54065 - World Bank Documents

The World Bank in India • January 2005 12

Bank President visitsIndia 1-3

Bank to pilot use ofcountry systems 4

Development Marketplace2005 5

Field Report 6-8

Events 8-12

Recent Project Approvals 13

New Additions to thePublic Information Center 15

Contact Information 24

About the Photograph:President of the World Bank,James D Wolfensohn, givesChief Minister of Delhi,Sheila Dixit, a hand upto thestage where he delivered thepublic address in New Delhion 18 November 2004

VOL 3 / NO 4 JANUARY 2005

WorldBankIN INDIA

THE

India’s development a globalissue, says Bank President

I N S I D E

The President of the World Bank, Mr James D Wolfensohn, was

in India over November 17-19 at the invitation of the Finance

Minister, Mr P Chidambaram. In meetings with the Prime Minister,

Dr Manmohan Singh, the Finance Minister, the Planning Commission

Deputy Chairman, Mr Montek S Ahluwalia and other officials,

Mr Wolfensohn was briefed on the country’s infrastructure needs

– especially in water management, power, highways and railroad

modernization.

He told a crowded press conference that the Bank would be happy

to support India’s efforts in all these areas, while continuing its

assistance in healthcare, education, AIDS control and other sectors.

“India faces multiple challenges and needs to move along on many

fronts simultaneously,” he observed.

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The World Bank in India • January 2005122

The high point of Mr Wolfensohn’s visit

was his public address, entitled ‘India:

Opportunity and Challenge in a Globalizing

World,’ delivered to an audience of the

Capital’s leading opinion-makers at the

Nehru Memorial Museum and Library.

Commenting on the country’s “enormous

transformation” in the last 10 years, he said

India’s development was “not just an issue

for Indians but for the entire planet.”

A recurrent theme for Mr Wolfensohn was

the challenge of a “two-speed India,” one in

the global fast lane of entrepreneurial talent

and technological creativity, a lane where

Indian companies were becoming a global

presence. In the other lane were the 600,000

villages of rural India where most of the

country’s over 250 million poor people live

under $1a day.

“The challenge now is how you can spread

this enormous profusion of entrepreneurial

talent. One must work at the local level to

engage people in poverty, not out of charity

but as the asset on which you build the

country; a partnership between the

entrepreneurs of fast-growing India and the

700 million in the rural and peri-urban areas,

many of whom have been left behind,”

he suggested. “India can do it. It has

the leaders, the people and the

resources...everyone in the country must

assume responsibility to ensure that it does

not continue to be a two-speed economy.”

Referring to the Government of India’s

Common Minimum Program, the Bank

President said it showed a country with the

vision, resources and capacity to address

poverty and the inclusion of the hundreds

of millions of rural poor. Its challenge now,

said Mr Wolfensohn, was the aggressive

implementation of the program and the

unleashing of the country’s entrepreneurship

to make this happen.

The President began his engagements with

an interaction with representatives of India’s

youth: “What they told me is we need jobs,

we need opportunity, young women need

empowerment, we need protection from

HIV/AIDS. They asked how they could help

the less fortunate, those in child labor, the

children not in school.”

He also met with a group of the Bank’s

NGO partners who described both the thrills

and difficulties of working with the Bank and

governments. The meeting ran over because

of the richness of the discussion, and Mr

Wolfensohn promised to follow it up over

video conference. He also warned of the

growing threat of an AIDS epidemic in India.

“One needs to overcome the cultural barriers

and face this as a development challenge,”

he urged.

Mr Wolfensohn also called on the President

of India, Dr APJ Abdul Kalam, who had

visited the Bank premises in New Delhi

Mr Wolfensohnaccompaniedby (from left)the Bank’sVice Presidentfor South Asia,Praful Patel,Ms Sheila Dixit,and the Bank’sCountryDirector forIndia,Michael Carter


earlier in the year on the occasion of the

India Development Marketplace. Dr Kalam

gave Mr Wolfensohn a “fascinating”

presentation of his vision of an India that

fast tracks development on the basis of

“electronic, physical and knowledge

connectivity.”

Meanwhile, Mrs Elaine Wolfensohn met

with representatives of women self-help

groups from the states of Jharkhand and

Uttaranchal and heard a first hand account

of how their lives and those of their children

had improved as a result of the Bank

supported ‘Swashakti’ Program (Rural

Women’s Empowerment Project).

She also visited the Sarvodaya Senior

Secondary School in Delhi and a primary

school in Lalpur village in the state of

Uttar Pradesh to see first-hand the

implementation of the Government’s

‘Education for All’ program. This program

aims to achieve universal enrollment in and

completion of elementary education

(Grades 1-8) for the 6-14 age group by 2010.

It is supported by the Bank through a

US$500 million credit in partnership with

DFID, the European Commission and India’s

federal and state governments.

“The single most important investment that

we can make for human development is to

educate our girls,” Mrs Wolfensohn said. “I

have seen during this visit that the number

of girls in school is steadily increasing and

the confidence that they demonstrate as

they progress in school makes me optimistic

for India’s future.”

A large and enthusiastic group of Lalpur

farmers hosted Mrs Wolfensohn when she

visited the sites of the Uttar Pradesh

Diversified Agriculture Support Project. She

saw the production of bio fertilizers and

integrated pest management techniques,

improved cattle progeny under the breed

conservation programs, and the varied

produce of farmers’ and women’s groups.

“This is the kind of project that should be

replicated in other parts of the country and

in other developing countries,” she

commented, noting that the Project had

helped increase agricultural productivity,

improve farmer incomes and benefit the

environment through use of bio fertilizers

and pesticides. She also lauded the close

cooperation among farmers, researchers,

government officials and NGOs.

Right & Above:Mrs Wolfensohninteractingwith schoolchildrenduring herfield visits toDelhi andUttar Pradesh


Bank to pilot use of countryquality systems

existing policies in the country to how well

they are being applied in practice. When

both policy and practice are sound, the Bank

would consider use of those systems for

specific projects.

This is not an entirely new idea – in financial

management and procurement, in particular,

the Bank already has some experience in

assessing countries’ systems and depending

on them in its projects. The advantage of

using country systems more widely is that

it would create incentives for borrowers to

improve their own policies and procedures

and strengthen their implementation

performance.

Detailing the “careful and responsible

approach” the Bank is taking in extending its

use of country systems, World Bank Country

Director Michael Carter said the two-year

pilot program will ensure that this move does

not weaken the Bank’s existing policies.

At the end of the pilot period, there would

be a thorough evaluation to understand the

circumstances under which the approach

can be used to achieve the development

objectives of the Bank and borrowers.

“As a global public institution, the Bank

seeks to ensure that the projects it finances

are carried out under the soundest social

and environmental standards. However,

as a development institution, we are also

concerned that these standards not be

limited just to projects the World Bank and

other donors finance, but that they are

used for all development expenditures in

a country,” says Mr Carter. “Through this

new approach we can join in strengthening

national capacity while ensuring that the

objectives of our policies are met.”

The draft proposals for using country

systems have been available on the Bank’s

website (www.worldbank.org/

countrysystems) since October 8, 2004

and feedback on them will be accepted

and posted through January 21, 2005.

The World Bank is exploring the idea

of using, where they are of acceptable

standard, a country’s own procurement,

financial management, environmental and

social safeguard systems in its operations.

The use of country systems would mean

a move away from the traditional model of

‘ring-fenced’ Bank supported projects in

which Bank financial management,

procurement and safeguard policies are

applied just to Bank-financed activities.

Instead, the Bank, without diluting its

own quality requirements or diminishing its

accountability and responsibility for the

funding it provides, plans to increase its

reliance upon the borrower country’s

institutions, rules, policies and procedures

in an effort to institutionalize its own global

benchmark standards within borrowing

countries.

Moving with extreme caution, the Bank will

pilot the new approach through a two-year

program covering not more that 12 projects

worldwide. This pilot program will comprise

projects with well-identified and manageable

environmental and social risks and will not

cover major infrastructure and water

resources development projects. Existing

accountability mechanisms for independent

review of the Bank’s actions, including the

Inspection Panel, would apply to the pilot

program. For operations that are not a part

of the pilot program, the Bank’s existing

environmental and social safeguard policies

will continue to apply.

