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World Bank funding to India to begin soon: Sinha

The World Bank is likely to restore the much-needed funding for India's infrastructural projects which was cut off after its May 1998 nuclear tests.

Finance Minister Yashwant Sinha gave an indication to this effect here on Monday after his meeting with World Bank president James Wolfensohn.

He said the World Bank chief had assured that the projects, which had been pending for almost two years as a result of the nuclear-related economic sanctions and the policy of the G-8 industrial nations, would now be brought before the bank's board for consideration.

''I am confident that this process will begin very soon and that it will be possible for us to get the bank board's approval for these pending projects,'' he added.

He, however, said he did not raise the issue of lifting of sanctions during his discussions with the US officials.

In reply to a question, he said the World Bank's decision to postpone the consideration of these projects was in itself unfortunate. It was the reflection of the geo-political considerations globally than the policy that the bank followed, he added.

''Now I think the member countries of the World Bank are shifting from the position they had taken in the past that only projects that were directly related to basic human needs would be allowed to go through. Hopefully, now in the board it will be possible to get the other projects through as well," he added.

Sinha said that India had explained to the World Bank and its president the difficulty in making an ''artificial distinction'' between basic human needs-projects and others in a developing country.

If employment was a basic human need then roads and electricity projects that generate such a potential too should come in the definition of basic human needs, he said.

''We are happy that finally our point of view is being seen and understood and that is the reason that these issues are now being brought back before the World Bank board,'' he added.

India on an average gets loans up to $ 2 billion a year from the World Bank for its development projects but its funding was cut to half after the nuclear tests.

Sinha, who led the Indian delegation to the spring meetings of the World Bank and the International Monetary Fund, or IMF, was happy with the statements the two institutions had issued at the end of their deliberations yesterday.

He appeared particularly happy that the IMF had taken note of the higher growth path that India acquired recently though he said he did not crave for certificates from the lending institution.

According to the IMF, the growth in 1999 was 6.57 per cent and is expected be higher next year.

He said the IMF's acting managing director complimented him for the performance of India's economy and progress of its reform process, but he also voiced concern at the fiscal deficit.

India was conscious of the phenomenon and was taking steps to control it, Sinha added.

In reply to another question, Sinha said he had full sympathy with the cause of removing poverty highlighted by the demonstrators outside the World Bank-IMF complex but disagreed with their methods.

UNI

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