CHAPTER 1

INTRODUCTION TO WORLD BANK

World Bank

Motto Working for a World Free of Poverty

Established July 1944

Type International organization

Legal status Treaty

Purpose/focus Crediting

Location Washington, D.C., U.S.

Membership 188 countries (IBRD)

172 countries (IDA)

President Jim Yong Kim

Main organisation Board of Directors

Parent organization World Bank Group

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MEANING

The World Bank is an international financial institution that provides loans

to developing countries for capital programs.

The World Bank's official goal is the reduction of poverty. According to its

Articles of Agreement (as amended effective 16 February 1989), all its

decisions must be guided by a commitment to the promotion of foreign

investment and international trade and to the facilitation of capital

investment. The World Bank comprises two institutions: the International

Bank for Reconstruction and Development (IBRD) and the International

Development Association (IDA).

The World Bank should not be confused with the World Bank Group, which

comprises the World Bank, the International Finance Corporation (IFC), the

Multilateral Investment Guarantee Agency (MIGA), and the International

Centre for Settlement of Investment Disputes (ICSID).

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HISTORY

The World Bank was created at the 1944 Bretton Woods Conference, along

with three other institutions, including the International Monetary Fund

(IMF). The World Bank and the IMF are both based in Washington DC, and

work closely with each other.

Although many countries were represented at the Bretton Woods

Conference, the United States and United Kingdom were the most powerful

in attendance and dominated the negotiations.

Traditionally, the World Bank has been headed by a citizen of the United

States, while the IMF has been led by a European citizen.

1944–1968

Before 1968, the reconstruction and development loans provided by the

World Bank were relatively small. The Bank's staff was aware of the need to

instill confidence in the bank. Fiscal conservatism ruled, and loan

applications had to meet strict criteria

1968–1980

From 1968 to 1980,the bank concentrated on meeting the basic needs of

people in the developing world. The size and number of loans to borrowers

was greatly increased as loan targets expanded from infrastructure into

social services and other sectors.

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1980–1989

In 1980, McNamara was succeeded by US President Jimmy Carter's

nominee, A.W. Clausen. Clausen replaced many members of McNamara's

staff and instituted a new ideological focus. His 1982 decision to replace the

bank's Chief Economist, Hollis B. Chenery, with Anne Krueger was an

indication of this new focus. Krueger was known for her criticism of

development funding and for describing Third World governments as "rent-

seeking states."

PURPOSE OF THE WORLD BANK

Purposes of The World Bank

• Granting reconstruction loans to war devastated countries.

• Providing loans to governments for agriculture, irrigation, power,

transport, water supply, educations, health etc.

• Promoting foreign investment by guaranteeing loans provided by other

organizations.

• Encouraging industrial development of underdeveloped countries by

promoting economic reforms.

• Providing technical, economic and monetary advice to member countries

for specific projects.

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PROCUREMENT:

The World Bank works to ensure that procurement in Bank-financed

projects and programs is conducted in accordance with its Articles of

Agreement, which require that loan proceeds are used only for the purposes

for which the loan, grant, or credit was granted. The Procurement Policy and

Services Group of the World Bank is charged with providing the Policy and

Guidance necessary to carry out this mandate for the Bank’s operational

clients.

The Bank gives equal importance to supporting the management and reform

of public procurement systems in borrower countries. Increasing the

efficiency, fairness, and transparency of the expenditure of public resources

is critical to sustainable development and the reduction of poverty.

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CHAPTER 2:

FORMATION OF WORLD BANK

MEMBERS:

The International Bank for Reconstruction and Development (IBRD) has

188 member countries, while the International Development

Association (IDA) has 172 members. Each member state of IBRD should be

also a member of the International Monetary Fund (IMF) and only members

of IBRD are allowed to join other institutions within the Bank (such as

IDA).

World Bank Made up of 5 different organizations: –

International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA)

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

International Center for the Settlement of Investment Disputes

(ICSID)

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International Bank for Reconstruction and Development

(IBRD)

The IBRD came into existence in 1945 and currently has 188 member

countries. These countries also must be members of the International

Monetary Fund. The IBRD is a bank with the highest rating (AAA) and can

borrow funds on the global financial markets at the most favourable

conditions and can then lend them to its members (developing countries in

particular). The IBRD offers mid- and long-term loans, usually for a period

of 15-20 years, with a repayment holiday of up to 5 years. The provided

loans must be backed by governmental guarantees.

