1.

INTRODUCTION
The World Bank is an international financial institution that provides loans to developing countries for capital programs. The World Bank's official goal is the reduction of poverty. According to the World Bank's Articles of Agreement (as amended effective 16 February 1989), all of its decisions must be guided by a commitment to promote foreign investment, international trade, and facilitate capital investment. The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), whereas the latter incorporates these two in addition to three more: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID). 1.1 HISTORY The World Bank is one of four institutions created at the Bretton Woods Conference in 1944. The International Monetary Fund (IMF), a related institution, is another. Delegates from many countries attended the Bretton Woods Conference. The most powerful countries in attendance were the United States and United Kingdom, which dominated negotiations. Although both are based in Washington, D.C., the World Bank is traditionally headed by a citizen of the United States while the IMF is led by a European citizen. 1.2 OBJECTIVES The World Bank was established to promote long-term foreign investment loans on reasonable terms. The, purposes of the Bank, as set forth in the 'Articles of Agreement are as follows: (i) To assist in the reconstruction and development of territories of members by facilitating the investment of capital for productive purpose including; (a) the restoration of economies destroyed or disrupted by war; (b) the reconversion of productive facilities to peaceful needs; and
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(c) the encouragement of the development of productive facilities and resources in less developing countries; (ii) To promote private investment by means of guarantee or participation in loans and other investments made by private investors. (iii) When private capital is not available on reasonable terms, to supplement private investment by providing on suitable conditions finance for productive purpose out of its own capital funds raised by it and its other resources. (iv) To promote the long-range balanced growth of international trade and the maintenance of equilibrium in balances of payments by encouraging international investment for the development of the productive resources of members, thereby assisting in raising productivity, the standard of living, and conditions of labour in their territories. (v) To arrange the loans made or guaranteed by it in relation to international loans through other channels so that the more useful and urgent projects, large and small alike, will be dealt with first. (vi) To conduct its operations with due regard to the effect of international investment on business conditions in the territories of members and in the immediate postwar years, to assist in bringing about a smooth transition from a wartime to peacetime economy. 1.3 FUNTIONS World Bank performs the following functions: (i) Granting reconstruction loans to war devastated countries. (ii) Granting developmental loans to underdeveloped countries. (iii) Providing loans to governments for agriculture, irrigation, power, transport, water supply, educations, health, etc (iv) Providing loans to private concerns for specified projects. (v) Promoting foreign investment by guaranteeing loans provided by other organisations.

(vi)Providing technical, economic and monetary advice to member countries for specific projects (vii) Encouraging industrial development of underdeveloped countries by promoting economic reforms. 1.4 PURPOSE OF THE WORLD BANK

Growing needs and external expectations, rapid changes in its environment, and a governance structure that inhibits a more sharply focused strategic agenda have naturally led to mission ambiguity and goal congestion. Officially, poverty reduction is-as constantly emphasized by the Bank's official statements-the fundamental purpose of the institution. But the very different ways through which this goal was pursued over the years, the growing diversification of the Bank's more operational priorities, and the highly political nature of the agenda-setting process, have eroded the usefulness of poverty alleviation as the anchor providing a solid grounding against the strong pressures for diversification. AS a result, while knowing that poverty alleviation is the official line, Bank staff hold as diverse views as those outside the institution of what in reality the Bank's mission is-and ought to be.
These purposes have been interpreted in a variety of ways in the last half-century. In his writings, even the VicePresident and General Counsel of the Bank wonders how, in this changing environment, the Bank managed to avoid having to modify its constituent charter in any significant way.

Practical realities are also shaping the Bank's agenda. As countries privatize most of their state-owned firms, some clients are inevitably lost. In the past, Bank loans were often used to establish or expand these companies. So, paradoxically, while the Back could provide funds to a country to upgrade an electricity company, the Bank cannot lend directly to it once the company is privatized because it does not have a sovereign guarantee. The International Financial Corporation (IFC), the subsidiary of the Bank that invests and lends to the private sector in developing countries, does not have the capital base to cover huge needs in private infrastructure investments that are being faced by these counties. Another important reality that is bound to shape the Bank's agenda is the growing integration of capital markets and increasing capacity of successfully reforming countries to access these markets directly. Countries that have been successful in stabilizing their economies and achieving a substantial degree of political and institutional stability, can now secure through the international capital markets the funding for projects that in the past could not only be financed through the World Bank. Developing countries
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perceived as good risks will increasingly be able to access funds from international capital markets under conditions that are competitive to those offered by the Bank. This, of course means that the Bank's portfolio will be increasingly concentrated in the more unstable and, therefore, more risky, countries or projects. Again, some may regard this as a very positive evolution and as proof of the Bank's effectiveness. Others, instead, will worry that in the long or even the medium run this trend could impair the capacity of the Bank to operate.

1.5 CRITERIA Many achievements have brought the Millennium Development Goals (MDGs) targets for 2015 within reach in some cases. For the goals to be realized, six criteria must be met: stronger and more inclusive growth in Africa and fragile states, more effort in health and education, integration of the development and environment agendas, more and better aid, movement on trade negotiations, and stronger and more focused support from multilateral institutions like the World Bank.
1. Eradicate Extreme Poverty and Hunger: From 1990 through 2004, the proportion of people living in extreme poverty fell from almost a third to less than a fifth. Although results vary widely within regions and countries, the trend indicates that the world as a whole can meet the goal of halving the percentage of people living in poverty. Africa's poverty, however, is expected to rise, and most of the 36 countries where 90% of the world's undernourished children live are in Africa. Less than a quarter of countries are on track for achieving the goal of halving under-nutrition. 2. Achieve Universal Primary Education: The number of children in school in developing countries increased from 80% in 1991 to 88% in 2005. Still, about 72 million children of primary school age, 57% of them girls, were not being educated as of 2005. 3. Promote Gender Equality: The tide is turning slowly for women in the labor market, yet far more women than men- worldwide more than 60% are contributing but unpaid family workers. The World Bank Group Gender Action Plan was created to advance women's economic empowerment and promote shared growth. 4. Reduce Child Mortality: There is some what improvement in survival rates globally; accelerated improvements are needed most urgently in South Asia and Sub-Saharan Africa. An estimated 10 millionplus children under five died in 2005; most of their deaths were from preventable causes. 5. Improve Maternal Health: Almost all of the half million women who die during pregnancy or childbirth every year live in Sub-Saharan Africa and Asia. There are numerous causes of maternal death that require a variety of health care interventions to be made widely accessible. 4

6. Combat HIV/AIDS, Malaria, and Other Diseases: Annual numbers of new HIV infections and AIDS deaths have fallen, but the number of people living with HIV continues to grow. In the eight worst-hit southern African countries, prevalence is above 15 percent. Treatment has increased globally, but still meets only 30 percent of needs (with wide variations across countries). AIDS remains the leading cause of death in Sub-Saharan Africa (1.6 million deaths in 2007). There are 300 to 500 million cases of malaria each year, leading to more than 1 million deaths. Nearly all the cases and more than 95 percent of the deaths occur in Sub-Saharan Africa. 7. Ensure Environmental Sustainability: Deforestation remains a critical problem, particularly in regions of biological diversity, which continues to decline. Greenhouse gas emissions are increasing faster than energy technology advancement. 8. Develop a Global Partnership for Development: Donor countries have renewed their commitment. Donors have to fulfill their pledges to match the current rate of core program development. Emphasis is being placed on the Bank Group's collaboration with multilateral and local partners to quicken progress toward the MDGs' realization.

