THE WORLD BANK INSTITUTIONS The core business of the World Bank is overcoming poverty and boosting economic growth in developing countries. The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries. This affiliate promotes sustainable development through loans, guarantees, risk-management products, and nonlending analytical and advisory services. IBRD’s financial strength enables it to borrow in capital markets at low cost and to offer clients favorable borrowing terms.
Established 1944 | 187 Members Cumulative lending: $523.6 billion* Fiscal 2010 lending: $44.2 billion for 164 new operations in 46 countries * Effective fiscal 2005, includes guarantees.
IBRD KEY FINANCIAL INDICATORS | FISCAL 2006–10 MILLIONS OF DOLLARS
Operating incomea Loans outstanding Total assets Total equity
2006 1,740 103,004 211,982b 36,474
2007 1,659 97,805 207,601b 39,796
2008 2,271 99,050 233,311 41,548
2009 572 105,698 275,420 40,037
2010 800 120,103 283,010 37,555
a. Reported in IBRD’s financial statements as “Income before fair value adjustment on non-trading portfolios, net and Board of Governors–approved transfers.” b. Restated to reflect the impact of certain reclassifications to conform with the current year’s presentation.
The International Development Association (IDA) provides interest-free, long-term loans—called credits—and grants to governments of the world’s 79 poorest countries, which have little or no capacity to borrow on market terms. IDA’s lending is financed by contributions to IDA from donor countries, IBRD’s net income transfers, grants from the International Finance Corporation (IFC), and IDA’s credit reflows.
Established 1960 / 170 Members Cumulative commitments: $221.9 billion* Fiscal 2010 commitments: $14.5 billion for 190 new operations in 66 countries * Effective fiscal 2005, includes guarantees.
IDA KEY FINANCIAL INDICATORS | FISCAL 2006–10 MILLIONS OF DOLLARS
Development credits outstanding Total sources of development resources/total equitya
2006 127,028 102,871
2007 102,457 110,212
2008 113,542 123,619
2009 112,894 127,950
2010 113,474 128,275
a. Up to the fiscal year ended June 30, 2007, IDA prepared special-purpose financial statements. Effective July 1, 2007, IDA’s financial statements are prepared in conformity with accounting principles generally accepted in the United States (U.S. GAAP).
This Annual Report, which covers the period from July 1, 2009, to June 30, 2010, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Robert B. Zoellick, President of IBRD and IDA, and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. Annual reports for the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID) are published separately.
CONTENTS Message from the President of the World Bank Group
1
The Board of Executive Directors
3
IBRD Role and Resources
5
IDA Role and Resources
6
World Bank Lending by Theme and Sector, Fiscal 2005–10
7
Operational Summary
8
Chapter 1 World Bank Work in a Volatile Climate
9
Chapter 2 World Bank Work in the Field
19
Want to Know More?
32
CD-ROM: Full Financial Statements
All dollar amounts used in this Annual Report are current U.S. dollars unless otherwise specified. As a result of rounding, numbers in tables may not add to totals and percentages in figures may not add to 100. Throughout this report, the terms “World Bank” and “Bank” refer to IBRD and IDA. “World Bank Group” refers collectively to IBRD, IDA, IFC, MIGA, and ICSID.
THE WORLD BANK ANNUAL REPORT 2010