world bank documentdocuments.worldbank.org/curated/en/... · the world bank in india • september...

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About the Photograph: World Bank President Paul D. Wolfowitz with schoolgirls in Kosigi village in Andhra Pradesh’s Mahbubnagar district. Photos: Sondeep Shankar WorldBank IN INDIA THE I N S I D E Bank President visits India 1-5 Transport development in India and China: A comparison 6-8 Events 9 Implementation Completion Reports: An Update 10-12 New Additions to the Public Information Center 13 Contact Information 24 T he President of the World Bank, Paul D. Wolfowitz, was in India over 17-20 August 2005 on his first visit to the country after taking over as head of the development institution. “India is rapidly emerging as a country of global importance and we are seeing its footprint across the world now in new and exciting ways. I am here to learn from your model of development and reform in a democratic environment,” said Mr. Wolfowitz on his arrival at Hyderabad. Mr. Wolfowitz began by traveling through two villages of Mahbubnagar district, Andhra Pradesh (AP), where he interacted with members of women’s self-help groups (see box) being supported under the Bank’s AP District Poverty Initiatives Project and the AP Rural Poverty Reduction Project. India has lessons in development for the world, says Wolfowitz SEPTEMBER 2005 VOL 4 / NO 2 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Page 1: World Bank Documentdocuments.worldbank.org/curated/en/... · The World Bank in India • September 2005. While in Andhra Pradesh, Mr. Wolfowitz also met parents and children of a

About the Photograph:World Bank PresidentPaul D. Wolfowitz withschoolgirls in Kosigi villagein Andhra Pradesh’sMahbubnagar district.Photos: Sondeep Shankar

WorldBankIN INDIA

THE

I N S I D E

Bank President visitsIndia 1-5

Transport development inIndia and China: Acomparison 6-8

Events 9

Implementation CompletionReports: An Update 10-12

New Additions to thePublic Information Center 13

Contact Information 24

The President of the World Bank, Paul D. Wolfowitz, was in India

over 17-20 August 2005 on his first visit to the country after taking

over as head of the development institution. “India is rapidly emerging

as a country of global importance and we are seeing its footprint across

the world now in new and exciting ways. I am here to learn from your

model of development and reform in a democratic environment,” said

Mr. Wolfowitz on his arrival at Hyderabad.

Mr. Wolfowitz began by traveling through two villages of Mahbubnagar

district, Andhra Pradesh (AP), where he interacted with members of

women’s self-help groups (see box) being supported under the Bank’s

AP District Poverty Initiatives Project and the AP Rural Poverty Reduction

Project.

India has lessons in developmentfor the world, says Wolfowitz

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The World Bank in India • September 2005122

While in Andhra Pradesh, Mr. Wolfowitz also

met parents and children of a school

supported by India’s Sarva Shiksha Abhiyan,

to which the Bank is a contributor. He also

met beneficiaries of the Bank-assisted AP

Community Forestry Project, as well as a

community that had benefited from the

government’s Swajaldhara rural drinking

water scheme.

In New Delhi, Mr. Wolfowitz met with

the Prime Minster, Finance Minister, and

the Deputy Chairman of the Planning

Commission. He also called on the President

of India, and was able to meet several chief

ministers and parliamentarians in informal

settings. Outside of the official meetings, he

met specialists in gender issues, private

industry, and representatives of South Asian

youth.

Above:Mr. Wolfowitzwith India’sFinanceMinister, P.Chidambaram

The official meetings had a common focus:

Rural infrastructure and physical

infrastructure. The government briefed Mr.

Wolfowitz on its Bharat Nirman initiative,

which is a highly ambitious program of

investment in six rural sectors – irrigation,

drinking water and sanitation, roads, telecom

connectivity, electrification and housing.

The Bank is already active in the first three

sectors and the government sought

expanded Bank involvement in them. The

President agreed to target at least US$ 3

billion in new lending in these sectors over

the next three years out of the existing CAS

lending targets for India.

“Although India is making rapid strides,

it has an unfinished agenda,” said Mr.

Wolfowitz. It is still home to a quarter of the

world’s poor people, most of whom reside in

the rural areas. Infrastructure constraints are

an impediment to growth. The government

has rightly made provision of rural

infrastructure and investments in hard

infrastructure a priority. The World Bank feels

privileged to support these efforts.”

The government also sought Bank support

in encouraging public-private partnerships in

infrastructure projects. India needs to invest

about US$ 100 billion in the next seven

years in areas like highways, power, airports,

ports and railways but it is difficult to attract

the private sector as infrastructure projects

are not always high-return. The government

discussed with Mr. Wolfowitz the possibility

of setting up a ‘viability gap financing fund’ -

which private investors could access on a

competitive basis – and agreed to explore

this idea further.

While in New Delhi, Mr. Wolfowitz, joined

India’s Minister of Finance P. Chidambaram

in witnessing the signing of the US$ 325

million loan agreement for the Maharashtra

Water Sector Improvement Project.

Speaking at the event, Mr. Wolfowitz, said:

“I hope this Project – which is aimed at

making every drop of water count in

Maharashtra – can be an excellent example

of development work making a real

difference for people battling to improve

their lives.”

Right:Mr. Wolfowitzand theCountryDirectorfor IndiaMichael Carterin the Bank’sNew Delhi office

Right:The BankPresidentaddresses apress conferencein New Delhi

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The World Bank in India • September 2005 123

At his own request, Mr. Wolfowitz sought a

briefing from the government on India’s

tsunami experience. Representatives of the

Centre, the Planning Commission, and the

governments of Tamil Nadu, Pondicherry

and Andaman and Nicobar Islands

described the steps they had taken

immediately after the disaster and their

approach to the reconstruction process.

They were appreciative of the Bank’s quick

response to their funding needs and the

advice the Bank team had been providing.

The President was very impressed with

India’s performance and recommended that

Right:Mr. Wolfowitzspent aconsiderablepart of his fieldvisit in ruralAndhra Pradeshmeeting womenfrom self-helpgroups

the government share its lessons with other

affected countries. “India’s response to the

tsunami, both immediately after the disaster

struck and now in the reconstruction phase,

has been remarkable. The World Bank is

proud to support this effort and looks

forward to carrying the learnings from India

to the other affected countries,” he said.

The Prime Minister and Finance Minister

gave Mr. Wolfowitz a clear message that

they deeply valued India’s partnership with

the World Bank, appreciated the work its

staff were doing, and saw the relationship

expanding in the years ahead.

Rural Infrastructure Projects signed in FY 2003-05

Projects Approval Date Closing Date Commitment Amount (US$) Million

FY 2004-05

Madhya Pradesh Water Sector Improvement Project 7 Sept 2004 31 March 2011 394.0

Rural Roads Project 23 Sept 2004 31 March 2010 399.5

Assam Agricultural Competitiveness Project

(Irrigation and rural infrastructure components) 14 Dec 2004 31 March 2010 142.85

Maharashtra Water Sector Improvement Project 23 June 2005 31 March 2012 325.0

FY 2003-04

Uttaranchal Watershed Development Project 20 May 2004 31 March 2012 69.6

Maharashtra Rural Water Supply and Sanitation Project 26 August 2003 30 Sept 2009 181.0

Total Lending for Rural Infrastructure FY 2003-05 1511.95

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The World Bank in India • September 200512

You are the real leaders, Bank President tells AP village women

The World Bank in India • September 20054

The women clamoured to narrate their stories

with an infectious energy and enthusiasm

which was hard to leave behind. One woman,

Anjilamma described how she had once

depended on daily wage labor, but thanks to

careful use of borrowings from her self-help

group, had gradually been able to buy cattle and

land. She was now putting her son and daughter

through college.

“It used to be a hand-to-mouth existence,”

explained another woman, Deramma. “ But now

we are self-reliant, and can educate our children.

We now have the confidence that we can come

out of poverty.”

Ramulamma, the 28-year-old president of the

district federation of self-help groups, explained

how the confidence the women had gained

enabled them to successfully campaign in some

villages against age-old practices like jogini

(handing over daughters to become temple

courtesans) and the barring of certain castes from

entering temples.

Plunging into rural India on the first full

day of his visit to the country, the President

of the World Bank, Paul D. Wolfowitz visited

Mushrifa and Kosigi villages in Andhra Pradesh’s

Mahbubnagar district, to meet women from poor

rural villages.

The women described how the creation of self-

help groups under two Bank-assisted projects–

the AP District Poverty Initiatives Project and the

AP Rural Poverty Reduction Project – had helped

them not only improve their livelihoods, educate

their children, buy assets, but also campaign

against oppressive social practices, and become

a force for development in their villages. He first

met members of a single group in Mushrifa village,

then representatives at the block (mandal)

federation level in Kosigi, and finally, in Hyderabad

SHG leaders from all districts of the state.

