# Presentation: 147190

**Effective Business Strategies **
**at the World Bank Group**

**Trade Winds Conference**
**May 2007**

## The World Bank Group

**The World Bank Group**

**International Bank for Reconstruction**
**and Development**

**Promotion of sustainable private sector**
**investment in developing countries (financing**
**private sector projects, assistance)**

**Promotion of foreign direct investments into**
**developing countries as global insurer to**
**private investors and advisor to countries on**
**foreign investment**

**Assistance in the mediation or conciliation**
**of investment disputes between governments**
**and private foreign investors**

**35 –40 year credits, no interest, 10year**
**grace period, eligibility based on GNI per capita**

**15-20 year loans, with interest, 3-5 year grace**
**period, eligibility based on GNI per capita**

## A Quick Word about Procurement Opportunities

- IBRD/IDA Lending (FY06 $23.6B) to Foreign Governments (ie, Borrowers) generates international competitively bid contracts (approx. 40,000 per year)
- Lucrative business provided a targeted and committed strategy
- Best practices:
- _Get into the pipeline early & focus on your strengths_
- Review the project documents
- Learn the Procurement Rules (thoroughly)
- Use local  representation / build local partners
- _Speak language of development_

## Project Cycle of the World Bank

**Country Assistance Strategy**

**Project Identification**

**Project Preparation**

**Project Appraisal**

**Loan Negotiations**

**Loan Approval and Signing**

**Project Supervision**

**Implementation**

**Evaluation**

- World Bank activity

- Joint activity

## The Real Reason We’re Here: Private Sector Opportunities in Emerging markets

- We can’t ignore that emerging economies now account for over half the total world GDP (measured by purchasing power parity)

## .....and not just in China and India

**...****..and not just in China and India**

**Real GDP annual ****percent ****change**

**Forecast**

**Developing**

**2008**

**Developing ex. China & India**

*Source: World Bank*

**Notes:**
Turning to the outlook.

This graph illustrates GDP growth since 1980 for developing countries in yellow, developing countries excluding India and China in red and high-income countries in blue.

As you can see, 2006 was another strong year for developing countries. Overall their GDP is expected to come in at about 7 percent. Even excluding China and India and oil exporters, growth was strong at 4.8 percent.  Indeed, every region grew by close to 5 or more percent.

Importantly this strong growth has occurred despite relatively modest growth in high-income countries and reflects improved fundamentals, better monetary policy, lower fiscal deficits, a growing share in world trade for developing countries and more structural policies aimed at improving growth potential and the investment climate.

This strong performance is particularly heartening both because of its implications for poverty reduction and because it has occurred in the context of very high oil prices and mediocre performance by high-income countries.

## How Can You Mitigate Risk in these Growth Markets?

- _World Bank Group Private Sector Arms_
- 	*International Finance Corporation (IFC)*
**Triple bottom line: people, planet, profits**
**AAA Institution**
**Provides loans and equity to viable projects**
**Mobilizes capital from multiple sources**
**Provides technical assistance and advisory services to companies and governments**
*Multilateral Investment Guarantee Agency (MIGA)*
**Guarantees foreign direct investment (FDI) into developing countries **
**Technical services to attract and retain FDI**

## Defining Characteristics of the IFC

**Participates only in private sector ventures**
**Shares same risks as other investors**
**A Long-term partner**
**Invests in equity**
**Has market pricing policies**
**Does not accept government guarantees**
**Is profit oriented**

## IFC’S Value Added

**Global Reach & Expertise: Doubled overseas staff presence in past 4 years (1,200+  today)**
**IFC owns professional relationships with most major emerging market corporates**
**IFC presence reassures: Foreign investors, Local partners and Governments ******** *****Stamp of Approval***
**Reputation and standing to help negotiations**
**Measure of political risk cover**
**Catalyst for other investors and lenders**

## IFC Products & Services

- Loans
- long-term, local currency, etc.
- Equity & Quasi-equity
- common or preferred stock, sub-debt, asset- and mortgage-backed securities
- Loan Participations (B-loans)
- Mobilized capital via the sale of participation in IFC’s own loans
- Client Risk Management Products
- Asset and liability tools, eg, currency and interest rate swaps
- Guarantees & Partial Credit Guarantees
- Technical Assistance & Advisory Services (TAAS)
- Access to finance, Business enabling, Value Added to firms (eg, corporate governance), sustainable development and investment banking services

## Our Role

- Leverage position in the U.S. Executive Director’s office to help open doors and understand business opportunities
- Counseling on procurement strategies, political dynamics, grievances, etc
- _Business Development to help U.S. industry better leverage the IFC/MIGA for emerging market operations_
- Honest broker b/w sponsor/provider and IFC/MIGA investment officers
- Basic structuring and deal proposal consulting

## CONTACT INFO

- William Center
- Advisor & Director of Business Liaison
- 202-458-0120
- _[wcenter@worldbank.org](mailto:wcenter@worldbank.org)_
- Bryan Lopp
- Business Liaison
- 202-473-2742
- _[aellis4@worldbank.org](mailto:aellis4@worldbank.org)_