Goals of the institution

supporting sustainable economic development and reducing poverty in

member countries, mainly through the provision of loans and technical

services for certain projects and programmes of economic reform aimed

at economic and social needs in health care, education, regional

development and basic infrastructure

supporting the comprehensive and consistent development of

international trade and maintaining the balance of accounts of payments

providing financial support to governments when reforming structural

and social policies which are crucial for more effective development of

both the private and public sectors and the reduction of poverty

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Capital

initial deposits by members (bonds)

money gained by issuing short-term or long-term bonds

loans from financial market and governmental agencies

profits from its own active operations

IBRD bodies

The Board of Governors is the highest managing body; all member

countries appoint a governor and an alternate to the Board. This position is

usually taken by Ministers of Finance or Central bank Governors.

The Board of Executive Directors has 24 Executive Directors who are

responsible for the general activities of the institution

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International Development Association (IDA)

The International Development Association was established in 1960 and

currently has 165 member countries. The IDA's managing bodies are

identical to those of the IBRD.

Goals of the institution

providing help to the poorest developing countries under such conditions

which do not burden the balance of payments of these countries to the

extent of IBRD loans. This help currently focuses mainly on countries

with an annual GDP per capita lower than USD 1,025

stimulating economic and social progress in developing countries through

productivity growth, thus improving living conditions in those countries

providing technical assistance

providing advisory services

Capital

initial deposits by members (bonds)

contributions from member countries

profits achieved in the IDA

The IDA provides loans only to governments of developing countries for

a period of 35-40 years with a 10-year repayment holiday and with no

interest charge. Only an annual administrative fee amounting to 0.75% of

each loan provided must be paid.

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International Finance Corporation (IFC)

The IFC was established in 1956 and currently has 178 member countries.

The IFC provides loans for development projects, without the guarantee of

the corresponding government, for a period of 3-12 years, with a repayment

holiday up to 3 years. The IFC receives the necessary capital by issuing

bonds in member countries. IFC activities are often connected to PHARE

activities.

Goals of the institution

helping develop the private sector, especially in developing countries

helping develop local capital markets through international capital inflow

advisory services

preparing and training of economic staff

advising governments on how to improve conditions for private

investments (e.g. helping them develop domestic investment markets and

restructuring and privatising state-owned companies)

IFC bodies

IFC managing bodies are identical with those of the World Bank. The IFC

also has an independent bank advisory committee with representatives from

eight world banks and a business advisory council comprising representative

from 39 globally important companies.

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Multilateral Investment Guarantee Agency (MIGA)

The MIGA was established in 1988 and formally started its operations in

1990. It currently has 167 members. The MIGA's managing bodies include

the Board of Governors and the Board of Directors.

Goals of the institution

supporting the inflow of foreign investment into the production sector of

member countries, especially in developing countries

providing guarantees to foreign investors against losses connected to

political risks

providing advisory and consultancy services

Capital

initial deposits by members (bonds)

contributions by member countries

profits achieved in the MIGA

International Centre for Settlement of Investment Disputes

(ICSID)

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The ICSID is an autonomous international institution established in 1966

under the auspices of the World Bank under the Convention on the

Settlement of Investment Disputes between States and Nationals of Other

States (Convention). As of January 2006, the Convention had been signed

by 155 countries and ratified by 143 of them.

Goals of the institution

solving investment disputes between member countries and foreign

investors who are nationals of other member countries. Member countries

which signed the Convention agree that the decisions by the arbitral

tribunal should be binding for both parties, i.e. both parties are obliged to

comply with and fulfil the conditions of such decisions. A breach of this

agreement can be a matter for a court proceeding at the International

Court of Justice in The Hague

solving ad hoc disputes which are dealt with according to the

arbitrational rules of the United Nations Commission on International

Trade Law (UNCITRAL)

creating and harmonising legal norms.

ICSID bodies

The Administrative Council is comprised of members appointed by each

country which has signed the Convention. The president of the

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Administrative Council is the President of the World Bank. The annual

Council meetings are held together with the Annual Meetings of the IMF

and World Bank. The Secretariat of the ICSID administers arbitral

proceedings.

