The Bank's Context within the Indian Economy
World Bank conditionalities /policy requirements in India have the following economic impacts:
  • Poverty and distribution. Poverty is underestimated presently.
  • Decline in per capita food consumption.
  • Employment elasticities fall. Small scale sector reservation is effectively reduced and there is a rise in unemployment.
  • Inflation held in check by weakening labour.
  • Agriculture, food security and cropping pattern shifts.
  • Fiscal Situation. Cut in direct taxes and customs duties and tightening of the fiscal deficit the revenue deficit targets. So role of government has to be reduced. Public sector support from the budget reduced so role as public sector reduced, has to act as a private sector and that is not feasible. Hence privatization and independently also privatization.
  • Problems of finances of the state governments and the local bodies.
  • Impact on social sectors and deterioration in living conditions of the poor.
  • Industrialization and small scale industries and artisans and small businesses.
  • Shifting pattern of production.
  • International Division of Labour.
  • Impact on loosening of the environmental protection deterioration of the environment and ill effect on the poor.
  • Growing inequity in society. Across nations and within nations and regions.
  • Proliferation of the financial markets and their domination over all else. An instrument for the control over resources.
  • Control over resources passes to the capitalists.
  • Loosening of controls and greater black economy and poorer governance.
Financial Relations
Poverty and the Bank
State Finances
Small Scale Industry

Arvin Kejriwal -Delhi Water Privatization
Amit Bhaduri - Response to the World Bank
Madhura Swaminathan - World Bank and Food Security


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