info of world bank

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CHAPTER 1
INTRODUCTION TO WORLD BANK





















World Bank

Motto Working for a World Free of Poverty
Established July 1944
Type International organization
Legal status Treaty
Purpose/focus Crediting
Location Washington, D.C., U.S.
Membership 188 countries (IBRD)
172 countries (IDA)
President Jim Yong Kim
Main organisation Board of Directors
Parent organization World Bank Group

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MEANING

The World Bank is an international financial institution that provides loans
to developing countries for capital programs.
The World Bank's official goal is the reduction of poverty. According to its
Articles of Agreement (as amended effective 16 February 1989), all its
decisions must be guided by a commitment to the promotion of foreign
investment and international trade and to the facilitation of capital
investment. The World Bank comprises two institutions: the International
Bank for Reconstruction and Development (IBRD) and the International
Development Association (IDA).
The World Bank should not be confused with the World Bank Group, which
comprises the World Bank, the International Finance Corporation (IFC), the
Multilateral Investment Guarantee Agency (MIGA), and the International
Centre for Settlement of Investment Disputes (ICSID).

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HISTORY


The World Bank was created at the 1944 Bretton Woods Conference, along
with three other institutions, including the International Monetary Fund
(IMF). The World Bank and the IMF are both based in Washington DC, and
work closely with each other.
Although many countries were represented at the Bretton Woods
Conference, the United States and United Kingdom were the most powerful
in attendance and dominated the negotiations.
Traditionally, the World Bank has been headed by a citizen of the United
States, while the IMF has been led by a European citizen.

1944–1968
Before 1968, the reconstruction and development loans provided by the
World Bank were relatively small. The Bank's staff was aware of the need to
instill confidence in the bank. Fiscal conservatism ruled, and loan
applications had to meet strict criteria

1968–1980

From 1968 to 1980,the bank concentrated on meeting the basic needs of
people in the developing world. The size and number of loans to borrowers
was greatly increased as loan targets expanded from infrastructure into
social services and other sectors.

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1980–1989

In 1980, McNamara was succeeded by US President Jimmy Carter's
nominee, A.W. Clausen. Clausen replaced many members of McNamara's
staff and instituted a new ideological focus. His 1982 decision to replace the
bank's Chief Economist, Hollis B. Chenery, with Anne Krueger was an
indication of this new focus. Krueger was known for her criticism of
development funding and for describing Third World governments as "rent-
seeking states."

PURPOSE OF THE WORLD BANK

Purposes of The World Bank
• Granting reconstruction loans to war devastated countries.
• Providing loans to governments for agriculture, irrigation, power,
transport, water supply, educations, health etc.
• Promoting foreign investment by guaranteeing loans provided by other
organizations.
• Encouraging industrial development of underdeveloped countries by
promoting economic reforms.
• Providing technical, economic and monetary advice to member countries
for specific projects.

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PROCUREMENT:

The World Bank works to ensure that procurement in Bank-financed
projects and programs is conducted in accordance with its Articles of
Agreement, which require that loan proceeds are used only for the purposes
for which the loan, grant, or credit was granted. The Procurement Policy and
Services Group of the World Bank is charged with providing the Policy and
Guidance necessary to carry out this mandate for the Bank’s operational
clients.
The Bank gives equal importance to supporting the management and reform
of public procurement systems in borrower countries. Increasing the
efficiency, fairness, and transparency of the expenditure of public resources
is critical to sustainable development and the reduction of poverty.

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CHAPTER 2:

FORMATION OF WORLD BANK

MEMBERS:

The International Bank for Reconstruction and Development (IBRD) has
188 member countries, while the International Development
Association (IDA) has 172 members. Each member state of IBRD should be
also a member of the International Monetary Fund (IMF) and only members
of IBRD are allowed to join other institutions within the Bank (such as
IDA).

World Bank Made up of 5 different organizations: –

 International Bank for Reconstruction and Development (IBRD)
 International Development Association (IDA)
 International Finance Corporation (IFC)
 Multilateral Investment Guarantee Agency (MIGA)
 International Center for the Settlement of Investment Disputes
(ICSID)

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International Bank for Reconstruction and Development
(IBRD)

The IBRD came into existence in 1945 and currently has 188 member
countries. These countries also must be members of the International
Monetary Fund. The IBRD is a bank with the highest rating (AAA) and can
borrow funds on the global financial markets at the most favourable
conditions and can then lend them to its members (developing countries in
particular). The IBRD offers mid- and long-term loans, usually for a period
of 15-20 years, with a repayment holiday of up to 5 years. The provided
loans must be backed by governmental guarantees.

