India - The Social Safety Net Sector Adjustment Program Project

Docum_t of The World Bank FOR OmCuL USE ONLY pAI N1 1.i? CxFt 1 O'H1, ('-)Py fis rt. Nol. :1-- 'S,924- IN Tvpy,: fF) '11 Lie r 1ST9FNGTIHINT(N THF SOCTAf, 2,AFTY Repwr No. P-S924-IN Ext.: 8(3n.- Room:P ',304 Dr- ). 'A:'),Af4 REPORT AND RtECOMMDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPET ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A SECTOR ADJUSTHENT CREDIT IN A AMOUNT EQUIVALENT TO SDR 354.7 MILLION TO INDIA FOR THE SOCIAL SAFETY NET SECTOR ADJUSTMNT PROGRAM NOVMER 30, 1992 This document has a restricted distribution and may be osed by reipients only In the performance of their official duties Its contents may not otherwise be disclosed without World Bak autborization.  cURRcr EQUVALINTS (as of November 30, 1992) Currency Unit - Rupee Rupee 30.0 = US$1.00 Rupee 1.00 - US$ 0.33 MlTIC EQUIVALENTS 1 Meter (m) = 3.28 Feet (ft) 1 Kilometer Ckm) - 0.62 Miles FISCAL YEAR April 1 - March 31 ABBREVIATIONS AND ACRONYMS BIFR - Board for Industrial and Financial Reconstruction DOE - Department of Education EFF - Extended Fund Facility EGF - Employment Generation Fund ESAF - Enhanced Structural Adjustment Facility FCI - Food Corporation of India GOI - Government of India ICDS - Integrated Child Development Services JRY - Jawahar Rozgar Yojana (Rural Employment Program) MOHFW - Ministry of Health and Family Welfare MNP - Minimum Needs Program NCFW - National Credit Fund for Women nMP - Midday Meals Program NDC - National Development Council NIPCCD - National Institute of Public Cooperation and Child Development NRF - National Renewal Fund NRGF - National Renewal Grant Fund NRI - Non-Resident Indians NRY - Nehru Rozgar Yojana (Urban Employment Program) NFWP - National Family Welfare Program PDS - Public Distribution System PHC - Primary Health Center PLW - Pregnant and Lactating Women PSE - Public Sector Enterprise SSN - Social Safety Net SNP - Special Nutrition Programs  FOR OmCIAL USE ONLY SOCIAL SADT M2 SaCR Table of Contents Page No. CreditandProgramSuumar .. ..... 90999.9...... . . .. . . . . .. ii Key Macroeconomic Indicators .9...., ....... ....... iv Priority Poverty Indicators y.................,. v Balance Sheet on Human Development . ................ . vi PART I. INTRODUCTION . . . .. o o ......... .. . . . .... . . . . . 1 PART II. COUNTRY POLICIES AND BANK GROUP ASSISTANCE STRATEGY . . . 1 A. Recent Zconomic Performance . . . . . . . . . . . 1 B. India and the External Environment ......... 4 C. The Bank's Country Assistance Strategy . . . a . . . . 5 PARTIII. TE SOCI SAFETYNET ... ................ . 24 A. The Social Sectors .................. 24 B. The Social Cost of Stabilization and Reform . . . . . 26 C. The Challenge of Adjustment In the Social Sectors * . 27 D. The Social Safety Net Sector Adjustment Program . . . . 28 E. Sustaining the Social Safety Net Sector Adjustment Program and liscal Adjustment .. .... ..... 41 F. Social Safety Net Reform and the Role of the States 42 PART IV. The PROPOSED SECTOR ADJUSTHENT CRZDIT .......... 42 A. Credit Objectives . ................ . 42 B. Justification of the Operation . . . . . . . . . . . . 42 C. Co-Financing . . . . . ..........45 D. Tranche Releases ..... .............. 45 S. Credit Administration ................ . 46 P. Moitoring . . . . . . . . . . .* 9 9 . . . . . . 47 G. Benefits and Risks . . .9. 9 9.999999 . 48 PART V. RECOM10DATION .... * * . . . . . . . . . . . . . . . 48 Tables Table 1. India: Average Annual Coditments by Sector for FY81-92 8 Table 2. Policy and Institutional Focus of the Project Based Lending Program ... .............. 12 Table 3. Recent Project Lending and the Banks Areas of Special lmphasis, FY91-92 ....... ..,. 19 Table 4. Key Macroeconomic Indicators and hmternal Financing Requirement . ............ 44 This document has a restricted distribution and may be used by recipients only in the performance of their oMcial duties Its contents may not otherwise be disclosed without World Bank authorization  - ii - ,nmTA SOCIAL 8 I