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Contents

Introduction ......................................................................................................................................

Literature Review ..............................................................................................................................

Objectives, Methodology & Importance ..........................................................................................

Project Cycle......................................................................................................................................

Contribution towards India ...............................................................................................................

Country Assisting Strategy (2009-12) ...............................................................................................

Reconstruction & Development Projects .........................................................................................

Conclusion .........................................................................................................................................

Bibliography ......................................................................................................................................

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International Bank for Reconstruction & Development

IntroductionThe International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in

middle-income and creditworthy poorer countries by promoting sustainable development

through loans, guarantees, risk management products, and analytical and advisory services.

Established in 1944 as the original institution of the World Bank Group, IBRD is structured like

a cooperative that is owned and operated for the benefit of its 187 member countries.

IBRD raises most of its funds on the world's financial markets and has become one of the most

established borrowers since issuing its first bond in 1947. The income that IBRD has generated

over the years has allowed it to fund development activities and to ensure its financial strength,

which enables it to borrow at low cost and offer clients good borrowing terms.

At its Annual Meeting in September 2006, the World Bankwith the encouragement of its

shareholder governmentscommitted to make further improvements to the services it provides

its members. To meet the increasingly sophisticated demands ofmiddle-income countries, IBRD

is overhauling financial and risk management products, broadening the provision of free-

standing knowledge services and making it easier for clients to deal with the Bank.

Background

Founded in 1944 to help Europe recover from World War II, the International Bank for

Reconstruction and Development (IBRD) is one of five institutions that make up the World Bank

Group. IBRD is the part of the World Bank (IBRD/IDA) that works with middle-income and

creditworthy poorer countries to promote sustainable, equitable and job-creating growth, reduce

poverty and address issues of regional and global importance.

Structured something like a cooperative, IBRD is owned and operated for the benefit of its 187

member countries. Delivering flexible, timely and tailored financial products, knowledge and

technical services, and strategic advice helps its members achieve results. Through the World

http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/BODEXT/0,,contentMDK:20122865~menuPK:64020025~pagePK:64020054~piPK:64020408~theSitePK:278036,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/0,,contentMDK:20976054~pagePK:41367~piPK:51533~theSitePK:40941,00.htmlhttp://www.worldbankgroup.org/http://www.worldbankgroup.org/http://treasury.worldbank.org/http://treasury.worldbank.org/http://www.worldbankgroup.org/http://www.worldbankgroup.org/http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/0,,contentMDK:20976054~pagePK:41367~piPK:51533~theSitePK:40941,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/BODEXT/0,,contentMDK:20122865~menuPK:64020025~pagePK:64020054~piPK:64020408~theSitePK:278036,00.html

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Bank Treasury, IBRD clients also have access to capital on favorable terms in larger volumes,

with longer maturities, and in a more sustainable manner than world financial markets typically

provide.

Specifically, the IBRD:

supports long-term human and social development needs that private creditors do notfinance;

preserves borrowers' financial strength by providing support in crisis periods, which iswhen poor people are most adversely affected;

uses the leverage of financing to promote key policy and institutional reforms (such assafety net or anticorruption reforms);

creates a favorable investment climate in order to catalyze the provision of privatecapital;

provides financial support (in the form of grants made available from the IBRD's netincome) in areas that are critical to the well-being of poor people in all countries.

Middle-income countries, where 70 percent of the world's poor live, have made profound

improvements in economic management and governance over the past two decades and are

rapidly increasing their demand for the strategic, intellectual and financial resources the WorldBank has to offer. The challenge facing the IBRD is to better manage and deliver its resources to

best meet the needs of these countries.

To increase its impact in middle-income countries, IBRD is working closely with the

International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency

(MIGA), the International Monetary Fund (IMF) and other multilateral development banks. In

the course of its work, IBRD is also striving to capitalize on middle-income countries' own

accumulated knowledge and development experiences and collaborates with foundations, civilsociety partners and donors in the development community.

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Products and services

IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting

sustainable development through loans, guarantees, risk management products, and (non-

lending) analytical and advisory services.

IBRD has three main business lines:

1) Strategy and co-ordination services2) Financial services3) Knowledge services

a. Poverty Assessmentsb. Social and Structural Reviewsc. Public Expenditure Reviewsd. Sector Reportse. Country economic Memorandaf. Knowledge Sharing

At its Annual Meeting in September 2006, the World Bankwith the encouragement of its

shareholder governmentscommitted to make further improvements to these services within a

year. The World Bank originally began a program to upgrade its services for middle-income

countries overhauling financial and risk management products, broadening the provision of

free-standing knowledge services and making it easier for clients to deal with the Bank in

2002. The latest commitment to take further steps was an acknowledgment by the Bank that

more needs to be done to meet the increasingly sophisticated demands of middle-income

countries.

Financing of IBRD

IBRD raises most of its funds on the world's financial markets. It has become one of the most

established borrowers since issuing its first bond in 1947 to finance the reconstruction of Europe

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after World War Two. Investors see IBRD bonds as a safe and profitable place to put their

money and their cash finances projects in middle-income countries.

IBRD became a major player on the international capital markets by developing modern debt

products, opening new markets for debt issuance, and by building up a broad investor base

around the world of pension funds, insurance companies, central banks, and individuals.

The World Bank's borrowing requirements are primarily determined by its lending activities for

development projects. As World Bank lending has changed over time, so has its annual

borrowing program. In 1998 for example, IBRD borrowing peaked at $28 billion with the Asian

financial crisis. It is now projected to borrow between $10 to 15 billion a year.

IBRD borrows at attractive rates on the capital markets thanks to its triple-A status that it has had

with credit rating agencies since 1959. This has enabled it to borrow in U.S. dollars, for example,

at an overall funding cost that comes close to that of the U.S. Treasury. IBRD enjoys its high

credit rating because it is backed by the capital commitments of its 186 shareholder

governments. It is also the result of IBRD's strong balance sheet, prudent financial policies, and

its expected treatment as a preferred creditor when a country has difficulty in repaying its loans.

IBRD has also profited from anticipating shifts in investor preferences and investing in the risk

management and systems to take advantage of those trends.

