DFID pledges Rs 250 cr to Andhra for poverty removal

K V V V Charya

In a bid to provide financial support to Andhra Pradesh (AP) government, in furtherance of the reforms initiated since 1999, the Department of International Development (DFID) of the United Kingdom (UK) government has committed to spend about $55 million (Rs 250 crore) along with the World Bank on a four-year programme targeting structural adjustment for poverty elimination in the state.

“Approval of each year’s disbursement will be based on an assessment of fulfillment of milestones by AP government”, stated the DFID’s state strategy paper released in May 2001. The financial support may even increase in the areas of health and education depending on the advancement of the reforms, the paper added.

DFID assistance is flowing into the state government ever since reforms process began in the state during 1998 under the leadership of chief minister N Chandrababu Naidu. Initially the international funding agency supported power reforms initiated in the state and in education sectors, both together accounted for 80 per cent of the total spending. Incidentally, AP is the only state in south India receiving financial support from DFID, while one among the four states in the country. The UK government promoted international funding agency has a primary motive to reduce the poverty by 2015. The establishment of a state office at Hyderabad in May 2000 had enhanced the reach between DFID team and the government decision makers. With the increased fund portfolio, the agency plans to review the composition of the AP team, the strategy paper elaborated. DFID works in the state cover a wide range of projects––primary education, energy efficiency, health, child labour, public sector reform, urban services and rural development.

DFID is now looking to achieve a greater impact on poverty and influence on development in AP through: adopting a more integrated approach; backing action with increased resources; and working in areas in which government of AP requests assistance, the strategy paper on the state said.

The paper opined that Andhra Pradesh has potential to attract higher levels of private investment into the state considering its vast natural and human resources and geographical advantage, it received 8 per cent of the total investments received by the country over the last decade. AP had achieved the distinction of the fourth largest destination of private investment in the country.

Another interesting point the strategy paper has highlighted is about the “mission” approach of the state government for implementing the development process. During 2000, the state government had set up missions for water conservation, employment generation, women’s empowerment, literacy and poverty eradication.

As part of exercise envisaged in Vision 2020 document, the state government had constituted a number of Cabinet sub-committees and task forces, off course in consultation with World Bank, covering rural poverty alleviation, urban poverty alleviation, ‘smart’ governance etc., which marked significant advancement in drawing inferences in their respective areas.

The greatest challenge the state government is now facing is to translate these reports and analysis in to physical implementation, the DFID strategy paper said.