Top next page:Mr. Wolfowitz being welcomed to Mushrifa village

Below:Mr. Wolfowitz talking to Kiran, 11, a student of Class 5in Mushrifa village

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The World Bank in India • September 2005 12The World Bank in India • September 2005 5

In returning to Hyderabad in the evening,

Mr. Wolfowitz, in the company of state chief

minister Y. Rajasekhara Reddy, met more than a

hundred self-help group representatives from

other districts of the state. It was a noisy

gathering and spontaneous as each woman,

unfazed by the dignitaries and huge battery of

media, insisted on making her point.

poverty is something pre-determined and life-long.

Ever since I joined this group, I have realized that

poverty is something one can put behind.”

Mr. Wolfowitz was impressed by the sheer scale

of what was happening in the state. “We are not

talking of one or two pilot projects or model

villages, but a state-wide phenomenon. There are

lessons here for the rest of India and the world,”

he said.

To the women, the World Bank President had a

clear message: “You have demonstrated that you

can repay your loans and manage your money.

You can sustain this movement because

commercial banks will now not hesitate to lend to

you. What impressed me most was not just that

you are earning more and giving your children a

brighter future, but how you were able to come

together for a common purpose. A leader is one

who is convinced of her beliefs and can convince

others. You have become real leaders and are a

treasure for your communities and country.”

Mr. Wolfowitz said he was going back determined

to talk about his AP experience in Washington

and other capitals, and is keen that the Bank

transfer the lessons of the AP women’s SHG

movement to other states of India as well as to

other countries and regions.

These women included representatives of India’s

most disempowered groups – widows, leprosy

patients, and India’s lower-most castes. But their

voices shouted confidence. One woman spoke

for them all when she said: “We once thought that

Above:Mr. Wolfowitz with the Chief Minister of Andhra Pradesh,Y. Rajashekhar Reddy

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The World Bank in India • September 200512

On railtrack and on roads, Chinaoutstripped India in just 10 yearsAt the beginning of the 1990s, India’s highway and railway infrastructure was ahead ofthat in China. Ten years later, China had raced ahead on both. How did it do this andwhat are the lessons India can take away from the spurt in China’s highway and railwaydevelopment between 1992 and 2002? Guang Zhe Chen, South Asia Sector Manager forEnergy and Infrastructure at the World Bank, explains:

In 1992, India had 2.7 million km of roads

while China’s network was at 1.32 million

km. But there was little to choose in terms of

quality, for both networks were severely

deficient in terms of modern standards like

pavement management, road geometry and

traffic management.

In 1992, the two countries’ railway networks

carried the same volume of passenger km

(pkm) – 314 vs 315 billion pkm). China

Railways (CR), however, carried more than

4.5 times the freight Indian Railways (IR) did–

– it ferried 1,157 billion ton km (tkm) annually

as against IR’s 257 tkm. Over the next ten

years, however, China’s highway and railway

development overtook India’s dramatically.

1992-2002 – the crucial decade

It took China a whole decade after it first

initiated economic reforms to realize how its

outmoded transport infrastructure was

constraining economic growth. With the turn

into the 1990s, it took a decision not just to

alleviate the most pressing immediate

bottlenecks, but to build a high-capacity,

modern transport system that could take

care of future needs as well.

In highways, China’s expansion did not lie in

adding too many extra kilometers. In fact, its

network grew by 443,000 kms during the

decade (taking the total to 1.77 million km)

while the Indian network grew by 600,000

kms (taking the total to 3.3 million km).

The difference lay in the type of roads

added. The emphasis of China’s road

expansion was on building arterial networks

– by 2002 it had added some 25,130 km of

access-controlled expressways with

minimum four lanes and another 27,468 km

of four-lane dual carriageway without access

control. In contrast, India had concentrated

on opening up all-weather rural access

roads and its standard arterial highways

continued to remain largely neglected. The

first comprehensive highway development

project was the effort to widen the 6,500

Golden Quadrilateral to four lanes – without

access control – which began in 1998 and

is yet to be completed.

In railways, between 1992-2002, China

added double amount of route kms India did

– while India’s overall rail network grew by

682 route km, China’s grew by 13,797 route

km. The increment in China’s annual freight

traffic during that period (from 1,157 to 1,551

billion tkm) alone exceeded the entire freight

traffic carried by the Indian Railways in 2002

(336 billion tkm). Qualitatively, too, the

expansion differed – while India’s double-

track network increased in this period by

1,519 km (10 percent increase), China added

9,400 km, increasing its double-track network

by 69 percent; and while India electrified an

additional 5,192 km, China doubled its

electrified track by adding 8,975 km.

So, how did China accomplish this and does

its experience have any lessons for India?

Huge spurt in investment: The most

significant step China took was to begin

pumping in resources into its transport

sector. Even as India’s annual spending on

highways averaged US$ 1 billion to US$ 3

billion between 1992-2002, China was

6

Development Dialogue

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The World Bank in India • September 2005 12

spending 10 times that amount. Annual

highway expenditure in China rose from US$

13 billion in 1997 to US$ 30 billion during the

next few years. By 2002, it was spending

3.1 percent of its GDP of US$ 1,233 billion

on highways.

Investment in the two government-run

railways during the decade 1992-2002

followed the same pattern – while Indian

Railways spent US$ 17.3 billion, China

Railways spent exponentially more at US$

85 billion.

Let us examine how China handled the

growth in the two sectors:

Highways

Mix of funding options: China used a

wide mix of funding options to pay for the

huge increase in highways funding. The

largest quantum of funding came from public

sources, both directly from the government

budget and also through government

borrowings and guarantees; one-fourth of

the funds were recovered from road users

through a range of mechanisms including a

Road Maintenance Fee (US$ 10 billion in

2002), Vehicle Purchase Fee (US$ 4.5 billion

in 2002) and a Highway Transport

Management Fee (US$ 2.5 billion in 2002).

China also imposed tolls on its improved

roads; this, however, did not prove

successful as people tended to avoid the

tolled new highways and continued to

congest old but untolled routes.

India might find it more beneficial to rely on

fuel levies (like the Central Road Fund),

supplemented by direct tolling only where

the demand for the tolled road is highly

inelastic. A recent Bank study1 sets out the

policy options before India on the issue of

comprehensive road user charges.

Public Private Partnerships: Close to 10

percent of the total funds were raised from

private-public partnerships (over 80 joint

ventures were signed between Hong Kong

developers and provincial or municipal

authorities for instance) and by selling equity

in toll highway companies.

However, while China raised some US$ 11

billion from private investors, this amounted

to less than 10 percent of the total

expenditure on highways. Another recent

World Bank study2 suggests that India, with

its better established capital markets and

associated legal infrastructure, is in a

position to net greater private participation

in highway financing. In fact, the World Bank

has been asked by the government of India

to support the country’s bid to establish a

public private partnership (PPP) program for

constructing physical infrastructure including

arterial highways. However, this presupposes

substantial increases in state funding so as

to provide the public share of the finances.

Prioritizing Investment: China, from the

start of its expansion program concentrated

on high-quality, access-controlled arterial

highways, devoting 60 percent of its road

budget to these roads that remain

underutilized. India, on the other hand,

concentrated on feeder networks and, to

date, has no access-controlled core

highways. Both are choices of extremes and

the lesson for India going ahead is to choose

design standards on a project-by-project

basis and not as sweeping policy decisions.

Maintaining International Implementation

Standards: China moved swiftly to introduce

international standards in its highway

development, including international

competitive bidding; separating construction

bureaus from government roads authorities;

introducing FIDIC contract structures and

conditions; and enforcing quality control by

placing lifetime responsibility on designers

and contractors for faulty design and

construction of highways.

7

Below:China’sinvestmentsin the roadsector between1992-2002saw thedevelopmentof a highcapacitymoderntransportsystem

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The World Bank in India • September 200512

Railways

● Physical standards: While most of

China’s system is new and thus

incorporates higher design standards and

has high service reliability, even the older

assets are better maintained, requiring

less downtime. The physical standards of

IR are much lower thus affecting overall

productivity.

● Commercial focus: Placing a higher

emphasis on commercial focus, CR uses

hikes passenger fares to achieve financial

viability, in order to foster competition, the

Chinese Ministry of Railways has also

entered into management contracts with

14 regional railway administrations setting

out clear performance indicators and

incentives.

● Vertical disintegration: CR has divested

its non-core activities and cut staffing by

half.

