THE WorldBank IN INDIA

Public Disclosure Authorized VOL 4 / NO 2 SEPTEMBER 2005 Public Disclosure Authorized Public Disclosure Authorized I N S I D E

Bank President visits India 1-5 India has lessons in development Transport development in India and China: A for the world, says Wolfowitz comparison 6-8 Events 9 Implementation Completion he President of the World Bank, Paul D. Wolfowitz, was in India Reports: An Update 10-12 Tover 17-20 August 2005 on his first visit to the country after taking New Additions to the over as head of the development institution. “India is rapidly emerging Public Information Center 13 as a country of global importance and we are seeing its footprint across Public Disclosure Authorized Contact Information 24 the world now in new and exciting ways. I am here to learn from your model of development and reform in a democratic environment,” said Mr. Wolfowitz on his arrival at Hyderabad. About the Photograph: Mr. Wolfowitz began by traveling through two villages of Mahbubnagar World Bank President Paul D. Wolfowitz with district, Andhra Pradesh (AP), where he interacted with members of schoolgirls in Kosigi village women’s self-help groups (see box) being supported under the Bank’s in Andhra Pradesh’s Mahbubnagar district. AP District Poverty Initiatives Project and the AP Rural Poverty Reduction Photos: Sondeep Shankar Project. While in Andhra Pradesh, Mr. Wolfowitz also the rural areas. Infrastructure constraints are met parents and children of a school an impediment to growth. The government supported by India’s Sarva Shiksha Abhiyan, has rightly made provision of rural to which the Bank is a contributor. He also infrastructure and investments in hard met beneficiaries of the Bank-assisted AP infrastructure a priority. The World Bank feels Community Forestry Project, as well as a privileged to support these efforts.” community that had benefited from the The government also sought Bank support government’s Swajaldhara rural drinking in encouraging public-private partnerships in water scheme. infrastructure projects. India needs to invest In New Delhi, Mr. Wolfowitz met with the Prime Minster, Finance Minister, and the Deputy Chairman of the Planning Commission. He also called on the President of India, and was able to meet several chief Right: ministers and parliamentarians in informal The Bank settings. Outside of the official meetings, he President met specialists in gender issues, private addresses a press conference industry, and representatives of South Asian in New Delhi youth.

about US$ 100 billion in the next seven years in areas like highways, power, airports, ports and railways but it is difficult to attract the private sector as infrastructure projects are not always high-return. The government discussed with Mr. Wolfowitz the possibility of setting up a ‘viability gap financing fund’ - which private investors could access on a competitive basis – and agreed to explore this idea further.

While in New Delhi, Mr. Wolfowitz, joined India’s Minister of Finance P. Chidambaram in witnessing the signing of the US$ 325 million loan agreement for the Maharashtra Above: The official meetings had a common focus: Water Sector Improvement Project. Mr. Wolfowitz Rural infrastructure and physical Speaking at the event, Mr. Wolfowitz, said: with India’s infrastructure. The government briefed Mr. “I hope this Project – which is aimed at Finance making every drop of water count in Minister, P. Wolfowitz on its Bharat Nirman initiative, Chidambaram which is a highly ambitious program of Maharashtra – can be an excellent example investment in six rural sectors – irrigation, of development work making a real drinking water and sanitation, roads, telecom difference for people battling to improve connectivity, electrification and housing. their lives.” The Bank is already active in the first three sectors and the government sought expanded Bank involvement in them. The President agreed to target at least US$ 3 Right: billion in new lending in these sectors over Mr. Wolfowitz the next three years out of the existing CAS and the lending targets for India. Country Director “Although India is making rapid strides, for India it has an unfinished agenda,” said Mr. Michael Carter in the Bank’s Wolfowitz. It is still home to a quarter of the New Delhi office world’s poor people, most of whom reside in

122 The World Bank in India • September 2005 Right: Mr. Wolfowitz spent a considerable part of his field visit in rural Andhra Pradesh meeting women from self-help groups

At his own request, Mr. Wolfowitz sought a the government share its lessons with other briefing from the government on India’s affected countries. “India’s response to the tsunami experience. Representatives of the tsunami, both immediately after the disaster Centre, the Planning Commission, and the struck and now in the reconstruction phase, governments of Tamil Nadu, Pondicherry has been remarkable. The World Bank is and Andaman and Nicobar Islands proud to support this effort and looks described the steps they had taken forward to carrying the learnings from India immediately after the disaster and their to the other affected countries,” he said. approach to the reconstruction process. The Prime Minister and Finance Minister They were appreciative of the Bank’s quick gave Mr. Wolfowitz a clear message that response to their funding needs and the they deeply valued India’s partnership with advice the Bank team had been providing. the World Bank, appreciated the work its The President was very impressed with staff were doing, and saw the relationship India’s performance and recommended that expanding in the years ahead.

Rural Infrastructure Projects signed in FY 2003-05

Projects Approval Date Closing Date Commitment Amount (US$) Million

FY 2004-05 Madhya Pradesh Water Sector Improvement Project 7 Sept 2004 31 March 2011 394.0 Rural Roads Project 23 Sept 2004 31 March 2010 399.5 Assam Agricultural Competitiveness Project (Irrigation and rural infrastructure components) 14 Dec 2004 31 March 2010 142.85 Maharashtra Water Sector Improvement Project 23 June 2005 31 March 2012 325.0

FY 2003-04 Uttaranchal Watershed Development Project 20 May 2004 31 March 2012 69.6 Maharashtra Rural Water Supply and Sanitation Project 26 August 2003 30 Sept 2009 181.0

Total Lending for Rural Infrastructure FY 2003-05 1511.95

The World Bank in India • September 2005 123 You are the real leaders, Bank President tells AP village women

lunging into rural India on the first full The women clamoured to narrate their stories Pday of his visit to the country, the President with an infectious energy and enthusiasm of the World Bank, Paul D. Wolfowitz visited which was hard to leave behind. One woman, Mushrifa and Kosigi villages in Andhra Pradesh’s Anjilamma described how she had once Mahbubnagar district, to meet women from poor depended on daily wage labor, but thanks to rural villages. careful use of borrowings from her self-help group, had gradually been able to buy cattle and The women described how the creation of self- land. She was now putting her son and daughter help groups under two Bank-assisted projects– through college. the AP District Poverty Initiatives Project and the AP Rural Poverty Reduction Project – had helped “It used to be a hand-to-mouth existence,” them not only improve their livelihoods, educate explained another woman, Deramma. “ But now their children, buy assets, but also campaign we are self-reliant, and can educate our children. against oppressive social practices, and become We now have the confidence that we can come a force for development in their villages. He first out of poverty.” met members of a single group in Mushrifa village, Ramulamma, the 28-year-old president of the then representatives at the block (mandal) district federation of self-help groups, explained federation level in Kosigi, and finally, in Hyderabad how the confidence the women had gained SHG leaders from all districts of the state. enabled them to successfully campaign in some villages against age-old practices like jogini (handing over daughters to become temple courtesans) and the barring of certain castes from entering temples.

Top next page: Mr. Wolfowitz being welcomed to Mushrifa village

Below: Mr. Wolfowitz talking to Kiran, 11, a student of Class 5 in Mushrifa village

124 The World Bank in India • September 2005 In returning to Hyderabad in the evening, poverty is something pre-determined and life-long. Mr. Wolfowitz, in the company of state chief Ever since I joined this group, I have realized that minister Y. Rajasekhara Reddy, met more than a poverty is something one can put behind.” hundred self-help group representatives from Mr. Wolfowitz was impressed by the sheer scale other districts of the state. It was a noisy of what was happening in the state. “We are not gathering and spontaneous as each woman, talking of one or two pilot projects or model unfazed by the dignitaries and huge battery of villages, but a state-wide phenomenon. There are media, insisted on making her point. lessons here for the rest of India and the world,” he said.

