India : Sustaining Reform, Reducing Poverty

World Bank

India : Sustaining Reform, Reducing Poverty

Autores

World Bank

Editor

Washington, DC

Descripción

The report analyzes India's continued good progress in increasing incomes, and improving living standards over the past decade, which after the setback associated with the 1991 balance of payments crisis, economic growth picked up, income poverty continued to decline, and many social indicators, in particular literacy, continued to improve. Likewise, there has been an opening to private activity, trade policy and the exchange rate regime have been further liberalized, and capital markets have been reformed, leading to an improved investment climate. Nonetheless, development progress has been steady, but uneven, while in addition, the recent growth deceleration was accompanied by a slowdown in investment, especially in the private sector. The fiscal position of the general government has now also deteriorated, with a rising budget deficit, the result of a significant increase in government consumption, and continued low revenue mobilization. But at the same time, prudent monetary policy has helped contain inflation, and strengthen the balance of payments. Based on this analysis, fiscal reforms are needed in taxation, financial, social, as well as for fiscal management. The report also reviews the delivery of public services, showing the need to access effective social safety nets, i.e., social services that require increasing the level, but more importantly the quality of public expenditures in these areas. This in turn requires improving the governance and productivity of India's civil service, and the pressing problem of affordability. An effective program of civil service reform should include measures to achieve the following three objectives: improve access to information; strengthen accountability; and, reduce political interference. Of special concern, are the weaknesses in the service delivery of social sectors: education, health and social safety nets, and, it has been argued that decentralization, and local empowerment will ultimately improve the quality of service delivery at the village level. To this end, the report suggests improving the investment climate, with a special look at infrastructure development, while promoting rapid agricultural, and rural growth given its importance in the socioeconomic, and political fabric of India, through productivity-enhancing investments. Continued progress on poverty reduction will require a major push to reinvigorate the reform agenda.

Palabras clave

ADVERSE CONSEQUENCES, AGRICULTURE, BALANCE OF PAYMENTS, BORROWING, BUDGET DEFICIT, BUDGET DEFICITS, BUDGET MANAGEMENT, CAPITAL FORMATION, CAPITAL MARKETS, CDS, CENTRAL GOVERNMENT, CIVIL SERVICE, CORRUPTION, CURRENT PRICES, DEBT, DEBT SERVICE, DECENTRALIZATION, ECONOMIC COOPERATION, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ELASTICITY, ELECTRICITY, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORTS, FINANCIAL RESTRUCTURING, FINANCIAL SECTOR, FINANCIAL SYSTEM, FISCAL, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL MANAGEMENT, FISCAL POLICY, FISCAL REFORM, FISCAL REFORMS, FISCAL SITUATION, FISCAL STANCE, FISCAL SUSTAINABILITY, FISCAL YEAR, FOREIGN DIRECT INVESTMENT, FREE TRADE, GDP, GOVERNMENT CONSUMPTION, GOVERNMENT DEBT, GOVERNMENT SUBSIDIES, GROSS DOMESTIC PRODUCT, GROWTH RATE, HEALTH SERVICES, HEALTH SPENDING, HOUSING, HUMAN DEVELOPMENT, IMPORTS, INFLATION, INSURANCE, INTEREST RATES, INVESTMENT CLIMATE, LIVING STANDARDS, MARKET DISTORTIONS, MONETARY POLICY, NATIONAL INCOME, OIL, PENSIONS, PER CAPITA INCOME, PER CAPITA INCOMES, PRIVATE SECTOR, PUBLIC AFFAIRS, PUBLIC DEBT, PUBLIC ENTERPRISES, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC RESOURCES, PUBLIC SAVINGS, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC WORKS, RESERVE BANK OF INDIA, REVENUE MOBILIZATION, ROADS, SAFETY NETS, SAVINGS, SOCIAL SAFETY, SOCIAL SAFETY NETS, STATE GOVERNMENT, STATE INSTITUTIONS, SUBSIDIARY, TAX, TAX ADMINISTRATION, TAX RATES, TAX REFORM, TAX REVENUES, TOTAL FACTOR PRODUCTIVITY, TRADE POLICIES, TRADE REFORMS, UNEMPLOYMENT, UNEMPLOYMENT RATES, URBAN DEVELOPMENT, UTILITIES, VALUE ADDED, WAGES, WHOLESALE PRICE INDEX, WORLD TRADE ORGANIZATION, WTO REFORM POLICY, REFORM IMPLEMENTATION, POVERTY REDUCTION, GROWTH PATTERNS, BALANCE OF PAYMENTS DEFICITS, SOCIAL INDICATORS, PRIVATE SECTOR PARTICIPATION, MARKET LIBERALIZATION, TRADE POLICY REFORM, CAPITAL MARKETS, EXCHANGE MARKET DEVELOPMENTS, INVESTMENT ENVIRONMENT, FISCAL ADMINISTRATION, FISCAL CONSTRAINTS, BUDGET DEFICITS, MONETARY POLICY, PRUDENTIAL REGULATIONS, FISCAL REFORMS, TAX REFORMS, FINANCIAL SECTOR REFORM, SOCIAL REFORM, CIVIL SERVICE REFORMS, FISCAL MANAGEMENT, PUBLIC SERVICE DELIVERY, SOCIAL SAFETY NETS, EDUCATION DELIVERY, HEALTH CARE DELIVERY, DECENTRALIZATION, INFRASTRUCTURE DEVELOPMENT, AGRICULTURAL DEVELOPMENT