INDIA COUNTRY PARTNERSHIP STRATEGY 2013-16 DRAFT CONCEPT NOTE FOR DISCUSSION

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WHAT IS A COUNTRY PROGRAM STRATEGY (CPS) ? The World Bank prepares a CPS to set out the priority

areas of its support to the country’s development strategy (eg. India’s Five Year Plan) It serves as an indicative business plan in support of a country’s

development goals. Oriented toward results, the CPS is developed in consultation

with country authorities, civil society organizations, development partners, and other stakeholders.

It identifies the key areas where the Bank's assistance can have the biggest impact on poverty reduction.

From this assessment, the level and composition of Bank Group’s financial, advisory, and technical support to the country is determined.

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WHY YOUR INPUTS COUNT

Consultations with civil society are key to identifying the internal and external challenges facing countries in its fight against poverty.

Through consultations, the World Bank Group is able to tap into a broad range of perspectives from those involved or affected by development programs. It aims to integrate comments and new ideas into its operations, policies and final documents.

Consultations help capture the experience and knowledge of multiple audiences―government, NGOs, academia and think tanks, media and the private sector― to enable greater participation of partners and stakeholders in operations supported by the Bank. .

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THE CONSULTATION PROCESS FOR CPS 2013-16 Mid May 2012 – Preparation on draft presentation on CPS Mid May-End June

Consultations with Ministry of Finance and line ministries at the Centre

Consultations with state government officials across six states including Karnataka, Chhattisgarh, Assam, and Uttar Pradesh

Civil society Consultations in Delhi and five state capitals – Bangalore, Raipur, Guwahati, Lucknow and Mumbai

End July : Preparation of CPS Sharing of next CAS through website and email updates for further

feedback A separate section on the issues discussed during consultations

with civil society will be prepared

End August : Presentation to Board Dissemination of final CPS document

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STRUCTURE OF THE PRESENTATION

The main pillars of the previous CPS (CAS 2008-2012)

Highlights of how CPS 2008-2012 was implemented by the World Bank And the lessons learnt

Current Scenario – Opportunities and Challenges Developments/trends within India and outside Direction provided by the XIIth Five Year Plan

Initial thoughts on what the CPS 2012-2016 could focus on Constraints and opportunities

Six questions where we need your inputs and guidance

Additional points you want to cover

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FOCUS AREAS OF SUPPORT IDENTIFIED FOR CPS 2008-2012

Pillar 1: Rapid and Inclusive growth Infrastructure building Enhancing agriculture productivity Increasing access to finance, for the poor Leveraging private investments

Pillar 2: Sustainable development Supporting implementation of the GoI’s low carbon strategy

Cleaner Coal Renewable energy sources - hydel, solar, wind

Integrated coastal zone management and biodiversity conservation Strengthening disaster management (flood management in Bihar)

Pillar 3: Service delivery improvement Promoting universalization of primary and secondary education; Strengthening public

Health delivery systems (NRHM) Strengthening implementation and effectiveness to national development programs Enhancing delivery of public services, such as water Promoting rural road connectivity, road safety and asset management

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CPS 2008-2012 : IMPLEMENTATION HIGHLIGHTS

1. Scaling up of WBG engagement in India IBRD/IDA and IFC lending doubled:

From US$12 bln under the previous CAS to $25 bln under the present CPS This includes $11billion provided to India by the WBG during the global economic

crisis in 2008-09

New areas of engagement: Focus on ‘transformation’ projects – Ganga Clean up, Dedicated Freight Corridor,

Coastal Zone Management, e-service delivery, etc.

