WB, IDA lending to India falls under US pressure

Lending from the two international agencies put together showed a decline of a whopping $ 1,087 million between 1998 and 1999. The two are associate institutions.

In fiscal 1999, the bank and IDA commitments to India were for a total $ 1,054 million even after the US chose to exempt "basic human needs" from its embargo on the two international lending agencies. By contrast, in 1998, World Bank lending to India was $ 1,068 million and IDA lending $ 1,073 million, a total of $ 2,141 million. The normal level of lending from the bank and IDA hasbeen around $ 2,000 million a year for quite some time.

Under its charter, the bank is an apolitical body "deciding on projects without political influence brought to bear by member-states". However, the figures show the gap between theory and reality.

For South Asia, including India, Pakistan, Bangladesh and Sri Lanka, a total of $ 2.56 billion in new bank and IDA commitments was approved in 1999 for 18 projects. Of this, $ 750 million came from the bank.

The impact of the western sanctions following the nuclear tests by India and Pakistan was also evident from the fact that combined lending to the South Asian region in 1999 was $ 2.56 billion as against $ 3.86 billion in 1998, showing a decline of $ 1.3 billion to the region.

For member countries as a whole, the figures put the World Bank and IDA lending commitments during fiscal 1999 at $ 29 billion, with disbursements at $ 24 billion. The figure for 1998 was $ 28.6 billion against $ 19.1 billion in fiscal 1997.

The high level of commitments wasdue in part to the bank’s continued support to east Asia. Lending to Latin America and the Caribbean region also increased, partly in response to ripple effects from the east Asian currency crisis and hurricane mitch.