World Bank - IMF and World Bank, Economy Traditional, UPSC Video Lecture | Study Indian Economy for UPSC CSE - UPSC | Best Video for UPSC

welcome friends in this video let us
discuss about World Bank and its group
of institutions their functions and
their date of establishment which are
relevant from the police point of view
so the article is World Bank okay is 625
million for so our products so recently
World Bank announced that it had
approved a loan worth 625 million u.s.
dollar for the government's initiative
for rooftop solar power generation in
the country the board of World Bank also
approved a co-financing loan of 120
million on concessional terms and a 5
million grant from climate investment
funds Clean Energy Fund okay the project
will finance the installation of at
least 400 megawatt of grid connected
rooftop solar for photoelectric across
the country so the product will also
strengthen the capacity of key
institutions support the development of
worrell solar photovoltaic market in
India so this shows World Bank has been
making investment in some of the high
impact areas throughout the world to
bring change in in the governance of
countries okay so for that we need to
look into the functions and different
old Bank group of institutions are from
Prince point of view so let's look into
those issues okay so let us analyze
those issues from problems as well as
the mains perspective so World Bank is a
part of Bretton Hood Development soon
after the end of Second World War
United Nation was formed to forge the
cooperation between all the countries of
the world for peaceful development
similarly in the areas of financial
administration Bretton Woods conference
was convened here the representatives of
USA and UK and other 42 countries met at
Bretton wood New Hampshire USA in July
1944 to decide a new international
monetary system new interest financial
institutions which bring deformity and
bring oral development in the world as a
whole
as part of this conference two
institutions born which are still
existing today which are making impacts
in the lives of billions of people this
includes International Monetary Fund and
World Bank so World Bank with its first
group institution called International
Bank for Reconstruction and Development
was set up as part of the world Britain
hood conference so these two these two
institutions are together called as
Britain hood twins the headquarters of
this institution is in Washington DC
United States so now let's look at the
World Bank Group of institutions World
Bank is not a single institution it is a
group of two institution okay so old
Bank is referred to two important
institutions of World Bank Group called
International Bank for Reconstruction
and Development IBRD and International
Development Association these two
institutions together called as World
Bank okay old Bank group however
includes five institutions this for
institution as a whole these are the
World Bank Group this include IBRD ID a
IFC mega ICSID International Centre for
settlement of investment disputes so
these five institutions together as a
whole
called old bank group but as these two
first two institution that is IPRA and
idea called s World Bank please remember
from previous point of view also let's
discuss about these issues these
institutions individually so
International Bank for Reconstruction
and Development was established in 1945
itself its role is to promote
institutional legal and regulatory
reform it provides loans to the
developing countries and those countries
with low income with the income range
from one thousand twenty five to six
thousand fifty five US dollar as per
capita income so the products of this
institution includes technical
assistance loans and policy advice to
these developing countries to bring
reforms in their administration and to
bring development in the economic
spheres the second institution is
International Development Association so
this is an institution which provides
loan are to low-income countries least
developed countries and those countries
which do not have the capacity to repay
loan okay they this institution provide
loans for these countries at very low
interest rates very low close to zero
okay this is to promote institutional
legal and regulatory reform here the
governments of poorer poorest countries
with per capita income of less than
thousand twenty five are provided loans
technical assistance and policy advice
by the institution these two are called
World Bank okay I I be already and idea
and next institution is International
Finance Corporation it was established
in 1856 to promote private sector
development okay so it raises bonds for
development in the developing countries
okay it promotes private sector in the
developing countries are including 183
member countries here the products of
this institution include equity are
quasi equity it invests in various
sectors it prods long-term loans it
powers risk management advice and
advisory services the next institution
is multilateral investment guarantee
agency it is a recent institutions our
institution which is established as part
of the World Bank Group it was
established in nineteen eighty eight
eight as recent as nineteen eighty eight
so it seeks to promote provide
instruments for policy investment
political investment risk management
okay so it provides a protection against
investment risk in various countries so
foreign investors in member countries
are the clients of this institution or
it provides multilateral investment and
guarantee for various investment in
developing countries here the
institution provides political risk
insurance as its product okay next
institution is International Centre for
settlement of investment disputes it was
established in 1966 so it provides
facilities for conciliation and
arbitration of international investment
disputes we know that India the world
has been well connected and
globalization is a norm rather than
exception so various multinational
companies invest in other countries so
they face several political economic and
other risks okay in that situation this
International Centre for settlement of
investment disputes acts as a mediator
and it settles the dispute between the
multinational company and the government
of the respective country okay so to
provide the smooth ER investment of
capital into the developing countries
from the developed countries as well
okay so here the clients include foreign
investors in member countries it is many
aim is to provide dispute settlement
facilities so from police point of view
their functions are important and in
case of IBRD and ID a the the target
countries are important here in an IPR d
the countries which are having the
capacity to repay the loans are
concentrated here so the per capita
income from thousand twenty five to six
thousand fifty five US dollar are
provided and i I BR d where as an idea
it is for low-income and those countries
which do not have the capacity to repay
the loans now that is the countries with
less than one thousand twenty five US
dollar per capita income so in the in
such a way you need to read the material
okay so this will be relevant from
Prince as far as the mains perspective
so let's discuss further about these
institutions IBRD it lends to the
governments of middle income and credit