Goals of the institution

 supporting sustainable economic development and reducing poverty in
member countries, mainly through the provision of loans and technical
services for certain projects and programmes of economic reform aimed
at economic and social needs in health care, education, regional
development and basic infrastructure
 supporting the comprehensive and consistent development of
international trade and maintaining the balance of accounts of payments
 providing financial support to governments when reforming structural
and social policies which are crucial for more effective development of
both the private and public sectors and the reduction of poverty

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Capital

 initial deposits by members (bonds)
 money gained by issuing short-term or long-term bonds
 loans from financial market and governmental agencies
 profits from its own active operations

IBRD bodies

The Board of Governors is the highest managing body; all member
countries appoint a governor and an alternate to the Board. This position is
usually taken by Ministers of Finance or Central bank Governors.
The Board of Executive Directors has 24 Executive Directors who are
responsible for the general activities of the institution

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International Development Association (IDA)
The International Development Association was established in 1960 and
currently has 165 member countries. The IDA's managing bodies are
identical to those of the IBRD.
Goals of the institution

 providing help to the poorest developing countries under such conditions
which do not burden the balance of payments of these countries to the
extent of IBRD loans. This help currently focuses mainly on countries
with an annual GDP per capita lower than USD 1,025
 stimulating economic and social progress in developing countries through
productivity growth, thus improving living conditions in those countries
 providing technical assistance
 providing advisory services

Capital

 initial deposits by members (bonds)
 contributions from member countries
 profits achieved in the IDA

The IDA provides loans only to governments of developing countries for
a period of 35-40 years with a 10-year repayment holiday and with no
interest charge. Only an annual administrative fee amounting to 0.75% of
each loan provided must be paid.

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International Finance Corporation (IFC)


The IFC was established in 1956 and currently has 178 member countries.
The IFC provides loans for development projects, without the guarantee of
the corresponding government, for a period of 3-12 years, with a repayment
holiday up to 3 years. The IFC receives the necessary capital by issuing
bonds in member countries. IFC activities are often connected to PHARE
activities.

Goals of the institution

 helping develop the private sector, especially in developing countries
 helping develop local capital markets through international capital inflow
advisory services
 preparing and training of economic staff
 advising governments on how to improve conditions for private
investments (e.g. helping them develop domestic investment markets and
restructuring and privatising state-owned companies)

IFC bodies

IFC managing bodies are identical with those of the World Bank. The IFC
also has an independent bank advisory committee with representatives from
eight world banks and a business advisory council comprising representative
from 39 globally important companies.

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Multilateral Investment Guarantee Agency (MIGA)

The MIGA was established in 1988 and formally started its operations in
1990. It currently has 167 members. The MIGA's managing bodies include
the Board of Governors and the Board of Directors.
Goals of the institution

 supporting the inflow of foreign investment into the production sector of
member countries, especially in developing countries
 providing guarantees to foreign investors against losses connected to
political risks
 providing advisory and consultancy services

Capital

 initial deposits by members (bonds)
 contributions by member countries
 profits achieved in the MIGA

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International Centre for Settlement of Investment Disputes
(ICSID)

The ICSID is an autonomous international institution established in 1966
under the auspices of the World Bank under the Convention on the
Settlement of Investment Disputes between States and Nationals of Other
States (Convention). As of January 2006, the Convention had been signed by
155 countries and ratified by 143 of them.
Goals of the institution

 solving investment disputes between member countries and foreign
investors who are nationals of other member countries. Member countries
which signed the Convention agree that the decisions by the arbitral
tribunal should be binding for both parties, i.e. both parties are obliged to
comply with and fulfil the conditions of such decisions. A breach of this
agreement can be a matter for a court proceeding at the International
Court of Justice in The Hague
 solving ad hoc disputes which are dealt with according to the
arbitrational rules of the United Nations Commission on International
Trade Law (UNCITRAL)
 creating and harmonising legal norms.

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ICSID bodies

The Administrative Council is comprised of members appointed by each
country which has signed the Convention. The president of the
Administrative Council is the President of the World Bank. The annual
Council meetings are held together with the Annual Meetings of the IMF
and World Bank. The Secretariat of the ICSID administers arbitral
proceedings.

