World Bank – Core Framework

Development Finance • Poverty Reduction • Infrastructure • Human Capital

1. Origin, Rationale & Evolution

The World Bank was created in 1944 at the Bretton Woods Conference along with the IMF. While the IMF was designed to ensure monetary stability, the World Bank was created to provide long-term capital for reconstruction and development. Its initial mandate was to rebuild war-torn Europe after World War II. Over time, it transformed into the world’s largest multilateral development institution focusing on poverty reduction and sustainable growth.

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  WM[IASNOVA.COM]:::wm
  A["Bretton Woods System"] --> B["IMF
  Monetary Stability"] --> C["World Bank
  Development Finance"]

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2. World Bank Group – Institutional Structure

The term “World Bank” actually refers to a group of five institutions collectively known as the World Bank Group (WBG), each serving a distinct development function.

flowchart TB
  WM[IASNOVA.COM]:::wm
  WB["World Bank Group"] --> IBRD --> IDA
  WB --> IFC
  WB --> MIGA
  WB --> ICSID

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3. Lending Philosophy & Development Model

World Bank lending is not merely financial—it is deeply linked with institution-building, human capital formation, governance reforms and sustainability. Projects typically span 10–30 years and focus on:

• Hard infrastructure (roads, power, irrigation, ports)
• Soft infrastructure (health, education, sanitation)
• Institutional reforms (tax, governance, digitisation)
• Climate resilience & green transition

4. Global Functions of the World Bank

• Development finance & project implementation
• Policy advisory & institutional capacity building
• Poverty & inequality measurement
• Climate finance & disaster resilience
• Knowledge generation through reports & data platforms

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World Bank & India – Development Partnership

Infrastructure • Health • Education • Climate Finance • Governance

1. India’s Membership & Strategic Importance

India is a founding member of the World Bank. Over the decades, it has emerged as one of the largest borrowers, not due to weakness, but because of the sheer scale of infrastructure and social investments required for a population of over 1.4 billion people.

2. Major Lending Sectors in India

3. India’s Financial Status with the World Bank

• India primarily borrows from IBRD, not IDA
• Borrowing is long-term, low-interest, non-concessional
• India also contributes to IDA replenishments as a donor

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  WM[IASNOVA.COM]

  India[India] --> IBRD[IBRD Loans]
  India --> IFC[IFC Private Sector]
  India --> IDA[IDA as Donor]

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  class WM wm;

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4. Developmental Impact in India

• Strengthened rural roads under PMGSY-type projects
• Boosted sanitation through urban water & sewerage projects
• Expanded health systems & digital governance
• Climate-resilient agriculture & disaster insurance

5. Criticisms & Reform Direction

• Project delays due to procurement norms
• Safeguard procedures increasing implementation cost
• Concerns over debt sustainability in low-income borrowers

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