Document of The World Bank Report No: ICR2107 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-77960) ON A LOAN IN THE AMOUNT OF USD 107 MILLION TO THE REPUBLIC OF INDIA FOR A STATISTICAL STRENGTHENING LOAN January 31, 2012 Poverty Reduction and Economic Management Sector Unit Development Economics Data Group India Country Management Unit South Asia Region CURRENCY EQUIVALENTS (As of January 30, 2012) Currency Unit: Indian Rupee Rs. 49.80 = US$1.00 ADG Additional Director General ISS Indian Statistical System CAAA Controller of Aid, Accounts and Audit ISSP India Statistical Strengthening Project CAP Coordination and Publications Division IT/ICT Information Technology / Information and Communication CAS Country Strategy Technology CCEA Cabinet Committee on Economic Affairs LOP Letter of Participation CFAA Country Financial Accountability Assessment MDGs Millennium Development Goals CGA Controller General of Accounts MOF Ministry of Finance COCSSO Conference of Central and State Statistical Organizations MOSPI Ministry of Statistics and Programme Implementation CPIA Country Policy and Institutional Assessment MoU Memorandum of Understanding CPI-IW Consumer Price Index for Industrial Workers MPLADS Member of Parliament Local Area Development Scheme CSI Chief Statistician of India NASA National Academy of Statistical Administration CSO Central Statistical Office/Organization NLTA Non-Lending Technical Assistance CSS Centrally Sponsored Scheme NSC National Statistical Commission DDG Deputy Director General NSSO National Sample Survey Office/Organization DES Directorate of Economics and Statistics NSSP National Strategic Statistical Plan DG Director General PCN Project Concept Note DQAF Data Quality Assessment Framework PFM Public Financial Management DSO District Statistical Office PPP Purchasing Power Parity EFC Expenditure Finance Committee PRI Panchayat Raj Institutions FDI Foreign Direct Investment PSG Project Support Group FM Financial Management RBI Reserve Bank of India FRBM Fiscal Responsibility and Budget Management SDDS Special Data Dissemination Standard GDP Gross Domestic Product SME Small and Medium Enterprises GDDS General Data Dissemination System SSB State Statistical Bureau GNP Gross National Product SSD Social Statistics Division GoI Government of India SSL Statistical Strengthening Loan GSDP Gross State Domestic Product SSS State Statistical Systems IBRD International Bank for Reconstruction and Development SSSP State Strategic Statistical Plan ICR Implementation Completion Report SWAp Sector Wide Approach IDA International Development Association STATCAP Multi-Country Statistical Capacity Building Program IFC International Finance Corporation TA Technical Assistance IFMIS Integrated Financial Management Information System TFSCB Trust Fund for Statistical Capacity Building IMF International Monetary Fund UT Union Territory Isabel Guerrero, SARVP Vice President: N. Roberto Zagha, SACIN Country Director: Tony Verheijen, SASGP; Grant Cameron, DECDG Sector Manager: Farah Zahir, SASGP; Graham Eele, DECDG Task Team Leaders: ICR Team Leaders:Theo Thomas, EASPR; Svetlana Budagovskaya, ECSPR ICR Team Members: Oleksiy Balabushko, ECSPR; Tina George, EASPR INDIA STATISTICAL STRENGTHENING LOAN CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Program Performance in ISRs H. Restructuring 1. Program Context, Development Objectives and Design ................................................ 1 2. Key Factors Affecting Implementation and Outcomes .................................................. 7 3. Assessment of Outcomes .............................................................................................. 12 4. Assessment of Risk to Development Outcome ............................................................. 16 5. Assessment of Bank and Borrower Performance ......................................................... 17 6. Lessons Learned............................................................................................................ 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners............... 20 Annex 1 Bank Lending and Implementation Support/Supervision Processes.................. 22 Annex 2. Development Outcome Indicators ..................................................................... 23 Annex 3. Centrally Sponsored Schemes ........................................................................... 34 Annex 4. Stakeholder Workshop Report and Results ....................................................... 35 Annex 5. Summary of Borrower's ICR and Comments on Draft ICR ............................. 36 Annex 6. Comments of Cofinanciers and Other Partners/Stakeholders ........................... 50 Annex 7. List of Supporting Documents .......................................................................... 51 MAP .................................................................................................................................. 52 A. Basic Information India First Statistical Country: India Program Name: Strengthening Project Program ID: P108489 L/C/TF Number(s): IBRD-77960 ICR Date: 01/31/2012 ICR Type: Core ICR GOVERNMENT OF Lending Instrument: DPL Borrower: INDIA Original Total USD 107.00M Disbursed Amount: USD 107.00M Commitment: Revised Amount: USD 107.00M Implementing Agencies: Ministry of Statistics and Program Implementation Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 11/01/2007 Effectiveness: 12/23/2009 Appraisal: 04/09/2008 Restructuring(s): Approval: 06/01/2010 Mid-term Review: Closing: 07/30/2011 07/30/2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem No Quality at Entry None Program at any time (QEA): (Yes/No): Problem Program at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 78 78 Sub-national government administration 22 22 Theme Code (as % of total Bank financing) Economic statistics, modeling and forecasting 100 100 E. Bank Staff Positions At ICR At Approval Vice President: Isabel M. Guerrero Isabel M. Guerrero Country Director: N. Roberto Zagha N. Roberto Zagha Sector Manager: Antonius Verheijen Miria A. Pigato Program Team Leader: Farah Zahir Farah Zahir ICR Team Leader: Theo David Thomas ICR Primary Author: Theo David Thomas Svetlana Budagovskaya Oleksiy Balabushko Tina George F. Results Framework Analysis Program Development Objectives (from Project Appraisal Document) The objective of the Statistical Strengthening Loan is to support a national policy of GoI to reform the institutional structure and to improve the operational efficiency of the state statistical systems. This loan will contribute to the implementation of CAS outcome I, i.e., achieving rapid inclusive growth. The loan will help to improve quality and coverage of official statistics originating at the state level. This will help to improve monitoring and evaluation at the state level. Revised Program Development Objectives (if any, as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Strengthening the institutions of leadership and coordination of the National Indicator 1 : Statistical System Timetable to review Timetable agreed and update NSSP to review, update agreed, revised NSSP; Rules target early 2012; NSC on April 30, 2008 framed under the Draft rules prepared endorsed NSSP; Value Collection of Collection of Collection of Statistics (quantitative or Statistics Act 2008 Statistics Act, Act 2008 enacted; ISSP Qualitative) prepared;HLSC 2008; HLSSC, approved as CSS under and COCSSO COCSSO met 11th 5Yr Plan. review ISSP several times, implementation, progress report disseminate report. target date moved Mar'12. Date achieved 04/30/2010 12/31/2010 07/30/2011 Comments (incl. % For details, please refer to Annex 2, Development Outcome Indicators. achievement) Improving and increasing the support provided by the Central Government and Indicator 2 : the Ministry of Statistics and Program Implementation to the statistical systems of State/UTs A further two Eight manuals for key 11 manuals were manuals statistical activities are finalized by close published, five in published; Insttl of project (13 by Value draft; PSG capacity to support Nov. 2011), posted (quantitative or strengthened; 10% ISSP implementation on MOSPI website; Qualitative) budget transfer to established; ISSP info Progress reported states; ISSP disseminated on regularly on progress report on MOSPI website. MOSPI website. MOSPI website. Date achieved 04/30/2010 12/31/2010 07/30/2011 Comments (incl. % For details, please refer to Annex 2, Development Outcome Indicators. achievement) Strengthening the capacity and performance of the statistical systems in a Indicator 3 : majority of States/UTs in India Value Seven states have Seven states have 9 states have (quantitative or signed Letters of prepared SSSPs; prepared SSSPs; 3 Qualitative) Participation to At least three have States have signed participate in ISSP. signed MoUs with MOUs with MOSPI; HLSSC MOSPI; HLSC in in place in all place in 31 states, participating states unclear whether and have met at they have met in least twice. all participating Stats at least twice. Date achieved 04/30/2010 12/31/2010 07/30/2011 Comments (incl. % For details, please refer to Annex 2, Development Outcome Indicators. achievement) Improving the coverage, quality, timeliness and credibility of statistics Indicator 4 : generated by States and UTs At least 3 states 7 states have identify actions, identified actions strategies to and strategies to improve quality, improve the quality plans set in MoU; of key statistics, for Assessment report on Value Targets agreed for rest of states action statistical capacities and (quantitative or key statistics in 6 plans to be needs of States/UTs Qualitative) more states, set in included in SSSPs; published. SSSPs. At least In less than 1/2 1/2 states States statistics disseminating disseminated statistics through through websites web, e-media. and e-media. Date achieved 04/30/2010 12/31/2010 07/30/2011 Comments (incl. % For details, please refer to Annex 2, Development Outcome Indicators. achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years There were no intermediate outcome indicators in GoI Program Matrix for Indicator 1 : Strengthening of State Statistical System. Program Matrix indicates medium term results are expected between 2011-2015. Value (quantitative or Qualitative) Date achieved Comments (incl. % achievement) G. Ratings of Program Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) Moderately Moderately 1 06/06/2011 106.73 Unsatisfactory Unsatisfactory 2 08/17/2011 Moderately Satisfactory Satisfactory 106.73 H. Restructuring (if any) Not Applicable 1. Program Context, Development Objectives and Design 1.1 Context at Appraisal 1. India’s macroeconomic policy framework has been adequate to respond to the global financial crisis and set the stage for a return to high growth rates. The fiscal policy stance was loosened by 3.4 percent of GDP through tax reductions and expenditure increases in FY2008/09, with further expansion witnessed in 2009/10. Strengthened government demand supported GDP growth in the second half of FY2008/09, when private demand slumped. However, inflation rates rose sharply, with both the Wholesale Price Index (WPI) and Consumer Price Index moving above 10 percent, and monetary policy tightening started in October 2009 with the return to higher prudential norms. The central government budget for FY2010/11 also signaled a phased return to fiscal prudence with a significant reduction in the fiscal deficit target. 2. Over the medium term, a fiscal consolidation path has been adopted based on the recommendations of the 13th Finance Commission (2010-2015). This envisaged bringing down the fiscal deficit to 3 percent of GDP by 2013/14 and adopting an explicit ceiling for the debt-to- GDP ratio of 68 percent by 2014-15, from the current 76 percent. Both World Bank and IMF assessments of 2010 concluded that the macroeconomic framework was appropriate. 3. Historically, India has been a pioneer in the collection and use of statistics for national development. India has one of the largest and most extensive statistics systems in the world with the capability of collecting data from a large diversified and decentralized economy. The first decades after Independence brought significant development of the Indian Statistical System (ISS) and related research institutions. The Indian Statistical Institute became a pre-eminent research and training institution under the leadership of the late Professor P. C. Mahalanobis, an internationally renowned statistician and scholar. 4. Post liberalization of the economy in 1991, there was a shift from a centralized planning model to a more liberal and decentralized model of development with greater private sector involvement. Decentralization of governance was also initiated through amendments to the Constitution. The 73rd Amendment to the Constitution seeks to endow the Panchayats with such power and authority as may be required to enable them to function as genuine institutions of local self�government. As Panchayati Raj is included in the State list of the Seventh Schedule of the Constitution, the States are responsible for devolving powers and authority to the Panchayats as envisaged under Article 243G and the Eleventh Schedule of the Constitution. This has created a three tiered decentralization with the following: – Center – State – Panchayat. 5. These changes and reforms required enhanced statistical data to support effective policy and decision making at all levels. Demand for statistical data in research, analysis, policy and decision making has grown significantly. However, the two main sources of statistical data required modernization to keep up with developments over last decades. First, the system of statutory administrative returns and administrative records has been seriously weakened. Second, resource and technical limitations in respect to census and survey-based data collection have emerged, particularly limitations affecting timeliness, processing and disseminating the results of surveys, and the disaggregation of survey data to sub-state levels. Consequently the ISS has not been able to keep pace with demands for statistical data in terms of timeliness, reliability, adequacy and credibility in public perception. 6. The Government of India (GoI) recognized these challenges and initiated actions to address them. In response to the above mentioned problems, in 2000 the GoI established a 1 National Statistical Commission (NSC), chaired by Dr. C. Rangarajan, to examine the statistical system in India comprehensively and to make recommendations on how it could be improved. This was the first Commission to be established to examine the system in the 50 years since Independence. Following the publication of the Commission‘s report in 2001, the GoI initiated a statistical strengthening program to implement the Commission‘s recommendations and to establish a well-coordinated statistical system that would meet the needs of the country in the twenty-first century. After several years of delay the Government revived the statistical system reform effort and started to act on the Commission‘s recommendations. 7. There was increasing recognition in Government, at all levels, that a more responsive and transparent statistical system is an important foundation for decision making and thus further fiscal and governance reforms. As the 2001 Report had identified, the efficacy of the ISS to a large extent depends upon the operational efficiency of the statistical systems in the State Governments and Union Territories (States/UTs). The GOI and States/UTs subsequently agreed to strengthen the ISS, starting at the base of the system, namely in the states. 