Performance And Revenue Generation Of World Bank: An Analysis

Introduction to World Bank and its Operational Activities

The aim of the report is to discuss about the performance of World Bank and the way World Bank is generating revenue. World Bank is among the international financial institution which provides loans and grants towards a government of low and middle income countries. World Bank has been operating since 1944. It can be stated that the bank has been one of the most efficient organisation in the banking sector. The growth of the bank has been significant in the last few years. In this report, the main focus is on researching about the way World Bank cooperates in the market. In this research, analyses of the past three years revenue and operating profits are going to be evaluated for World Bank so that it becomes easy to gain sufficient amount of information. The operational activities are also going to be evaluated in the paper. The report is going to carry out a detailed literature review on each of the topics associated with the paper so that it becomes easy to address is the necessary objectives. The business operational activities associated with the World Bank is also going to be evaluated in these reports. It is expected that the successful development and outline of strategic business will help in offering better value.

The report is going to the one strategic business issue which has been faced by the World Bank in the recent times is the impact from COVID-19 pandemic. It has been observed that, COVID-19 has created a huge financial crisis for the bank. At the time of pandemic, every industry has suffered through crisis. This business strategic issue has created a significant impact over the business. The research focuses on understanding the way organisation has helped in dealing with the issue so that proper decision can be taken for managing the company’s performance. The research method selected is literature review method. With the help of systematic literature review it becomes easy to understand and analyse the existing researches which has been conducted over the research topic. It can be stated that the problem faced by the organisation has created a lag in the business operations. Due to the strategic implications issues, stakeholders associated with the business has also suffered a lot. As a result, the paper aims at discussing about the way strategic implications has created impact over the relationship and performance of the stakeholders. It can be stated that the research is going to be carried out entirely on the basis of secondary data sets. The data from the literature will be evaluated. The use of ProQuest resources and filter for searching the areas related to World Bank is going to be carried out. The research parameter which has been selected while carrying out the research is to select recent articles. World Bank related articles is going to be evaluated for understanding and obtaining information. The strategic issues needs to be addressed so that the operations become reliable.

World Bank is an international financial institution which is responsible for offering loans and granting government of low and middle income countries with funds so that they can carry out their capital projects. World Bank was established in the year 1944. The sector in which the World Bank operates is the banking sector.  World Bank has around 189 countries are under IBRD membership of World Bank and around 174 countries under IDA (Aksakal 2019). World Bank corporations are owned by the government of member national authorities which are responsible for making the ultimate decision within an organisation. These included the decision associated with finance and membership issues as well. After evaluating the different factors associated with the operation of the World Bank, it can be stated that World Bank is capable of achieving huge success with the implementation of their unique strategies. One of the major functioning of the organization is to safeguard and secure the depositors for making loans to individuals and businesses (Zapp 2021). The World Bank operates with the perspective to end poverty and to invest in opportunity. World Bank ensure that sufficient amount of support is being offered with the developed countries so that they can regain their position in the market.  World Bank operational work to meet the members of other countries which are been done through the development projects. The project mainly financed by the low interest loans ordered through granting loans or towards the developing countries. World Bank has been operating with the main objectives of which are:

• Reconstruction and development: World Bank focuses on a main objective for constructing the war devastated economy which include Britain, Holland and France. These also aims at providing economic support towards the underdeveloped countries as well such as India, Pakistan and Sri Lanka (Varga 2019).
• Encouragement towards the capital investment: One of the significant objective for the World Bank is to encourage capital investment for under developed countries. The capital investment opportunities will offer advantages towards the business.
• Encouragement to international trade:the objective of the bank is to focus on encouraging towards the international trade. This aims at promoting long range growth of international trade and maintenance of equilibrium.
• Establishment of peace time economy: World Bank operates with the objective to help member-countries to have changeover from the war-time economy period to peace-time economy.
• Environmental protection: Global environmental protection is also a part of World Bank objectives. World Bank has offered substantial financial assistance towards underdeveloped countries which are being engaged in task over environmental protection (Mukhi et al. 2020).
• Maintaining equilibrium in balance of payment: In order to promote a long-term balanced growth towards the international trade and maintenance of equilibrium. Balance payment has been managed by World Bank (Foster and Rana 2019). It has been ensured that proper way of balancing the payment is being organised for achieving better operations.

