GCG
Gascon Consulting Group
The Role of the World Bank
in Indian Agri-Business
Presented by: April Gascon, Sabith Khan, McBride Nkhalamba, and Habib Sangar
WORLD BANK
GOVERNANCE
INDIA’S GROWING
INFLUENCE
COMPLIANCE WITH
LENDING POLICY
IMPLICATIONS FOR
AGRI-BUSINESS
U.S. Influence &
Governance of the WB
World Bank Presidency
U.S treasury Department
U.S State Department
Selection of President, Veto
Power
Appointment of Directors
Formal &
Informal
Influence
World Bank Board of
Directors
Approval of Lending Policy
Policy Based
Lending
Indian Agricultural
Policy
Federal and State Level
Competitiveness,
Market Share
Compliance
U.S Lobby – civil
society, industry,
special interest
groups
Agri-Business Subsector
Contribution to GDP
U.S Congress
Appropriations
Committee
Appropriations to IDA based on
proportional contributions
Formula
Premise and Assertions
 Perceptions 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 Lending
http://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?