The World Bank Group extended loans, credits, grants, equity investment, and guarantees totaling nearly $ 6.9 billion to South Asia in fiscal year 2007. This is an increase of $ 2.3 billion over the previous year, demonstrating the institution s continuing role in fighting poverty as South Asian countries look for ways to tackle their social challenges even while most of their economies grew aggressively a Bank report said. It said that the eight countries of South Asia were using World Bank Group support in more than 78 projects designed to overcome poverty and enhance growth for example, by improving education and health services, promoting private sector development, building infrastructure, and strengthening governance and institutions. Contributing to this increase was: S$ 1.6 billion from the International Bank for Reconstruction and Development (IBRD), which provides financing, risk management products, and other financial services, the report added; $ 4.03 billion from the International Development Association (IDA), which provides interest-free loans and grants; $ 1.18 billion from the International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees and advisory services to private-sector business in developing countries; and $ 76 million from the Multilateral Investment Guarantee Investment Agency (MIGA), the group s political risk insurance agency. Pakistan was the Bank s seventh largest borrower with US$ 985 million in loans and credits. Regarding the role of IDA and IBRD in South Asia, the report said that South Asia is home to the largest number of people in the world living below one dollar a day, so the agenda for poverty alleviation in the region remains very large. The lending numbers from the IDA and IBRD in Fiscal Year 2007 are in line with the scaling up strategy we developed for the region three years ago. Globally, the World Bank Group committed US $ 34.3 billion in fiscal year 2007, up $ 2.7 billion (7.8 percent) from fiscal year 2006. The report said India was by far the largest borrower from IBRD and IDA, accounting for $ 3.75 billion, or 15 percent of total lending from these two institutions. The World Bank s program in India focuses on providing basic services such as access to clean water and education, improving infrastructure for rural areas, and employment. The increase also reflects $ 700 million in lending to the health sector to India which was carried over from the previous year. Pakistan was the Bank s seventh largest borrower with US$ 985 million in loans and credits. Nearly 60 percent of the World Bank Group s commitments to South Asia came from IDA, and more than two-thirds of this lending financed projects in the areas of rural development and human development such as health, education, nutrition, and HIV/AIDS. IDA leverages government programs, enabling them to innovate and scale up. Many of the Bank s projects in the last fiscal year supported existing programs that are delivering results. For instance, in Afghanistan the Bank approved a $ 120 million IDA grant for the Second National Solidarity Programme, a community-led reconstruction and rural infrastructure initiative that has reached about 14 million rural people-74 percent of Afghanistan s rural population-since its inception in 2002.