Revenue Growth and Operational Functionality

World Bank has gained a significant growth in the market of financial industries. The growth in revenue has been increasing in every year. The operational procedure has been managing the business functionality (World Bank 2018). As per the revenue report it can be stated that around 24% increase it is a seized in the year of 2020.

IBRD is responsible for making profit through the payments which are received from indebted countries. These are mainly from few big middle income countries. The poorest countries are not able to afford to borrow from IBRD. They borrow from the international development agency. Apart from these in the year 2021, World Bank approved a $10.9 billion for lending towards a 56 operating region in the fiscal year (Gentilini et al. 2019). These included $3.7 billion in IBRD commitments and $7 .1 billion in IDA commitments. World Bank has been capable of achieving need to target with the successful implementation of a new strategies. It can be observed that the introduction in the project in the field of healthcare and financial sectors and education has helped in gaining huge success. These has also offered with the opportunity to achieve a better revenue in the market. With the help of development economy to operation, it is expected that a proper development of policies and programmes can be carried out. These will be capable of offering intellectual leadership capabilities and analytical services (Kraay 2018). World Bank has introduced the new approaches for assessing the business and investment climate. The strategic alignment of the business objectives has helped the World Bank to gain new heights. The different World Bank projects which are carried out to our discussed below:

• Human capital project: World Bank has created a human capital project which focuses on helping countries for investing and developing their people to stay productive citizens.The objective of the human capital project is to outline the way government must invest in providing better quality and affordability for supporting and improving child development (Sovacool 2018). It has been also observed that the human capital project will increase woman it’s easy towards a better or employment opportunities. World Bank has been aiming to build human capital globally so that better way of engaging the work force can be obtained.
• National immunisation support project: World Bank has approved the national immunisation support project for Pakistan. The project is estimated to get executed with $377.41 million (Buchanan et al. 2018). The project aims at increasing the equitable distribution of vaccines are for the children aged between 0 to 23 months.

COVID-19 crises has become one of the leading challenges in the banking industry. Banking sector has been facing huge crises due to the sudden outbreak of COVID-19. It was observed that due to the outbreak of COVID-19, it was a very difficult for the banking industry to manage the facilities and stress. COVID-19 impacted the banking sector for handling the function of World Bank. Due to the complete lockdown, banking operations and the financials transactions were at halt for the World Bank (Apedo-Amah et al. 2020). Coronavirus also triggered a need of huge funding in the different sectors of the society. World Bank was unable to process any of their operations due to lack of workforce in the departments. Covid 19 has led to completely influence the performance of the system.

World Bank also faced huge challenges in maintaining the customer relationship and commercial model. Due to the sudden crises landed upon the real economy, it was observed that banking system was unable to handle the customer relationship. These has created a huge impact over the performance. With the help of clear understanding by the banking sectors, it was observed that the gap in provision of services were being reduced. Operational resilience and business continuity management also got hampered due to the huge decline in the revenue for the bank. World Bank however focused on strategy new approaches so that the challenges encountered can be overcome. According to Al-Samarrai, Gangwar and Gala (2020), COVID-19 related to high volatility in the stock markets which has been depressing for the banks valuation. It was observed that financial services across sector was unable to deal with crises as there was lack of individual working for the bank. The regression analysis carried out to represent the way Bank evaluation has been carried out. Different countries has been facing different impacts due to the COVID-19 exposure (Yarrow, Masood and Afkar 2020). It has been observed that an unpredictable availability of infrastructure and resources has the potential to create clear opportunity. These ensure that applicable cloud technologies are also creating an Impact over the performance factor.

Impact of COVID-19 on World Bank Operations

The potential challenges which were faced by the World Bank due to this strategic management issue lies in the country are discussed below:

• Potential draw down over credit facilities: it was observed that banks in the society plays a very critical role for ensuring the availability of funds. As World Bank cooperate with the perspective to bring better wellness in the society, it was observed that COVID-19 jeopardized their own liquid position (Abay, Tafere and Woldemichael 2020).  The down over credit facilities has created a huge impact over the business operations. Hence, it can be stated that the operations of World Bank needs proper alignment with the business needs.
• Revising loan loss provision estimates: As the economic outlook remains highly volatile, COVID-19 lead to credit losses in the previously calculated year. It can be stated that the evaluation of World Bank represents that there is an increase in the expected loss provision.
• Additional capital requirements: Additional capital requirements for the purpose of maintaining capital adequacy ratio is important. The economic downturn is likely to see a rise within the non-performing loans. Banks need to perform reassessment on the existing loan portfolio for accounting for any increase within credit (Demirgüç-Kunt, A., Pedraza and Ruiz-Ortega 2021). World Bank faced a huge need for additional capital requirement with the sudden surge in the society.
• Compressing net interest income margin: World Bank faces compression in the net interest income margin. It was observed that the cost of funding has reduced which has an increasing in the mortgage loans and flight safety (Gehrie, Tormey and Sanford 2020). The impact for the lead to create an influence over the profitability ratio is also faced within the World Bank due to the emerging crisis.

Therefore, it can be stated that the strategic business issue caused a significant threat towards the business operation. World Bank has faced a huge loss in the revenue. However with the help of strong strategies, it was observed that the business is capable of overcoming the challenges.

World Bank has launched several strategies with the prospective to enable better environment within business. Formulation of new approach helps in assessing the business and investment clients in the economy. Due to the covid-19, operation got highly impacted. However the implementation of a strong strategies provided with the opportunity to provide proper services towards the client. The banking sector has proved to be very resilient in the very first phase of the crisis. The force fullness of economic policy measures has also been very physical for the organisation (Marcu 2021). It has been observed that the implementation of long term refinancing operations conducted by World Bank has provided with the opportunity to overcome the crisis situation. World Bank project cycle has been creating new opportunity for the people. Further, it can be stated that the utilisation and implementation of strong Strategies for dealing with the covid-19 crisis has been managing the banking operations efficiently. The services which has been included and propose within the strategy for delivering quick assistance towards the client are as follows:

• With the proper preparation of scenario, planning and stress testing can be done. It is expected that World Bank will be capable of delivering the expected outcome towards the intended customer. By closely reflecting on the less favourable economic Outlook World bank is expected to offer their services towards the countries which are exactly with covid-19 (Disemadi and Shaleh 2020).
• World Bank has also focused on launching different medical support and resistance to that covid-19 and can be delivered within time. This created a better opportunity for increasing the revenue in the upcoming years.
• World Bank has a strategy on developing and designing strategy which can effectively utilise a liquidity opposite. The liquidity buffers can be utilised in the times of crisis. The opportunity to manage operations in a much more reliable manner can be obtained. With the development of strong strategy will be contributing towards the business operation.
• World Bank has focused on assisting towards a formulating finance support request towards the existing shareholders. By providing financial support request towards the shareholders it will become easy to leverage the past project experiences. The World Bank will be capable of maximizing the chances of success even in the covid-19. Important for shareholders to stay aligned with the business perspective so that project can be delivered correctly.
• World rank focused on leveraging the knowledge associated with the bank subjects and financial needs so that a proper extensive network can be developed. Editing solutions with the appropriate terms and conditions is crucial. With the better way of managing the rapid capitalization will become possible.

The emergency COVID-19 project was introduced with the perspective to present, create and to respond towards the threats which are possessed by COVID-19. This helps in strengthening the national systems for public health preparedness. The first component included the emergency for a COVID-19 response and in preventing and limiting to the extent of a possible spread of COVID-19. The second component which was launched by World Bank is the implementation management, monitoring and evaluation. This aims to support administration, monitoring and evaluation activities for ensuring smooth and satisfactory project implementation (Wu and Olson 2020). Therefore, it can be concluded that strategy is implemented by World Bank has helped in achieving better position in the time of COVID-19 pandemic. These created new opportunities and also allow to the bank to deal with it the business processes. Even in the pandemic situation, World Bank was able to walk ahead on the basis of their objectives.