Key to the new approach will be an

increased emphasis by the Bank on capacity

building and human resource development

in borrowing countries, which can have a

major multiplier effect by leading to broad

improvements in the quality of government

systems. Before using a country’s systems,

the Bank would assess where they are

adequate to meet the Bank’s needs, and

where implementation capacity is adequate,

it would then work with country authorities to

help strengthen areas of weakness. The

assessment would look beyond the ‘letter’ of


The Development Marketplace (DM) 2005, the World Bank’s unusual initiative to identify

and directly support innovative developmentideas, will see roughly US$3 million being awardedto small-scale projects that not only deliverresults, but also have the potential to beexpanded or replicated elsewhere.

The DM 2005 will be the first thematic one in theseries initiated in 1998. Its theme, Innovations forLivelihoods in a Sustainable Environment, reflectsthe World Bank’s efforts to promote global,national, and local leadership to manage naturalresources in a sustainable manner and minimizeenvironmental degradation.

Proposals must reflect the theme of Innovationsfor Livelihoods in a Sustainable Environment inany of the following areas:

● Renewable energy and energy efficiency at thecommunity level

● Innovative application of clean technologiesin small enterprises

● Biodiversity conservation

● Environmental education and awareness

● Protecting environmental health (air and waterpollution, water supply and sanitation,persistent organic pollutants)

● Sustainable use of natural resources(land, agriculture, water, forests)

Proposals are welcome from a range ofdevelopment innovators – civil society groups,social entrepreneurs, private foundations,academia, private sector corporations, as wellas, staff from the World Bank and otherdonor organizations.

How to Apply

Proposals must be submitted through theDevelopment Marketplace Website atwww.developmentmarketplace.org.All proposals must be submitted by 6 pmWashington Local Time or 23:00 GMT ormidnight India Time on 21 January 2005.

If you are unable to access the internet or thewebsite, please contact the DM team at(202) 522-2042 by fax or send an e-mail to:[email protected].

DM2005 Timeline and Key Steps

Development Marketplace process is guidedby the values of inclusiveness, diversity, fairness,and transparency. The overall process isdescribed below.

November 19, 2004 – January 21, 2005:Call for proposals

All proposals for DM2004 should be submittedthrough our website(www.developmentmarketplace.org).

January – March 30th, 2005:Review of proposalsProposals will be assessed against theassessment criteria mentioned above.

March 30th, 2005: Announcement of finalistsAssessors will select roughly 50-60 finalists.

April 1st-April 29th, 2005:Finalists’ proposalsAll finalists will be asked to submit a moredetailed proposal by April 29th.

June 6-7th, 2005:Environment Development Marketplace 2005The Environment Development Marketplace willbe held on June 6-7, 2005 as one of the WorldBank’s major contribution to the WorldEnvironment Day (June 5th). At the Marketplace,an independent jury comprised of World Bankstaff and leading individuals in developmentoutside the Bank (academia, civil society,foundations, government, other donor institutions,and the private sector) will evaluate each proposaland select about 20-30 winners.

Development Marketplace 2005


How a watershed project stopped the mountains walking

Right:Sant Ram, thepradhan of theKiarad KalogVillageDevelopmentCommittee

Below:Ruralinfrastructure,like footbridgesand footpaths,was anintegral partof the Project

As for Kiarad Kalog, it is now linked to the

road on the next hill by an all-weather paved

path that fords the stream with a little

footbridge. The metamorphosis of Kiarad

Kalog, and a hundred other little mountain

villages like it, stems from the Integrated

Watershed Development Project (Hills), a

US$ 135 million World Bank-assisted

program being implemented in five states

spanning the Himalayan foothills known

as the Shivaliks – Jammu and Kashmir,

Himachal Pradesh, Punjab, Haryana and

Uttaranchal.

Sant Ram, the pradhan or chief of the Kiarad

Kalog Village Development Committee (VDC),

sums up the difference the Project has made

to his little village. “The Project has shown us

the light,” he says. “For 50 years, we saw all

our demands languishing. Roads, footpaths,

water, bridges, forests – we had nothing and

we kept waiting for someone to do

something for us. But the Project showed us

that we could create all these things

ourselves.”

The Integrated Watershed Development

Project (Hills) aims at halting degradation

in some 75 sub-watersheds of the Shivaliks,

spanning some 200,000 ha and increasing

their productive potential. Once covered by

dense forests, the Shivaliks are almost totally

denuded now, thanks to population

pressures that have spurred demands for

food, fodder and fuelwood in huge quantities.

The marginal lands are also being cultivated

now, leading to increased soil erosion.

Today, the Shivaliks are among the eight

most degraded rainfed eco-systems of India.

K iarad Kalog is a tiny village in the lower

reaches of the mountain state of

Himachal Pradesh. Until a couple of years

ago, existence in Kiarad Kalog was attuned

solely to the rhythms of the rains. Fields

could be sown only after the first showers

came, irrigation tanks ran empty until the

skies rained benevolence and drinking water

wells gave up turbid slush until the

monsoons filled their depths afresh.

But the rains, when they came, ravaged even

where they reared. Hillsides stripped of

vegetation by generations of grazing cattle

and foraging villagers were unable to bear

the onslaught from above. Little rivulets ran

unchecked down the slopes, turning the little

stream at the bottom of the hill into any

angry torrent and isolating Kiarad Kalog for

days. Only a fraction of the crops survived in

the denuded soil, providing the villagers with

a meager subsistence.

And, all the while, the mountains kept

walking – which is how the local people

describe the inexorable movement of soil

erosion in these parts.

Today, the mountains have stopped walking,

stalled in their march to nothingness by the

roots of young trees and shrubs planted and

nurtured by the villagers; the fields are lush

with cash crops through the year, watered in

large part from earthen dams and tanks

constructed by the villagers; and wells

seldom run dry.

From the Field


Right:Cropdiversification,promotedstrongly bythe Project,helped farmersincreasehouseholdincomes

“The focus was not just on the soil or water,

but on the entire farming system – food,

fodder, livestock – and its ultimate aim was

not just watershed development but also

livelihood development,” says Daniel Sellen,

the Bank task leader for the Project.

As the Project draws to a close, its impact

indicators tell a success story:

● Incomes in Project-covered households,

two-thirds of which comprise small and

marginal farmers, rose by as much as 38 %

● 41,841 hectares of forest was planted

● 84,752 hectares of non-arable land was

treated by planting trees, vegetative shrub

barriers, developing pastures and other

measures of landslide control.

● 9,294 hectares of hitherto unproductive

land was irrigated by water harvesting

schemes

● Improved farming techniques saw wheat

yields rise from 1.8 tonnes per hectare to

2.5 tonnes per hectare and maize from

1.8 to 2.2 tonnes per hectare

● A significant animal husbandry program

saw milk yields for cows rise from 1.9

litres per day to 3.2 litres per day and

buffalo yields from 3.44 litres per day to

4.9 litres per day.

● Rural access in the region improved

by constructing 192 kms of rural roads;

1,584 kms of footpaths and 330

footbridges.

● 1,375 self-help groups established

The range of natural resource management

interventions planned under the Project were

all initiated in conjunction with the local

communities of the target watersheds. The

Project was impelled by villagers working

through 1,337 elected Village Development

Committees (VDCs), which served as

effective channels for the Project funds.

These VDCs – with incidentally 40 percent

women’s representation – drew up micro-

plans for their villages; spelled out their

problems and priorities; and then worked on

the solutions, contributing both part of the

money and the labor.

Together, they constructed some footbridges

and paved tracks into the hills; they built

check dams and flow barriers; they repaired

terraces and bunds; they chose which trees

Working on the ground through user groups

– for irrigation schemes or drinking water

schemes for instance – and thrift groups

(the self-help groups), the Project has tried

to help local communities manage their

natural resources in a manner that not only

sustains their environment but also creates

livelihood opportunities. So, rainwater

harvesting structures were constructed to

irrigate lands that have historically been

unproductive. The farmers were then

encouraged to plant high-value crops like

vegetables, aromatic and medicinal plants

and flowers, in these fields. Venture into the

heart of the Shivaliks anywhere today to see

farmers tending a variety of non-traditional

crops. If it is medicinal aloe vera and safed

musli (Chlorophytum Borivilianum) in

Uttaranchal and onion seed in Haryana, in

Himachal it is organically-grown vegetables

that seem to have caught the farmers’ fancy.

to plant on denuded slopes and planted

them; they built lift irrigation schemes and

water supply pumps.