To the women, the World Bank President had a clear message: “You have demonstrated that you can repay your loans and manage your money. You can sustain this movement because commercial banks will now not hesitate to lend to you. What impressed me most was not just that you are earning more and giving your children a brighter future, but how you were able to come together for a common purpose. A leader is one who is convinced of her beliefs and can convince Above: others. You have become real leaders and are a Mr. Wolfowitz with the Chief Minister of Andhra Pradesh, treasure for your communities and country.” Y. Rajashekhar Reddy Mr. Wolfowitz said he was going back determined These women included representatives of India’s to talk about his AP experience in Washington most disempowered groups – widows, leprosy and other capitals, and is keen that the Bank patients, and India’s lower-most castes. But their transfer the lessons of the AP women’s SHG voices shouted confidence. One woman spoke movement to other states of India as well as to for them all when she said: “We once thought that other countries and regions.

The World Bank in India • September 2005 125 Development Dialogue On railtrack and on roads, China outstripped India in just 10 years

At the beginning of the 1990s, India’s highway and railway infrastructure was ahead of that in China. Ten years later, China had raced ahead on both. How did it do this and what are the lessons India can take away from the spurt in China’s highway and railway development between 1992 and 2002? Guang Zhe Chen, South Asia Sector Manager for Energy and Infrastructure at the World Bank, explains:

n 1992, India had 2.7 million km of roads – by 2002 it had added some 25,130 km of Iwhile China’s network was at 1.32 million access-controlled expressways with km. But there was little to choose in terms of minimum four lanes and another 27,468 km quality, for both networks were severely of four-lane dual carriageway without access deficient in terms of modern standards like control. In contrast, India had concentrated pavement management, road geometry and on opening up all-weather rural access traffic management. roads and its standard arterial highways continued to remain largely neglected. The In 1992, the two countries’ railway networks first comprehensive highway development carried the same volume of passenger km project was the effort to widen the 6,500 (pkm) – 314 vs 315 billion pkm). China Golden Quadrilateral to four lanes – without Railways (CR), however, carried more than access control – which began in 1998 and 4.5 times the freight Indian Railways (IR) did– is yet to be completed. – it ferried 1,157 billion ton km (tkm) annually as against IR’s 257 tkm. Over the next ten In railways, between 1992-2002, China years, however, China’s highway and railway added double amount of route kms India did development overtook India’s dramatically. – while India’s overall rail network grew by 682 route km, China’s grew by 13,797 route 1992-2002 – the crucial decade km. The increment in China’s annual freight traffic during that period (from 1,157 to 1,551 It took China a whole decade after it first billion tkm) alone exceeded the entire freight initiated economic reforms to realize how its traffic carried by the Indian Railways in 2002 outmoded transport infrastructure was (336 billion tkm). Qualitatively, too, the constraining economic growth. With the turn expansion differed – while India’s double- into the 1990s, it took a decision not just to track network increased in this period by alleviate the most pressing immediate 1,519 km (10 percent increase), China added bottlenecks, but to build a high-capacity, 9,400 km, increasing its double-track network modern transport system that could take by 69 percent; and while India electrified an care of future needs as well. additional 5,192 km, China doubled its In highways, China’s expansion did not lie in electrified track by adding 8,975 km. adding too many extra kilometers. In fact, its So, how did China accomplish this and does network grew by 443,000 kms during the its experience have any lessons for India? decade (taking the total to 1.77 million km) while the Indian network grew by 600,000 Huge spurt in investment: The most kms (taking the total to 3.3 million km). significant step China took was to begin pumping in resources into its transport The difference lay in the type of roads sector. Even as India’s annual spending on added. The emphasis of China’s road highways averaged US$ 1 billion to US$ 3 expansion was on building arterial networks billion between 1992-2002, China was

126 The World Bank in India • September 2005 spending 10 times that amount. Annual India might find it more beneficial to rely on highway expenditure in China rose from US$ fuel levies (like the Central Road Fund), 13 billion in 1997 to US$ 30 billion during the supplemented by direct tolling only where next few years. By 2002, it was spending the demand for the tolled road is highly 3.1 percent of its GDP of US$ 1,233 billion inelastic. A recent Bank study1 sets out the on highways. policy options before India on the issue of comprehensive road user charges. Investment in the two government-run railways during the decade 1992-2002 Public Private Partnerships: Close to 10 followed the same pattern – while Indian percent of the total funds were raised from Railways spent US$ 17.3 billion, China private-public partnerships (over 80 joint Railways spent exponentially more at US$ ventures were signed between Hong Kong 85 billion. developers and provincial or municipal authorities for instance) and by selling equity Let us examine how China handled the in toll highway companies. growth in the two sectors: However, while China raised some US$ 11 Highways billion from private investors, this amounted to less than 10 percent of the total Mix of funding options: China used a expenditure on highways. Another recent wide mix of funding options to pay for the World Bank study2 suggests that India, with huge increase in highways funding. The its better established capital markets and largest quantum of funding came from public associated legal infrastructure, is in a sources, both directly from the government position to net greater private participation budget and also through government in highway financing. In fact, the World Bank borrowings and guarantees; one-fourth of has been asked by the government of India the funds were recovered from road users to support the country’s bid to establish a Below: through a range of mechanisms including a public private partnership (PPP) program for China’s Road Maintenance Fee (US$ 10 billion in investments constructing physical infrastructure including in the road 2002), Vehicle Purchase Fee (US$ 4.5 billion arterial highways. However, this presupposes sector between in 2002) and a Highway Transport substantial increases in state funding so as 1992-2002 Management Fee (US$ 2.5 billion in 2002). to provide the public share of the finances. saw the development China also imposed tolls on its improved Prioritizing Investment: China, from the of a high roads; this, however, did not prove capacity start of its expansion program concentrated successful as people tended to avoid the modern on high-quality, access-controlled arterial transport tolled new highways and continued to highways, devoting 60 percent of its road system congest old but untolled routes. budget to these roads that remain underutilized. India, on the other hand, concentrated on feeder networks and, to date, has no access-controlled core highways. Both are choices of extremes and the lesson for India going ahead is to choose design standards on a project-by-project basis and not as sweeping policy decisions.

Maintaining International Implementation Standards: China moved swiftly to introduce international standards in its highway development, including international competitive bidding; separating construction bureaus from government roads authorities; introducing FIDIC contract structures and conditions; and enforcing quality control by placing lifetime responsibility on designers and contractors for faulty design and construction of highways.

The World Bank in India • September 2005 127 Railways ● Vertical disintegration: CR has divested its non-core activities and cut staffing by ● Physical standards: While most of half. China’s system is new and thus ● No cross-subsidies from freight to incorporates higher design standards and passenger traffic: Till the 1980s, the has high service reliability, even the older government in China controlled assets are better maintained, requiring passenger tariff and CR minimized its less downtime. The physical standards of operational losses by restricting the IR are much lower thus affecting overall volume of passenger business. But after productivity. the transition to a market economy, began ● Commercial focus: Placing a higher increasing passenger capacity but also emphasis on commercial focus, CR uses increased passenger fares. hikes passenger fares to achieve financial ● Limited privatization: Local railway joint viability, in order to foster competition, the ventures and corporotization with sale of Chinese Ministry of Railways has also shares in existing railway units. entered into management contracts with 14 regional railway administrations setting The purpose of this exercise in comparisons out clear performance indicators and is not to suggest that India replicate all of incentives. China’s policies in expanding its transportation infrastructure. There are lessons in each country’s progress that can Comparing costs & fares for IR & CR, 2002 be drawn by the other nation, and, equally, there are those that can be discarded. Indian Chinese Railway Railway (The author would like to thank Mr. Clell Harral, Passenger per km of total output (%) 59 24 Chairman of Harral, Winner, Thompson, Sharp Inc Passenger revenue of total (%) 30 41 and Mr. Jit Sondhi for their important contributions to this article) Average cost per equated unit (US cent) 0.75 0.65 (Footnotes) Average freight tariff per tkm (US cent) 1.6 0.96* 1Highway Finance in India: A Policy Note, World Average passenger fare per km (US cent) 0.55 1.25 Bank, January 2004 2Private Finance of Highways in India: An *including construction surcharge of 0.4 c All figures for 2002 Assessment, World Bank, January 2004