● No cross-subsidies from freight to

passenger traffic: Till the 1980s, the

government in China controlled

passenger tariff and CR minimized its

operational losses by restricting the

volume of passenger business. But after

the transition to a market economy, began

increasing passenger capacity but also

increased passenger fares.

● Limited privatization: Local railway joint

ventures and corporotization with sale of

shares in existing railway units.

The purpose of this exercise in comparisons

is not to suggest that India replicate all of

China’s policies in expanding its

transportation infrastructure. There are

lessons in each country’s progress that can

be drawn by the other nation, and, equally,

there are those that can be discarded.Indian Chinese

Railway Railway

Passenger per km of total output (%) 59 24

Passenger revenue of total (%) 30 41

Average cost per equated unit (US cent) 0.75 0.65

Average freight tariff per tkm (US cent) 1.6 0.96*

Average passenger fare per km (US cent) 0.55 1.25

*including construction surcharge of 0.4 c All figures for 2002

Comparing costs & fares for IR & CR, 2002

8

(The author would like to thank Mr. Clell Harral,Chairman of Harral, Winner, Thompson, Sharp Incand Mr. Jit Sondhi for their important contributionsto this article)

(Footnotes)1Highway Finance in India: A Policy Note, WorldBank, January 20042Private Finance of Highways in India: AnAssessment, World Bank, January 2004

How the two railway companies fared

INDIA CHINA

1991-92 2001-02 Ratio 1992 2002 Ratio

Total Employees (in million) 1.65 1.51 0.91 3.41 1.76 0.51

Operational Employees (est. million) 1.42 1.3 0.91 2.04 1.39 0.68

Output per Operational Employee 402 648 1.61 728 1,385 1.90

(1,000 equated units)

Transportation Revenue (in billion) INR 137 INR 378 2.76 RMB 69.9 RMB 142.0 2.96

Operational Expenses & Pensions INR 104 INR 343 RMB 24.6 RMB 112.0

(in billion)

Depreciation INR 20 INR 20 RMB 13.5 RMB 22.3

Total Working Expenses including INR 124 INR 363 2.92 RMB 35.8 RMB 134.3 3.75

Depreciation and Pensions

Working Ratio (%) 0.76 0.94 0.35 0.62

Operating Ratio (%) 0.90 0.96 0.51 0.74

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The World Bank in India • September 2005 12

The knowledge-sharing partnership between

the World Bank and the state of Tamil Nadu

was launched by Chief Minister of Tamil

Nadu, Ms. J. Jayalalitha. Speaking on the

occasion, she said, “The Tamil Nadu

Equitable Growth Initiative is a collaborative

exercise, involving the people and the

government in strengthening the policy

formulation process. Civil society can

articulate its core development concerns

and explore possible solutions to them along

with the Government. I am happy that the

World Bank has also offered to share cross-

country expertise and global best practices

in this endeavour.”

In her speech, the Chief Minister defined

‘development’ as “the creation of new

choices and expanding opportunities for

the people”. She went on to add, “It also

implies that the choice of such a

development strategy must be democratic,

by involving people in delineating

development challenges and setting out

economic priorities for the Government”.

The Bank’s Country Director for India,

Michael Carter, outlined the Bank’s views

of what the engagement should seek to

achieve, some constraints which require a

policy response and ways in which the Bank

could help the government realize its

objectives under the initiative.

displacement of the population under any

single project in the country. The project

involved acquisition of nearly 80,000 ha and

relocation of around 55,000 families. The

project team, headed by Mr. Jaamdar,

ensured that the resettlement was

accomplished with support from the local

population including those displaced by the

project. Unlike other projects in the country,

this project did not face any major legal

issues with the displaced community either

on land acquisition or resettlement.

Improving the energy efficiency of pumps

has been tested on a small-scale in Madhya

Pradesh with assistance from the Canadian

International Development Agency (CIDA).

Using the instance of Madhya Pradesh as

a case in point, the Bank conducted a

brainstorming session on aspects which

required coordination amongst the water

resources/irrigation, agriculture/horticulture,

and energy departments in states and the

corresponding ministries at the Center.

Senior government officials from the Central

Government, Tamil Nadu, Madhya Pradesh,

Maharashtra, Orissa, Uttar Pradesh,

Jharkhand, West Bengal, Rajasthan,

Haryana, Bihar, Punjab, Gujarat, as well

representatives from international donor

agencies attended the workshop.

KNOWLEDGE SHARING PARTNERSHIP

Tamil Nadu Equitable Growth Initiative

3 August 2005 • Chennai

WORKSHOP

Energy Efficiency in Agricultural Pumping,

Carbon Credits and Impact on Agriculture,

Groundwater and Utilities

22 July 2005 • New Delhi

An experience-sharing session where Bank

staff from Indonesia and India shared the

accounts of implementation of livelihood

oriented projects with government officials

from states and from the Center.

SEMINAR

Managing Resettlement under the Upper

Krishna Project • 28 July 2005 • New Delhi DISCUSSION

Global Lessons on Livelihoods

– Comparing East Asia and South Asia

1 July 2005 • New Delhi

Events

A talk by Dr. S. M. Jaamdar, Principal

Secretary of Karnataka and Commissioner,

Upper Krishna Irrigation Project, held as part

of the World Bank Social Development

Seminar Series.

The construction of Upper Krishna Irrigation

Project, with an ultimate irrigation potential

of 575,000 ha, resulted in the largest

9

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The World Bank in India • September 20051210

ICR Update

Beginning with this issue, the World Bank in India newsletter will carry shortsummaries of Implementation Completion Reports (ICRs) of recently-closed World

Bank projects. The full text of each of these ICRs is available on the Bank’s website. Toaccess these documents, go to http://www.worldbank.org/reference/ and then opt for theDocuments & Reports section.

Approval Date: 30 June 1998

Closing Date: 31 March 2004

Project Cost: US$M 158.79

Bank Financing: US$M 128.15

Implementing Agency: Governmentsof Uttar Pradeshand Uttaranchal

Outcome: Satisfactory

Sustainability: Likely

InstitutionalDevelopment Impact: Substantial

Bank Performance: Satisfactory

Borrower Performance: Satisfactory

Diversified Agricultural Support Project

Below:One of themostsuccessfulcomponents ofthe Projectwas theformation ofsmall self-helpthrift groups

Right:The Projecthelped scoresof farmersdiversify tohigh valuecrops likeoilseeds andvegetables

Assessment:

The Diversified Agricultural Support Project

(DASP) aimed at getting the technology

development and dissemination apparatus

to take a comprehensive farming system

approach rather than concentrate on any

particular aspect of the farming cycle. It

achieved this by promoting applied research

tailored to the user- and location specific

needs of farmers and their farmlands.

With an eye to helping government line

departments (of agriculture, animal husbandry

etc who are traditionally responsible for

technology dissemination) adopt a demand-

driven approach, the Project helped forge a

network of farmer groups. It motivated these

farmers to first experiment with low-cost

technologies and techniques (both new as

well as indigenous) and then propagate them

among their fellow farmers. This approach

has led to an improvement in productivity in

Project areas.

For instance, there has been an over 10

percent increase in crop productivity and a

25 percent increase in milk productivity.

Cropping intensity has grown from 169

percent at baseline to 203 percent at

completion and there has been a significant

diversification from cereal crops to

vegetables and other higher-value crops.

Project Development Objective:

To increase agricultural productivity through

support for Uttar Pradesh’s (and Uttaranchal

after UP was bifurcated) diversified

agricultural production systems, promote

private sector development, and improve

rural infrastructure.

Scale:

Some 7,400 villages in 37 districts of both

UP and Uttaranchal.

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The World Bank in India • September 2005 1211

Assam Rural Infrastructure and Agricultural Services Project

Nearly 20,000 self-help groups (SHGs) were

formed under the Project, of which nearly

7,400 were women’s groups. Functioning also

as savings societies, these groups have given

out loans to their members of approximately

Rs 192 million (US$4.2 million) and have

accessed credit worth Rs 212 million (US$4.6

million) from linking with commercial banks.

The Project also helped substantially

increase private sector participation in the

whole technology dissemination set up.

This was catalyzed by some policy changes,

including introducing paravet services (over

1,300 paravets have been trained and are

operational), cost-recovery for input supplies,

on-farm seed multiplication, and the

establishment of 1,095 private vegetable

and fruit nurseries.

Rural infrastructure in Project areas has

been significantly improved by connecting

over 1,100 villages with improved roads, as

well by upgrading 114 rural markets. Impact

assessment studies suggest that these have

had a significant economic impact on the

productivity of these areas.