“The real sustainability of the Project is the

social capital built in these groups,” says

Sellen. Early indications from impact

evaluation studies suggest that the majority

of VDCs and self-help groups are likely to

outlive the Project. “The glue we used was

that of linking all institutions and activities to

income generation for the villagers,” says

the Project Director for the Himachal

Pradesh wing of the Project, Mr R K Gupta.


Marginal lands were planted with fruit trees

that not only increased plantation cover on

the hills but also fetched farmers a tidy sum

in the market. Then, the hillsides were

reforested with species that could ease the

demand for precious fodder and fuelwood or

even provide raw materials for a host of

small enterprises like making ropes, baskets

or pattals, the leaf-plates used in traditional

Indian ritual feasts. The on-farm production

of fodder – planting juicy grasses like napier

along the boundaries of fields – not only

reduced indiscriminate grazing but also

removed the need to buy supplementary

cattle feed.

The instances of livelihood development

under the Project are legion: In Haryana,

Gujjar villages are populated the year

through, as the transhumant herder

community shows signs of settling down to

farm, drawn by improved water resources.

In Himachal, the below-poverty line village

of Nandowal are looking at prospects of

prosperity. Two large earthen dams catch the

rainwater and irrigate the lands of the

village’s poorest families. Farmers who

struggled to grow fodder a

few years ago are now planting tomatoes.

Fodder and fuelwood are abundant; the

water table has been recharged and drinking

water is being pumped to homes up the

furthest slopes; and the village women are

supplementing their household incomes

making ropes, indigenous salt licks for

cattle, and setting up forest nurseries.

“The forests have benefited and so have

we,” says septuagenarian Majid.

Apart from the obvious on-farm and

off-farm benefits, the Project has wrought

a deeper change by supporting some key

policy and institutional reforms in watershed

management. Among its major

achievements is the formulation of the

Shivalik Watershed Development Strategy,

a move towards harmonizing development

guidelines across the five states that cover

the Shivaliks.

A new report by the World Bank titled

State Fiscal Reforms in India: Progress

and Prospects was launched at a series of

workshops held in New Delhi, Kolkata,

Ranchi and Mumbai over November and

December. The discussions organized to

promote discussion of the issues raised in

the report were attended by policy-makers,

government officials, academics and others.

Recognizing the centrality of fiscal reforms

to improving state government effectiveness,

the World Bank has, since the mid-nineties,

supported the efforts of several states to

improve their fiscal performance. Several

reports on fiscal performance and reforms

in individual states have been written but this

is the first report that looks across states to

discuss what has worked, what hasn’t,

and what more needs to be done.

Events

REPORT LAUNCH

State Fiscal Reports in India: Progress &

Prospects 22 September 2004 • New Delhi

The report notes that while some states

have shown progress in fiscal reforms, at

the aggregate level there are few signs of

improvement. State debt continues to

increase, and India’s states are now perhaps

the most heavily indebted of all sub-national

entities worldwide. The worsening fiscal

position of the states since the late nineties is

not only a macroeconomic issue: the report

also shows that it has hurt the development

effectiveness of the states, especially the

poorer ones. What is important, therefore, the

report argues is not fiscal adjustment alone,

but development-oriented fiscal adjustment.

“If state finances are not put on a stronger

footing, the sustainability of investments

cannot be assured, and government

effectiveness will continue to suffer. The

poorer states are particularly at risk,” says

Mr Stephen Howes, the Bank’s lead

economist for India and one of the co-

authors of the report.

8


Despite the limited progress to date, the

report argues that states can successively

adjust provided that they continue to contain

their salary bill, control wasteful subsidies,

and reform their tax regime. High on the tax

agenda, the report argues, should be three

things: introduction of the state-level VAT; a

greater emphasis on the professions tax as

a potentially important but neglected direct

tax revenue source for the states; and

greater focus on tax administration reforms

and inter-state revenue coordination to

simplify the system, and reduce corruption.

The report was released in New Delhi at

the National Institute of Public Finance

and Policy (November 23); in Kolkata at the

Indian Institute of Management (November

30) in Ranchi on December 15 and in

Mumbai (with the Mumbai University on

December 22; it will also be discussed in

Patna, Chennai, Hyderabad, Chandigarh,

Bangalore, Lucknow and Bhubaneswar

over the next few months.

The entire report is available online in

PDF format at the Bank’s India website

http://www.worldbank.org.in

For details also see page 15

REPORT LAUNCH

Global Economic Prospects

8 December 2004 • New Delhi

T he World Bank in collaboration with

the Federation of Indian Chambers of

Commerce and Industry (FICCI), organized

the India launch of the Global Economic

Prospects 2005: Trade, Regionalism and

Development in New Delhi.

Presentations made

on the occasion by

Mr Uri Dadush,

Director, Economic

Policy and

Development

Prospects Group

of the World Bank,

and by Mr Richard

Newfarmer, Economic Adviser, Economic

Policy and Development Prospects Group

and lead author of the report are available on

the Bank’s India website:

http://www.worldbank.org.in


WORKSHOP

Re-energizing Agriculture in India


Doubling the rate of agriculture growth

in India to 4 percent is ‘no pie in the

sky’ but quite within the bounds of

achievement, said Deputy Chairman of the

Planning Commission Montek Singh

Ahluwalia. This target growth rate would not

only lead to significant reductions in rural

poverty but would also impel the GDP to

grow at the targeted 8 percent, he said,

while delivering the inaugural address at an

international workshop on ‘Re-energizing

Agriculture in India,’ in New Delhi on

December 17, 2004.

Conceding that the target growth rate

was not an easy task given the state of the

agricultural sector, Mr Ahluwalia said,

however, that “many countries across the

world have accomplished it in the recent

past”.

The workshop, organized jointly by the

World Bank, the Rajiv Gandhi Institute for

Contemporary Studies, and the Washington-

based International Food Policy Research

Institute (IFPRI), also marked the launch of

an India-focused World Bank publication,

Renergizing the Agricultural Sector to

Sustain Growth and Reduce Poverty.

The report, noting the slowdown in

agricultural growth in the 1990s, says that

the existing policy regime – founded on

achieving foodgrain self sufficiency through

high price support and large subsidies for

fertilizers, irrigation and power – is “no

longer compatible with the changed

environment of the 21st century”.

DeputyChairman ofthe PlanningCommission,Montek SinghAhluwaliaflanked byC HanumanthaRao andMichael Carter

9


Urging bold action from policy-makers to

achieve the annual agricultural growth rate of

4 percent targeted in the Tenth Plan, the

report recommends two key steps: The first

is to reorient government expenditure away

from subsidies towards productivity-

enhancing public investments, including

rural infrastructure and services. The second

policy change suggested is the elimination

of restrictions on domestic trade (controls on

credit, storage and transport) unless in

situations of emergency, and the removal of

levies on rice and sugar, the small-scale

reservation of agro-enterprises, as well as

state controls on wholesale marketing.

According to the authors, these changes will

improve the investment climate for farmers

and the private sector to effectively meet

market opportunities.

Among those who attended the workshop

were Prof C H Hanumantha Rao, Prof Bibek

Debroy (Director, RGICS), Dr Ashok Gulati

(IFPRI), and Mr. Sompal (former minister of

agriculture). The valedictory address was

given by the Minister of State for Planning,

Dr Rajashekharan.


Senior Advisorof the WorldBank InstituteCarl Dahlman,BCGChairmanArun Mairaand MichaelCarter at theKnowledgeEconomyWorkshop

The workshop used the World Bank report

on the above theme as a launching pad for

discussion among high level policy makers

from the central and selected state

governments in the areas of education,

innovation, and ICT, including the Minister

of State from the Prime Minister’s Office,

Mr Prithviraj Chavan, industry

representatives (such as from leading

companies such as Infosys, Tata

Consultancy Services, ITC, and NASSCOM),

academics, think tanks, consulting firms,

and World Bank staff.