IBRD has to its credit a string of firsts in its borrowing program. These include the first currency

swap in international markets in 1981, through to the introduction of the first global bond in

1989, to the first fully integrated electronic bond offering via the Internet in 2000. In 2003, the

World Bank executed the first fully electronic swap auction. Innovations by IBRD have also

supported its goal of promoting development. Although much of its borrowing is in U.S. dollars,

IBRD has over the years offered bonds in more than 40 different currencies. Its issues in nascent

capital markets have often been a catalyst for improving market infrastructure and efficiency.

IBRD's earns an income every year from the return on its equity and from the small margin it

makes on lending. This pays for IBRD's operating expenses, goes into reserves to strengthen the

balance sheet and also provides an annual transfer to the International Development Association

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(IDA). IBRD has raised the bulk of the money loaned by the World Bank to alleviate poverty

around the world. This has been done at a relatively low cost to taxpayers, with governments

paying in $11 billion in capital since 1946 to generate more than $400 billion in loans.

Payment of Operating Expenses

IBRD covers its operating expenses primarily out of its income. IBRD's earns an income every

year from the return on its equity and from the small margin it makes on lending. This pays for

IBRD's operating expenses, goes into reserves to strengthen the balance sheet and also provides

an annual transfer to the International Development Association (IDA). IBRD has raised the bulk

of the money loaned by the World Bank to alleviate poverty around the world. This has been

done at a relatively low cost to taxpayers, with governments paying in $11 billion in capital since

1946 to generate more than $400 billion in loans.

Eligibility for IBRD clients

IBRD clients are middle-income and credit-worthy lower income countries. The Bank classifies

a country according to the wealth of its population. Middle-income countries are defined as

having a per capita income of between around US$1,000 and US$10,000, which may qualify

them to borrow from IBRD. Low-income countries with a per capita income of less than $1,000

usually do not qualify for IBRD loans unless they are creditworthy. However, low-income

countries are eligible to receive low or no interest loans and grants from IDA. India, Indonesia

and Pakistan are examples of creditworthy low-income countries which are eligible for a blend

of financial assistance from both IBRD and IDA.

Middle-income countries that are served by IBRD have made enormous economic strides in the

last few years but they still face daunting challenges to reduce poverty to meet the Millennium

Development Goals, which set specific targets to be met by 2015. These countries account for

two-thirds of the world's population and are home to more than 70% of the developing world's

poor people who live on less than $2 a day. . While private capital flows have risen substantially,

this flow has been concentrated in a limited number of countries. Only a minority of middle-

income countries can be regarded as established bond market borrowers able to access the

market regularly at a stable cost. Other countries within the group have only sporadic access or

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none at all. Therefore, the majority of middle-income countries continue to rely on IBRD to

mobilize investments in infrastructure, health, education, clean energy and the environment.

IBRD helps clients gain access to capital and financial risk management tools in larger volumes,

on better terms, at longer maturities, and in a more sustainable manner than they could receive

from other sources. Unlike commercial banks, IBRD is driven by development impact rather

than profit maximization. IBRD has also supported middle-income countries in times of crisis

when their access to capital has dried up.

Demand for IBRD Services

Some middle-income countries no longer see the need for significant financial support from

IBRD, because they have large foreign currency reserves and are in a good budget position.

However, others still have large investment needs that include funds for public infrastructure

projects and social services. Increasingly, IBRD is meeting the more sophisticated demands of its

middle-income clients by providing financial services that protect them against exchange and

interest rate risks and the turbulence of the commodity markets. In fiscal 2007, it carried out $5.4

billion in interest rate and currency risk management transactions on behalf of its members. In

the same period, IBRD committed $12.8 billion for 112 projects. The Bank assists client

countries not only through its finance but also by providing access to its development knowledge

resources. The Bank's knowledge activities range from conducting country research, to

developing analytic and conceptual frameworks for country assistance, to building the capacity

for sustainable development within client countries.

Literature Review

India largest recipient of World Bank loans in 2009-10

India was the World Bank's favourite last fiscal when it came to extending financial aid in the

form of loans, both among developing countries and the world's poorest nations. The World

Bank, through its lending arms IBRD and IDA, committed USD 9.3 billion in financial

assistance to India in the 2009-10 fiscal, more than the aid committed by the US and the

European Union.

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The International Bank for Reconstruction and Development (IBRD) committed USD 6.7

billion, or 15.1 per cent of its total lending in the fiscal, to India, according to government

officials. In comparison, the second highest recipient, Mexico, got USD 6.4 billion. Next in line

were South Africa (USD 3.8 billion), Brazil (USD 3.7 billion) and Turkey (USD 3.0 billion).

IBRD serves middle-income countries with investment and advisory services.

The World Bank's concessionary lending arm, the International Development Association (IDA),

which helps the world's poorest countries, committed 17.7 per cent of its total aid, amounting to

USD 2.6 billion, to India in 2009-10. In contrast, the IDA committed USD 1.4 billion to Vietnam

and USD 0.9 billion each to Tanzania, Ethiopia and Nigeria.

It aims to reduce poverty by providing interest-free credit and grants for programmes that boost

economic growth, reduce inequalities and improve people's living conditions. Even in terms of

actual disbursement, India was the largest recipient of World Bank financial assistance last

fiscal, with a total of USD 4.7 billion -- IBRD (3.4 billion) and IDA (1.3 billion) -- being

released, officials informed. The country was also the largest recipient of assistance from other

external funding agencies like the International Fund for Agricultural Development (IFAD) and

the UK's Department for International Development (DFID).

World Bank, India to sign loan agreement for cleaning Ganga

World Bank, the multilateral lending agency, and the government of India will sign a loan

agreement worth Rs 7,000 crore for the National Ganga River Basin Project (NGRBA) for

cleaning the river on Tuesday. "The Rs 7,000 crore National Ganga River Basin Project

including $199 million interest-free IDA credit and $801 million low-interest IBRD loan from

World Bank, will be signed tomorrow between the government of India and World Bank," an

official statement issued said.

The Project will help the NGRBA set up a state-of-the-art Ganga Knowledge Centre to act as a

repository for the conservation of the Ganga. The NGRBA will fund investments like sewage

treatment plants and sewer networks that are critical for reducing the pollution.

http://economictimes.indiatimes.com/topic/World-Bankhttp://economictimes.indiatimes.com/topic/National-Ganga-River-Basin-Projecthttp://economictimes.indiatimes.com/topic/National-Ganga-River-Basin-Projecthttp://economictimes.indiatimes.com/topic/World-Bank

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Besides, the Project will help strengthen the Central and State Pollution Control Boards for better

monitoring the pollution, by modernising information systems and providing staff training. It

will finance the upgradation of the Ganga water quality monitoring system and carry out an

inventory of all sources of pollution. The Ganga, known as the most sacred river to Hindus, is a

lifeline for millions of Indians who live along its course.

