The Role of the World Bank in Indian Agri-Business Presented by: April Gascon, Sabith Khan, McBride Nkhalamba, and Habib Sangar GCG Gascon Consulting Group

WORLD BANK GOVERNANCE INDIA’S GROWING INFLUENCE COMPLIANCE WITH LENDING POLICY IMPLICATIONS FOR AGRI-BUSINESS

U.S. Influence & Governance of the WB

Premise and Assertions Perceptions that U.S. influence is exclusively self-interested and that the Bank is a foreign policy instrument for the U.S Perceptions that U.S. influence is exclusively self-interested and that the Bank is a foreign policy instrument for the U.S Share of Global GDP is an informal voting weight in the World Bank Share of Global GDP is an informal voting weight in the World Bank Perception s that World Bank lending policies are unilateral, and selectively appropriate Perception s that World Bank lending policies are unilateral, and selectively appropriate India is a growing Global Economic Power India is a growing Global Economic Power

Trend Hypothesis for World Bank Compliance

India’s GDP Trends 1.3 billion the world's largest democracy 1.3 billion the world's largest democracy second most populous nation, after China. second most populous nation, after China. 5.7 percent annually during the 1990s 6.4 percent annually during second fastest growing major economy in the world second fastest growing major economy in the world

Projections for the Future

Bank Lending

Agriculture Marketing in India Background; Challenges; Future prospects Background; Challenges; Future prospects Future Trading Future Trading Policy Framework Policy Framework

Growth Trend Towards Agricultural Marketing Definition : The Indian council of Agricultural Research defined involvement of three important functions, namely (a) assembling (concentration) (b) preparation for consumption (processing) and (c) distribution. Definition : The Indian council of Agricultural Research defined involvement of three important functions, namely (a) assembling (concentration) (b) preparation for consumption (processing) and (c) distribution. 1. To enable the primary producers to get the best possible returns, 1. To enable the primary producers to get the best possible returns, 2. To provide facilities for lifting all produce, the farmers are willing, to sell at an incentive price, 2. To provide facilities for lifting all produce, the farmers are willing, to sell at an incentive price, 3. To reduce the price difference between the primary producer and ultimate consumer, and 3. To reduce the price difference between the primary producer and ultimate consumer, and ( Source : ( Source :

Results– Agricultural policy in India - Of the six states, only one state complied with the World Bank policies proposed under the………. - Of the six states, only one state complied with the World Bank policies proposed under the………. The Bank’s 2008 report,11 India: Taking Agriculture to the Market, provided much of the insight and the analytical framework for new marketing regulations. The Bank’s 2008 report,11 India: Taking Agriculture to the Market, provided much of the insight and the analytical framework for new marketing regulations.

Main Benefits of Future Trading Manage price fluctuations Manage price fluctuations Risk Management Risk Management Access to new markets Access to new markets

Possible Policy Options Remain the same Remain the same Return to earlier practices Return to earlier practices Expand list of agriculture products Expand list of agriculture products

Final Recommendation Reforms in internal governance, decentralization, human resources, transparency and voice. Reforms in internal governance, decentralization, human resources, transparency and voice. The World Bank should promote future trading through their policies and lending practices to encourage agricultural exports The World Bank should promote future trading through their policies and lending practices to encourage agricultural exports

Thank your for your attention. Questions?