Presentations from the workshop available

at http://www.worldbank.org

● India’s Strengths and Opportunities in the

Knowledge Economy by Carl Dahlman

and Anuja Utz of K4D

● Prioritizing Key Issues in the Economic

and Institutional Regime, by Dilip Chenoy,

Director General, Society of Indian

Automobile Manufacturers

● Higher Education and the Knowledge

Economy by Arun Nigavekar, Chairman,

University Grants Commission

● Seizing Opportunities to Leverage India’s

Potential in ICTs by Rajeev Chawla,

Secretary, E-Governance, Government

of Karnataka.

The executive summary of the report India

and the Knowledge Economy: Leveraging

Strengths and Opportunities can also be

found on the site.

CONFERENCE

Improving India’s Investment Climate

24 November 2004 • Mumbai

The World Bank, in collaboration with the

Confederation of Indian Industries (CII)

organized a conference that brought

together senior policy-makers and business

leaders to discuss and debate the findings of

three recent Bank reports: Investment

Climate Assessment Report 2005 for India,

Doing Business Indicators 2005, and the

World Development Report 2005 –

A Better Investment Climate for Everyone.

The conference provided a forum to discuss

the key constraints and challenges to

competitiveness facing India’s private sector,

reviewed recent progress made by the

Center and the states in addressing these

WORKSHOP

India and the Knowledge Economy:

Leveraging Strengths and Opportunities

9 November 2004 • New Delhi

The Knowledge for Development (K4D)

program of the World Bank Institute

delivered a successful workshop in

partnership with the Confederation of Indian

Industries (CII) with the aim of initiating a

broad discussion on how India can leverage

its potential to further compete in the global

knowledge economy.


Leader of theWDR 2005team, WarwickSmith, chiefeconomist ofCII, RajivKumar, andSaumitraChaudhuri ofICRA at theConference

WORKSHOP

Better Air Quality in Asia

6-8 December 2004 • New Delhi

constraints, exchanged ideas on how best to

overcome investment climate bottlenecks,

and explored ways in which the Bank could

partner with government and business to

create a more investor-friendly environment.

Mr Praful Patel, Vice President of the

South Asia Region for the World Bank, gave

the inaugural address at the conference

while the Chief Minister of Maharashtra,

Mr Vilas Rao Deshmukh, delivered the

concluding address at this Conference.

Several business leaders from India as well

as leading Bank experts gave presentations

and read papers at the conference, which

can be accessed at the Bank’s India website

http:www.worldbank.org.in

motorization, and industrialization is

putting tremendous stress on air quality

management. Today, nine of the 16 world

megacities are in Asia and the region

continues to be rapidly urbanized,” says

the Bank’s Country Director for India,

Mr Michael Carter.

The economic costs of air pollution in Asia

are estimated in several billion US dollars

annually, representing productivity losses,

health costs and the deterioration of urban

quality of life. Many sources contribute to

urban air pollution, from household heating

to cooking to biomass and garbage burning

to industrial emissions, power generation,

and mobile sources.

“A three-pronged approach is needed:

Coordinating environmental policies at the

national and regional level; taking proactive

actions at the city level; and engaging

stakeholders at all levels,” says the Bank’s

Lead Environment Specialist in the East Asia

and Pacific Region, Mr Jitendra Shah.

For more details on CAI-Asia visit

http://ww.cleanairnet.org/caiasia

A workshop on urban air quality

management was organized jointly by

the World Bank and the Central Pollution

Control Board (CPCB), Ministry of

Environment and Forest (MoEF). Pegged to

the launch of the recently concluded report

For a Breath of Fresh Air: Ten Years of

Progress and Challenges in Urban Air Quality

Management in India 1993-2002 (the full

report can be accessed at

www.worldbankorg/sarurbanair), the

workshop was attended by representatives

of all states that are in the process of

developing ‘action plans’ for addressing

urban air pollution in critically polluted cities.

Key issues that emerged during the course

of the presentations and the discussions

included improving the quality of the

National Air Quality Monitoring Program

by coopting industries and industrial

associations to enhance efficiency and fill

WORKSHOP

Urban Air Quality Management in India:

Progress and Future Challenges

18-19 October 2004 • New Delhi

According to WHO estimates,

approximately 500,000 premature

deaths are caused by urban air pollution in

Asia every year. To assist countries and

cities in the region to improve their air

quality, the Clean Air Initiative for Asian

Cities (CAI-Asia) was launched by the World

Bank, the Asian Development Bank and

others in 2001. The annual conference of the

CAI-Asia, Better Air Quality 2004 (BAQ 2004)

held in Agra in early December attracted

over 600 participants from 40 countries.

“Nowhere is the relationship between

economic growth and air pollution

being posed more clearly than in Asia.

The combination of rapid urbanization,


Posterdisplay atthe Bank’sNew Delhioffice on theoccasionof WorldAIDS Day

ACTIVITIES

World AIDS Day


12

Starting December 1, a series of activities

were organized at the World Bank’s

New Delhi office to mark World AIDS Day.

Staff wore ribbons to express solidarity and

support to HIV/AIDS control initiatives. A

poster and publications display was set up

data gaps. A need to strengthen data analysis

and interpretation was also voiced as was the

need to conduct emission inventory studies

to identify varying pollution sources.

There was unanimous opinion that current

action plans are too heavily loaded towards

addressing vehicular emissions. It was felt

that since the so-called ‘first generation’

reforms undertaken in Delhi are considered a

success, other cities are following the ‘Delhi

model’ – which is perceived as having an

excessive focus on the addressing

emissions from vehicular sources. However,

it was pointed out that the real ‘Delhi model’

included a mix of actions that targeted not

only the automobile sector, but also urban,

and industrial sectors. As such, it followed a

more integrated approach than is perceived.

in the foyer and the Public Information

Center (PIC). Handouts were available for

visitors. Documentaries and public service

announcements were screened in the PIC

and the foyer from December 1-10. Posters

and music videos obtained from partner

agencies were extensively used to promote

HIV/AIDS awareness in the workplace.

NGOs implementing care and support

activities for high-risk groups and street

children held an exhibition-cum-sale of

products generated as part of their income

generating activities for the affected

communities. The proceeds went to the

communities directly. NGO staff and people

living with HIV/AIDS interacted with visitors.

Tales of the Night Fairies, a highly acclaimed

movie was screened on December 15 to

staff. The director, Ms Sohini Ghosh, and

the cameraperson, Ms Sabeena Gadihoke

attended the screening and interacted with

the audience. Also slated for screening is

Phir Milenge, an award-winning feature film

in Hindi directed by Revathy Menon. The

movie deals with stigma and discrimination

attached with HIV-AIDS and explores the

legal, ethical and gender dimensions of the

HIV/AIDS problem in the Indian context.


Madhya Pradesh Water Sector

Restructuring Project

30 November

The agreement for the US$ 394.02 million

loan was signed at the Ministry of

Finance, with Dr Ranjit Bannerji, Joint

Secretary in the Department of Economic

Affairs, Ministry of Finance, signing on behalf

of the Government of India. Mr Subroto

Banerji, Principal Secretary in the Water

Resources Department, Government of

Madhya Pradesh, signed on behalf of the

Government of Madhya Pradesh. Mr Michael

Carter, the Country Director for India, signed

on behalf of the World Bank.

13

Carbon Tetrachloride

(CTC) Sector Plan Implementation Project

10 December 2004

An agreement for a US$53.04 million

grant was signed at the Ministry of

Environment and Forests with Dr Prodipto

Ghosh, Secretary in the Ministry of

Environment and Forests, Government of

India, signing on behalf of the Government

of India. Mr S W Patwardhan signed on

behalf of the Industrial Development Bank

of India Limited, while Mr Fayez S Omar,

Senior Manager of the India Program and

Acting Country Director for India, signed

on behalf of the World Bank.

Recent Project Signings

Recent Project Approvals

Orissa Socio-Economic Development

Credit/Loan

2 November 2004

A US$125 million Orissa Socio-Economic

Development Credit/Loan was

approved by the World Bank. This

assistance will help the state address its

severe fiscal stress, characterized by large

deficits and unsustainable debt, which has

hindered its ability to release resources to

tackle poverty effectively.

Small and Medium Enterprise Financing

and Development Project

30 November 2004

A US$120 million loan was approved by

the Bank Board to the Small Industries

Development Bank of India (SIDBI), backed

by a Government of India guarantee.

This loan is aimed at improving Small and

Medium Enterprises’ access to finance and

business development services, thereby

fostering growth and employment creation.

