'India will make great strides in years to come'

Michael Carter, World Bank Country Director for India, is the first to admit that India has made remarkable progress in the last two decades.

According to him the rate of growth of the Indian economy has amazed most powerful nations around the world.

In an exclusive interview with Chief Correspondent Onkar Singh, Michael Carter says that poverty in India has been reduced by 10 per cent over the last few years.

"I entirely agree with Professor Amartya Sen when he says that freedom is incomplete without development. I think this is an absolutely fundamental point," he says.

What is your opinion about the developments made by India in last two decades?

India has made remarkable progress in all spheres of life. Particularly in the last twenty years. If you look at just at some of the basic indicators: for instance poverty has declined by 10 per cent in the last decade.

Also, in the field of literacy India has made astounding progress. Frankly, all the factors for a rapid growth are there and India should make great strides in the years to come.

Do you agree with Professor Sen when he says freedom is incomplete without development?

I entirely agree with him on this count. That is the most fundamental point. When he says that freedom is incomplete without development he is taking development in the broader sense which means access to basic services like literacy, clean water, health services.

It is holistic development which is absolutely essential if people have to experience a wholesome and full life.

How much is the World Bank investing in India? Are you happy with the pace at which some projects funded by the World Bank are being implemented?

We are engaged in about 70 projects in India at the moment. Not all of them are fully successful. But the overall success rate is very high.

That is really a tribute to the Indian authorities because all of them are Indian projects funded by World Bank, and are not World Bank projects per se. We simply provide the finance.

The funds that we provide to India are of the order of a billion and a half US dollars (about Rs 7,000 crore) a year. In years to come this assistance could go up. We look forward to continuing a constructive relationship between India and the World Bank.

Whenever the government announces liberalisation in certain sectors the opposition parties accuse it of bending under pressure from the World Bank. Your comment?

Anyone who knows how World Bank works would tell you that these sort of allegations are nonsense.

The Indian government very clearly has its own views, its aims and objectives. We are simply a modest outside player.

What the World Bank brings to you is international experience and finance to fund certain projects.

Of course, that does not mean that our lending comes without conditions. These conditions are designed with the governments who seek World Bank funds. But these conditions are applied to ensure the success of the projects.

There is no point in financing a project unless it is a success whether it is in India or elsewhere in the world.

Which are the spheres where you would like India to do better?

We would like to work in the same spheres that have been identified by the government of India. There is no question of we choosing the spheres for progress.

Human development is obviously fundamental. Then we have the education, health, access to clean drinking water. . . these are some of the areas where we can help a lot.

Another area where we would like to look hard is the infrastructure development, ranging from national highways to rural roads. Another sector where India needs to make significant progress is that of the power sector.

Does downsizing the government help because we have instances where even private sector industries have collapsed?

This depends very much on the specific context. It is really hard to generalise. If there is a situation where there are employees who are not contributing then it is really important to ensure that the taxpayers' money is used effectively and those employees have to be weeded out.

The real emphasis should be on getting results from government expenditure and the service should be as efficient as possible. It is only after that can one decide whether it needs downsizing or something else to make things more effective.

Is the number of job seekers growing the world over?

I am not sure what you are saying is necessarily correct.

There has been some increase in the number of unemployed people in some of the industrial countries in recent years. This is a reflection of the slowdown in the economies of the world, particularly after 9/11. This is a temporary thing and is likely to be reversed.

Of course, growing unemployment is one of our concerns, but one needs to decide what kind of policies are the best to reduce unemployment.

Do you foresee a revival in the aviation sector in the years to come?

I am sure the companies that are facing a crisis now will soon turn around. With good policies there is a bright future for this sector as well.