Its sprawling basin accounts for one-fourth of the country's water resources and is home to more

than 400 million Indians - or some one-third of India's population. However, the Ganga has the

dubious distinction of being one of the world's most polluted rivers. The government developed a

comprehensive vision for the cleaning-up and conservation of the Ganga, beginning with the

establishment of the NGRBA in 2009.

Crisis looming, think out-of-the-box: Mukherjee to World Bank

Indian Finance MinisterPranab Mukherjee on Saturday said the World Bankneeds to find ways

to improve its capital base so that it can enhance lending to developing countries, underlining

that with another crisis looming, prioritisation of activities is the need of the hour. At the top of

the World Bank's list of priorities should be to address its lack of financial capacity, as well as

that of the International Finance Corporation, and work toward a strong capital base as well as

find creative ways to expand lending and investment in developing countries, Mukherjee said.

The World Bank's focus needs to be on critical areas such as poverty alleviation, food price

inflation, financing for climate change and meeting the energy needs of the poor, he stressed.

"The International Development Association (IDA) needs to be put on a more sustainable

footing, with donors giving priority to IDA over Trust Funds and also without weakening the

resources of the International Bank for Reconstruction and Development (IBRD) and IFC,"

Mukherjee said in his intervention during the World Bank's Development Committee meeting on

Global Development Issues and the World Development Report 2012 on Gender.

Asking the World Bank to give priority to upliftment of the poor, wherever the poor may be,

without getting diverted by peripheral goals, Mukherjee reiterated the need to address the needs

of middle income countries (MICs), which were the main borrowers from the IBRD. "They

http://economictimes.indiatimes.com/topic/Pranab-Mukherjeehttp://economictimes.indiatimes.com/topic/World-Bankhttp://economictimes.indiatimes.com/topic/International-Development-Associationhttp://economictimes.indiatimes.com/topic/International-Development-Associationhttp://economictimes.indiatimes.com/topic/World-Bankhttp://economictimes.indiatimes.com/topic/Pranab-Mukherjee

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often feel disconnected from many bank activities. Efforts should be made to regenerate interest

in MICs toward the bank, particularly through enhanced financing, more knowledge products

and a focus on the poor in MICs," he said.

Stating that food price inflation needs to be tackled on a priority basis, he said this would require

both short-term measures focusing on immediate food supply and safety nets and long-term

measures to enhance agricultural productivity and output. "The bank will have to make

substantial investment in this regard," he said. Mukherjee also evinced a need to generate

additional and new finance for climate change, along with measures to encourage transfer of

technology to developing countries.

"Meeting the energy access needs of the poor is going to be a severe test for the bank. While

climate concerns are legitimate, providing access to energy for the poor is a priority far more

important than sustaining energy intensive lifestyles," he said.

NHAI gets Rs. 202.5 Cr loan nod

The World Bank has approved a $45 million (Rs 202.5 crore) technical assistance loan for the

National Highways Authority of India (NHAI) to help improve its operational efficiency. The

assistance will finance actions to strengthen the institutional capacity of NHAI to efficiently

manage and operate its growing programme. The loan from the International Bank for

Reconstruction and Development (IBRD), has a five-year grace period.

Forty per cent of the total road traffic in India plies on the National Highway (NH) network and

this share is likely to increase with vehicle growth touching 10 per cent per annum in recent

years. About 30 per cent of the total NH network is still single-laned, 53 per cent double-laned

and only 17 per cent four/six/eight-laned. It had been recognised that the condition of the NH

network could pose a key constraint to sustaining high levels of growth.

Loan for Tamil Nadu roads

The World Bank has sanctioned a $50.7 million loan to India for upgrading roads in Tamil Nadu.

The loan will be used to upgrade 1,380 km of roads and for two laning of 720 km road in the

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states core network. This funding is additional financing to the Tamil Nadu Road Sector Project,

which became effective on 31 October 2003, with a loan amount of $348 million.

The additional loan from the International Bank for Reconstruction and Development (IBRD)

has a 25-year maturity including a five-year grace period. Till date, the project has improved

around 850 km of roads and upgraded 570 km of existing state highways to two lane roads. The

additional financing will help meet a cost overrun, primarily caused by an increase in the prices

of construction materials and an appreciation of the Indian rupee vis-a-vis the dollar.

Centre signs pact for SUTP

Centre has signed an agreement with the World Bank for WB-assisted Sustainable Urban

Transport Project (SUTP). The SUTP has a loan component of about Rs 489.98 crore from

International Bank for Reconstruction and Development (IBRD) and a grant of about Rs 94.39

crore from Global Environment Facility (GEF).

The project is likely to be implemented at Pune and Pimpri-Chinchwad in Maharashtra, Indore in

Madhya Pradesh, Naya Raipur in Chhattisgarh and Mysore in Karnataka. The projects will be

executed over a period of five years. The SUTP aims at promoting environmentally sustainable

transport.

Wb to fund AP Projects

The World Bank has signed an agreement with the Andhra Pradesh government to extend

financial assistance entailing $770 million for execution of three projects in the state. The $320

million Andhra Pradesh Road Sector Project will upgrade about 429 km of priority state

highways and finance long-term maintenance of over 6,000 km of the states core road network.

The $300 million Andhra Pradesh Municipal Development Project will be selected and

implemented by urban local bodies. Lastly, the $150 million Andhra Pradesh Rural Water

Supply and Sanitation Project is designed to improve water supply and sanitation services in

2,600 villages across six districts of the state.

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The loan for the Andhra Pradesh Road Sector Project is from the International Bank for

Reconstruction and Development (IBRD) and has a maturity of 30 years, including a grace

period of 5.5 years. The IBRD loan for Andhra Pradesh Municipal Development Project has a

28.5-year maturity period including grace period of 6.5 years. The credit from the International

Development Association (IDA), the World Banks concessionary lending arm, for the Andhra

Pradesh Rural Water Supply and Sanitation Project, carries a 0.75 per cent service fee, a maturity

of 35 years and a 10-year grace period.

