1. The World Bank

2. Introduction As Europe gradually recovered from WW2, the IBRD (International Bank for Reconstruction and Development) turned from ‘reconstruction’ to ‘development’ and became known as the World Bank The Bank was created to help rebuild the economies of those nations that had been devastated by World War 2

3. Members There are 184 member countries Under the Articles of Agreement of the International Bank for Reconstruction and Development (IBRD), to become a member a country must first join the International Monetary Fund (IMF). The size of the Bank's shareholders, like that of the IMF's shareholders, depends on the size of a country's economy. Thus, the cost of a subscription to the Bank is a factor of the quota paid to the IMF.Articles of AgreementInternational Monetary Fund The World Bank is like a cooperative, where its 185 member countries are shareholders. The shareholders are represented by a Board of Governors, who are the ultimate policy makers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual Meetingsof the Boards of Governors of the World Bank Groupand the International Monetary Fund.Board of GovernorsAnnual Meetings World Bank GroupInternational Monetary Fund Because the governors only meet annually, they delegate specific duties to 24 Executive Directors, who work on-site at the Bank. The five largest shareholders, France, Germany, Japan, the United Kingdom and the United States appoint an executive director, while other member countries are represented by 19 executive directors.Executive Directors The President of the World Bank, Robert B. Zoellick, chairs meetings of the Boards of Directors and is responsible for overall management of the Bank. By tradition, the Bank president is a U.S. national and is nominated by the United States, the Bank's largest shareholder. The President is elected by the Board of Governors for a five-year, renewable term.President of the World BankRobert B. Zoellick 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, the administrative budget, country assistance strategies and borrowing and financial decisions.Executive DirectorsBoards of Directors The World Bank operates day-to-day under the leadership and direction of the president, management and senior staff, and the vice presidents in charge of regions, sectors, networks and functions. Vice Presidents are the principal managers at the World Bank As Southern countries sought to enter the industrial age, the Bank became a major player throughout the region.

4. Organisation The Bank is funded by dues from its members and by money borrowed on international capital markets. The Bank has established two departments: –The International Finance Corporation – which supports private-sector investment in Bank- approved projects. –Multilateral Insurance Guarantee Agency – provides risk insurance to foreign corporations and individuals who decide to invest in one of the Bank’s member countries

5. Roles The Bank was created to help rebuild the economies of those nations that had been devastated by World War 2. It makes loans to members below rates available at commercial banks. initial mandate was to provide loans for things like power plants, dams, roads, airports, ports, agricultural development and education systems. As Europe gradually recovered from WW2, the Bank turned from ‘reconstruction’ to ‘development’

6. Responsibilities Despite the Bank’s low lending rates it was clear early on that the very poorest countries would have difficulty meeting loan repayments. So in the late 1950s, the Bank was pressured into setting up the International Finance Corporation (IFC). This was to provide ‘soft loans’ with very low interest or none at all.

7. Areas of operation

8. Some activities/policies The Bank has funded dams, hydroelectric projects and highway systems throughout Latin America, Asia and Africa. Most recent projects: all were approved on Tuesday 24 th June by the World Bank’s Board of Executive Directors in Washington: Vietnam: Northern Delta Transport Development IDA Credit: US$170 million TERMS: Maturity = 40 Years; Grace Period = 10 Years Program Description: This project aims to enhance the efficiency, environmental sustainability and safety o f transport infrastructure and services, through the alleviation of physical and institutional bottlenecks, in two major waterway corridors in the Northern Delta Region. This project has three main components - multimodal transport corridor investments in the Northern Delta Region, investments in small ferry boats stages, and institutional support to Ministry of Transport, Vietnam Inland Waterway Administration, and the provinces. China: Xi’an Sustainable Urban Transport IBRD Loan: US$150 million TERMS: Maturity = 25 Years; Grace Period = 6 Years Program Description: The city of Xi'an, home to the world-renowned Terracotta Army and other cultural relics, faces a huge challenge of balancing preservation of its cultural heritage with the demands of a modern city. Through the new Xi’an Sustainable Urban Transport Project, bus prioritization, bicycle routs, traffic calming and speed-reducing strategies will be introduced in an effort to foster better road use and access to cultural sites. China: ShiZheng Railway IBRD Loan: US$300 million TERMS: Maturity =20 Years; Grace Period = 5 Years Program Description: This project aims to help construct a new 355 km dedicated high-speed passenger rail line between Shijiazhuang in Hebei Province and Zhengzhou in Henan Province. This is part of the new 2,100 km Beijing-Guangzhou dedicated high-speed passenger line which, when completed in 2010, is expected to provide a major boost in rail transport capacity while also reducing the travel time for passengers from the present 24 hours to less than 10 hours. This is the first high-speed passenger railway supported by the World Bank since the new Tokaido line (Tokyo to Osaka) was completed in 1964, the first link of the Shinkansen bullet train in Japan.

9. Coverage in the media

10. Positive/negative comments Against: Joseph Stiglitz: limitations of ‘market fundamentalism’ – “The Bank is dominated not just by the wealthiest industrial countries but by the commercial and financial interests in those countries and the policies naturally reflect this…the institutions are not representative of the nations they serve” (said about the IMF again) Servicing the national debt has become a major concern in rich and poor countries alike. But especially so in the South where there are far fewer dollars to spend: debt has become a major brake on development There have been protests against the World Bank in Seattle and Washington