How the two railway companies fared

INDIA CHINA

1991-92 2001-02 Ratio 1992 2002 Ratio

Total Employees (in million) 1.65 1.51 0.91 3.41 1.76 0.51

Operational Employees (est. million) 1.42 1.3 0.91 2.04 1.39 0.68

Output per Operational Employee 402 648 1.61 728 1,385 1.90 (1,000 equated units)

Transportation Revenue (in billion) INR 137 INR 378 2.76 RMB 69.9 RMB 142.0 2.96

Operational Expenses & Pensions INR 104 INR 343 RMB 24.6 RMB 112.0 (in billion)

Depreciation INR 20 INR 20 RMB 13.5 RMB 22.3

Total Working Expenses including INR 124 INR 363 2.92 RMB 35.8 RMB 134.3 3.75 Depreciation and Pensions

Working Ratio (%) 0.76 0.94 0.35 0.62

Operating Ratio (%) 0.90 0.96 0.51 0.74

128 The World Bank in India • September 2005 Events

KNOWLEDGE SHARING PARTNERSHIP displacement of the population under any Tamil Nadu Equitable Growth Initiative single project in the country. The project 3 August 2005 • Chennai involved acquisition of nearly 80,000 ha and relocation of around 55,000 families. The The knowledge-sharing partnership between project team, headed by Mr. Jaamdar, the World Bank and the state of Tamil Nadu ensured that the resettlement was was launched by Chief Minister of Tamil accomplished with support from the local Nadu, Ms. J. Jayalalitha. Speaking on the population including those displaced by the occasion, she said, “The Tamil Nadu project. Unlike other projects in the country, Equitable Growth Initiative is a collaborative this project did not face any major legal exercise, involving the people and the issues with the displaced community either government in strengthening the policy on land acquisition or resettlement. formulation process. Civil society can articulate its core development concerns WORKSHOP and explore possible solutions to them along Energy Efficiency in Agricultural Pumping, with the Government. I am happy that the Carbon Credits and Impact on Agriculture, World Bank has also offered to share cross- Groundwater and Utilities country expertise and global best practices 22 July 2005 • New Delhi in this endeavour.” Improving the energy efficiency of pumps In her speech, the Chief Minister defined has been tested on a small-scale in Madhya ‘development’ as “the creation of new Pradesh with assistance from the Canadian choices and expanding opportunities for International Development Agency (CIDA). the people”. She went on to add, “It also implies that the choice of such a Using the instance of Madhya Pradesh as development strategy must be democratic, a case in point, the Bank conducted a by involving people in delineating brainstorming session on aspects which development challenges and setting out required coordination amongst the water economic priorities for the Government”. resources/irrigation, agriculture/horticulture, and energy departments in states and the The Bank’s Country Director for India, corresponding ministries at the Center. Michael Carter, outlined the Bank’s views of what the engagement should seek to Senior government officials from the Central achieve, some constraints which require a Government, Tamil Nadu, Madhya Pradesh, policy response and ways in which the Bank Maharashtra, Orissa, Uttar Pradesh, could help the government realize its Jharkhand, West Bengal, Rajasthan, objectives under the initiative. Haryana, Bihar, Punjab, Gujarat, as well representatives from international donor SEMINAR agencies attended the workshop. Managing Resettlement under the Upper Krishna Project • 28 July 2005 • New Delhi DISCUSSION Global Lessons on Livelihoods A talk by Dr. S. M. Jaamdar, Principal – Comparing East Asia and South Asia Secretary of Karnataka and Commissioner, 1 July 2005 • New Delhi Upper Krishna Irrigation Project, held as part of the World Bank Social Development An experience-sharing session where Bank Seminar Series. staff from Indonesia and India shared the accounts of implementation of livelihood The construction of Upper Krishna Irrigation oriented projects with government officials Project, with an ultimate irrigation potential from states and from the Center. of 575,000 ha, resulted in the largest

The World Bank in India • September 2005 129 ICR Update

eginning with this issue, the World Bank in India newsletter will carry short Bsummaries of Implementation Completion Reports (ICRs) of recently-closed World Bank projects. The full text of each of these ICRs is available on the Bank’s website. To access these documents, go to http://www.worldbank.org/reference/ and then opt for the Documents & Reports section.

Diversified Agricultural Support Project

Approval Date: 30 June 1998 Closing Date: 31 March 2004 Project Cost: US$M 158.79 Bank Financing: US$M 128.15 Implementing Agency: Governments of Uttar Pradesh and Uttaranchal Right: Outcome: Satisfactory The Project Sustainability: Likely helped scores of farmers Institutional diversify to Development Impact: Substantial Assessment: high value Bank Performance: Satisfactory The Diversified Agricultural Support Project crops like (DASP) aimed at getting the technology Borrower Performance: Satisfactory oilseeds and development and dissemination apparatus vegetables to take a comprehensive farming system approach rather than concentrate on any Project Development Objective: particular aspect of the farming cycle. It To increase agricultural productivity through achieved this by promoting applied research support for Uttar Pradesh’s (and Uttaranchal Below: tailored to the user- and location specific One of the after UP was bifurcated) diversified needs of farmers and their farmlands. most agricultural production systems, promote successful private sector development, and improve With an eye to helping government line components of the Project rural infrastructure. departments (of agriculture, animal husbandry was the etc who are traditionally responsible for Scale: formation of technology dissemination) adopt a demand- small self-help Some 7,400 villages in 37 districts of both driven approach, the Project helped forge a thrift groups UP and Uttaranchal. network of farmer groups. It motivated these farmers to first experiment with low-cost technologies and techniques (both new as well as indigenous) and then propagate them among their fellow farmers. This approach has led to an improvement in productivity in Project areas.

For instance, there has been an over 10 percent increase in crop productivity and a 25 percent increase in milk productivity. Cropping intensity has grown from 169 percent at baseline to 203 percent at completion and there has been a significant diversification from cereal crops to vegetables and other higher-value crops.

1210 The World Bank in India • September 2005 Nearly 20,000 self-help groups (SHGs) were Rural infrastructure in Project areas has formed under the Project, of which nearly been significantly improved by connecting 7,400 were women’s groups. Functioning also over 1,100 villages with improved roads, as as savings societies, these groups have given well by upgrading 114 rural markets. Impact out loans to their members of approximately assessment studies suggest that these have Rs 192 million (US$4.2 million) and have had a significant economic impact on the accessed credit worth Rs 212 million (US$4.6 productivity of these areas. million) from linking with commercial banks. The fact that several farmers from adjacent The Project also helped substantially non-Project areas began adopting, under increase private sector participation in the their own steam, many of DASP’s agronomic whole technology dissemination set up. practices and techniques suggests that This was catalyzed by some policy changes, it is an affordable and replicable model. including introducing paravet services (over One of the few lacunae seen during the 1,300 paravets have been trained and are implementation of DASP was the lack of operational), cost-recovery for input supplies, adequate farm-market linkages it forged. on-farm seed multiplication, and the The follow-on Project, which is currently establishment of 1,095 private vegetable being prepared, seeks to address these and fruit nurseries. gaps.

Assam Rural Infrastructure and Agricultural Services Project

Approval Date: 25 May 1995 Closing Date: 30 June 2004 Right: Project Cost: US$M 127.05 The Project helped farmers Bank Financing: US$M 109.25 instal shallow Implementing Agency: ARIASP Society, tubewells to Government of tap Assam’s Assam immense Outcome: Satisfactory irrigation potential Sustainability: Likely Institutional Development Impact: Substantial Bank Performance: Satisfactory Scale: Borrower Performance: Satisfactory The Project was active in 22 districts of Assam.

