The contribution of International Bank of Reconstruction and Development to India'a socio-

economic development may be seen in various fields such as

1) Poverty Reduction:- The World Bank has provided financial assistance to India to tackle
poverty.

2)Renewable energy : Fossil fuels have the most debilitating impact on the socio-economic
development. Women are forced to ravel long distances to fetch wood. Emissions caused by these
fuels cause pollution, respiratory problems and thus affect the productivity of the workforce. To
mitigate these socio-economic impacts, the IRBD has supported JLNNSM

3) Sanitation: To promote construction of toilets and its usage , IRBD has extended loan to aid the
government.

However, IRBD role in hampering India's socio-economic development cannot be ignored

1) Conditionalities:- These fund come with conditionalities which may not suit the borrower
country. Many conditionalities were imposed on the Sardar Sarovar Project. As India could not fulfill
them, the funding was withdrawn.

2) Pressure from the Developed nations: the World Bank is under the grip of developed countries.
In 2008, India could not get funding for electricity distribution and transmission in Arunachal Pradesh
as China had objected to it.

3) Displacement of indigenous people : has been due to dams constructed by the funds of World
Banks's IRBD.

4) Preference for private funding : These institutions have preferred private funding to public
funding which has accentuated inequalities in India.

Though World Bank's IRBD have helped in many projects, India needs to be conscious of its
drawbacks.India is pushing for governance reforms in World Bank. Institutions like BRICS banks and
AIIB would also force it to change in order to remain relevant.https://m.youtube.GDP: Gross
Domestic Product (GDP) is the total money value of final goods and services produced in the
economic territories of a country in a given year.
 Total value of goods and services produced in India for 2014-15 is projected to be around 100 lakh
crore Indian rupees or around 2 trillion US dollars at current market prices.

This is the value of Indian GDP when expressed at current market price.

GDP stands for total value of goods and services produced inside the territory of India irrespective
of whom produced it whether by Indians or foreigners.

GNP: Gross National Product (GNP) is the total value of goods and services produced by the
people of a country in a given year. It is not territory specific. If we consider the GNP of India, it can
be seen that GNP is lesser than GDP

Market Intervention Scheme

Market Intervention Scheme (MIS) is a price support mechanism implemented on the request of
State Governments for procurement of perishable and horticultural commodities in the event of a fall
in market prices. The Scheme is implemented when there is at least 10% increase in production or
10% decrease in the ruling rates over the previous normal year.

Market Intervention Scheme works in a similar fashion to Minimum Support Price based
procurement mechanism for food grains, but is an adhoc mechanism.

Proposal of MIS is approved on the specific request of State/Union Territory (UT) Government, if
the State/UT Government is ready to bear 50% loss (25% in case of North-Eastern States), if any,
incurred on its implementation. Further, the extent of total amount of loss shared is restricted to 25%
of the total procurement value which includes cost of the commodity procured plus permitted
overhead expenses.

The Department of Agriculture & Cooperation is implementing the scheme. Under MIS, funds are
not allocated to the States. Instead, central share of losses as per the guidelines of MIS is released to
the State Governments/UTs, for which MIS has been approved, based on specific proposals received
from them.

1.What do you understand by economic austerity? Were austerity measures successful in Europe
and the UK aftermath of 2008 global financial crisis? Also examine if its feasible for countries to still
opt for austerity measures in the present global economic scenario. (200 Words)

2.What were the causes of the July 1997 Asian crisis? What are the lessons of this Crisis that India
should learn? Examine. (200 Words)