Assam Agricultural Competitiveness

Project, 14 December 2004

A US$154 million credit to the state of

Assam was approved by the Bank

Board to assist in improving the productivity

of its agricultural sector. The project is

designed to stimulate the growth of Assam’s

agricultural economy, through activities

directed primarily at small and marginal

landholders, poor fishing communities, and

the landless. Rural communities across

the state will benefit.

Tamil Nadu Health Systems Project

16 December 2004

A credit of US$110.83 million was

approved to help the state of Tamil

Nadu improve the effectiveness of its health

system, both public and private. The project

will help introduce new approaches in the

way the health sector functions in the state,

such as promoting collaboration with the

private sector, adopting quality assurance

mechanisms, and addressing the growing

burden of non-communicable diseases.

Lucknow-Muzaffarpur Highway Project

21 Decmber 2004

The World Bank today approved a loanof US$620 million to upgrade the stretch

of National Highway No. 28 between

Lucknow in Uttar Pradesh and Muzaffarpurin Bihar on the East-West National HighwayCorridor. The Project is the fourth World

Bank loan to support the Government ofIndia’s National Highway DevelopmentProject and will help reduce transport costs

as well as contribute to opening access tothe more remote North East of the country.


The Administrative Staff College of India

[ASCI], Hyderabad is organizing a

program on procurement procedures for

The World Bank-aided projects from January

24 to February 4, 2005. The program is

supported by the Bank’s New Delhi office

by provision of faculty/training materials.

Contact:

Dr BS Chetty, Programme Director

Fax: 91-40-2332 4365 and 91-40-2331 0952

E-mail: [email protected],

[email protected].

The conference will address different

dimensions for reconciliation between

fiscal policy and urban infrastructure

investment: in policy design, analytical

understanding, national and international

debt rules, and the politics of policy

implementation. India, China, Brazil, Poland,

and South Africa will share their experience.

All five countries are pursuing a form of

decentralized urban infrastructure

management against a backdrop of

significant fiscal management challenges.

This knowledge-sharing workshop aims

to assess the working capacities of

Country Systems (laws, regulations and

institutions) and Bank’s procedures that

followed to implement the Land Acquisition

and R&R, in order to improve project results.

Forthcoming Events

TRAINING PROGRAM

Procurement Procedures for

World Bank-aided Projects

14-25 February 2005 • Faridabad

CONFERENCE

Mobilizing Urban Infrastructure Finance

in a Responsible Fiscal Framework:

Lessons from Brazil, China, India,

Poland and South Africa

6-8 January 2005 • Jaipur

WORKSHOP

Land Acquisition and Resettlement &

Rehabilitation Issues in the Transport

Sector

10-11 February 2005 • New Delhi

TRAINING PROGRAM

Procurement Procedures for

World Bank-aided Projects

24 January-4 February 2005 • Hyderabad

The workshop intends to identify

approaches and systems used and propose

appropriate improvement to the existing

systems and procedures of R&R for existing

and new transport projects.

The following are the major knowledge

events being organized by the World

Bank Public Information Center (PIC) in India

over January – February 2005:

21 January 2005

Full day knowledge event at the Gokhale

Institute of Politics and Economics, Pune

24 January 2005

Full day knowledge event at Mumbai

University Library, Mumbai

25 January - 6 February 2005

Display of World Bank publications and

electronic knowledge resources at the

Kolkata Book Fair.

PIC EVENTS

January - February 2005

The National Institute of Financial

Management, Faridabad is organizing a

program on procurement procedures for

World Bank-aided projects from February

14 to 25, 2005. The program is supported

by New Delhi office by provision of faculty

and training materials. Contact: Dr Anand

Sharma, Programme Coordinator,

Tel: 2418876 [O], 2412299 [R], 9810722989

[M]. E-mail: [email protected]

Or contact: Mr R N Ghosh,

Joint Coordinator, Tel: 2418857 [ext.239],

9810323469 [M], E-mail: [email protected]


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

India Analytical & Advisory Work

15

State Fiscal Reforms in India – Progress andProspects

Project ID : P085983Report No. : 28849(Economic Report)

States in India play anincreasingly important rolein devising, andimplementing policies tostimulate economic growth,and promote humandevelopment. But theperformance of India’s

states is increasingly divergent: State deficits and debtlevels rose sharply in the late nineties, and off-budgetliabilities also increased rapidly. This sharp fiscaldeterioration gave rise to state-level fiscal adjustmentefforts, which have shown some signs of improvement.However, concerns about the level, and composition offiscal deficits remain. This report asseses the situationacross various states.

India: Re-energizing Agricultural Sector to SustainGrowth and Reduce Poverty

Project ID: P085570Report No: 27889(Sector Report)

Agriculture in India willremain the mainstay fora large share of the ruralpopulation in the nextdecade, many of whichalso comprise the ruralpoor. Promoting morerapid agricultural growth,

particularly achieving the government goal of 4 percentgrowth per year, will be extremely crucial not only toachieving strong economic performance for the countryas a whole, but also in lifting large numbers ofagricultural households above poverty. This reportspotlights the difficult challenge of balancing shortvs. longer term policies and expenditure prioritiesto achieve targets.


Malaria Control, Orissa Health SystemsDevelopment, Tuberculosis Control, Women andChild Development, and Gujarat EmergencyEarthquake Reconstruction Projects : ProposedRestructuring of Five Projects for Polio Eradication

Project ID: P010473, P010511, P035827,P010496, P074018Report No.: 30152(Board Report)

This report seeks the approval of the ExecutiveDirectors of the Bank to restructure five projects:Malaria Control Project (Cr. 29640-IN), Orissa HealthSystems Development Project (Cr. NO41 0-IN),Tuberculosis Control Project (Cr. 29360-IN), Womenand Child Development Project (Cr. N0420-IN), andGujarat Emergency Earthquake Reconstruction Project(Cr. 36370-IN)

The proposed restructuring will assist the Governmentof India in eradicating poliomyelitis from the countryand supplement the ongoing ImmunizationStrengthening Project (Cr. 33400-IN) and theSupplemental Credit to this project (Cr. 33401-IN) byfinancing the additional polio eradication activitiesrequired on an emergency basis by the Government ofIndia. In all five projects, the proposed restructuring willneither compromise the original objectives nor affecttheir overall economic viability.

The report proposes reallocating SDR 65.35 million(approximately US$ 96 million equivalent) of creditproceeds to support urgent financing needs for a polioeradication program in India. Two of these projects(Orissa Health Systems Development and Women andChild Development) are financed through Interim TrustFunds (ITF). Approval is being sought for these twoprojects through the International DevelopmentAssociation (IDA) since ITF credits have become part ofIDA’s general resources, and IDA may act for itself withregard to such resources rather than as administratorfor ITF.

Financing Highways

Project ID : P077922Report No. : 30363 (Sector Report)

This report is designed to provide information andadvice to the Indian Union and state governments onthe principles and practicalities for establishing asound and sustainable system of highway financing.The report reviews the economic principles forestablishing efficient and equitable road user charges(road pricing), and examines the potential mechanismsfor charging road users. Present road taxation in Indiais assessed in the light of these considerations as isthe levels of highway funding required to meetgovernment objectives.

The report reviews the potential contribution of privatesector finance to the sector and assesses the presentuse of private finance and the alternative possibilitiesfor utilizing the private sector in the financing andmanagement of the network. The report also examines

the need for an agenda of sector reform whichaddresses both the financial and institutionalframeworks needed to achieve network sustainabilityand public acceptance of higher user charges.

Measuring the Risk on Housing Investment in theInformal Sector: Theory and Evidence from Pune,India

By David le Blanc andMudit Kapoor

World Bank PolicyResearch Working PaperWPS3433

Free! OnlineEnglish 47 pp.Published October 2004

The authors provide aneconomic framework to

analyze investment in informal housing in developingcountries. They consider a simple model of investmentin the housing market where investors can choosebetween two sectors – the formal sector, wherephysical investment faces no risk of destruction, andthe informal sector, where investment in each periodis subjected to an exogenous risk of destruction.

The model implies that returns on investment,measured by the rent-to-value ration, will be higherin the informal sector. The authors use a surveyconducted by the World Bank in Pune in 2002.This survey had asked 2,850 households, regardlessof tenure status, questions about the market rent andvalue of their dwelling. Thus they calculated individualrates of return for each unit without facing the typicalselection bias problems. Comparing the distributionsof returns in the informal and formal sectors, theauthors obtained the following results:

● Rates of return are significantly higher in theinformal sector, as predicted by the model.

● These figures imply a perceived risk on housinginvestment in the informal sector equivalent to anannual destruction rate ranging between 1 and2 percent.

● The two distributions of rates of return presenthighly idiosyncratic components and are not wellexplained by variables proxying either the strengthof informal property rights or lower perceivedrisks of eviction.

India’s Public Health System: How Well Doesit Function at the National Level?

By Monica Das Gupta and Manju Rani

World Bank Policy Research Working PaperWPS3447Free! On-lineEnglish 26 pp. Published November 2004

India has relatively poor health outcomes, despitehaving a well-developed administrative system,


India Investment Climate 2004By World Bank

Free! OnlineEnglish Paperback 63 pp.Published November 2004

Doing Business in 2005 : India Regional ProfileBy World Bank

Free! OnlineEnglish Paperback 56 pp.Published August 2004

Publications

17

good technical skills in many fields, and an extensivenetwork of public health institutions for research,training, and diagnostics. This suggests that the healthsystem may be misdirecting its efforts, or may bepoorly designed.

To explore this, the authors use instruments developedto assess the performance of public health systems inthe United States and Latin America based on theframework of the Essential Public Health Functions,identified as the basic functions that an effective publichealth system must fulfill.

The authors focus on the federal level in India, usingdata obtained from senior health officials in the centralgovernment. The data indicates that the reportedstrengths of the system lie in having the capacity tocarry out most of the public health functions. Itsreported weaknesses lie in three broad areas.

First, it has overlooked some fundamental public healthfunctions such as public health regulations and theirenforcement. Second, deep management flaws hindereffective use of resources, including inadequate focuson evaluation, on assessing quality of services, ondissemination and use of information, and on opennessto learning and innovation.

Third, the central government functions too much inisolation and needs to work more closely with other keyactors, especially with sub-national governments, aswell as with the private sector and with communities.The authors conclude that with some reassessment ofpriorities and better management practices, healthoutcomes could be substantially improved.

Rural Access to Electricity: Strategy Optionsfor India

By World Bank

Free! OnlineEnglish Paperback 56 pp.Published August 2004

This paper reviews strategicchoices for advancing ruralelectrification in India.Its aims are twofold:

1. to contribute to thecurrent lively debate on

power sector reform and 2. to complement the 2002World Bank discussion draft, Power for India: AStrategy for Sustained Reform in the State PowerSectors. It endorses the broader reform agendaproposed in this discussion draft and takes a closerlook at the subject of rural power. This is importantbecause the rural electricity sector poses a majorobstacle to broader power sector reform, and hindersIndia’s effectiveness in achieving its rural developmentand poverty-reduction goals.

Global Economic Prospects 2005: Trade,Regionalism, and Development

By World Bank

Price: $ 38.00English Paperback182 pp.Published November 2004ISBN: 0-8213-5747-6 SKU:15747

Today, as much as40 percent of global tradetakes place amongcountries that have some

form of reciprocal regional trade agreement. GlobalEconomic Prospects 2005: Trade, Regionalism, andDevelopment addresses two questions in this context:

● What are the characteristics of agreements thatmost promote – or hinder – development formember countries?

● Does the proliferation of agreements pose risks tothe multilateral trading system, and if so, how canthese risks be managed?

The report argues that agreements leading to openregionalism – that is, deeper integration of trade as aresult of low external tariffs, increased servicescompetition, and efforts to reduce cross-border andcustoms delays costs – are effective as part of a largertrade strategy to promote growth.

Although regional agreements can prove beneficial tomember countries, they can have adverse effects onexcluded countries. Lowering of border barriers aroundthe world is crucial to minimizing these effects.


Global Economic Prospects 2005 Overview:Trade, Regionalism, and Development

By World Bank

Price: Free!English Paperback60 pp.Published November 2004ISBN: 0-8213-6035-3 SKU: 16035

Global Agricultural Trade and Developing Countries

Edited by M. Ataman Aksoy, John C. Beghin

Price: $ 45.00English Paperback 448 pp.Published November 2004ISBN: 0-8213-5863-4 SKU: 15863

This title presents research findings based on a seriesof commodity studies of significant economicimportance to developing countries. First, the booksets the stage with background chapters andinvestigations of cross-cutting issues. Trade anddomestic policy regimes affecting agricultural and foodmarkets are described, and the resulting patterns ofproduction and trade assessed.

Given this context, the book presents detailedcommodity studies for coffee, cotton, dairy, fruits andvegetables, groundnuts, rice, seafood products, sugar,and wheat. These markets feature distorted policyregimes among industrial or middle-income countries.The studies analyze current policy regimes in keyproducing and consuming countries and documentsthe magnitude of these distortions and estimates thedistributional impacts.

The Microeconomics of Income DistributionDynamics in East Asia and Latin America

Edited by Nora Lustig,Francois Bourguignon,Francisco H. G. Ferreira

Price: $ 38.00English Paperback 436 pp.Published October 2004ISBN: 0-8213-5861-8 SKU:15861

Economists have had muchto say about what causesaggregate economicgrowth, but they have been

more reticent about the distributional dimension ofthat growth. The authors of this title propose adecomposition of differences in entire distributions ofhousehold incomes, shedding new light on thepowerful, and often conflicting, forces that underpinthe changes in poverty and inequality that accompanythe process of economic development. This approachis applied to three East Asian countries – Indonesia,Malaysia, and China – and to four in Latin Americanones – Argentina, Brazil, Colombia, and Mexico.

Lessons from NAFTA: For Latin America and theCaribbean

By Daniel Lederman,William F. Maloney, LuisServen

Price: $ 35.00English Paperback 432 pp.

Published November 2004ISBN: 0-8213-5813-8 SKU:15813

Analyzing the experienceof Mexico under the NorthAmerican Free Trade

Agreement (NAFTA), this book aims at providingguidance to Latin American and Caribbean countriesconsidering free trade agreements with the UnitedStates. The authors conclude that the treaty raisedexternal trade and foreign investment inflows and had amodest effect on Mexico’s average income per person.It is likely that the treaty also helped achieve a modestreduction in poverty and an improvement in job quality.

Corporate Restructuring: International BestPractices

Edited by Michael Pomerleano, William Shaw

Price: $ 40.00English PaperbackPublished November 2004ISBN: 0-8213-5928-2 SKU: 15928

What are the roots of corporate distress?Can systemic corporate crises be predicted?What is the role of legal frameworks in preventingand coping with a crisis? What are the most effectivefinancial techniques for dealing with distressedcorporates? This volume, which comes in the wakeof the periodic financial crises of the late 1990s, takesa multidisciplinary perspective on corporaterestructuring, and examines international experiencesin dealing with corporate crises.

Deeper Integration and Trade in Services in theEuro-Mediterranean Region: Southern Dimensionsof the European Neighborhood Policy

By Daniel MŸller-Jentsch

Price: $ 15.00English Paperback 126 pp.Published November 2004ISBN: 0-8213-5955-X SKU:15955

The Arab countries of thesouthern Mediterraneanrim have long suffered fromeconomic stagnation and

an increasing marginalization in the global economy.Deeper economic integration with the enlargedEuropean Union – accounting for a quarter of globalGDP and foreign direct investment – could become a


main driver for economic development in the southernMediterranean countries. The planned Euro-Mediterranean free trade area for goods is a first stepin that direction, while the European NeighborhoodPolicy, launched in 2003, could provide an appropriatepolicy framework for integration.

This title analyzes the adjustment needs and policyoptions associated with deeper integration betweenthe two sides of the Mediterranean Sea. It puts specificemphasis on the dynamics of deeper integration at thecompany level, including issues such as outwardprocessing trade, supply-chain integration, and theoutsourcing of back-office functions.

The title also contains a detailed assessment ofindividual sectors – especially the backbone services(e.g. transport, telecommunication, financial markets,electricity) and other markets of particular relevance fordeeper integration (e.g. tourism, IT-enabled services,distribution services).