India can reduce poverty within a decade: IBRD World Bank

If the Indian economy maintains its present growth and income distribution levels, the countrys

incidence of poverty could plummet from the current rate of about 35 per cent to just 6.3 per cent

of its population by the year 2005, says the World Bank. This would be a tremendous

achievement for a country which is home to the largest concentration of poor in the world, says

the Bank. In a new report entitled India: Achievements and Challenges in Reducing Poverty, the

Bank noted that Indias economy had grown by an average of six seven per cent over the past

three years.India has made substantial gains against widespread deprivation over its last 50 years,

said senior World Bank economist Zoubida Allaoua, the principal author of the report.

The Bank recommends that the Indian government push for more growth, invest more capital ininfrastructure such as roads, public transport, irrigation and flood protection measures, and

mobilise more resources for public health and education. There has been a marked but slow

decline in poverty since India became independent in 1947. At that time nearly half its

population was living below the poverty line, the report says. Today, 50 years later, roughly a

third of Indias people are poor.

However, because of rapid population growth, Indias modest success in fighting poverty has

been unable to reduce the overall numbers of poor. according to the report, in 1951, 164 million

Indians were living in poverty, compared with 312 million in 1993-94. However, India has not

yet achieved the momentum to lift the great majority of its poor into the countrys economic

mainstream, the Bank noted. For example, its infant mortality rates are one of the highest in the

world.

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A third of Indias 105 million 6-10 year olds are out of school. For India, the lessons for the

future are clear: promote growth and invest much more money in making people healthier and

better educated, and spend more on the physical infrastructure which underpins a countrys

growth at the local and national level, the report asserted. It argued that widespread poverty and

inequality would continue to act as a brake on the even distribution of regional prosperity and

that national development cannot be assured when so many people live without the basic

amenities of life, and lack the means to better themselves. In another report released

simultaneously and titled Everyones Miracle? Revisiting Poverty and Inequality in East Asia, the

Bank pointed out that there are 900 million poor in Asia from India to Mongolia. Though

poverty has reduced in most of these countries, Indias has been the slowest compared to South-

east Asian nations.

But while poverty has fallen dramatically in East Asia (down 27 per cent from 1975-85, and a

further 35 per cent from 1985-95), the decline has been much slower in India. Weve come a long

way since 40 years ago when most Asians lived in deep poverty, with desperately low incomes,

short life expectancy and limited to access to education, said Mr. Gautam Kaji, World Bank

Managing Director for Operations. Growth had lifted millions out of poverty, he pointed out. For

example, in 1975, six out of 10 East Asians lived in poverty, now only two out of 10 do. In

countries such as China, Indonesia, Malaysia and the Philippines, where poverty reduction has

been more successful, the World Bank says there is apprehension that too few are benefiting

from rising national prosperity. After three decades in which rapid growth and reduced inequality

were the hallmark of the East Asian economic miracle, inequality is becoming more widespread,

the Bank warned.

Reforms have reduced poverty: IBRD Bank

A World Bank report released at the India Development Forum (IDF) meet in Paris says

economic liberalisation has done more to reduce poverty in India than government development

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programmes. The report, titled India: Achievements and Challenges in Reducing Poverty, notes

that some of the government programmes have in fact largely missed their supposed targets the

poor and delivered the bulk of their benefits or subsidies to the politically or economically more

advantaged. On the other hand, economic growth in India has widened opportunities at the

bottom as well as near the top of the society, the Bank says, adding that this has raised the wages

of landless rural workers since liberalization.

Overall, the reforms India started in 1991 hold the promise of considerable improvements in the

living standards of the countrys 300 million poor, the Bank says. Inward looking

industrialization strategies of the past could not achieve the rate of poverty alleviation possible

with alternative policies, says the report. While praising the high growth rates in the past five

years resulting from liberalization, the Bank cautions that much remains to be done to sustain

this growth. High fiscal deficits, tremendous infrastructure problems, inefficient financial

systems and heavily subsidized sectors like agriculture are problems facing the Indian

government, it says.

Over the past 50 years, there have been many achievements to Indias credit, but the pace (of

poverty alleviation efforts) remains both slow and uneven ... and more likely to empower men

than women, says the report. It adds that poverty reduction was far more responsive to overall

growth of the economy than to various government efforts to direct resources to reduce poverty.

The new surges of growth brought on by liberalisation should spur the government to re-examine

rural poverty more than three-fourths of the total and extend the reforms to unleash productivity

growth in agriculture which historically has contributed most to poverty reduction, says the

report.

Involving the private sector and non-governmental organizations in poverty eradication is

critical, as is the need for high quality data, it adds. While some of Indias Asian neighbors have

made a point of combining growth-oriented development with investments in health and

education, India has not given the education of the poor the kind of priority it deserves. Some 33

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million of the 105 million children aged between six and 10 years are out of school and working

in low-wage jobs with little chance of improving their lot, points out the report.

Modified state intervention essential for growth India must accelerate pace of reforms. Neglect

of primary education has gone hand-in-hand with gender discrimination, and bridging this gap

among the poor needs special efforts. A determined public policy action to eradicate gender

discrimination is necessary, asserts the report. It is important that the poverty reduction strategy

should strike a balance between investments that give significant dividends and subsidies that

actually benefit better-off sections of the population and distort markets, says the Bank.

Objectives

We have following precise objectives of study

1. To study IBRDs project cycle.2. To study IBRDs contribution towards India.3. To study the Country Assistance Strategy (CAS) of IBRD with special reference to India.4. To study the IBRDs role towards various state in the India.5. To study the Reconstruction & Development activities undertaken by IBRD in India.To fulfill the above objectives, we have pursued the following methodology.

Methodology

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The methodology adopted would be exploratory research using secondary data. The basic

knowledge about the workings of World Bank will be gathered thorough secondary data

available on internet and all related documents such as books, magazines, and publications

available in the institute library. The quantum of information available on this subject matter is

enormous and updated. The secondary sources such as internet and news articles cover almost all

major information.

Importance

IBRD is actively involved in providing assistance to poor and developing nations in various

ways since its inception. Although the pattern of IBRDs work has changed over years with the

global scenario, its objectives have more or less remained same, i.e. to help poor and developing

nations to develop.

As India is emerging as fast developing economy, it needs to enhance its infrastructure to further

pace up the development process to remain competent in this era of globalization. Indias main

focus in this regard is towards Urban Development. IBRD is providing assistance to Indian for

successful implementation of development strategies under its special initiative Country

Assistance Strategy (CAS). Therefore we have decided to study IBRDs Country Assistance

Strategy (CAS) in context of India, with special emphasis of Urban Development in India.