1.6 LEADERSHIP The President of the Bank, currently Jim Yong Kim, is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. Traditionally, the Bank President has always been a US citizen nominated by the United States, the largest shareholder in the bank. The nominee is subject to confirmation by the Board of Executive Directors, to serve for a five-year, renewable term. While most World Bank presidents have had banking experience, some have not. The vice presidents of the Bank are its principal managers, in charge of regions, sectors, networks and functions. There are two Executive Vice Presidents, three Senior Vice Presidents, and 24 Vice Presidents. The Boards of Directors consist of the World Bank Group President and 25 Executive Directors. The President is the presiding officer, and ordinarily has no vote except a deciding vote in case of an equal division. The Executive Directors as individuals cannot exercise any power nor commit or represent the Bank unless specifically authorized by the Boards to do so. With the term beginning 1 November 2010, the number of Executive Directors increased by one, to 25.

1.7 MEMBERS The International Bank for Reconstruction and Development (IBRD) has 188 member countries, while the International Development Association (IDA) has 172 members. Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank (such as IDA).
Voting power

In 2010, voting powers at the World Bank were revised to increase the voice of developing countries, notably China. The countries with most voting power are now the United States (15.85%), Japan (6.84%), China (4.42%), Germany (4.00%), the United Kingdom (3.75%), France (3.75%), India (2.91%), Russia (2.77%), Saudi Arabia (2.77%) and Italy (2.64%). Under the changes, known as 'Voice Reform Phase 2', countries other than China that saw significant gains included South Korea, Turkey, Mexico, Singapore, Greece, Brazil, India, and Spain. Most developed countries' voting power was reduced, along with a few poor countries such as Nigeria. The voting powers of the United States, Russia and Saudi Arabia were unchanged. The changes were brought about with the goal of making voting more universal in regards to standards, rule-based with objective indicators, and transparent among other things. Now, developing countries have an increased voice in the "Pool Model," backed especially by Europe. Additionally, voting power is based on economic size in addition to International Development Association contributions. 1.8 POVERTY REDUCTION STRATEGIES For the poorest developing countries in the world, the bank's assistance plans are based on poverty reduction strategies; by combining a cross-section of local groups with an extensive analysis of the country's financial and economic situation the World Bank develops a strategy pertaining uniquely to the country in question. The government then identifies the country's priorities and targets for the reduction of poverty, and the World Bank aligns its aid efforts correspondingly. Forty-five countries pledged US$25.1 billion in "aid for the world's poorest countries", aid that goes to the World Bank International Development Association (IDA) which distributes the loans to eighty poorer countries. While wealthier nations sometimes fund their own aid projects, including those for diseases, and although IDA is the recipient of criticism, Robert B. Zoellick, the former president of the
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World Bank, said when the loans were announced on 15 December 2007, that IDA money "is the core funding that the poorest developing countries rely on". 1.9 CLEAN TECHNOLOGY FUND MANAGEMENT The World Bank has been assigned temporary management responsibility of the Clean Technology Fund (CTF), focused on making renewable energy cost-competitive with coal-fired power as quickly as possible, but this may not continue after UN's Copenhagen climate change conference in December, 2009, because of the Bank's continued investment in coal-fired power plants. 1.10 CRITICISMS The World Bank has long been criticized by non-governmental organizations, such as the indigenous rights group Survival International,and academics, including its former Chief Economist Joseph Stiglitz, Henry Hazlitt and Ludwig Von Mises. Henry Hazlitt argued that the World Bank along with the monetary system it was designed within would promote world inflation and "a world in which international trade is State-dominated" when they were being advocated. Stiglitz argue that the so-called free market reform policies which the Bank advocates are often harmful to economic development if implemented badly, too quickly ("shock therapy"), in the wrong sequence or in weak, uncompetitive economies. One of the strongest criticisms of the World Bank has been the way in which it is governed. While the World Bank represents 186 countries, it is run by a small number of economically powerful countries. These countries (which also provide most of the institution's funding) choose the leadership and senior management of the World Bank, and so their interests dominate the bank. Titus Alexander argues that the unequal voting power of western countries and the World Bank's role in developing countries makes it similar to the South African Development Bank under apartheid, and therefore a pillar of global apartheid. In the 1990s, the World Bank and the IMF forged the Washington Consensus, policies which included deregulation and liberalization of markets, privatization and the downscaling of government. Though the Washington Consensus was conceived as a policy that would best promote development, it was criticized for ignoring equity, employment and how reforms like privatization were carried out. Joseph Stiglitz argued that the Washington Consensus placed too much emphasis on the growth of GDP, and not enough on the permanence of growth or on whether growth contributed to better living standards.
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The United States Senate Committee on Foreign Relations report criticized the World Bank and other international financial institutions for focusing too much "on issuing loans rather than on achieving concrete development results within a finite period of time" and called on the institution to "strengthen anti-corruption efforts". Criticism of the World Bank often takes the form of protesting as seen in recent events such as the World Bank Oslo 2002 Protests, the October Rebellion, and the Battle of Seattle. Such demonstrations have occurred all over the world, even amongst the Brazilian Kayapo people. Another source of criticism has been the tradition of having an American head the bank, implemented because the United States provides the majority of World Bank funding. "When economists from the World Bank visit poor countries to dispense cash and advice," observed The Economist, as Jim Yong Kim said in 2012, "they routinely tell governments to reject cronyism and fill each important job with the best candidate available. It is good advice. The World Bank should take it." Jim Yong Kim is the most recently appointed president of the World Bank.