Moving from projects to country-wide programs: Primary and secondary education, rural roads, rural livelihood In terms of actual lending value – specific numbers

Knowledge and Technical Assistance (TA) Investment climate at state level, social protection, gender, urbanization, low

carbon growth, biodiversity, integrated transport strategy, health insurance, etc. IFC advisory services grew by almost 50 percent between FY09 and FY11

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CPS 2008-2012 : IMPLEMENTATION HIGHLIGHTS

2a. Aiming for growth with inclusion

Agriculture productivity and sustainability Record lending to Rural and Agriculture Sector in 2011-12 of nearly $2 billion

Land reclamation, improved watershed and community tank management, support to national dairy program, strengthening of farmer to market linkages in low income states, climate smart agriculture, and roll-out of low-input, low risk farming, etc.

Transport Sector : Improved asset management of highways ( 7 states) and rural roads (PMGSY)

Promoting rural road connectivity, road safety and asset management

Financial and private sector development Financing of Small and Medium Enterprises, vocational and technical education

(specifics), GoI’s CSR initiative.

Investment climate reforms including in low income states (IFC advisory services in Bihar, Orissa, Uttar Pradesh and Rajasthan; tax and e-governance efforts in Bihar)

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CPS 2008-2012 : IMPLEMENTATION HIGHLIGHTS

2b. GoI’s Growth with Inclusion agenda Poverty alleviation and social inclusion

Access to Credit : Micro-finance, Rural livelihood projects (including in NE states), women economic and social empowerment through in self help groups.

Access to health services: accessible and affordable health care facilities; payment platform in Bihar

Natural disaster: National Cyclone Risk Mitigation, Bihar Kosi Flood Recovery, Coastal zone management

Engaging in low income states 27% of IBRD/IDA commitments under present CPS period (including share of multi-state

projects) and 35% IFC total in FY12

Capacity building and governance reforms: E-service delivery, e-procurement, M&E, performance management

Improving investment climate and enhancing awareness amongst investors about emerging industrial and infra opportunities Bihar health payments, Bihar tax reforms, micro finance, Rajasthan knowledge partnership, housing micro finance,

agribusiness)

Innovations in service delivery: G2Patient health payments and SMMEs e-filling of taxes in Bihar

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CPS 2008-2012 : IMPLEMENTATION HIGHLIGHTS

3. Sustainable development initiatives: support to the implementation of the GoI’s low carbon strategy

Energy efficiency : Coal-fired generation rehabilitation, Lighting India program, green buildings

Expanding renewable energy use : Solar power to off-grid telecom towers and India’s first private sector grid tied

solar power company, expanding solar roof top project in Gujarat and other states Medium to large hydro projects demonstrating improved social and environment

practices

Integrated coastal zone management and biodiversity conservation

Strengthening disaster management (flood management)

Leveraging climate finance (CTF, carbon funds, etc.)

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CPS 2008-2012 : IMPLEMENTATION HIGHLIGHTS

Pillar 3: Service delivery improvement initiatives Promoting universalization of primary and secondary education Reforming health delivery system (NRHM), New UP Health Systems

Project Introducing 24/7 water supply in urban areas of Karnataka Supporting GoI’s efforts for strengtening implementation of national

development programs (PMGSY, SSA, NRLM, RMSA, rural WSS, etc) Capacity building for rural and urban local governments, promoting

participatory development – water user associations, self help groups Promoting e-governance and accountability

NeGP, urban service level benchmarking, corporate governance under NHAI TA, IT-based systems now embedded in 1/3 of projects

Mainstreaming social accountability mechanisms social audits in PMGSY and R&R processes, participatory development

(watershed development, rural WSS, small irrigation)

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PLANNING THE NEXT CPS: CURRENT CONTEXT

India sustaining growth, though at lower levels While India’s growth rate in FY11/12 fell under 7%, it still is the second

fastest growing economy. From 1.7% of world GDP in 1980 to 5.5% in 2010 (4th largest) An increasing contribution to the international agenda - role within G20,

ASEAN, BRICS initiative, etc. Falling corporate investment from 14% of GDP before crisis to 10%

Global economic developments could pose serious challenges, given India’s limited fiscal space

Challenged by unequal benefit distribution –regional, caste, gender, income categories, rural-urban, etc.

