Date:19/08/2005 URL: http://www.thehindu.com/2005/08/19/stories/2005081903910600.htm

Andhra Pradesh

World Bank chief denies imposing conditions

Special Correspondent

Wolfowitz impressed by the success of women SHGs, lauds State model

HYDERABAD: The World Bank President, Paul D.Wolfowitz, has denied that conditions are being imposed while extending loans, and asserted: "We are not around to tell countries how to run their business."

Replying to questions at a press conference here on Thursday after interacting with members of women self-help groups at the Jubilee Hall, he said the World Bank wanted to invest in schemes which would help in capacity-building and were self-sustaining in the long run.

"We give resources to invest things that work...that's not imposing conditions," he said.

On the protests from Leftist parties against his visit, he said that nobody could argue about the mission of the World Bank on how to reduce poverty.

There could be some argument as to what the best policy was. After seeing the work of the women self-help groups in the State, the bank had decided to provide "water and fertiliser" to the small plant planted by the United Nations Development Programme to enable it to grow bigger.

The assistance to the tune of $260 million for the SHG movement would be up to 2008.

`Great experience'

Mr. Wolfowitz, who was greatly impressed by the success of the women SHGs in tackling poverty, said that the Andhra Pradesh model could be replicated in other parts of the country and the world.

"To me it is a great learning experience," he said.

Asked about World Bank funding for irrigation projects in the State, he said that rural development was one of its focussed areas and bank officials were discussing it with the State Government and in Delhi.

He, however, added that he was not aware of the specifics.