April, India Country Strategy (FY09-12) Isabel M. Guerrero Consultations with Civil Society Organizations April 2008

April,  Our current Country Strategy covered  Looking ahead to the next Country Strategy Will cover 2009-FY12 Finalize Dec Joint with IFC Why a new strategy?

April, Consultation process Main thrusts of the new strategy  Three key themes  Diversified approach  Principles on how we work Agenda

April, WHERE ARE WE IN THE PROCESS?  Consultations with civil society organizations in New Delhi in August- Sept  Meetings with staff and partners in Delhi and Washington over January- April  Consultations with CSOs in the states: April-May  Drafting: April-May  Finalization: Sept.-December Consultation Process

April, Three themes have emerged from consultations, in line with XIth Plan: Inclusive growth Government effectiveness Responsible growth  Some principles on how we should work have also emerged: Be more strategic & selective Do fewer things better Focus on better design and implementation Main thrusts of the new CAS

April, Theme 1: INCLUSIVE GROWTH India is growing fast, but:  Future growth is constrained by infrastructure and skills bottlenecks  Progress in income poverty and other human development indicators is not as fast Without sharing the benefits of growth more widely, social tensions may increase Hence, we want to help the government achieve inclusive growth  equity is a goal in itself  equity helps achieve faster growth Key themes of the new CAS

April, Theme 2: GOVERNMENT EFFECTIVENESS Entrenched bureaucracies and cultural attitudes generate inefficient services Rent seeking prevalent and wide-spread  Numerous approval layers remain in place Illegal connections common in water and power Absenteeism in public service is high Low expectations are common  No Indian city has achieved 24x7 pressurization of its distribution system (required for bacteriological safety)  Waste treatment receives low priority  Urban services are poorly managed  Education and health service expenditures are large but organizational performance is low Key themes of the new CAS

April, Theme 3: RESPONSIBLE GROWTH Much of India’s population is vulnerable to natural shocks, given …  High levels of population density and poverty  Stressed ecological systems Water resources major issue for future  Flooding and droughts affecting the poor  Lack of cross-border river basin management India needs to grow without placing an unsustainable burned on natural resources. India can leapfrog into cleaner technologies  Example: skipping several steps in emission standards for vehicles Key themes of the new CAS

April, Diversified approach The government has asked the World Bank to focus its support on:  Lagging states  States with weak governance In lagging states, the WB would focus coordinated activities on building capacity, assisting in the implementation of centrally sponsored schemes, and achievement of the Millennium Development Goals. In states with weak governance, the WB would support studies and capacity building activities to strengthen governance

April, Diversified approach The WB will also be engaged in more advanced states: to support institutional strengthening to support activities that have a demonstration effect in the rest of the country to provide the best expertise available to promote the debate on the difficult development questions India faces working in close coordination with the private sector and IFC

April, BE MORE STRATEGIC & SELECTIVE India is large, needs are many, and we are relatively few. If we want to have an impact, we need to align our efforts behind a few goals The strategy should guide the choice of what we do Principles on how we work

April, DO FEWER THINGS BETTER We are now overstretched. We need to do fewer things better. We need to improve the performance and results of our initiatives Principles on how we work

April,  Focus on better design (incl. enhancing readiness for implementation)  Focus on more effective supervision Principles on how we work

April,  We welcome your views!