World Bank to focus on fund utilization

NEW DELHI: As part of its country strategy 2009-2012 for India, World Bank will now focus on how the allocated funds ($14 billion) for various projects are utilized in the next three years.
With increased allocation of development budget, almost to the tune of $4.5 billion per year, World Bank's new strategy for India, which rolls out this year, will mainly concentrate on timely implemetation of projects.
World Bank's acting country director Rachid Benmessaoud told TOI that the bank will lay more stress on service delivery and timely implementation of the projects, as a part of the strategy which was finalized recently in Washington DC.
He said: "The main issue in India is the efficiency of public spending and now when we see that the performance is not up to the mark, the response will have to be decisive." A case in point is the Lucknow-Muzaffarpur national highway project.
The World Bank had voiced its concerns and also threatened to suspend the financial support to the projects if there was further delay in project implementation and safety of construction sites.
Benmessoaud says, "It is important to realise that whatever action we take has to have a lasting impact on the system so it is the delivery level where the impact has to be made going forward.
Giving out the details of the World Bank's country strategy for 2009-2012 he says, "It is aligned to the government of India's 11th five year plan and envisages a lending program of $14 billion."
Benmessaud adds, "Assistance would be tailored both to fast track the much-needed infrastructure development and to support the country's seven poorest states achieve better living standards for their citizens.
In the seven low-income states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh, the Bank's focus will be on poverty reduction and helping them achieve the Millennium Development Goals.
Giving support to middle-income states will be on two fronts: fighting poverty in the lagging areas of these states, and addressing the challenges emerging from rapid growth, compounded now by the global economic downturn. The new strategy will also support some of India's middle-income states such as Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra.