The World Bank in India

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"ij-~~"ij-ift~~~l m q;;r ~ ~ ~. q 'G'ffif* fucr ~ ~ 'G'ffif cf; ~ ~ Cfi{ Jltl('q~of ~ "ij- ~~~I ~";f~Jltl('q~ofiTf"ij-~~~~~'G'ffif~ CffiGfcf;~"ij-~~~~m lJ.Ct ~ ~ -oo ~~m~~ ~~~~m-~~lJ.Ctllitafr ~ ~ ~ ~ ~ ~ cf; ~ qft:ifi\JI113TI lJ.Ct 'f'l4st>iti ~ ~ Cfl('!tlT 1l<rr I ~. it. ~. ~ 'G'ffif ~ ~ ~ m ~ ~ (~ I<.CII!'IJldl) * ~ ~ ~ ~ atrt ~ 31'i1 <liscfl~ GI'T\JI'R 3Rf -m-ar "ij- ~ ~ cf; ~~~I m Jltltq~of iffif 'ffitrn"if.li~~"ij-~ lJ.Ct Wmlf ~ m ~ ~ fimr ~ S3TT ";;fr f.li ~ ~ ~ w "ij- ~ m~ ttt 1 ~ 'G'ffif *~ 3Tfacp ~ ~ lR ~. sl'l'dilllctil CfWmn CfiT 3WiRHJ~S3'fT 3fR~ 3'ftR ~ CfiT ~ 4fffi¥1 f4f.!l lflll, ~ m ~ ~I!'I'Jf ~ 1 ~ CfiT C1111illl11 : ~ ~ "ij- 'G'ffif ~ ~ ~ ~ ~ ~ ~ "ij- qft:lfl\JI'11 ~ cf; ~ ~ ~ i, ~ ~ ~ qftifi"1113TI lJ.Ct 'f'l41fl4'i ~ ~ cf; ~ ~. ";;fr 'G'ffif ~ ~ ~ ~ ~ ~ cf; ~ ~ 'tft!JT "ij-~'tft!JT~~~~ ~cf;~~~~~"ij-~~S3'fTI ~q,q,o aq;~ ~ ~~' qft:ifi\JI113TI~ wr~~. ~ "ij-~ ~~<:: qftl0(1"111a0. ~ ~ tt ~ "ij- fimr ~ ~ 1l<rr I cffilrr;; ~ ~~cf;~~~~~'~qftl:(I\JI113TI~~~¥~ ~ CfiT ~ ~ "'1'TtT ~ I ~o;:r~~cf;~~c::c:Nul"ij-ift~~i~m~ ~cf;~~~~~ii~IDU qftl:(I\JI'113Tf ~ ~~~ ~ ~ ~ ~~c::c:No1 "ij- ~ ~ ~I~ lr ~  mrn- q 3ll1lTft:p ~ *~ t ~ \ii'Rft ~..,. ~ m ~~ ~ ~"111aTI ~I \3GIIHOI cfi~, ~ISil~<fl ~ atR~cFt qft:~"111dTI <N~m~~CfiT ~ tlWi ~ - 31~·~(11 eN ~~ m l ~~ ~G<fl"~cF~~lFrffifct;trrrtr I~ 9ft:lfl"111ct w ~ t <~~~(1~14 ~ q m~ tt qft:~"111 mu ~f.1~~~ ~ lTtfT atR ~ <flll!fPqd ~ lTtfT I qft:lfi"111aTI<IT qft:~"111 ~cf;~~~~<Ft ~ ~ "<fl«ft ~ ~ ~ ~ ~ ~ ~ ~~ 3IT<rnf GCfi ~~~ 1 "41l"~~~~t~~~t ~ -.,m ~~~cFt~cN1U~<rr1:.~~G<fl"~~ ~ ~ ~ cf; ~ ~ ~ "ffilRff eFt '4! ~ ~ GCfi 1RfeFt I Cfl{ qft:~"l 113ft ~ ~ "ffilRff • ~ "\II'T\J1R eFt~~ -ijqr ~ eFt lT{ I ~ ~~ ~ "C1"[lffi" ~ f4ctft41 eFt 31121 !tll<fld I ~lffidm ~ 3ifucl> ~~ ~t~, ~~ ~atR~ISil~<fl ~~' "\J11lt31T<rnf~~ i?m~ I ~~"(1"[lffi"Fcffdl41 'Q;C1'~~~~~~~ ~-l[nrft<rrill:!;C1'. ~. ~. t ~~~~~am-~~ ~'4!~~ ~IW (fUl"~iTIU~~~t ~ cf; ~ ~ '>tm cf; 3RR, ~ cf; 3RR am-~ liTif ~ ~ Cfilftm~~M~I ~ ~ ~ qft:~"1113TI' ~ t -rR* m <R: ~ ~ 1 "41l" w ~ 'fiT -srmuT ~ ~ ~ ~ ~ ~ d<fi'i"ifili ~ ~ ~I ~ ~ d<fl'i"iliti ~ ~ qft:~\J111Q ~ cf; ~ 1ql1dSi ~ ~~ ~ d<fl'ilfili ~ qft:~"111 ~ eN~ ~ qft:~\J111 ~~ ~ atR~~~~f.rlmrmaT~ I 3Tfi'f<J;i~(qft:~"111 f t ~ ll1omfll<F1 ~ m-, ~~ ~ -~ l:fR ~ tw:rr lTtfT u-;; '4! ~fhiRta mar~ 1~~~* ~Rllll~<fll< lla<il:fcRfm~, ~mfcl;Ut '4T~t~~,mmll'l'ffimf~~t ~ ~tt 3JtRT ~ ft<rr ~ I ~ d<fl'ilfili ~ tt ~ "1tf ~ ~ ~ ~\ll~<flafmt~-~lR~lf{SI~tn~f.1<fl~(fUl"cFt~ '4! ~!"hi Ria~ 1 tffiT "1tt, ~ mu ~eFt lT{ d<fl'i"ifili fttlrif ~ ~ q ~ ~ ~ ~ -;ffit~ qft:~"111 f.iuRurqw;R~ ~~ ft<rr ~I ~~~<N'4Tm~~~ (-ttt3TT{)cfi ~ t d<fl'i"ifili ~ ~ ~~I ~~'-\\ ~ ~ ~ ~ cf; ~ ~ ~ ~ ~ 1JCfiR ctt ~Sif£1130 'fiT~ m- ~ ~ . ctt ~ ~ am- ~ ~ ~· d<fl'i"icN lR \l~leiuTI 'fiT ~ ~0 <f>«<T i I ~ cf; ~ .q -{ 'tt ~ ~ ~ffilf4d ~ cf; ~ ~-~ ~liT ~ ~ ~ i I -{.tt.~. 3ltR ~ ~ ~~I&! uTI cf; 3lffiCIT \lT'«f .q ~ Cfll4sfi4f CfiT ~ CR "® i I <:rn" ~ \kiZI<.Cl;ftll ana i ~-{. tt.~. <Fen~ \lT'«f <F ~ 31tf~n~ ~ 1 ~~fim"~q;r~~wmr-mi, w~~ <tT A .q mffif tm cf; ~ .q lJAT lJl.IT i I ~ WCfiT ~ ~ ~ll{l'fldf ~ttt~.q~~~~~m-ij--mi1 \lf«f.q, ~q;r~~.q~ ills*luflll"®il ~~cf; ~ ~~~~l'likq'iof~~ 1t<fi~~~ ~ mAY <f; ~ ~PI ISM I ~ CfiTI'l" m ~ ~llld ~ ~ ~ ~ ~ ~ ~ ijll611rl'l<t> ~ fsbtllt"l'l<t> Slfsbtii3Ti' if ~UR ~ I ~ m ~~~~~~~~.~~PI~!tll<1t1 ~~ ~~ant.~~~lR ~ ~ Cfl'ff~. ~ ~. <i<~i'tll( ani, ~ ~ ~ frrlTlT (l:frf.tt.~.~.). ~ ~ frrlTlT ~ 3fR ~ ~ <t>l%1 tl f<NTTTf ~ ~ ~ ~ ~ -anm. ~ ftt:rrr{ f<NTTIT, l'lt:l1ll< ~ m<t><OI atR ~ ~ 'Ill fact> <uTI tF ~ ~ ~ CfiTI'l" OR "@ ~I tCfi ~ 3TGI'~ Cf ~ Ht<<t>l tl ~ l:frf. ~. 3Tr. tF "l'lUr ~. ~ fsbtll<t><'lltfi~~GR~~~afR~ltt ~~ Cf ~ ~ !OI'Icttlii1 ~ ~ el4\l!PI<t> ~ ~ ~ \3ffil~d ~ ~ 1 ~t<fi~ ~q~ ~~: ~"11ft~~. fiR~ ~~3Tltf~m if~-rnr~ftif~q ~if frr'i1T{ -;;rR <mt ~ ~ ~ ~ ~ I tCfi -rnT Fmr ~ 411lll\11113Ti' if ~(ij(Cf>ltl mr3Tf ~ ~ ~ ~ ¢ ~ a1tt ~ qf{ll!\1111 <f; ell'li~Cf> ~ 4tlf4<~tl m~~~~ l'lik<1'iuf l~c::ctl'lol ~~ ~I 31Tfllf.1~ ~ 3lR : ~\fun~ tCfi q ~ SIIC(1<t>df ~ ~ ~ ~ m 3fR ~ ~ "\JI"iit ~ ~ ~ ~ 1R uTR ~ I -:::r.:~a<t>:-::fl'1')i%-fcl; ~ ~ ~•. qtt tCfi tF ~ Cfil~ ~WRIT if ~\fun~ !llctt l~d 'Cf>(1T ~~I '1m~' if~~ q ~ ~ ~ ~ ~ cp{ ~ 1Rf ~~~~ ~~ \3Giti{OI ~' ~. 3lTUTft:f;~3fr{~ ~~~~~ fsbtll~fciRl ~-;;rR <mt 411lll\1111lt~ I m,~fm~ atR ~ ~ M~~~~~<F~ ~ ~~~~ <F *m if~ \34<1~lll' ~ aw:rnr if~ if cprq!it ~ m mif ~ ~ tF ~ ~ ~ ~ 'CfTff \3('41G'1l ~ !llctt liH ilrffil m ffffi ~ ~ ~. tCfi ~ qf{ll! \11113l'f <F ~ '\JIGf Cfi'lfi ~ ~ ~ Wm1f ~ ~. ,:rmr ~ ~~~~~~~~q~ft~~ .~~~ ~ ~ ~ 1 t<fi ~ * m* ~~~I ~q, q,~ if '1m~' if ~.alt.3TR:tf. ~ ~. 