VOTING POWER
In 2010, voting powers at the World Bank were revised to increase the voice
of developing countries, notably China. The countries with most voting
power are now the United States (15.85%), Japan (6.84%), China (4.42%),
Germany (4.00%),United Kingdom (3.75%), France (3.75%), India (2.91%),
Russia (2.77%), Saudi Arabia (2.77%) and Italy (2.64%). Under the
changes, known as 'Voice Reform – Phase 2', countries other than China that
saw significant gains included South Korea, Turkey, Mexico,
Singapore, Greece, Brazil, India, and Spain. Most developed countries'
voting power was reduced, along with a few poor countries such as Nigeria.
The voting powers of the United States, Russia and Saudi Arabia were
unchanged.
The changes were brought about with the goal of making voting more
universal in regards to standards, rule-based with objective indicators, and
transparent among other things. Now, developing countries have an
increased voice in the "Pool Model," backed especially by Europe.

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Additionally, voting power is based on economic size in addition to
International Development Association contributions.

The Five Pillars

1. Integrate China into the world economy
2. Reduce poverty, inequality, and social exclusion
3. Resource management and environmental challenges
4. Development of capital markets
5. Improving public and market institutions

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Chapter 3:
CRITISIM AND BENEFITS OF WORLD BANK
TO COUNTRIES

The World Bank has long been criticized by non-governmental
organizations, such as the indigenous rights group Survival International,
and academics, including its former Chief Economist Joseph Stiglitz, Henry
Hazlitt and Ludwig Von Mises. Henry Hazlitt argued that the World Bank
along with the monetary system it was designed within would promote
world inflation and "a world in which international trade is State-dominated"
when they were being advocated. Stiglitz argued that the so-called free
market reform policies which the Bank advocates are often harmful
to economic development if implemented badly, too quickly ("shock
therapy"), in the wrong sequence or in weak, uncompetitive economies.

One of the strongest criticisms of the World Bank has been the way in which
it is governed. While the World Bank represents 188 countries, it is run by a
small number of economically powerful countries. These countries (which
also provide most of the institution's funding) choose the leadership and
senior management of the World Bank, and so their interests dominate the
bank. Titus Alexander argues that the unequal voting power of western
countries and the World Bank's role in developing countries makes it similar
to the South African Development Bank under apartheid, and therefore a
pillar of global apartheid.

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In the 1990s, the World Bank and the IMF forged the Washington
Consensus, policies which included deregulation and liberalization of
markets, privatization and the downscaling of government. Though the
Washington Consensus was conceived as a policy that would best promote
development, it was criticized for ignoring equity, employment and how
reforms like privatization were carried out. Joseph Stiglitz argued that the
Washington Consensus placed too much emphasis on the growth of GDP,
and not enough on the permanence of growth or on whether growth
contributed to better living standards.
The United States Senate Committee on Foreign Relations report criticized
the World Bank and other international financial institutions for focusing too
much "on issuing loans rather than on achieving concrete development
results within a finite period of time" and called on the institution to
"strengthen anti-corruption efforts".
Criticism of the World Bank often takes the form of protesting as seen in
recent events such as the World Bank Oslo 2002 Protests, the October
Rebellion, and the Battle of Seattle. Such demonstrations have occurred all
over the world, even amongst the Brazilian Kayapo people.
Another source of criticism has been the tradition of having an American
head the bank, implemented because the United States provides the majority
of World Bank funding. "When economists from the World Bank visit poor
countries to dispense cash and advice," observed The Economist in 2012,
"they routinely tell governments to reject cronyism and fill each important
job with the best candidate available. It is good advice. The World Bank

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should take it." Jim Yong Kim is the most recently appointed president of
the World Bank.