8. The GoI instigated a number of reforms to improve the operational efficiency of the decentralized statistical system and to improve coordination between the Center and States/UTs. Based on the 2001 NSC Report, the GoI formulated a nation-wide scheme, the India Statistical Strengthening Project (ISSP), to support the reform and institutional strengthening of state statistical systems. A high-level Steering Committee was instituted in September 2007 to monitor implementation of the ISSP, with the nation-wide scheme approved by the Cabinet Committee on Economic Affairs (CCEA) in March 2010. The total allocation by GoI to the nation-wide Box 1. Centrally Sponsored Schemes (CSS) scheme was Rs 650.43 crores Essentially CSS are special purpose (US$135.5 million) for the grants extended by the Central Government to remaining period of the Eleventh States to encourage and motivate State Five-Year Plan (2007-12), which governments to plan and implement programs would be executed in the States that help attain national goals and objectives. For through a Centrally Sponsored instance, extending clean drinking water and Scheme (CSS, see Box 1). In sanitation to every habitation, eradicating polio addition, the Conference of Central and tuberculosis, making primary education and State Statistical Organizations universal etc.. CSSs are formulated by (COCSSO) was also revived with the concerned Ministries and Departments and objective to strengthen the implemented through counterpart State level institutional coordination of departments and parastatal bodies identified for statistical activities between the the purpose. central CSS sponsoring Ministry of Source: Accountability Initiative India website Statistics and Programme www.accountabilityindia.in Implementation (MOSPI), other central ministries and state statistical organizations. 2 9. Preparation of the Bank’s Statistical Strengthening Loan (SSL) began in 2005 with some initial technical assessments. The Bank became re-engaged with the GOIs statistical strengthening reforms through the funding of several studies1, conducted with MOSPI, including an extensive study, initiated in 2005, to identify the statistical capacities and needs of all 35 States/UTs. These studies became the basis of the SSL. Although various options for Bank support were considered, the loan was eventually designed as a standalone Development Policy Loan (DPL) between the Bank and the Government of India. It was the first national DPL and remains globally the only one supporting statistical capacity building. It is, de facto, aimed at supporting the long term reform of the state level statistical system using the CSS vehicle. 10. The rationale for the SSL is based on three main arguments. First, it supported a program of reform that the Government of India itself has identified as a priority. Second, the loan supported the development results agenda generally and development efforts at all levels and in all sectors through the promotion of more evidence and results based policy making (i.e. by giving policy makers and oversight bodies better quality and more timely statistics). The emphasis on development results and on the need to monitor indicators such as growth, investment climate, and poverty reduction has placed a renewed emphasis on supporting countries to increase their capacity to collect, compile, disseminate and use relevant and reliable statistics. Third, the loan also supported other Bank and development partners operations in India; an efficient and effective statistical system was seen as essential not only for the proper operation of government at all levels, but also for the Bank‘s and others operations in the country, both lending and non-lending. 11. The need for reliable, consistent and comparable statistics throughout India also supports the approach of a national framework. While much of the data collection is done at the local level and should aid local policy makers and oversight, there is also a need to ensure that statistical information is comparable between states, for example for state and local level income and poverty measures that may impact central transfers or investment, as well as to ensure that certain information can be aggregated to assist policy making at the central level. The loan has consequently also supported the promotion of central level statistical standards. 12. The India CAS, approved by the Board on November 14, 2008, emphasizes the importance of measuring the Bank’s contribution to the achievement of country development goals. The need is not only to extend the coverage of the statistical system, but also ensure that it is working efficiently and that its products are trusted and widely used. Although this is the first Bank-supported program in India in statistics, there is a long history of Bank interest and involvement in this area. In the view of many data users, especially in the policy research community, Bank involvement is seen as important and emphasizes the importance of good statistics for the development process and poverty reduction generally. 1.2 Original Program Development Objective and Key Indicators (as approved) 13. The SSL Program Objective is to support a national policy of the GoI to reform the institutional structure and to improve the operational efficiency of the state statistical systems. The loan was designed to contribute to the implementation of CAS outcome I, i.e., achieving rapid inclusive growth. It aimed at improving the quality and coverage of official statistics originating at the state level to help improve monitoring and evaluation at the state level. 1 See Table 2 in Section IV of the Program Document for a summary of the four main preparatory studies. 3 14. The SSL supported an institutional and policy based reform of the Government of India to strengthen the statistical systems in States and UTs within a national policy framework. The DPL supported a nation-wide scheme called the India Statistical Strengthening Project (ISSP), with the following four main policy areas and key outcome indicators that covered the period of the loan (i.e. 2010) and for 2015:  Policy Area I, Strengthening the institutions of leadership and coordination of the National Statistical System: Baseline: Collection of Statistics Act 2008 passed by Parliament; End 2010: Rules framed under the Collection of Statistics Act 2008 prepared; By 2015: Rules in place and being implemented, Bill to provide a statutory basis for the permanent National Statistical Commission is presented to the Parliament.  Policy Area II, Improving and increasing the support provided by the Central Government and the Ministry of Statistics and Program Implementation to the statistical systems of State/UTs: Baseline: Eight manuals for key statistical activities are published; End 2010: A further two manuals published, five in draft. By 2015: Manuals for other key statistical activities published and updated.  Policy Area III, Strengthening the capacity and performance of the statistical systems in a majority of States/UTs in India: Baseline: Seven states have signed Letters of Participation to participate in ISSP; End 2010: Seven states have prepared strategic plans and at least three have signed MoUs with MOSPI and are implementing a program of reforms; By 2015: Majority of participating states have prepared SSSPs, and most of these have signed MOUs with MOSPI. Baseline: The staffing gap in sanctioned professional posts (unfilled posts as a proportion of the total) is estimated at 10 per cent; End 2010: Training needs in at least seven states quantified and appropriate policies identified; By 2015: Staffing gap expected to be reduced to less than 5 per cent.  Policy Area IV, Improving the coverage, quality, timeliness and credibility of statistics generated by States and UTs: Baseline: Average quality score for national statistical activities in all States/UTs is 1.2; End 2010: Actions to improve quality of key statistics being implemented in three states and priorities and targets agreed in six more; By 2015: Average quality score for participating states is 2.5. Baseline: 40% of all States/UTs are disseminating statistics through a web-site. End 2010: 75% of participating States/UTs disseminate through web; By 2015: 95% of participating States/UTs disseminate statistics through web-sites. 15. The setting of medium-term targets explicitly acknowledged that the process of strengthening state statistical capacity would not be completed within the period of the loan. The Program Document was also explicit that, although the SSL would be fully disbursed on effectiveness, ―the nature of such institutional reforms and capacity strengthening processes that the loan is supporting requires that there should be a more sustained interaction between the World Bank and MOSPI as the implementing agency‖2. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification 16. The PDOs were not revised 2 See Annex IX of the Program Document, which set out some of the mechanism for the Bank‘s expected ongoing engagement that included the possible preparation of follow up operations, if both GoI and the Bank had decided that these should be needed 4 1.4 Original Policy Areas Supported by the Project 17. The Project supported the Government reform program with focus on four key policy areas derived from the recommendations of the 2001 NSC Report. The four policy areas are as described below. 18. Policy Area I: Coordination and Leadership of the National Statistical System. The first policy area addressed the deterioration in coordination and organizational functioning over the past few decades that has reduced the effectiveness of the ISS. The GoI has taken action to strengthen the leadership and strategic direction of the ISS including: (i) setting up the permanent National Statistical Commission (NSC) and nominating its Chairman and members in June 2006; (ii) filling the post of the Director General of the CSO, which had remained unfilled for almost 9 years; (iii) the appointment of the first Chief Statistician of India. Both the establishment of the permanent NSC as well as the provision of technical and professional leadership in MOSPI has provided a strong professional leadership mechanism for the ISS as well as important interlocutors for the Bank; (iv) a National Strategic Statistical Plan (NSSP) was prepared in 2008 to underpin the reform program for the ISS; (v) The Collection of Statistics Act 2008 was passed by Parliament in December 2008 and assented to by the President on January 9, 2009; and (vi) the Conference of Central and State Statistical Organizations (COCSSO) has been revived and strengthened- COCSSO‘s objective is to strengthen the institutional coordination of statistical activities between MOSPI, other central ministries and state statistical organizations. 19. The program also aimed at supporting Government medium term plans such as (i) review and update of NSSP, (ii) preparation of the Bill providing statutory basis for NSC, (iii) implementation of the Collection of Statistics Act. 20. Policy Area II: Increasing Support from the Center to the States. The project has supported improved and enhanced coordination and support of the central government to the states in the area of statistics. It has supported establishing standards, norms and benchmarks for key statistical activities that contribute to important national data series is ongoing; and transferring technical and financial resources from the Center to states will be provided to support the implementation of the reforms. MOSPI has defined a set of 20 key statistical activities for the purposes of the 2007 assessment of State statistical systems. These activities are not exactly the same as the Core Statistics discussed in the 2001 NSC Report, but they do generate the source data for the most important economic and social indicators. They represent the set of activities that any modern statistical system in a state will need to carry out on a regular basis. The 20 statistical activities can be grouped together under four main headings:  Economic, financial and price statistics (7 activities)  Production and labor market statistics (6 activities)  Social, environmental and demographic statistics (5 activities)  Other activities (2 activities – participation in the national sample survey and generation of statistics for local area planning) In addition to financial support the project focused at establishing necessary institutional capacity of MOSPI to support reforms at the state level. 21. Policy Area III: Strengthening the Capacity and Performance of State Statistical Systems. One of the main areas of focus of the project was on improving statistical systems at the state level. The 2001 NSC Report noted that the failure of the ISS stems from a deterioration in the state statistical systems as a whole, and identified participation of the states in the reform 5 program as critical. The program has supported a detailed study, in consultation with states/UTs, identifying specific requirements for strengthening State Statistical Bureaus. The Synthesis Report summarizing the findings from these 35 studies was completed in 2008 following a national workshop. As already indicated, the study defined an initial set of 20 key statistical activities and each state was assessed on the extent it was able to undertake these activities and comply with national requirements and the quality of the resulting data. All 35 comprehensive States and UTs specific reports were prepared and discussed with the States/UTs and have been widely distributed; they provide a baseline for monitoring progress under the ISSP. The project also supported establishment of ISSP which is a centrally sponsored scheme that states volunteer to participate by signing LOP and get resource transfer for preparing SSSPs and implementing them. The actions envisaged in the program are completion of SSSPs by the states and beginning of implementation, setting up High Level Steering Committees in the states for oversight of ISSP, strengthening the role of the DES, or an alternative nodal agency, to ensure that it can play an effective leadership role. 22. The capacity building component was also focus of the SSL. The project supported establishment of the National Academy of Statistical Administration (NASA) as a national statistical training institute providing on-the job training and research in official statistics. The National Academy of Statistical Administration was inaugurated in February 2009. It was to play the predominant role in addressing the main gaps in training provision for the ISS as a whole. In particular, NASA is responsible for the development of curricula and training material, the development of courses and the training of trainers. 23. Policy Area IV: Improving the Coverage, Quality, Timeliness and Credibility of Statistics Generated by States. The NSC in 2001 and subsequent Bank work in consultation with MOSPI and States in 2007 and 2008 demonstrated that there had been a decline in the quality and reliability of statistics generated by state statistical systems and that there were other problems such as data gaps, duplication leading to conflicting statistics and inordinate delays in transmission and publication of data. The success of ISSP, therefore, was to be determined by the extent to which it results in improvements in the timeliness, coverage, accuracy, consistency and usefulness of the statistics produced by states. Another important outcome was supposed to be an improvement in the awareness of users of statistical activities in states, improved access to statistical data and increased interaction between data providers and users. 24. The results envisaged under the policy area IV are focused on improving statistics. The ISSP is a results focused program and the main results are measurable improvements in the quality and coverage of key statistics as determined by the extent to which states are able to achieve the national standards. The states were expected to set their own targets for the compilation and dissemination of indicators and data series, these targets are determined on the basis of the needs of data users, including the needs of the state and national statistical system. As part of the implementation of the SSSPs, states were encouraged and supported to establish a regular consultation mechanism with data users, including those from outside the government. 1.5 Revised Policy Areas (if applicable) N/A 1.6 Other significant changes 25. There were no other significant changes 6 2. Key Factors Affecting Implementation and Outcomes 2.1 Program Performance Single tranche DPL: Tranche # Amount (USD) Expected Release Actual Release Release Date Date Tranche 1 106,732,500.00 July 30, 2011 July 30, 2011 Regular Front-end Fee 267,500.00 60 days after loan effectiveness date (11August 2010) 26. The momentum of the reform process has been steadily building, reflected in substantive progress, but with delays, to the original results. The matrix in Annex 2 provides a detailed description of the performance results anticipated in the Program Document up to the end of 2010, while the summary below provides highlights of performance under each Policy Area. Overall, there has been substantial progress towards the medium-term objectives, as set out for 2015 in the Program Document, in every Policy Area. However, the pace of the reforms has been somewhat slower than originally anticipated, which means that many of the results expected by the end of 2010 were not fully achieved (partly because, due to delays, the project was approved only in June 2010). 