April, 2008 1

India Country Strategy(FY09-12)

Isabel M. GuerreroConsultations with Civil Society OrganizationsApril 2008

April, 2008 2

Our current Country Strategy covered 2004-08

Looking ahead to the next Country Strategy Will cover 2009-FY12 Finalize Dec. 2008 Joint with IFC

Why a new strategy?

April, 2008 3

Consultation process Main thrusts of the new strategy

Three key themes Diversified approach Principles on how we work

Agenda

April, 2008 4

WHERE ARE WE IN THE PROCESS? Consultations with civil society

organizations in New Delhi in August-Sept. 2007

Meetings with staff and partners in Delhi and Washington over January-April

Consultations with CSOs in the states: April-May

Drafting: April-May Finalization: Sept.-December

Consultation Process

April, 2008 5

Three themes have emerged from consultations, in line with XIth Plan:

Inclusive growth Government effectiveness Responsible growth

Some principles on how we should work have also emerged: Be more strategic & selective Do fewer things better Focus on better design and

implementation

Main thrusts of the new CAS

April, 2008 6

Theme 1: INCLUSIVE GROWTH India is growing fast, but:

Future growth is constrained by infrastructure and skills bottlenecks

Progress in income poverty and other human development indicators is not as fast

Without sharing the benefits of growth more widely, social tensions may increase

Hence, we want to help the government achieve inclusive growth equity is a goal in itself equity helps achieve faster growth

Key themes of the new CAS

April, 2008 7

Theme 2: GOVERNMENT EFFECTIVENESS Entrenched bureaucracies and cultural attitudes

generate inefficient services Rent seeking prevalent and wide-spread

Numerous approval layers remain in placeIllegal connections common in water and power Absenteeism in public service is high

Low expectations are common No Indian city has achieved 24x7 pressurization of its

distribution system (required for bacteriological safety)

Waste treatment receives low priority Urban services are poorly managed Education and health service expenditures are large

but organizational performance is low

Key themes of the new CAS

April, 2008 8

Theme 3: RESPONSIBLE GROWTH Much of India’s population is vulnerable to natural shocks,

given … High levels of population density and poverty Stressed ecological systems

Water resources major issue for future Flooding and droughts affecting the poor Lack of cross-border river basin management

India needs to grow without placing an unsustainable burned on natural resources. India can leapfrog into cleaner technologies Example: skipping several steps in emission

standards for vehicles

Key themes of the new CAS

April, 2008 9

Diversified approach

The government has asked the World Bank to focus its support on: Lagging states States with weak governance

In lagging states, the WB would focus coordinated activities on building capacity, assisting in the implementation of centrally sponsored schemes, and achievement of the Millennium Development Goals.

In states with weak governance, the WB would support studies and capacity building activities to strengthen governance

April, 2008 10

Diversified approach

The WB will also be engaged in more advanced states:

to support institutional strengthening to support activities that have a demonstration effect

in the rest of the country to provide the best expertise available to promote the

debate on the difficult development questions India faces

working in close coordination with the private sector and IFC

April, 2008 11

BE MORE STRATEGIC & SELECTIVE India is large, needs are many, and

we are relatively few. If we want to have an impact, we need to align our efforts behind a few goals

The strategy should guide the choice of what we do

Principles on how we work

April, 2008 12

DO FEWER THINGS BETTER We are now overstretched. We need

to do fewer things better. We need to improve the

performance and results of our initiatives

Principles on how we work

April, 2008 13

Focus on better design (incl. enhancing readiness for implementation)

Focus on more effective supervision

Principles on how we work

April, 2008 14

We welcome your views!