Contacts: In Delhi: Sudip Mozumder (91 11) 2461-7241 smozumder@worldbank.org In Washington: Erik Nora (202) 458 4735 enora@worldbank.org WASHINGTON, July 31, 2008 ─ The World Bank today approved a US$82.4 million IDA credit to the Indian State of Orissa, designed to improve the lives of some 1.5 million rural poor people by organizing them into vibrant and self-managed institutions of the poor. After stagnating in the 1990s, economic growth in Orissa has accelerated in recent years, including faster growth in the mining, agriculture, and service sectors. Yet Orissa remains one of India’s poorest states with some 17 million of its population living below the poverty line, most of them in rural areas. The Orissa Rural Livelihoods Project seeks to empower poor rural people, especially women and disadvantaged groups, through their inclusion in self-help groups (SHGs). These groups are the primary mechanism for channeling microfinance to the poor in the state. The project will also support creating new SHGs and strengthening existing groups. “Orissa already has a well established network of self-help-groups, widely recognized as one of the most effective mechanisms to reach the poorest of the poor,” said Rachid Benmessaoud, Acting World Bank Country Director for India. “This project builds on what has been achieved so far, and will bring in lessons learned from livelihood projects across India. This includes targeting inclusion of the poorest of the poor and transforming existing self-help-groups into key service providers to the broader rural community.” The project will support the development of a Community Investment Fund, which will transfer grants to Self Help Groups for investments at the household level. This fund will also help these community groups build institutional capacity, leverage additional funds from mainstream financial institutions, and develop new financial products that better address the needs of the poor and their organizations. “One of the key components of this project is to provide job opportunities to the rural youth and unemployed,” said Asmeen Khan, World Bank Senior Rural Development Specialist and Task Leader for the project. “The project will provide training on skills that are in demand in the growing services and industrial sectors in Orissa. It will also train self-help group members to negotiate and bargain in the market to increase their incomes and get better services.” The credit from the International Development Association, the World Bank’s concessionary lending arm, carries a 0.75 service fee, a 10-year grace period, and a maturity of 35 years. For more information on the Bank’s work in India, please visit http://www.worldbank.org.in For more project information, please visit: http://go.worldbank.org/XXYQMOTEN0 # # # |
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