7 RESULTS AT A GLANCE •Timetable to review and update NSSP has been agreed, with a revised target for approval in early 2012: Delayed • Draft rules under Collection of Statistics Act, 2008: Met Policy Area 1: Coordination and •Provision of statutory basis for the NSC still in progress: Delayed Leadership of the National Statistical System •High-level Steering Committee for ISSP and COCSSO have met several times to review the progress of ISSP: Met •Assessment of capacity and needs of States/UTs completed in 10 states (target 7), and in progress in a further 5 states: Met •Target date for disseminating progress report on ISSP moved to March 2012: Delayed • 11 manuals were finalized by the close of the project (13 by Nov. 2011) and posted on MOSPI website: Met Policy Area 2: Increasing Support • By June 2011, 5.5% of ISSP budget had been transferred to States, from the Center to the States (target was 10%). This rose to 12.3% by November 2011: Delayed •MOSPI has identified needs for further technical assistance to states, but is still considering possible Bank support: Partially Met •Progress being reported regularly on MOSPI website: Met • 9 states have prepared SSSPs: Met, but with delays • 3 States have signed MOUs with MOSPI : Met, but with delays •HLSC in place in 31 states, but unclear whether they have met in all participating Stats at least twice: Partially Met Policy Area 3: Strengthening •Under 10% of funding requirements identified in MOUs have been Capacity and Performance of State transferred to the three signatory States: Delayed Statistical Systems •Only Karnataka has submitted at least one progress report to MOSPI as those for Gujarat and Rajasthan are not yet due: Delayed • Target to complete a first review of ISSP monitoring and reporting system: Not met Detailed training needs assessments are in the process of being prepared by NASA: Delayed 7 states have identified actions and strategies to improve the quality of key statistics: Met Policy Area 4: Improving Coverage, • For the rest of the States, action plans will been included in SSSPs Quality, Timeliness and Credibility and MOUs: In Progress of Statistics Generated by States Advance release calendar prepared in 1 state where target was for at least 3 participating states: Partially Met State statistics are being disseminated through websites and electronic media in less than half of states: Partially Met 8 2.2 Major Factors Affecting Implementation: 27. As highlighted above, the program has made substantive progress in each Policy Area, albeit at a slower pace than originally envisaged. The major factors affecting implementation have therefore largely been positive and conducive to the continued progress of the reforms. These include the following:  Sustained engagement and commitment to the reform process:  The ISSP initiative grew out of the GOI’s strong commitment to implement the recommendations of the Rangarajan Commission. While it took time to develop the Commission‘s findings into the ISSP, with the support of further technical studies, the sustained commitment is evidenced by approval of the first CSS for statistics strengthening, along with the creation of the NSC, the appointment of the first Chief Statistician for India (CSI) in 2007 and the revival of COCSSO.  The above process was mirrored by the substantial process of engagement by the Bank through a statistical capacity building trust fund. The Bank supported the design of the ISSP (and therefore SSL) through a number of technical studies between 2005-2010. This enabled the Bank to build a strong relationship with MOSPI and a number of States, as evidenced in particular by the Bank‘s participation in the national high-level Steering Committee and the collaboration with officials during frequent reviews (see section on monitoring and evaluation).  Extensive consultations throughout a comprehensive design process:  From around 2005, the design benefitted from a series of detailed technical studies. Following the Commission‘s 2001 Report, technical studies required the national government, the Bank and implementing agencies in all 35 States and UTs work together to develop the ISSP, particularly through the needs assessment. The Bank also shared global experiences gained in the design and implementation of other STATCAP projects. The resultant ISSP adopted many good practices for statistical capacity building as set out in the STATCAP framework, notably: setting the broad institutional framework; setting (20) national standards; setting local and national priorities through the NSSP and SSSPs; and increasing user awareness/demand.  The CSS was also innovative in that, for the first time, States and UTs set their own priorities and timetable in State Strategic Statistical Plans (SSSPs). The ISSP seeks to provide greater flexibility in implementation with more local accountability for results, countering some of the criticisms of previous centrally driven CSSs (see Annex 3). While it appears to have taken time to disseminate the main features of the ISSP and to build support and capacity within the States and UTs, the almost universal commitment to participate suggests strengthened ownership.  Knowledge transfer is already becoming a bottleneck in implementation at the State level  The development of the SSSPs has turned out to be a more difficult task for most of the States. Only a few of the most advanced have managed to produce 9 good quality SSSPs. The implementation of the strategies is also much more challenging task and even the most advanced states will require support in how to manage the changes, particularly in terms of sharing good practices and lessons.  The single disbursing SSL was acknowledged have some drawbacks  There is timing mismatch between the single disbursing annual lifespan of the SSL and the long-term institutional reform. This was acknowledged in the Program Document, which included performance measures to 2015 and emphasized the need to consider ongoing technical support for the ISSP. However, it was not possible to design a programmatic loan as funding for the continuation of the ISSP under the 12th five year plan was not certain. An alternative Bank managed Investment Lending (IL) operation to cover such a broad, decentralized initiative as the ISSP was also considered to not be manageable. The Bank also provided limited technical assistance support for program design and the initial SSSPs through the Trust Fund for Statistical Capacity Building (TFSCB), until it closed in June 2010. Therefore, in the context of the engagement the instrument was considered the best option at the time, while recognizing the need for further funding and technical assistance would be needed to fully implement the ISSP.  Implementation was helped by the enhanced use of project support. Institutional strengthening is a long term process and generally requires considerable technical assistance and capacity building. Although project supervision was constrained to a brief window, between the declaration of loan effectiveness in August 2010 and project closure in July 2011, the project team conducted three Support Missions within this timeframe and participated in numerous program-related meetings (despite the closure of the TFSCB). This was necessary given the complexity of supporting statistical capacity strengthening in 35 States/UTs, coordinated by MOSPI at the center.  The Bank’s provision of a range of services, including technical support, knowledge transfer and help in facilitating the process of engagement between the center and the States / UTs:  While the Bank supported technical assistance and knowledge transfer, including in the design stage, the SSL also helped to facilitate a complex and systematic program of engagement between the center and the States on the need for statistical strengthening. Through the SSL, the Bank is reportedly viewed as an independent / impartial intermediary in the ISSP and CSS process. The loan and CSS also helped to create a positive ‗buzz‘ as well as providing a flexible instrument to support what is typically seen as a backroom function at the State level. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization: 28. In order to monitor the implementation process the following institutional framework was established: At the central level a Steering Committee for the ISSP under the Chairpersonship of the Secretary (MoSPI) was constituted to monitor implementation of the project. The Project Support Group (PSG) was established and was responsible within the MoSPI for monitoring progress and for providing support to the states. Although at the beginning the PSG was not able to provide an adequate and timely support to the States, actions were taken to strengthen its capacity based on the recommendations of the High-Level Steering Committee that 10 was created to oversee the statistical reform and to monitor the progress of the ISSP. The Deputy Director General from the Social Statistics Division (MoSPI) was Project Manager for the ISSP. High-level Steering Committees in each State/UT were created under chairpersonship of the concerned Chief Secretary/Administrator. A Technical Support Group (TSG) was constituted and headed by the Deputy Director General of Coordination and Publication Division (CAP), which was supervised by the Additional Director General of the Social Statistics Division. The PSG and TSG work closely together and report jointly to the Additional Director General, Coordination and Publication Department (CAP). Periodic monitoring was envisaged at the States/UTs level, preferably every 3 months and at the central level every 6 months. 29. Project arrangements allowed not only monitoring of progress and project performance, but also supported the implementation of the project at both technical and policy levels. The Bank supported efforts of the GOI in assessing implementation through its Support Missions, until the loan closing date of July 31, 2011. In particular, a monitoring framework for the ISSP and draft reporting forms to assess the progress of preparation and implementation of SSSPs were developed by the Bank and shared with MoSPI. This framework was sent to all the State based Deputy Director Generals (DDGs), who had regular meetings with the Directors of the Directorate of Economics and Statistics (DES) and reported back to the senior management of the MoSPI. Besides, consultancy support was provided by the Bank to assist the states in development of the SSSPs, and workshops were organized to facilitate this work following a unified approach. However, variance in states‘ capacity and quality of statistics collected remains a challenge and requires additional resources. Although the Program was aiming to improve statistics at the level of State/UTs the unification of the nation-wide indicators was also a subject of concern and focus. For this purpose the list of Key Statistical Activities was approved at the central level to facilitate the coordination efforts of GoI regarding implementation of nation-wide indicators at the states level. 30. The M&E system has been broadly effective and focused on key steps in the GOI's program of engagement with the States on Statistical Strengthening. The M&E system focused on the process steps during the time of the SSL and alerted the MOSPI and Bank team to the somewhat slower than anticipated pace of reform early in the process, which enabled the Bank to increase the number of Support Missions and the GOI to strengthen its oversight of program implementation. Support Missions were increased to a quarterly frequency, with local Bank staff also participating in regular ISSP meetings with MOSPI. 31. At the same time, the design of the ongoing program might be strengthened by incorporating the intermediate steps between actions i.e. it would have been advisable to map out, and regularly update, the trajectory of the reform process from those activities completed by end-2010, through to the final outcomes in the policy matrix (due in 2015). Although this would have been outside of the period covered by the loan, it could have helped to highlight the potential impact of the slower than anticipated progress with the initial reforms for the ISSP and helped in the design of corrective or mitigating actions where possible that could then be monitored by MOSPI on an ongoing basis. 2.4 Expected Next Phase/Follow-up Operation (if any): 32. While Bank engagement formally ends with the current SSL; the GOI is considering further support. Going forward, the GOI needs to determine and then initiate the next steps in order to continue the engagement with the Bank following the end of the SSL and TFSCB. To maintain Bank support for the reform effort, clear direction from the GoI is required, ideally within the context of the new five year plan and updated NSSP (due in early 2012). 11 33. At the time the Loan was approved it was anticipated that the Bank’s engagement would need to continue in the medium term. The success of the Government‘s reform program rests on a gradual improvement in the capacity and performance of the state statistical systems and their increasing integration into the national statistical system. This requires the continued provision of technical advice and support, to help states to prepare their strategic plans and, especially, to support their implementation. The Bank may well be able to play an important role in supporting the dialogue with states as well as helping to share experience and expertise, particularly through South-South dialogue and knowledge sharing with Bank STATCAP projects. Such an engagement would provide access to high level advice, technical support and examples of best practice from other countries. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation 34. The objective of the Statistical Strengthening Loan (SSL) was to support the national policy of the Government of India to reform the institutional structure and improve the operational efficiency of the state statistical systems. The loan objective is relevant to both the Bank's program of engagement in the country and the Government's reform program. It was designed to contribute to the implementation of CAS outcome I, i.e., achieving rapid inclusive growth. More importantly, the loan supports the long term initiative of the Government to improve statistical system in India that is necessary to support economic policy making in the GOI and States. It is also in line with the growing demand for statistical information by the private sector and the public, particularly for informing investment decisions and for holding governments accountable. 35. The program was based on a lengthy, comprehensive design process and sustained engagement that helped to promote a well designed program that is consistent with the Bank’s good practice STATCAP framework. The design of the program originated in the NSC Report of 2001, which identified key deficiencies and priorities for the statistical system in India. The Bank re-engaged with the GOI to discuss support to statistical strengthening in 2005 and shared experiences with STATCAP projects worldwide as well as funding several studies, conducted by MOSPI, to identify the critical gaps in strengthening the coverage and quality of national statistics. This became the basis of the ISSP, with its four policy elements that are fully in line with the good practice in other institutional strengthening STATCAP programs, adjusted for the particular federal characteristics of the system, namely: (I) Strengthening the institutions of leadership and coordination of the National Statistical System; (II) Improving and increasing the support provided by the Central Government and the Ministry of Statistics and Program Implementation to the statistical systems of State/UTs; (III) Strengthening the capacity and performance of the statistical systems in a majority of States/UTs in India; and (IV) Improving the coverage, quality, timeliness and credibility of statistics generated by States and UTs. The focus of the program on both statistics at the state level and improved coordination with the center has played a useful role in bringing different states and central statistical agencies together and focusing reform efforts on concrete next steps. 