Middle East and North Africa | World Bank

Egypt, Arab Republic of - Second Airport Development Project

Morocco - Oum Er Rbia Water Resource Conservation Project : procurement plan

Morocco - Sustainable Access to Finance Development Policy Loan Project

Appendix (nine)

The objectives of the Second Airport Development Project for Egypt, Arab Republic of are: (i) to support the expansion of Cairo International Airport (CAI) passenger capacity to accommodate traffic growth and enhance the airport's quality of service, and (ii) to improve air transport safety and security. Negative impacts of the project include: noise pollution, air pollution, traffic and access to road, water quality, excavated waste, construction waste and general refuse, and solid wastes. Mitigation measures include: 1) to determine specific sound level measurements of typical machines to be used particularly those activities that have been identified to be noisy or produce sound levels above daytime noise criteria; 2) provide a safe and adequate diversion for every road link that is closed during the construction phase. The traffic flow to and from terminal two and the established parking lots needs to be maintained at all times; 3) all material resulting from construction must be put in a location protected from wind and regularly sprayed with water until reused for fill or disposed of outside the site; 4) temporary haul roads shall be watered whilst in use to reduce dust production during construction; 5) all hauling trucks must be securely covered to eliminate dust scatter while moving in and out of the site; 6) contractor documents should include waste management plans to include recycling of solid wastes and off site proper disposal of solid hazardous wastes; 7) all construction wastes and wastes from contractors' camps and offices will be disposed to designated sites only. Wastes are mainly large stones, loose sandy soil, paper, cement bags, wood, paint holders, and food residues; and 8) all offices are to be provided with approved sanitary facilities. Care should be given to workers" human excreta disposal in order to eliminate potential sources of infection and unsightly conditions.

Chlorination plant at terminal building 2 (TB2)

Appendix (eleven)

Appendix (twelve)

Appendix (one) part (one)

Appendix (two) part (one)

Appendix (three)

Appendix (four)

Yemen, Republic of - Additional Financing for the Second Rural Access Project

Safeguard policy frameworks

This sectoral environmental assessment for the Yemen Rural Access Improvement Program identifies expected negative environmental impacts from the project and recommends measures to mitigate them. Included among these are the following: locate and select sites so as to minimize environmental damage or disruption to current agricultural or other activities. Minimize permanent land taking. Stabilize slopes or use protective measures such as retaining walls, protection barriers, terracing or mesh gabion works. Provide adequate living and sanitation facilities for the workers, including an approved plan for solid and liquid waste disposal. Have an approved management and safety plan for storage of equipment, petroleum products, paving materials, etc., so as to minimize risk of spillage or leakage, as well as safety and emergency response procedures. At the end or the contract period, leave the site compound in a clean and rehabilitated condition. Dispose of excavated materials, removed debris and demolished structural materials and transport to dumping locations. Recover borrow pits and quarry areas. Obtain access authorization for use of water resources and address any local concerns for excessive draw-down on the water table or surface water supplies. Avoid pollution to ground or surface water supplies by providing sedimentation/septic tanks, water-incepting ditches and drains to prevent contamination of water resources; garbage separation at the source and use of organic material as compost; storage of non-biodegradable materials; temporary drains to dispose of eroded sediments; Limitation of works near wells, or covering them to prevent pollution; waste water management, including use of wastewater to irrigate camp-site plantation; not dumping chemicals, coal tar, asphalt or anything which may pollute the aquifers; refueling of plants or transfer of materials far water courses; pursuing collection and recycling; installing anti-spillage devices in storehouses, workshops and vehicle parks; locating fuel, oil and grease interceptors with impervious bed underneath the parking areas to drain the runoff into the oil interceptors and prevent contaminated discharges; and collecting used lubricants for safe disposal or recycling; building riparian buffers along the edges of ponds to prevent water contamination; and constructing bridges and culverts in the dry season.

Republic of Yemen - Emergency Social Safety Net Enhancement (EC Food Facility Grant) Project

Egypt, Arab Republic of - Power Generation Development (Giza North Power Plant) Project

Addressing climate change in the Middle East and North Africa region (MENA)

The Middle East and North Africa (MENA)is one of the regions that is most vulnerable to climate change, with the highest level of water scarcity in the world, a significant income and employment dependence on climate-sensitive agriculture, the concentration of populations and economic activity in flood-prone urban coastal zones, and the presence of conflict-ridden areas in which climate induced resource scarcity could escalate violence and political turmoil even beyond the region's boundaries. By mid-century, per capita water availability will halve by 2050 because of population growth alone, and climate change is predicted to reduce average precipitation levels by 20-30 percent in some parts of the region and to increase variability, making water harder to manage, everywhere. Additionally, the temperature in most MENA countries will increase by some 2 degrees, and in the Nile Delta a sea level rise of 0.5m could displace 2 million people and lead to more than $35 billion in loss of land, property and infrastructure. While the region has a tradition stretching back over millennia of dealing with a dry and warm climate, the policy framework prevailing in several vulnerable sectors makes the region ill-equipped to adapt to a further deterioration of climatic conditions. For example, the water and agriculture sectors are plagued by inability or unwillingness to restrict water consumption and allocate water to the highest value uses; urban expansion is seldom planned to control exposure to current climate extremes (e.g. floods, storm surges), let alone future ones.

