The World Bank and Japan

About The World BankThe Founding of the World Bank
The creation of the World Bank took place during the latter stages of WorldWar II. In 1944, world leaders gathered at a conference in Bretton Woods,
New Hampshire, to discuss stability and reconstruction in the postwar world
economy. During the conference, agreements were signed to set up theInternational Bank for Reconstruction and Development (IBRD) and theInternational Monetary Fund (IMF). The agreements came into effect in 1945
and realized the establishment of the World Bank and the IMF.

Roles

July 1944: The Bretton Woods Conference

The World Bank is a multilateral development bank dedicated to helping reduce poverty around the world. It provides financial
and technical assistance to developing countries in order to bolster economic and social development, the improvement ofliving standards, and sustainable growth. The Bank provides support in broad themes such as agriculture, climate change,
education, gender, governance, health, fragile and conflicted-affected countries, infrastructure, poverty, trade, transport, urban
development, and many others. Specialized staff are stationed in more than 140 countries to help realize the specificdevelopment needs of many of the Bank’s member countries.

The World Bank Group Affiliates
The World Bank Group consists of five organizations: the International Bank for Reconstruction and Development(IBRD), which provides loans and guarantees to middle-income and creditworthy low-income countries; theInternational Development Association (IDA), which provides highly concessional financing to the poorest countries;
the International Finance Corporation (IFC), which invests in private-sector projects and provides advisory services
for businesses and governments in developing countries; the Multilateral Investment Guarantee Agency (MIGA),
which helps promote foreign direct investment in developing countries by providing guarantees to investors against
noncommercial risks; and the International Centre for Settlement of Investment Disputes (ICSID), which supports
conciliation and arbitration of international investment disputes.

Operation and Policy Making
Relationship of Member Countries
and the World Bank Group
Member Countries
Board of Governors
Board of Executive Directors
The World Bank Group President
The Bank Group Management and Staff

David Malpass
The 13th President
April 2019–Present

1

The World Bank Group operates under the authority of its Board of Governors
consisting of each member country’s governor (usually the minister of financeor the head of the country’s central bank). The Boards of the World Bank
Group and the IMF meet once a year at the Annual Meetings.
The Board of Governors delegates responsibility to the Board of Executive
Directors for overall operation of the World Bank. The 25 Executive Directors
work on site at the Washington, DC, headquarters. Five of them areappointed by the five largest shareholders (Japan is the second after theUnited States), while others are elected by other member countries every two
years. Voting power in the World Bank is determined by a member’s share in
the Bank’s capital stock, not a single vote for a single country.
The World Bank Group President is elected by the Board of Executive
Directors and serves for a five-year term, which can be renewed.

Jim Yong Kim
The 12th President
July 2012–February 2019

Robert Strange McNamara
The 5th President
April 1968–June 1981

Robert B. Zoellick
The 11th President
July 2007–June 2012

Eugene Robert BlackThe 3rd President
July 1949–December 1962

James D. Wolfensohn
The 9th President
June 1995–May 2005

Eugene Meyer
The 1st President
June 1946–December 1946

IBRD and IDA Business Model
To meet IBRD’s development goals, it is important for IBRD to intermediate funds for lending from the international capital
markets. IBRD’s annual funding volumes vary from year to year, and funds raised are used to finance its development
projects and programs in member countries.
Prior to 2018, IDA has financed its operations with its own equity, including regular additions to equity provided by member
countries as part of the three-year replenishment process. In 2018, IDA introduced its hybrid financing model to include
market debt. By prudently leveraging its equity and blending market debt with additional equity contributions frommembers, IDA has increased its financial efficiency, and scaled up its financing to support the increasing demand for its
resources.
–The World Bank and Japanese Market–
The World Bank has been issuing World Bank bonds in the Japanese capital market for more than 40 years. The WorldBank’s first bonds were issued in 1971 as “Samurai” bonds (Japanese yen-denominated bonds issued in the Japanesemarket by foreign issuers). To date, Japanese investors have purchased World Bank bonds equivalent to more than 10
trillion yen.
Currently, Japan is one of the most important markets for the World Bank, sharing more than one-third of its financing.
(See https://treasury.worldbank.org/en/about/unit/treasury.)

