WB increases lending to India, to target poor states Friday, August 27 2004 11:27 Hrs (IST)
Washington:
The World Bank has increased its lending to India by about $ 1 billion a year for the next four years and identified infrastructure building, human development and uplift of rural poor as its thrust areas in an effort to alleviate poverty.
The Bank has decided to shift its strategy, which was focused on States undertaking comprehensive reforms, and will now target four States -- Bihar, Jharkhand, Orissa and Uttar Pradesh -- in particular, "where poverty is increasingly concentrated".
Under the new programme titled "Country Strategy for India" approved by the Board of Executive Directors of the Bank, it would lend India up to $ 3 billion a year from 2005-2008, an increase of $ 1 billion a year, a bank statement said in Washington yesterday (Aug 26, 2004).
"Assisting India, which is home to over one quarter of the world's poor, with best practice knowledge and financing for development, is central to the Bank Group's mission to help reduce global poverty," Michael Carter, the Bank's country director for India, said.
He said the new strategy unveiled for the four-year period covers a critical period if the 'Millennium Development Goals' are to be met globally by 2015.
The Bank has identified three areas -- to help improve Government effectiveness, support investments in people and empowering communities and to promote private-sector led growth -- as programme priorities for India, it said.
In line with these priorities, the Bank's programme and lending will be expanded in infrastructure building, Human development and rural livelihoods, it added.