The fact that several farmers from adjacent

non-Project areas began adopting, under

their own steam, many of DASP’s agronomic

practices and techniques suggests that

it is an affordable and replicable model.

One of the few lacunae seen during the

implementation of DASP was the lack of

adequate farm-market linkages it forged.

The follow-on Project, which is currently

being prepared, seeks to address these

gaps.

Project Development Objective:

(i) improve equity and alleviate poverty

by offering better opportunities for poorer

farmers and women to contribute to

agricultural growth and income generation;

(ii) improve nutrition of the rural poor;

(iii) accelerate agricultural growth through

improved use of resources, relieving

infrastructural and technical constraints,

and providing an enabling environment

to facilitate the growth of private sector

investments;

(iv) encourage sustainability of resource use

and quality of the environment; and

(v) improving Assam’s long term capacity for

a strategic agricultural planning.

Scale:

The Project was active in 22 districts of

Assam.

Assessment:

For years, villages in the Brahmaputra Valley

of Assam were caught in an inopportune

farming cycle. Each year, the mighty river

flooded the low-lying plains for months, leaving

the soil too sodden to farm. By the time the

land dried out, the sowing season would be

far advanced. The dry season brought its own

attendant problems for the farmers, because

Assam, despite abundant surface and

groundwater resources, had very little assured

irrigation. The Project sought to make farming

a little less of a gamble for the farmers of

Assam. It helped villagers set up a string of

irrigation facilities, ranging from tubewells to lift-

irrigation schemes and river pumping schemes.

Right:The Projecthelped farmersinstal shallowtubewells totap Assam’simmenseirrigationpotential

Approval Date: 25 May 1995

Closing Date: 30 June 2004

Project Cost: US$M 127.05

Bank Financing: US$M 109.25

Implementing Agency: ARIASP Society,Government ofAssam

Outcome: Satisfactory

Sustainability: Likely

InstitutionalDevelopment Impact: Substantial

Bank Performance: Satisfactory

Borrower Performance: Satisfactory

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The World Bank in India • September 20051212

Perhaps the Project’s most significant

impact on raising agricultural production

and household incomes came through an

impressive expansion in Shallow Tube Well

(STW) irrigation. Some 70,450 STWs have

been installed, bringing 154,990 ha of land

under irrigation and increasing cropping

intensity in the STW areas from 150 percent

to between 195 percent and 213 percent.

The consequent increase in productivity

helped Assam become self-sufficient in

paddy for the first time in two decades.

The success of the STWs prompted the

government of Assam to seek financing from

the National Bank for Agricultural and Rural

Development for an additional 99,000 STWs.

The assured irrigation also helped farmers,

hitherto dependent on paddy, diversify to

vegetable and oilseed crops that fetched

them higher incomes. The Project also

helped farmers with livestock management,

with special emphasis on increasing milk

production through artificial insemination

and breeding of better quality livestock.

The increase in annual milk production from

Project activities has been estimated at 57

million liters.

Given Assam’s wealth of water bodies,

the Project sought to help resuscitate

small-scale fisheries in the state. It trained

small and marginal farmers to go in for fish

production in their ponds and community

tanks as a means of raising incomes. A total

of 602 ha in farm ponds and 822 ha in

community tanks were turned into effective

fisheries; about 12,000 farm families

benefited.

The Project also piloted the development

of beels or ox-bow lakes through a

partnership between local communities and

NGOs. This has proved effective in targeting

poorer communities and in ensuring that

poor people get an equitable share of

increased income. Beel coverage touched

2,139 ha and open water fishery touched

164 ha under the Project.

In addition, the Project has had a positive

impact on raising rural incomes by improving

access to markets through rural road

improvements. Some 723 km rural roads

with 209 bridges were constructed, and

approximately 2,013 km of rural roads were

rehabilitated.

Some policy reforms that the Project helped

steer include

(i) Formulation of State Agricultural Policy

(ii) Formation of Road Board and adoption

of Road Maintenance Policy

(iii) Privatization of some seed farms and

progeny orchards

(iv) Formulation of Fish Seed Act

(v) Beel (ox-bow lakes formed due to

shifting of river course) lease reforms

(benefiting poor community groups) etc.

Right:Assuredirrigation inthe dry seasonhas helpedfarmersdiversify tovegetablecrops thatearn themhigher returns

Delhi Water Supply and Sewerage Project

The World Bank has been approached by the Government of India and the

Government of the National Capital Territory of Delhi (GoNCTD) to support a

program that would improve the reliability, sustainability and affordability of the water

supply and sewerage service provided in Delhi by the Delhi Jal Board (DJB). This is

planned to be achieved by gradually implementing a reform that would improve the

management of the service, extend the infrastructure to underserved parts of the city,

and financially strengthen the water utility through recovery of the efficient cost of

operations. The GoNCTD and DJB have initiated a comprehensive consultation on the

proposed program with all categories of stakeholders. Some of them have requested

clarifications on the role and position of the Bank in this process. For details of the

Bank’s position visit the World Bank in India website: http://www.worldbank.org.in

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The World Bank in India • September 2005

Publications may be consulted and copiesof unpriced items obtained from:

The World Bank PIC70 Lodi EstateNew Delhi -110 003

Tel: 011-2461 7241Fax: 011-2461 9393

Internet: www-wds.worldbank.orgEmail: [email protected]

To order priced publications

Allied Publishers Ltd.751 Mount RoadChennai - 600 002

Tel: 044-852 3938Fax: 044-852 0649Email: [email protected]

BookwellHead Office2/72 Nirankari ColonyDelhi - 110 009

Tel: 011-2725 1283

Sales Office:24/4800 Ansari RoadDarya GanjNew Delhi - 110 002

Tel: 011-2326 8786, 2325 7264Fax: 011-2328 1315Email: [email protected]

Anand Associates1219 Stock Exchange Tower12th Floor Dalal StreetMumbai - 400 023

Tel: 022-2272 3065/66Fax: 022-2272 3067Email: [email protected]: www.myown.org

Team Spirit (India) Pvt. Ltd.B - 1 Hirak CentreSardar Patel ChowkNehru Park, VastrapurAhmedabad - 380 015

Tel: 079-676 4489

Email: [email protected]

New Additions to thePublic Information Center

This is a select listing of recent World Bank publications, working papers, operationaldocuments and other information resources that are now available at the New Delhi Office

Public Information Center. Policy Research Working Papers, Project Appraisal Documents,Project Information Documents and other reports can be downloaded in pdf format from‘Documents and Reports’ at www.worldbank.org

13

India Publications

India Policy Research Working Paper

Report on Observance of Standards and Codes(ROSC) - Accounting and Auditing

Report No. 32510

An assessment ofaccounting and auditingpractices in India, thisreport finds that in orderto improve the quality ofcorporate financialreporting in India, thereis a need to improve theinstitutional framework, andto enhance compliancewith the applicablestandards and rules. It

provides some policy recommendations to strengthenthe monitoring and enforcement arrangements,including setting up an independent body foroverseeing the auditing profession from a publicinterest perspective.

WPS3675

Business environment, clustering, and industrylocation : evidence from Indian citiesBy Somik V. Lall and Taye Mengistae

How do differences in the local business environmentinfluence location of industry within countries?The authors examine this question by analyzinglocation decisions of individual firms. Using data froma recently-completed survey of manufacturing firmsin India, they find that both the local businessenvironment and agglomeration economiessignificantly influence business location choices acrosscities. In particular, excessive regulation of labor andof other industrial activities reduces the likelihood of abusiness locating in a particular city. The authors’findings imply that in order to attract industrial activity,smaller or remoter cities need to offer even moreattractive policy concessions or reforms to offset theeffects of their relatively adverse economic geography.

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The World Bank in India • September 200514

Other Publications

WPS3665

Credit constraints as a barrier to technologyadoption by the poor: Lessons from South Indiansmall-scale fisheryBy Xavier Gine and Stefan Klonner

It is generally recognized that the adoption of anew technology plays a fundamental role in thedevelopment process. However, the benefits from theintroduction of the technology may be unevenlydistributed among the population, especially if themarkets do not function properly. While themicroeconomic literature on technology adopted anddiffusion focuses on ‘who’ and ‘when’ themacroeconomic literature has focused on the overallimpact of globalization on inequality. In this paper, theauthors bring these two strands of the literaturetogether by studying the diffusion of plastic reinforcedfiber boats in a fishing village in Tamil Nadu and byanalyzing the dynamics of income inequality duringthis process.