IBRD has continuously contributed to Indias various reconstruction and development

projects along with IDA undertaken by World Bank. These projects work as a strong

catalyst in the path towards developed India. It seems important to throw some highlight on

current projects which are approved and in active stage for India. As a result, some recent

projects are included for discussion in report.

Project Cycle

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The Banks method of operation is not to implement World Bank projects, but to provide

financing and advice for projects which are owned and supported by the Indian government and

the people and form part of their overall development agenda. It is important to note that the

implementation of projects is managed by the government.

The government designates an office, referred to as the Project Implementing Agency (PIU),

which is responsible for aspects such as procurement and selection of consultants and day-to-day

work, monitoring, and evaluation. The Banks operational policies set guidelines to ensure that

projects meet its own criteria such as social and environmental standards.

Country Strategy and Project Identification

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IBRD works with a borrowing country's government and other stakeholders to determine how

financial and other assistance can be designed to have the largest impact. After analytical work is

conducted, the borrower and the Bank produce strategies and priorities for reducing poverty and

improving living standards.

Identified projects can range across the economic and social spectrum from infrastructure, to

education, to health, to government financial management. IBRD and the government agree on

an initial project concept and its beneficiaries, and the Bank's project team outlines the basic

elements in a Project Concept Note. This document identifies proposed objectives, imminent

risks, alternative scenarios, and a likely timetable for the project approval process. Two other

Bank documents are generated during this phase. The Project Information Document contains

useful public resources for tailoring bidding documents to the proposed project, and the publicly

available Integrated Safeguards Data Sheet identifies key issues related to the Bank's safeguard

policies for environmental and social issues.

Project Preparation

The borrower government and its implementing agency or agencies are responsible for the

project preparation phase, which can take several years to conduct feasibility studies and prepare

engineering and technical designs, to name only a few of the work products required. The

government contracts with consultants and other public sector companies for goods, works and

services, if necessary, not only during this phase but also later in the project's implementation

phase. Beneficiaries and stakeholders are also consulted now to obtain their feedback and enlist

their support for the project. Due to the amount of time, effort and resources involved, the full

commitment of the government to the project is vital.

IBRD generally takes an advisory role and offers analysis and advice when requested, during this

phase. However, the Bank does assess the relevant capacity of the implementing agencies at this

point, in order to reach agreement with the borrower about arrangements for overall project

management, such as the systems required for financial management, procurement, reporting,

and monitoring and evaluation.

Earlier screening by Bank staff may have determined that a proposed project could have

environmental or social impacts that are included under the IBRD's Safeguard Policies. If

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necessary, the borrower now prepares an Environmental Assessment Report that analyzes the

planned project's likely environmental impact and describes steps to mitigate possible harm. In

the event of major environmental issues in a country, the borrower's Environmental Action Plan

describes the problems, identifies the main causes, and formulates policies and concrete actions

to deal with them. From a social point of view, various studies aimed at analyzing a project's

potentially adverse effects on the health, productive resources, economies, and cultures of

indigenous peoples may be undertaken. An Indigenous Peoples Plan identifies the borrower's

planned interventions in indigenous areas that may be needed, with the objective of avoiding or

lessening potential negative impacts on the people. These plans are integrated into the design of

the project.

Project Appraisal

Appraisal gives stakeholders an opportunity to review the project design in detail and resolve any

outstanding questions. The government and IBRD review the work done during the identification

and preparation phases and confirm the expected project outcomes, intended beneficiaries and

evaluation tools for monitoring progress. Agreement is reached on the viability of all aspects of

the project at this time. The Bank team confirms that all aspects of the project are consistent with

all IBRD operations requirements and that the government has institutional arrangements in

place to implement the project efficiently. All parties agree on a project timetable and on public

disclosure of key documents and identify any unfinished business required for final Bank

approval. The final steps are assessment of the project's readiness for implementation and

agreement on conditions for effectiveness (agreed upon actions prior to implementation). The

Project Information Document is updated and released when the project is approved for funding.

Project Appraisal Documents Program Documents

Project Approval

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Once all project details are negotiated and accepted by the government and the World Bank, the

project team prepares the Project Appraisal Document (for investment lending) or the Program

Document (for development policy lending), along with other financial and legal documents, for

submission to the Bank's Board of Executive Directors for consideration and approval. When

funding approval is obtained, conditions for effectiveness are met, and the legal documents are

accepted and signed, the implementation phase begins.

Project Implementation

The borrower government implements the development project with funds from IBRD. With

technical assistance and support from the Bank's team, the implementing government agency

prepares the specifications for the project and carries out all procurement of goods, works and

services needed, as well as any environmental and social impact mitigation set out in agreed

upon plans. Financial management and procurement specialists on the Bank's project team

ensure that adequate fiduciary controls on the use of project funds are in place. All components

at this phase are ready, but project delays and unexpected events can sometimes prompt the

restructuring of project objectives.

Once underway, the implementing government agency reports regularly on project activities.

The government and the Bank also join forces and prepare a mid-term review of project

progress. In addition, the IBRD's Report on the Status of Projects in Execution, a brief summary

of all Bank-funded projects active at the end of each fiscal year, is available to the public. As

projects close during the fiscal year, they are removed from this report, since their individual

Implementation Completion and Results Reports are publicly disclosed at that time.

The project's progress, outcomes and impact on beneficiaries are monitored by the government

and the Bank throughout the implementation phase to obtain data to evaluate and measure the

ultimate effectiveness of the operation and the project in terms of results.

Project Completion

When a project is completed and closed at the end of the loan disbursement period, a process that

can take anywhere from 1-10 years, IBRD and the borrower government document the results

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achieved; the problems encountered; the lessons learned; and the knowledge gained from

carrying out the project. IBRD operations team compiles this information and data in an

Implementation Completion and Results Report, using input from the implementing government

agency, co-financiers, and other partners/stakeholders. The report describes and evaluates final

project outcomes. The final outcomes are then compared to expected results. The information

gained during this exercise is also often used to determine what additional government measures

and capacity improvements are needed to sustain the benefits derived from the project. In

addition, the evaluation team assesses how well the entire operation complied with the Bank's

operations policies and accounts for the use of Bank resources. The knowledge gained from this

results measurement process is intended to benefit similar projects in the future.

