WORLD BANK PARES INDIA FY23 GROWTH PROJECTION TO 6.5%

  • Indian economy’s expansion is expected to speed up to 7% in the next fiscal year, before settling back down to 6.1% in FY24-25
  • The World Bank has trimmed its estimate for India’s growth in the current fiscal year (FY22-23) to 6.5%, one percentage point lower than its previous projection in June and compared with the last fiscal year’s 8.7% pace.
  • The estimate for the current year was revised due to ‘persistent pressures’.
  • The Indian economy is expected to speed up to 7% in the next fiscal year, before settling back down to 6.1% in FY24-25.
  • The estimates were released as part of the Bank’s twice yearly South Asia Economic Focus, titled “Coping with shocks: Migration and the road to resilience”,ahead of the World Bank IMF annual meetings.
  • With Sri Lanka’s economic crisis, the devastating floods in Pakistan, and recovery from the pandemic impacted by the war in Ukraine, recovery in the region will be uneven.

World bank

  • The United Nations Monetary and Financial Conference, often known as the Bretton Woods Conference, took place in 1944 and resulted in the establishment of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) in 1945. (IBRD in 1944).
  • The IBRD’s core objective was to use loans to help rebuild countries that had been devastated by World War II.
  • Gradually, the focus shifted from reconstruction to development, with infrastructure, electricity grids, roads and transit, dams, and other projects receiving special attention.
  • Over time, other institutions such as the IDA, IFC, and ICSID arose, and the World Bank Group (IBRD, IDA, IFC, MIGA, and ICSID) came to be known as the World Bank Group.
  • Currently, the organisation is involved in a variety of activities through various institutions and funds.
  • A significant emphasis is placed on developing and underprivileged countries.
  • The World Bank Group (WBG) is one of the world’s most important providers of finance and knowledge for developing countries.
  • Its five institutions are all dedicated to reducing poverty, increasing shared prosperity, and promoting long-term development.

Membership

  • A country must first become a member of the IMF before joining the World Bank Group.
  • The countries must first join the IBRD before they may join the IDA, IFC, or MIGA.

All of the following prerequisites must be met to become a member of the ICSID:

Membership in the IBRD.

  • A signatory to the International Court of Justice’s Statute (ICJ).
  • Invitation of the ICSID Administrative Council by a vote of two-thirds of its members.

Functions

  • Functions Of The Various Institutions Under The WBG
  • International Bank for Reconstruction and Development (IBRD)
  • The International Bank for Reconstruction and Development (IBRD) describes itself as a global development cooperative.
  • It includes 189 countries as members.
  • It is the largest development bank in the world.
  • It helps creditworthy middle-income and low-income countries by providing loans, guarantees, advice services, and risk management tools.
  • More than 60% of the IBRD’s portfolio is made up of middle-income nations.
  • IBRD finances investments in a variety of areas and provides technical assistance and experience at all stages of a project’s development.
  • The IBRD only works with sovereign governments, not private companies.
  • It also aids governments in improving their countries’ investment climate, eliminating service delivery bottlenecks, and strengthening institutions and policies.
  • The IBRD gets the majority of its funding from global financial markets.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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