Structural adjustment

The effect of structural adjustment policies on poor countries has been one
of the most significant criticisms of the World Bank. The 1979 energy
crisis plunged many countries into economic crisis. The World Bank
responded with structural adjustment loans which distributed aid to
struggling countries while enforcing policy changes in order to reduce
inflation and fiscal imbalance. Some of these policies included
encouraging production, investment and labour-intensive manufacturing,
changing real exchange rates and altering the distribution of government
resources. Structural adjustment policies were most effective in countries
with an institutional framework that allowed these policies to be
implemented easily. For some countries, particularly in Sub-Saharan Africa,
economic growth regressed and inflation worsened. The alleviation of
poverty was not a goal of structural adjustment loans, and the circumstances
of the poor often worsened, due to a reduction in social spending and an
increase in the price of food, as subsidies were lifted.
By the late 1980s, international organizations began to admit that structural
adjustment policies were worsening life for the world's poor. The World
Bank changed structural adjustment loans, allowing for social spending to be
maintained, and encouraging a slower change to policies such as transfer of
subsidies and price rises. In 1999, the World Bank and the IMF introduced

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the Poverty Reduction Strategy Paper approach to replace structural
adjustment loans. The Poverty Reduction Strategy Paper approach has been
interpreted as an extension of structural adjustment policies as it continues to
reinforce and legitimize global inequities. Neither approach has addressed
the inherent flaws within the global economy that contribute to economic
and social inequities within developing countries. By reinforcing the
relationship between lending and client states, many believe that the World
Bank has usurped indebted countries' power to determine their own
economic policy.

Fairness of assistance conditions


Some critics, most prominently the author Naomi Klein, are of the opinion
that the World Bank Group's loans and aid have unfair conditions attached to
them that reflect the interests, financial power and political doctrines
(notably the Washington Consensus) of the Bank and, by extension, the
countries that are most influential within it. Amongst other allegations, Klein
says the Group's credibility was damaged "when it forced school fees on
students in Ghana in exchange for a loan; when it demanded that Tanzania
privatise its water system; when it made telecom privatisation a condition of
aid for Hurricane Mitch; when it demanded labour "flexibility" in Sri Lanka
in the aftermath of the Asian tsunami; when it pushed for eliminating food
subsidies in post-invasion Iraq."

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Sovereign immunity


The World Bank requires sovereign immunity from countries it deals
with. Sovereign immunity waives a holder from all legal liability for their
actions. It is proposed that this immunity from responsibility is a "shield
which [The World Bank] wants to resort to, for escaping accountability and
security by the people." As the United States has veto power, it can prevent
the World Bank from taking action against its interests

BENEFITS OF WORLD BANK

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Chapter 4:
THE INTERNATIONAL MONETARY FUND
AND WORLD BANK

The IMF and the World Bank are institutions in the United Nations system.
They share the same goal of raising living standards in their member
countries. Their approaches to this goal are complementary, with the IMF
focusing on macroeconomic issues and the World Bank concentrating on
long-term economic development and poverty reduction
The International Monetary Fund and the World Bank were both created at
an international conference convened in Bretton Woods, New Hampshire,
United States in July 1944. The goal of the conference was to establish a
framework for economic cooperation and development that would lead to a
more stable and prosperous global economy. While this goal remains central
to both institutions, their work is constantly evolving in response to new
economic developments and challenges.

The IMF’s mandate:
The IMF promotes international monetary cooperation and provides policy
advice and technical assistance to help countries build and maintain strong
economies. The Fund also makes loans and helps countries design policy
programs to solve balance of payments problems when sufficient financing
on affordable terms cannot be obtained to meet net international payments.

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IMF loans are short and medium term and funded mainly by the pool of
quota contributions that its members provide. IMF staff are primarily
economists with wide experience in macroeconomic and financial policies.

The World Bank’s mandate:
The World Bank promotes long-term economic development and poverty
reduction by providing technical and financial support to help countries
reform particular sectors or implement specific projects—for example,
building schools and health centers, providing water and electricity, fighting
disease, and protecting the environment. World Bank assistance is generally
long term and is funded both by member country contributions and through
bond issuance. World Bank staff are often specialists in particular issues,
sectors, or techniques.

THE WORLD BANK OPERATION:

 The World Bank exists to encourage poor countries to develop by
providing them with technical assistance and funding for projects and
policies that will realize the countries’ economic potential.
 The Bank views development as a long- term, integrated endeavor.
During the first two decades of its existence, two thirds of the
assistance pro- vided by the Bank went to electric power and
transportation projects. Although these so-called infrastructure
projects remain important, the Bank has diversified its activities in
recent years as it has gained experience with and acquired new in-
sights into the development process.

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 The Bank gives particular attention to projects that can directly benefit
the poorest people in developing countries. The direct involvement of
the poorest in economic activity is being promoted through lending
for agriculture and rural development, small-scale enterprises, and
urban development.
 The Bank is helping the poor to be more productive and to gain access
to such necessities as safe water and waste-disposal facilities, health
care, family-planning assistance, nutrition, education, and housing.
Within infrastructure projects there have also been changes.