WPS3654

Crop insurance in KarnatakaBy Vijay Kalavakonda and Olivier Mahul

The authors examine the performance of the cropinsurance scheme in Karnataka, the second drieststate in the country. Their analysis highlightsweaknesses in product design, implementationchallenges and several operational problems. Theauthors’ finding is that the crop insurance scheme inits current form does not achieve its objectives, eitherexplicit (risk management) or implicit (safety net andcontainment of both the central and stategovernments’ contingent liability). The crop insurancescheme performs poorly both in terms of coverage(number of hectares insured and number of farmerspurchasing insurance) and financial performance.The authors provide a framework for designing a cropinsurance scheme based on the premise that insuranceis a cost-effective risk management technique. Theyalso provide some ideas about improving the existingcrop insurance scheme and exploring alternatives tothe current product, based on an area-yield approach.

WPS3669

Money for nothing: The dire straits of medicalpractice in Delhi, IndiaBy Jishnu Das and Jeffrey Hammer

The quality of medical care received by patients variesfor two reasons: differences in doctors’ competence ordifferences in doctors’ incentives. Using medicalvignettes, the authors evaluated competence for asample of doctors in Delhi. One month later, theyobserved the same doctors in their practice. Theauthors find three patterns in the data. First, whatdoctors do is less than what they know they should do– doctors operate well inside their knowledge frontier.Second, competence and effort are complementary sothat doctors who know more also do more. Third, the

gap between what doctors do and what they knowresponds to incentives: doctors in the fee-for-serviceprivate sector are closer in practice to their knowledgefrontier than those in the fixed-salary public sector.Under-qualified private sector doctors, even thoughthey know less, provide better care on average thantheir better-qualified counterparts in the public sector.These results indicate that to improve medical services,at least for poor people, there should be greateremphasis on changing the incentives of publicproviders rather than increasing provider competencethrough training.

WPS3664

The impact of business environment and economicgeography on plant-level productivity: An analysisof Indian industryBy Somik V. Lall and Taye Mengistae

The authors’ analysis of manufacturing plants sampledfrom India’s major industrial centers shows largeproductivity gaps across cities. The gaps partly reflectdifferences in agglomeration economies and in marketaccess. However, they are also explained to a greaterextent by differences in the degree of labor regulationand in the severity of power shortages. This is anindication that governments can help narrow regionaldisparities in industrial growth by fostering the ‘rightbusiness environment’ in locations where industrymight otherwise be held back by powerful forces ofeconomic geography. There is indeed a pattern in thedata whereby geographically disadvantaged citiesseem to compensate partially for their naturaldisadvantage by having a better business environmentthan more geographically advantaged locations.

Public Services DeliveryEdited by Anwar Shah

Price: $ 35.00English PaperbackPublished June 2005ISBN: 0-8213-6140-6SKU: 16140

Despite the growingawareness of citizens abouttheir rights for greateraccountability from thepublic sector, the powerof accountability issignificantly reduced if

citizens are unable to measure their government’sperformance in a meaningful way. This book arguesthat the abstract concept of’‘government performance’can only be an effective tool when there are concretestatistics and benchmarks measuring performance.Public Services Delivery offers a comprehensive viewof government performance measurement. The firstpart examines systems or frameworks for measuringthe performance of government at the national level

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The World Bank in India • September 2005 15

and at local levels of government. The second part ofthe book focuses on particular sectors that form thecore of essential government services: health,education, welfare, waste disposal, and infrastructure.

African Development Indicators 2005: From theWorld Bank Africa Database

By World BankPrice: $ 50.00EnglishPublished July 2005ISBN: 0-8213-6078-7 SKU: 16078

African Development Indicators 2005 provides themost detailed collection of data on Africa availablein one volume. It contains more than 500macroeconomic, sectoral, and social indicators,covering over 50 African countries with data from1965-2003.

Doing Business in 2006: Creating JobsBy World Bank

Price: $ 35.00EnglishPublished August 2005 by World BankISBN: 0-8213-5749-2 SKU: 15749

Doing Business in 2006 is the third in a series of annualreports investigating regulations that enhance businessactivity and those that constrain it. This editionprovides analysis on those regulations that help createjobs and those that deter it. New quantitative indicatorson business regulations and their enforcement can becompared across 150 countries – from Albania toZimbabwe – and over time.

Doing Business in 2006 updates the indicatorspresented in previous reports: on starting a business,hiring and firing workers, getting licenses, gettingcredit, protecting investors, enforcing contracts, andclosing a business. Two news sets of measures areadded, on paying taxes and trading across borders.

Rolling Back Malaria: The World Bank GlobalStrategy & Booster Program

By World BankPrice: $ 15.00English PaperbackPublished June 2005 byWorld BankISBN: 0-8213-6199-6SKU: 16199

In 1998 the Bankcofounded, with WHO,UNICEF, and UNDP, the

global Roll Back Malaria Partnership to coordinate theglobal fight against malaria, which affects millions inthe developing world. There has been some success,but the scale was less than expected. The world nowfaces additional challenges, not the least of which is

the emergence of drug-resistant forms of malaria.This new plan of the Roll Back Malaria Partnershipcombines measures to increase coverage of malaria-specific interventions with effective service delivery,broader health-system development, and capacitybuilding across multiple sectors.

Shaping the Future of Water for Agriculture: ASourcebook for Investment in Agricultural WaterManagement

By World BankPrice: $ 40.00English PaperbackPublished June 2005ISBN: 0-8213-6161-9SKU: 16161

Agricultural watermanagement is a vitalpractice in ensuringreduction, andenvironmental protection.

The World Bank, in conjunction with several partneragencies, has compiled a selection of goodexperiences that can guide practitioners in the designof quality investments in agricultural water. Themessages of Shaping the Future of Water forAgriculture: A Sourcebook for Investment inAgricultural Water Management center around the keychallenges to agricultural water management,specifically:

● Building policies and incentives

● Designing institutional reforms

● Investing in irrigation systems improvementand modernization

● Investing in groundwater irrigation

● Investing in drainage and water qualitymanagement

● Investing in water management in rainfed agriculture

● Investing in agricultural water management inmultipurpose operations

● Coping with extreme climatic conditions

● Assessing the social, economic, and environmentalimpacts of agricultural water investments

Getting to Know the World Bank: A Guide forYoung People

By World BankPrice: $ 10.00English PaperbackPublished June 2005ISBN: 0-8213-5914-2SKU: 15914

This guide provides anoverview of the Bank’shistory, organization,mission, and purpose.

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The World Bank in India • September 200516

Central America Education Strategy: An Agendafor Action

By World BankPrice: $ 15.00English PaperbackPublished June 2005ISBN: 0-8213-6258-5SKU: 16258

The main objective of thisregional report is to providean in-depth diagnosisof where Central Americancountries stand alongseveral education

dimensions, underscoring the most urgent and seriouschallenges, and suggesting policy options to addressthem. This is the first attempt at providing acomprehensive quantification of educational outcomesin four comparable Central American countries: ElSalvador, Honduras, Guatemala, and Nicaragua. Thereport identifies three urgent priorities for improvingCentral American education systems: improvinglearning, reaching universal primary completion, andexpanding secondary coverage.

Expanding Opportunities and BuildingCompetencies for Young People: A New Agendafor Secondary Education

Price: $ 30.00English PaperbackPublished June 2005ISBN: 0-8213-6170-8SKU: 16170

This book focuses onthe impact of educationreforms that alter teacherincentives on teachingquality and studentlearning. The reformsexplored in this volumerepresent efforts by several

countries in the region to increase teacheraccountability and introduce incentives to motivateteachers to raise student learning.

World Bank Africa Database 2005: Single-userCD-ROM

By World BankPrice: $ 100.00EnglishPublished June 2005ISBN: 0-8213-6080-9SKU: 16080

The World Bank AfricaDatabase CD-ROM offers a

comprehensive database with year-by-year time seriesof most indicators going back to 1970. It contains over1,200 indicators of macro-economic, sectoral, andsocial data for over 50 African countries and 20

regional country groups. It also contains Country at-a-Glance tables for all African countries.

Country Assistance Evaluation Retrospective:OED Self-Evaluation

Price: $ 15.00English Paperback 80pages 8.5 x 11Published June 2005ISBN: 0-8213-6316-6SKU: 16316

This report is a self-evaluation of theOperations EvaluationDepartment’s (OED)Country Assistance

Evaluations (CAEs) that examine World Bankperformance in a particular country, usually over thepast four to five years.

