The World Bank and the Rural Poor

The basic objective of the paper is to trace the relationship between Bank's lending and poverty reduction level in India. The study covers the period of 47 years (i.e., 1947-1994) and adopts the methodology of Ex-Post evaluation. The Bank has played a very significant role in Indian Economy since the down of her Independence in. India always ranks among the top 3 largest borrowers of the World Bank's total lending. Bank's lending accounts for about more than 60% in India's foreign aid utilization. Since the very beginning Indian agriculture shares about 15% of total World Bank (IBRD & IDA) lending to agriculture in the developing countries. For Indian agriculture, the Bank's lending has come in the form of soft aid (i.e., IDA credits). Bank's lending shares 40% to 50% of the Total cost of the Bank's projects. Empirically its lending has been effective in the field of investigation, rural credit and extension services. Most of the Bank's lending has been directed for the benefits of small farmers in India and the Bank claim to be the major partners in India's Green Revolution. Bank still concentrates on poverty sector. However, over the years, the marginal decline in poverty programmes has taken place but not as a policy option. However, the Bank should resists its ideological presumes to remain as development agency. The Bank should also increase its recurrent cost expenditure for the maintenance of the projects, which is a major problem in Indian economy