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Chapter 5
WORLD BANK IN INDIA
India Projects & Programs:
The World Bank Group’s Partnership Strategy for India (2013-2017) will
help India lay the foundations for achieving “faster, sustainable, and more
inclusive growth” as outlined in the government’s 12th five year plan. The
World Bank Group will support India with an integrated package of
financing, advisory services, and knowledge. As of July 2013, total net
commitments in India stood at $22.3 billion (IBRD $12.6 billion, IDA $ 9.7
billion) across 78 projects.

Maharashtra Rural Water Supply and Sanitation
Program

The objective of the Maharashtra Rural Water Supply and Sanitation
Program Project (RWSS) for India is to improve the performance of
Maharashtra's sector institutions in planning, implementation and monitoring
of its Rural Water Supply and Sanitation Program and to improve access to
quality and sustainable services in peri-urban villages, and in water-stressed
and water quality-affected areas. India has been one of the fastest growing
economies in the last decade, but its economy now shows signs of slowing

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down. Between 2004 and 2011, a period that includes the global financial
crisis, India's growth averaged 8.3 percent per year. Expanding social
programs lowered the poverty rate by 1.5 percentage points per year during
2004-09, double the rate of the preceding decade. India's growth rate
however slipped to a decade low of 5 percent in 2012-13 due to a
combination of domestic and external factors, including high inflation, high
fiscal deficit and weak external demand for the country's exports. This
slowdown carries high social costs for millions of Indians, and threatens the
gains made in poverty reduction over the past decade. Under its current 10-
year RWSS program, Government of Maharashtra (GoM) seeks to
significantly expand the frontiers in the sector with a focus on increasing
house connection coverage, ensuring continuous water supply with adequate
pressure and minimum quality standards, and ensuring that 100 percent of
the rural population has access to safe water and basic sanitation. However,
delivering this vision requires building capacities of institutions through
appropriate implementation and management models. Maharashtra is also a
rapidly urbanizing state with many large villages (each with a population of
more than 10,000 people) and a growing number of peri-urban areas that are
demanding higher levels of service. Finally, the state also faces challenges in
addressing the needs of water-stressed and water quality affected areas,
managing drinking water quality, and ensuring drinking water security in the
face of increasing droughts and climate change impacts on rainfall patterns
and the yield of existing sources

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INDIA: UTTRAKHAND RWSS ADDI TIONAL
FINANCING
The development objective of the Additional Financing for Disaster
Mitigation of the Uttarakhand Rural Water Supply and Sanitation Project
(UKRWSSP) for India is to improve the effectiveness of rural water supply
and sanitation (RWSS) services through decentralization and increased role
of Panchayati Raj institutions and local communities in the state of
Uttarakhand. The additional financing is aligned to the Bank's country
partnership strategy to enhance disaster risk management systems and
anchored within the "strategic engagement area 3: inclusion" of the India
CPS, which states that the World Bank's investments in this area will: (i)
help build institutional capacity to prepare for and manage the impact of
natural disasters, and (ii) help people protect themselves from natural
disasters and recover quickly from them. The additional financing will
modify the project development objective of the project and add new
component D, RWSS disaster mitigation activities. The creation of a
separate component D will bring more clarity and strengthen the reporting
requirements for the additional financing, as distinct from new schemes
under the on-going UKRWSSP. Further, the decentralization program,
including institutional and implementation arrangements, will be different
under component D. The change in implementation arrangements is
necessitated by the emergency nature of the project.

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Odisha Disaster Recovery Project

The development objective of the Odisha Disaster Recovery Project for
India is to restore and improve housing and public services in targeted
communities of Odisha, and increase the capacity of the state entities to
respond promptly and effectively to an eligible crisis or emergency. The
project has five components. The first component is resilient housing
reconstruction and community infrastructure. It has following two sub-
components: (i) housing reconstruction for the reconstruction of about
30,000 houses in the designated rural areas in the coastal belt 5 km from the
high tide line (HTL) in the districts of Ganjam and Puri, and 5km from the
Chilika lake boundary as defined by the survey of India in the district of
Khordha; and (ii) selected community infrastructure for public infrastructure
improvements to complement the housing reconstruction. The second
component, urban infrastructure in Berhampur will finance investments to
improve public services in Berhampur while at the same time reduce the
vulnerability of its population. Improved public infrastructure will reduce
vulnerability through improved drainage to reduce floods, and increasing the
resilience of public service infrastructure. It has following four sub-
components: (i) upgrading of slums; (ii) public service infrastructure; (iii)
community participation; and (iv) technical assistance. The third component,
capacity building in disaster risk management objective is to support Odisha
State Disaster Management Authority (OSDMA) in strengthening their
overall capacity towards better risk mitigation, preparedness, and disaster
response, in line with global best practices. The fourth component,

