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UK-IBRD scheme to erase poverty in Andhra Pradesh

M. Somasekhar

HYDERABAD, July 1

THE United Kingdom's Department for International Development (DFID) has proposed to closely work with the World Bank to support a four-year programme of structural adjustment for poverty elimination in Andhra Pradesh.

It has also decided to continue its association with the Bank's economic reform and power sector restructuring programmes to assist the State in refocusing its spending priorities.

In specific terms the role it would play is to help strengthen AP's capacity to manage the privatisation programme effectively, strengthen revenue administration and increase the tax take through the introduction of value-added tax (VAT).

Underlining these measures, a DFID Strategy Paper for AP states that it will seek to further its partnership in the State's development's path. The DFID will also forge relationships with civil society, private sector and external support agencies which are active in the State in this journey.

The DFID currently is involved in several projects related to water and sanitation, education and health both in terms of State specific interventions and through national initiatives. It has been active in projects directed at tackling the issue of chil d labour.

In a significant decision, the DFID recently agreed to support the AP Government in establishing a Centre for Good Governance in Hyderabad to lead and co-ordinate the new governance reform programme, as envisaged in the Vision 2020 document of the State.

Referring to the structural adjustment programme for poverty elimination, the `Strategy Paper' indicated an increased investment in strategic areas identified by the State Government and falling within the priorities of the DFID. The approval of each yea r's disbursement will be based on an assessment of fulfillment of milestones by the State Government.

Over the next three years the DFID will pursue a five-pronged strategy to help the State reduce poverty. The strategy includes improved human development, enhanced livelihood and security, governance reforms and fiscal stabilisation, greater empowerment of poor women and disadvantaged groups and impact assessment for decision making.

The broad sectors of education, health, water conservation and sanitation, water resource management and urban and rural livelihood issues would form the contours for the increased partnership between DFID and the AP Government.

Another important area where the two want to focus is on improving the assessment of impact of development programmes. The need to refine existing monitoring systems, improving data compatibility with the analytical tools in the State would be explored.