World Bank orders review of Indian projects

C K Arora in Washington

The World Bank has ordered an extensive review of its projects in India apparently with a view to improving their speed of implementation and utility, says its President James D Wolfensohn.

Wolfensohn said the bank had a large programme in India and one of its major areas of concern was the country's power sector.

Obviously, he was not satisfied with the working of the state electricity boards which had come to be seen as the major obstacle in the way of foreign investment in the infrastructure sector.

Wolfensohn said these boards came under the jurisdiction of the state governments and the Bank was looking into the problem.

During his last visit to India, he said he had discussions with then finance minister Palaniappan Chidambaram on the bank's involvement in India and the attending problems.

He said he was deeply moved by India's efforts in education, particularly the participatory education at all levels. The Bank and the government of India together could make a large contribution in this effort of human resource development, he added.

Without specifically naming any country, he said eradication of corruption in developing countries was high on his agenda. What concerned him most, he pointed out, was that corruption was a major factor inhibiting foreign investment.

Wolfensohn said the issue had to be dealt with by the governments of the countries concerned. The World Bank could only provide assistance in fighting this menace. ''What we can do is to influence the governments and provide expert advice,'' he added.

Later, John Williamson, the Bank's chief economist for South Asia, said it was difficult for India to sustain its six per cent rate of growth in the long-term.

Though things had changed a lot for the better in South Asia, he pointed out, it was still no where near East Asia in terms of economic growth. In this context, he referred to South's vast illiteracy and poverty.