VOTING POWER

In 2010, voting powers at the World Bank were revised to increase the voice

of developing countries, notably China. The countries with most voting

power are now the United States (15.85%), Japan (6.84%), China (4.42%),

Germany (4.00%),United Kingdom (3.75%), France (3.75%), India (2.91%),

Russia (2.77%), Saudi Arabia (2.77%) and Italy (2.64%). Under the

changes, known as 'Voice Reform – Phase 2', countries other than China that

saw significant gains included South Korea, Turkey, Mexico,

Singapore, Greece, Brazil, India, and Spain. Most developed countries'

voting power was reduced, along with a few poor countries such as Nigeria.

The voting powers of the United States, Russia and Saudi Arabia were

unchanged.

The changes were brought about with the goal of making voting more

universal in regards to standards, rule-based with objective indicators, and

transparent among other things. Now, developing countries have an

increased voice in the "Pool Model," backed especially by Europe.

Additionally, voting power is based on economic size in addition to

International Development Association contributions.

The Five Pillars

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1. Integrate China into the world economy

2. Reduce poverty, inequality, and social exclusion

3. Resource management and environmental challenges

4. Development of capital markets

5. Improving public and market institutions

Chapter 3:

CRITISIM AND BENEFITS OF WORLD BANK

TO COUNTRIES

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The World Bank has long been criticized by non-governmental

organizations, such as the indigenous rights group Survival International,

and academics, including its former Chief Economist Joseph Stiglitz, Henry

Hazlitt and Ludwig Von Mises. Henry Hazlitt argued that the World Bank

along with the monetary system it was designed within would promote

world inflation and "a world in which international trade is State-dominated"

when they were being advocated. Stiglitz argued that the so-called free

market reform policies which the Bank advocates are often harmful

to economic development if implemented badly, too quickly ("shock

therapy"), in the wrong sequence or in weak, uncompetitive economies.

One of the strongest criticisms of the World Bank has been the way in which

it is governed. While the World Bank represents 188 countries, it is run by a

small number of economically powerful countries. These countries (which

also provide most of the institution's funding) choose the leadership and

senior management of the World Bank, and so their interests dominate the

bank. Titus Alexander argues that the unequal voting power of western

countries and the World Bank's role in developing countries makes it similar

to the South African Development Bank under apartheid, and therefore a

pillar of global apartheid.

In the 1990s, the World Bank and the IMF forged the Washington

Consensus, policies which included deregulation and liberalization of

markets, privatization and the downscaling of government. Though the

Washington Consensus was conceived as a policy that would best promote

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development, it was criticized for ignoring equity, employment and how

reforms like privatization were carried out. Joseph Stiglitz argued that the

Washington Consensus placed too much emphasis on the growth of GDP,

and not enough on the permanence of growth or on whether growth

contributed to better living standards.

The United States Senate Committee on Foreign Relations report criticized

the World Bank and other international financial institutions for focusing too

much "on issuing loans rather than on achieving concrete development

results within a finite period of time" and called on the institution to

"strengthen anti-corruption efforts".

Criticism of the World Bank often takes the form of protesting as seen in

recent events such as the World Bank Oslo 2002 Protests, the October

Rebellion, and the Battle of Seattle. Such demonstrations have occurred all

over the world, even amongst the Brazilian Kayapo people.

Another source of criticism has been the tradition of having an American

head the bank, implemented because the United States provides the majority

of World Bank funding. "When economists from the World Bank visit poor

countries to dispense cash and advice," observed The Economist in 2012,

"they routinely tell governments to reject cronyism and fill each important

job with the best candidate available. It is good advice. The World Bank

should take it." Jim Yong Kim is the most recently appointed president of

the World Bank.

Structural adjustment

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The effect of structural adjustment policies on poor countries has been one

of the most significant criticisms of the World Bank.  The 1979 energy

crisis plunged many countries into economic crisis. The World Bank

responded with structural adjustment loans which distributed aid to

struggling countries while enforcing policy changes in order to reduce

inflation and fiscal imbalance. Some of these policies included

encouraging production, investment and labour-intensive manufacturing,

changing real exchange rates and altering the distribution of government

resources. Structural adjustment policies were most effective in countries

with an institutional framework that allowed these policies to be

implemented easily. For some countries, particularly in Sub-Saharan Africa,

economic growth regressed and inflation worsened. The alleviation of

poverty was not a goal of structural adjustment loans, and the circumstances

of the poor often worsened, due to a reduction in social spending and an

increase in the price of food, as subsidies were lifted.

By the late 1980s, international organizations began to admit that structural

adjustment policies were worsening life for the world's poor. The World

Bank changed structural adjustment loans, allowing for social spending to be

maintained, and encouraging a slower change to policies such as transfer of

subsidies and price rises. In 1999, the World Bank and the IMF introduced

the Poverty Reduction Strategy Paper approach to replace structural

adjustment loans. The Poverty Reduction Strategy Paper approach has been

interpreted as an extension of structural adjustment policies as it continues to

reinforce and legitimize global inequities. Neither approach has addressed

the inherent flaws within the global economy that contribute to economic

and social inequities within developing countries. By reinforcing the

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relationship between lending and client states, many believe that the World

Bank has usurped indebted countries' power to determine their own

economic policy.

Fairness of assistance conditions

Some critics, most prominently the author Naomi Klein, are of the opinion

that the World Bank Group's loans and aid have unfair conditions attached to

them that reflect the interests, financial power and political doctrines

(notably the Washington Consensus) of the Bank and, by extension, the

countries that are most influential within it. Amongst other allegations, Klein

says the Group's credibility was damaged "when it forced school fees on

students in Ghana in exchange for a loan; when it demanded that Tanzania

privatise its water system; when it made telecom privatisation a condition of

aid for Hurricane Mitch; when it demanded labour "flexibility" in Sri Lanka

in the aftermath of the Asian tsunami; when it pushed for eliminating food

subsidies in post-invasion Iraq."

Sovereign immunity

The World Bank requires sovereign immunity from countries it deals

with. Sovereign immunity waives a holder from all legal liability for their

actions. It is proposed that this immunity from responsibility is a "shield

which [The World Bank] wants to resort to, for escaping accountability and

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security by the people." As the United States has veto power, it can prevent

the World Bank from taking action against its interests

BENEFITS OF WORLD BANK

Chapter 4:

THE INTERNATIONAL MONETARY FUND

AND WORLD BANK

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The IMF and the World Bank are institutions in the United Nations system.

They share the same goal of raising living standards in their member

countries. Their approaches to this goal are complementary, with the IMF

focusing on macroeconomic issues and the World Bank concentrating on

long-term economic development and poverty reduction

The International Monetary Fund and the World Bank were both created at

an international conference convened in Bretton Woods, New Hampshire,

United States in July 1944. The goal of the conference was to establish a

framework for economic cooperation and development that would lead to a

more stable and prosperous global economy. While this goal remains central

to both institutions, their work is constantly evolving in response to new

economic developments and challenges.

The IMF’s mandate:

The IMF promotes international monetary cooperation and provides policy

advice and technical assistance to help countries build and maintain strong

economies. The Fund also makes loans and helps countries design policy

programs to solve balance of payments problems when sufficient financing

on affordable terms cannot be obtained to meet net international payments.

IMF loans are short and medium term and funded mainly by the pool of

quota contributions that its members provide. IMF staff are primarily

economists with wide experience in macroeconomic and financial policies.

The World Bank’s mandate:

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The World Bank promotes long-term economic development and poverty

reduction by providing technical and financial support to help countries

reform particular sectors or implement specific projects—for example,

building schools and health centers, providing water and electricity, fighting

disease, and protecting the environment. World Bank assistance is generally

long term and is funded both by member country contributions and through

bond issuance. World Bank staff are often specialists in particular issues,

sectors, or techniques.

THE WORLD BANK OPERATION:

The World Bank exists to encourage poor countries to develop by

providing them with technical assistance and funding for projects and

policies that will realize the countries’ economic potential.

The Bank views development as a long- term, integrated endeavor.

During the first two decades of its existence, two thirds of the

assistance pro- vided by the Bank went to electric power and

transportation projects. Although these so-called infrastructure

projects remain important, the Bank has diversified its activities in

recent years as it has gained experience with and acquired new in-

sights into the development process.

The Bank gives particular attention to projects that can directly benefit

the poorest people in developing countries. The direct involvement of

the poorest in economic activity is being promoted through lending

for agriculture and rural development, small-scale enterprises, and

urban development.

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The Bank is helping the poor to be more productive and to gain access

to such necessities as safe water and waste-disposal facilities, health

care, family-planning assistance, nutrition, education, and housing.

Within infrastructure projects there have also been changes.