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'1:1;. if; ~\9<?, ~ ~ ~ ~ <fiT ~: ~ ~ 'lfllT I ~ C1it ~Cifit it'"11"1 fct?HUI fim1<R ifm 3500 3000 ~ 2500 2000 1500 1000 500 OL---~--~--~--~--~--~--~--~ 84-85 85-86 86-87 87-88 88-89 89-90 90-91 91-92 92-93  ~ t<f; mr ~ ~ l1lt ~OFT 'llffif ~ ~ if9T ~ ~ M q,o ~~ m"111~ cF '1llftR~ I~ m"1113l'f cF ~ ~~W ifRf OFT~ -nciT\'ifl'aT ~ ~ ~~ ~R ~ ~~~q-rffffi~~(tm~qmr~tJA" ~~<Fr "ffi'T~ ~m- 1~ ~m ~~ qft:m"111tt~~ ~~~ 1 R~~3ftrft~~~<Fcrnur~qft:m"111"<F ~ ~ ~ qft:~~m <F ~ (ttf AA ~ ~~ tR ~ ~ ~ aCfitlat1 tr ~~ "Cf>Tlf~'ifsfi~ ~~~~ ~ ~ m"111an <F ~OFT mar~ 1~ ~ \r-'1" qft:41"111an <Fr ~tfiJ1Cfial 1ft ""1'Rft ~ ;;TI ~ ~ ~ ~ ~ ~ ~ q t<f; m- m- <F ~ <F ~ ~ 1R ffi ~ mCfiR 3ltR ffi ~ qftm"111m ~ ~ t<f;mr~<F~ qftm"1113l'f OFT~ <fi«fi ~ 1\ilGI"~ ~ ~ qft:m"111 OFT~t<f;<Frftm\'ifl'aT~ ~t<f;\r-'1" qft:m"111 OFT 1~iCfi1 Cfi«<T ~ ~ ~ tR ~ ~ ~ '1" ~ <F 'Gilt ~ frf1rftr mn-~1 t<f;~ ~~OFT 1~iCfi1 m~~ !lltttlf4a m <n"ff ffi cFr~\ifR<n"ff~~~OFT~~~~~~~ ~ 3!TCfir\'ifl'aT~~!llttt~f4a qftm"111 ~~, ~q3(1q~J:lCfidl ~ ~ (tm Cfm dCfi·11f~ ~ ~ ~ ~ 'ffiTRf ~ ~ "ffi'T cF Gfi":q ij 1¥1"'\JJf£1 mij" ~ liT ~ I ~ cFr ~ ~ ~ ""1'fi'R-~ . cF ~ fr ~ ~ ~ OFT frruftr fmrr \'ifTaT ~ I ~ ~ fr qft:m~1 1 ~~OFT ~m~mar~t W~~ qftm"111 ~~'lil<RT3Tf ~~ 3Ift OFTfrratturmar~ 1~-~ qftm"111 q;r~~ ~~miT "'1'i"tf-tffi.Cf, ~ ~~ ~~ ~~ "CflTlf AA \iiR q;r m 3fCfl'1" 1U m- \'ifTaT ~, 1~iCfi1 q;r m ~ m- \'ifTaT ~ 1w m ~ ~­ *~~~aCfi·tH~, ~~~ ~f<mfatft ~3Tf q;r ~ 3(qfflCfi1 mar~ 1w ~ <F ~ q;r \3Rt <Giflltq ~(.CiqdJ:ll t<f; q;r mar ~ I t<f; mTm ~ ~ qft:m"111 cF m;tJ tR ~ wncr Cf ~ ~ vrffl tR~~q-rff~~~~""''Rft~IW ~ ~~cF~ ~ <F m tR ~ qftm"111 <Fr CfiP:fct>l tl rt"4~1<Ff <F <F ~ -ant -ncrr \'ifTaT ~ 1~ mr -w ~ fm:J \iiR tR tr qft:m "111 tR ""fiTlf ~ mar~1  qft4\Gt"1t <F Fs\i~wCI~"l ~~ f\}!Ui~tt'l·~tatfmnwm:~ tt~ ~. ~ m 7ffi eAitRa· m- ~ Cfii4'CIItfl "fiT PI t'li$101 'Cfi«<T ~ 1~ PI t'li$1ol <F ~ 'ij' ~ 3ltFfT ~ ~ '*t frr~ gq ~ AA qffi' fcMlr <f ~ '*t d<fi'1lfi*> ~ <f 'ij'llll"-'ij'llll" lR 3lR ~ <fiR>"ll oWl "fiT wmwr RR 'Cfi«<T ~ I ~ ~ ~ lR '(t'1l" tt ~ ~ "UfVr RR 'Cfi«<T ~' \ifGf ~~AA~~1<ffrrulfur ~<F~~q-~mtf ~~ '*tPI~'il'j)EII(~~'qd<R~m I CfiltfSIOii('llcF ~~'ij'~~~'qd ~ \ii10T ~ ~ ~ ~ 3tt Wmt 'EI'tfl" 3tt 1<f frrulfur ~ I ~ ~ <F cmur ~ AA ~ '*t ~ ~ "fiT ~ afR Wmt 3/a ~4 ~ 1Rm~~lR~PII4~13iY<F~'ij'Wft~ ~~~~ ~ Plf4~1dTI if ~ ~ cF ~ ~ ~ ~ l:Jjif 'lTlT ~ ~ ~ I ~ ~ if 'SfiiT( lffili1TI cf; ~ 'ij' ~ mfuT ~ ~ ~ afR ~ ?# W CfildlRll4d cF ~ tt RR ~ "'1'ffi' ~ I ,. ~ ifsfi cf; ~ "<roof if ~1$1'11f afR 'if4i<fi"1 ~ \ii10T ~ 1 ~ ~ cf; ~ tt~~ f<MlT31Nhi'1 ~4~~f11'1 ~q1c:.~c 'i * * (arrJ:~. ) ~ tfl"'"'lan 'if4i<fi"1 ~ ~"'~'< mm ~ 1 ~1$1'11f if~ 3lTCfir \ii10T ~ ~~~~if ~ ~ ~ ffi'll, ffiJRf q ~ ~ ~ 'ij'llll" if ~ 'ijCfi ~ gt ~ I ~ ~ iffil' "fiT ~ flrffirr ~ ~ ~ if qfttft"'"'idTI '*t ~ ~ ~ 'ij' ~41PCid ~ ~ 1  -;ftfu crraf : ~ 3ltf0ll~ ~ ~ ~ cf; ~ ~ ifRI" -;:ftfij- CI'Rif cf; ~ cf; fit::rr ~ ~ ~ ~ ~<~ ~ ~ <m M 114<wwfl<'l mffilt:1 ~ ~ ~m ~ ~ "ffi"1T ~ ~ ~ <N ~ ~ m ~IW~"ffCJi~cfi~~~ SIIC{1Cfidf ~ ~~ ~ (UI;:ftfa4j ~ ~ ~ ~ ~ 1:ff ~ ~ ~ Ul'l"fi ncR ~~~"Un"~l Cfi{~~ ~ ~~IDU~ qft~"111afl ~ CfiltkJff ~~l:ff~~~'{{"'lli<fi1~ ~ ~ ~~~Cfid(tr ~~~~~mcf;1<f~~una~ m~~ ~ ~ ~ ~ fclilrr \5fRff ~ I Cfi{ ifR ~ "1-tf ~ 1:ff qft~ "1 11 1:ff ~ mrr"1-tf fclilrr \5fRff ~ I WOW~ ~ e: 11alf <fir~~ ~ IDU 'qffif<m~~~ <m'ft ~~~~ ~~ 1:ff "1tt "49dT ~ I 'qffif ~ 3114flll<fidll{ ~ ~ ~ ~ qft~"1113ff ~ ~~ ~ 3lfacf;~~~~vrr~ qft~"1113ffm· ~~~~m ~ ~I'JI# '¥\5fRff~l 'qffifq~*~ ~-ij-~~wt ~~IDU ~ ~ lJtr ~'qqp:{f!f(f ~ cf; "ijlJlf -ij- "'iffi 3lT W ~ I "A dialogue on projects and ~ -ij- ~. ~ ~ m ~ SIIC{1<fidf3ff ~ ~ ~ ~ on sectors is difficult ~ 1:R ~ ~ ~ ~ ~ 311q!tll<fidl ~~~I~ cf; ~ enough for the Bank and for the borrower. But what ~ ~ ~ Gflt ~ ~UI~Idl ~ <m W alR "ij- 3lTftCffif ~ tlT ~ is even more difficult for the Bank and borrower is ~ M ~ ~ "iti"(Uf ~ "'!<'~' ~ <N ~ q;"{ m ~~m ¢ dialogue on the general ~ ~. "l1'tl" (ij1<.91fi¥1dl) <fir~ m 1 ~ ~ ~ ~ ~ ~ economic, financial and <f ~ f i cf; ~ ~ ijk!Paa ~<fir 314ffl<fi1 M" ~ "<'11lT 1"l1'll" development policies of the borrowing country. Such a dialog~.te bas often been ~ '4t ~ ~ ~ ~ (01'1~Rllli, ~ ~. ~. otnttr<, ~. ~ 3lR ~ ~ l:ff~ ~ -m 31tf0llq~i Jit:t<l'rf * desirable in the past and bas taken place. It is, in my ~ <m~~~~ <fir· " "i"m (iji<.qlfiJidl)l:RJitit"4'JIOf~"49d'T opinion, usually going to be essential in the future that ~ ~ w ifRI" 1:ff '4t "49dT ~ ~ fcRr;ft cgrtl<'ldi'Jiq¥ ~ ~ ~ <m the Bank conduct tbis kind !Jiffii~d CF"{ffi t -m ~ alR ~ ~ SIIC{1<fidfaTI <fir ijfhiRid ~~I of dialogue with low-income countries which need a large flow of resources from abroad lmi *~~ iiT Ji(l('q err ~ e: 113ff ~ ~I M, ijiJilf\}f<fi ~ ~ ~ ~ 31tf0llq~ ~ ~ ~ cf; ~ -;:ftfij- CI'Rif <m 1TRt ~ ~ for a long period. " \J1111~Cfidl q ~ ~. ~ q llitaft ~ 1:ff ~ cf; 3fq;;; ~ -Escott Reid, 1965 3114flll<fidl I ~ ~ ~ 3ftAt qft~"1113ff ~ ;:f)faqldf <m fm:rr, ~. U11e'@!ll, m~ ~"ffCJi~~ I~ qft~"1113ff alR ~~ qtjfq(OI ~ ~ ~ ~ ~ ~ ~ Jitit"4'JIOf m"7Tf ~I  ~<mlf~ll'Rl'lRA'm~~~~~li,~\J11 ~ 'fiTt~<fl'1it\34Cfl(Uicfi~'lf~l~ ~lii~\J11 ~ ~~ ~UR Cfll4111ifi ~ ~ m ~~~~~~ ~I * \;fTffi M- ~ a<fl lffl' m ~ 3TR '1ffif ~ ~~ '1tt ~ 1 ~ l"1 "India, moreover, has never been a tabula rasa patiently ~~~ m~q,~o cf; ~ cf; lWf ~ ~ 3lT\;f cf; ~lii~\J11 -lf awaiting advice on ~cf; ~ ~ q~~~mt'flTlffl' ~ m~~3TR~. development priorities or tl. ~. CflT~~R~~~Cf!U<IT'\JlT1T. ~ ~ strategy before deciding on ~~rJ!tS(\J11Cflm3TR~cr~~~m,3TR~~ a course of action. Since obtaining its independence in 1947, India has had a * m ~ ~ qft~"111 ~ '41: ~ f.1~ ~ 1 ~q,~¥ 3TR ~q,\S~ ~ -lf '1ffif ~ ~ ~ Cfll4111ifi ~ ~ n~o ~ ~ ~ * * government able and willing to assign a high ~~ql priority to economic development and has been ~lii~I\J11 ~ eFT ~ ~ -lf, ~ ~ ~ 3fR 'TRfR a repository of strongly held ideas on what needs to be ~ ~ ~ cf; ~ ~ lT!r q, cffi't 3lGf ~lii~\J11 ~ ~ ~ ftrt done. " ~· Cflc::Cfll<'f11 ~ ~ ~ ~ ~ ~· ('q11<"liCfl ~urn ~ \3'i!J1~(1 ~ -Mason and Asher, 1973 ~~\;fT"OO ~ 1~ Cfll4f~<141 ~ ~<mlf~ 3lftrcf;~cr~ ¥o  ~~C::cNOI "*I" 311'1\tlFfidl W ~I W m if ~ cf; fcrnK;r Cfllrf#iJ:fi" 3fR . ~uhuf -eN"~ cf; lltR ~UR lR 3TTUTfuf ~ 3TUFR CflT ~ ~ \lfT "® ~ I ~ cf; 3lftrCfirtT fkm?Cfll ([ 3fR ~ ~ cf; ~ ~ ri~ lR~3WFR~(~)~m ~~~ ~ ~ lR ~if~ "*I"~~~ ac:<~~tilla m' cf; ~mr ~ cf;~lR~M~I ~~<r~~~~cf;3llUR lR ~"*I"~ -eN"~~ "*I"~ f.faffur "*I"~~ I ~ ~ ~ CfTa"fuTI cf; ll11lPl ~ ~ m' cf; ~'lr<f ~ ~ ~ ~ (l"<Tl ~ ~~~~~ ~ 3TR 'l1ffif cf; -afrq ~ CfTa"fuTI CflT ·~ ~ ~ 3lttm~*~ ~ ~W1Rl" ~mmlRm~mru CfiT SIR!~ k1 ~ <t>«<T ~ I ~ ~ '-\ o cf; G!tfcfi if 'l1ffif cf; mm "*I" "#~, * 31CWU ~ {Oio:flRirn 6fft if~ \F'tf 311!tii<11Ral ~ ~-'lffiQ ~m -eN" ~ ~ ~ ~ "*I" I ~ ~ ~~ '-\ t. if 'l1ffif -eN" 'TffiR ~ * ~ -eN- ~ m ~~"*I"~~ I ~ i'fi1l if if ~ "*~" 3TR 3WRft ~ m * lf)('l~ €\q 'lffiQ . ~ GRT f i ~ \3,il«1 t11:1 · G<'1" ~ 'l1ffif CflT ~ fcl><:rr 3fR ~ ~ lR ~ {!Cfll {I(JO!Cfl ~ ~ "*~" 1 l!ft 3lf{. ~- ~~ w ;11.-a fi1S(IJ:1 ~m ctr ~ ftllrif "*~" ~ 1R~ ~ if ~ ~ cf; ~ if crfUfu fcl><:rr ~ I·W G<'1" if -aR 1f.i;:JOJ 11 ~ 2t- "fR ~ (~~ «em ), if ~ ~ (-;;pf;:ft) 3TR . "There is no doubt that in l!ft ~ ~ (~ ~ ~) I$ ft1lri ~ 3TTlTTlft ~ ~ if ~ ~-'l1ffif both the rich as well as the ~m-eN" {!Cfli{I(JO!Cfl ~ <fi" I poor countries, there bas been of late considerable disenchantment with the giving or receiving of assistance across national borders . . . There is no reason why we should object to an assessment of our plans and policies by the aid-giving countries and institutions and much less reason why we should suspect something sinister in every honest advice rendered to us. AI" long as we ourselves are clear about where we stand and what we wish to achieve, there is no reason why we should fear a dialogue with other people. " -lG. Patel, 1971  "There