2. ROLES
The lack of consensus about the World Bank's specific role (and how it should be translated into an operational mission, measurable objectives, and policies) has burdened the institution for years. Differences of opinion about the fundamental role of the Bank go beyond the fact that some shareholding countries borrow from the Bank while others provide the funds. While there are many expectations and definitions of the fundamental role of the Bank, four different models or perspectives are the most common. The first is the view that the World Bank is a financial intermediary, the Bank-as-a-bank model. A second perspective or model is the view of the Bank as an evangelical agent in charge of changing the behavior of governments in developing countries. The fourth is the view that the World Bank is a mechanism to transfer financial resources from richer to poorer countries. From the Bank-as-bank perspective the World Bank's role is, quite simply, to be a bank. Therefore, maintaining the institution's long-term financial integrity is a crucial purpose on which all other goals depend. The second model views the Bank as an instrument for the advancement of the national interest of the countries with more influence on its decisions. Such national interest is expressed in their policies towards other countries, in procurement goals for their companies in projects financed by the Bank, or even in expanding employment opportunities at the Bank for their nationals. The third is the evangelical model. A growing constituency sees the Bank's combination of money, access, knowledge, and expertise as a powerful instrument to convert the souls of governments implementing misguided public policies. This is, in fact, a more concrete manifestation of the expectation that the Bank's main role is to support a liberal (or market-based) economic system, as expressed in the promotion of liberal trade and investment regimes. Another version of this approach sees the Bank as an instrument for the promotion of values not readily accepted by the traditional power structures within developing countries. Increasing investment in and attention to women, environmental protection and better governance in terms of respect for human rights or accountability and transparency in government decisions are the prime examples of the sort of objectives that flow from this perspective of the Bank's role. Still others maintain that the advisory and "imprimatur" roles of the bank will grow even faster in the future, as economic and institutional constraints will increasingly limit its role to act as a financial intermediary. The argument is that the Bank's accumulated developmental expertise and its capacity to
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generate and disseminate policy-relevant knowledge have been gradually replacing its financial resources as its main assets. As donor countries face increasing fiscal constraints and aid budgets cannot cope with mounting demands, the Bank's capital will not grow as fast as the needs of the borrowers. This trend will presumably accelerate in the future, pushing the Bank towards its knowledgeintermediary, research-center, consulting-company role.

Finally, the fourth widely held view is that the Bank exists to transfer resources to poor countries. It is impossible, according to this view, for an institution that has the promotion of development at the core of its existence, not to have the supply of capital to developing countries as its basic function. This perspective stands in sharp contrast with the first model, which takes the view that the Bank is a financial intermediary.

The assumption that the Bank is, first and foremost, a bank leads naturally to the assumption that it is an institution that has a fiduciary responsibility to its depositors and has to administer its loan portfolio accordingly. The Bank raises funds in the capital markets at premium interest rates thanks to the guarantees provided by its shareholding governments and government guarantees it secures for the loans it makes. It then lends these funds to developing countries at lower interest rates that those they would normally secure on their own. But for those who assume that the Bank exists to transfer badly needed resources to poor countries, having its essential purpose defined as that of a financial intermediary is confusing means and ends. For the resource-transfer model, development is the objective and finance the instrument. Therefore, it assumes that the bank is a developmental institution first and a financial intermediary second. The Bankas-bank perspective responds that while this may be true, in practice, if the capacity of the Bank to raise cheaper funds from international financial markets is impaired, money for all the other developmental objectives will be less readily available. The resource-transfer perspective counters by stressing the need for the industrialized countries to do more for developing countries. In its more extreme formulation, the resource transfer model of the Bank leads to a view that expects the institution to resemble less a bank than a fund that must be periodically replenished by its richer shareholder-donors. In fact, this is the role played by the Ban's concessionary credit arm, the International Developmental Association (IDA), which instead of loans gives "credits" to the poorest countries (defined as those with per capita incomes of less than $1200 per year), charging only a small "service fee" and no interest rate. But according to the resource-transfer perspective, IDA's
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geographical and financial scope is too narrow. It argues that more money to more countries should be transferred if the developing world is going to have a serious chance to overcome its immense obstacles. Furthermore, in recent years this "resource transfer" role has been declining. The Bank's net disbursements have tended to decrease substantially and, in some developing regions, the Bank often extracts more funds that it transfers. The "negative net transfers" of the Bank to the developing worlds have thus become the focal point of most of the speeches of the Governors of the Bank representing borrowing countries at their annual meetings. Such widely differing assumptions about the basic role of the World Bank naturally engender very different visions about its goals and policies. The standards by which to judge the organization's performance or the changes needed to respond to new problems are also very dependent on the assumptions about the Bank's role. The quality of the bank's loan portfolio, for example, should not be the top priority if the main operational goal is to approve as many loans per year as possible. This is the resource-transfer model. If, instead, maintaining a top credit rating for the Bank by financial markets is seen as a condition without which its other developmental objectives cannot be achieved-the Bank-asbank model-then the quality of the loans becomes a central objective. Therefore, transferring resources to clients should not take precedence over the quality of the loan portfolio. The consequences of the lack of consensus among its owners about the fundamental role of the World Bank have become more visible in recent years as a result of changing international circumstances, notably the end of the cold war. But different views about the basic function of the Bank have shaped its evolution since its inception, and will probably continue to coexist in the foreseeable future. Development is a multifaceted process and the shareholders of the Bank are political actors subject to simultaneous contradictory pressures. This obviously limits the Bank's capacity to focus its efforts.

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3. WORLD BANK AND INDIA

Every business organization, independent entity or an entrepreneur needs funds to manage its operations and businesses. Companies in India can nowadays easily access loans from various public sector and private sectors banks present in the Indian Banking Industry for the growth of their projects, businesses and ideas. As and when the business succeeds, the companies can repay their loans to the banks. But happens when a country itself wants money for growth of infrastructure, eradicating poverty, and generating power? This is where one of the worl ds most dependable organizations comes to the rescue for lending its support- the World Bank.

World Bank provides loans, credits and grants to developing countries & emerging economies like India for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management. With the support and guidance of the World Bank, India has managed to achieve significant landmarks in the field of infrastructure, social development, energy sector etc. Some of the major efforts in which the World Bank has lent its support to India are discussed below: Providing relief to cyclone/ natural disaster prone places: World Bank has agreed to support the Indian national programme to mitigate cyclone impact by providing relief for the over one million people living in the coastal areas of Andhra Pradesh and Orissa, who face the wrath of cyclones year after year by providing a credit of $255 million. Rehabilitation Projects: A $220-million agreement with the World Bank was signed for rehabilitation and construction of houses affected due to floods in Bihar, alongwith reducing risks of flooding and boosting emergency responses in the event of future disasters, which affected 3.3 million people of which 4.6 lakh have been living in temporary shelters. Power Generation: The World Bank has stated in its latest report that India can generate 68,000 MW of power using renewable sources of energy like solar energy, wind energy and hydro-power, which could tremendously increase Indias power generation sector. This would make India self sufficient alongwith the nuclear energy operations in India.
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 Improving Health Systems: World Bank with its funding is helping to collaborate on group purchasing of essential medications, establishing a health technology assessment institution etc to tackle the current health needs of the people with changing times. Infrastructure Projects: Rural roads are revitalizing village economies in Rajasthan and Himachal Pradesh. Mumbai Urban Transport Project (MUTP) is carrying out much-needed improvements to Mumbais rail and road infrastructure. Building inter-state highways also is beneficial for connecting Rural India to the urban centres. The approx amount invested by World Bank in India can be seen from the current lending in different sectors in millions of US dollars for the year 2010-11: India which is one of the biggest democracies and fastest growing economies in the world still faces acute problems like poverty, illiteracy, malnutrition etc which has created parity in India. This is where a symbiosis between World Bank and various developmental organisations can help in a brighter future for India. India tops World Bank's loan list The country has become the largest recipient of the World Bank loans with over $9 billion worth assistance this fiscal ending June 2011, up fourfold over the previous fiscal. The Washington-based multilateral lender had extended only $2.2 billion loan to the country for the year ended June 2010. India's share among the various recipients of the Bank is 15 per cent in terms of loans, followed by Mexico with 11 per cent and South Africa with 7 per cent as of June 20, 2011. As of June 20, the Bank has lent $9.26 billion to India and is expected to provide another $0.04 billion in the remaining period of June. The Bank follows a fiscal year from July to June. The bank's total lending to India will touch $9.3 billion by the end of June and a similar amount is expected in the next financial year beginning July 2011. "We are working on a number of projects, which if you add them up, would roughly amount to the same amount of lending (in the next fiscal)," World Bank country director for India Roberto Zagha said after announcing the 2010-11 numbers in the Capital today. The support would be for transformative projects, including the Kosi flood recovery project and cleaning up the Ganges. Besides, the Bank also expects huge funding opportunity in the infrastructure sector, including the proposed dedicated freight corridor project.