Project Development Objective: Assessment: (i) improve equity and alleviate poverty For years, villages in the Brahmaputra Valley by offering better opportunities for poorer of Assam were caught in an inopportune farmers and women to contribute to farming cycle. Each year, the mighty river agricultural growth and income generation; flooded the low-lying plains for months, leaving (ii) improve nutrition of the rural poor; the soil too sodden to farm. By the time the (iii) accelerate agricultural growth through land dried out, the sowing season would be improved use of resources, relieving far advanced. The dry season brought its own infrastructural and technical constraints, attendant problems for the farmers, because and providing an enabling environment Assam, despite abundant surface and to facilitate the growth of private sector groundwater resources, had very little assured investments; irrigation. The Project sought to make farming (iv) encourage sustainability of resource use a little less of a gamble for the farmers of and quality of the environment; and Assam. It helped villagers set up a string of (v) improving Assam’s long term capacity for irrigation facilities, ranging from tubewells to lift- a strategic agricultural planning. irrigation schemes and river pumping schemes.

The World Bank in India • September 2005 1112 Given Assam’s wealth of water bodies, the Project sought to help resuscitate Right: Assured small-scale fisheries in the state. It trained irrigation in small and marginal farmers to go in for fish the dry season production in their ponds and community has helped tanks as a means of raising incomes. A total farmers diversify to of 602 ha in farm ponds and 822 ha in vegetable community tanks were turned into effective crops that fisheries; about 12,000 farm families earn them benefited. higher returns The Project also piloted the development Perhaps the Project’s most significant of beels or ox-bow lakes through a impact on raising agricultural production partnership between local communities and and household incomes came through an NGOs. This has proved effective in targeting impressive expansion in Shallow Tube Well poorer communities and in ensuring that (STW) irrigation. Some 70,450 STWs have poor people get an equitable share of been installed, bringing 154,990 ha of land increased income. Beel coverage touched under irrigation and increasing cropping 2,139 ha and open water fishery touched intensity in the STW areas from 150 percent 164 ha under the Project. to between 195 percent and 213 percent. The consequent increase in productivity In addition, the Project has had a positive helped Assam become self-sufficient in impact on raising rural incomes by improving paddy for the first time in two decades. access to markets through rural road The success of the STWs prompted the improvements. Some 723 km rural roads government of Assam to seek financing from with 209 bridges were constructed, and the National Bank for Agricultural and Rural approximately 2,013 km of rural roads were Development for an additional 99,000 STWs. rehabilitated.

The assured irrigation also helped farmers, Some policy reforms that the Project helped hitherto dependent on paddy, diversify to steer include vegetable and oilseed crops that fetched (i) Formulation of State Agricultural Policy them higher incomes. The Project also (ii) Formation of Road Board and adoption helped farmers with livestock management, of Road Maintenance Policy with special emphasis on increasing milk (iii) Privatization of some seed farms and production through artificial insemination progeny orchards and breeding of better quality livestock. (iv) Formulation of Fish Seed Act The increase in annual milk production from (v) Beel (ox-bow lakes formed due to Project activities has been estimated at 57 shifting of river course) lease reforms million liters. (benefiting poor community groups) etc.

Delhi Water Supply and Sewerage Project

he World Bank has been approached by the Government of India and the TGovernment of the National Capital Territory of Delhi (GoNCTD) to support a program that would improve the reliability, sustainability and affordability of the water supply and sewerage service provided in Delhi by the Delhi Jal Board (DJB). This is planned to be achieved by gradually implementing a reform that would improve the management of the service, extend the infrastructure to underserved parts of the city, and financially strengthen the water utility through recovery of the efficient cost of operations. The GoNCTD and DJB have initiated a comprehensive consultation on the proposed program with all categories of stakeholders. Some of them have requested clarifications on the role and position of the Bank in this process. For details of the Bank’s position visit the World Bank in India website: http://www.worldbank.org.in

12 The World Bank in India • September 2005 New Additions to the Public Information Center

his is a select listing of recent World Bank publications, working papers, operational Tdocuments 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 Publications Publications may be consulted and copies of unpriced items obtained from: Report on Observance of Standards and Codes The World Bank PIC (ROSC) - Accounting and Auditing 70 Lodi Estate New Delhi -110 003 Report No. 32510 Tel: 011-2461 7241 An assessment of Fax: 011-2461 9393 accounting and auditing Internet: www-wds.worldbank.org practices in India, this Email: [email protected] report finds that in order to improve the quality of To order priced publications corporate financial Allied Publishers Ltd. reporting in India, there 751 Mount Road is a need to improve the Chennai - 600 002 institutional framework, and Tel: 044-852 3938 to enhance compliance Fax: 044-852 0649 with the applicable Email: [email protected] standards and rules. It provides some policy recommendations to strengthen Bookwell the monitoring and enforcement arrangements, Head Office including setting up an independent body for 2/72 Nirankari Colony overseeing the auditing profession from a public Delhi - 110 009 interest perspective. Tel: 011-2725 1283 Sales Office: India Policy Research Working Paper 24/4800 Ansari Road Darya Ganj New Delhi - 110 002 WPS3675 Tel: 011-2326 8786, 2325 7264 Business environment, clustering, and industry Fax: 011-2328 1315 location : evidence from Indian cities Email: [email protected] By Somik V. Lall and Taye Mengistae

Anand Associates How do differences in the local business environment 1219 Stock Exchange Tower influence location of industry within countries? 12th Floor Dalal Street The authors examine this question by analyzing Mumbai - 400 023 location decisions of individual firms. Using data from Tel: 022-2272 3065/66 a recently-completed survey of manufacturing firms Fax: 022-2272 3067 in India, they find that both the local business Email: [email protected] environment and agglomeration economies Internet: www.myown.org significantly influence business location choices across cities. In particular, excessive regulation of labor and Team Spirit (India) Pvt. Ltd. of other industrial activities reduces the likelihood of a B - 1 Hirak Centre business locating in a particular city. The authors’ Sardar Patel Chowk Nehru Park, Vastrapur findings imply that in order to attract industrial activity, Ahmedabad - 380 015 smaller or remoter cities need to offer even more attractive policy concessions or reforms to offset the Tel: 079-676 4489 effects of their relatively adverse economic geography. Email: [email protected]

The World Bank in India • September 2005 13 WPS3665 gap between what doctors do and what they know responds to incentives: doctors in the fee-for-service Credit constraints as a barrier to technology private sector are closer in practice to their knowledge adoption by the poor: Lessons from South Indian frontier than those in the fixed-salary public sector. small-scale fishery Under-qualified private sector doctors, even though By Xavier Gine and Stefan Klonner they know less, provide better care on average than It is generally recognized that the adoption of a their better-qualified counterparts in the public sector. new technology plays a fundamental role in the These results indicate that to improve medical services, development process. However, the benefits from the at least for poor people, there should be greater introduction of the technology may be unevenly emphasis on changing the incentives of public distributed among the population, especially if the providers rather than increasing provider competence markets do not function properly. While the through training. microeconomic literature on technology adopted and diffusion focuses on ‘who’ and ‘when’ the macroeconomic literature has focused on the overall WPS3664 impact of globalization on inequality. In this paper, the The impact of business environment and economic authors bring these two strands of the literature geography on plant-level productivity: An analysis together by studying the diffusion of plastic reinforced of Indian industry fiber boats in a fishing village in Tamil Nadu and by By Somik V. Lall and Taye Mengistae analyzing the dynamics of income inequality during this process. The authors’ analysis of manufacturing plants sampled from India’s major industrial centers shows large productivity gaps across cities. The gaps partly reflect WPS3654 differences in agglomeration economies and in market access. However, they are also explained to a greater Crop insurance in Karnataka extent by differences in the degree of labor regulation By Vijay Kalavakonda and Olivier Mahul and in the severity of power shortages. This is an The authors examine the performance of the crop indication that governments can help narrow regional insurance scheme in Karnataka, the second driest disparities in industrial growth by fostering the ‘right state in the country. Their analysis highlights business environment’ in locations where industry weaknesses in product design, implementation might otherwise be held back by powerful forces of challenges and several operational problems. The economic geography. There is indeed a pattern in the authors’ finding is that the crop insurance scheme in data whereby geographically disadvantaged cities its current form does not achieve its objectives, either seem to compensate partially for their natural explicit (risk management) or implicit (safety net and disadvantage by having a better business environment containment of both the central and state than more geographically advantaged locations. governments’ contingent liability). The crop insurance scheme performs poorly both in terms of coverage (number of hectares insured and number of farmers Other Publications purchasing insurance) and financial performance. Public Services Delivery The authors provide a framework for designing a crop Edited by Anwar Shah insurance scheme based on the premise that insurance is a cost-effective risk management technique. They Price: $ 35.00 also provide some ideas about improving the existing English Paperback crop insurance scheme and exploring alternatives to Published June 2005 the current product, based on an area-yield approach. ISBN: 0-8213-6140-6 SKU: 16140