36. As discussed in section 2, the design of the Governments Centrally Sponsored Scheme (CSS) was also innovative. The CSS that the SSL supported sought to overcome many of the constraints previously identified for such schemes (see Annex 3), with a more flexible, State driven approach to the design that focused on accountability for results rather than top down command and control – such approach facilitated performance based focus of this CSS The States, through the SSSPs, set their own priorities and timetables and have almost universally 12 committed to the scheme—which must be considered a major positive result for the ISSP in setting up a mechanism to link financial transfers to performance. 37. While financing needs did not dominate in the dialogue with authorities in India, the Bank’s involvement in the reform program through the SSL operation has been regarded by the Government as an important catalyst for reform. The preparation and subsequent DPL operation supported the Government reform program at both national and local levels. The Bank helped to strengthen the relationship between the central government and the States and UTs, particularly through the preparatory studies, which covered all States, and through the provision of supportive technical assistance and other capacity building efforts. Moreover, the existence of the DPL triggered as suggested by several Government officials additional resources channeled to improved state statistics from the Thirteenth Finance Commission. 38. The choice of the single disbursing SSL as an instrument for supporting the reform, although unusual, was justified at the stage of formulation of the project. As discussed in section two, a single disbursement DPL, without considerable complementary technical support, does not appear to be best suited to such a multi-year institutional reform program. However, the only alternatives at the time could have been investment operation or programmatic DPL series. Investment lending was not a good option due to the nature of the reform, which was attempting to initiate the statistical reform in thirty five States and UTs. A programmatic DPL was also not possible due to mismatch between Bank and Government planning cycles--the Government could not commit to a reform program that was outside of the 11th five year plan, which is finishing in early 2012. Thus, given the imperative to support the CSS backed ISSP the ICR team believes that the DPL instrument was justified, and an innovative response to circumstances. 39. Nonetheless, the complexity of the program and choice of supporting Bank instrument has led to certain limitations that could be taken into account in designing similar operations to improve the sustainability of reforms. The ISSP is understandably ambitious in wanting to cover all the States and UTs, given that weak links inhibit aggregation or intra-country comparisons. While the SSL backed CSS ensured resource transfers and helped jump start the reform process, the delays highlighted in the Results at a Glance chart show that capacity constraints and knowledge transfer is already becoming a bottleneck in the implementation at the State level. The development of the SSSPs has turned out to be a more difficult task than anticipated for most of the States and only a few of the most advanced have managed to produce good quality strategic documents. The issue of technical assistance as well as measuring the quality of outputs and outcomes are common to many centrally sponsored schemes implemented in India (See Annex 3). Furthermore, the implementation of the strategies is also proving more challenging and even the most advanced States require support in how to manage the required changes, particularly in terms of sharing good practices and lessons. 3.2 Achievement of Program Development Objectives (PDO) 40. The assessment of the PDO achievement is a challenge because of the mismatch between the SSL closing date (July 31, 2011) and the term of the Government’s program. This includes the 11th five year plan (up to February 2012) and the 2015 targets elaborated in the ISSP. Since the main goal of the loan was to support the efforts of the GoI to reform the institutional structure and to improve the operational efficiency of the state statistical system, it would be more accurate to assess the achievements associated with the planned period rather than with the closing date of the loan. While successful implementation and achievement of the final objectives require the strengthened institutional capacity and actions in the States and UTs as envisaged under the ISSP, the determination of these is still very premature. 13 41. The final outcomes envisaged in the project are expected by 2015, but the mid-term outcomes based on the tasks completed within the life of the loan are provided in the Result Matrix (See Annex 1). The results presented in the matrix assess a progress achieved in the four policy areas. 42. Overall, the loan has been successful in supporting the initial stages, albeit with delays, of the national policy to reform the institutional structure and to improve the operational efficiency of the state statistical systems. While progress across the board has been markedly slower than originally envisaged, and therefore many of the process indicators for end-2010 have only been partially met (even well into 2011), tangible progress is witnessed in all four policy areas. The GOI has also demonstrated an appropriate policy framework to promote and sustain the reforms under high level leadership—for example, as described in section 2, the GOI has committed both resources and supported the institutions to maintain the reforms (such as appointing the Chief Statistician to lead the process or reviving COCSSO). The development of the National Strategic Statistical Plan (NSSP), and the agreed timetable for its revision in 2012, also signals the Government‘s continued commitment to and leadership of the reform effort. In addition, the commitment of almost all the States and UTs to develop their own SSSP demonstrates the renewed interested and buy-in to the broader statistical system and ISSP framework. The development of the statistical standards and data collection methodologies for key statistical activities is also ongoing. 43. The slippages in PDO indicators and achievements appear to result largely from bottlenecks in capacity and knowledge transfer to the States and UTs. Some delays to the SSL were the consequence of obtaining the required approvals and clearances for what was the first DPL in India. More importantly, while 33 states have indicated their willingness to participate through the signing of a Letter of Participation (LoP), the fact that the SSSP preparation is not more advanced could be explained to some extent by the limited capacity of the states in drafting such comprehensive documents where the main direction of the reform and measures for its implementation should be envisaged. In addition, at the central level the development of training needs and a capacity building program are still going slowly. 44. Nonetheless, the project met the main objective of catalyzing the reform process and creating conditions and incentives for the states to improve statistics. As long as the ISSP framework can be sustained, with additional capacity building and knowledge transfer, it should help to improve collection of key statistical indicators as well as improve the overall statistical capacity at the state level. 3.3 Justification of Overall Outcome Rating Rating: Moderately Satisfactory 45. The overall outcome is rated moderately satisfactory based on the fact that despite the delays the SSL has helped to trigger the long term institutional reform process being carried out by the Government. While progress on implementation of the medium term actions was slower than expected, as witnessed by the partially met nature of many of the indicators, the pace of reform appears to have picked up during 2011. The majority of the intermediate indicators have more recently been achieved or are on the way to being achieved before the end of 11th Five Year Plan. 46. In addition, and despite the long and comprehensive design stage, the complexity and ambitious scope/scale of reforms in a country the size of India, suggests that the rating of 14 moderately satisfactory was a high probability at this stage of the reform process. On the positive side, although the states are taking longer than expected to achieve results, partly due to the lack of capacity and the lengthy initial learning period, the reform process has a sustainable nature as evidenced by the number of participating States / UTs and progress in the preparation of SSSPs in 2011. 3.4 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 47. The loan did not have any direct impact on poverty reduction; however by improving statistics and building institutional capacity at the state level, it initiated reforms that would improve monitoring of poverty and social data. The standardization of state statistics supported by the loan focuses on 20 key statistical activities that would be improved or established in all participating states. These key activities include the education and literacy statistics, morbidity and fertility statistics as well as price statistics. All of them are critical element of the policy making and would contribute to more efficient and targeted social assistance thus alleviating poverty in the country. (b) Institutional Change/Strengthening 48. The impact of the SSL on institutional strengthening originates from the design of the operation supporting institutional reform in the area of statistics. This impact is actually larger than of a regular development policy operation. An objective of the project was to help India set up the institutional framework for better statistics. The main institutional impact of the reforms supported by the loan is based on the following reform actions: (1) increased independence of the statistical system, which was effected through the promulgation of the Collection of Statistics Act, appointment of the Chief Statistician and permanent status of the National Statistical Commission (the draft law to legalize its status is now in Parliament); (2) enhanced coordination of the statistics collection and analysis between the center and the states as well as within the states. The project created a platform for discussion by establishing an annual Conference of Center and State Statistical Organizations where the states and center can discuss issues in the area of statistics and share experiences. The methodological guidance from the center is ensured by preparation of statistical manuals which is progressing well and over 10 manuals have been approved and posted by fall 2011; (3) modernize institutional set-up at the state level to facilitate statistics collection and analysis. The high level steering committees have been established in 31 states, many states are preparing SSSPs and seven have already approved them. 49. Another important aspect of the long term capacity building is a focus on training. The training needs of the states were assessed as part of the SSSP preparation exercise for about 15 states. The National Academy of Statistical Administration is developing the training program to support implementation of the states‘ statistical strategies. 50. The institutional changes have been slower than expected. The states have started later and been slower than expected in preparation of their SSSPs, partly due to the program being approved later than planned, but the pace of this process has picked up only more recently. Also, capacity was a constraint at both state and central level. The Bank operation could not ensure 15 adequate knowledge transfer due to design of DPL operation although technical assistance provided by the Bank covered some of the gap. 51. At the same time, there is no doubt that institutional changes supported by the loan are likely to continue. The National Statistical Strategic Plan has been approved and is now being revised based on implementation experience so far. The 13th Finance Commission has recognized the importance of statistics and has given the grant to the districts for improving estimation of state and district domestic product. The CSS supported by the project will be completed early 2012, and it is unclear whether the new centrally sponsored scheme ―Basic Statistics for Local Level Development‖ would be launched as part of the 12th Five Year Plan. (c) Other Unintended Outcomes and Impacts (positive or negative, if any) 52. There were no unintended outcomes. 3.5 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops N/A 4. Assessment of Risk to Development Outcome Rating: Moderate 53. The risk to development outcome is considered to be moderate, based on the robust commitment demonstrated by the GOI towards the strengthening of the decentralized statistical system and improving coordination between the Center and States/UTs, although future funding has not yet been firmed up. The project has supported a well articulated home grown reform program of the Government of India. The milestones and outcomes were designed around the ISSP program implemented by the Government and although progress was initially slower than expected, in the course of 2011 it picked up significant momentum. The Government has shown commitment to statistics reform by allocating funds under the CSS and through the 13th Finance Commission. The latter targets a defined set of state level indicators used to produce national statistics and thus complements the CSS. Nonetheless, without further financing it is unlikely that the remainder of the States and UTs will receive the capacity building and knowledge transfer required for such a reform. While MOSPI has indicated that statistics reform will continue to be a priority in the 12th Five Year Plan (see Borrower ICR) this is not yet certain, as the 12th Plan is under preparation and will be released only in March 2012. As noted in the Borrowers ICR, in the interim the program has been restricted to the ―number of States/UTs that can be covered during the 11th Plan period to about 15 States/UTs, with the possibility of covering the remaining States/ UTs during the 12th Plan period subject to required approvals and availability of funds.‖ 54. The rating also reflects the critical need for continued support of the first few States that are only just starting to implement their SSSPs. There has been little central disbursement for the implementation of the SSSPs, although much of the money will eventually come from the States themselves. It is important that the pioneering States can demonstrate successful implementation, and share their experiences with other, sometimes less capable, States and UTs. This ‗demonstration effect‘ could have a catalytic effect on encouraging other States, and also showing what is possible (and perhaps the benefits from better statistics, such as encouraging private investment). Going forward, significant capacity building and guidance will be required from the center to support this process of dissemination and lesson learning. While most of the states and union territories have signed up for the ISSP and many have prepared SSSPs already, 16 the uneven and often low capacity may hamper implementation. Arguably, India is approaching a critical threshold in the initiation and implementation of statistics reform and continued resources and focus on reform would be key to success. 5. Assessment of Bank and Borrower Performance (relating to design, implementation and outcome issues) 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory 55. The Bank worked closely with the government to identify reforms and to follow-up on the progress. As noted above, the Bank re-engaged in the design of the statistical reform process in 2005 and supported a number of technical studies and technical assistance at the center and across the States and UTs. This helped to ensure the quality at entry and bolster the government‘s strong, demonstrated commitment to the ISSP, as evidenced by the prior actions in Annex 2, and that for the first time funds were earmarked under the thirteenth finance commission for the improvement of statistical systems in state governments. This also demonstrated the strategic relevance and the buy-in of government commitment. While the Bank was responsive to the client‘s reform strategy, it did select key policy and process actions to help focus the program, consistent with the STATCAP framework. 56. The design of the program also mitigated some of the risks with CSSs. Annex 3 highlights some of the more common problems with CSSs, which was an issue also raised in the Bank‘s Quality Enhancement Review (QER) of March 2008. However, in the CSS for the ISSPs, MOSPI are not only the sponsors and monitors, but they also provide technical assistance and guidance to the States/UTs. The States/UTs also lead the process through the production of their individual SSSPs that ensure appropriate local flexibility and accountability. The Bank has played an active role in promoting this process, for example in supporting the needs assessments in the States/UTs that have built the trust of the States and help to design a more supportive/appropriate framework for support under the CSS. 57. The Bank worked closely with the government to identify a workable method for supporting the ISSP. The program of support had a lengthy development process in order to consider various options and identify the most feasible mechanism for supporting the ISSP. As noted in the Quality Enhancement Review (QER) of March 2008 the proposed operation switched from a SIL (Specific Investment Loan) to be one of India‘s first central-level DPLs (development policy loan). While the QER proposal had considered a programmatic series of loans or tranches, which might have been better suited to the medium-term nature of the institutional strengthening program as highlighted in the outcomes shown in Annex 2, this was eventually not possible given the uncertainty over the future funding in the Twelfth Five-Year Plan (2012-17), which is expected to be updated in March 20123, and the WB's rules on the 3 As explained in the QER, a SIL covering such a large number of States would have been very complex to manage. With regard to the DPL design, in addition to the GOI funding issues, a series is considered to 17 timing of programmatic DPLs. Consequently, a single tranche loan that bolstered the GOI‘s demonstrated commitment to the ISSP, which included significant prior actions (see Annex 2), and expected intermediate and medium-term results was an innovative solution. 58. The above features combine to justify the rating of ‘Satisfactory’ for the Quality at Entry. (b) Quality of Supervision (including M&E arrangements) Rating: Satisfactory 59. At an early stage the Bank identified the need for frequent Implementation Support Missions. The November 2010 Mission concluded that ―given the performance towards the progress benchmarks and the gap between realized and planned targets, the Bank team is ready to support MoSPI and will be glad to conduct more frequent implementation support missions. As agreed, the Bank will conduct these missions every two months till the loan closing date of July 31, 2011 to jointly review the progress on agreed results.‖ The Bank also participated in meetings of the high-level Steering Committee for the ISSP, which identifies states requiring additional support, and regular technical meetings within MOSPI. 60. The implementation of the reforms accelerated during the period of intensive support from the Bank. The momentum of the reform program is witnessed by the progress demonstrated in the Bank Aide Memoires and ISRs, and summarized in the table in Annex 2. The Bank‘s proactive and relatively intensive approach to supervision in the year following disbursement, which identified challenges and proposed additional measures at an early stage, justifies a ‗Satisfactory‘ rating. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory 61. The overall rating for the Bank’s Performance is Satisfactory. The Bank worked closely with the government to develop a relevant reform agenda that strategically addressed several core constraints in the country. The Bank also took an innovative approach to program design in the face of numerous constraints to more conventional operations, such as a SIL, while taking a proactive and intensive (particularly for a single tranche policy loan) approach to supervision that helped to promote momentum after a slow start to the overall reform program. 5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory have lapsed if two successive operations are more than two years apart, while the two operations would have had to support a five-year program. 18 62. The Borrower’s performance is rated as Moderately Satisfactory. The success of the ISSP program so far can be attributed to the GOI, as the borrower, and in particular MOSPI‘s high level commitment to see it succeed. States/UTs have also enthusiastically signed up to the program supported by the innovative CSS and 13th finance commission. However, the time required for the GOI to provide the required approvals and clearances for the DPL resulted in a delay of almost nine months from negotiations to Board presentation (this is one of the reasons for the somewhat limited achievements at loan closure). In addition, the GOI should continue to prioritize statistical reforms, by approving the updated NSSP in a timely fashion and providing the statutory basis for the independent statistical authority, the NSC, which remains in progress. (b) Implementing Agency or Agencies Performance Rating: Moderately Satisfactory 63. The implementing Agency’s performance is rated as Moderately Satisfactory. While the MOSPI has played a consistent and pivotal role in pushing through progress on the reforms, Bank support missions identified at an early stage the need for more intensive efforts to achieve satisfactory progress under the loan—in particular with regard to establishing an effective system to monitor progress, the need for greater systematic guidance and more timely support to the states/UTs and the need to enhance coordination and clarity on the division of work between the Program Support Group, the Coordination and Publications Division and the Technical Advisory Group. Once these issues were addressed, program performance began to accelerate in 2011. MOSPI has also sought to strengthen its own capacity to provide guidance and quality assurance to the States/UTs, with regard to preparing and implementing the SSSPs, as working relationships have evolved. In the future, States and UTs, and particularly those with weak capacity, are likely to need higher levels of support from the MOSPI to enact their reforms. (c) Justification of Rating for Overall Borrower Performance Rating: Moderately Satisfactory 64. Borrower performance is rated Moderately Satisfactory. The ratings reflect a combination of the performance of the GOI and MOSPI, which are supporting the performance of the States and UTs. Beyond government ownership of the reforms, the Government of India has been proactive during the process and in committing the resources and personnel to facilitate it. As a result, the initial stages of the program were at least partially delivered, albeit with some delays. With the continued strong support from the central government there are also good prospects for achieving the medium-term goals, though perhaps with some further delays, which includes the critical implementation phase for most States and UTs. 6. Lessons Learned 65. Using a single tranche SSL to support a complex multi-annual institution building program was justified under circumstances, but has drawbacks. There is an obvious mismatch between the lifespan of the DPL and such a multi-year capacity building and institutional reform initiative. This was the only option at the time to support a priority area: a programmatic DPL series was not possible due to the timing of the next plan and WB timing requirements while the ICR team concurs that a standard Specific Investment Lending (SIL) operation would be impossible to manage, covering such a broad, decentralized initiative. Nonetheless, India has a well developed planning system that allowed the SSL to work in combination with the innovative 19 CSS. The Bank could also call on limited trust funds and mainly locally based staff to provide intensive supervision and some technical assistance. Therefore, in the context of the engagement the instrument was considered the best option at the time. 66. To make up for lack of knowledge transfer under the instrument, the Bank team has provided intensive support over an extended period of time. Success lies in following up on the implementation details of the reform process, which is critical to the sustainable effectiveness of the reforms. In this case, the intensive supervision focused on numerous detailed implementation issues that helped to promote momentum and trust between the center and the implementing agencies in the States and UTs. This is demonstrated by the intensive and frequent ‗Support Missions‘ conducted by the Bank team (unusual for a single disbursement DPL), as well as participation of the Bank in many technical meetings. This was only possible due to the commitment of staff based in Delhi, who could routinely follow up on issues as they emerged. However, this is also only possible throughout the duration of the loan, and risks a ‗sudden stop‘ with regard to the technical support of the Bank at a critical stage in the implementation of the reforms. 67. The major lesson for similar operations is that budget support for institutional reforms should only be used with strong and mature country systems, and with greater emphasis on knowledge transfer and strengthening analytical capacity. Although the operation ensured resource transfers and helped jump start the reform process, knowledge transfer is becoming a bottleneck in the implementation at the state level. Despite the lengthy and comprehensive design period, the development of the SSSPs has turned out to be a more difficult task for most of the states and only a few of the most advanced have managed to produce good quality strategic documents. The implementation of the strategies is also much more challenging task and even the most advanced states will require support in how to do the changes, particularly in terms of sharing good practices and lessons. 68. Given the experience gained so far, the design of the program might also be strengthened by incorporating intermediate steps between the actions and the final outcomes in the policy matrix. Currently there is a big gap in the matrix between the initial process steps, covered in the loan period (2010), and the expected outcomes in 2015. Setting out the trajectory of the delivery chain from the start, including the intermediate milestones, could help MOSPI better manage the pace and path of the reforms. By flexibly managing the trajectory on an ongoing basis MOSPI might be better equipped to adjust to delays, exogenous shocks and other factors. 69. The States and UTs would benefit from additional technical assistance and capacity building efforts to both develop SSSPs and implement them. Institutional strengthening programs like the ISSP require significant technical and change management resources, and the Bank has demonstrated itself well suited to provide specific technical support to the GOI and selected States/UTs and to share experiences from its global network of STATCAP projects. A further operation, which perhaps combines the advantages of a multi-year financing instrument with more dedicated resources for capacity building and peer-to-peer lesson sharing might be considered by the GOI to help support the implementation of the remainder of the ISSP. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies 70. Comments received from MOSPI are in Annex 5. Factual corrections have been incorporated into appropriate sections of the ICR, while comments were considered and 20 incorporated where the ICR team felt appropriate and following discussion with the India Bank country team. With regard to the ICR, the team again noted the challenge of assessing achievements of the program against the development outcome indicators as set out in the results framework matrix (Annex 2), considering the mismatch between the SSL closing date (July 31, 2011) and the term of the Government‘s program (the 11th five year plan, up to March 2012) as well as the 2015 targets elaborated in the ISSP and PD. (b) Cofinanciers (c) Other partners and stakeholders (e.g. NGOs/private sector/civil society) 21 Annex 1 Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Farah Zahir Senior Economist SASGP TTL Graham Eele Consultant DECDG Co-TTL Olga Shabalina Senior Statistician DECDG Team Member Dipak Dasgupta Lead Economist SASEP Team Member Giovanna Prennushi Economic Adviser SASEP Team Member Arun Manuja Senior Financial Management Specialist SARFM Team Member P.K. Subramanian Senior Financial Management Specialist SARFM Team Member Debabrata Chakraborti Senior Procurement Specialist SARPS Team Member Ashish Bhateja Senior Procurement Specialist SARPS Team Member Gennady Pilch Senior Counsel LEGES Team Member Vikram Raghavan Senior Counsel LEGES Team Member Deepa Sankar Senior Economist SASED Team Member Vikram Rajan Senior Health Specialist SASHN Team Member Ulrich Bartsch Senior Economist SASEP Team Member Richard Roberts Consultant DECDG Team Member Monika Sharma Research Analyst SASEP Team Member Kaushik Sarkar Research Analyst SASGP Team Member Rita Soni Program Assistant SASEP Team Member Jyoti Sriram Program Assistant SASGP Team Member Sapna John Program Assistant SASGP Team Member Supervision Farah Zahir Senior Economist SASGP TTL Graham Eele Consultant DECDG Co-TTL Olga Shabalina Senior Statistician DECDG Team Member Arun Manuja Senior Financial Management Specialist SARFM Team Member Richard Roberts Consultant DECDG Team Member Sapna John Program Assistant SASGP Team Member (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY10 267.07 Total: 267.07 Supervision/ICR FY11 97.83 Total: 364.90 22 Annex 2. Development Outcome Indicators Policy Area 1: Coordination and Leadership of the National Statistical System Reform Areas and Objectives Prior Actions 2007- Expected Results Status Nov 2010 Status June 10, 2011 Program 2009 End 2010 Performance 1 Strengthen strategic direction National Statistical Process identified and Brainstorming The National Program and leadership of the national Commission Report timetable agreed to session on updating Strategic Statistical Document (PD) statistical system published, August review NSSP and NSSP held at CSO. Plan (NSSP) being aimed at 2001. update, if required. revised and updated completing an Time-table on based on the updated NSSP by Chairman and required course of experiences gained in June 2011, which members of the permanent NSC actions to be prepared the implementation of was not met, appointed, July 2006. in due course. the ISSP as well as although a other recent timetable to Director General NSSP expected to be development. review and CSO post filled after updated by end 2011. update NSSP has a gap of 9 years, June It is anticipated that 2006. been agreed the revised NSSP will upon, with a First Chief be drafted by revised target Statistician of India December 2011, prior timeline for (CSI) appointment, to formal approval by referring the February 2007. the NSC in early revised NSSP to 2012 the National The NSC has, on April 30, 2008, Statistical endorsed the Commission in National Strategic early 2012. Statistical Plan (Delayed) (NSSP), which is the guiding policy document for the national statistical system in India. 23 2 Strengthen the institutional and Independent Draft rules under the Draft rules under the Rules under the Program target, legal framework for statistical statistical authority, Collection of Statistics Collection of Collection of to prepare draft activities at all levels NSC, established by Act, 2008 prepared. Statistics Act, 2008 Statistics Act 2008 rules under GoI Gazette formulated. These are approved and Collection of notification, June Draft Bill to provide a currently under formally notified on Statistics Act, 2005. statutory basis for the review for 16 May, 2011. 200. (Met) permanent NSC finalization. The Collection of prepared. Advice to data Program target Statistics Act 2008 Committee compliers and to provide a (No. 7 of 2009) has constituted to discuss respondents to advise statutory basis been enacted. the issue of providing them about the rules for the NSC still statutory basis for has prepared. in progress. NSC. Report to be (Delayed) submitted Committee in six-months. constituted to discuss establishing a statutory basis for NSC, and is expected to report back soon. 3 Improved operational efficiency ISSP approved as a High-level Steering High-level Steering High-level Steering High-level of a decentralized statistical centrally sponsored Committee for ISSP Committee met thrice Committee at the Steering system and improved scheme under the and the Standing in 2010 to review the center met six times. Committee for coordination between 11th Five Year Plan. Committee of progress of ISSP in ISSP and coordination between the center COCSSO review ISSP states/UTs, to discuss First progress report COCSSO have and the states/UTs High-level Steering implementation. First strengthening on ISSP to be met several times Committee for ISSP progress report capacity of the PSG prepared as part of to review the chaired by Secretary, disseminated and to review and the MOSPI Annual progress of ISSP. MOSPI, established revise the draft report to be issued in (Met) in September 2007. Assessment of Karnataka MoU. March 2012. capacity and needs of Target date for Conference of States and UTs Joint Review Meeting ISSP now a disseminating Central and State completed in at least 7 (JRM) organized by permanent agenda progress report Statistical States/UTs and in MoSPI and the Bank item for COCSSO on ISSP moved Organizations progress in at least 7. with participation of meetings. to March 2012. (COCSSO) six states. A progress (Delayed) strengthened to report on ISSP was NSC has completed a ensure that it meets disseminated at the review of state Assessment of 24 once every year. JRM. statistical systems capacity and and the report is needs of Standing committee ISSP implementation expected to be States/UTs of the Conference of a permanent agenda completed in completed in 10 Central and State item discussed in 17th September 2011. states (targeted Statistical COCOSSO. 7), and in Organizations has More detailed progress in a included ISSP as a SSSPs are an capacity assessments further 5 states. permanent agenda assessment of (except for Training (Met) item for its meetings. capacity and needs of Needs Analysis) the states/UTs. Only being completed as one SSSP formally part of the State endorsed by the State Strategic Statistical Cabinet. 5 SSSPs are Plans (SSSPs). available in draft form. SSSPs finalized in ten states (Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Karnataka, Kerala, Punjab, Rajasthan, Tamil Nadu and West Bengal) and are near completion in a further five (Chhattisgarh, Haryana, Mizoram, Orissa, Sikkim). Policy Area 2: Increasing Support from the Center to the States Reform Areas and Objectives Prior Actions 2007- Expected Results Status Nov 2010 Status June 10, Program 2009 End 2010 2011 Performance 25 1 Improved national standards, National standards for National standards As of November Manuals on 11 key Eleven manuals norms and benchmarks for eight key statistical (manuals) for at least 2010, ten manuals statistical activities were finalized by official statistics activities prepared, a further two key prepared by CSO finalized. the close of the approved, and statistical activities and two others in project (Thirteen disseminated. published in final draft stage (one by Nov 2011), form by CSO and five completed by end of and disseminated more under project). As of through the development. November 2011, MOSPI website. thirteen Manuals had (Met) been prepared and placed on MOSPI website: 1. Area and Crop Production Statistics, 2. Cost of Cultivation Surveys, 3. Financial and Banking Statistics, 4. National Accounts; District Domestic Product, 5. Population Censuses, 6. Annual Survey of Industries, 7. Index of Industrial Production, 8. Vital Statistics, 9. Producers‘ and Whole Sale Price Indices, 10. Agricultural Prices and Marketing, 11. Consumer Price Index, 12. 26 Horticulture and Spices Statistics and 13. Animal Husbandry Statistics. Manuals expected to be completed by 31st March 2012: i) Fisheries Statistics; ii) Disability Statistics; iii) Labour Force & Employment Statistics; and iv) Labour Statistics 2 Government of India (GoI) Budget for ISSP of Rs PSG strengthened More proactive role PSG and TSG now PSGs have been provides technical and financial 650 crores approved based on the of PSG with its report to ADG (CAP) reconstituted support to States. of which Rs 130 requirements of technical wing and and their work under the crores financed by SSSPs preparation. CAP is required. programs are being chairmanship of GoI PSG needs to be increasingly DG, CSO, and At least 10 per cent of further strengthened coordinated. The the participation The necessary the ISSP budget in terms of its work DDGs posted in of senior MOSPI institutional capacity transferred to the program and states are providing officials. PSG required to support States. resources. advice and support to reviews and the implementation of states. comments on the ISSP has been MOSPI has identified 10% of the funds are SSSPs/draft established. the needs for further not transferred to the Rs 35.9 crores (5.5% MOUs for follow- technical assistance States because of a of ISSP funds) have up prior to Senior Statistical and, if required, a delay in preparation been disbursed to review by HLSC. Officers from MoSPI proposal for of SSSPs and signing states. (Partially Met) posted in States are nonlending TA will of MoUs on which working to strengthen have been prepared. depends the fund MOSPI will ensure By June 2011, coordination between disbursal. Only seed that the DDGs are 5.5% of ISSP the Center and MOSPI provides kept informed about money of Rs 10 lacs budget technical support to 27 State/UT participating states. each has been given recent developments transferred to Governments. to 23 participating with ISSP and that States, where Progress on ISSP states. their work plans target was 10%. Senior Statistical being reported continue to include This rose to Officers posted at line regularly through Proposal for a providing support 12.3% by Nov Ministries of GoI to MOSPI website. second Non-Lending and assistance to 2011. (Delayed) improve coordination technical assistance states. Guidelines on from the Bank is MOSPI has strategic planning for under preparation by Progress on ISSP is identified needs States have been MoSPI. reported on the for further prepared and MOSPI web-site technical disseminated by The technical assistance to MoSPI. support provided by states if required, MoSPI needs but is still Information about the substantial considering ISSP, including the involvement and possible Bank progress of reforms, coordination support through a has been disseminated between PSG, FOD proposal for through the dedicated NLTA. (Partially MoSPI web site. DDGs, line Met) ministries and the CAP division. The MOSPI has demand for technical assured support from states is continued large and the technical support resources at the to participating center are states. inadequate. Progress being Progress on ISSP is reported regularly reported on regularly on the MoSPI web-site. MOSPI website. 28 (Met) Policy Area 3: Strengthening Capacity and Performance of State Statistical Systems Reform Areas and Objectives Prior Actions 2007-2009 Expected Results Status Nov 2010 Status June 10, Program End 2010 2011 Performance 1 The needs of States/UTs are Detailed assessment of At least seven As of November SSSPs have been 9 states have prioritized and individual statistical systems in all 35 States/UTs have 2010, only Karnataka completed and prepared States are facilitated to States/UTs completed and prepared SSSPs. has prepared a SSSP approved in nine SSSPs. (Met, participate in the national synthesis report published in approved by its states and are in but with program. April 2008. At least three States cabinet. SSSP drafts draft form in eight delays) have signed MoUs of Orissa, Tamil more. Letters to Chief with MOSPI. Nadu, Chhattisgarh, 3 States have Secretaries/Administrators Andhra Pradesh, Karnataka, signed MOUs inviting participation in the High-level State Bihar and Gujarat are Rajasthan and with MOSPI. ISSP issued April 2008. Steering Committee under discussion and Gujarat have all (Met, but with (HLSC) is in place in review. Government signed MOUs with delays) The governments of seven all participating States of Karnataka MOSPI. States/UTs have indicated and has met at least expected to sign HLSC in place their commitment to the twice. MoU in December A total of in 31 states. Program by signing Letters 2010. 33states/UTs have Unclear of Participation. signed LOPs. whether HLSC A total of 29 has met in all states/UTs have High Level Steering 33 signed LOPs. Committees participating (HLSC) have been Stats at least 23 out of the 29 established in 31 twice. states/UTs have states. (Partially met) HLSC in place. 13 states/UTs have organized one or more than one meeting of HLSC. 29 23 states/UTs have created separate budget head for ISSP funds. 2 Implementing the State 29 States/UTs have At least 10 per cent of It is expected that out The first installment Under10% of Statistical reform programs. designated the DES or its the funding of the total central of ISSP funds has funding equivalent as a nodal agency requirements share, three-fourth of been distributed to requirements for all statistical activities identified in MoUs funding requirement the three states that identified in have been transferred of GOK (Karnataka) have signed MOUs. MOUs has to states. will be disbursed in been 2010/11. Progress reports are transferred to Those states that have to be sent to the three signed MoUs have Karnataka will MOSPI every six signatory provided at least one submit its progress months from the States. progress report to report approved by its date of signing of (Delayed) MOSPI and these state level HLSC in the MOUs by the reports have been June 2011 (i.e. every states. Hence, Only considered by the six months). progress reports Karnataka has High-level Steering from Karnataka, submitted at Committee. A monitoring and Gujarat and least one reporting system is Rajasthan are progress report PSG completes a first yet to be established expected in June to MOSPI and review of the ISSP by PSG on ISSP and September. has been monitoring and implementation. considered by reporting system and 10 states have the High-level submits responded to the Steering recommendations to monitoring Committee. the High level questionnaire sent Gujarat and Steering Committee. out in March. Rajasthan had Further work is not yet needed to submitted coordinate the reports by monitoring and November reporting system 2011. (Delayed) Target to 30 complete a first review of ISSP monitoring and reporting system has not been met. (Not met) 3 Improving skills at the The baseline assessment of In at least seven NASA is currently NASA, the training Detailed State/UT level. the State statistical systems States/UTs: developing a Training arm of MOSPI is training needs includes estimates of the - Detailed training Needs Analysis completing a TNA assessments potential staffing gap as well needs assessments (TNA) on pilot basis in 2011-12. (TNAs) are in as an identification of low have been prepared for four states, viz. the process of priority tasks. and a training plan Orissa, Karnataka, Based on the being prepared has been developed Uttarakhand and outcomes of this by NASA. National Academy of - Appropriate Tripura with exercise MOSPI Unclear Statistical Administration policies to address assistance from will prepare whether target (NASA), central statistical manpower Institute of training strategies (in at least 7 training institute also constraints have Secretariat Training to meet the needs of states) to supports States‘ training been identified and Management States/UTs. prepare TNAs, needs. including: (ISTM), GOI. human - (i) Training to Training needs have resource policy In-service training provided increase the Also, the states/UTs also been identified constraints for regularly to improve efficiency of staff will be indicating in the 15 states with training, staff knowledge and skills in and to allow staff their training needs in draft or final movement, and States (for e.g. National to be moved from their respective SSSPs. eliminating Accounts and National one task to SSSPs and redundant or Sample Survey). another; and identifying strategies low priority - (ii) Eliminating to address manpower tasks, has been redundant and constraints. met. (Delayed) low priority tasks. The ISTM pilots will NASA has - Some initial also make conducted 18 training has been recommendations to training completed through improve skills programs so NASA. through training and far, although 31 by identifying extent of state redundancies. participation based on The pilots will be identified needs completed by July is unclear. 2011. (Partially Met) NASA has conducted 18 training programs during April- December 2010 for probationers, state and central govt. officers. Policy Area 4: Improving Coverage, Quality, Timeliness and Credibility of Statistics Generated by States Reform Areas and Objectives Prior Actions 2007-2009 Expected Results Status Nov 2010 Status June 10, 2011 Program End 2010 Performance 1 Improving the quality of An assessment report on the At least three As of November As of June 2011, Program targets key statistical activities. statistical capacities and participating 2010, only Karnataka seven states, have met in 7 states, needs of the States/UTs has States/UTs identify has indicated the finalized the actions which have been published. the actions and actions and strategies and strategies to identified actions strategies required to to improve the improve the quality and strategies to improve the quality quality of key of key statistics. improve the of key statistics and statistics in its SSSP quality of key these plans are set out and MoU. For the rest the action statistics. (Met) in the MoUs. plans are an integral For the rest of the 6 part of the draft For the rest of In a further six states states/UTs, the SSSPs and these will the States, action priorities and targets actions plans are an be reflected in the plans will been have been agreed for integral part of the MOUs. included in key statistics and draft SSSPs which SSSPs and these have been set will be reflected in MOUs. (In out in the SSSPs. their MoUs. Progress) 32 2 Increasing user awareness, 15th COCSSO decision for Advance release Only Karnataka has Only Karnataka has Advance release participation and accessibility States/UTs to establish calendars on GSDP prepared an advance prepared an advance calendar to official statistics. Data dedicated web-sites. and other agreed key release calendar release calendar. prepared in 1 users to be provided with statistics prepared in mentioned in their Other states have yet state where meta-data The SSSP guidelines require at least three SSSP. to prepare one. target was for at States/UTs to consult all participating least 3 stakeholders. States/UTs. Karnataka and Delhi Karnataka and Delhi participating have their individual have individual states. (Partially All States/UTs requested to At least half of departmental departmental web- Met) observe June 29 as Statistics participating States websites. sites. Day every year. In 2009 the are disseminating State statistics focus was on price statistics. State statistics The DES of most of The DES of most of are being through web-sites the states/UTs has the other states/UTs disseminated Participating States/UTs and other electronic their web-sites have their websites through websites supported by MOSPI to media. integrated with the integrated with the and electronic include plans to compile and main government main state media, in less publish appropriate web-site. government web-site. than half of all metadata for key statistics in participating their SSSPs. States. (Partially met) Manuals on key statistics provide guidance on metadata. 33 Annex 3. Centrally Sponsored Schemes The Centrally sponsored schemes (CSS) are the designed to meet development goals and main fiscal mechanism through which the central government can influence state development expenditure decisions. The design and policy management of CSS are derived at the center, as they are at their core, efforts by the center to influence outcomes in every state. In this scenario, they also offer an opportunity for the center to systematically address implementation problems across the system and in so doing generate the momentum for further reforms. Many elements of the accountability system are weak in India‘s current mechanisms for delivering public expenditure. Providers are typically held accountable for money spent and processes followed but not for the quality of services rendered - excessive focus on inputs, limited evidence based planning, limited local discretion on resource allocation; no systematic monitoring process, no link between spending capability, outcomes and access to finances, weak oversight, limited citizen participation in oversight. Time bound targets for many of these programs need to take an evidence�based approach and be sensitive to areas that need extra assistance. For example, data should be available on which districts or states are unable to appropriately plan or implement CSS, whether due to weak administration, a lack of existing infrastructure, or an inability to complete projects. And thereby weaker states could receive technical assistance or greater human or financial resources. Goals should also be responsive to the fluctuations of both inputs and outputs. Risk and institutional performance indicators can be used to track key contextual changes that may affect outcome achievement. CSS guidelines have very strict norms about timing and processes through which funds are released from the center to the states and onwards. Broadly, the process follows the following logic. Once plans are in place and budgets have been approved, the central government releases its first installment of finances for the state. The state then adds its share and releases requisite funds – as determined by the plans – to the district which in turn releases funds to the service delivery units. The release of funds is contingent upon various procedures being fulfilled at the state and district level. Clear, credible goals would create benchmarks that Ministries, states, and local organizations can be held to. The process approach to design and implementation could help subgroups and individuals have a clearer sense of purpose in implementing the scheme. Source: From Chaudhuri et al, Outcomes Rule: Getting Development from Development Expenditure, 2009 34 Annex 4. Stakeholder Workshop Report and Results - NA 35 Annex 5. Summary of Borrower's ICR and Comments on Draft ICR Original Letter by: Mr. T.V. Raman Deputy Director General Ministry of Statistics and Programme Implementation Central Statistical Organisation Government of India Internal Appraisal on India Statistical Strengthening Project 1. Indian Statistical System and India Statistical Strengthening Project (ISSP): The Indian Official Statistical System has the responsibility to provide adequate, relevant, reliable and timely official statistics/data sets for use in informed decision making and for the formulation of plans and programmes. This task/ function is performed at the national level by the statistical system consisting of the Central Statistics Office (CSO), National Sample Survey Office, the Office of the Registrar General of India, the various line Ministries/ Departments and Organizations of the Government of India. The Statistical System in the States, which is almost similar to that at the centre, is generally decentralized over the departments of State/Union Territories (UT) Governments. At the apex level in the States/UTs, there usually exists a Directorate (or Bureau) of Economics and Statistics, which is responsible for the coordination of the statistical activities in the States/UTs. Much of the administrative data flows from the State system to the National Statistical System and as such, the latter is dependent on the former, on many of the socio-economic data and indicators. The State Statistical System is an integral part of the Indian Statistical System and improvements in State Statistical Systems are critical to the improvement in the National Statistical System. A National Statistical Commission (NSC) under the Chairmanship of Dr. C. Rangarajan was appointed by the Government of India in January 2000 to examine critically the deficiencies in the statistical system and to recommend measures for its systematic revamping. The Commission in its report submitted to the Government in September 2001 listed several data gaps and deficiencies in the statistical system. On the basis of national consultations with all concerned stakeholders, a medium term Vision, Policy and Strategic Framework Document entitled ‘National Strategic Statistical Plan’ (NSSP) has been formulated for the purpose of guiding the course of development, 36 improvement and growth of the national statistical system. In the context of effectively addressing the various problems faced by the state statistical systems, and with a view to improving the State Statistical Systems, a centrally sponsored scheme viz. ‘India Statistical Strengthening Project (ISSP)’ has been formulated for implementation from 2010-11 during the 11th five year plan. 2. Objectives of ISSP: The objective of the ISSP is to strengthen the capacity and operations of the Indian Statistical System in line with the NSC (2001) recommendations, by strengthening the capacity of the State Statistical Systems. The project is designed to help build the required capacities at the States/UTs level to collect, compile and disseminate relevant and reliable official statistics, to serve the twin objectives of planning and policy making at the state and local levels and to provide the data that would be required at the national level. The project is essentially based on the outcomes of 35 detailed State/UT reports with regard to ―Identifying the Specific Requirements for Strengthening of State Statistical Bureaus‖. It also proposes help to develop structures to assist the line departments and other data agencies to improve the quality and coverage of the data they collect and to promote their usage at the State/District and Block levels. The project has been designed to cover the following key areas of support to the States/UTs a) Improving the coordination and management of Statistical Activities in the States/UTs; b) Developing statistical skills and capacity (Human Resource Development); c) Developing statistical infrastructure; d) Investing in physical infrastructure, including Information Technology, and e) Improving Statistical Operations(data collection, processing, management and dissemination), especially those supporting the cause of Improvement in the quality and dissemination of statistical data, particularly for 20 key statistical activities. 37 Twenty Key Statistical Activities have been identified for taking up in the Project. These are: 1) Estimation of State Domestic Product 2) Estimation of Capital formation and Savings 3) Estimation of District Domestic Product 4) Estimation of the contribution of local bodies 5) Compilation of data on major Fiscal variables 6) Participation in the conduct of Annual Survey of Industries 7) Compilation of Index of Industrial Production 8) Estimation of Crop area and Production 9) Compilation of Wholesale Price Index numbers 10) Compilation of Consumer Price Index numbers 11) Collection and compilation of Health, Morbidity and Mortality and Family Welfare Statistics 12) Collection and compilation of Education and Literacy statistics 13) Collection and compilation of Labour and Employment statistics 14) Collection and compilation of Housing statistics 15) Birth and Death registration and Population 16) Compilation of Electricity production and distribution statistics 17) Compilation of Environment and Forest statistics 18) Participation in the surveys of National Sample Survey Organisation 19) Compilation of Transport statistics 20) Collection and compilation of Statistics for local area planning. 38 3. Scope and Strengths of ISSP: India Statistical Strengthening Project (ISSP) is a comprehensive project designed to strengthen State statistical systems by way of providing adequate technical and financial support to improve both their statistical capacity and infrastructure for collecting, compiling and disseminating reliable official statistics for policy planning purposes particularly at the State and Sub-State levels. With the above primary objective, ISSP could also be perceived to act as a catalyst in facilitating implementation of National Strategic Statistical Plan (NSSP) for meeting growing data requirements both at national and international levels. It aims to strengthen the State Statistical Systems and their Statistical operations according to national standards in terms of quality, timeliness, adequacy, relevance, utility, user-friendliness and user-satisfaction. This, in turn, would help in strengthening the National Statistical System to meet the ever-growing and ever- diversifying data requirements, both at the National/Sub-National and International levels in a cost-effective and operationally feasible and efficient manner. ISSP is being implemented as a Centrally Sponsored Scheme of the Government of India (GOI) formulated during the Eleventh five-year Plan, with an approved outlay of Rs.650.43 crores of which 80% has been funded through a World Bank Loan and 20% borne by the Government of India. ISSP provides for States/UTs to sign up to a process of reform and capacity strengthening in line with the recommendations of the NSC and to adopt and follow national guidelines and standards. In return for preparing and then implementing the State Strategic Statistical Plan, the participating states receive technical and financial support through ISSP. It gives the participating State/UT a unique opportunity to make a comprehensive assessment of the existing State Statistical System in its entirety, identify the major deficiencies and potentiality and prepare a suitable realistic plan accordingly, to be implemented in phases towards accomplishing the goal. Recognizing that there are substantial differences and significant levels of disparities in the levels and status of development of the sub-national level statistical systems in India spread across various States and UTs, the ISSP has accordingly provided for, in its design, ample and adequate flexibility to the States/UTs in terms of various relevant parameters, taking necessary and due cognizance of State-specific 39 situations, requirements, variations, perceptions and priorities with regard to ‗Official Statistics‘ and the systems and organizations pertaining thereto. 4. Processes for implementation of ISSP: All the States and Union Territories (UTs) of the country are eligible to participate in and benefit from this Project. However, eventually, the project would get implemented only in all those States and UTs which decide to participate in the same and communicate/articulate their decision to do so in this regard through sending a Letter of Participation (LOP). The participating States/UTs are then required to prepare State Strategic Statistical Plan (SSSP) outlining the vision, development plan and implementation strategies for the respective State/UT. A seed money of Rs. 10 lakhs each is provided to each participating State/UT (with the exception of Haryana and Chattisgarh, which had been provided earlier with the corresponding support through an alternative instrument earlier) towards preparation of the respective State Strategic Statistical Plan (SSSP), inter-alia based on extensive interaction with all the stakeholders concerned. After getting the SSSP finalized and duly approved by the High Level Steering Committee on ISSP at State Government and subsequently at GOI Level, the MoU (Memorandum of Understanding) is signed between the Ministry of Statistics and Programme Implementation (MOS&PI), Government of India and the concerned State Government/ UT Administration on a case to case basis. On signing of MoU, the first instalment will be released in accordance with the guidelines incorporated in the SSSPs and relevant provisions of the concerned MoU to commence implementation of the Project, for which the funds are subsequently released in installments as per MoU. 5. Support provided by MOSPI to the States/UTs & institutional arrangements At the Central level, a Steering Committee on India Statistical Strengthening Project (ISSP) under the Chairpersonship of Secretary (Statistics & and Programme Implementation), Government of India, has been constituted to monitor the implementation of the Project. The Project Implementation Unit of Central Statistics Office, Ministry of Statistics and Programme Implementation, created earlier for the 40 purpose has since been suitably upgraded and rechristened as Project Support Group (PSG), which is functioning under the overall supervision and guidance of the Director General, CSO. The Project Support Group on ISSP in MoSPI has been continuously and periodically reviewing, directing and providing all the required guidelines and technical expertise with regard to all the facets of activities connected with the preparation and implementation of the State/UT specific SSSPs and the MoUs based thereon. This apart, Senior Indian Statistical Service Officers working in the Field Operations Division of National Sample Survey Office, designated as State Statistical Co-ordinators (SSCs) are also entrusted with the coordination with States/UTs as local contact points with regard to implementation of ISSP. In addition, in each of the implementing States/UTs, there are high level Steering Committees functioning under the chairpersonship of the concerned Chief Secretary/ Administrator to provide the required leadership, directions, impetus and supervision for the project implementation in the respective States/UTs, besides undertaking periodic reviews on the status and progress of the Project. Senior officials from MoSPI invariably participate in and provide their inputs, especially from a national perspective. To move, further, faster and more efficiently on the implementation of the India Statistical Strengthening Project (ISSP), a need has been recognized and endorsed by the Steering Committee on ISSP of the Government of India to organize ISSP implementation issue-oriented/ focussed workshops for the States which have already signed MOU with the Government of India and commenced implementation of the Project as also for those other States which are, in a relative and comparative sense, at a somewhat slow stage of pick-up and progress with respect to the finalisation and approval of their respective State Strategic Statistical Plans (SSSPs). All this is over and above the comprehensive and detailed reviews on all dimensions of the Project undertaken annually at the Conference of Central and State Statistical Organisations (COCSSO). Another noteworthy feature is that, during the annual events of COCSSO, review of progress on ISSP is a permanent agenda item and the only one of its kind. 41 6. Progress so far The CCEA approved ISSP on 19th March, 2010. All the States/UTs are participating in the project except Goa and Chandigarh which may also join subsequently.  Seed money of Rs. 324 lakhs has been provided to the participating 33 States/UTs to initiate the process of preparation of the respective State Strategic Statistical Plans (SSSPs).  In December 2010, Karnataka became the first state to sign MoU with Government of India and initiate implementation of their SSSP. Till March 2011, two more states viz. Gujarat and Rajasthan also signed MoU on ISSP. However, first installment of funds was released only to the State of Karnataka as per the financial plans approved. During the current year i.e. 2011-12 the Project gathered a significant momentum with the active enthusiasm on the part of the States/UTs. Till the end of 2011, three more States (Andhra Pradesh, Bihar and Tamil Nadu) have signed MoU with Government of India to start implementation of the Project. Kerala is likely to sign MoU with GOI and start implementation shortly from now.  In addition, for four more States/UT viz. Jharkhand, Mizoram, Sikkim and Lakshadweep, the finalised State Strategic Statistical Plans (SSSPs) have been approved by the GOI High level Steering Committee paving the way for signing of MoU for implementation of their SSSPs.  