Page 360 - DECO503_INTERNATIONAL_TRADE_AND_FINANCE_ENGLISH

International Trade and Finance

Notes of Governors, to which member countries appoint representatives. IFC’s share capital, which is paid
in, is provided by its member countries, and voting is in proportion to the number of shares held.
IFC’s authorized capital is $ 2.45 billion. Statement of Capital Stock and Voting Power.
The Board of Governors delegates many of its powers to the Board of Directors, which is composed of
the Executive Directors of the IBRD, and which represents IFC’s member countries. The Board of
Directors reviews all projects.
The President of the World Bank Group, James D. Wolfensohn, also serves as IFC’s president. IFC’s
Vice President, Operations and Acting Executive Vice President, Assad Jabre, is responsible for the
overall management of day-to-day operations.
Although IFC coordinates its activities in many areas with the other institutions in the World Bank
Group, IFC generally operates independently as it is legally and financially autonomous with its
own Articles of Agreement, share capital, management and staff.
Funding of IFC’s Activities

IFC’s equity and quasi-equity investments are funded out of its net worth : the total of paid in capital
and retained earnings. Strong shareholder support, triple-A ratings, and the substantial paid-in capital
base have allowed IFC to raise funds for its lending activities on favourable terms in the international
capital markets.
India and IFC

Since 1956, IFC has invested in 153 companies in India, providing nearly $ 2.8 billion in financing for
its own account and $ 525 million for the accounts of participants in IFC’s loan syndication program.
Our held portfolio of $ 1.2 billion (as of March 2005) makes India our third largest country of operations.
In recent years, we have grown our business substantially, with new commitments reaching $ 284
million in FY 2004.
To reduce poverty and promote sustainable economic growth, we believe that India needs a vibrant
private sector which will :
1. Increase the availability of high-quality infrastructure.
2. Accelerate rural growth.
3. Develop competitive manufacturing and service industries.
4. Strengthen the financial sector.
We are therefore focusing our activities on supporting :
1. Private sector involvement in infrastructure financing.
2. Restructuring and modernization of the manufacturing and services sectors to become
internationally competitive.
3. The development of new financial institutions and products.
We are committed to working on the frontiers of private investment, helping bring commercial
disciplines and entrepreneurial dynamism to new areas of the economy. We therefore also support
private investment in health and education, and innovative applications of information technology.
30.4 Asian Development Bank

The Asian Development Bank (ADB), a multilateral development bank, was established in 1966 under
the Agreement Establishing the Asian Development Bank (Charter) which is binding upon the member
countries which are its shareholders. The purpose of ADB is to foster economic growth and cooperation
in Asia and the Pacific region and to contribute to the economic development of the developing
member countries in the region collectively and individually. ADB’s vision is an Asia and Pacific
region free of poverty. Its mission is to help its developing member countries reduce poverty and
improve living conditions and quality of life. ADB’s strategy for reducing poverty rests on three
pillars : sustainable economic growth, inclusive social development, and governance for effective
policies and institutions.

354 LOVELY PROFESSIONAL UNIVERSITY