Ten Things Worth Knowing About The World Bank in India

 

1.   India is one of our ‘founding fathers’.

 

India was among the 17 original participants of the 1944 Bretton Woods conference which conceived the idea of the International Bank for Reconstruction and Development (IBRD)—more commonly known today as the “World Bank”. In fact, it was the India delegation which first suggested the name IBRD. The Bank’s New Delhi office, established in 1957, is the oldest continuously functioning World Bank country office.

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2.   Our loans are a cheap source of financing.

 

India receives roughly half of its World Bank loans interest free.  These are provided by the Bank’s International Development Association.  This agency provides grants and “credits”, which are loans at zero interest, with a 0.75 percent finance charge.  The remaining half of World Bank loans to India are provided by the International Bank for Reconstruction and Development, another World Bank agency which provides loans at low interest rates.  Countries that borrow from the IBRD have more time to repay than if they borrowed from a commercial bank—15 to 20 years with a three-to-five-year grace period before the repayment of principal begins.

 

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3.   India is the largest recipient of our financial assistance.

 

India remains the Bank’s largest single borrower. Our lending to the country touched $2.9 billion in FY 2005 – more than double the amount lent a year earlier. The bulk of new lending has gone to much-needed infrastructure and human development projects, reflecting the rapid growth of India's economy.

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4.   We rely on local expertise.

 

The World Bank office in New Delhi has around 140 professional staff members, of which around 95 percent are Indian nationals who specialize in areas such as education, health, financial management, resource management, information technology and communications.  The Bank also works closely with the Indian government, civil society and communities in designing its support for the country. Most importantly, the World Bank’s overall assistance to the country is specifically designed to support the goals outlined in the Government’s Five Year Plan.

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5. We looked to India first for new development ideas.

 

New Delhi was the site of the first Development Marketplace to be held in South Asia.  The event, launched in December, 2003, allowed non-government players in the development arena find funding for their creative programs. More than 1,500 proposals were received, out of which the 20 most innovative will share a grant of US$20,000.

 

Learn more about the Development Marketplace in India

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6. We have joined hands with India in the fight against HIV/AIDS.

 

We are the largest financers of India’s National Aids Control Program (NACP) with a commitment of around US$275 million in interest-free credits.  Our assistance has helped the government develop its ability to manage HIV/AIDS programs at the central and state level and has enabled important gains in improving blood safety, expanding surveillance to understand the scope of the problem, and scaling up activities aimed at prevention and treatment.  With support from the World Bank and other donors, the government set up state AIDS bodies in 25 states and seven Union territories. 

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7.   We are bringing our assistance to the state level.

 

Although our financing is still channeled through the national government, we are spreading Bank support more widely across India’s poorest states. A key focus of our work has been supporting fiscal reforms, reducing corruption, and increasing accountability of state governments. At the national level we are financing programs critical to achieving the Millennium Development Goals under common arrangements with other development partners.

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8.   We are helping to energize India.

 

For 50 years, World Bank assistance to India’s energy sector has covered oil and gas, coal, power projects and alternative sources of energy. We have been a key partner in the government’s efforts to develop its national power grid, and we have provided technical assistance aimed at increasing the access of poor people to electricity and clean, affordable fuel.

 

For more information, see Access of the Poor to Clean Household Fuels in India or Why Are Power Sector Reforms Important for the  Poor?.

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9.   We’re excited about e-governance in India.

 

The Government of India is planning to use internet technology to reduce corruption and increase public accountability—and we are pleased to lend our support. In February, 2004, the World Bank New Delhi Office, in association with ASSOCHAM, organized a two-day national summit to elicit wider input and help the government develop its program. The World Bank also organized a field visit to Karnataka for policy makers, civil society groups and donor agencies from around the world to learn about the success of the government’s Bhoomi project which computerized 20 million records of land ownership, benefiting nearly seven million rural farmers by allowing them to transfer land titles online.  The project has reduced corruption and saved time and costs.

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10. We share India’s vision of 'Education for All'.

 

We are helping the country bring all children into elementary school, especially girls, children from disadvantaged groups such as scheduled castes and tribes, and children with disabilities. Our support for the Government of India’s nation-wide Education for All program - Sarva Shiksha Abhiyan (SSA) – is not only helping the country to universalize education for 6 to 14 year-olds by 2010, but also working to improve its quality. 

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