Governance in focus: RTI Act, Women political empowerment, decentralization, E-

service delivery and Corporate governance12

PLANNING THE CPS : INDIA12TH PLAN HIGHLIGHTS

1st pillar: rapid & inclusive growth; Investment rate of 38.5%; Jobs; Manufacturing, especially in SMEs; Agri growth,

improving Business climate, Domestic market integration One trillion in Infrastructure; Energy, Reducing regional disparities; Urban transition

2nd pillar: sustainable development; Improving the management of natural resources

Strengthening land acquisition and R&R processes, rationalizing land use in urban areas, promoting land titling/leasing

Towards “ a credible and fair system of exploitation of mineral resources” Promoting green development: water & energy efficient, low carbon development

Strengthening natural disaster management/resilience

3rd pillar: enhanced effectiveness of service delivery Reforming the health system Improving quality of (universal) primary education Universalizing access to secondary education by 2017 Enrolling 10 million additional students in higher education (Increasing present

gross enrollment rate of 18% to 25%) Accommodating 10 more million urban dwellers a year Focusing on access to basic services in lagging/backward areas across the

country

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SOME INITIAL THOUGHTS FOR CPS 2013-2016

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CPS 2013-16 : STRATEGIC OBJECTIVES UNDER CONSIDERATION

Catalyzing infrastructure investment and creating bankable projects Financial engineering, PPP, asset management, Strengthening risk management Regional integration (energy, water resources, transport

facilitation) Strengthening project management

Promoting human development Managing demographic growth

Job creation Urbanization

Universalizing access to quality health services Education & skill development Fighting poverty alleviation & promoting social inclusion:

Livelihood (rural & urban) Gender, equality of opportunity

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CPS 2013-16 : STRATEGIC OBJECTIVES UNDER CONSIDERATION

Supporting/informing key structural reforms Natural resources management (water, land, mineral) Energy security Agricultural productivity & food security Integration & performance of domestic markets Governance reforms

Scaling up and bringing to fruition GoI’s urban agenda – service delivery such as transport, water, etc. Use of country systems for fiduciary controls and safeguards: Scaling up knowledge

Accompanying India’s transition to a MIC Infrastructure regulatory framework, investment climate, domestic market integration,

governance, social/financial/legal inclusion, public finance management, social and environmental safeguards

Leveraging India’s development experience on behalf of other developing countries: India as a funder and the main provider of knowledge and experience within the South-South experience exchange

Managing Finance Constraints 16

THE CPS INSTRUMENTS

Operationalizing DEA’s Finance plus agenda (transformation/innovation/leveraging) Optimizing transformational impact Innovative finance Promoting innovation

In service delivery, project management, accountability mechanisms, financial engineering, contracting

Focus on low income states

Knowledge and technical assistance Regional integration, water resources management, land management,

etc. Scaling up knowledge transfers:

from Bank projects, across states (good practices), from overseas (leveraging the experience of policy makers, practitioners)

Strengthening TA to states: With a focus in low income states (UP, Jharkhand, Chhattisgarh, North East, etc.)

Improving results/outcomes/performance Strengthening readiness filters, e.g. on land acquisition Moving on from supervision to support to implementation (e.g. in

procurement) Building IT-based M&E and project management capacity in the road and

health sectors

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POINTS FOR DISCUSSION

Do CPS themes capture the development priorities of India/your state What according to you are the priorities What are we missing

What role do you see the World Bank Group playing in helping Chhattisgarh meet these challenges? Which sectors – agriculture, transport,

environment, education What form – finance, knowledge, experience

sharing, etc.

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POINTS FOR DISCUSSION

What are the concerns you have regarding implementation of development programs in Chhattisgarh? Governance Equity – gender, access to services Voice Others?

How can the World Bank work with you to help meet the state’s development challenges

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OTHER POINTS YOU MAY WISH TO DISCUSS

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