Despite the growing WPS3669 awareness of citizens about Money for nothing: The dire straits of medical their rights for greater practice in Delhi, India accountability from the By Jishnu Das and Jeffrey Hammer public sector, the power of accountability is The quality of medical care received by patients varies significantly reduced if for two reasons: differences in doctors’ competence or citizens are unable to measure their government’s differences in doctors’ incentives. Using medical performance in a meaningful way. This book argues vignettes, the authors evaluated competence for a that the abstract concept of’‘government performance’ sample of doctors in Delhi. One month later, they can only be an effective tool when there are concrete observed the same doctors in their practice. The statistics and benchmarks measuring performance. authors find three patterns in the data. First, what Public Services Delivery offers a comprehensive view doctors do is less than what they know they should do of government performance measurement. The first – doctors operate well inside their knowledge frontier. part examines systems or frameworks for measuring Second, competence and effort are complementary so the performance of government at the national level that doctors who know more also do more. Third, the

14 The World Bank in India • September 2005 and at local levels of government. The second part of the emergence of drug-resistant forms of malaria. the book focuses on particular sectors that form the This new plan of the Roll Back Malaria Partnership core of essential government services: health, combines measures to increase coverage of malaria- education, welfare, waste disposal, and infrastructure. specific interventions with effective service delivery, broader health-system development, and capacity building across multiple sectors. African Development Indicators 2005: From the World Bank Africa Database Shaping the Future of Water for Agriculture: A By World Bank Sourcebook for Investment in Agricultural Water Price: $ 50.00 Management English Published July 2005 By World Bank ISBN: 0-8213-6078-7 SKU: 16078 Price: $ 40.00 English Paperback African Development Indicators 2005 provides the Published June 2005 most detailed collection of data on Africa available ISBN: 0-8213-6161-9 in one volume. It contains more than 500 SKU: 16161 macroeconomic, sectoral, and social indicators, covering over 50 African countries with data from Agricultural water 1965-2003. management is a vital practice in ensuring reduction, and Doing Business in 2006: Creating Jobs environmental protection. By World Bank The World Bank, in conjunction with several partner agencies, has compiled a selection of good Price: $ 35.00 experiences that can guide practitioners in the design English of quality investments in agricultural water. The Published August 2005 by World Bank messages of Shaping the Future of Water for ISBN: 0-8213-5749-2 SKU: 15749 Agriculture: A Sourcebook for Investment in Doing Business in 2006 is the third in a series of annual Agricultural Water Management center around the key reports investigating regulations that enhance business challenges to agricultural water management, activity and those that constrain it. This edition specifically: provides analysis on those regulations that help create ● Building policies and incentives jobs and those that deter it. New quantitative indicators on business regulations and their enforcement can be ● Designing institutional reforms compared across 150 countries – from Albania to ● Investing in irrigation systems improvement Zimbabwe – and over time. and modernization

Doing Business in 2006 updates the indicators ● Investing in groundwater irrigation presented in previous reports: on starting a business, ● Investing in drainage and water quality hiring and firing workers, getting licenses, getting management credit, protecting investors, enforcing contracts, and closing a business. Two news sets of measures are ● Investing in water management in rainfed agriculture added, on paying taxes and trading across borders. ● Investing in agricultural water management in multipurpose operations

● Coping with extreme climatic conditions Rolling Back Malaria: The World Bank Global Strategy & Booster Program ● Assessing the social, economic, and environmental impacts of agricultural water investments By World Bank Price: $ 15.00 English Paperback Getting to Know the World Bank: A Guide for Published June 2005 by Young People World Bank ISBN: 0-8213-6199-6 By World Bank SKU: 16199 Price: $ 10.00 English Paperback In 1998 the Bank Published June 2005 cofounded, with WHO, ISBN: 0-8213-5914-2 UNICEF, and UNDP, the SKU: 15914 global Roll Back Malaria Partnership to coordinate the global fight against malaria, which affects millions in This guide provides an the developing world. There has been some success, overview of the Bank’s but the scale was less than expected. The world now history, organization, faces additional challenges, not the least of which is mission, and purpose.

The World Bank in India • September 2005 15 Central America Education Strategy: An Agenda regional country groups. It also contains Country at-a- for Action Glance tables for all African countries.

By World Bank Price: $ 15.00 Country Assistance Evaluation Retrospective: English Paperback OED Self-Evaluation Published June 2005 ISBN: 0-8213-6258-5 Price: $ 15.00 SKU: 16258 English Paperback 80 pages 8.5 x 11 The main objective of this Published June 2005 regional report is to provide ISBN: 0-8213-6316-6 an in-depth diagnosis SKU: 16316 of where Central American countries stand along This report is a self- several education evaluation of the dimensions, underscoring the most urgent and serious Operations Evaluation challenges, and suggesting policy options to address Department’s (OED) them. This is the first attempt at providing a Country Assistance comprehensive quantification of educational outcomes Evaluations (CAEs) that examine World Bank in four comparable Central American countries: El performance in a particular country, usually over the Salvador, Honduras, Guatemala, and Nicaragua. The past four to five years. report identifies three urgent priorities for improving Central American education systems: improving learning, reaching universal primary completion, and Turkey: Economic Reform and Accession to the expanding secondary coverage. European Union

Edited by Bernard M. Hoekman and Subidey Expanding Opportunities and Building Togan Competencies for Young People: A New Agenda Price: $ 35.00 for Secondary Education English Paperback Price: $ 30.00 Published June 2005 English Paperback ISBN: 0-8213-5932-0 Published June 2005 SKU: 15932 ISBN: 0-8213-6170-8 What requirements must SKU: 16170 Turkey – the largest country This book focuses on among the candidate and the impact of education accession countries – meet reforms that alter teacher to join the European Union? What progress has been incentives on teaching made toward meeting them? This volume analyzes the quality and student economic challenges confronting Turkey in its quest to learning. The reforms accede to the European Union (EU). It focuses on the explored in this volume extent to which Turkey is ready to join the Single represent efforts by several Market, comply with the EU’s body of economic countries in the region to increase teacher regulations and directives, the Acquis Communautaire, accountability and introduce incentives to motivate and meet the Maastricht criteria for fiscal, monetary, teachers to raise student learning. and exchange rate policies.