Chapter 5

WORLD BANK IN INDIA

India Projects & Programs:

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The World Bank Group’s Partnership Strategy for India (2013-2017) will

help India lay the foundations for achieving “faster, sustainable, and more

inclusive growth” as outlined in the government’s 12th five year plan. The

World Bank Group will support India with an integrated package of

financing, advisory services, and knowledge. As of July 2013, total net

commitments in India stood at $22.3 billion (IBRD $12.6 billion, IDA $ 9.7

billion) across 78 projects.

Maharashtra Rural Water Supply and Sanitation

Program

The objective of the Maharashtra Rural Water Supply and Sanitation

Program Project (RWSS) for India is to improve the performance of

Maharashtra's sector institutions in planning, implementation and monitoring

of its Rural Water Supply and Sanitation Program and to improve access to

quality and sustainable services in peri-urban villages, and in water-stressed

and water quality-affected areas. India has been one of the fastest growing

economies in the last decade, but its economy now shows signs of slowing

down. Between 2004 and 2011, a period that includes the global financial

crisis, India's growth averaged 8.3 percent per year. Expanding social

programs lowered the poverty rate by 1.5 percentage points per year during

2004-09, double the rate of the preceding decade. India's growth rate

however slipped to a decade low of 5 percent in 2012-13 due to a

combination of domestic and external factors, including high inflation, high

fiscal deficit and weak external demand for the country's exports. This

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slowdown carries high social costs for millions of Indians, and threatens the

gains made in poverty reduction over the past decade. Under its current 10-

year RWSS program, Government of Maharashtra (GoM) seeks to

significantly expand the frontiers in the sector with a focus on increasing

house connection coverage, ensuring continuous water supply with adequate

pressure and minimum quality standards, and ensuring that 100 percent of

the rural population has access to safe water and basic sanitation. However,

delivering this vision requires building capacities of institutions through

appropriate implementation and management models. Maharashtra is also a

rapidly urbanizing state with many large villages (each with a population of

more than 10,000 people) and a growing number of peri-urban areas that are

demanding higher levels of service. Finally, the state also faces challenges in

addressing the needs of water-stressed and water quality affected areas,

managing drinking water quality, and ensuring drinking water security in the

face of increasing droughts and climate change impacts on rainfall patterns

and the yield of existing sources

INDIA: UTTRAKHAND RWSS ADDITIONAL

FINANCING

The development objective of the Additional Financing for Disaster

Mitigation of the Uttarakhand Rural Water Supply and Sanitation Project

(UKRWSSP) for India is to improve the effectiveness of rural water supply

and sanitation (RWSS) services through decentralization and increased role

of Panchayati Raj institutions and local communities in the state of

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Uttarakhand. The additional financing is aligned to the Bank's country

partnership strategy to enhance disaster risk management systems and

anchored within the "strategic engagement area 3: inclusion" of the India

CPS, which states that the World Bank's investments in this area will: (i)

help build institutional capacity to prepare for and manage the impact of

natural disasters, and (ii) help people protect themselves from natural

disasters and recover quickly from them. The additional financing will

modify the project development objective of the project and add new

component D, RWSS disaster mitigation activities. The creation of a

separate component D will bring more clarity and strengthen the reporting

requirements for the additional financing, as distinct from new schemes

under the on-going UKRWSSP. Further, the decentralization program,

including institutional and implementation arrangements, will be different

under component D. The change in implementation arrangements is

necessitated by the emergency nature of the project.

Odisha Disaster Recovery Project

The development objective of the Odisha Disaster Recovery Project for

India is to restore and improve housing and public services in targeted

communities of Odisha, and increase the capacity of the state entities to

respond promptly and effectively to an eligible crisis or emergency. The

project has five components. The first component is resilient housing

reconstruction and community infrastructure. It has following two sub-

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components: (i) housing reconstruction for the reconstruction of about