Evaluation

The Bank's Independent Evaluation Group assesses the performance of roughly one project out

of four (about 70 projects a year), measuring outcomes against the original objectives,

sustainability of results and institutional development impact. From time to time, IEG also

produces Impact Evaluation Reports to assess the economic worth of projects and the long-term

effects on people and the environment against an explicit counter-factual.

Project Investment

Nearly 51% of the total Bank lending to India is by IBRD loans. This includes various

developmental projects like Nathpa Jhakri Project, National Dairy Project and Upper Krishna

Irrigation. India had 450 projects of which around half were carried out by IBRD. Its assistance

has been extended to the Railways, Power, Fertilizer and Telecommunication sector.

Satluj Jal Vidyut Nigam (formerly Nathpa Jhakri Power Corporation Ltd) has run up all six

250MW units of the Nathpa Jhakri Hydroelectric Power project. Four of the units have already

been commissioned, and the last two (Units #1 and 2) began working in March 2004, four

months ahead of schedule.

As a whole, Nathpa Jhakri boasts the largest and longest headrace tunnel, largest desilting

chambers, deepest and largest surge shaft, and the largest underground power complex. The

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project has added 1,500MW capacity to the Indian Northern Grid since the the first unit was

commissioned in October 2003. The Union power ministry is reportedly treating this as a

benchmark for future hydroelectric projects.

The Nathpa Jhakri project, which began in 1993, is for a 1,530MW installation on the upper

reaches of the river Satluj in the Kinnaur and Shimla districts of Himachal Pradesh, in the

foothills of the Himalayas.

The project includes a 60.5m-high dam and underground desilting complex and a 27MW Francis

unit. It supplies Himachal Pradesh and the Northern Regional Grid States in India. A high-

voltage transmission system (220kV) transports power from the Nathpa Jhakri hydro station to

Haryana's grid system.

Apart from its various projects mentioned above IBRD recently invested in development of

transportation facility in India. Its investment were as below.

IBRD - $350 million: Lower freight and passenger transport costs will reduce transport

bottlenecks affecting economic development and will benefit the traveling public, agricultural

and industrial producers, consumers, and local communities in Andhra Pradesh. Total cost:

$485.5 million.

IBRD - $51.5 million: Technical assistance will be provided to state governments to support road

infrastructure finance and maintenance reform. Total cost: $68 million.

IBRD - $50 million: Assets lost in the floods and cyclones in Andhra Pradesh last year will be

restored and actions will be taken to reduce future hazards. Total cost: $220 million.

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Contribution towards India

With a population ofjust over 1 billion, India is the worlds largest democracy. In the past

decade, the country has witnessed accelerated economic growth, emerged as a global player with

the worlds fourth largest economy in purchasing power parity terms, and made progress on most

of the Millennium Development Goals.However, poverty remains a major challenge. According

to the revised official poverty line, 37.2% of the population (about 410 million people) remains

poor, making India home to one third of the worlds poor people. Resources generated from

recent growth are now being invested into a set of very ambitious programs to deliver services to

the poor. These programs -- to provide elementary education, basic health care, health insurance,

rural roads and rural connectivity, and other services -- aim at realizing the fundamental rights of

the people.These programs are achieving partial results on the ground. Between 2003 and 2009,

the number of out-of-school children declined from 25 million to 8 million (less than 5% of the

6-14 age groups). Leprosy, polio, and TB are almost under control and the spread of AIDS has

been kept in check. Large numbers of women have been mobilized into self-help groups to

generate new livelihood opportunities. Massive new initiatives are being pioneered that are

revolutionizing the way services are being delivered to low-income groups.

The urgency of addressing Indias development challenges has been exacerbated by the global

economic crisis of 2007/09. Although Indias economy grew at 6.1% in the last quarter of 2009,

which was among the highest growth rates in the world, this still represents a significant dip

from the peak of 9.7% growth in fiscal year 2006/07. With a mix of monetary and fiscal tools,

the Government responded fairly quickly to the financial crisis, and was successful in shielding

the country from the fallout felt throughout the world. Nevertheless, although the Mid-Term

Appraisal of the Eleventh Five-Year Plan (2007-2012) shows Indias economy to have

rebounded, there are indications that economic uncertainty may affect the remainder of the

Eleventh Plan period. It is now clear that a number of targets will only be met under the next

Plan.

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To support India in achieving its long-term vision of a country free of poverty and exclusion, the

IBRDs Country Strategy for India for FY 2009-2012 (CAS) is closely aligned with the

objectives outlined in the country's Eleventh Plan.

IBRD lending to India has diverged from initial plans spelt out in the Country Strategy due to the

impact of the global financial crisis, the IBRDs efforts to refocus, realign and consolidate the

India program, and the increased demand from the Government for more financing.

In FY10, the IBRD lent a record $9.2 billion to India, compared to $2.3 billion in FY09.

Fourteen new projects were added in FY10, and the project pipeline has grown in light of

increased demand from the Government of India. The average size of requested projects has

increased. And, the volume of Bank lending has shifted further towards infrastructure, the

delivery of essential social services, and increasing engagement on urban issues and agriculture.

IBRD lending to India is organized around the following key challenges:

1. Achieving Rapid and Inclusive GrowthIndias integration into the global economy has been accompanied by impressive economic

growth that has brought significant economic and social benefits to the country. Nevertheless,

disparities in income and human development are on the rise. A large section of the population -

especially the poor, Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities

and women - lack access to the resources and opportunities needed to reap the benefits of

economic growth. To assist the government in achieving rapid inclusive growth, IBRD is

supporting activities which address both cyclical and structural impediments to growth, as well

as the constraints to making growth inclusive:

Building Strong Partnerships with Low-Income States

While Indias higher-income states have successfully reduced poverty to levels comparable with

the richer Latin American countries, its seven poorest states - Bihar, Chhattisgarh, Jharkhand,

Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh -lag behind their more prosperous

counterparts and are home to more than half of Indias poor. IBRD is increasing support to kick-

start development in these low-income states by helping them to develop into attractive

investment destinations, and raise the standards of living of their people by improving the

delivery of public services.

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In Bihar, the IBRD is supporting critical structural reforms (recently closed BiharDevelopment

Policy Loan I), infrastructure development, and the building of rural livelihoods (Bihar Rural

Livelihoods Project). It is helping the state recover from the devastating 2008 Kosi river floods

(Bihar Kosi Flood Recovery Project, $220 million), and supporting the development of a

comprehensive disaster management program. A grant for Flood Management Information

System is helping to reduce the states vulnerability to floods. Several Bank-supported national

programssuch as the Sarva Shiksha Abhiyan and the National Highways program - also assist

Bihar.

Orissa, until the turn of the millennium, was among the poorest and the most highly indebted

states in the country. Today, it is recognized as a state in transition. IBRD has supported the state

for over a decade. Two IBRD Development Policy Loans/credits have supported the states ownefforts at structural reform in public financial management, investment climate, governance and

accountability. A third Development Policy Loan will focus on inclusion and service delivery,

where critical challenges remain. The Bank is also supporting investments in the state in core

areas of infrastructure development (Orissa State Roads Project) and poverty reduction (Orissa

Rural Livelihoods Project; Community Tanks Management Project).

Agricultural and Rural Development

In the last two years, the agriculture sector has grown at only about 2.5-3% on account of lower

rainfall and the worst drought since 2002/03. Going forward, it will be essential for India to build

a productive, competitive, and diversified agricultural sector and facilitate rural, non-farm

entrepreneurship and employment. Encouraging policies that promote competition in agricultural

marketing will ensure that farmers receive better prices. IBRD is supporting the sector through

the following initiatives:

Raising agri cultur al productivity:In a number of states including Andhra Pradesh, Karnataka,

Kerala, Madhya Pradeh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, and Uttar Pradesh, IBRD

is improving soil and water conservation on degraded lands, rehabilitating and modernizing

surface irrigation systems and reviving traditional rain water harvesting systems, and assisting

farmers to diversify crops and reclaim saline lands. The Bank is also working to raise agricultural

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productivity by linking public research organizations and farmers to promote the use of

agricultural innovations.

Improving rural li veli hoods:IBRD's rural livelihoods projects (in Andhra Pradesh, Bihar,

Chattisgarh, Karnataka, Madhya Pradesh, Orissa, Rajasthan, and Tamil Nadu) support the

empowerment of the rural poor and the development of livelihoods in both the agriculture and

non-agriculture sectors.

Providing technical assistance to the Government of I ndia to reform and improve its

agricultu re insurance program: Given that agriculture remains highly dependent on the vagaries

of nature, this support is helping to improve the agriculture insurance program, providing better

risk mitigation and social protection options to the 110 million farmer households in the country,

most of whom are small and marginal farmers.

Infrastructure

Indias rapidly growing economy has been placing huge demands on power supply, roads,

railways, ports, transportation systems, and water supply and sanitation. But, bottlenecks in both

urban and rural infrastructure have been eroding the countrys competitiveness.

The Government of India has increased infrastructure investments under the Eleventh Five Year

Plan. However, with India's low taxation baseonly some 15-16% of GDP is collected as taxesin India compared to 25-40% in developed countries - the country is unable to invest the required

amounts through its budgetary resources. As such, IBRD support to improving Indias

infrastructure is critical, and the Bank's country strategy advocates greater investments in

infrastructure as a priority to attract investment and generate employment. IBRD support to the

sector includes:

Improving Infrastructure: The Government is encouraging private participation in the

expansion of critical infrastructure. To support this, the World Bank, in September 2009, agreed

to extend $1.195 billion to the India Infrastructure Finance Company Limited (IIFCL) to help

finance public-private partnerships in infrastructure, especially in the roads, power and ports

sectors.

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Transport: IBRD has supported the states of Gujarat and Andhra Pradesh to upgrade their state

highways. It is now helping to upgrade rail and road connectivity in Mumbai; improve state

highways in Andhra Pradesh, Himachal Pradesh, Kerala, Mizoram, Orissa, Punjab, Tamil Nadu

and Uttar Pradesh; construct a section of the Golden Quadrilateral in Uttar Pradesh and Bihar;

and upgrade rural roads in select districts of Himachal Pradesh, Rajasthan, Jharkhand and Uttar

Pradesh. The Bank is also supporting the improvement of urban transport in the cities of Pune

and Pimpri-Chinchwad in Maharastra, Indore in Madhya Pradesh, Mysore in Karnataka and

Naya Raipur in Chattisgarh. Finally, the Bank is planning to support the improvement of narrow

national highways through the National Highway Interconnectivity Improvement Program. It

also proposes to support the Eastern Dedicated Railway Freight Corridor which aims to increase

the railways share of the freight market, thus reducing transport costs, as well as fuel

consumption which could directly contribute to a reduction in carbon emissions.

Energy: The Government of India is increasingly tapping its vast hydropower resources. It has

set the target for an optimum power mix at 40% from hydropower and 60% from other

sources. In the past, IBRD has supported India in building its largest hydropower plant at Nathpa

Jhakri in Himachal Pradesh and is now helping the country augment the supply of hydropower.

Support for the 412 MW run-of-the-river Rampur Hydropowerplant on the Satluj River in

Himachal Pradesh is ongoing. Two other hydropower projects are in the pipeline; a 444 MW

project on the Alakananda river in Chamoli district in Uttarakhand, and the other at Luhri,

further downstream from Rampur in Himachal Pradesh. The Bank is also supporting the efficient

transmission and distribution of power to consumers. It has helped Powergrid, the national power

transmission agency, to emerge as a world class agency. In September 2009, IBRD extended a

loan of $1 billion to Powergrid to strengthen and expand five transmission systems in the

northern, western and southern regions of the country. At the state level, improvements in

transmission and distribution are being supported in Haryana and Maharashtra.

Urban Development: In the next 20-25 years, Indias urbanization level is expected to rise from

the present 30% to 40- 50%, with over 60 cities of 1 million plus population contributing about

70% of Indias GDP. Yet, Indias growing cities and towns face major challenges in creating

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NDIAEXTN/0,,contentMDK:21529165~pagePK:141137~piPK:141127~theSitePK:295584,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPTRANSPORT/0,,contentMDK:20693376~menuPK:579628~pagePK:34004173~piPK:34003707~theSitePK:579598,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPTRANSPORT/0,,contentMDK:20693376~menuPK:579628~pagePK:34004173~piPK:34003707~theSitePK:579598,00.html

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adequate infrastructure including in the transportation, water, solid waste, and power sectors.