is no particular ~Q,~o cf; ~ cf; ~ ~ ~ liii111$11Cfli?i cf; ~ ~ ~ ~ evidence that the licensing system has in f act served any p ositive economic purpose. m ~ ~ err 3TTffiw 1T<rr m I ~q, ~ '-\ ~ lJ;Cfi ~ ~ ~ ~ lJ;Cfi There is little doubt, ~fttlri~, uTI~~ ~ ~ ~ it; cf; ~ ~it; however, that it has ~ fttlli ~ ~ "ffllT I W fttlli ~ ~ Lfilft~Ti ~ oqmr ~ ~ prevented efficient enterprises from expanding, -;;rrmm=trmcm- ~~m atR~~cm- ~~ that it has imposed restraints ~ 1 ~ ~ oqmr ~ ~ afR ~W~Cfl ~ ~ ~ 31f.14fJ!aa1aTf upon the achievement of economies of scale, and that ~3TR~~CR"Tml~~cf; ~~err~, it has delayed and ~ ~ ~ (1~ 1R3lTmfur ~~~~2ft I d5)q(l"d hampered investment and production activity. It has, ~~ ~~"tR~afRoqmr~cf;~maferrmurrtT~I like the import control system, protected and ~~ ~ ~~ 0 ~ VffiiT ~ cf; ~ ~ m (OI·fifai:ff p reserved inefficiency by, in cf; ~ 1f{ ~ ~ ~ ~ 1ffiffi cf; ~ ~~em-~ effect, allocating market shares and restraining the tR iW:rr 1T<rr I ~ lft" ~ ~ ~ ;ftfa" cf; ~ 1R qldkl lq ~ cf; growth of more efficient enterprises. " ~UR Cfli%~ cf; m ~ "'i'ffi" ~ ~ I -Bell Report, 1965 ~ cf; llffi 1J'l1TCft ~ ~ ~ ~. uTI~ ~ 'qffif cf; ~ lili?lGifl err lJ;Cfi ~ ~ ~. 1R ~~~~I~~~ ~ q ~~C:cNUI"tf{ 3llmfur, ~~err li!Cfll(lc-JiCfl1:IT 1Cfll(lc-JiCfl "The fact of the matter is that 1J'iWfmm~1 ~~frr:n~*~tT-w~~ ~m~ the Bank cannot force any Government to do anything. ~ 'qffif ~ ~ f<m" ~ em- ~ 3lRfftp ~ ~ ~ ~ We are only an outside ~ err~ .~ 1T<rr afR q;-{ ~~em- f<m" ~ cf; ~ cf; ~ agency that has money to Wfl ~ cf; ~ ~ ~ 1T<rr I ~ URUTTt(a-~ ~ ~ ~ I oqmr cFr lend but even the amount of f<m" ~~. ~~~"liPT[~cFr~~~ lf{~~ ~ money that we can contribute to any one country is a small fraction of *Wr ~ ~ ~ ~ ~ fclxrr 1T<rr ~ 1 'W ~ ~ mtn mar~ lJ;Cfi fct>~mu~~~~~~%~~atRmm~1 (be country's own resources. We can only support what Governments and people themselves are prepared to f<m" ~ IDU ~ ~ CfTff ~ cFr 00 ~ ~ -;;rr;; ~ cf; ~ do. We can help in the 'W "liflrn ~ ~ ~ fct; ~ ~ qftqd1 cf; WI"~~ ~ WlR process. We have world-wide experience, we have some ~~ !4Cflilitl~11<-9 ~cf; !#l4i~C141 ~ li!Ji41'j)€'q ~~ ~ idea of what works and what doesn't work. . . . . In ~~~~~cf; ~~lft"~!Fl~ 003RR~~~~ India or elsewhere if these m ~;g:1r:ffi lf{~~ ~c:r:flta frr~~t ~~lft"~ *~ reform programs are not indigenous, they would not 1 ~~ ~ m~cm-;; ~~ cm-~91<"11-mm~~ ~ survive. The reform programs are fundamenta lly ~ ~ ~ 'fTff ~ q m em-~ 'W li!Jii11111ll9ffi" ~ ~~ fct> political; they are ecort-omic ~~~~~~~~~~Cfilft~3lT ~. ~lft" reform programs but they ~ ~ cf; f#l41~i:141 cf; ~ ~ ~ err~ Cf ~ ~ are essentially part of the political process. No foreign ~I~~ itCfi ~ 3TR, ~ ~ ~ ~ ~UlGifl aTR ~ agency can involve itself in such a process. The Bank ~mr frruf4" ~ ~ WK~T ~ ~ ~ ~ cf; llffi lft" M ~ 1 ~ ~ ~ ~ ~ ~ ~ ~ fct; \Fiff tfl"111aTI em- lillfi<'ldl~qqi 1U 1~ ~ ~ * ~ oo will not even try ". -Ernest Stem, 1993 fclxrr -; rr "lifcfidT ~ utr ~ ~ ~ ~~ m  "If the World Bank's ~ 'ij' (iiJl""''fl'l tt ~ ~~ "1lkl ~ ~ 'fiffi ~ m~~I m 3l'lT"{ influence gets beyond a certain point, if it begins to .!Qt~. *·~*~~~m ·~~~~lR~~'fiffi~ I'' look like pressure, even if it is something desirable in itself or something desired by the country itself, * ~ ~£( ~ ~ q;'lft 'Q.Cfi (l'"{q;T ~ m- ~ ~ 1 f<m' ~~'lmf*~~'ij'~~-~crr.=IT*~tt~ pressure by the Bank to achieve it can be a very -w ~ 1 'Q.Cfi 3lR ~~ f<m' ~ ~ 3Rl'm* * ~ 3r1'1i2IT 'ij' 'lmf ~ deadly political weapon. SI~CidJl ~~~I ~I ~ ~ 3lTUTftf; ~ 31'ft ~ ~ The World Bank is a source ~uttar ~ Micldl'j\<fct> ~~~I ~ ~ al'R, 'lmf ~ ~Cfil(i~('l of external finance to India, and it is very easy, when an unpopular <ot"11Rlqj 'ij' ~ '<t>l ~ ~ ~~ mw ~ ~ ~'if«rr * ~ ~ Sl"'ldiP?t<t> ~ ~ <I"'~Rl<t> ~ 'ij' ~ ~ ~ '<t>l f4ffi measure is taken, for its critics to argue that the country has either been * mm- ~ I crr.=IT tt treTI ~ ~ fucr ~ 'GITG" 'ij' \;f1fi -;;'{ ~ ~ 41"11iaTI'<t>T~* ~~m--m-~afR~*~~~ bribed or blackmailed into a policy measure. Unless ~ ~ ~ afR 'ffi'\1 ~ 'q'J(IT ~ I there is a degree ofpolitical sensitivity, one may get a situation where the whole relationship between the World Bank and the recipient country can get awkward . . . The thing to guard against is the role of the World Bank as an agent for pressurizing rather than leaning at the infant open door . . . Whether the World Bank comes in then as a gentle supporter of a door about to open and gives a push, or whether the Government says 'No ' because this is something comingfrom outside in the form ofpressure or leverage, that is something which has an extremely significant and rather delicate balance. " -L.K ]ha, 197_1 1t ~ cfllllf<1~ : m-~<fi~~*~~~~l<_1.3if~ if~ m- ~ iiTU 'llffif * m-q m ~m ~ ~ ~ ~ ~ CfiT ~ 'SRftcF ~ I -;;t ~ ~ 3TGf O<P CfiT "ff11Rl'R ~ <rrffi ~~ m ~ ~~ ~ fcF ~ ~ 3h" 'llffif ~ 3TTtffit ij 1?