Announcement of India Acts to Reduce Fertility Rates on June 30, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/105 Contact: Richard Kollodge IDA NEWS RELEASE NO. 89/107 (202) 477-4507 INDIA ACTS TO REDUCE FERTILITY RATES WASHINGTON, June 30, 1989 -- India will slow down birth rates in three states through a project designed to provide training to more than 800,000 health workers and family-planning personnel. The World Bank is supporting the project with an $11.3 million loan and the International Development Association (IDA), the World Bank's concessionary lending affiliate, is providing a credit of SDR 87.2 million ($113.3 million). India's Family Welfare Program has grown steadily since 1980. But to be more effective in reducing birth and infant mortality rates, the program needs to be more accessible to those who require its services most. The project will help resolve this problem by increasing the capacity of the State Directorates of Health and Family Welfare to monitor its programs, make sure its personnel are adequately trained, and shift the emphasis of services toward younger families. Other measures will be taken to upgrade family-welfare facilities and train thousands of practitioners who will deliver services to underserved areas in Andhra Pradesh, Madhya Pradesh and Uttar Pradesh. The project will also support the innovative effort of involving practitioners of indigenous medicine to promote family welfare and modifications in management systems to improve the quality of services. These measures are expected to accelerate the pace of decline in fertility rates and improve the health status of women and children in these states. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. The IDA credit is for 35 years, including 10 years of grace; it carries no interest, but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents. IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit.