World Bank endorses Country Partnership Framework for India's transition to high-middle income nation

World Bank board has approved ambitious five-year Country Partnership Framework (CPF) for India that is in line with Government of India’s objectives of high, sustainable and inclusive growth. The framework is aimed at supporting India’s transition to higher middle-income country by addressing some of its key development priorities resource efficient and inclusive growth, job creation and building human capital. The CPF was preceded by systematic country diagnostic (SCD) that offered narrative about India’s progress.

Need

India is well-positioned to become a high middle-income country by 2030 as it has posted incredible growth and development over last several decades. India’s fast-growing economy, global stature and unique experience of lifting highest number of poor out of poverty in past decades has helped it to enter economic transformation from low-middle income to high-middle income country.

CPF for India

CPF will be mainly based on three elements viz Government of India’s development priorities, World Bank’s Systematic Country Diagnostic (SCD) for India, which presents its analysis of key challenges faced by India and lastly, World Bank’s comparative advantage and value proposition to support India
CFP will address key themes including addressing climate change in support of India’s national determined contributions on climate change, gender gap focusing on women’s economic empowerment and impact of technology changes for bringing about economic transformation in India
CPF also incorporates lessons learned from last five years of implementation of Country Partnership Strategy (CPS) FY13-17 which includes scarcity and inefficiency of resources: land, water and air, disparities and divergence in the creation of jobs and inclusion across locations and uneven state capability.

Significance

The framework recognizes that India has gone from low-income country status to low-middle income and now India is entering economic transformation from low-middle income to high-middle income (country). It is expected to bring financial support worth US $25-30 billion from World Bank’s sister agencies such  International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

What is World Bank’s Country Partnership Framework (CPF)?

It is central tool of management and board for reviewing and guiding WBG’s country programs and gauging their effectiveness. It identifies key objectives and development results through which WBG intends to support member country in its efforts to end extreme poverty and boost shared prosperity in sustainable manner. It takes into consideration member country’s vision of its development goals, which are laid out in poverty focused national development strategy. The WBG and member country at first draw upon Systematic Country Diagnostic (SCD) to develop CPF objectives together. Then CPF outlines selective and flexible program that will help member country achieve CPF objectives.

Month: Current Affairs - September, 2018