World Bank Africa Database 2005: Single-user China’s Ownership Transformation: Process, CD-ROM Outcomes, Prospects

By World Bank Price: $ 25.00 Price: $ 100.00 English Paperback English Published June 2005 Published June 2005 ISBN: 0-8213-6237-2 ISBN: 0-8213-6080-9 SKU: 16237 SKU: 16080 Over the past decade, The World Bank Africa the Chinese economy has Database CD-ROM offers a made the transition from comprehensive database with year-by-year time series complete reliance on state- of most indicators going back to 1970. It contains over owned and collective 1,200 indicators of macro-economic, sectoral, and enterprise to a mixed social data for over 50 African countries and 20 economy where private

16 The World Bank in India • September 2005 enterprise also plays a strong role. Gaizhi, a Chinese How Much is an Ecosystem Worth?: Assessing the term meaning ‘transforming the system’, has become Economic Value of Conservation a major phenomenon in most parts of the country; in Price: $ 10.00 many cases it has involved full privatization. China’s English Paperback Ownership Transformation applies descriptive and Published June 2005 econometric analysis to survey, and official statistical ISBN: 0-8213-6378-6 data to examine, the progress of gaizhi over the years SKU: 16378 and across regions. The international community has committed Analyzing the Distributional Impact of Reforms: A itself to achieve, by 2010, a Practitioner’s Guide to Trade, Monetary and significant reduction of the Exchange Rate Policy, Utility Provision, Agricultural current rate of biodiversity Markets, Land Policy, and Education – Volume One loss at the global, regional, and national levels. A range of methods have been Edited by Aline Coudouel developed to value ecosystems, and the services they and Stefano Paternostro provide, as well as the costs of conservation. The Price: $ 40.00 methods available are increasingly sensitive, and English Paperback robust, but they are often incorrectly used. As a result, Published June 2005 decision makers may get misleading guidance on the ISBN: 0-8213-6181-3 value of ecosystems, and their conservation. SKU: 16181 In this context, the Bank, IUCN-The World The analysis of the Conservation Union, and the Nature Conservancy have distributional impact of worked together to clarify the aims and uses of policy reforms on the well- economic valuation, focusing on the types of questions being or welfare of different that valuation can answer, and the type of valuation stakeholder groups, that is best suited to each purpose. How Much is an particularly on the poor and vulnerable, has an Ecosystem Worth? is the result of that cooperation. important role in the elaboration and implementation of poverty reduction strategies in developing countries. While information is available on the general approach, Global Development Finance 2005 techniques and tools for distributional analysis, each (Single User CD-ROM): Mobilizing Finance sector displays a series of specific characteristics. and Managing Vulnerability Each chapter of this volume provides an overview of the specific issues arising in the analysis of the By World Bank distributional impacts of policy and institutional reforms Price: $ 400.00 in selected sectors. English CD-ROM Published June 2005 ISBN: 0-8213-5986-X The Urban Poor in Latin America SKU: 15986

Edited by Marianne Fay Global Development Price: $ 25.00 Finance 2005 (Single User English Paperback CD-ROM), provides you with historical time series data Published June 2005 from 1970 to 2003, and country group estimates for ISBN: 0-8213-6069-8 2004. Data is available for 136 countries that report SKU: 16069 under the World Bank Debtor Reporting System, as well as summary data for regions and income groups. The urbanization of Latin It contains data on total external debt stocks and America has also lead to flows, aggregates, and key debt ratios, and provides the urbanization of its poor. a detailed, country-by-country picture of debt. Today about half of the region’s poor live in cities. Urban Poor in Latin Finding Global Balance: Common Ground between America looks at strategies the Worlds of Development and Faith to assist the urban poor in making the most of the opportunities offered by cities (deeper labor markets, Edited by Katherine Marshall and Lucy Keough better amenities and services, greater freedom, and Price: $ 25.00 possibly less discrimination) while helping them cope English Paperback with the negative externalities (high cost of housing Published June 2005 and difficulty of obtaining shelter; risks to physical ISBN: 0-8213-6247-X SKU: 16247 safety associated with pollution and environmental This book relates the latest chapter in the story of a contamination, but also crime and violence; other remarkable partnership between the worlds of faith congestion costs, more isolation and possibly less and development, launched in 1998 by then Bank social capital).

The World Bank in India • September 2005 17 President, Jim Wolfensohn Counting on Communication: The Uganda Nutrition and then Archbishop of and Early Childhood Development Project Canterbury, George Carey, By Cecilia Cabañero- when they convened a Verzosa meeting of faith and Price: $ 10.00 development leaders in English Paperback Lambeth Palace. The Published July 2005 intervening years have ISBN: 0-8213-6268-2 seen the growth of a SKU: 16268 network of world faith and development leaders who The Uganda Nutrition and share a common passion Early Childhood to eradicate global poverty, extend social justice and Development Project was ensure global security for all of the world’s people. one of the World Bank’s Periodically this group of leaders gathers together to first projects to debate issues of common concern and global demonstrate the value-add of strategic significance. The most recent meeting took place in communication. The communication strategy was Dublin, Ireland in Janaury 2005. This book tells the developed in a highly participatory manner and story of this partnership, within the context of the included two-way communication activities developed Dublin meeting. to address the practices and behaviors that would need to be changed in order for the project to be successful, rather than merely disseminating messages Judicial Systems in Transition Economies: based on assumptions of project benefits. Assessing the Past, Looking to the Future This publication is the first in a series of Working By James Anderson, Papers sponsored by the Development Communication David Bernstein and Division (DevComm) of the World Bank. This series is Cheryl Gray designed to share innovations and lessons learned in Price: $ 20.00 the application of strategic communication in English Paperback development projects. Published June 2005 ISBN: 0-8213-6189-9 SKU: 16189 Institutions, Performance, and the Financing of Infrastructure Services in the Caribbean This book looks at the experience of countries in Edited by Abhas Kumar Jha Central and Eastern Europe and the Baltics (CEE) and Price: $ 30.00 the Commonwealth of Independent States (CIS) as English Paperback they reform their legal and judicial institutions to fit the Published July 2005 needs of a market economy. The study shows, rather ISBN: 0-8213-6280-1 disturbingly, that less progress has been made in SKU: 16280 judicial reform than in most other areas of institutional This book reviews the reform in these countries. access to services, investment needs, tariffs, and efficiency of 15 Health System Innovations in Central America: Caribbean countries across Lessons and Impact of New Approaches five infrastructure sectors Edited by (telecommunications, electricity, water and sanitation, Gerard M. La Forgia maritime transport and ports, and airports and air services). Price: $ 30.00 English Paperback Published July 2005 The Regulation of Investment in Utilities: Concepts ISBN: 0-8213-6278-X and Applications SKU: 16278 By Clive Harris and Ian Alexander During the 1990s, Central Price: $ 22.00 American countries faced English Paperback pressures to improve their Published July 2005 health systems. This book ISBN: 0-8213-6152-X SKU: 16152 reports on innovative experiences in various countries – a hospital in Panama, a nutrition program in Honduras, Regulatory institutions and the regimes that they primary care extension in Guatemala, a subset of hospitals establish have a significant impact on the environment and primary care units in Costa Rica and a social security- for new investment in utility and infrastructure managed health care program in Nicaragua. industries. especially investment from the private

18 The World Bank in India • September 2005 sector. This book examines techniques developed by Against this background, the authors applied the error regulators over the past decade to deal with how correction methodology based on the concept of investment issues have been factored into regulatory cointegration. They find that U.S. dollar swap spreads price controls. and the supply of U.S. Treasury bonds are cointegrated, suggesting that the Treasury supply is a key determinant on a long-term horizon. They then Intergovernmental Fiscal Relations in Central and estimate an error correction model which integrates Eastern Europe: A Sourcebook and Reference this long-term relationship with the influence of four Guide shorter-term determinants: the AA spread, the repo rate, the difference between on-the-run and off-the-run By Francis J. Conway, yields, and the duration of mortgage backed securities. Brien E. Desilets, The error correction model fits observed swap spreads Peter B. Epstein, Juliana H. quite well over the sample period. The authors then Pigey, Graeme Frelick illustrate how the same model can be used to carry out and Fred Rosensweig scenario analysis. Price: $ 20.00 English Published July 2005 Ukraine’s Trade Policy: A Strategy for Integration ISBN: 0-8213-5705-0 into Global Trade SKU: 15705 By World Bank Produced by the Urban Institute for the United States Price: $ 30.00 Agency for International Development and the World English Paperback Bank Institute, the sourcebook gives access to and Published July 2005 information on intergovernmental finance issues in ISBN: 0-8213-6286-0 Central and Eastern Europe by providing electronic SKU: 16286 links to a large number of documents included on a Ukraine’s Trade Policy CD-ROM. Countries covered: Albania, Bulgaria, Czech identifies the key drivers of Republic, Hungary, Latvia, Macedonia, Poland, and Ukraine’s recent trade Romania. performance, assesses current trade policies, and proposes recommendations What Determines U.S. Swap Spreads? to strengthen the Ukraine’s trade integration strategy. By Adam Kobor, It also identifies core bottlenecks in the ongoing Lishan Shi and Ivan integration processes, including global and regional Zelenko integration. Price: $ 10.00 English Paperback Published July 2005 Reversing the Tide: Priorities for HIV/AIDS ISBN: 0-8213-6338-7 Prevention in Central Asia SKU: 16338 By Joana Godinho, This title examines the Adrian Renton, Viatcheslav evolution of the U.S. Vinogradov, Thomas interest swap market. Novotny and Mary-Jane It reviews the theory and Rivers past empirical studies on U.S. swap spreads and Price: $ 25.00 estimates an error correction model for maturities of 2-, English Paperback 5- and 10-year over the period 1994–2004. Financial Published June 2005 theory depicts swaps as contracts indexed on LIBOR ISBN: 0-8213-6230-5 rates, rendered almost free of counterparty default risk SKU: 16230 by mark-to-market and collateralization. Swap spreads reflect the LIBOR credit quality (credit component) and Although the number of a liquidity convenience premium present in Treasury reported cases of HIV in rates (liquidity component). Multifactor models which Central Asia is still very low, the growth rate of the were estimated on observed swap rates highlighted the epidemic (from about 500 cases in 2000 to over 12,000 central role played by the liquidity component in in 2004) is a cause for serious concern. Central Asia explaining swap spread dynamics over the past fifteen lies along the drug routes from Afghanistan to Russia years. They also found, however, some puzzling and Western Europe, and it is estimated that it has empirical results. Statistical models, on the other hand, half a million drug users, of which more than half inject mainly based on market analysis, faced technical drugs. Without concerted action, we may expect to difficulties, arising from the presence of regime changes, see the rapid development of an HIV epidemic the non-stationarity in swap spreads, and the co- concentrated among injecting drug users over the next existence of long-term and shorter-term determinants. four or five years, followed by the spread among the