Loans
IncomeBorrowings

EquityInvestments
Other development activities

IBRD: Funding Allocation FY2020
Other
9%

Borrowings

Non-concessional lending

IDA: Share of Contributions FY2020

UnitedStates Other
16.67% 28.87%
Japan
Canada
8.08% 4.57%
China
France
4.97%
Germany 7.07%
4.41% Germany
France 10.16%
4.09%

North
America28%
United Kingdom
4.09%

Europe36%

Concessional lending and grants

Investments

IBRD: Share of Capital Stock FY2020

Other
Japan 57.69%
13%

Non-JapanAsia
14%

EquityReflows and operating results

IDA Business Model
IDA and trust funds

IBRD Business Model

UnitedStates19.90%
Japan
17.57%
UnitedKingdom
11.86%

As of June 30, 2020

Commitments
World Bank Lending Commitments FY2016–2020
Millions of dollars

60,00050,00040,00030,365
16,171

29,72910,000021,932

22,611

23,002

23,191FY2017FY2018FY201919,51330,00020,00024,01027,976IDA
IBRD

FY2016FY20202

Sixty Seven Years of the World Bank and1950s and 1960s: Japan as a Major Borrower
Japan signed the San Francisco Peace
Treaty1951
1952

IBRD Membership(IBRD share of 2.77 percent; 9th largest)
・
・
・

1953

Signing documents on IBRD Membership,
August 13, 1952

Heavy Borrower(31 projects totaling US$863 million)
・
・
・

1960

IDA Membership as Donor
Signing documents on IDA Membership,
December 27, 1960

Tokyo Olympics(IDA share of 4.16 percent)
・
・
・

1964

The World Bank Group-International
Monetary Fund Tokyo Annual Meetings(102 IBRD members)
・
・
・

1966

Launch of Tokaido Shinkansen(bullet train) Line, 1964

Final World Bank Loan Signed
WBG-IMF Tokyo Annual Meetings, 1964

1967

Graduated from Borrower Status

1970s and 1980s: Greater Voice for Japan as a Creditor

1970

World Bank Tokyo Office Established
Nixon Shock1971

1st Placement of World Bank Bond in Japan・・・

Oil Shock

1973
・
・
・

1984

2nd Largest Shareholder(IBRD share of 5.19 percent;
IDA share of 25.43 percent)
・
・
・

1987

Meeting on the JJ/WBGSP at the World
Bank, 1987

3

Joint Japan/World Bank
Graduate Scholarship Program(JJ/WBGSP) EstablishedWorld Bank Bond

Japan: An Exceptional History of Partnership
1990s−Present: Japan's Increasing Role as a Partner
Collapse of Japan’s Bubble Economy

1990

Repayment Completed
Policy and Human Resources Development Fund (PHRD) Established・・・Tokyo International Conference on
African Development (TICAD) Launched・・・Asian Currency Crisis
・
・
・

1993
1997
2000

Signing ceremony for PHRD grant for thePhilippines

Japan Social Development Fund (JSDF)
Established
・
・
・

2006

JSDF established: Social Protection
grants especially targeting the poorest

Lehman Brothers Shock

The Annual Bank Conference on
Development Economics (ABCDE) in Tokyo
・
・
・

2008

4th Tokyo International Conferenceon African Development (TICAD IV)
Climate Investment Fund (CIF) Agreed
at the Toyako, Japan, G8 Summit
・・・
WB and the UN held a joint press
conference at the Toyako, Japan,
G8 Summit, 2008

The Great East Japan Earthquake

TICAD IV Opening Ceremony, 2008

2011
2012

2nd World Bank Group-International
Monetary Fund Tokyo Annual Meetings(188 IBRD members)
・
・
・

2013

5th Tokyo International Conferenceon African Development (TICAD V) in Yokohama・・・2012 Annual Meetings
Development Committee Opening
Press Conference, Tokyo, 20122014

TICAD V logo, 2013

Japan-World Bank Program for Mainstreaming
DRM in Developing Countries” Launched

N A I R O B I

World Bank Disaster Risk Management (DRM) Hub
Established in Tokyo・・・

2 0 1 6

TICAD VI logo, 2016

2015

TICAD V Opening Ceremony,
Yokohama 2013

3rd UN World Conference on Disaster Risk Reduction (WCDRR) in Sendai
・
・
・

2016

6th Tokyo International Conference on African Development (TICAD VI) in Nairobi, Kenya
・
・
・

2019

G20 Osaka Summit
7th Tokyo International Conference on African Development (TICAD7) in Yokohama

TICAD7 logo, 20194

World Bank Loans to Japan
Year Signed/Beneficiary and Project
Kansai Electric Power Co. Ltd.: two Tanagawa thermal power stations*

1953

Kyushu Electric Power Co. Ltd.: Karita thermal power station*
Chubu Electric Power Co. Ltd.: Yokkaichi thermal power station*

1955

Yawata Iron and Steel Co. Ltd.: steel-plate production facilities*
Nippon Steel Tube Co. Ltd.: seamless tube production facilities*
Toyota Motor Co. Ltd.: Koromo Plant truck and bus machine tools*

Thermal Power

1956

Ishikawajima Heavy Industries Co. Ltd.: Tokyo marine engine turbine production facilities*
Mitsubishi Shipbuilding & Engineering Co. Ltd.: Nagasaki Shipyard diesel engine production facilities*
Kawasaki Steel Corporation: Chiba plant hot and cold strip mills*
Agricultural Land Development Machinery Public Corporation: several agricultural development projects

1957

Aichi Waterworks Corporation: public water project in Aichi Prefecture
Kawasaki Steel Corporation (2nd loan): Chiba Works blast furnace, coke oven*
Kansai Electric Power Co. Ltd. (2nd loan): Kurobe No.4 hydroelectric power station*
Hokuriku Electric Power Co. Ltd.: Arimine hydroelectric power station*

Steel Industry

1958

Sumitomo Metal Industries Ltd.: Wakayama Works blast furnace and blooming mill*
Kobe Steel Ltd.: Nadahama blast furnace and Wakihama steel mill*
Chubu Electric Power Co. Ltd. (2nd loan): Hatanagi No.1 and No.2 hydroelectric power stations*
Nippon Steel Tube Co. Ltd. (2nd loan): Mizue Works steel converter*
Electric Power Development Co. Ltd.: Miboro hydroelectric power station*

1959

Fuji Iron & Steel Co. Ltd.: Hirohata Works blast furnace, converter, and blooming mill*
Yawata Iron & Steel Co. Ltd. (2nd loan): Tobata Works blast furnaces*
Japan Highway Public Corporation: Amagasaki – Ritto section of the Meishin Expressway

1960

Kawasaki Steel Corporation (3rd loan): Chiba works slab casting facilities construction*
Sumitomo Metal Industries, Ltd. (2nd loan): Wakayama Works combined mill*
Kyushu Electric Power Co. Ltd. (2nd loan): Shin-Kokura thermal power station*

1961

Japan National Railways: Tokaido Shinkansen (bullet train) Line
Japan Highway Public Corporation (2nd loan): Ichinomiya – Ritto and Amagasaki –Nishinomiya sections of the Meishin Expressway

Automobile Industry

1963
1964

Japan Highway Public Corporation (3rd loan): Tokyo – Shizuoka section of the Tomei Expressway
Japan Highway Public Corporation (4th loan): Toyokawa – Komaki section of the Tomei Expressway
Metropolitan Expressway Public Corporation: Haneda – Yokohama section of the Metropolitan Expressway
Electric Power Development Co. Ltd. (2nd loan): Kuzuryugawa hydroelectric power stations

1965(Nagano and Yugami)
Japan Highway Public Corporation (5th loan): Shizuoka – Toyokawa section of the Tomei Expressway
Hanshin Expressway Public Corporation: Kobe Line No.1

1966

Japan Highway Public Corporation (6th loan): Tokyo – Shizuoka section of the Tomei Expressway*through the Japan Development Bank

Shipbuilding Industry

Irrigation

5(See worldbank.or.jp/31project.)Hydroelectric Power

Transportation

Role of the World Bank Tokyo Office
The World Bank Tokyo Office was established in 1970 for the purpose of financing through issuing World Bank bonds,
as well as enhancing the partnership with Japan through activities in external affairs and recruitment of Japanesenationals.