Gender, Conflict, and Development

By Tsjeard Bouta, GeorgFrerks, Ian Bannon

Price: $ 20.00English Paperback 220 pp.Published November 2004ISBN: 0-8213-5968-1 SKU:15968

Gender, Conflict, andDevelopment identifies alink between gender andconflict issues and provide

the most comprehensive review of external and internalsources on gender and conflict, with a particular focuson policy relevance for an institution such as the Bank.

The book highlights the gender dimensions of conflict,organized around major relevant themes such asfemale combatants, sexual violence, formal andinformal peace processes, the legal framework, work,the rehabilitation of social services and community-driven development. And for each theme it analyzeshow conflict changes gender roles and the policyoptions that might be considered to build on positiveaspects while minimizing adverse changes.

The suggested policy options and approaches aim totake advantage of the opportunity afforded by violentconflict to encourage change and build more inclusiveand gender balanced social, economic and politicalrelations in post-conflict societies.

Household Risk Management and SocialProtection in Chile

By World Bank

Price: $ 15.00English Paperback 116 pp.Published November 2004ISBN: 0-8213-5953-3 SKU: 15953

19

This title is part of the World Bank Country Studyseries published with the approval of the subjectgovernment to communicate the results of the Bank’swork on the economic and related conditions ofmember countries to governments and to thedevelopment community. World Bank Country Studiesare available individually or by subscription, bothin print and online.

Household Risk Management and Social Protectionin Chile takes a critical look at the country’s socialprotection set up to determine if a system exists orsimply a set of loosely coordinated programs. Thestudy finds that Chile succeeds in providinghouseholds with the instruments that they need tomitigate shocks to income.

The institutions Chile has put in place to helphouseholds lower losses from these shocks – from thenew unemployment insurance system, the retirementsecurity system and the mixed health insurance system– are generally appropriately designed to match thenature of the risks they are intended to cover. Yet, whilestill in a minority, too many Chilean households – evenamong the non poor – do not have access to thesophisticated, state of the art social protectioninstitutions that are in place.

The study also provides the Government of Chilewith a set of guidelines, grounded in a conceptualframework, that if carefully applied, could increasethe effectiveness of social protection.

International Financial Reporting Standards:A Practical Guide (Newly Revised Edition)

By Hennie van Greuning

Price: $ 30.00English Paperback312 pp.Published October 2004ISBN: 0-8213-5910-XSKU: 15910

Applying InternationalFinancial ReportingStandards (IFRS) in abusiness situation can have

a significant effect on the financial results and positionof a division or an entire business enterprise.International Financial Reporting Standards: A PracticalGuide gives private and public sector executives,managers, or financial analysts without a strongbackground in accountingthe tools they need to participate in discussions anddecisions on the appropriateness or application ofIFRS. Many chapters of the book also containexamples that illustrate the practical application ofkey concepts in a particular standard.

Titled International Accounting Standards: A PracticalGuide in its previous two editions, the publicationincludes all of the standards issued by the InternationalAccounting Standards Board (IASB) through 31 May2004.


Keeping the Promise of Social Security inLatin America

By Indermit S. Gill, TrumanG. Packard, Juan Yermo


Empirical analysis of twodecades of pioneeringpension and social securityreform in Latin America andthe Caribbean shows that

much has been achieved, but that critical challengesremain. Keeping the Promise evaluates policy reformsin 12 countries, points to successes and shortcomings,and proposes priorities and options for future reform.

Books, Buildings, and Learning Outcomes: AnImpact Evaluation of World Bank Support toBasic Education in Ghana

By Howard Nial White

Price: $ 20.00English PaperbackPublished October 2004ISBN: 0-8213-5884-7 SKU: 15884

This book examines the impact of World Bank-supported educational reforms introduced in Ghanasince 1986 and related investment projects in supportof basic education. A nation-wide survey ofhouseholds, schools, and teachers found that both thequantity and quality of schooling has improved over thelast fifteen years, leading to better welfare as measuredby higher income, better nutrition, and reducedmortality.

Increased school quality can be linked to the Bank’ssupport which has financed the construction of 8,000classroom blocks and provided 35 million textbooksover the last 15 years. Moreover, Bank support helpedsustain initially unpopular reforms, demonstrating theefficacy of working in partnership with a governmentcommitted to a well-defined sectoral strategy.

Reshaping the Future: Education and Post-ConflictReconstruction

By Peter Buckland

Price: $ 12.00English 120 pp.Published October 2004ISBN: 0-8213-5959-2 SKU:15959

The aim of Reshaping theFuture is to drawinternational attention tothe key role that educationcan play in both preventing

conflict and in reconstructing post-conflict societies.The author also hopes to alert developing countriesand donors alike to the devastating consequencesof conflict on a country’s education systems andoutcomes, as well to emphasize the importance ofmaximizing the opportunities to reform educationsystems presented by a reconstruction setting,adopting a long-term development perspective,and emphasizing equity and quality in the deliveryof education services.

The book highlights significant findings on educationand post-conflict reconstruction drawn from thoroughresearch and literature review, a survey and databaseof key indicators for 52 conflict-affected countries,and a review of 12 country studies.

Competition in International Voice Communications

By Carlo Maria Rossotto, Björn Wellenius, Anat Lewin,Carlos R. Gomez

Price: $ 15.00English Paperback 52 pp.ISBN: 0-8213-5951-7 SKU: 15951

This title presents the case that opening internationalvoice communication to competition – key to reformingthe telecommunications sector – is sustainable indeveloping countries, and results in major gains toconsumers, businesses, and to the economy.

Currently, over 80 percent of global voice trafficoriginates in fully competitive markets. Resistance tocompetition remains strong in several developingcountries, even though countries such as Chile andEl Salvador have demonstrated spectacular success inintroducing and sustaining competition. Competition inInternational Voice Communications makes a case foropening developing country markets quickly ratherthan gradually; it also identifies regulatory matters thatneed to be tackled in opening the markets tocompetition: better licensing, interconnection anduniversal service regime.

Private Solutions for Infrastructure in Rwanda

By PPIAF, World Bank


One of the major themesthat lies at the heart ofthe Rwandan government’seconomic vision is therefurbishment and

development of Rwanda’s core economicinfrastructure. This book looks at the progressRwanda has made and provides a review of thecountry’s infrastructure in the transport, energy,telecommunications, and water and sanitation sectorsand presents suggestions on improving the

20


Financial Sector Policy and the Poor: SelectedFindings and Issues

By Patrick Honohan

Price: $ 15.00English 86 pp.Published October 2004ISBN: 0-8213-5967-3 SKU: 15967

Part of the World Bank Working Paper series publishedto communicate the results of the Bank’s ongoingresearch and to stimulate public discussion, this paperpresents new empirical evidence on how financialsector policy can help the poor. World Bank WorkingPapers are available individually or by subscription,both in print and online.

The roles played by microfinance and mainstreamfinance in tackling poverty should be regarded ascomplementary and overlapping rather than ascompeting alternatives. This paper calls for policydesign that recognizes that the need for larger andstronger microfinance institutions poses no threat tothe health of mainstream finance. Such a policy wouldnot impose low interest rate ceilings; nevertheless, thegoal of protecting the vulnerable from credit marketabuses and prejudice should not be neglected in aneffective package of policies favorable to the growthof both micro and mainstream finance.

Latest on the Web

New material on Economic Policy and Gender

A range of materials on Economic Policy and Genderis now available online. The material includes researchpapers, summaries of key findings, operationalexperience and tools on: Trade and competitiveness,public expenditure, public sector downsizing, labormarkets, pension reform, safety nets and transfers,and child labor. It can be accessed onhttp://www.worldbank.org/gender

Governance Demythologized

The World Bank Institute (WBI) launched ane-discussion series in order to generate debateabout some popular notions in the field of governance.Some samples:

Myth: All poor countries are corrupt while the richare not.

Myth: Poor countries are necessarily corrupt, while therich world is a model of integrity

Myth: For a transaction to be corrupt, it necessarilyought to be illegal.

Myth: The measurement of corruption ought to focuson the extent of bribery, in the public sector.

Myth: Multinationals headquartered in rich OECDcountries do not bribe abroad.

Follow the discussion http://www.worldbank.org/wbi/governance/pubs/gcr2004.html

21

environment for private sector involvement ininfrastructure. Although the span of the content isbroad, the book focuses in particular on the potentialthat exists to involve the private sector in infrastructureand the policies and actions that are necessary tomake this happen.