The World Bank in India • September 2005 19 15- to 30-year-old population, with sexual transmission infrastructure are essential framework conditions, as the predominant mode. This would follow the but generally do not play a direct role in bringing about pattern of the epidemic in other regional countries such changes in the momentum of economic growth. as Russia, Ukraine, and Moldova.

Despite growing regional commitment and resources 2004 Annual Review of Development Effectiveness: to prevent and control the epidemic, there are, The World Bank’s Contributions to Poverty however, a number of issues that are not being Reduction adequately addressed. This study identifies critical gaps, and makes recommendations for further action By Christopher D. Gerrard that will ensure effective early prevention of HIV/AIDS Price: $ 22.00 in Central Asia. English Paperback Published July 2005 ISBN: 0-8213-6303-4 Stopping Tuberculosis in Central Asia: Priorities SKU: 16303 for Action The 2004 Annual Review of By Joana Godinho, Development Effectiveness Jaap Veen, James Cercone, looks at the recent growth Jose Pacheco and Masoud and poverty reduction Dara experience of client Price: $ 30.00 countries. It assesses the extent to which Bank English Paperback interventions have contributed to growth and poverty Published July 2005 reduction and the effectiveness of different types of ISBN: 0-8213-6276-3 interventions. The review uses the key elements of the SKU: 16276 Bank’s 2001 poverty reduction strategy to examine the extent to which these elements respond to the needs Stopping Tuberculosis in of the poor. Central Asia reviews the epidemiological situation, control efforts, and financing of tuberculosis programs miniatlas of Millennium Development Goals: in Kazakhstan, Kyrgyz Republic, Tajikistan, and Building a Better World Uzbekistan. This study has confirmed that it is highly unlikely that these Central Asian republics will succeed By World Bank in achieving the global targets for tuberculosis control Price: $ 7.00 in the short term, particularly with regard to case English Paperback detection. In the meantime, the epidemic continues to Published July 2005 have a serious epidemiological impact and affects the ISBN: 0-8213-6175-9 SKU: 16175 economies of these countries, which incur productivity The Millennium Development Goals – signed by 189 losses and indirect costs that are estimated to range countries in 2000 – set clear targets for reducing from 0.5 to 0.8 percent of GDP annually. poverty and other sources of human deprivation and for promoting sustainable development. But how far are we towards meeting these goals? The third volume Beyond Reforms: Structural Dynamics and in the miniatlas series is an at-a-glance guide to the Macroeconomic Vulnerability world’s most pressing problems and challenges. Edited by Jose Antonio Illustrated in a clear and accessible format, the Ocampo miniatlas presents colorful world maps and engaging Price: $ 30.00 graphics that provide a wealth of information for over English Paperback 200 countries and territories on today’s key global Published July 2005 issues, from eradicating poverty and reducing child ISBN: 0-8213-5819-7 mortality to eliminating HIV/AIDS and promoting SKU: 15819 environmental sustainability.

Beyond Reform argues that economic growth in Compulsory Licensing for Public Health: A Guide developing countries is and Model Documents for Implementation of the intrinsically tied to the Doha Declaration Paragraph 6 Decision dynamics of production structures, to the specific By Frederick M. Abbott and Rudolf V. Van Puymbroeck policies and institutions created to support it, and the Price: $ 10.00 creation of linkages among domestic firms and sectors. English Paperback Avoiding macroeconomic instability is also essential; Published July 2005 however, macroeconomic stability is not a sufficient ISBN: 0-8213-6292-5 SKU: 16292 condition for growth. The broader institutional context This work addresses the complexity of the WTO’s and the adequate provision of education and August 30, 2003 decision on the implementation of

20 The World Bank in India • September 2005 paragraph 6 of the Doha Declaration on the TRIPS Public Expenditure Analysis Agreement and Public Health. It provides an Edited by Anwar Shah explanation of the decision and model legal texts for Price: $ 35.00 the required notifications to the WTO and for the English Paperback amendments of their patent law that most developing Published June 2005 countries will need to pass in order to incorporate the ISBN: 0-8213-6144-9 SKU: 16144 decision in their domestic legal framework. Public Expenditure Analysis for Citizen-Centered Governance explores two themes: the orientation of Education in Ethiopia: Strengthening the government towards its more vulnerable groups and Foundation for Sustainable Progress the extent to which government is responsive to its citizens. The first part of the book provides tools, By World Bank methodologies, and examples of how to examine the Price: $ 30.00 impact of government expenditures, taxes, pension English Paperback systems and other policies on women, the poor, and Published July 2005 the elderly. The second part looks at the different ways ISBN: 0-8213-6226-7 SKU: 16226 that the government listens to citizens’ voices and With the end of civil war in 1991, Ethiopia’s government proposes a new institutional framework for launched a New Education and Training Policy in 1994 governments that wish to implement reforms that which, by the early 2000s, had already produced increase responsiveness: citizen-centered government remarkable results. The gross enrollment ratio rose and citizen-centered budgeting. from 20 to 62 percent in primary education between 1993-94 and 2001-02; and in secondary and higher education it climbed, respectively, from 8 to 12 percent Preventing HIV/AIDS in the Middle East and and from 0.5 to 1.7 percent. Yet the government can North Africa: A Window of Opportunity to Act hardly afford to rest on its laurels. Primary education is by Francisca Ayodeji Akala and Carol Jenkins still not universal, and already there are concerns about Price: $ 10.00 plummeting educational quality and the growing English 108 pages pressures to expand post-primary education. Published August 2005 Addressing these challenges will require more ISBN: 0-8213-6264-X SKU: 16264 resources, both public and private. Yet money alone The HIV/AIDS epidemic has the potential to impede is insufficient. Focusing on primary and secondary and even reverse development if not addressed early education, Education in Ethiopia argues for wise enough. Poverty and income inequality have been tradeoffs in the use of resources – a result that will shown to facilitate the diffusion of HIV epidemics. often require reforming the arrangements for service While abject poverty in the Middle East and North delivery. These changes, in turn, need to be fostered by Africa region remains low, a significant proportion of giving lower levels of government more leeway to the population (23.2 percent) live under $2 per day and adapt central standards – such as those for teacher are extremely vulnerable in their ability to cope with recruitment and school construction – to local shocks. conditions, including local resource constraints; and by strengthening accountability for results at all levels In order to preserve the benefits of national and of administration in the education system. regional development investments put in place by governments, and donor agencies, greater investments to improve HIV/AIDS advocacy, information and Higher Education in Latin America: The prevention strategies are needed now to maintain the International Dimension current low prevalence levels. This title outlines the role of the Bank in confronting the HIV/AIDS epidemic in Edited by Hans de Wit, Isabel Cristina Jaramillo, the region based on a review of needs and gaps at the Jane Knight and Jocelyne Gacel-Ávila regional and country level. Price: $ 40.00 English Paperback Published August 2005 The latest issue of Development OUTREACH ISBN: 0-8213-6209-7 SKU: 16209 magazine, features a special report on Disability The globalization of our economies and societies and Inclusive has an impact on our higher education sector, even Development. Here is the as higher education influences this process of link where you can view it: globalization. Higher Education in Latin America: The http:// International Dimension provides a comparative www1.worldbank.org/ analysis of internationalization issues, trends and devoutreach opportunities in higher education in selected Latin American countries at the institutional, national and This issue of the magazine regional level. These countries include Argentina, is meant to leverage the Brazil, Chile, Colombia, Cuba, Mexico and Peru. momentum created by the

