World Bank: Bretton Woods Conference, World Bank Group & Contributions to India

Introduction

The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries to pursue development projects. It aims to reduce poverty by providing financial and technical assistance to projects that promote economic development, improve infrastructure, and enhance social services such as education and healthcare.  The World Bank consists of two main institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Additionally, it provides analytical and policy advice to its member countries to help them achieve sustainable development goals.

World Bank Group

• The World Bank Group (WBG) is a vital international financial institution that plays a key role in global economic development. 
• Establishment: The World Bank Group was established in 1944 during the Bretton Woods Conference.
• Purpose: The primary goal of the World Bank Group is to reduce poverty and promote sustainable development in developing countries.
• Member Countries: The World Bank Group consists of 189 member countries.
• Institutions within the World Bank Group:
  • International Bank for Reconstruction and Development (IBRD)
  • International Development Association (IDA)
  • International Finance Corporation (IFC)
  • Multilateral Investment Guarantee Agency (MIGA)
  • International Centre for Settlement of Investment Disputes (ICSID): 
  • India is a member of all of the above groups except ICSID where India is not a member.
• Major Reports:
  • Ease of Doing Business (Stopped publishing). (UPSC 2016)
  • Human Capital Index.
  • World Development Report.
• Shareholding of WB: 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.
• ShareHolding and Voting Power of India: 
  • India will become the 7th largest shareholder in IBRD with voting power of 2.91%.(2010 Reforms). Before this,  India’s voting power was 2.77% with 11th position among shareholders.

World Bank’s contributions to India:

• India has been a significant partner of the World Bank since its early years, with the first loan provided in 1949 for post-independence development.
• The World Bank has funded numerous infrastructure projects in India, such as the National Highways Development Project (NHDP), Sarva Shiksha Abhiyan (SSA), National Rural Health Mission (NRHM), Swachh Bharat Mission, Smart Cities Mission, the ease of doing business, Solar Rooftop Photovoltaic Project, and Pradhan Mantri Jan Dhan Yojana etc.

Conclusion

• The World Bank plays a crucial role in the global effort to reduce poverty and promote sustainable development. 
• Through its financial assistance, technical expertise, and policy advice, the World Bank supports countries in addressing key challenges such as infrastructure development, access to education and healthcare, and fostering economic growth.