The Role of the World Bank in Indian Agri-Business

Presented by: April Gascon, Sabith Khan, McBride Nkhalamba, and Habib Sangar

GCGGascon Consulting Group

WORLD BANK GOVERNANCE

INDIA’S GROWING INFLUENCE

COMPLIANCE WITH LENDING POLICY

IMPLICATIONS FOR AGRI-BUSINESS

U.S. Influence & Governance of the WB

U.S treasury Department U.S State Department Selection of President, Veto

Power

World Bank Presidency

Appointment of Directors

World Bank Board of Directors

Approval of Lending Policy

U.S Congress Appropriations

Committee Appropriations to IDA based on

proportional contributions Formula

Indian Agricultural Policy

Federal and State Level

Agri-Business Sub-sector

Contribution to GDP

U.S Lobby – civil society, industry, special interest

groups

Formal & Informal Influence

Policy Based Lending

Competitiveness, Market Share

Compliance

Premise and AssertionsPerceptions that U.S. influence is exclusively self-

interested and that the Bank is a foreign policy instrument for the U.S

Share of Global GDP is an informal voting weight in the World Bank

Perception s that World Bank lending policies are unilateral, and selectively appropriate

India is a growing Global Economic Power

Trend Hypothesis for World Bank Compliance

India’s GDP Trends

1.3 billion the world's largest democracy

second most populous nation, after China.

5.7 percent annually during the 1990s

6.4 percent annually during 2000-08

second fastest growing major economy in the world

Projections for the Future

http://www.clipsyndicate.com/video/playlist/1778/1697571?cpt=8&wpid=7072

Bank Lendinghttp://www.fin.gc.ca/bretwood/bretwd09_1-eng.asp

Agriculture Marketing in India

Background; Challenges; Future prospects

Future Trading

Policy Framework

Growth Trend Towards Agricultural Marketing

Definition : The Indian council of Agricultural Research defined involvement of three important functions, namely (a) assembling (concentration) (b) preparation for consumption (processing) and (c) distribution.

1. To enable the primary producers to get the best possible returns,

2. To provide facilities for lifting all produce, the farmers are willing, to sell at an incentive price,

3. To reduce the price difference between the primary producer and ultimate consumer, and

( Source : http://www.world-agriculture.com/agricultural_marketing/agricultural-marketing.php)

Results– Agricultural policy in India

- Of the six states, only one state complied with the World Bank policies proposed under the……….

  The Bank’s 2008 report,11 India: Taking Agriculture to the Market, provided much of the insight and the analytical framework for new marketing regulations.

Main Benefits of Future Trading

Manage price fluctuations

Risk Management

Access to new markets

Possible Policy Options

Remain the same

Return to earlier practices Expand list of agriculture products

Final Recommendation

Reforms in internal governance, decentralization, human resources, transparency and voice.

The World Bank should promote future trading through their policies and lending practices to encourage agricultural exports

Thank your for your attention.

Questions?