worthy low-income countries idea it
powers loan for loan for pool countries
we do not have the capacity to repay the
loans together i piayed and each idea
make up the World Bank okay and
including all those five institutions
they make the make up the old Bank Group
okay so this is the difference
next is IFC which has already been
discussed it is a large global
development institution focused
exclusively on the private sector
International Finance Corporation
so recently IFC raised Messala bonds to
invest in Indian Indian entities okay so
it helped developing countries achieve
sustainable growth by financing
investment mobilizing capital in
international financial markets it from
mobile is the capital in the
international financial market for these
private sector in the developing
countries okay so on provides advisory
services or
to businesses and governments okay next
is multilateral investment guarantee
agency mighty lateral investment can be
easy was created in 1988 which I have
already discussed this is the recent
institution and it seeks to promote
foreign direct investment into
developing countries to support economic
growth reduce poverty and improve
people's lives
MIGA fulfills this mandate by offering
political risk insurance to investors
and lenders and since they get the
insurance there is more flow of
investment in the developing countries
in various important sectors of the
economy which creates employment which
brings reform which brings prosperity in
in developing countries at least in the
books okay so next the finally
institution of the five is International
Centre for settlement of investment
disputes it provides international
facilities for conciliation and
arbitration of investment disputes for
the countries so these are the different
groups a World Bank Group let's look at
the goals of World Bank group of
institutions so the goal set by the
institution to achieve by 2030 include
to end the extreme poverty by decreasing
the percentage of people living on less
than 1.9 US dollar a day to no more than
3% okay so by 2030 the goal is to reduce
the people living below poverty line to
less than 3% and to promote shared
prosperity by fostering the income
growth or the bottom 40% of the every
country that is the goal through to
achieve that goal
World Bank invest in developing
countries in various development
projects for example that I have
discussed in the previous slides in
rooftop solar power generation to reduce
the cost of renewable energy okay so in
such activities World Bank has been
investing to bring reforms in developing
countries okay so the functions let's
look at the functions of World Bank that
this will be relevant from - examination
the functions include
import financial and technical
assistance it provides low-interest
loans there is 0-2 low-interest credits
through idea International Development
Association and grants to developing
countries so these support avoid array
of investment in such areas
education health public administration
infrastructure financial and
private-sector development agriculture
environment and natural resource
management so these are the areas where
old bank is investing in developing
countries for example in India World
Bank makes investment in integrated
children allotment scheme okay which
brings a which brings improvement in
health of children okay so in those
areas the in those key areas one bank
has been investing or to bring change
the developing countries and least
developed countries so it's support
provide support the government's and
other multilateral institutions
commercial banks export credit agencies
and private sector investors to bring
the phones here this is important World
Bank really this report called World
Development Report from previous point
of view no other institution it's only
the World Bank okay well Development
Report so this table shows the weight
age voting power of different countries
here World Bank is not a democratic
institution voting power is given to the
countries based on their economic
potential their contribution to the
World Bank corpus of for giving lows to
other countries and also their their
strength in the world economy
okay so United States has the highest
number of words okay it has three lakh
58,000 498 votes out of 22 lakh ODEs
okay that is HUGE a second please place
is occupied by Japan with one like 66
thousand votes in in case of IBRD
okay I'm talking and third is for China
with 1 lakh 7,000 votes
Germany with 97 thousand words France 87
UK 87 241 India in the seventh place
India is in this one place in case of
World IBRD with 67,000 six ninety or
hide off Saudi Arabia okay so for the
such kind of words are provided to the
countries in different old Bank
institutions like IBRD IFC idea Amiga
okay
so India is in a fair
position in the recent past it is in the
occupying 6th and 7th position in
various institutions so that is a issue
here or it's not a democratic
institution so the Western countries
despite having lower economic potential
has been holding huge percentage of
votes in this world bank group of
institutions so this makes poor
representation for developing countries
like BRICS countries Brazil Russia India
China South Africa
okay so India and BRICS countries are
countering the World Bank monopoly
through establishment of their separate
bank that is BRICS Development Bank to
control the monopoly and to give
representation for developing countries
in the future okay so there is a
important thing at present and China is
also establishing world level
institutions like Asian infrastructure
investment bank which is relevant from
silt or point of view okay a shell in
infrastructure investment bank BRICS
Development Bank is challenging the
monopoly of World Bank IMF Asian
Development Bank which is the monopoly
of Western countries okay so we are
increasingly challenging the monopoly
and hegemony of Western countries in the
economic sphere through these
institutions this will be growing on an
enormous scale in the future with the
environment of India and China Russia
Brazil South Africa okay so those are
the issues so you need to read further
about these international institutions
from both planes and mains first point
of view for example IMF or IMF religious
world economic outlook global financial
stability report so please remember I am
a Vista agency which this World Economic
Outlook from police one of you and you
need to read about wo its agreements its
establishment its settlement board which
is in news recently because of a dispute
between India and diverse states related
to solar panels and visa fee hike for
service employees h-1b visa for Indian
employees in u.s. okay so
Governing Council of WTO our deputy
agreements like agreement on agriculture
tips GATT GATS general agreement on
trade and tariffs sanitary and
phytosanitary measures under this okay
so those are the issues will be relevant
from Clemson mains examination you need
to mention those issues or key issues
while discussing about international
relations and foreign trade and
multilateral institutions okay so you
need to read about Asian Development
Bank BRICS Development Bank Asian
infrastructure investment bank so those
are the issues you need to look into in
future I hope this cleared some of your
doubts regarding the preparation thanks
for watching