External Affairs
In its effort to improve understanding of global development agenda and to increase transparency andaccountability of World Bank operation, the Tokyo Office undertakes the following activities:❂ Providing information on development issues andWorld Bank operation❂ Facilitating policy dialogue with the government anddevelopment organizations❂ Providing information, data, and analysis for the media❂ Promoting dialogue with Diet members throughParliamentary Network on the World Bank (PNoWB)❂ Exchanging opinions with NGOs, civil society, andopinion leaders❂ Promoting cooperation and dialogue with businesses
and business foundations in Japan❂ Offering information sessions and one-on-one dialogues
on business opportunities with the World Bank
❂ Enhancing cooperation with universities and research
institutes❂ Encouraging dialogue with students and youth
foundations

The Japan-World Bank Program for Mainstreaming Disaster Risk Management (DRM) in Developing Countries
Reflecting on lessons learned from the 2011 Great East Japan Earthquake and Tsunami, the “Japan-World Bank
Program for Mainstreaming Disaster Risk Management in Developing Countries” was launched in February 2014. The
Program and the establishment of the World Bank Tokyo DRM Hub as its implementation arm have provided an
operational platform for the joint Japan-World Bank disaster resilience partnership to connect Japan’s world-leading DRM
expertise with developing countries. The Program – which has been renewed until World Bank Fiscal Year 2024 withadditional funding from Japan – aims at supporting developing countries in mainstreaming DRM in national development
planning and investment programs through project preparation of World Bank operations with a thematic focus on: i)
Resilient Infrastructure, ii) Risk Identification, Risk Reduction, and Preparedness, and; iii) Disaster Risk Financing andInsurance (DRFI). The Program also strives to connect Japanese and global expertise in DRM with developing countries.
The Program is managed by the Global Facility for Disaster Reduction and Recovery (GFDRR) under the oversight of a
Steering Committee comprising representatives from the Japanese Finance Ministry and the World Bank. Day-to-day operations of the Program are conducted by the
Tokyo DRM Hub under the guidance of the World Bank's Special Representative, Japan. Through the Program, the World Bank is now working across Global Practices
to integrate DRM and resilience in its investments towards building quality infrastructure and resilient societies for all. In addition, Program activities are enabling thedesign and implementation of innovative disaster risk financing solutions for countries and regions to better manage disaster risks to safeguard their critical infrastructure
and public assets. As of June 30, 2020, the Program has supported 139 TA grants totaling over $120 million, in 70 countries.

Tokyo Development Learning Center (TDLC)
Launched in 2004 in partnership with the Government of Japan, the Tokyo Development
Learning Center (TDLC) is a pivotal World Bank program housed under the Global Practice for
Urban, Disaster Risk Management, Resilience and Land (GPURL). Located in the heart ofTokyo, TDLC serves as a global knowledge hub that aims to operationalize Japanese andglobal urban development knowledge, insights, and technical expertise to maximize
development impact of the urban development projects in World Bank Group client countries.
TDLC program revolves around a unique knowledge ecosystem and operates four core
activities: Technical Deep Dives (TDDs), Operational Support, Publications, and the City
Partnership Program (CPP). During FY2016-2020, TDLC influenced a combined portfolio of
US$61.8 billion in committed World Bank lending operations in more than 80 countries.

6Websiteworldbank.org/en/country/japan

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The World Bank Tokyo Office
14th Floor, Fukoku Seimei Building
2-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011 Japan
Tel: (81-3) 3597-6650
Fax: (81-3) 3597-6695
Email: ptokyo@worldbank.org