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3.1 COUNTRY LENDING PROJECTS

Number of Projects by Year

Lending Amounts by Year

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Active Projects Project Title Enhancing Capacity for NAP alignment and Reporting to UNCCD Secretariat - India Bihar Rural Livelihood Project Additional Financing Rajasthan Agricultural Competitiveness Project P124614 109.0 Active P130546 100.0 Active May 31, 2012 March 27, 2012 P118445 500.0 Active March 22, 2012 P107648 352.0 Active March 15, 2012 Assam State Roads Project P096018 320.0 Active March 13, 2012 IN - Assam Agricultural Competitiveness Project Additional Financing India: Uttar Pradesh Health Systems Strengthening Project (UPHSSP) North East Rural Livelihoods Project (NERLP) P102330 130.0 Active P100304 152.0 Active P129686 50.0 Active March 8, 2012 December 20, 2011 December 20, 2011 P129119 2.79 Active December 19, 2011 P121774 155.3 Active December 15, 2011 P122241 1.9 Active October 14, 2011 Project ID P129603 Commitment Status Amount * 0.15 Active Approval Date July 12, 2012

India: Secondary Education Project

National Dairy Support Project

Tamil Nadu Empowernment and Poverty Reduction Project : TA Disability Second Kerala Rural Water Supply and Sanitation Project (Jalanidhi II) TA to Enhance Financial Access through Technology in Andhra Pradesh, India

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Pipeline Projects
Project Name Commitment Amount* India: ICDS Systems Strengthening & Nutrition Improvement Program (ISSNIP) India - Bihar Panchayat Strengthening Project Informal Settlements Improvement Project India: Karnataka Health Systems Additional Financing Karnataka Urban Water Supply Modernization Project IN: Gujarat Solid Waste and Composting Bihar Flood Rehabilitation Phase II HIV AIDS IV - Fourth National HIV AIDS Control Project India: TB II Additional Financing 100 India Pipeline 84 500 70 190 0 500 250 India India India India India India India Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline 106 India Pipeline Country/Area Status

Project Name

Commitment Amount*

Country/Area

Status

IN: Development Policy Loan to Support Inclusive Green Growth and Sustainable Development in Himachal Pradesh Himachal Pradesh Watershed Management Project Luhri Hydro Electric Project Uttar Pradesh Water Sector Restructuring Project Phase 2 Gujarat State Highway Project II HP State Roads Project - Additional Financing Karnataka Watershed Development II IN: Railway Regenerative Braking Project North Eastern Region Power System Improvement Project

100

India

Pipeline

8 650 400

India India India

Pipeline Pipeline Pipeline

350 61.7 60 5330 425

India India India India India

Pipeline Pipeline Pipeline Pipeline Pipeline

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3.2 WORLD BANK'S COUNTRY STRATEGY FOR INDIA (2013-16) The World Bank is holding a series of consultations to seek inputs on its proposed Country Program Strategy (CPS) for India for 2013-2016. The CPS is the Banks roadmap for engagement in the country over the next four years. Oriented toward results, the CPS aims to support Indias development agenda of faster, sustainable and more inclusive growth as outlined in the governments upcoming 12th Five Year Plan. The CPS identifies key areas where the World Bank's assistance can have the greatest impact on poverty reduction. This, in turn, determines the level and composition of the World Bank Groups financial, advisory, and technical support to the country over a four-year period. The CPS is developed in consultation with country authorities, civil society organizations, development partners, the media, the private sector, and other stakeholders. Consultations provide a platform for the World Bank Group to tap into the experience and knowledge of a broad range of stakeholders, and listen to their ideas about how the Bank can work with them to help the country meet its development challenges. Discussions not only cover the countrys long-standing development agenda but also the new challenges thrown up by unprecedented economic growth, and the recent slowdown. Accordingly, the World Bank Group is holding a series of consultation workshops in a number of cities across India to determine its CPS for 2013-2016. These include Delhi and four state capitals Bangalore, Raipur, Guwahati, and Lucknow. Each capital has been specifically chosen to represent the broad range of development challenges facing the different regions in the country today. Feedback, ideas and comments received as part of the consultations will be integrated into the Banks final CPS. They will also find echoes in the Banks subsequent projects, policies and documents.
Consultation Process

The process of finalizing the World Bank Groups CPS for India for 2013-16 is as follows: Mid May 2012: Draft Concept Note of CPS prepared by the World Bank Group Mid May-End June 2012:

Consultations with Ministry of Finance and line ministries at the centre

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Consultations with state government officials across six states including Karnataka, Chhattisgarh, Assam, and Uttar Pradesh

Consultations with civil society organizations in Delhi and five state capitals

End July 2012: Preparation of CPS

Sharing of CPS through website for further feedback Details of consultations with civil society will feature in a separate section of the CPS

September 2012: Presentation to the World Banks Board of Directors

Dissemination of final CPS document

Key Questions for Civil Society

Ahead of the consultations, the World Bank Group sends all participants a presentation in both English and Hindi. The presentation spells out the main thrust areas of the previous CPS (2009-2012), the opportunities and challenges within and outside India, and the direction given by the 12th Five Year Plan. It also outlines the World Bank Groups initial thoughts on its strateg y for 2013-2016, based on internal and external deliberations. While the three main areas of World Bank support are planned to remain the same as in the 2009-2012 country program, the Bank proposes to increase its support for technical assistance and capacity building. Moreover, while the Bank plans to continue to work in the remote areas of the country, both in the backward as well as better performing states, it proposes to increase its focus on the poorer states.

3.3 BRINGING WATER TO PARCHED INDIAN CITIES

Indias water supply is precarious, and no Indian city has piped water 24 hours a day, seven days a week.

As the country undergoes massive urbanization, the government is spending billions to revamp urban water and sewer systems.