30,000 houses in the designated rural areas in the coastal belt 5 km from the

high tide line (HTL) in the districts of Ganjam and Puri, and 5km from the

Chilika lake boundary as defined by the survey of India in the district of

Khordha; and (ii) selected community infrastructure for public infrastructure

improvements to complement the housing reconstruction. The second

component, urban infrastructure in Berhampur will finance investments to

improve public services in Berhampur while at the same time reduce the

vulnerability of its population. Improved public infrastructure will reduce

vulnerability through improved drainage to reduce floods, and increasing the

resilience of public service infrastructure. It has following four sub-

components: (i) upgrading of slums; (ii) public service infrastructure; (iii)

community participation; and (iv) technical assistance. The third component,

capacity building in disaster risk management objective is to support Odisha

State Disaster Management Authority (OSDMA) in strengthening their

overall capacity towards better risk mitigation, preparedness, and disaster

response, in line with global best practices. The fourth component,

implementation support will finance the incremental operating costs of the

project management units (PMUs) in OSDMA and the Department of

Housing and Urban Development (H and UD), and the project

implementation unit (PIUs) in OSDMA and the Berhampur Municipal

Corporation (BeMC). The fifth component, contingent emergency response

will draw resources from the unallocated expenditure category and or allow

the Government of Odisha (GoO) to request the Bank to re-categorize and

reallocate financing from other project components to partially cover

emergency response and recovery costs.

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India: Bihar Integrated Social Protection Strengthening

Project

The development objective of the Bihar Integrated Social Protection

Strengthening Project for India is to strengthen institutional capacity of the

Department of Social Welfare and the Rural Development Department to

deliver social protection programs and services and expand outreach of

social care services for poor and vulnerable households, persons with

disabilities, older persons, and widows in the state of Bihar. The project has

two components: the first component, strengthening social protection

systems and capacity will strengthen core systems and capacity of the Bihar

Rural Development Society (BRDS) and the State Society for Ultra-Poor

and Social Welfare (SSUPSW), which are the program implementation arms

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of the Rural Development Department and the Department of Social Welfare

respectively, at the state, district, and block levels. This component has two

sub-components: (i) strengthening systems and capacity for safety net

delivery; and (ii) strengthening systems and capacity for social pension and

social care service delivery. The second component is establish and

strengthen social care services. This component will support establishing

social care services across the state through social care service centers

(referred to as Buniyad centers) that will provide high quality care, support,

and rehabilitation services for older persons, widows, and persons with

disabilities. It has following three sub-components: (i) establish and

strengthen social care services; (ii) pilot models in social protection delivery;

and (iii) innovation window.

India: Rural Water Supply and Sanitation Project for

Low Income States

The objective of the Rural Water Supply and Sanitation Project for low

income states for India is to improve piped water supply and sanitation

services for selected rural communities in the target states through

decentralized delivery systems and to increase the capacity of the

participating states to respond promptly and effectively to an eligible crisis

or emergency. The project consists of the following components: 1) capacity

building and sector development; 2) infrastructure development; 3) project

management support; and 4) contingency emergency response. The first

component supports the building of institutional capacity for implementing,

managing and sustaining project activities. The infrastructure development

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component supports investments for improving water supply and sanitation

coverage, including construction of new infrastructure and rehabilitation and

augmentation of existing schemes. The third component includes project

management support to the various entities at the national, state, district, and

village levels for implementing the project, including staffing, consultancy

and equipment costs, and internal and external financial audits. The final

component deals with the utilization of resources from unallocated

expenditure and allows the Government to request the Bank to re-categorize

and reallocate financing from other project components to partially cover

emergency response and recovery costs in the event of an emergency or

crisis.

National AIDS Control Support Project

The objective of the National AIDS Control Support Project for India is to

increase safe behaviors among high risk groups in order to contribute to the

national goal of reversal of the HIV epidemic by 2017. The project has three

components. (1) Scaling up targeted prevention interventions component

will support the scaling up of Targeted Interventions (Tis) with the aim of

reaching out to the hard to reach population groups who do not yet access

and use the prevention services of the program, and saturate coverage among

the High Risk Groups (HRGs). In addition, this component will support the

bridge population, i.e. migrants and truckers. (2) Behavior change

communications will include: (i) communication programs into society and

to encourage normative changes aimed at reducing stigma and

discrimination in society at large, and in health facilities specifically, as well

