Page 357 - DECO503_INTERNATIONAL_TRADE_AND_FINANCE_ENGLISH

Unit 30 : UNCTAD, IMF, World Bank and Asian Development Bank

Shareholders Notes
The World Bank is run like a cooperative, with member countries as shareholders. The number of
shares a country has is based roughly on the size of its economy. The United States is the largest
single shareholder, with 16.41% of the votes, followed by Japan (7.87%), Germany (4.49%), the United
Kingdom (4.31%) and France (4.31%). The rest of the shares are divided among the other member
countries.
Every member government is represented by an Executive Director. The five largest shareholders
(France, Germany, Japan, the United Kingdom and the United States) appoint an executive director
each, while other member countries are represented by 19 Executive Directors.
The 24 Executive Directors make up our Board of Directors. They normally meet twice a week to
oversee business, including reviewing loans and guarantees; new policies; the administrative budget;
country support strategies; and borrowing and financial decisions.
Chander Mohan Vasudev is the Executive Director for India. He also represents Bangladesh, Bhutan,
and Sri Lanka.
How the World Bank Works in India ?
The World Bank does not operate alone. In India, the Bank works with multiple development partners
: The Government, other bilateral and multilateral donor organizations, nongovernmental
organizations (NGOs), the private sector, and the general public— including academics, scientists,
economists, journalists, teachers and local people involved in development projects. The Bank’s method
of operation is not to implement “World Bank projects” but to provide financing and advice for
projects which are owned and supported by the Indian people and which are a logical part of a
comprehensive and efficient overall development agenda.
How are Priorities Selected ?
Working with the government and civil society, the World Bank has developed an action plan known
as the India Country Assistance Strategy (CAS) which describes what kind of support and how much
could be provided to the country beginning in 2001 and covering a period of around three years. The
CAS directly supports the government’s Five-Year Plan and focuses on strengthening the enabling
environment for development and sustainable growth and supporting critical interventions of special
benefit to the poor and disadvantaged. In 2002, the World Bank completed a progress report on the
CAS. It is also in the process of developing a new CAS.
Studies and Reports

The World Bank also produces studies and reports based upon its own analysis of a given issue.
Topics of research come from the Bank’s Country Assistance Strategy. This research is intended to
provide an unbiased perspective on a range of specific development challenges.
Additional studies include reviews of economic policies (Country Economic Memoranda), fiscal
spending (Public Expenditure Review), environmental reviews (Environmental Action Plan), and
other specific topics.
Further discussion of development issues is promoted though workshops and other events. These
events bring together groups such as government, media, and civil society organizations to discuss
how best to move forward on a given issue.
Projects

As outlined in the support strategy, India develops its own projects with World Bank financing and
technical support. The project cycle outlines the process of identifying, financing, implementing, and
evaluating projects. Various financing options are available based upon the type of assistance needed.
Loans or credits (interest-free loans) for these projects are then submitted for approval to the Executive
Directors, the World Bank’s decision-making body which represents all member countries.

LOVELY PROFESSIONAL UNIVERSITY 351