The World Bank in India • September 2005 21 Disability and Inclusive Development Conference, Rural Telecommunications Development Project which took place at the World Bank office in Date 18 July 2005 Washington last December. The guest editor, Jean- Project ID P093925 Louis Sarbib, Senior Vice President, HDN notes that Report No. AC1613 (Integrated Safeguards Data “The fight against poverty will not succeed without Sheet) focused efforts to address the needs of people with disabilities.” He further says of this special issue,”“Each article contributes to a fuller Bihar Rural Livelihoods Development Project understanding of each other article, and each can be Date 11 July 2005 fully appreciated only in the context of the entire body Project ID P090764 of work on the subject.” Report No. AB1355 (Project Information Document) The special report was designed to bring together AC1683 (Integrated Safeguards Data experiences and policies from practitioners in the field. Sheet) Therefore, the authors are disability specialists who write on the overall disability movement, how their own organizations are addressing disability issues, and how Second National Leprosy Elimination Project they view the ongoing work of the Bank. The articles Date 23 June 2005 cover topics such as access through technology, Project ID P067543 independent living, enabling disabled children, Report No. 32044 (Implementation Completion empowering women with disabilities, improving Report services for the disabled, inclusive education, disability and HIV/AIDS, broadcasting on disability, and inclusive development in post-conflict societies. Second Tamil Nadu Urban Development Project Date 31 May 2005 India Project Documents Project ID P050637 Report No. 32456 (Implementation Completion Report) Fal-G (Fly Ash-Lime-Gypsum) Bricks Project

Date 5 Aug 2005 Reproductive and Child Health Project Project ID P090163 Report No. 33349 (Program Information Document) Date 27 May 2005 Project ID P010531 33350 (Integrated Safeguards Data Report No. 30479 (Implementation Completion Sheet) Report)

Second National Tuberculosis Control Project Latest on the Website Date 27 July 2005 Project ID P078539 Rapid Response proudly presents the World Bank Report No. 33158 (Program Information Document) Group’s first venture into the blogosphere, Private Sector Development Blog: A market approach to development thinking. The new PSD Blog is available West Bengal Health Systems Project online at: http://psdblog.worldbank.org/. Date 25 July 2005 PSD Blog Project ID P085291 alerts you to Report No. AC1646 (Integrated Safeguards Data news, ideas, Sheet) research, Web sites, and Second Uttar Pradesh Diversified Agriculture books on the Support Project role of private enterprise in Date 20 July 2005 fighting Project ID P089484 poverty and Report No. AC1665 (Integrated Safeguards Data spurring growth. The blog is informal and represents Sheet) the quirks and opinions of the bloggers, not the World Bank Group.

Vector Borne Disease Control Project The blog also highlights the latest resources as they Date 19 July 2005 are published on the Rapid Response Web site. Project ID P094360 If you would like to subscribe to the PSD Blog RSS Report No. AC1570 (Integrated Safeguards Data feed, please use the following link: http:// Sheet) psdblog.worldbank.org/psdblog/index.rdf. This link will only work if you have an RSS reader.

22 The World Bank in India • September 2005 World Bank Policy Research Working Papers

3683 3668 Competitiveness partnerships: building and Economic impacts of professional training in the informal maintaining public-private dialogue to improve the sector: The case of the labor force training program in investment climate - a resource drawn from the Cote d’Ivoire by Dorte Verner and Mette Verner review of 40 countries’ experiences by Benjamin 3667 Herzberg and Andrew Wright Does health insurance impede trade in health care 3682 services? by Aaditya Mattoo and Randeep Rathindran The poverty and distributional impact of 3666 macroeconomic shocks and policies: a review of Bank privatization and productivity: evidence for Brazil modeling approaches by B. Essama-Nssah by Marcio I. Nakane and Daniela B. Weintraub 3681 3665 Productivity, ownership, and the investment climate: Credit constraints as a barrier to technology adoption international lessons for priorities in Serbia by Itzhak by the poor: lessons from South Indian small-scale Goldberg, Branko Radulovic and Mark Schaffer fishery by Xavier Gine and Stefan Klonner 3680 3664 Are external shocks responsible for the instability of The impact of business environment and economic output in low income countries? by Claudio Raddatz geography on plant-level productivity: An analysis of 3679 Indian industry by Somik V. Lall and Taye Mengistae The marginal cost of public funds in Africa 3663 by Michael Warlters and Emmanuelle Auriol Services policy reform and economic growth in 3678 transition economies, 1990-2004 by Felix Eschenbach Why have traffic fatalities declined in industrialized and Bernard Hoekman countries? Implications for pedestrians and vehicle 3662 occupants by Elizabeth Kopits and Maureen Cropper Micro-level estimation of child malnutrition indicators 3677 and its application in Cambodia by Tomoki Fujii Inequality is bad for the poor by Martin Ravallion 3661 3676 Public infrastructure and private investment in the Trade and employment: stylized facts and research Middle East and North Africa by Pierre-Richard Agenor, findings by Bernard Hoekman and L. Alan Winters Mustapha K. Nabli and Tarik M. Yousef 3675 3660 Business environment, clustering, and industry Do incumbents manipulate access to finance during location: evidence from Indian cities by Somik V. Lall banking crises? by Erik Feijen and Taye Mengistae 3659 3674 Banking sector crises and inequality by Patrick Honohan Public debt in developing countries: has the market- 3658 based model worked? by Indermit Gill; Brian Pinto Antidumping mechanisms and safeguards in Peru 3673 by Richard Webb, Josefina Camminati and Raul Leon The overhang hangover Thorne by Jean Imbs and Romain Ranciere 3657 3672 Institution building and growth in transition economies The dot-com bubble, the Bush deficits, and the U.S. by Thorsten Beck and Luc Laeven current account by Aart Kraay and Jaume Ventura 3656 3671 World Bank lending and financial sector development An Analysis of South Africa’s Value Added Tax by Robert Cull and Laurie Effron by Delfin S. Go, Marna Kearney, Sherman Robinson 3655 and Karen Thierfelder Fiscal federalism in Switzerland: relevant issues for 3670 transition economies in Central and Eastern Europe Will a global subsidy of artemisinin-based by Bernard Dafflon and Krisztina Toth combination treatment (ACT) for malaria delay the 3654 emergence of resistance and save lives? by Ramanan Crop insurance in Karnataka by Vijay Kalavakonda Laxminarayan, Mead Over and David L. Smith and Olivier Mahul 3669 3653 Money for nothing: The dire straits of medical practice Regime-switching in exchange rate policy and balance in Delhi, India by Jishnu Das and Jeffrey Hammer sheet effects by Norbert Fiess and Rashmi Shankar

The World Bank in India • September 2005 23 The World Bank in India VOL 4 / NO 2 • September 2005

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