In news– Recently, the World Bank has approved a $250 million loan to support the Government of India’s road safety programme for seven States.
About the programme-
- The programme seeks to help realise the vision ‘Zero road fatalities on Indian roads.’
- The scheme will incentivise State governments to drive road safety interventions at the grassroots level with the main objective of curbing road accidents and achieving a reduction in fatalities.
- Currently it is being implemented in Andhra Pradesh, Gujarat, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal.
- The $250 million variable spread loan from the International Bank for Reconstruction and Development (IBRD) has a maturity of 18 years including a grace period of 5.5 years.
- Under this initiative, a single accident reporting number will be set up to better manage post-crash events.
- The project will also establish a national harmonised crash database system in order to analyse accidents and use that to construct better and safer roads.
- It will also fund network expansion of basic and advanced life support ambulances and training of first responder caregivers to road crash victims on the spot.
- It will also provide incentives to the States to leverage private funding through Public Private Partnership (PPP) concessions and pilot initiatives.
Road crashes in India-
- According to a World Bank study, road crashes are estimated to cost the Indian economy between 5% to 7% of GDP a year.
- Official government data show that each year road accidents in India kill about 1,50,000 people and injure another 4,50,000.
- More than half of the victims are pedestrians, cyclists, or motorcyclists and almost 84% of all fatalities are among road users between the working ages of 18-60 years.
- Poor households that account for over 70% of crash victims bear a higher proportion of the socio-economic burden of road crashes due to loss of income, high medical expenses and limited access to social safety nets.
About World Bank-
- The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries.
- Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions.
- Originally, its loans helped rebuild countries devastated by World War II.
- Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.
- Mission:
- To end extreme poverty: By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.
- To promote shared prosperity:By increasing the incomes of the poorest 40 percent of people in every country.
- The World Bank is like a cooperative, made up of 189 member countries.
- These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank.
- Generally, the governors are member countries’ ministers of finance or ministers of development.
- The World Bank Group is a unique global partnership which consists of five development institutions.
World Bank Group-
- International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants.
- International Development Association (IDA) provides low- or no-interest loans to low-income countries.
- The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments.
- The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as war.
- The International Centre for the Settlement of Investment Disputes (ICSID) settles investment-disputes between investors and countries. India is not a member of ICSID.
Source: The Hindu