IBRD is helping streamline urban transport in Mumbai and improve the delivery of urban civic

services in Andhra Pradesh, Tamil Nadu, and Karnataka. The Bank has also sought to bring in

global best practices in the urban water sector. A successful pilot has helped to provide

continuous, reliable water supply in three urban areas in Karnataka. Going forward, it will be

essential for India to introduce policy and institutional reforms in land use planning, municipal

finance, institutional models, and invest in infrastructure and service delivery to manage its cities

efficiently. While state governments have the more critical role in transforming Indias cities, the

Government of Indias support through national programs is significant. IBRD support for the

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is under preparation.

Financial Sector Development and Support to Small and Medium Enterprises:

Longer-term local currency financing, which could fund large scale infrastructure projects, is in

short supply in India. Moreover, poorer households and small and medium enterprises (SMEs)

have limited access to banking services, while insurance and equity market penetration in rural

areas remains very low.

In September 2009 IBRD agreed to extend budgetary support of $2 billion to the Government of

India in support of its economic stimulus measures to counter the effects of the global financial

crisis. This included the injection of capital into some public sector banks to help ensure the

expansion of good credit to the SME sector, as well as for the development of infrastructure and

the rural economy. The Bank also continues to fund the implementation of the Government of

Indias financial sector reform program, support rural credit cooperatives - which are crucial for

channeling agricultural credit to farmers, and provide technical assistance for improving the

Government's agricultural insurance program, including weather-indexed insurance for farmers.

It is also supporting SIDBI in scaling up sustainable and responsible microfinance to the under-

served areas of the country.

2. Ensuring Development is Sustainable

Indias remarkable economic growth has been clouded by a degrading environment. The country

is also very vulnerable to climate change on account of its high levels of population density,

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poverty, stressed ecological systems, and a substantial dependence on natural resources of much

of Indias population. The following areas will thus require long-term vision and urgent action:

Protecting Indias fragile environment - air, water, forests and bio-diversity - in the faceof the rising pressures created by economic success

Adapting to climate change and the growing scarcity of water Coping with accelerating urbanization through strengthened urban governance and

environmental management

Improving energy efficiency and ensuring adequate energy suppliesIBRD is in the process of articulating a vision for an environmentally sustainable future for India

(India 2030), and has projects in the pipeline to support the National Ganga River Basin

Authority and industrial pollution management. Support to the sector includes:

Water: Climate change could impact India more than most other countries, and its impact will

most likely be felt first and foremost in the water sector. IBRD has therefore piloted a new

Drought Adaptation Initiative in Andhra Pradesh that will help farmers adapt to warmer and

more drought-like conditions. An Integrated Coastal Zone Management Project that seeks to

protect India's coastal areas while also ensuring the livelihoods of the people living along the

coastline is in the pipeline. The Bank has also completed studies on groundwater resources and

low carbon growth.

Energy: IBRD is supporting India in its efforts to produce clean, efficient, and renewable

energy. It is helping the country to tap the hydropower resources in the Himalayan region, as

well as supporting the rehabilitation of old and inefficient coal-fired power plants in West

Bengal, Maharashtra, and Haryana. The Bank is also helping to strengthen Powergrid's power

transmission networks to ensure that the power produced reaches consumers efficiently and

losses in transmission are reduced. It is also seeking to expand support for promoting energy

efficiency in various sectors ranging from small and medium enterprise, to chillers.

3. Increasing the Effectiveness of Service Delivery

Most public programs suffer from varying degrees of ineffectiveness, poor targeting, and

wastage of resources. In the current economic climate, India will have to dramatically improve

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the impact of every rupee spent. IBRD is working with the Government of India to improve the

delivery of key public services through systemic governance and institutional reforms of public

sector service providers, decentralization of responsibilities, promoting effective systems of

transparency and accountability, effective monitoring of service delivery, and expanding the role

of non-state service providers.

Elementary Education: Since 2001, India has brought some 20 million children into school

under the worlds largest elementary education program the Sarva Shiksha Abhiyan (SSA).

Many of Indias states are now approaching universal primary enrollment or have already

achieved it. Since 2003 IBRD support has helped scale up the program, improve the quality of

learning, and assess learning outcomes. IBRD evaluations and research have provided

recommendations for improvements. The program is now focused on bringing the hardest-to-

reach children into primary school, raising access to upper primary education, and improving

retention and learning outcomes.

Secondary Education: With improved enrolment and retention in elementary school, the need

for universalizing secondary education as a means to break the cycle of poverty has gained

importance. The IBRD is preparing to support the Government of Indias new centrally

sponsored scheme for secondary education, the Rashtriya Madhyamik Shiksha Abhiyan

(RMSA), with an estimated $650 million. This support is largely based on its analysis of

secondary education published in 2009 (Vol 1; & Vol 2 )

Skills: Equally important is the building of skills among Indias rapidly rising work force, whose

ranks are joined by some 8-9 million new entrants each year. Presently, nearly 44 % ofIndias

labour force is illiterate and only 17 % has secondary schooling. Moreover, the quality of most

graduates is poor and employers offer very little upgrading of skills; only 16% of Indian

manufacturers offer in-service training compared to over 90% in China. To help produce

engineers of international standards, IBRD has supported improvements in the quality of

education in engineering institutes in 13 states. It is also supporting 400 Industrial Training

Institutes (ITIs) to become centers of excellence in technical skills that are in demand. Much of

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this support is based on research conducted by the World Bank on improving the vocational

education and training system for skill development in India.

Health: The health sector in India presents a mixed picture. Despite continuous improvements in

health indicators, progress is slow and has not matched the impressive gains in economic growth

during the past decade. Inadequate access to effective and good quality health services for a large

proportion of the population largely accounts for the slow improvement in health outcomes. To

help India achieve the MDGs for health, IBRD increasingly focuses on improving governance

and accountability in the delivery of health services. Ongoing IBRD projects support national

programs for disease control - such as kala azar, polio and malaria, HIV/AIDS, and TB. They

also support child nutrition and reproductive and child health programs. Other projects are

working to strengthen state-level systems for rural healthcare (Rajasthan, Tamil Nadu,

Karnataka), as well as national programs for food and drug regulation, and disease surveillance.

The Bank has previously successfully supported India in eliminating leprosy as a national health

problem, and in bringing the WHO- recommended DOTS TB treatment to all districts in the

country.

Safety Nets: The global economic crisis has lent new urgency to strengthening safety nets for

the poor and vulnerable. IBRD is in the process of extending support to the Government of India

for the Rastriya Swasthya Bima Yojana - or National Health Insurance Scheme - to expand and

improve the effectiveness of he