World Bank Current Affairs - 2020

World Bank Report

The World Bank in its latest Global Economic Prospect downgraded its projection of growth of India by -9%. However, the World Bank believes that Indian growth is to bounce back in 2021.

Highlights

The World Bank says that the growth of India has slowed by 4.2% in 2019-20. The other international rating agencies such as Fitch ratings, Moody’s Investor Service, S&P Global Ratings have all predicted India’s growth rate as 4% to 5% in the year 2020-21. According to Crisil, this is India’s fourth economic recession since independence.

Key Findings of the report

The Key findings of the report about India are as follows

  • The report says that the Government of India has been purchasing government bonds to ease financial conditions
  • The Indian Government has increased its spending to contain COVID-19. This has been done through
    • Wage support
    • Deferral in tax payments
    • Cash transfer to lower-income households
    • Loan and liquidity support to small businesses and financial institutions.
  • The contraction of Indian Economy will find its impact in South Asian region

South Asia

The report says that in the South Asian region, Pakistan and Afghanistan are to experience contractions in the year 2020. Bangladesh is expected to grow at 1.6% and Nepal is expected to grow at 1.8%

India is the fifth worst hit nations in the world after USA, Brazil, Russia and UK.

Indian PMO secretaries to hold key positions in WTO, World Bank

The Private secretary of Prime Minister Modi Rajeev Topno was recently appointed as the Senior Advisor to the Executive Director of World Bank. Also, a joint secretary at the Prime Minister Office (PMO) was appointed to the World Trade Organization as an ambassador

Highlights

Besides these officers, five other officers have been appointed abroad where they will have major role in economic and trade related decisions. H Atheli has been appointed as advisor to Executive Director of Asian Development Bank.

Significance

These appointments are important to India. This is because India is currently grappling with economic crisis and the organizations play an important in deciding trade related activities.

Board of Directors

The World Bank group consists of four separate boards of directors. This includes International Bank of Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA) and Multilateral Investment Guarantee Agency (MIGA). There are 25 Executive directors in all. They elect their president. The president has no voting powers except for the deciding vote of equally divided board.

Voting Powers

The voting powers of the member countries are based on the number of shares held by them. The top eight countries with highest voting powers in the world bank are USA, Japan, China, UK, Germany, France, Canada and India.