The World Bank has released a report and is convening a series of workshops to share international expertise.
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Temperatures have soared in India this summer. The scanty monsoon rains have been unable to replenish reservoirs or recharge diminishing groundwater. Much of the country is reeling under acute water shortages. In water-starved cities like Delhi, those who can afford it pay large sums to private suppliers to fill up household tanks. The poor rise at unearthly hours to store a few bucketfuls from an erratic municipal supply, or push and shove to fill buckets and pans from government tankers that visit their area only occasionally. Fights over water are common. Indias burgeoning cities, already bursting at the seams, are struggling to provide their residents with basic services. No Indian city receives piped water 24 hours a day, seven days a week. Raw sewage often overflows into open drains, polluting ponds, rivers, and groundwater. Although cities like Delhi receive with 220 liters of water per person per day much more than Paris, for instance some 40-70% of this water is lost due to physical and financial leakages. Consumers bear the brunt of these inefficiencies. Nor are municipalities any better off. They are only able to recover a mere 30-40% of their operations and maintenance costs, leaving most to survive on government subsidies to meet their O&M costs as well as capital investment. Massive urbanization There is a clear need to revamp the system. No time can be lost, as India is in the throes of an unprecedented urbanization, the second in the world after China, with a further 10 million people expected to move into the urban areas each year. Recognizing this, the Indian government has been implementing an ambitious urban renewal program for the past five years. About 70% of the $12 billion allocated for the program the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been earmarked for improving water supply and sewers. It is estimated that the sector will need a further $140 billion in capital investment over the next 20 years.

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Learning from others experience There is a growing realization that creating infrastructure alone will not solve the problem; the management of urban water supply services will also need to be addressed to arrive at a sustainable solution. To find a way forward, the World Bank and Indias central Ministry of Urban Development, recently brought out a report, Improving Urban Water Supply and Sanitation Services Lessons from Business Plans for Maharashtra, Rajasthan, and Haryana and International Good Practices. The report, released at a recent workshop in New Delhi, seeks to address the key issues facing the sector in Indias states and cities. The report highlights the different water supply scenarios prevailing in the country today. It looks at three states that present a similar picture in terms of access to piped water supply but differ considerably when it comes to the quality of service provided. The report finds that while towns in Haryana, for instance, had the highest average quantity of water available per person per day, supply was irregular and varied widely between seasons. Towns in Maharashtra, on the other hand, had less water available but benefited from a more regular supply. Rajasthan, the desert state, had the least availability of water and the least reliable supply, with only 162 out of the states 222 towns receiving water every day. The cost recovery scenario presented an even more diverse picture. While the average recovery rate in Maharashtra was 68%, it dropped to 35% in Rajasthan and a mere 11% in Haryana. Although there is no one-size-fits-all solution, the workshop provided an excellent opportunity for government officials, as well as national and international experts with a broad range of experience from Brazil, Australia, Algiers, and Scotland to share insights and experiences on which Indias 4,000plus towns and cities can build. Providing basic urban services to a vast number of citizens, particularly the urban poor, is a serious challenge, said Kamal Nath, Indias union minister for urban development. It needs not only the right policies but careful planning, as well as good execution and management and monitoring. Capital expenditure alone is not enough to meet the gaps. The governance gap is very profound. This will be an important challenge that we are going to face. Three key areas for reform

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The workshop identified three key areas of reform that will be needed to develop a sound modernization program: 1. Address the huge losses of water, because if leaks are plugged, some 40%-70% more water will be available at no extra cost. The workshop highlighted many good examples from Australia, Algiers, and Brazil where water utilities started with a similar scenario but managed to reduce their inefficiencies over a span of 5-10 years. In India, Maharashtra has already begun to address this challenge. 2. Create institutions with clearly defined roles and responsibilities between policy makers, designers, and service providers, along with clear lines of accountability. Johannesburg has shown how separating policy and regulation from other functions can improve a utilitys management. Brazil and Australia provide examples of models that can suit municipalities of different sizes and capacity. 3. Build the human resources that are capable of designing, creating and managing the complexities of urban water provision. For this, a municipal cadre of dedicated professionals will be needed to provide the highest levels of service to consumers. Capacity can be built through classroom training, twinning with the state-of-the-art utilities, or contracting out to professional service providers or public-private partnerships (PPPs). A number of models can be explored under the capacity-building program of JNNURM II. 3.4 WORLD BANK PLANS TO FUND SKILL DEVELOPMENT IN INDIA The World Bank may initially provide Rs. 480 crore and lend further support depending on the success of the initiative, according to four people familiar with the development he World Bank (WB) plans to fund skill development initiatives in India and provide technical assistance to the National Skill Development Corp. (NSDC) in executing its mission. The World Bank may initially provide Rs. 480 crore and lend further support depending on the success of the initiative, according to four people familiar with the development. The government has moved a proposal in this regard and the file is now with the Planning Commission for its formal approval. A senior Planning Commission official said the panel was evaluating the proposal. The official declined to be named. NSDC, which has a mandate to train as many as 150 million people over the next 10 years, currently has a corpus of Rs. 1,500 crore, of which it has committed Rs. 1,147.9 crore for skill training so far.
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We have a larger mission and welcome support from bilateral and multilateral agencies, an NSDC spokesperson said. NSDC has so far signed agreements with 46 training partners38 companies and eight sector skill councils. The partners have a target to train 60.6 million people by 2022. Vocational training in India is a $20 billion business annually, according to a July report by Kotak Securities Ltd. Around 475 million people will need training by fiscal 2022, it said. Indian officials involved in the skill development initiative have been in touch with the bank for over a year, according to at least two World Bank officials, who did not want to be named. The bank is also eager to provide technical assistance as it has a wide experience of skill development in several countries. The officials said the funds can be used for developing innovations in skill training, giving better exposure to partners and putting in place a central monitoring system for mapping the growth of the sector, among other things. If required, foreign experts can be drafted to help Indian officials, an idea the Planning Commission may not support as such experts charge high consulting fees. NSDC represents an innovative approach to training and to skilling. We would help the skill mission if asked, said John Blomquist, lead economist, human development, South Asia, World Bank. All action has to be selective and in close partnership with the (Indian) finance ministry. During the formation of NSDC in 2008-09, the government had said that the funds required for imparting skills to 150 million people through the body would be to the tune of Rs. 15,000 crore, and that the government would tap multilateral institutions among others to ensure that the funds are made available. During a skill council meeting on 19 January, Prime Minister Manmohan Singh said India will need about 260 million skilled people by 2018 and around 340 million by 2022, according to estimates. These studies also indicate that India needs to provide quality training to around 80 million people in the next five years. There is a significant gap between the requirement and the supply which, unless checked, will constrain Indias economic growth, Singh said.