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as to increase demand and effective utilization of testing and counseling

services; (ii) financing of a research and evaluation agency to assess the

cost-effectiveness and program impact of behavior change communications

activities; and (iii) establish and evaluate a helpline at the national and state

level to further increase access to information and services. (3) Institutional

strengthening component will support innovations to enhance performance

management including fiduciary management, such as the use of the

computerized financial management system, at national and state levels

India Low-Income Housing Finance

The development objective of the Low Income Housing Finance Project for

India is to provide access to sustainable housing finance for low income

households, to purchase, build or upgrade their dwellings. The project has

three components. The first component is capacity building. Under this

component activities will be financed to strengthen the capacity of National

Housing Bank (NHB), qualified intermediary institutions, and Qualified

Primary Lending Institutions (QPLIs). The aim will be to develop new

financial products, loan standards, risk management tools, and financial

literacy and consumer protection capacity. In addition, pilots will be

designed, launched and monitored. Building upon and complementing

National Housing Bank (NHB’s) monitoring and evaluation (M&E) systems

and processes, this component will also support an impact assessment to

independently assess the social and household level impact of the project.

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The second component is financial support for sustainable and affordable

housing. This component will finance NHB to refinance, directly or

indirectly through qualified intermediary institutions, low-income housing

loans made by QPLIs to primary borrowers to purchase, build or upgrade

their dwelling. NHB has recently prepared a refinancing scheme for secured

low-income housing loans to borrowers with formal and informal incomes.

NHB will develop guidelines (to be formulated and reflected in the project’s

operations manual) for the provision of alternatively secured housing loans

to formal and informal borrowers. The third component is project

implementation. A Project Implementation Unit (PIU) will be set up within

NHB to help implement the project, carry out monitoring and evaluation, be

responsible for legal issues and grievance redressal, overseeing and

monitoring the social and environmental due diligence (including

conducting annual third party audits of QPLIs), keeping the project’s

operations manual updated, and financial management and carry out any

procurement necessary under the project. Low-income housing expertise

will also be added to the PIU to provide technical inputs to the procurement

of consultants’ services under component one. External communications on

the project will also be covered by NHB staff. Lastly, NHB will also take on

responsibility for dissemination and communication activities under its own

budget, such as conferences or workshops.

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Rajasthan Road Sector Modernization Project

The development objective of the Rajasthan Road Sector Modernization

Project for India is to improve rural connectivity, enhance road safety, and

strengthen road sector management capacity of the state of Rajasthan. The

project has three components. The first component is rural connectivity

improvement. This component will support construction of about 2500

kilometer (km) rural roads to provide connectivity to about 1,300 revenue

villages with population between 250 and 499 people in the areas of the state

not covered by Pradhan Mantri Gram Sadak Yojana (PMGSY) and

introduce good practices of cost effective low volume technologies. The

second component is road sector modernization and performance

enhancement. This component will support implementation of a road sector

modernization plan (RSMP) in the following key areas: improved policy

framework; modernization of engineering practices and business procedures;

sustainable asset management; institutional and human resource

development; preparing a pipeline of feasible projects for implementation;

and enhancing governance and accountability in public works department

(PWD). The third component is road safety management. This component

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will support the strengthening of road safety management systems in

Rajasthan with the objective of reducing the number of fatalities and serious

injuries from traffic accidents in the state.

Uttar Pradesh Water Sector Restructuring Project.

The objective of the Second Phase of the Uttar Pradesh Water Sector

Restructuring Project for India is to: (a) strengthen the institutional and

policy framework for integrated water resources management for the entire

state; and (b) increase agricultural productivity and water productivity by

supporting farmers in targeted irrigation areas. There are six components to

the project, the first component being strengthening of state-level water

institutions and inter-sector coordination. This component aims to provide

support to the institutions in the state responsible for overall integrated water

resources management and implementation of the state water policy. The

second component is the modernization and rehabilitation of irrigation and

drainage systems. The third component is the consolidation and

enhancement of irrigation institutional reforms. This component will

enhance the efficiency of the Uttar Pradesh Irrigation Department (UPID)

and strengthen the Participatory Irrigation Management (PIM) approach

both in the department as well as in the community. The fourth component is

the enhancing agriculture productivity and on-farm water management. This

component (to be implemented directly by the Department of Agriculture)

aims to improve the overall agriculture productivity and water-use efficiency

at the field level. The fifth component is the feasibility studies and

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preparation activities for the next phase. This component is to prepare

detailed surveys and designs for future third phase areas. These new areas

will be identified by the Government of Uttar Pradesh and will make use of

similar design principles (and the lessons learned) adopted under this second

phase operation. Finally, the sixth component is the project coordination and

monitoring.

