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World Bank official talks tough in UP

Sharat Pradhan in Lucknow

World Bank vice-president Mieko Nishimizu has blamed Uttar Pradesh's backwardness on political instability and frequent bureaucratic reshuffles.

Nishimizu, here to assess the scene vis-a-vis the bank's recently approved Rs 2200-crore loan to the state, did some hardtalk at a meeting with Chief Minister Ram Prakash Gupta and other top officials. She felt that there was scope for improvement in the country's most populous state, "provided there were stable governments and political parties looked at the larger interest of masses".

On allegations of large-scale pilferage of funds, she warned the government to ensure proper utilisation.

She did not mince words in telling Gupta that it was time the government realised the need for stability at the bureaucratic level. "Frequent transfers only hamper progress of projects, so the government must change its attitude," she told Gupta, adding that "continuity of those handling various World Bank-assisted projects must be maintained."

She also made it clear that the diversion of funds from one scheme to another must end. Expressing concern over the tendency of successive political masters to divert funds "only to suit their political whims", she said, "this has caused more harm than good to the state's development."

She added, "We are willing to offer more assistance provided we see results."

She went on to emphasise timely completion of projects undertaken with the bank's assistance. Even as she commended the initiation of reforms in the state's power sector, she did not seem convinced about the shape of things to come.

She declared that the World Bank would keep an eye on progress of all the projects. Even global contracts to be awarded, either for purchase of equipment or for undertaking major projects in the power sector, will be overviewed by bank officials.

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