and when private capital is not available on reasonable terms, to supplement private investment by providing on suitable conditions.
    8 : To promote the long range balanced growth of international trade and main tenance of equilibrium in the balance of payment, by encouraging international investment of the productive resources of members, there by assisting in the raising productivity, the standards of living and conditions of labor in their territories.
    9 : GUIDING PRINCIPLES In it’s lending operations, the bank is guided by certain policies which have been formulated on the basis of the articles of agreement. 1.The Bank should asses the repayment prospects of the loans . 2.The Bank should lend only for specific projects , which are economically and technically sound and of a high priority nature. 3.The bank lends only to enable a country to meet the foreign exchange content of any project cost. 4.The bank does not expect the borrowing country to spend the loan in a particular country
    10 : 5.It is the bank’s policy to maintain continuing relations with borrower’s with a view to check the progress of projects and keep in touch with financial and economic developments in borrowing countries. 6.The Bank indirectly attaches special importance to the promotion of local private enterprice.
    11 : ROLE OF WORLD BANK . : The lack of consensus about the World Bank's specific role (and how it should be translated into an operational mission, measurable objectives, and policies) has burdened the institution for years. Differences of opinion about the fundamental role of the Bank go beyond the fact that some shareholding countries borrow from the Bank while others provide the funds. While there are many expectations and definitions of the fundamental role of the Bank, four different models or perspectives are the most common. The first is the view that the World Bank is a financial intermediary, the Bank-as-a-bank model. A second perspective or model is the view of the Bank as an evangelical agent in charge of changing the behaviour of governments in developing countries. ..
    12 : Bank-as-bank From the perspective the World Bank's role is, quite simply, to be a bank. Therefore, maintaining the institution's long-term financial integrity is a crucial purpose on which all other goals depend. opportunities at the Bank for their nationals The second model views the Bank as an instrument for the advancement of the national interest of the countries with more influence on its decisions. Such national interest is expressed in their policies towards other countries, in procurement goals for their companies in projects financed by the Bank, or even in expanding employment.
    13 : The third is the evangelical model. A growing constituency sees the Bank's combination of money, access, knowledge, and expertise as a powerful instrument to convert the souls of governments implementing misguided public policies. This is, in fact, a more concrete manifestation of the expectation that the Bank's main role is to support a liberal (or market-based) economic system, as expressed in the promotion of liberal trade and investment regimes. The fourth is the view that the World Bank is a mechanism to transfer financial resources from richer to poorer
    14 : Another version of this approach sees the Bank as an instrument for the promotion of values not readily accepted by the traditional power structures within developing countries. Increasing investment in and attention to women, environmental protection and better governance in terms of respect for human rights or accountability and transparency in government decisions are the prime examples of the sort of objectives that flow from this perspective of the Bank's role.
    15 : Still others maintain that the advisory and "imprimatur" roles of the bank will grow even faster in the future, as economic and institutional constraints will increasingly limit its role to act as a financial intermediary.. This trend will presumably accelerate in the future, pushing the Bank towards its knowledge-intermediary, research-center, consulting-company role. Finally, the fourth widely held view is that the Bank exists to transfer resources to poor countries. It is impossible, according to this view, for an institution that has the promotion of development at the core of its existence, not to have the supply of capital to developing countries as its basic function. This perspective stands in sharp contrast with the first model, which takes the view that the Bank is a financial intermediary.
    16 : The assumption that the Bank is, first and foremost, a bank leads naturally to the assumption that it is an institution that has a fiduciary responsibility to its depositors and has to administer its loan portfolio accordingly. The Bank raises funds in the capital markets at premium interest rates thanks to the guarantees provided by its shareholding governments and government guarantees it secures for the loans it makes. It then lends these funds to developing countries at lower interest rates that those they would normally secure on their own.
    17 : But for those who assume that the Bank exists to transfer badly needed resources to poor countries, having its essential purpose defined as that of a financial intermediary is confusing means and ends. For the resource-transfer model, development is the objective and finance the instrument. Therefore, it assumes that the bank is a developmental institution first and a financial intermediary second. The Bank-as-bank perspective responds that while this may be true, in practice, if the capacity of the Bank to raise cheaper funds from international financial markets is impaired, money for all the other developmental objectives will be less readily available.
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