The World Bank has announced $ 4.3 billion financial aid to India through a new innovative and flexible financing arrangement to help the country fight poverty.
This arrangement, while facilitating a $ 4.3 billion increase in support to India, is designed to maintain International Bank for Reconstruction and Development’s (IBRD) - which is its lending arm - net exposure within the limit of $ 17.5 billion established by it.
In a statement, the World Bank said the new arrangement will allow for special bonds to be issued by the World Bank and purchased by India, to offset additional planned lending.
This will enable India to continue accessing long-term, low-interest IBRD finance for development projects aimed at improving the lives of its people, one third of whom are yet to make their way out of poverty.
“Without taking this action, it would have been difficult for the Bank to assist India meaningfully as it tackles the remaining large challenges of lifting some 300 million out of poverty,” said WB vice president for South Asia Isabel Guerrero.
“This new arrangement will work towards supporting India’s development needs, showing the Bank can be innovative, flexible and responsive to the differentiated needs of our client countries,” she said in a statement.
The Bank said like other emerging economies, India is faced with the challenge of removing bottlenecks in infrastructure and human skill development that can constrain its ability to sustain non-inflationary, rapid and inclusive growth.
In line with its aim to support India’s development goals, the World Bank has nearly 80 active projects in India, with several large projects in the critical area of infrastructure.
Keywords: World Bank aid, poverty
The Indian govt by virtue of these foreign aids have been effectively
leasing the country to foreign corporatists, the rampant corruption
ensures that the dues are not paid back...An effective ombudsman can
hopefully clear up the atmosphere in INDIA, thats what IAC and indeed
the whole of INDIA has been clamouring for.
Do we need the world bank aid to solve our poverty problems? Is it really the lack of money the reason for eradicating poverty ? The lack of political will, ineffective programmes and lack of sensitivity are the main reasons for the poverty still prevalent.
I would like to request the editor of the "The Hindu" to clarify if
this is an 'AID' or 'LOAN', for an aid given in good will reflects the
kindness of the giver and requires gratitude from the taker whereas a
loan is just a business deal and both are equally benefited by the
deal and hence the question of gratitude as no place in such a deal.
If it is really an 'aid', then "The Government of India" must explain
to "The People of India" what prompted it to go and beg some external
agency for help when our economy is said to growing at a high pace and
the reserves burgeoning with Forex reserves.
Why can't The Government of India take those 4 billion dollars from
its reserves and spend for the poor? If the Government thinks it
cannot spend that money for the poor, then I would request it to beg
the Indian citizens for donations rather than to bow down before
external agencies.
I demand a detailed execution plan for spending these funds; it is
shame on us to still beg others for funds.
While the $4.3 billion loan from the World Bank is indeed a welcome measure, the greater issue is that of its effective use. India's poverty alleviation measures need to be thoroughly revisited and possibly revamped for better results. Any anti-poverty spending must necessarily ensure that it does not result in domestic inflation but, at the same time, addresses supply side constraints and galvanises economic activity. This can be the only effective recipe for combating poverty in an emerging economy like India.
It now remains to be seen to what extent the aforesaid financial aid trickles down to the lowest rung of the economy, and to which it elevates the 300 million poverty stricken Indians out of their plight.
Will this land up in the right Hands.. Being Indian I Doubt.. But if i was a politician then i would be sure..
One wonders if there is a relation between the foreign aid to NGOs
which in turn are diverting funds to destablize govt initiatives in
India and such 'aid' from world bank. Recent history shows that the
west don't really care for our poor, then what else can be speculated
about this hypocrisy?
And its hardly a surprise this is coming from the world bank just
weeks before the scheduled change of its chairman. We hope the
developing nations put a meritorious candidate in place as the
chairman of the World Bank who initiates serious development efforts
for a change.
How can World Bank do this ? ..are the same Wall Street people running the World Bank who caused the Americal bank collapse ? I mean India has somuch corruption, more than few billion USD at least, and no quality of life for most or all poor people. Then how can they lend money to India ? I mean its like lending money to someone who just declared bankruptcy! or who is just proved to be a fraud!
Just one of these recent Scam money is good to pay off all the loans we have. Shame on the Indian Govt.
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