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3.5 WORLD BANK CHIEF IN INDIA, FOCUS ON POVERTY ALLEVIATION World Bank Group President Robert B Zoellick begins an official visit to India tomorrow, to see what more it can do to support government efforts to overcome poverty, as India embarks on its 12th fiveyear Plan and global recovery remains fragile. The Banks partnership with India, one of our founding members, goes back six decades, and we look forward to sustaining it in the years ahead according to Zoellick Shifts in the world economy could affect Indias growth momentum and sharpen its development challenges. The Bank stands ready to continue to support India with its knowledge and financial resources to meet the challenges ahead. Indias steady growth levels had, along with those of other emerging economies, helped the global economy recover from the last financial downturn. India is poised to grow at seven per cent this year, buoyed by strong fundamentals and a high domestic savings rate. But the government recognises that returning to more ambitious growth targets will require addressing key structural bottlenecks, such as energy, mining, land and infrastructure as well and policies affecting the profitability of exports. As the government calibrates its plans to ensure high growth, it is investing in infrastructure to help create jobs and increase productivity for tomorrow. Its also seeking to remove the pronounced economic and human development differences among and within its states, while ensuring growth does not harm the environment according to Zoellick. World Bank are committed to supporting the governments ambitious development goals, and are exploring ways in which we can leverage resources to ensure that policy-makers and planners can access the best global thinking on issues that confront it, be it social safety nets, or public-private partnership ventures in infrastructure or improving the quality of education. Zoellick, who has visited India four times during his five-year tenure as the Banks president, will meet government leaders, including Finance Minister Pranab Mukherjee, Home Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia. He will also meet the Chief Minister of Odisha to discuss how the Bank can better support a state where almost half the population still has to overcome poverty.
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Set to step down from the Bank on June 30, Zoellick will visit the World Bank Groups office in Chennai. Since its beginnings in 2001 with about 70 people, the Chennai office now employs close to 500 people working in corporate finance, accounting, administrative and IT services for headquarters and country offices around the globe.

http://www.business-standard.com/india/news/world-bank-chief-in-indiafocuspoverty-alleviation/469045/
3.6 ROLE OF WORLD BANK IN INDIA GDP Role of World Bank in India GDP is one of the most important parameters to mark the growth in Indian economy. The World Bank has been aiding the country with every possible incentive. The activities of the World Bank are like:

The World Bank works in collaboration with a number of development associates such as the government of India, the bilateral and multilateral donor organizations, nongovernmental organizations (NGOs), and the private sectors to bring about an overall welfare of the Indian economy

The World Bank operates with the help of eminent academics, scientists, economists, journalists, and teachers, all of those who are sincerely involved in the execution of various development projects designed to bring about improvement in the Gross Domestic Product of India

The World Bank not only implements its own developmental schemes but also finances various other programs

One of the most effective and well-organized development plans formulated by the World Bank in collaboration with the Indian government and civil society is the Country Assistance Strategy (CAS), introduced in the year 2005

CAS was incorporated in order to explicit the nature of the assistance provided by the World Bank to the developmental programmes in India

Role of World Bank in India GDP includes offering finance in terms of various loans or credits, which are usually interest-free.

Country Assistance Strategy This plan has been successfully carried out for the past four years and is still in the process. The CAS plan of the World Bank focus upon certain facts like-

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Ensuring a notable infrastructural development Proper environment for the betterment of the industrial units Providing special benefits to the poor and disadvantaged class of people Ensuring a sustainable growth in India's economy

Research Study of the World Bank There are certain research studies conducted under the World Bank, which gives us a clear idea of the Role of World Bank in India GDP. Some of these studies are:

The World Bank presents study on the review of various policies designed for the economy of India by the Country Economic Memoranda

The public expenditure review, that is, the financial disbursement made by the development programmes in India is also reported by the research department of the World Bank

The World Bank is concerned about the environmental issues faced by the industrial units and other developing sectors in India and presents a study on that

The research study of the World Bank also depicts a report of various events organized by the government, media, and civil society organizations on the developmental issues of India

World Bank cuts Indias 2012 growth forecast to 6.5 per cent The World Bank expects Indias economy to grow 6.5 per cent in 2012, lower than the governments forecast of 7.5 per cent in the twelve months to March, as developing countries come under strain from economic troubles in western economies. The multilateral body on Wednesday said high inflation and interest rates would hurt domestic demand, with consumption and investment both suffering. The government, which is struggling to meet its fiscaldeficit target for 2011-2012, was unlikely to make up the shortfall with much fiscal action. Rising borrowing costs have cut into outlays for consumer durables and investment, with heightened uncertainty and delayed regulatory reforms also playing a role, the World Bank said in its annual economic outlook.

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The slowdown in western economies would hurt exports in the subcontinent. Demand for the regions exports is projected to slow in 2012 and lead to a near halving of export growth to 11.6 per cent in 2012 from 21 per cent in 2011, due to stagnant GDP in the European Union and the projected global slowdown, the multilateral body said. Financial troubles in Europe began to affect global trade volumes from August. Global import values fell 8 per cent year-on-year in the three months to October. Import volumes in the European Union shed 18 per cent from a year earlier. These have brought down the World Banks forecast for growth in developing countries to between 5.4 and 6 per cent from its earlier expectations of between 6.2 and 6.3 per cent. The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce one another, resulting in an even weaker outcome, the report said. Spreads on credit-default swaps, which insure against bankruptcy, also rose sharply after October for developing countries. This episode of heightened market volatility differed qualitatively from earlier ones because this time the spreads on developing country debt also rose (by an average of 130 basis points between the end of July and October 4th 2011), as did those of other euro area countries, the report said. By early January, spreads on developing-country bonds grew by an average of 117 basis points from their levels at the end of July. They peaked by October, however. Since then the median CDS rates of developing country with relatively good credit histories (those whose CDS rates that were less than 200 bp before January 2010) have declined to 162 points and developing country sovereign yields have eased from 672 to 616 basis points. Capital flows to emerging economies have weakened sharply as investors flee risk. Developing-country equity funds had $48 billion in net outflows in 2011, compared with a net inflow of $ 97 billion in 2010. The report said: In the second half of 2011 gross capital flows to developing countries plunged to $170 billion, only 55 percent of the $309 billion received during the like period of 2010. Most of the decline was in bond and equity issuance. 3.7 WORLD BANK TO EXTEND $975 MLN LOAN FOR INDIAN RAIL PROJECT The World Bank has signed a $975-million loan agreement with the Indian government on Thursday to build part of a massive freight railway line connecting north and eastern India.

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The Indian Railways urgently needs to add freight routes to meet the growing freight traffic in India, which is projected to increase more than 7 percent annually," said Venu Rajamony, joint secretary at the Department of Economic Affairs in the Ministry of Finance, in the statement. India is ploughing huge investment into overhauling its ageing infrastructure network, which has long acted as a brake on growth in Asia's third-largest economy. It plans to pump in $1.5 trillion into infrastructure over 10 years to 2017. Dedicated freight corridors will not only meet this growing freight demand, but also decongest the already saturated rail network and promote the shifting of freight transport from road to more efficient rail transport, Rajamony said in the statement. Transporting goods in India is expensive and slow -- it can take more than two weeks to move a container from New Delhi to Mumbai. The World Bank will fund a freight corridor to the east, while the Japanese development agency JICA will fund a similar project running 1,483 km from the capital to Mumbai, alongside which are planned 24 new industrial cities.