The States of Himachal Pradesh, Punjab and Odisha have also got their SSSP approved by the respective State High level Steering Committees under the Chairmanship of the Chief Secretaries concerned.  This apart, five other States viz. Haryana, West Bengal, Arunachal Pradesh, Delhi, and Assam have achieved significant progress in regard to finalisation of respective SSSPs (State Strategic Statistical Plans) in anticipation of getting appropriate support through ISSP, while the 42 remaining participating states are currently at various stages of progress in this regard.  Keeping in view the existing cap in terms of the approved outlay of Rs. 650.43 crores for the Project, it has been rendered necessary to restrict the number of States/UTs that can be covered during the 11th Plan period to about 15 States/UTs, with the possibility of covering the remaining States/ UTs during the 12th Plan period subject to required approvals and availability of funds.  During the current year (2011-12) the first installment of funds have been released to five States (Gujarat, Rajasthan, Andhra Pradesh, Bihar and Tamil Nadu) by the Govt. of India as per the respective MoUs. In the case of Karnataka, the State High Level Steering Committee has already undertaken a review of the progress of implementation and the case relating to the release of the second installment of funds is being processed by the Government of India. 43 A brief overview (as on 18.01.2012) of the details of the implementation of the Project in States/ UTs which have got their SSSP and draft MoU approved by GOI Steering Committee or are in advanced stages of finalization of SSSP is as follows: State/ UT MoU Signed Project term Project Cost (Rs. Funds Progress achieved (Date) Lakhs) released as From To Total GOI first Share installment (Rs. lakhs) 1. Karnataka 10.12.2010 2010-11 2013-14 4682.27 3284.68 1193.61 Progress achieved for release of 2nd instalment of funds 2. Rajasthan 24.03.2011 2010-11 2016-17 6294.00 6097.00 924.60 First installment of funds released by GOI. Implentation under progress 3. Gujarat 31.03.2011 2010-11 2013-14 5432.80 5301.55 1154.64 - do - 4. Andhra Pradesh 01.07.2011 2011-12 2013-14 6391.00 6038.00 1829.70 - do - 5. Bihar 09.08.2011 2011-12 2014-15 9357.15 9220.00 1754.25 - do - 6. Tamil Nadu 28.09.2011 2011-12 2013-14 4076.00 3934.00 1154.40 - do - 7. Kerala 2011-12 2015-16 5271.83 4937.18 937.12* SSSP & draft MoU approved by GOI Steering Committee 8. Mizoram 2011-12 2015-16 2557.50 2459.50 565.50* - do - 9. Jharkhand 2011-12 2015-16 5917.89 4500.00 519.26* - do - 10. Sikkim 2011-12 2015-16 4072.40 4036.30 479.52* - do - 11. Lakshadweep 2011-12 2015-16 800.20 639.90 37.50* - do - 12. Himachal 2011-12 2015-16 8307.15 8198.45 1339.5** SSSP cleared by Pradesh SHLSC 13. Punjab 2011-12 2016-17 9741.56 9544.05 52.02** - do - 14. Odisha 2011-12 2016-17 6553.86 5866.88 575.66** - do - 15. West Bengal 2011-12 2015-16 4964.00 4874.00 SSSP ready for approval by SHLSC 16. Haryana 2011-12 2015-16 13802.00 9568.00 -do- 17. Arunachal Pr. 2011-12 2015-16 3997.25 3959.99 SSSP being finalised 18. Assam 2011-12 2015-16 6739.46 6683.02 -do- 19. Delhi (details awaited) -do- *Funds proposed to be released on signing of MOU between the GOI and the concerned State/UT. ** SSSP and draft MoU yet to be approved by GOI Steering Committee. 44 7. Experience so far and lessons learnt: ISSP, being the first project of its kind and given the complex structure of statistical system in India, posed numerous challenges in formulation of the project, getting through various processes, approvals etc. before it was finally approved by the CCEA on 19th March, 2010. The main thrust initially was to conduct a series of interaction with the states in order to create greater awareness, understanding and appreciation about ISSP. It, not only helped in more mature review and planning in preparation of respective State Strategic Statistical Plans (SSSPs) progressively, but also stimulated momentum as evident from a substantial progress being achieved recently. It is hoped that the process will get further impetus following greater interaction and sharing of experience among the Central project support team members and the State Government officials on a regular basis. It is almost clear that ISSP, by virtue of its potential to strengthen the statistical system through provision of adequate financial and technical support, has managed to create a lot of confidence and generate significant motivation among the state statistical agencies and inspired them to gear up their efforts to accelerate the process of completion of SSSPs, sign MoUs and start implementation as early as possible. Their enthusiasm has been fuelled further and propelled with the additional support now available through 13th Finance Commission Grant, meant inter-alia, to develop statistical infrastructure, focused largely on the sub-state level. With this kind of comprehensive support (both technical and financial) now available for the State statistical systems for the first time, the prospects for witnessing significant and substantive development of state statistical systems look quite promising. What is crucial now is not only to sustain the process and the momentum built up already, but also, if possible, to accelerate and broad base it further with a view to helping the State statistical systems to realize their full potential and thereby contribute in a major way to the overall objective of strengthening the National Statistical System in India, in all its dimensions. MoSPI has recently initiated some preparatory steps and thinking towards undertaking the required comprehensive review and revision of the National Strategic Statistical Plan (NSSP). While undertaking this exercise, it is proposed to extensively utilize the experiences so far (limited it may be though) of both the Central and the 45 participating State/ UT Governments. It is also proposed to go through a process of extensive stakeholder consultations with a view, inter-alia, to determining what has worked and worked well as also what really hasn‘t. The exercise will also take a look at missing links and shortcomings, if any, in the existing NSSP, and identify new areas that may need to be featured in the revised version of NSSP, so as to ensure its relevance, comprehensiveness and efficacy are adequately addressed, in the current context. It will also be necessary to address some important issues like improving clarity in the task of preparation of SSSPs, streamlining certain procedures or modules to minimize delays in approvals or release of funds, increasing visibility of statistics both in public and administrative departments including ensuring better status and recognition of role and importance statistical personnel in the system of governance etc., in order to stimulate the process further. To sum up, ISSP is considered to be a crucial project/scheme not only for strengthening the state statistical systems, which assumes greater significance in the wake of increasing thrust on devolution of planning responsibilities and financial powers to the State and sub-state level, but it is also extremely relevant from the point of view of developing a sustainably robust and integrated statistical system in the country to compare well with its counterparts elsewhere in the World and implant, with necessary adaptations, the relevant success stories and best practices of the International Statistical System. 8. Way ahead: ISSP has been envisaged to be implemented in stages to meet the objectives and targets to be achieved in order to progress from one stage to the next, with the implementation of already approved SSSPs extending through the 12th Plan period. With the pre-implementation activities acquiring adequate pace, the implementation process is expected to gain greater momentum. It, therefore, seems absolutely necessary at this stage to not only continue but sustain this project/scheme to achieve all its designated objectives in full measure. This will be critical not only for protecting commitments made already by way of approval of 46 MoUs and investment made through disbursement of ISSP funds, but will be crucial to secure active involvement and commitment of the remaining States which are working hard in anticipation of getting similar support to pursue implementation of ISSP as early as possible. It is critical now to sustain not only the aspirations and expectations of the States/UTs which have been brought on board on the Project after a great deal of effort and persuasion, but also accelerate the progress further to drive forward the much needed statistical development process for realizing the objectives of ISSP. Such a systematic statistical development process on an extensive scale, taken up for the first time ever in India, is expected to provide a major push in collection, compilation and dissemination of more reliable statistics for planning and policy making, particularly at State and sub-State levels, besides generation of quality data to meet various and expanding data requirements at the national and international levels. ISSP is also an extremely relevant and absolutely important scheme for periodically and objectively reviewing progress on various development schemes (both central and State-Centric) being undertaken in different social sectors, including different National Flagship schemes of the Government. ******* 47 Comments on Draft ICR Report (Report No.ICR 00002107) Dated December 08, 2011 on ISSP prepared by the World Bank (received by ICR team 23 January 2012) IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-77960) 1. In Para 8, line 5, 2008 to be corrected as 2007 2. Para 26: line 1: the word ―gradually‖ may be replaced by ―steadily and surely‖; Para 26: the last sentence: it appears to be an under statement to mention that ―the pace of reforms has been some what slower......‖; also, one needs to appreciate that, in a situation wherein, given the complex nature of the project, the fact that such a CSS concerning ―Statistics Sector‖ has been taken up for the first time ever in India, the large number of procedural requirements to be gone through and several prescribed approvals that needed to be obtained, eventually the required CCEA approval for the project came through only in the second fortnight of March, 2010 and it was some more time before the World Bank loan related procedures could be completed as per requirements, it was only but natural and inevitable, in some sense, that the results expected by the end of 2010 were not fully achieved. In the light of this, the relevant portions of Para 26 may require suitable amendments/adjustments as suggested ―...the pace of reforms was restricted due to a very complex nature of the project involving a large number of complicated procedures and processes to be finalized especially in the case of such a comprehensive Project like ISSP taken up for the first time in India..‖ 3. Page 8: table titled ―RESULTS AT A GLANCE‖ Under policy area 1, the last bullet - currently all required efforts are being made to achieve this transit by end March, 2012 at any cost and therefore, instead of saying ―delayed‖, it may be stated as ―though a little behind schedule is expected to be achieved‖ Policy area 2, second bullet: second line: the word ―delayed‖ may be amended as ―delayed but recently has acquired considerable momentum‖; present delay may be covered up in the light of considerable momentum since acquired. Policy area 3, third bullet, second line ―partially met‖ seems to be a significant under statement since, by now, in more than 15 States/UTs, the HLSCs have already met and in some amongst them, even met more than once to take crucial decisions on the project at the State/UT level; ―significant progress.‖ 4. Section 3.3 ―Justification of overall outcome rating‖ : the rating given hereunder as ―Moderately Satisfactory‖ appears as an under assessment, in the light of the progress witnessed by now and the expected future progress and prospects thereon; the rating may be upgraded as ―Satisfactory‖ 5. Para 51 line 1: the string ―slower than expected‖ to be amended as ―slower than expected for certain well known reasons‖ ;it viz. the string ―slower than expected‖, seems to require, in a realistic sense, some up gradation since, although the progress till the end of fiscal 2010-11 was certainly slow, there has been a quantum jump and pick-up in the progress of work on the project during the current fiscal year 2011-12, with 11 States/UTs having already got their SSSPs 48 and MoUs based thereon approved by both the concerned SHLSCs and subsequently by the High Level Steering Committee on ISSP in the Government of India and in all likelihood, this number is presently and realistically expected to swell /grow to a number of around 15 States/UTs by end March, 2012. 6. Section 5.2 ―Borrower Performance‖; (a) Government Performance ; (b) Implementing Agency or Agencies Performance ; (c) Justification of Rating for Overall Borrower Performance – At present, for each of the three items listed above, the Rating has been given as ― Moderately Satisfactory‖ : the Government of India does not find this assessment realistic and compatible with the significant levels of progress which have been accomplished in several States/UTs on a large number of associated Process Indicators and structural improvements effected. A lot of details in this regard were shared with the ICR Mission by Ministry of Statistics and Programme Implementation, Government of India during their visit to India earlier viz. during October, 2011. A number of positive and highly encouraging factual details concerning the substantial progress of the project so far on several fronts had also come up during the course of the discussions had by the ICR Mission, initially during their State visit to Karnataka and subsequently, during the course of their detailed discussions on a large number of project related issues with the Government of Delhi. While, it may be no body‘s case to argue that the Rating given for these items now in the Draft ICR as ―Highly Satisfactory or Fully Satisfactory‖, there certainly seems to be a valid and justified case to amend this present Rating to ―Satisfactory‖, in the case of (a) Government Performance; (b) Implementing Agency or Agencies Performance; and (c) Justification of Rating for Overall Borrower Performance. 7. Annex 2. Development Outcome Indicators: Policy Area 1; item 1; the last column thereof: In the concluding portions the following amendment is required: Instead of the string ―.....with a revised target timeline for approving the NSSP in early 2012‖, the string ―.....with a revised target timeline for referring the revised NSSP for favour of perusal, comments, if any and approval to the National Statistical Commission in early 2012‖, may be inserted. 49 Annex 6. Comments of Cofinanciers and Other Partners/Stakeholders NA 50 Annex 7. List of Supporting Documents Government of India, National Strategic Statistical Plan (NSSP), June 2008, Ministry of Statistics and Programme Implementation, CSO, www.mospi.gov.in Government of India, Report on the specific requirements for strengthening State Statistical Bureaus, 2008 T. N. Srinivasan, India’s Statistical System, Critiquing the Report of the National Statistics Commission, economic and Political weekly, January 25, 2003 World Bank, India: Statistic Strengthening Loan, World Bank Implementation Support Missions Aide Memoires, November 2010, February 2011, June 2011 World Bank program documents: Report No. 43361-IN and associated Management Letter, Letter of Development Policy, Loan Agreement and ISRs Draft: Faster, Sustainable and More Inclusive Growth, An Approach to the 12th Five Year Plan, Planning Commission, Government of India, August 2011 http://planningcommission.nic.in/plans/planrel/12appdrft/12appdrft.htm Full Planning Commission Meeting: Issues for Approach to the 12th Five Year Plan, Presentation by Planning Commission, Government of India, 21 April 2011 http://planningcommission.gov.in India's Varying Growth, Map of Per Capita State Domestic Product 2008-2009 compared to India's average (100), Financial Times, 2011 , Data Source: MOSPI, Ministry of Statistics and Programme Implementation http://www.ft.com/intl/cms/s/0/ce6b11dc-0857-11e0-8527- 00144feabdc0,dwp_uuid=4c17109c-9c81-11da-8762-0000779e2340.html#axzz1f5o08Ti0 51