OTHER NAMELY PROJECTS ARE:

Project Title Project ID

Commitment

Amount * Status Approval Date

Maharashtra Rural Water Supply

and Sanitation Program P126325 165.0 Active

March 12,

2014

INDIA: UTTRAKHAND RWSS

ADDITIONAL FINANCING P148009 24.0 Active

March 4,

2014

Odisha Disaster Recovery Project P148868 153.0 Active

February 20,

2014

India: Bihar Integrated Social

Protection Strengthening Project P118826 84.0 Active

December

30, 2013

India: Rural Water Supply and

Sanitation Project for Low Income

States P132173 500.0 Active

December

30, 2013

Second Gujarat State Highway

Project (GSHP II) P114827 175.0 Active

December

13, 2013

India:Improving Development

Programmes in Tribal Areas P145058 0.5 Active

November

25, 2013

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National Highways Interconnectivity

Improvement Project P121185 500.0 Active

October 29,

2013

Rajasthan Road Sector

Modernization Project P130164 160.0 Active

October 29,

2013

Uttarakhand Disaster Recovery

Project P146653 250.0 Active

October 25,

2013

Uttar Pradesh Water Sector

Restructuring Project Phase 2 P122770 360.0 Active

August 28,

2013

Tamil Nadu and Puducherry Coastal

Disaster Risk Reduction Project P143382 236.0 Active

June 20,

2013

India Low-Income Housing Finance P119039 100.0 Active

May 14,

2013

India Second Kerala State Transport

Project P130339 216.0 Active

May 14,

2013

National AIDS Control Support

Project P130299 255.0 Active May 1, 2013

Himachal Pradesh Watershed

Management Project P104901 8.0 Active

November

20, 2012

HP State Roads Project - Additional

Financing P130616 61.7 Active

October 25,

2012

India - Bihar Panchayat

Strengthening Project P102627 84.0 Active

September

27, 2012

India: Karnataka Health Systems

Additional Financing P130395 70.0 Active

September

27, 2012

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AF - HP Mid-Himalayan Watershed

Development Project P130944 37.0 Active

September

27, 2012

CONCLUSION:

The World Bank's activities are focused on developing countries, in fields

such as

-human development (e.g. education, health),

-agriculture and rural development (e.g. irrigation, rural services),

-environmental protection (e.g. pollution reduction, establishing and

enforcing regulations),

-infrastructure (e.g. roads, urban regeneration, electricity), and

-governance (e.g. anti-corruption, legal institutions development).

It provides loans at preferential rates to member countries, as well as grants

to the poorest countries. Loans or grants for specific projects are often linked

to wider policy changes in the sector or the economy. For example, a loan to

improve coastal environmental management may be linked to development

of new environmental institutions at national and local levels and to

36

implementation of new regulations to limit pollution.

Technically the World Bank is part of the United Nations system, but its

governance structure is different. Membership gives certain voting rights

that are the same for all countries but there are also additional votes which

depend on financial contributions to the organization. As a result, the World

Bank is controlled primarily by developed countries, while clients have

almost exclusively been developing countries. Some critics argue that a

different governance structure would take greater account of developing

countries' needs. As of November 1, 2004 the United States held 16.4% of

total votes, Japan 7.9%, Germany 4.5%, and the United Kingdom and

France each held 4.3%. As major decisions require an 85% super-majority,

the US can block any change.

Structural adjustment:

Is a term used to describe the policy changes implemented by the

International Monetary Fund (IMF) and the World Bank (the Bretton Woods

Institutions) in developing countries. These policy changes are conditions

(Conditionalities) for getting new loans from the IMF or World Bank, or for

obtaining lower interest rates on existing loans. Conditionalities are

implemented to ensure that the money lent will be spent in accordance with

the overall goals of the loan.

Conditions

Some of the conditions for structural adjustment can include:

Cutting expenditures, also known as Austerity.

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Focusing economic output on direct export and resource extraction

Trade liberalization, or lifting import and export restrictions

Increasing the stability of investment (by supplementing foreign direct

investment with the opening of domestic stock markets).

Balancing budgets and not overspending.

Removing price controls and state subsidies

Privatization, or divestiture of all or part of state-owned enterprises.

Enhancing the rights of foreign investors vis-a-vis national laws.

Improving governance and fighting corruption.

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BIBLOGRAPHY

www.google.com

www.worldbank.com

www.slideshares.com

www.powerpointprojects.com

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