Turkey: Economic Reform and Accession to theEuropean Union

Edited by Bernard M.Hoekman and SubideyToganPrice: $ 35.00English PaperbackPublished June 2005ISBN: 0-8213-5932-0SKU: 15932

What requirements mustTurkey – the largest countryamong the candidate andaccession countries – meet

to join the European Union? What progress has beenmade toward meeting them? This volume analyzes theeconomic challenges confronting Turkey in its quest toaccede to the European Union (EU). It focuses on theextent to which Turkey is ready to join the SingleMarket, comply with the EU’s body of economicregulations and directives, the Acquis Communautaire,and meet the Maastricht criteria for fiscal, monetary,and exchange rate policies.

China’s Ownership Transformation: Process,Outcomes, Prospects

Price: $ 25.00English PaperbackPublished June 2005ISBN: 0-8213-6237-2SKU: 16237

Over the past decade,the Chinese economy hasmade the transition fromcomplete reliance on state-owned and collectiveenterprise to a mixedeconomy where private

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The World Bank in India • September 2005 17

enterprise also plays a strong role. Gaizhi, a Chineseterm meaning ‘transforming the system’, has becomea major phenomenon in most parts of the country; inmany cases it has involved full privatization. China’sOwnership Transformation applies descriptive andeconometric analysis to survey, and official statisticaldata to examine, the progress of gaizhi over the yearsand across regions.

Analyzing the Distributional Impact of Reforms: APractitioner’s Guide to Trade, Monetary andExchange Rate Policy, Utility Provision, AgriculturalMarkets, Land Policy, and Education – Volume One

Edited by Aline Coudoueland Stefano PaternostroPrice: $ 40.00English PaperbackPublished June 2005ISBN: 0-8213-6181-3SKU: 16181

The analysis of thedistributional impact ofpolicy reforms on the well-being or welfare of differentstakeholder groups,

particularly on the poor and vulnerable, has animportant role in the elaboration and implementationof poverty reduction strategies in developing countries.While information is available on the general approach,techniques and tools for distributional analysis, eachsector displays a series of specific characteristics.Each chapter of this volume provides an overview ofthe specific issues arising in the analysis of thedistributional impacts of policy and institutional reformsin selected sectors.

The Urban Poor in Latin America

Edited by Marianne FayPrice: $ 25.00English PaperbackPublished June 2005ISBN: 0-8213-6069-8SKU: 16069

The urbanization of LatinAmerica has also lead tothe urbanization of its poor.Today about half of theregion’s poor live in cities.Urban Poor in LatinAmerica looks at strategies

to assist the urban poor in making the most of theopportunities offered by cities (deeper labor markets,better amenities and services, greater freedom, andpossibly less discrimination) while helping them copewith the negative externalities (high cost of housingand difficulty of obtaining shelter; risks to physicalsafety associated with pollution and environmentalcontamination, but also crime and violence; othercongestion costs, more isolation and possibly lesssocial capital).

How Much is an Ecosystem Worth?: Assessing theEconomic Value of Conservation

Price: $ 10.00English PaperbackPublished June 2005ISBN: 0-8213-6378-6SKU: 16378

The internationalcommunity has committeditself to achieve, by 2010, asignificant reduction of thecurrent rate of biodiversityloss at the global, regional,

and national levels. A range of methods have beendeveloped to value ecosystems, and the services theyprovide, as well as the costs of conservation. Themethods available are increasingly sensitive, androbust, but they are often incorrectly used. As a result,decision makers may get misleading guidance on thevalue of ecosystems, and their conservation.

In this context, the Bank, IUCN-The WorldConservation Union, and the Nature Conservancy haveworked together to clarify the aims and uses ofeconomic valuation, focusing on the types of questionsthat valuation can answer, and the type of valuationthat is best suited to each purpose. How Much is anEcosystem Worth? is the result of that cooperation.

Global Development Finance 2005(Single User CD-ROM): Mobilizing Financeand Managing Vulnerability

By World BankPrice: $ 400.00English CD-ROMPublished June 2005ISBN: 0-8213-5986-XSKU: 15986

Global DevelopmentFinance 2005 (Single User

CD-ROM), provides you with historical time series datafrom 1970 to 2003, and country group estimates for2004. Data is available for 136 countries that reportunder the World Bank Debtor Reporting System, aswell as summary data for regions and income groups.It contains data on total external debt stocks andflows, aggregates, and key debt ratios, and providesa detailed, country-by-country picture of debt.

Finding Global Balance: Common Ground betweenthe Worlds of Development and Faith

Edited by Katherine Marshall and Lucy KeoughPrice: $ 25.00English PaperbackPublished June 2005ISBN: 0-8213-6247-X SKU: 16247

This book relates the latest chapter in the story of aremarkable partnership between the worlds of faithand development, launched in 1998 by then Bank

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The World Bank in India • September 2005

Counting on Communication: The Uganda Nutritionand Early Childhood Development Project

By Cecilia Cabañero-VerzosaPrice: $ 10.00English PaperbackPublished July 2005ISBN: 0-8213-6268-2SKU: 16268

The Uganda Nutrition andEarly ChildhoodDevelopment Project wasone of the World Bank’sfirst projects to

demonstrate the value-add of strategiccommunication. The communication strategy wasdeveloped in a highly participatory manner andincluded two-way communication activities developedto address the practices and behaviors that wouldneed to be changed in order for the project to besuccessful, rather than merely disseminating messagesbased on assumptions of project benefits.

This publication is the first in a series of WorkingPapers sponsored by the Development CommunicationDivision (DevComm) of the World Bank. This series isdesigned to share innovations and lessons learned inthe application of strategic communication indevelopment projects.

Institutions, Performance, and the Financing ofInfrastructure Services in the Caribbean

Edited by Abhas Kumar JhaPrice: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-6280-1SKU: 16280

This book reviews theaccess to services,investment needs, tariffs,and efficiency of 15Caribbean countries acrossfive infrastructure sectors

(telecommunications, electricity, water and sanitation,maritime transport and ports, and airports and airservices).

The Regulation of Investment in Utilities: Conceptsand Applications

By Clive Harris and Ian AlexanderPrice: $ 22.00English PaperbackPublished July 2005ISBN: 0-8213-6152-X SKU: 16152

Regulatory institutions and the regimes that theyestablish have a significant impact on the environmentfor new investment in utility and infrastructureindustries. especially investment from the private

President, Jim Wolfensohnand then Archbishop ofCanterbury, George Carey,when they convened ameeting of faith anddevelopment leaders inLambeth Palace. Theintervening years haveseen the growth of anetwork of world faith anddevelopment leaders whoshare a common passion

to eradicate global poverty, extend social justice andensure global security for all of the world’s people.Periodically this group of leaders gathers together todebate issues of common concern and globalsignificance. The most recent meeting took place inDublin, Ireland in Janaury 2005. This book tells thestory of this partnership, within the context of theDublin meeting.

Judicial Systems in Transition Economies:Assessing the Past, Looking to the Future

By James Anderson,David Bernstein andCheryl GrayPrice: $ 20.00English PaperbackPublished June 2005ISBN: 0-8213-6189-9SKU: 16189

This book looks at theexperience of countries in

Central and Eastern Europe and the Baltics (CEE) andthe Commonwealth of Independent States (CIS) asthey reform their legal and judicial institutions to fit theneeds of a market economy. The study shows, ratherdisturbingly, that less progress has been made injudicial reform than in most other areas of institutionalreform in these countries.

Health System Innovations in Central America:Lessons and Impact of New Approaches

Edited byGerard M. La Forgia

Price: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-6278-XSKU: 16278

During the 1990s, CentralAmerican countries facedpressures to improve theirhealth systems. This book

reports on innovative experiences in various countries– a hospital in Panama, a nutrition program in Honduras,primary care extension in Guatemala, a subset of hospitalsand primary care units in Costa Rica and a social security-managed health care program in Nicaragua.

18

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The World Bank in India • September 2005

sector. This book examines techniques developed byregulators over the past decade to deal with howinvestment issues have been factored into regulatoryprice controls.

Intergovernmental Fiscal Relations in Central andEastern Europe: A Sourcebook and ReferenceGuide

By Francis J. Conway,Brien E. Desilets,Peter B. Epstein, Juliana H.Pigey, Graeme Frelickand Fred Rosensweig

Price: $ 20.00EnglishPublished July 2005ISBN: 0-8213-5705-0SKU: 15705

Produced by the Urban Institute for the United StatesAgency for International Development and the WorldBank Institute, the sourcebook gives access to andinformation on intergovernmental finance issues inCentral and Eastern Europe by providing electroniclinks to a large number of documents included on aCD-ROM. Countries covered: Albania, Bulgaria, CzechRepublic, Hungary, Latvia, Macedonia, Poland, andRomania.

What Determines U.S. Swap Spreads?