Zambia: Public Expenditure Management andFinancial Accountability Review

By World BankPrice: $ 25.00English Paperback 202 pp.

Published October 2004ISBN: 0-8213-5924-XSKU: 15924

According to this countrystudy, poverty is on the risein Zambia, its economy isnot growing fast enough,the quality of economic

governance is on the decline, and its public resourcesare not well spent. Addressing the long-standingchallenges that Zambia faces in public expendituremanagement will require strong political will. In orderto assure that public accountability is enduring and notdependent on the government which happens to bein power, it must strengthen budget processes andinstitutions that can provide public oversight andpromote basic checks and balances.

The study also provides an analysis of how Zambiacan strengthen budgetary processes and institutionsfor accountability and effective service delivery to itscitizens.

Spending Wisely: Buying Health Services forthe Poor

Edited by Alexander S. Preker, John C. Langenbrunner

Price: $ 35.00English 450 pp.Published September 2004ISBN: 0-8213-5918-5 SKU: 15918

With a special focus on strategic purchasing andcontracting of services from non-governmentalproviders, this title reviews ways to make publicspending on health care more efficient and equitablein developing countries. It recommends that:

● Experiments and pilot projects for improving publicsector hospitals should focus on mission clarity andorganizational simplification;

● Programs for improving the composition ofutilization should experiment with payments toconsumers and with health labor force compositionand training; and

● Initiatives to attract providers to rural areas shoulduse explicit deferred compensation contracts toimprove monitoring


India Project Documents Karnataka: Rural Service Delivery and LocalGovernment Support Project

Date : 21 October 2004Project ID : P078832Report No. : AC954 (Integrated Safeguards Data

Sheet) AB1075 (Project Information Document) E1051 (Environmental Assessment)

Lucknow-Muzaffarpur NationalHighway Project

Date : 15 October 2004Project ID : P077856Report No. : 30290 (Integrated Safeguards Data

Sheet)

Second State Health SystemsDevelopment Project

Date : 21 September 2004Project ID : P035825Report No. : 30066 (Implementation Completion

Report)

Maharashtra Water Sector ImprovementProject

Date : 17 December 2004Project ID : P084790Report No. : 30750 (Board Report)

E1049 (Environmental Assessment) (3 vols.) AB1134 (Project Information Document) AC986 (Integrated Safeguards Data Sheet)

Small and Medium Enterprise Financingand Development Project

Date : 9 December 2004Project ID : P086518Report No. : 30400 (Project Appraisal Document)

AC693 (Integrated Safeguards Data Sheet)

Andhra Pradesh State Highway Projects

Date : 29 November 2004Project ID : P009995Report No. : 29883 (Implementation Completion

Report)

Karnataka Health Systems Project

Date : 26 November 2004Project ID : P071160Report No. : 30529 (Project Information Document)

Dam Rehabilitation and Improvement Project

Date : 3 November 2004Project ID : P089985Report No. : AC1027 (Integrated Safeguards Data

Sheet) AB1100 (Project Information Document)

Andhra Pradesh Urban Reforms andMunicipal Services Projects

Date : 1 November 2004Project ID : P071250Report No. : E1038(Environmental Assessment)

(2 vols.)

Assam Agriculture Competitiveness Project

Date : 1 November 2004Project ID : P084792Report No. : 30868 (Social Assessment)

E984 (Environmental Assessment)

Second Chennai Water Supply Project

Date : 27 October 2004Project ID : P010461Report No. : 29333 (Implementation Completion

Report)

WB Policy Research Working Papers

3461Looking beyond Averages in the Trade andPoverty DebateBy Martin Ravallion

3460Schooling and Labor Market Impacts of a NaturalPolicy ExperimentBy Chris N. Sakellariou and Harry Anthony Patrinos

3459Economic Volatility and Returns to Education inVenezuela: 1992–2002By Chris N. Sakellariou and Harry Anthony Patrinos

3458Regionalism in Standards: Good or Bad for Trade?By Maggie Xiaoyang Chen and Aaditya Mattoo

3457Creating a 21st Century National Innovation Systemfor a 21st Century Latvian EconomyBy Natalia Agapitova and Alfred Watkins

3456Macroeconomic Stability in Developing Countries:How Much Is Enough?By Luis Servén and Peter J. Montiel

3455Labor Market Distortions, Rural-Urban Inequality,and the Opening of China’s EconomyBy Fan Zhai and Thomas W. Hertel

3454Will the Kyoto Protocol Affect Growth in Russia?By Franck Lecocq and Zmarak Shalizi

22


3453Education Decentralization and AccountabilityRelationships in Latin AmericaBy Emmanuela Di Gropello

3452Import Demand Elasticities and Trade DistortionsBy Alessandro Nicita, Hiau Looi Kee and MarceloOlarreaga

3451Romania’s Integration into European Markets:Implications for Sustainability of the Current ExportBoomBy Bartlomiej Kaminski and Francis Ng

3450Discovery and Development: An EmpiricalExploration of ‘New’ ProductsBy Bailey Klinger and Daniel Lederman

3449Does It Matter Where You Come From? VerticalSpillovers from Foreign Direct Investment and theNationality of InvestorsBy Kamal Saggi, Beata Smarzynska Javorcik andMariana Spatareanu

3448What Are the Right Institutions in a GlobalizingWorld? And ... Can We Keep Them if We’ve FoundThem?By Roumeen Islam

3447India’s Public Health System: How Well Does ItFunction at the National Level?By Monica Das Gupta and Manju Rani

3446The Long-Term Legacy of the Khmer Rouge Period inCambodiaBy Damien de Walque

3445Has Private Participation in Water and SewerageImproved Coverage? Empirical Evidence from LatinAmericaBy George Clarke, Katrina Kosec and Scott Wallsten

3444Predicting the Poverty Impacts of Trade ReformBy Jeffrey J. Reimer and Thomas W. Hertel

3443Improving Credit Information, Bank Regulation, andSupervision: On the Role and Design of Public CreditRegistriesBy Giovanni Majnoni, Margaret Miller, Nataliya Mylenkoand Andrew Powell

3442Emerging Infrastructure Policy Issues in DevelopingCountries: A Survey of the Recent EconomicLiteratureBy Antonio Estache

3441Policies Facilitating Firm Adjustment to GlobalizationBy Bernard Hoekman and Beata Smarzynska Javorcik

3440Market Discipline under Systemic Risk: Evidencefrom Bank Runs in Emerging EconomiesBy Eduardo Levy Yeyati, Maria Soledad Martinez Periaand Sergio Schmukler

3439Elections, Special Interests, and the Fiscal Costs ofFinancial CrisisBy Philip Keefer

3438Addressing Gender-Based Violence in the LatinAmerican and Caribbean Region: A Critical Review ofInterventionsBy Sarah Bott, Mary Ellsberg and Andrew Morrison

3437Bank Capital and Loan Loss Reserves under Basel II:Implications for Emerging CountriesBy Andrew Powell, Giovanni Majnoni and MargaretMiller

3436Approaches to Results-Based Funding in TertiaryEducation: Identifying Finance Reform Options forChileBy Lauritz Holm-Nielsen, Jette Samuel Jeppesenand Kristian Thorn

3435Population Age Structure and the Budget DeficitBy Derek H. C. Chen

3434North-South Technology Diffusion, RegionalIntegration, and the Dynamics of the ‘Natural TradingPartners’ HypothesisBy Yanling Wang and Maurice Schiff

3433Measuring the Risk on Housing Investment in theInformal Sector: Theory and Evidence from Pune,IndiaBy David le Blanc and Mudit Kapoor

3432Growth, Inequality, and Simulated Poverty Paths forTanzania, 1992–2002By Gabriel Demombynes and Johannes Hoogeveen

3431Financial Development, Financial Fragility, andGrowthBy Norman Loayza and Romain Ranciere

3430The Forest-Hydrology-Poverty Nexus in CentralAmerica: An Heuristic AnalysisBy Kenneth M. Chomitz and Andrew Nelson

3429Creating Markets for Habitat Conservation whenHabitats are HeterogeneousBy Timothy S. Thomas, Antonio Salazar Brandaoand Kenneth M. Chomitz

23


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