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4. AMERICA AND THE FUTURE OF THE WORLD BANK

The recent announcement that Robert Zoellick is stepping down as president of the World Bank begins the short political process of finding a replacement. But it is also the beginning of the more important process of determining a relevant role for the World Bank in a changed world. There will be a significant amount of press about the horse race as to who will succeed him. That race is largely irrelevant, as an American will likely continue to serve as World Bank president. Far more important is moving the bank in directions that are in the interest of its shareholders, especially the United States, and that allow the bank to remain relevant. Zoellicks tenure has been marked by success, but his six strategic themes, which have governed the bank since 2007, will need to be reviewed by the next World Bank president given the change in global priorities. The instruments, procedures, and mindsets across the World Bank are no longer sufficient to address the changing global realities, including the lingering effects of the global economic crisis, the shifting needs of middle-income countries, and changes in shareholder control. The United States should use this moment to ensure that the bank remains an effective, if indirect, instrument of U.S. foreign policy by ensuring that it moves in a direction that addresses its changing operating context while furthering U.S. development and foreign policy goals. The World Banks primary instruments are low-interest loans, interest-free credits, and grants; however, these might need to change as emerging donors gain clout. The banks current model rests on profits from lending by the International Bank for Reconstruction and Development (IBRD) to middle-income countries at a markup to cross-subsidize funding for loans by the International Development Association (IDA) to the poorest countries. Historically, poor countries needed World Bank loans, which enabled the bank to attach conditions (called conditionality) to the money. However, because this model is dependent on these countries continuing to accept loans, even as they can go to global capital markets for the same money, the bank is in an increasingly precarious position. It will need to restructure its financing and instruments to address the changing reality of its clients needs. The World Bank is currently in a position of financial strength, which the next president should leverage to reframe the institutions focus. In March 2010, World Bank shareholders pledged $5.1 billion of new paid-in capital as part of a general capital increase, with $1.6 billion coming from developing countries, which increasingly want to influence the banks operations. Concurrent with the capital increase, the voting share of developing countries grew from 44 to 47 percent, with the majority of the shift
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accounted for by increases in China and Indias representation. Investments in the World Bank from developing countries have become increasingly self-interested. While depending less on World Bank loans, these countries need the expertise, technical assistance, and private-sector insight the World Bank has to offer. To better serve its biggest clients, the bank will need to move to a consulting firm model and consider a 20- to 25-year phase-out of middle-income lending, with IDA taking on a bigger role in lending to poor countries. There are four areas the new bank president needs to address. First, is the increasingly Africa-centric makeup of IDA-eligible countries as other countries graduate into IBRD lending, which leads to questions about the division of labor between the World Bank and the larger aid architecture including regional development banks, vertical funds, private actors, and bilateral donors. The United States should take advantage of the World Banks strong financial position and the current restructuring of U.S. development finance institutions to reassess how best to allocate limited U.S.-based development funds to accomplish strategic priorities. In some cases, the United States should outsource some of its development work to the World Bank. As the United States closes aid programs in middle-income countries, many of which no longer need direct bilateral assistance, the responsibility for addressing the shrinking development challenges in these countries could shift wholly to the World Bank and the regional development banks, with explicit dates for complete graduation from all assistance over 10 to 20 years. The United States might also outsource a number of global public goods, such as environmental issues, public health issues, and microfinance, as it chooses to do less as a bilateral donor. Second, the new World Bank president should look at where the bank could act as a force multiplier of U.S. efforts in private-sector development. This could mean an increased emphasis within bank operations and financing on creating friendly business environments and privately financed infrastructure in developing countries, based on precedents like the U.S.-sponsored Doing Business initiative and financing through instruments like the International Finance Corporation. Third, the bank needs to become a much more effective player in conflict and post-conflict zones, which is an explicit part of its original intent and remains in IBRDs Articles of Purpose. While significant progress has been made by the bank since the conflict in the Balkans, it is still not equipped to work in conflict zones. Significant investments and incentives need to be changed in order to move the institution in a way that fosters functioning governments in post-conflict situations.

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Fourth, the bank should seek to indirectly support U.S. development efforts around building democratic governance structures in developing countries. In the case of a renewed U.S. democracy and freedom agenda over the next four to eight years, complementary interventions by the bank that increase the accountability of client country governments to publics could play an important role. The World Bank should set up new programs to help client countries develop governance structures, as well as tough anticorruption programs. In a speech last April, Robert Zoellick outlined a framework for the protection and development of civil society through the World Banks instruments. This should be a priority for the bank. Specifically, as a neutral actor, the bank should play an important and constructive role in the historic and long-term changes coming about in the Middle East and North Africa as a result of the Arab Spring. The World Bank and other international finance institutions are important instruments for promoting U.S. development and wider foreign policy goals. The bank effectively leverages U.S. taxpayer dollars, along with the contributions of other shareholder nations, to promote stability and alleviate poverty worldwide. Given a potentially diminishing political appetite within the United States for international development assistance, the World Bank could become an even more important instrument in supporting the U.S. development agenda. The United States should ensure that the bank takes advantage of new opportunities and addresses its current challenges, while furthering U.S. development and foreign policy goals through the governing agenda of the next World Bank president.

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5. GLOBALIZATION AND THE ROLE OF WORLD BANK

Role of Globalization Shouldn't we all treat globalization as a challenging opportunity? Globalization means increased interconnectivity and interdependence with the economies of the entire world. It encompasses international trade, investment, and finance helping in augmenting the national incomes of economies. Technologies got transferred in a manner that fostered better communication. It also speaks of the global environment, crime, violence, and terrorism, untapped potential across economies and employment opportunities that led to better economic integration. Globalization also speaks of the dreaded financial crunch, fear among workers to loose jobs and issues alike. Dual side of Globalization

Globalization is all about risks and opportunities, which should be managed at the national level by a strong social, structural, and financial system. Globally, there is a need to establish a strong international financial architecture and get rid of the challenges thrown open to us. This is where globalization and role of World Bank cannot be denied. Role of the World Bank in Globalization Low-Income Countries Debt relief would be given to the low income countries and the process should get going vigorously. It is here that the World Bank has a vital role to play by working with governments and ensure strong governance, effective judicial systems, and a robust financial system. All these would help fight corruption. If these initiatives are not taken, attracting foreign and domestic investment would be difficult and thus globalization shall fall back upon us. Middle-Income Countries Statistically, 80% of the world's poor live in middle-income countries. These are the countries which require utmost help for a strong financial stability. For that, the structural and social reforms should be in place for the next stage of development. The mission of tackling global poverty is the main agenda and the only important tool to achieve overall development. World Bank is focusing on

Secure long-term funding Give advisory services

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Create the right policy and institutional framework Address weaknesses in the social, structural, and sectoral policies

Future of globalization and World Bank's role

In next 25 years, the population of the entire world would go up by 2 billion to a figure of 8 billion people. The 98% of the surge in population would be in the developing countries. In 2008, more than 47% of the global population lived in urban areas. By 2020, 4.1 billion, or 55% would be living in urban areas. The World Bank is now aiming at maintaining parity in education and is also aiming at achieving the gender equality goals. We all must work towards building up a commitment towards global poverty reduction. After all, the benefits of globalization should be harnessed for delivering prosperity to the nations.