By Adam Kobor,Lishan Shi and IvanZelenkoPrice: $ 10.00English PaperbackPublished July 2005ISBN: 0-8213-6338-7SKU: 16338

This title examines theevolution of the U.S.interest swap market.It reviews the theory and

past empirical studies on U.S. swap spreads andestimates an error correction model for maturities of 2-,5- and 10-year over the period 1994–2004. Financialtheory depicts swaps as contracts indexed on LIBORrates, rendered almost free of counterparty default riskby mark-to-market and collateralization. Swap spreadsreflect the LIBOR credit quality (credit component) anda liquidity convenience premium present in Treasuryrates (liquidity component). Multifactor models whichwere estimated on observed swap rates highlighted thecentral role played by the liquidity component inexplaining swap spread dynamics over the past fifteenyears. They also found, however, some puzzlingempirical results. Statistical models, on the other hand,mainly based on market analysis, faced technicaldifficulties, arising from the presence of regime changes,the non-stationarity in swap spreads, and the co-existence of long-term and shorter-term determinants.

Against this background, the authors applied the errorcorrection methodology based on the concept ofcointegration. They find that U.S. dollar swap spreadsand the supply of U.S. Treasury bonds arecointegrated, suggesting that the Treasury supply is akey determinant on a long-term horizon. They thenestimate an error correction model which integratesthis long-term relationship with the influence of fourshorter-term determinants: the AA spread, the reporate, the difference between on-the-run and off-the-runyields, and the duration of mortgage backed securities.The error correction model fits observed swap spreadsquite well over the sample period. The authors thenillustrate how the same model can be used to carry outscenario analysis.

Ukraine’s Trade Policy: A Strategy for Integrationinto Global Trade

By World BankPrice: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-6286-0SKU: 16286

Ukraine’s Trade Policyidentifies the key drivers ofUkraine’s recent tradeperformance, assessescurrent trade policies, andproposes recommendations

to strengthen the Ukraine’s trade integration strategy.It also identifies core bottlenecks in the ongoingintegration processes, including global and regionalintegration.

Reversing the Tide: Priorities for HIV/AIDSPrevention in Central Asia

By Joana Godinho,Adrian Renton, ViatcheslavVinogradov, ThomasNovotny and Mary-JaneRivers

Price: $ 25.00English PaperbackPublished June 2005ISBN: 0-8213-6230-5SKU: 16230

Although the number ofreported cases of HIV in

Central Asia is still very low, the growth rate of theepidemic (from about 500 cases in 2000 to over 12,000in 2004) is a cause for serious concern. Central Asialies along the drug routes from Afghanistan to Russiaand Western Europe, and it is estimated that it hashalf a million drug users, of which more than half injectdrugs. Without concerted action, we may expect tosee the rapid development of an HIV epidemicconcentrated among injecting drug users over the nextfour or five years, followed by the spread among the

19

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The World Bank in India • September 200520

15- to 30-year-old population, with sexual transmissionas the predominant mode. This would follow thepattern of the epidemic in other regional countries suchas Russia, Ukraine, and Moldova.

Despite growing regional commitment and resourcesto prevent and control the epidemic, there are,however, a number of issues that are not beingadequately addressed. This study identifies criticalgaps, and makes recommendations for further actionthat will ensure effective early prevention of HIV/AIDSin Central Asia.

Stopping Tuberculosis in Central Asia: Prioritiesfor Action

By Joana Godinho,Jaap Veen, James Cercone,Jose Pacheco and MasoudDaraPrice: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-6276-3SKU: 16276

Stopping Tuberculosis inCentral Asia reviews theepidemiological situation,

control efforts, and financing of tuberculosis programsin Kazakhstan, Kyrgyz Republic, Tajikistan, andUzbekistan. This study has confirmed that it is highlyunlikely that these Central Asian republics will succeedin achieving the global targets for tuberculosis controlin the short term, particularly with regard to casedetection. In the meantime, the epidemic continues tohave a serious epidemiological impact and affects theeconomies of these countries, which incur productivitylosses and indirect costs that are estimated to rangefrom 0.5 to 0.8 percent of GDP annually.

Beyond Reforms: Structural Dynamics andMacroeconomic Vulnerability

Edited by Jose AntonioOcampoPrice: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-5819-7SKU: 15819

Beyond Reform arguesthat economic growth indeveloping countries isintrinsically tied to thedynamics of productionstructures, to the specific

policies and institutions created to support it, and thecreation of linkages among domestic firms and sectors.Avoiding macroeconomic instability is also essential;however, macroeconomic stability is not a sufficientcondition for growth. The broader institutional contextand the adequate provision of education and

infrastructure are essential framework conditions,but generally do not play a direct role in bringing aboutchanges in the momentum of economic growth.

2004 Annual Review of Development Effectiveness:The World Bank’s Contributions to PovertyReduction

By Christopher D. GerrardPrice: $ 22.00English PaperbackPublished July 2005ISBN: 0-8213-6303-4SKU: 16303

The 2004 Annual Review ofDevelopment Effectivenesslooks at the recent growthand poverty reductionexperience of client

countries. It assesses the extent to which Bankinterventions have contributed to growth and povertyreduction and the effectiveness of different types ofinterventions. The review uses the key elements of theBank’s 2001 poverty reduction strategy to examine theextent to which these elements respond to the needsof the poor.

miniatlas of Millennium Development Goals:Building a Better World

By World BankPrice: $ 7.00English PaperbackPublished July 2005ISBN: 0-8213-6175-9 SKU: 16175

The Millennium Development Goals – signed by 189countries in 2000 – set clear targets for reducingpoverty and other sources of human deprivation andfor promoting sustainable development. But how farare we towards meeting these goals? The third volumein the miniatlas series is an at-a-glance guide to theworld’s most pressing problems and challenges.Illustrated in a clear and accessible format, theminiatlas presents colorful world maps and engaginggraphics that provide a wealth of information for over200 countries and territories on today’s key globalissues, from eradicating poverty and reducing childmortality to eliminating HIV/AIDS and promotingenvironmental sustainability.

Compulsory Licensing for Public Health: A Guideand Model Documents for Implementation of theDoha Declaration Paragraph 6 Decision

By Frederick M. Abbott and Rudolf V. Van PuymbroeckPrice: $ 10.00English PaperbackPublished July 2005ISBN: 0-8213-6292-5 SKU: 16292

This work addresses the complexity of the WTO’sAugust 30, 2003 decision on the implementation of

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The World Bank in India • September 2005 21

paragraph 6 of the Doha Declaration on the TRIPSAgreement and Public Health. It provides anexplanation of the decision and model legal texts forthe required notifications to the WTO and for theamendments of their patent law that most developingcountries will need to pass in order to incorporate thedecision in their domestic legal framework.

Education in Ethiopia: Strengthening theFoundation for Sustainable Progress

By World BankPrice: $ 30.00English PaperbackPublished July 2005ISBN: 0-8213-6226-7 SKU: 16226

With the end of civil war in 1991, Ethiopia’s governmentlaunched a New Education and Training Policy in 1994which, by the early 2000s, had already producedremarkable results. The gross enrollment ratio rosefrom 20 to 62 percent in primary education between1993-94 and 2001-02; and in secondary and highereducation it climbed, respectively, from 8 to 12 percentand from 0.5 to 1.7 percent. Yet the government canhardly afford to rest on its laurels. Primary education isstill not universal, and already there are concerns aboutplummeting educational quality and the growingpressures to expand post-primary education.

Addressing these challenges will require moreresources, both public and private. Yet money aloneis insufficient. Focusing on primary and secondaryeducation, Education in Ethiopia argues for wisetradeoffs in the use of resources – a result that willoften require reforming the arrangements for servicedelivery. These changes, in turn, need to be fostered bygiving lower levels of government more leeway toadapt central standards – such as those for teacherrecruitment and school construction – to localconditions, including local resource constraints; andby strengthening accountability for results at all levelsof administration in the education system.

Higher Education in Latin America: TheInternational Dimension

Edited by Hans de Wit, Isabel Cristina Jaramillo,Jane Knight and Jocelyne Gacel-Ávila

Price: $ 40.00English PaperbackPublished August 2005ISBN: 0-8213-6209-7 SKU: 16209

The globalization of our economies and societieshas an impact on our higher education sector, evenas higher education influences this process ofglobalization. Higher Education in Latin America: TheInternational Dimension provides a comparativeanalysis of internationalization issues, trends andopportunities in higher education in selected LatinAmerican countries at the institutional, national andregional level. These countries include Argentina,Brazil, Chile, Colombia, Cuba, Mexico and Peru.