\ Gl fl cfi ~ ~ '1ft YftC1~d Cfi"«<T ~ I -;;t~~~if m ~ ~ "11'1Cfilt1~ m ~ ~ U~ Glftm * m-q ~ ~ -mt 3'!T<m * ~ if ~ fcFm lJ1lT m 1~-~if~~ ~CfiT'Cflflf 'llmfif ~~~ ~ ~ ~ ll'Tllffi ~ "11'1 Cfil t1 ~ cf; ~ ~ ~ 3h- 'llmf mom ~ ~ llt"1'11alt ~ ~ cf; ~~if~ cf; ~ CfiT SiRlPllt~ct m CfiT tlT I ~ Cllsif GI1"G" ~~ q if ~ ~ ~ Siklf.!lfa ~ ~~ \¥ if~ {~PI~<~ qft41"1'11aTI ~ ~-~ cf; ~ ~ fcFm lfllT m 1 ~if ~ 'llffif mCfiR ~ ~ ~ CfiT II (¥1;>fl!~ft ~ ~ fcFtrr m 1 ~ ~ ~ amr ~ fcF Clls!f Gfur ~. ~ CIGf ~ 3lT"1' O<P 'llffif mCfiR cF m"q ~ cF ~m if cfflT II V1ciflvfi Gl";fi ~ ~ I ~if mom ~~~ml11lf1R~~~'f<Rif~~*m-q~ ~ ~ m 1 ~~ -r.. -r.. cf; 3Rf O<P ~ 1R ~ ~ "ifffiiT m 1~ GI1"G" ~ ~1.3, ~ m l11lf 1R m ~ ~ * ~ .1f<liR ~ 1R m 3h- 3RRf: ~~ \30 if ~ ~ CfiT ~ ~ TTTt-f ~ * m 411\3~!11'1 Cfi'fAi~Cffi if ~ lJ1lT 1 * Cllsif ~ ~~~~ ~ 3h- ~UlGift~ cf; GfR if~-~marm~1 ~~-r..-r.. O<P~lfRT~mfcF~~ 3N-fi ~ frJ"~ 3fR ~ cF fsli~lrq~'1 ~ ~ ~ GR ~ OcP 1R ~ ~ ~ m- I 3lA" ~ Cllsif if~~~ fG!UlGifttli ~!tllff:ill(j ~~-~if 3lTf$f; \Jlqlil~l?"i cf; ~if~~ lf{ I ~~1.3o ~~if~~~~mf~cF3lT~~~ lt~l ..q~'1 cf; ~if~~~~ ~UlGifl ~if~~ ~I ~~\3o 3fR to cF afRr '1ft~ 'CfiT ~ mm ~ lfllT I ~ ~ ~ ~ ~ ~mf ~ ~ qft41"111aTt if m~ *~if~ ~UR ~ 'lT1frm ~ 'C'Ii'rl ~~if 31if 1~0QIC1~ ~ ~ ~ ~\ -;;t ~~if ~ ~~~*~~. ~'llmfif"tfC'''~ri~, ~. ~ ~ qft4t \Jj 1 1aTt 'CfiT ma1urcfi'dt ~ ~ 1~oq 1e1~ ~ qft4t \Jj 1 1 mm if~~~~~M'Ift~if~liDf~~l ~mum~, f i ~ ~ ~ qftllt"1'11aiT 'CfiT 3fcf;~ 'CflTlf ~ ~ cf; ~~lflfT~ I~~ 'if;~ W ~ ~ cf; 31ffiqT 3Ft1 ~ ~ ~ ~ ~ 'ffia:rr ~lit~. ~ ~mr qftmGt'113Tf ~ ~ ~ ~ till41f.-qa m- ~ ~ ~ ~ ;;rr ~ 1 * * 3ltR ~ 'Gtl;;fw ~'tR '1ffif~ ~~~~ 3ltR m lfuR ~ ~ ~ ,lt, ~ ~ 3111" ~o ~. ~q, q, ~ ~ * ~~~~f1m;r~~~~lfcfafR~~~~~ ~ * a?R '1ffif atTtr mw iiTU 'll'Rf GVfCP tJ'ffl ~ lit ~ ~ ~ 3lT ~ 3Td't1T afR ~ aMel~'fi ~m <N ~ ~ I antmt Wffi * Wl4" 'tR ~ ~ ~ ~ ~ ~ ~ 'tR ~ ~ tfaff ~ Wl4"-Wl4" 'tR ~arntrr~ I ~cf; ql~iiiC::'1 ~ ~OQIM4 ~ '1mrcfi 'fll4'filtl f.-l~~lcN ~ ~ ~ ~ ~ f1NR, ~. ~ ~ Jffi{.qrfi4 CfiTtf fclim ~I Wl4"-Wl4" 'tR ql~iiiC::'1 ~ 3lllt ~ iR ~ ~ ~ ~~ ~ cf; ~ · 'N '1ffif ~ q;llf "fi"( "Uft ~ iR "\3"'1'cfi 31fa'fllft~ cf; mt:r ~ ~ ~ ~ ~ I \lffif iR ~ ~ ~ cf; ~ ~ 'fl4~1ftlff cf; afi:q 3Tro'1"-~, ~ ~ ~ mGt '113Ti, ~ ~ wm cf; 'Sffi!t antmt ~'N~~~~~~~~~~~. ~f.f\1R cf; ~ 311\;f ~ 31fa'flltl mt'1ffif ~ ~ ~ ~Ul~lft4i tr~ ~ ~I ~ ~ ~ ~ 'tR ~ ~ w 31fa'flltl1101 m '1ffif * ~ fcffir lj;ft, 3Ft1 ~ ~ ~ cf; ~ ~ ~ 3Ft1 ~ ~ cf; mt:r ~ OQiqel~'fi ~~~~~I ~ m ~ '1ffif ~~<N~~~~iR~~ ~el?l~1t1~~<N * 3lllf '11'1Ft*r * ~ ~ ~ ~. ~~~~  / ti<mlf'~ · "tm~ ~ · ~lt.c~lll• fo!• . '!f~ ('lrol) ~If'~ · ~~ ~.1993 •