Page 194 - DMGT545_INTERNATIONAL_BUSINESS

Unit 9: International Financial Institutions-I

notes
table 9.1: iBrD’s assistance to india—sector-wise
sector 1993 2000
1. Agriculture and Rural Development - 1,895
2. Financial Sector 2,000 780
3. Power 3,500 6,730
4. Mining - 3,058
5. Social Sector - 2,753
Total $5,500 $15,208
Of the total loans given by WB percentage share of India 5.4% 5.2%

Source: World Bank, (www.worldbank.org)
The lending position of various sectors (in million US dollars) approved in the FY 2005-06 are
shown:

table 9.2: World Bank’s assistance in various sectors (in mn. dollars)

sector 2005-06
1. Education 36.00
2. Public Administration & Law 459.10
3. Health & Social Service 607.03
4. Transportation 250
5. Agriculture 633.45
6. Water Sanitation and Field Protection 298.25
7. Industry and Trade 36.00

Source: World Bank, (www.worldbank.org)
It is evident from the above detail that India has been borrowing too much from the World
Bank.
3. Aid India Club or Consortium: In August 1950, Aid India Club was founded by the efforts of
the World Bank with a view to providing financial assistance and foreign currency to India.
Among its members are countries like America, England, Japan, Germany, and Canada.
The club has given substantial amount of loans in the form of foreign currency to India. On
21st June, 1993, India got loans and assistance worth $670 crore from this club. It is now
called India Development Forum. In its first meeting held on 29th July, 1994, 15 private
corporations of India and many multinational corporations were invited. It was decided
in this meeting that India be given loans amounting to $ 600 crore for implementing its
structural adjustment.

4. Mediation between Indo-Pak River Water Dispute: On the matter of sharing of water of
the rivers of Punjab, a serious dispute took place between India and Pakistan. To find a
solution to the problem, World Bank acted as a mediator. As a result, both the countries
were brought to the negotiating table in 1952 and in 1959 the dispute was amicably
settled.
5. Facilities for General Loans: India has obtained from the World Bank, facilities for general
loans. It implies such loans as can be utilized by India as per its own discretion.
6. Advantages from membership of sister institutions of the World Bank: As a member of the
World Bank, India has availed of the membership of its sister institutions.

lovely Professional university 189