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implementation support will finance the incremental operating costs of the
project management units (PMUs) in OSDMA and the Department of
Housing and Urban Development (H and UD), and the project
implementation unit (PIUs) in OSDMA and the Berhampur Municipal
Corporation (BeMC). The fifth component, contingent emergency response
will draw resources from the unallocated expenditure category and or allow
the Government of Odisha (GoO) to request the Bank to re-categorize and
reallocate financing from other project components to partially cover
emergency response and recovery costs.

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India: Bihar Integrated Social Protection Strengthening
Project
The development objective of the Bihar Integrated Social Protection
Strengthening Project for India is to strengthen institutional capacity of the
Department of Social Welfare and the Rural Development Department to
deliver social protection programs and services and expand outreach of
social care services for poor and vulnerable households, persons with
disabilities, older persons, and widows in the state of Bihar. The project has
two components: the first component, strengthening social protection
systems and capacity will strengthen core systems and capacity of the Bihar
Rural Development Society (BRDS) and the State Society for Ultra-Poor
and Social Welfare (SSUPSW), which are the program implementation arms
of the Rural Development Department and the Department of Social Welfare
respectively, at the state, district, and block levels. This component has two
sub-components: (i) strengthening systems and capacity for safety net
delivery; and (ii) strengthening systems and capacity for social pension and
social care service delivery. The second component is establish and
strengthen social care services. This component will support establishing
social care services across the state through social care service centers
(referred to as Buniyad centers) that will provide high quality care, support,
and rehabilitation services for older persons, widows, and persons with
disabilities. It has following three sub-components: (i) establish and
strengthen social care services; (ii) pilot models in social protection delivery;
and (iii) innovation window.

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India: Rural Water Supply and Sanitation Project for
Low Income States

The objective of the Rural Water Supply and Sanitation Project for low
income states for India is to improve piped water supply and sanitation
services for selected rural communities in the target states through
decentralized delivery systems and to increase the capacity of the
participating states to respond promptly and effectively to an eligible crisis
or emergency. The project consists of the following components: 1) capacity
building and sector development; 2) infrastructure development; 3) project
management support; and 4) contingency emergency response. The first
component supports the building of institutional capacity for implementing,
managing and sustaining project activities. The infrastructure development
component supports investments for improving water supply and sanitation
coverage, including construction of new infrastructure and rehabilitation and
augmentation of existing schemes. The third component includes project
management support to the various entities at the national, state, district, and
village levels for implementing the project, including staffing, consultancy
and equipment costs, and internal and external financial audits. The final
component deals with the utilization of resources from unallocated
expenditure and allows the Government to request the Bank to re-categorize
and reallocate financing from other project components to partially cover
emergency response and recovery costs in the event of an emergency or
crisis.

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National AIDS Control Support Project

The objective of the National AIDS Control Support Project for India is to
increase safe behaviors among high risk groups in order to contribute to the
national goal of reversal of the HIV epidemic by 2017. The project has three
components. (1) Scaling up targeted prevention interventions component
will support the scaling up of Targeted Interventions (Tis) with the aim of
reaching out to the hard to reach population groups who do not yet access
and use the prevention services of the program, and saturate coverage among
the High Risk Groups (HRGs). In addition, this component will support the
bridge population, i.e. migrants and truckers. (2) Behavior change
communications will include: (i) communication programs into society and
to encourage normative changes aimed at reducing stigma and
discrimination in society at large, and in health facilities specifically, as well
as to increase demand and effective utilization of testing and counseling
services; (ii) financing of a research and evaluation agency to assess the
cost-effectiveness and program impact of behavior change communications
activities; and (iii) establish and evaluate a helpline at the national and state
level to further increase access to information and services. (3) Institutional
strengthening component will support innovations to enhance performance
management including fiduciary management, such as the use of the
computerized financial management system, at national and state levels

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India Low-Income Housing Finance

The development objective of the Low Income Housing Finance Project for
India is to provide access to sustainable housing finance for low income
households, to purchase, build or upgrade their dwellings. The project has
three components. The first component is capacity building. Under this
component activities will be financed to strengthen the capacity of National
Housing Bank (NHB), qualified intermediary institutions, and Qualified
Primary Lending Institutions (QPLIs). The aim will be to develop new
financial products, loan standards, risk management tools, and financial
literacy and consumer protection capacity. In addition, pilots will be
designed, launched and monitored. Building upon and complementing
National Housing Bank (NHB’s) monitoring and evaluation (M&E) systems
and processes, this component will also support an impact assessment to
independently assess the social and household level impact of the project.
The second component is financial support for sustainable and affordable
housing. This component will finance NHB to refinance, directly or
indirectly through qualified intermediary institutions, low-income housing
loans made by QPLIs to primary borrowers to purchase, build or upgrade
their dwelling. NHB has recently prepared a refinancing scheme for secured
low-income housing loans to borrowers with formal and informal incomes.
NHB will develop guidelines (to be formulated and reflected in the project’s
operations manual) for the provision of alternatively secured housing loans
to formal and informal borrowers. The third component is project
implementation. A Project Implementation Unit (PIU) will be set up within

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NHB to help implement the project, carry out monitoring and evaluation, be
responsible for legal issues and grievance redressal, overseeing and
monitoring the social and environmental due diligence (including
conducting annual third party audits of QPLIs), keeping the project’s
operations manual updated, and financial management and carry out any
procurement necessary under the project. Low-income housing expertise
will also be added to the PIU to provide technical inputs to the procurement
of consultants’ services under component one. External communications on
the project will also be covered by NHB staff. Lastly, NHB will also take on
responsibility for dissemination and communication activities under its own
budget, such as conferences or workshops.

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Rajasthan Road Sector Modernization Project

The development objective of the Rajasthan Road Sector Modernization
Project for India is to improve rural connectivity, enhance road safety, and
strengthen road sector management capacity of the state of Rajasthan. The
project has three components. The first component is rural connectivity
improvement. This component will support construction of about 2500
kilometer (km) rural roads to provide connectivity to about 1,300 revenue
villages with population between 250 and 499 people in the areas of the state
not covered by Pradhan Mantri Gram Sadak Yojana (PMGSY) and
introduce good practices of cost effective low volume technologies. The
second component is road sector modernization and performance
enhancement. This component will support implementation of a road sector
modernization plan (RSMP) in the following key areas: improved policy
framework; modernization of engineering practices and business procedures;
sustainable asset management; institutional and human resource
development; preparing a pipeline of feasible projects for implementation;
and enhancing governance and accountability in public works department
(PWD). The third component is road safety management. This component
will support the strengthening of road safety management systems in
Rajasthan with the objective of reducing the number of fatalities and serious
injuries from traffic accidents in the state.

34. 34
Uttar Pradesh Water Sector Restructuring Project.
The objective of the Second Phase of the Uttar Pradesh Water Sector
Restructuring Project for India is to: (a) strengthen the institutional and
policy framework for integrated water resources management for the entire
state; and (b) increase agricultural productivity and water productivity by
supporting farmers in targeted irrigation areas. There are six components to
the project, the first component being strengthening of state-level water
institutions and inter-sector coordination. This component aims to provide
support to the institutions in the state responsible for overall integrated water
resources management and implementation of the state water policy. The
second component is the modernization and rehabilitation of irrigation and
drainage systems. The third component is the consolidation and
enhancement of irrigation institutional reforms. This component will
enhance the efficiency of the Uttar Pradesh Irrigation Department (UPID)
and strengthen the Participatory Irrigation Management (PIM) approach
both in the department as well as in the community. The fourth component is
the enhancing agriculture productivity and on-farm water management. This
component (to be implemented directly by the Department of Agriculture)
aims to improve the overall agriculture productivity and water-use efficiency
at the field level. The fifth component is the feasibility studies and
preparation activities for the next phase. This component is to prepare
detailed surveys and designs for future third phase areas. These new areas
will be identified by the Government of Uttar Pradesh and will make use of
similar design principles (and the lessons learned) adopted under this second
phase operation. Finally, the sixth component is the project coordination and
monitoring.

