The World Bank, transport restructuring and transport workers

What is the World Bank? The World Bank is a public international organisation comprising two agencies: The International Bank for Reconstruction and Development (IBRD) The International Development Association (IDA) Three other agencies are affiliated to the World Bank: The International Finance Corporation (IFC) The Multilateral Investment Guarantee Agency (MIGA) The International Centre for Settlement of Investment Disputes (ICSID) The five agencies are collectively known as the World Bank Group

Who runs the World Bank? (1) The World Bank is run by 24 executive directors. Their voting power depends on the number of shares owned by the countries they represent. Five countries have their own executive director as of right, and between them they control more than a third of all the IBRD voting shares: USA % Japan 7.87% Germany 4.49% United Kingdom 4.31% France 4.31%

Who runs the World Bank? (2) China, the Russian Federation and Saudi Arabia also have their own executive director, while other countries are in groups sharing an executive director. This causes many strange anomalies: India, Pakistan and Sri Lanka -one executive director: 20% of global population 3.4% voting rights United States of America – one executive director: 5% of global population 16.4% voting rights

The World Bank’s money The World Bank has four sources of funds: Selling AAA-rated bonds on the international financial markets Interest on loans to middle income countries Repayment of loans to middle and low income countries Payments by 40 donor countries to replenish IDA funds It also manages various trust funds Most of the money is spent on project loans, of two main types: to finance investments, especially in infrastructure to promote reforms of government policies and institutions The Bank also provides analytical and advisory services

What does the World Bank do? ”The World Bank is a vital source of financial and technical assistance to developing countries around the world. “We help governments in developing countries reduce poverty by providing them with money and technical expertise they need for a wide range of projects—such as education, health, infrastructure, communications, government reforms, and for many other purposes.” Source: World Bank website

Where does the World Bank’s money go? Sub-Saharan Africa 23% Latin America & Caribbean 19% East Asia & Pacific 18% South Asia 17% Europe and Central Asia 17% Middle East and North Africa 6%. Source: World Bank website

What does the World Bank do in the transport sector? “The mission of the transport group in the Bank is to assist clients to reduce poverty by improving the efficiency and equity of transport policy and interventions. “We will work with the public and private sectors and communities to enhance the capacity of transport institutions to provide sustainable infrastructure and services. ” Source: World Bank website

The World Bank and transport policy (1)

The World Bank and transport policy (2) “Throughout the world, transport infrastructure and service delivery are shared by the public and private sectors. The public-private balance in each country stems from its history, culture, and circumstances.” Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy, 2007 – 2012 (our emphasis)

The World Bank and transport policy (3) “The treatment of this issue is helped by drawing a broad distinction between transport services (for example, road haulage companies, shipping companies, airlines) and the transport infrastructure that service suppliers use (for example, roads, seaports, and airports).” Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy, 2007 – 2012 (our emphasis)

The World Bank and transport policy (4) “Public sector supply of transport services has often been disappointing. “Experience suggests that private operation of transport services leads to a better outcome, if markets are competitive (or periodically contestable) and if the regulatory framework protects public interests from any misuse of market power.” Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and transport policy (5) “Transport infrastructure is more contentious. … Many countries are uncomfortable with fully private ownership or free-market operation of transport infrastructure. …Public ownership of transport infrastructure is a legitimate public policy choice.” Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: road transport Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: urban passenger services Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: railways Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: ports and maritime Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: airports and aviation Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

The World Bank and privatisation: inland waterways Source: Safe, Clean and Affordable: Transport for Development World Bank transport business strategy,

Employment Reductions in Brazil’s Railways: Source: Labor Issues in Infrastructure Reform – a toolkit, World Bank, 2004

Employment Reductions in Côte d’Ivoire and Burkina Faso Railways: Source: Labor Issues in Infrastructure Reform – a toolkit, World Bank, 2004

Labour Productivity in Brazilian Railways Divisions of Brazilian federal railways system: FCA - Midwest; MRS - Southeast; FSA - South; Tereza Cristina - Tubarão; Oeste - West; Nordeste - Northeast. Source: Labor Issues in Infrastructure Reform – a toolkit, World Bank, 2004

Examples of effects of ports restructuring Job losses: Buenos Aires 50% cut Venezuela: 10,280 jobs Panama: 75% UK - 40% to 60% Changes in working conditions: Intensification: from 12 to 6 per gantry in Australia Source: ITF

World Bank productivity data Staff per bus : Indian states Karnataka: 6.03 Andhra Pradesh: 7.12 Madhya Pradesh: Orissa: Sri Lanka private 2 – 3 state Source: Labor Issues in Infrastructure Reform – a toolkit, World Bank, 2004

The World Bank project cycle