Public Expenditure Analysis

Edited by Anwar ShahPrice: $ 35.00English PaperbackPublished June 2005ISBN: 0-8213-6144-9 SKU: 16144

Public Expenditure Analysis for Citizen-CenteredGovernance explores two themes: the orientation ofgovernment towards its more vulnerable groups andthe extent to which government is responsive to itscitizens. The first part of the book provides tools,methodologies, and examples of how to examine theimpact of government expenditures, taxes, pensionsystems and other policies on women, the poor, andthe elderly. The second part looks at the different waysthat the government listens to citizens’ voices andproposes a new institutional framework forgovernments that wish to implement reforms thatincrease responsiveness: citizen-centered governmentand citizen-centered budgeting.

Preventing HIV/AIDS in the Middle East andNorth Africa: A Window of Opportunity to Act

by Francisca Ayodeji Akala and Carol JenkinsPrice: $ 10.00English 108 pagesPublished August 2005ISBN: 0-8213-6264-X SKU: 16264

The HIV/AIDS epidemic has the potential to impedeand even reverse development if not addressed earlyenough. Poverty and income inequality have beenshown to facilitate the diffusion of HIV epidemics.While abject poverty in the Middle East and NorthAfrica region remains low, a significant proportion ofthe population (23.2 percent) live under $2 per day andare extremely vulnerable in their ability to cope withshocks.

In order to preserve the benefits of national andregional development investments put in place bygovernments, and donor agencies, greater investmentsto improve HIV/AIDS advocacy, information andprevention strategies are needed now to maintain thecurrent low prevalence levels. This title outlines the roleof the Bank in confronting the HIV/AIDS epidemic inthe region based on a review of needs and gaps at theregional and country level.

The latest issue of Development OUTREACHmagazine, features aspecial report on Disabilityand InclusiveDevelopment. Here is thelink where you can view it:http://www1.worldbank.org/devoutreach

This issue of the magazineis meant to leverage themomentum created by the

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The World Bank in India • September 2005

Disability and Inclusive Development Conference,which took place at the World Bank office inWashington last December. The guest editor, Jean-Louis Sarbib, Senior Vice President, HDN notes that“The fight against poverty will not succeed withoutfocused efforts to address the needs of people withdisabilities.” He further says of this specialissue,”“Each article contributes to a fullerunderstanding of each other article, and each can befully appreciated only in the context of the entire bodyof work on the subject.”

The special report was designed to bring togetherexperiences and policies from practitioners in the field.Therefore, the authors are disability specialists whowrite on the overall disability movement, how their ownorganizations are addressing disability issues, and howthey view the ongoing work of the Bank. The articlescover topics such as access through technology,independent living, enabling disabled children,empowering women with disabilities, improvingservices for the disabled, inclusive education, disabilityand HIV/AIDS, broadcasting on disability, and inclusivedevelopment in post-conflict societies.

India Project Documents

Fal-G (Fly Ash-Lime-Gypsum) Bricks Project

Date 5 Aug 2005Project ID P090163Report No. 33349 (Program Information Document)

33350 (Integrated Safeguards DataSheet)

Second National Tuberculosis Control Project

Date 27 July 2005Project ID P078539Report No. 33158 (Program Information Document)

West Bengal Health Systems Project

Date 25 July 2005Project ID P085291Report No. AC1646 (Integrated Safeguards Data

Sheet)

Second Uttar Pradesh Diversified AgricultureSupport Project

Date 20 July 2005Project ID P089484Report No. AC1665 (Integrated Safeguards Data

Sheet)

Vector Borne Disease Control Project

Date 19 July 2005Project ID P094360Report No. AC1570 (Integrated Safeguards Data

Sheet)

Rural Telecommunications Development Project

Date 18 July 2005Project ID P093925Report No. AC1613 (Integrated Safeguards Data

Sheet)

Bihar Rural Livelihoods Development Project

Date 11 July 2005Project ID P090764Report No. AB1355 (Project Information Document)

AC1683 (Integrated Safeguards DataSheet)

Second National Leprosy Elimination Project

Date 23 June 2005Project ID P067543Report No. 32044 (Implementation Completion

Report

Second Tamil Nadu Urban Development Project

Date 31 May 2005Project ID P050637Report No. 32456 (Implementation Completion

Report)

Reproductive and Child Health Project

Date 27 May 2005Project ID P010531Report No. 30479 (Implementation Completion

Report)

Latest on the Website

Rapid Response proudly presents the World BankGroup’s first venture into the blogosphere, PrivateSector Development Blog: A market approach todevelopment thinking. The new PSD Blog is availableonline at: http://psdblog.worldbank.org/.

PSD Blogalerts you tonews, ideas,research, Websites, andbooks on therole of privateenterprise infightingpoverty and

spurring growth. The blog is informal and representsthe quirks and opinions of the bloggers, not the WorldBank Group.

The blog also highlights the latest resources as theyare published on the Rapid Response Web site.

If you would like to subscribe to the PSD Blog RSSfeed, please use the following link: http://psdblog.worldbank.org/psdblog/index.rdf. This linkwill only work if you have an RSS reader.

22

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The World Bank in India • September 2005

3683Competitiveness partnerships: building andmaintaining public-private dialogue to improve theinvestment climate - a resource drawn from thereview of 40 countries’ experiences by BenjaminHerzberg and Andrew Wright

3682The poverty and distributional impact ofmacroeconomic shocks and policies: a review ofmodeling approaches by B. Essama-Nssah

3681Productivity, ownership, and the investment climate:international lessons for priorities in Serbia by ItzhakGoldberg, Branko Radulovic and Mark Schaffer

3680Are external shocks responsible for the instability ofoutput in low income countries? by Claudio Raddatz

3679The marginal cost of public funds in Africaby Michael Warlters and Emmanuelle Auriol

3678Why have traffic fatalities declined in industrializedcountries? Implications for pedestrians and vehicleoccupants by Elizabeth Kopits and Maureen Cropper

3677Inequality is bad for the poor by Martin Ravallion

3676Trade and employment: stylized facts and researchfindings by Bernard Hoekman and L. Alan Winters

3675Business environment, clustering, and industrylocation: evidence from Indian cities by Somik V. Lalland Taye Mengistae

3674Public debt in developing countries: has the market-based model worked? by Indermit Gill; Brian Pinto

3673The overhang hangoverby Jean Imbs and Romain Ranciere

3672The dot-com bubble, the Bush deficits, and the U.S.current account by Aart Kraay and Jaume Ventura

3671An Analysis of South Africa’s Value Added Taxby Delfin S. Go, Marna Kearney, Sherman Robinsonand Karen Thierfelder

3670Will a global subsidy of artemisinin-basedcombination treatment (ACT) for malaria delay theemergence of resistance and save lives? by RamananLaxminarayan, Mead Over and David L. Smith

3669Money for nothing: The dire straits of medical practicein Delhi, India by Jishnu Das and Jeffrey Hammer

23

World Bank Policy Research Working Papers

3668Economic impacts of professional training in the informalsector: The case of the labor force training program inCote d’Ivoire by Dorte Verner and Mette Verner

3667Does health insurance impede trade in health careservices? by Aaditya Mattoo and Randeep Rathindran

3666Bank privatization and productivity: evidence for Brazilby Marcio I. Nakane and Daniela B. Weintraub

3665Credit constraints as a barrier to technology adoptionby the poor: lessons from South Indian small-scalefishery by Xavier Gine and Stefan Klonner

3664The impact of business environment and economicgeography on plant-level productivity: An analysis ofIndian industry by Somik V. Lall and Taye Mengistae

3663Services policy reform and economic growth intransition economies, 1990-2004 by Felix Eschenbachand Bernard Hoekman

3662Micro-level estimation of child malnutrition indicatorsand its application in Cambodia by Tomoki Fujii

3661Public infrastructure and private investment in theMiddle East and North Africa by Pierre-Richard Agenor,Mustapha K. Nabli and Tarik M. Yousef

3660Do incumbents manipulate access to finance duringbanking crises? by Erik Feijen

3659Banking sector crises and inequality by Patrick Honohan

3658Antidumping mechanisms and safeguards in Peruby Richard Webb, Josefina Camminati and Raul LeonThorne

3657Institution building and growth in transition economiesby Thorsten Beck and Luc Laeven

3656World Bank lending and financial sector developmentby Robert Cull and Laurie Effron

3655Fiscal federalism in Switzerland: relevant issues fortransition economies in Central and Eastern Europeby Bernard Dafflon and Krisztina Toth

3654Crop insurance in Karnataka by Vijay Kalavakondaand Olivier Mahul

3653Regime-switching in exchange rate policy and balancesheet effects by Norbert Fiess and Rashmi Shankar

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