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SUGGESTIONS
Strengthen the role of the Governors. Ministers should be enrolled more effectively and systematically in the governance of the Bank. It is probably a good idea to have an executive committee of governors to provide long-term political guidance to the Bank. This proposition may sound simple and obvious enough, but in practice, it is legally and politically burdensome and very difficult to implement. It requires that the constitution of the Bank be modified and that almost 200 countries agree on a subgroup of governors to represent all of them for a given period. Nonetheless, and despite these and other difficulties, a mechanism must be found to strengthen the goal -setting and oversight roles played by shareholders. One small step in that direction could perhaps be the redefinition of the structure and the functioning of the Development Committee. The urgent need for a complete overhaul of the Committee is evident. It is indispensable to make it less ritualistic, predictable and irrelevant. A biannual occasion for governors to meet and discuss the Bank should not continue to be the missed opportunity that it has hitherto been. The Development Committee could increase its role as one of the bodies through which the governors convey policy guidelines to the Board and management of the Bank. On the other hand, recent attempts at reforming limited but useful ways the Development Committee have encountered so much resistance that a major reformulation of the role of this body is also bound to be a titanic task. Upgrading the board of executive directors. Governors should also agree to upgrade the level of their representatives to the board of the Bank. This might seems a subtle change with minor bureaucratic consequences. Nonetheless, given the circumstances that will be faced by the institution in coming years, it could well prove to be a momentous decision. Among other effects, the appointment to the board-even by two or three shareholders-of individuals with high visibility and prestige is bound to spur similar decisions by others, thus creating a quantum leap in the relevance of the board.

Extending the tenure of executive directors. Board relevance would certainly be enhanced by increasing the tenure of executive directors. A minister who has to appoint an executive director for an extended period of time (four years?) and who cannot remove the director once he or she is appointed is probably going to pay more attention to the selection of the candidate. Also, as noted, directors will have the time that they now lack to become effective interlocutors before their term of appointment to the board ends.

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 Redefining the functioning of the board. Major improvements in the Bank's governance can be achieved through the modernization of the board's procedures, support systems and general organization. Board committees have great limitations to induce the drastic changes in procedures that the board urgently needs. An external consulting company, with experience in the design of working methods, support systems, and organizational design of boards of directors of complex organizations, should be retained. It should report its recommendations to a special committee of the Board of Governors. These are some specific avenues that can be explored in order to strengthen the governance of the Bank. For some, agreeing on the role of the Bank, finding creative ways to engage governors in serious discussions about long term objectives of the institution, recruiting executive directors with high internal and external credibility and influence, redesigning the roles of the board, its operations, and its relationship with management may be minor "technocratic" changes. They will, however, be hard to achieve and are, perhaps, unrealistic. Yet without these small, difficult changes, lofty ideas about the Bank are very likely to remain only ideas. Furthermore, improving the arrangements and procedures through with the Bank is governed is not enough. The need to modify some of the organizational characteristics and the practices they engender is also necessary. The Bank's own examination of its portfolio-the Wapenhans report-highlighted problems that has as much, if not more, to do with internal organizational aspects as with external financial, economic, and institutional complications.

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CONCLUSION
It is not surprising that there is a clash of opinion over how aid is given. Indeed, those that offer assistance are going to want to have a say in how the loans are used and what kind of economic policies are fostered in a country's developmental process. Many developing and poor nations, however, are stuck in a quagmire of debt and impoverishment, no matter how much assistance they receive. Given this, we may need to remember that the process of aid is also a developing state, in which both the giver and the receiver should be helping each other reach a poverty-free world. In a more open and connected world today, reports and data are not the only vehicles of representing and sharing knowledge for development. With lots of credible knowledge producers, the bulk of development knowledge is generated outside the World Bank Group (WBG) and is produced and shared in a multitude of ways. Demand for development knowledge from clients is also changing. The World Bank plays three key roles related to knowledge for development (producer, customizer, and connector). In all this, the Banks connector role is becoming more important in getting better results from development knowledge. In this changing knowledge landscape, the World Bank is trying to better understand its client needs for knowledge services, the role it plays as a global connector of development knowledge, and to what extent the Banks deep understanding of sectors and issues depends on its strengths as knowledge producers and customizers. The World Bank is looking to engage with the development community to help explore how bringing development specialists together can contribute to more informed policy making and better development outcomes. We are inviting others to think through what implications this new knowledge ecosystem may have for its development knowledge, how it can be better at its connector role and to learn from the experience of others. The engagement methodology is to help identify critical elements of external knowledge networks, the types of knowledge that clients seek, and insights into how the Bank can strengthen its role as a global connector. This includes developing a conceptual framework, organizing experiences as case studies (showcasing learning from experiments, pilots, and completed and ongoing knowledge services inside and outside the Bank), as well as organizing conferences to engage knowledge organizations and practitioners on knowledge for development, and in particular on various ways for multilaterals, bilateral and practitioner networks to connect. The role of the case studies will be to point to approaches that may be path breaking, that may require support, or that are ripe for scaling up. Learning from these experiences will inform the development of the conceptual framework.
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BIBLIOGRAPHY
World Bank Report http://en.wikipedia.org/wiki/World_Bank Objectives & Functiions http://www.preservearticles.com/201012291899/objectives-of-world-bank.html http://www.preservearticles.com/2012022923911/what-are-the-functions-of-world-bank.html Purpose of the World Bank http://www.carnegieendowment.org/1999/09/04/world-bank-its-role-governance-andorganizational-culture/2bkj World Bank and India http://www.mbaskool.com/business-articles/finance/273-world-bank-and-india.html Country Lending Projects http://web.worldbank.org/external/projects/main?countrycode=IN&theSitePK=40941&piPK= World Bank's Country Strategy for India http://www.worldbank.org/en/country/india World Bank Plans to Fund Skill Development in India http://www.livemint.com/2012/02/14005306/World-Bank-plans-to-fund-skill.html World Bank Chief in India, Focus On Poverty Alleviation http://www.business-standard.com/india/news/world-bank-chief-in-india-focuspovertyalleviation/469045/ Role of World Bank In India GDP http://business.mapsofindia.com/india-gdp/sectorwise/world-bank.html World Bank cuts Indias 2012 growth forecast to 6.5 per cent http://www.indianexpress.com/news/world-bank-cuts-indias-2012-growth-forecast-to-6.5-percent/901279/0 World Bank to Extend $975 Mln Loan for Indian Rail Project http://in.reuters.com/article/2011/10/27/idINIndia-60155220111027 America and the Future of the World Bank http://csis.org/publication/america-and-future-world-bank Globalization and the Role of World Bank http://business.mapsofindia.com/globalization/role-world-bank.html

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