Internal Security of India: Challenges & Solutions
World Bank Groups and Its Role
Founded in 1944, the World Bank is a financial international organization that offers loans, grants and knowledge transfers to poor countries on the reduction of poverty and the promotion of their development. It is a complex of five organizations; one of them is the IBRD that together with the IDA constitute the World Bank. India has belonged to four of the 5 arms (not ICSID) and it has been getting major assistance in infrastructure, education, health and rural development. World Bank major reports are World Development Report Human Capital Index and Logistics Performance Index. It is of essential concern in the international expansion of the economy, sustainable development, as well as capacity-building in member states.
KEY HIGHLIGHTS FOR RAS MAINS
World Bank Group – Composition
The World Bank Group is a family of five international organizations:
| Institution | Year | Mandate | India’s Membership |
|---|---|---|---|
| IBRD (International Bank for Reconstruction and Development) | 1944 | Loans to middle-income and creditworthy low-income countries | Yes |
| IDA (International Development Association) | 1960 | Concessional loans and grants to poorest countries | Yes |
| IFC (International Finance Corporation) | 1956 | Private sector development and investment | Yes |
| MIGA (Multilateral Investment Guarantee Agency) | 1988 | Investment guarantees against non-commercial risks | Yes |
| ICSID (International Centre for Settlement of Investment Disputes) | 1966 | Arbitration of investment disputes | No |
Note: Only IBRD, IDA, and IFC are UN Specialized Agencies.
Key roles of the World bank
- Funding of Development Projects
- Areas: Education, Health, Agriculture, infrastructure, Energy, Environment.
- The loans are granted on a project basis on a conditional and supervised basis.
- Advisory Services
- Provides technical assistance and technical expertise, policy advice, and institutional assistance.
- Studies and Survey
- Generates data and reports that are known worldwide (e.g. World Development Report).
- Capacity Building
- Advocates administration changes and institution-building.
- Promotion in Private Sector
- With IFC, it supports SMEs and private investment in developing nations.
Major Reports Published by the World Bank
| Report Name | Description |
|---|---|
| World Development Report | Flagship annual publication on global development themes |
| Ease of Doing Business Report | Discontinued in 2021 due to data irregularities |
| Human Capital Index | Measures future productivity based on education and health |
| Global Economic Prospects | Forecasts on global economic trends |
| Remittances & Migration Report | Data on international remittance flows |
| Global Financial Development Report | Financial sector analysis |
| Poverty and Shared Prosperity Report | Trends in poverty reduction and inclusive growth |
| World Governance Indicators | Tracks six dimensions of governance |
| Logistics Performance Index | Assesses trade and transport infrastructure |
| Global Monitoring Report | Reviews progress on SDGs and development targets |
India’s Membership
- India is a member of the founding group of IBRD (1944), IDA (1960) and IFC (1956).
- Does not belong to ICSID because of the fear of sovereignty of organizations in the case of investigating disputes.
Historical Engagement
- The First loan to India: 1949 by World Bank Indian Railways.
- India happens to be one of the biggest borrowers and development partners of the World Bank.
Important Aspects of Collaboration
- Infrastructure (highway, railway networks, city transport)
- Rural development
- Management and water resource irrigation
- Health and education
- Energy, environment
- Protection of social and creation of employment
Major Projects Funded in India
| Project Name | Sector |
|---|---|
| Pradhan Mantri Gram Sadak Yojana (PMGSY) | Rural roads |
| National Ganga River Basin Project | Environment & water |
| Eastern Dedicated Freight Corridor | Railway infrastructure |
| Dam Rehabilitation and Improvement Project (DRIP) | Water management |
| Bihar Kosi Flood Recovery Project | Disaster management |
| Grid-Connected Rooftop Solar Program | Renewable energy |
International Development Association (IDA)
- Makes low interest or interest-free loans and grants available to the poor nations of the planet.
- Gross National Income (GNI) per capita-based eligibility (e.g., the level is $1,315 as the GNI per capita threshold in FY2024).
- Loan Tenure: 25-40 years, and grace period of 10 years.
Important Highlights of RPSC Exams
- India is not a member of ICSID.
- World bank Group = IBRD + IDA + IFC + MIGA + ICSID
- Head office: Washington D.C., USA
- President: Ajay Banga (as of 2023 first Indian to chair the World Bank)
- Bretton Woods Conference (1944)
- Known as: One of the Bretton Woods Twins (along with IMF)
Conclusion
The World Bank has a central role to play in enhancing development of the planet since it deals with the issues of poverty, inclusive growth, system upgrading of infrastructure, and governance enhancement in developing countries. In the case of India, it has helped it develop in various aspects over the years. As the world faces new challenges (such as climate change and pandemics), the World Bank plays a more important role in addressing a sustainable and fair future than ever
RASOnly Interview Guidance Program
Mr. Ashok Jain
Ex-Chief Secretary Govt of Rajasthan
- IAS officer of the 1981 batch, Rajasthan cadre.
- Passionate about mentoring the next generation of RAS officers with real-world insights.
- Got retired in Dec 2017 from the post of Chief Secretary of the state of Rajasthan.
Mr. Guru Charan Rai
Ex-ASP / SP in Jaisalmer
- Guru Charan Rai, IPS (Retd), retired as Inspector General of Police (Security), Rajasthan, Jaipur in 2017.
- Served as ASP and SP in Jaisalmer, Nagaur, Sri Ganganagar, Sawai Madhopur, Dausa, Sikar, and Karauli.
- He also held key positions as DIGP and IGP in the Law and Order division.
Mr. Rakesh Verma
Ex-IAS Officer, B.Tech, MBA, and M.A. (Economics)
- IAS officer of the 1981 batch and retired in Chief Secretary Rank.
- Civil servant of high repute and vast experience.
- Has been teaching UPSC CSE subjects for the last six years.
