Achievements and Success of The World Bank OR Success of The World Bank Operations

ACHIEVEMENTS AND SUCCESS OF THE WORLD BANK
OR
SUCCESS OF THE WORLD BANK OPERATIONS

The achievements and success of the World Bank can be studied under the following heads -
1 . Provide Loans : The World Bank is giving loans to its member countries , but its loan
policy has been changing from time to time during 1945 - 68 as discussed below-
I. 1945 - 1968 : From its conception until 1967 the Bank undertook a relatively low level of
lending . Fiscal conservatism and careful screening of loan applications was common .
II. 1968 - 1980 : From 1968 to 1980 the Bank concentrated on meeting the basic needs of
people in the developing world . The size and number of loans to borrowers was greatly
increased as loan targets expanded from infrastructure into social services and other
sectors .
III. 1980 - 1989 : Lending to service Third World debt market was the period of 1980 -
1989 . Structural adjustment policies aimed at streamlining the economies of developing
nations ( at the expense of health and social services ) were also a major concern of
World Bank policy during this period .
IV. 1989 - Present : From 1989 World bank policy changed in response to criticism from
many groups . Environmental groups and NGOs were incorporated in the lending of the
Bank in order to mitigate the effects of the past that prompted such harsh criticism .
Bank projects include ' green concerns.
TABLE: WORLD BANK LEADING
Year 2003 2004 2005 2006 2007 2008

World Bank’s Leading 18.5 20.1 22.3 23.6 24.7 26.7
(US $ billion)
2. Loans for Productive Purposes: The World Bank gives loans only for productive
purposes to its member countries. It provides loans particularly for the development of
electricity, power generation, transport etc. The reason being that for the economic
development of a country these facilities play a vital role.
3. Proper Assistance to Underdeveloped Countries: Bank has sanctioned 75% of its
total loans to developing countriesof Africa, Asia and Latin America while only 25% was given to
developed nations of Europe.
4. Increase in Capital : The Bank has succeeded in enlarging its capital base has increased its
share-capital by about 80%. It has also raised its capital by selling securities. Accordingly, Banks
power to advance loans has increased to a great extent.
5. Establishment of Subsidiary Institutions : World Bank has also established

three subsidiary institutions, as under:
i. International Finance Corporation : It was set-up in July 1956. Its objective is to

encourage private enterprises of the member countries
ii. International Development Association : It was founded in 1960 t the objective of
providing loans to underdeveloped countries at low rate of interest.
iii. Multinational Investment Guarantee Agency (MIGA): It was founded in 1988. It aims
was to encourage private foreign investment.
6. Training Institutions : In 1956, the Bank set-up a staff college to provide training to
senior officials of the member countries. This college is known as Economic Development
Institute (EDI). The Institute helps the officials in improving the management of their economies
and to increase the efficiency of their investment programmes. The EDI also organises seminars
in Washington and in different regions of the World in Co-operation with regional institutes.
7. Third Window of World : Loans given by the World Bank and International Development
Association (IDA) were inadequate. In order to make-up this deficiency both these institutions
jointly founded in 1975 a Third Window. This window has been instrumental in providing loans
on a large scale to developing countries at low rate of interest.
8. Settlement of Investment Disputes : The Bank has successfully mediated in solving
many international investment disputes such as the River Water Dispute between the India and
Pakistan, and of the Suez Canal between Egypt and the UK.
9. Co-ordination of the Lending Activities : The World Bank coordinates lending

activities of such lender countries who lend to underdeveloped countries It convenes the
meeting and prompts them to advance loans to different countries of the world.
10. Economic and Social Research : The Bank devotes roughly 3% of irs administrative
budget to economic social research. In 1983, the Bank established a Research Policy Council
(RPC). It provides leadership in the guidance, co- ordination and evaluation of all bank research.
The Bank's own research staff undertakes research activities independently and also in
collaboration with outside researchers.
11. Operations Evaluation : The Bank has set-up the Operations Evaluation Department
(OED) to help borrowers in the post- evaluation of Bank assised projects, Members of
borrowers' staff visit this Department for seeking help in the preparation of project completion
report.
12. Financial Assistance to Welfare Institutions : World Bank has provided financial
assistance to world welfare institutions like UNESCO, UNICEF, FAO, ILO, WHO, etc. Thus, World
Bank promotes welfare by funding these welfare institutions.
13 . Fight Against Poverty : Through its loans, advice and technological assistance World
Bank has undertaken various programmes aimed at reducing poverty in the underdeveloped
countries . For eradicating poverty , the World Bank established a separate Department in the
year 1997 named as ‘ Department of Poverty Reduction’.
14 . Agriculture and Rural Development : For promoting agriculture and rural
development World Bank has setup International Fund for Agriculture Development . From this
fund , financial aid is provided for agriculture development to poor nations .
15. Millennium Development Goals : The World Bank 's current focus is on the
achievement of the Millennium Development Goals ( MDGs ) , lending primarily to " Middle
income countries " at interest rates which reflect a small mark - up over its own borrowings
from capital markets ; while the IDA provides low or no interest loans and grants to low income
countries with little or no access to international credit markets .
Millennium development goals include the following :
i. Eradicate extreme poverty and hunger

ii. Achieve universal primary education
iii. Promote gender equality and empowerment women
iv. Reduce child mortality
v. Improve maternal health
vi. Combat HIV / AIDS , Malaria and other diseases

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ACHIEVEMENTS AND SUCCESS OF THE WORLD BANK

SUCCESS OF THE WORLD BANK OPERATIONS

TABLE: WORLD BANK LEADING

Year 2003 2004 2005 2006 2007 2008

5. Establishment of Subsidiary Institutions : World Bank has also established

i. International Finance Corporation : It was set-up in July 1956. Its objective is to

9. Co-ordination of the Lending Activities : The World Bank coordinates lending

Millennium development goals include the following :

i. Eradicate extreme poverty and hunger

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