The world strategies introduced by the World Bank included meeting the strategies and country assistant strategies. The meeting and sector strategy is used for the purpose of guiding work to reduce the inefficiencies over specific sectors or aspects of development. It is expected that the use of proper strategy will help in driving from abroad consultation with a wild idea of a stakeholders. Besides this, the World Bank organisation has also introduced country assistant strategy which helps in identifying the key areas in which a best support for country in reducing covertly and achieving sustainability can be obtained.  The successful implementation of the strategies introduced by the World Bank has helped in dealing with the work load efficiently. These even created opportunities to deal with the necessary needs. World Bank has been able to deliver the desired amount of services towards the intended customers even during the COVID-19 pandemic.

Strategic implications in a business are referred to the impact of knowledge on the company as a whole. This arises as the major consequences which may arise from not understanding or tackling down the threats at an early stage. Due to the sudden outbreak of Covid 19 pandemic, no one was aware of the post implications. The issues started surfacing when the government ordered for complete lockdown situation in the countries. The identified issue was considered as a strategic management issue as it is a created a huge implications over the way World Bank used to perform. World Bank was unable to manage the financial needed due to the sudden implementation of lock down protocol. These created several repercussions over the forms as well. The way issues an affecting the performance of World Bank are discussed below:

1. World Bank faced the strategic issue as the firm stopped working which led to missing out on revenues. Therefore it was very difficult for World Bank to manage the loans for countries. Every country faced huge need for funds due to the sudden outbreak of Coronavirus (Rizwan, Ahmad and Ashraf 2020). World Bank was unable to provide services as the coronavirus has a completely jeopardised the business operations.
2. Due to the negative effect over the profits and a bank capital is likely to face a very difficult situation in the near future. It can be stated that an additional provisions and further undermining may lead to profitability and capital positioning (Goodell 2020. COVID-19).
3. World Bank also faced challenge due to the increase in demand for credit. It was observed that different countries were demanding for funds so that they can treat their citizens with the necessary medical support. However due to the lack of a war forces, World Bank was unable to meet their needs. These created the situation of strategic issue within the business.World Bank got negatively affected with the bonds and other traded financial instrument due to the exposure of COVID-19. It was observed that the stakeholders by not being communicated properly and frequently due to the sudden disruption of business operations. These will lead to unexpected crises.
4. World Bank faced increase in demand of funds due to the crisis. It was observed that the stakeholders were also in need for funds which created an impact a while managing the necessary funding procedure.
5. The interest rate got reduced significantly because of the crisis. Therefore World Bank has a suffered a lot due to the difference in banking requirements are. It was observed that the need for improving the liquidity position and has increase the rapidly for the banking sector (de Walque et al. 2020).

The situation of loss of funding the oil starts at the time of COVID-19 media crises as a strategic issue. Due to poor strategic alignment, business failed to achieve its target. Henceforth it can be concluded that the need for dealing with the COVID-19 areas were very crucial. It is important for the organisation to stay prepared and aware of the shortcomings in future so that such situation does not arises.

The main stakeholders associated with the World Bank organization are civil society organizations, faith based organizations, parliamentarians and private sector. Each stakeholder contribute widely towards the operation of the World Bank. COVID-19 has influenced to highly the relationship of the stakeholders. It has been observed that stakeholders were unable to communicate during the COVID-19 impact. This created a huge influence over the performance. The need to deal with the stakeholders is very important as this helps in contributing towards the performance (Mahmood 2021). COVID-19 impacted the performance of the stakeholders and also lead to delay in the operations. The issues faced by the stakeholders while dealing with the strategic issues are discussed below:

• Stakeholders were unable to communicate with the World Bank for the purpose of driving funds. It was observed that the poor management of communication led to delay in operational functionality.
• Stakeholders were also facing challenges in accessing different types of information. It can be observed that due to the exposure of COVID-19, several stakeholders were unable to handle and manage functionality (Independent Evaluation Group 2021).
• It is observed that due to the lack of feasibility factor, it became very difficult for the stakeholders to understand the business perspective the in the different areas (Tobin, Mavrommati and Urban-Rich 2020).
• COVID-19 also changed the way operations of the stakeholders are being carried out. The pandemic related to shaping the working structure as well as in the interest of stakeholders. It was observed that the need for emergency for the stakeholders also started arising so that they can battle against the pandemic crisis.
• Stakeholders were in need for financial services due to the emerging threats of COVID-19. It was observed that World Bank was unable to tackle down the necessary operations due to the poor alignment of resources.World Bank did not have any online platform for collaborating with the stakeholders. As a result, it became very difficult for the organisation to carry out the communication in further processes. It was observed that the poor implementation of the online strategy created a delay in conducting communication (Kim and Choi 2021). These issues were encountered at the time of project development. Henceforth, it can be stated that the need to consider stakeholders analyses is very important.

According to Kim and Choi 2021, stakeholders has been highly influenced you due to the sudden exposure of a COVID-19. It was observed that COVID-19 created a huge impact over the performance. The stakeholders were unable to communicate about the current findings and issues with each other due to improper alignment in the business. Almost for one or two months of communication where at hold due doing sufficient structure. Later on the World Bank in introducing strategies which can help in communicating with each other. It has been observed that communication was it needed within the business for the purpose of the managing operations are securely. According to Kim and Choi 2021, it is important for the World Bank to introduce the multi-stakeholder facilities so that it can help in sharing and managing the operations. These will provide with the ability to coordinate and support agencies for interpreting the necessary resources. It is expected that the facility will provide a better contribution towards the banking operation. Moreover the social economic and political relationship is also needed to be analysed properly so that the chances of conflict and violence does not arise. After evaluating the necessary information, it can be clearly stated that the need to introduce a proper strategy for improving communication is very crucial.

Conclusion 

The research has clearly identified the areas of concern for the selected organisation. It can be stated that World Bank faced financial issues in the year 2020 due to the sudden outbreak of Covid 19 pandemic. The condition lead to very impactful situation for the business. This also hampered the revenue of the organisation as well. The research carried out with the perspective to have a detailed understanding of the working of World Bank. World Bank in the bank and financial industry is one of the significant organization. The main mission with which World Bank operates is to offer financing, advices and research opportunity for developing nations so that they can manage their economic advancement. However, during the pandemic the situation, it became very difficult for World Bank to fight against the poverty and the ongoing crises. The research has identified the way strategy cooperation within the World Bank is being carried out. It can be clearly stated that the proper utilisation of strategies lead to contributing towards the better development of all the business. The strategic issue addressed by World Bank was overcome with proper management ideas. World Bank has prepared its self or for providing support towards the country so that they can access more number of Covid 19 vaccines. Even during the financial crisis, World Bank has been continuously supporting the country is it for overcoming the situation. The strategic approach to offer the bank and efficient stakeholders has contributed towards the growth of the business. It can be stated that the strategic issue was resolved the quicker decision making team. The researcher focused on discussing about the way issues and challenges were overcome by the World Bank organisation. It can be stated that Is the business currently has been operating in a very good strategic position. People from different countries has also been highly benefited with the proposition and ideas are launched by World Bank. The team of World Bank has also introduced the concept of a digital identification within countries so that it can provide a vital area of a financial product and the technical assistant through online. The project has also helped the people of the country to manage the resources much efficiently. After evaluating the learnings obtained from the World Bank working, it can be stated that World Bank operates with a strong strategic alignment. This strategy management capability has offered the World Bank organisation to battle against COVID-19. However, the issue encountered by the organisation did not hamper the overall functionality as the organization recovered from the challenges. Hence it can be stated that the utilisation of proper strategy can lead to contributing towards a better future of our businesses. Therefore it can be concluded that World Bank organisation has been gaining a huge amount of profit over the years. It is also expected that the upcoming years will also going to be beneficial for the company with the help of the current operational activities.

References

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