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OTHER NAMELY PROJECTS ARE:

Project Title Project ID
Commitment
Amount * Status Approval Date
Maharashtra Rural Water Supply and Sanitation
Program P126325 165.0 Active
March 12,
2014
INDIA: UTTRAKHAND RWSS ADDITIONAL
FINANCING P148009 24.0 Active
March 4,
2014
Odisha Disaster Recovery Project P148868 153.0 Active
February 20,
2014
India: Bihar Integrated Social Protection
Strengthening Project P118826 84.0 Active
December
30, 2013
India: Rural Water Supply and Sanitation
Project for Low Income States P132173 500.0 Active
December
30, 2013
Second Gujarat State Highway Project (GSHP II) P114827 175.0 Active
December
13, 2013
India:Improving Development Programmes in
Tribal Areas P145058 0.5 Active
November
25, 2013
National Highways Interconnectivity
Improvement Project P121185 500.0 Active
October 29,
2013
Rajasthan Road Sector Modernization Project P130164 160.0 Active
October 29,
2013
Uttarakhand Disaster Recovery Project P146653 250.0 Active
October 25,
2013

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Uttar Pradesh Water Sector Restructuring
Project Phase 2 P122770 360.0 Active
August 28,
2013
Tamil Nadu and Puducherry Coastal Disaster
Risk Reduction Project P143382 236.0 Active
June 20,
2013
India Low-Income Housing Finance P119039 100.0 Active
May 14,
2013
India Second Kerala State Transport Project P130339 216.0 Active
May 14,
2013
National AIDS Control Support Project P130299 255.0 Active May 1, 2013
Himachal Pradesh Watershed Management
Project P104901 8.0 Active
November
20, 2012
HP State Roads Project - Additional Financing P130616 61.7 Active
October 25,
2012
India - Bihar Panchayat Strengthening Project P102627 84.0 Active
September
27, 2012
India: Karnataka Health Systems Additional
Financing P130395 70.0 Active
September
27, 2012
AF - HP Mid-Himalayan Watershed
Development Project P130944 37.0 Active
September
27, 2012

37. 37
CONCLUSION:

The World Bank's activities are focused on developing countries, in fields
such as
-human development (e.g. education, health),
-agriculture and rural development (e.g. irrigation, rural services),
-environmental protection (e.g. pollution reduction, establishing and
enforcing regulations),
-infrastructure (e.g. roads, urban regeneration, electricity), and
-governance (e.g. anti-corruption, legal institutions development).


It provides loans at preferential rates to member countries, as well as grants
to the poorest countries. Loans or grants for specific projects are often linked
to wider policy changes in the sector or the economy. For example, a loan to
improve coastal environmental management may be linked to development
of new environmental institutions at national and local levels and to
implementation of new regulations to limit pollution.
Technically the World Bank is part of the United Nations system, but its
governance structure is different. Membership gives certain voting rights
that are the same for all countries but there are also additional votes which
depend on financial contributions to the organization. As a result, the World
Bank is controlled primarily by developed countries, while clients have
almost exclusively been developing countries. Some critics argue that a
different governance structure would take greater account of developing
countries' needs. As of November 1, 2004 the United States held 16.4% of

38. 38
total votes, Japan 7.9%, Germany 4.5%, and the United Kingdom and
France each held 4.3%. As major decisions require an 85% super-majority,
the US can block any change.

Structural adjustment:
Is a term used to describe the policy changes implemented by the
International Monetary Fund (IMF) and the World Bank (the Bretton Woods
Institutions) in developing countries. These policy changes are conditions
(Conditionalities) for getting new loans from the IMF or World Bank, or for
obtaining lower interest rates on existing loans. Conditionalities are
implemented to ensure that the money lent will be spent in accordance with
the overall goals of the loan.

Conditions
Some of the conditions for structural adjustment can include:

 Cutting expenditures, also known as Austerity.

 Focusing economic output on direct export and resource extraction

 Trade liberalization, or lifting import and export restrictions

 Increasing the stability of investment (by supplementing foreign direct
investment with the opening of domestic stock markets).

 Balancing budgets and not overspending.

39. 39
 Removing price controls and state subsidies

 Privatization, or divestiture of all or part of state-owned enterprises.

 Enhancing the rights of foreign investors vis-a-vis national laws.
Improving governance and fighting corruption.

40. 40
BIBLOGRAPHY

www.google.com

www.worldbank.com

www.slideshares.com

www.powerpointprojects.com