Main report

This report is a joint product of the Jordanian Department of Statistics (DOS) and the World Bank. The report has four goals: 1) update the official Jordanian poverty line based on the 2006 Household Income and Expenditure Survey (HIES) using the methodology previously applied for the poverty assessment in 2002; 2) describe recent poverty trends; 3) understand the reasons for the discrepancy between the results of formal statistical analysis and popular perceptions of poverty trends; and 4) provide preliminary information about the distributional impacts of fuel subsidies and measures to compensate for fuel subsidy elimination. Using 2006 as the base year, the Jordanian poverty line was JD 46.3 per person per month. In 2006, 13 percent of the population was below the poverty line. The highest rate of poverty was observed in Mafraq governorate. Although Amman has the lowest poverty rate of all governorates, it is home to the largest number of poor individuals due to the concentration of population in Amman. Several sub-districts, including Rwashed, Wadi Araba and Aghwar Janoobiyah have very high rates of poverty. Disturbingly, income would have fallen for most Jordanians if not for growth in transfer income. The growth in transfer income was primarily due to transfers made to compensate for the April 2006 fuel price increases and gifts to government employees announced by the King on holidays. Income before transfers is comprised mainly of property/rental and labor income. Property/rental income fell between 2002 and 2006, apparently reflecting the dis-saving trend also observed at the macro level. Labor income was stagnant for most Jordanians, although the wealthiest quintile saw significant gains.

Appendices

Republic of Yemen - Schistosomiasis Project

The project Morocco - Sustainable Access to Finance DPL is now in the pipeline.

2009-11-22T05:00:00.000Z

The project Morocco - Sustainable Access to Finance DPL is now in the pipeline. To see more information, see the project information in the World Bank project database

The project RY-Climate Resilient ICZM is now in the pipeline.

2009-11-22T05:00:00.000Z

The project RY-Climate Resilient ICZM is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank’s Fund for Poorest Countries Delivers Record Support during Global Crisis

2009-11-20T20:02:50.000Z

Contact:

In Washington: Angela Furtado (202) 473-1909

Afurtado@worldbank.org

WASHINGTON, November 20, 2009 – World Bank management and representatives of 45 donor and 12 borrowing countries today concluded a three-day review of the performance of the International Development Association (IDA), the World Bank’s fund for the 79 poorest countries, that has delivered record support during the global economic crisis.

The three-day review of the 15^th replenishment period (IDA15), which covers funding from July 2008 to June 2011, included discussions on IDA’s policy and financial framework, the impact of the crisis on low-income countries, and measures to ensure swifter and more effective support to countries affected by crises. In particular, the group advanced a proposal for the creation of a Crisis Response Window in IDA15.

“We are very encouraged by donors’ and partners’ recognition of IDA’s overall performance and effective response to the global economic crisis,” said World Bank Group President Robert B. Zoellick. “Although IDA operates under a fixed, three-year financial envelope, we have leaned forward, including through front-loaded and fast-tracked assistance, to scale up support to poor countries severely hit by the crisis. As a result, IDA’s lending commitments in the course of IDA15 have hit record levels.”

Following recent calls from the G-20 and the Development Committee, the Mid-Term Review of IDA15 advanced a proposal for the creation of a dedicated crisis response window in IDA to assist low income countries mitigate the impact of the global economic crisis.

“The financial gap created by the global crisis not only jeopardizes the progress made by countries, such as Rwanda, whose governments have been working hard to implement important reforms, it also reduces our chances of achieving the Millennium Development Goals by 2015. A crisis response window in IDA15 will help us mitigate the short-term impacts of crises without sacrificing long-term efforts,” said James Musoni, Rwanda’s Finance and Economic Planning Minister, who participated in discussions about the impact of the crisis on low-income countries.

“We are delighted by the support of donors and partners for the creation of a crisis window within IDA15,” said Zoellick. “We will now be submitting the proposal to the IDA Board of Directors for approval.”

“While there are signs of recovery in developed countries, the risk of deepening poverty remains real in IDA countries.” said Ngozi Okonjo-Iweala, World Bank Managing Director and Chair of the IDA15 Mid-Term Review. The crisis response window in IDA15 would provide additional funding for the protection of core spending on health, education, safety nets, infrastructure and agriculture in IDA-only countries.

Record Lending and Effective Response to the Crisis

In the first 15 months of IDA15 (July 2008-October 2009), IDA commitments reached a record level of $16.9 billion; a 50 percent increase over the comparable period in IDA14. This reflects a strong IDA15 replenishment size (which increased by 30 percent to $42 billion) as well as IDA’s front-loading and fast-tracking of operations in response to the financial crisis. IDA’s disbursements in the same period were close to $14 billion, with a sharp increase in the first four months of FY10 (July 2009-October 2009) when they reached $4.6 billion compared to $2.4 billion a year earlier.

Africa continued to be IDA’s largest recipient, with 55 percent of total commitments and 46 percent of total disbursements. South Asia came in second, accounting for about a third of commitments and disbursements.

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For more information on IDA and access to the technical papers prepared

for the IDA15 Mid-Term Review, please visit: www.worldbank.org/ida

The project Jordan Recovery under Global Uncertainty Development Policy Loan has changed to Active

2009-11-20T05:00:00.000Z

The project Jordan Recovery under Global Uncertainty Development Policy Loan has changed to Active. To see more information, see the project information in the World Bank project database

The Recovery under Global Uncertainty Development Policy Loan (DPL) Program supports the Government's efforts to address economic and social consequences of the current global financial crisis and economic slowdown while improving resilience of the Jordanian economy to adverse shocks. Specifically, it supports policy measures which: (i) reduce fiscal vulnerability by broadening the tax base and enhancing effectiveness of government expenditures; (ii) strengthen the financial sector by further enhancing regulation and supervision and improving access to finance; (iii) improve the business climate to encourage more private sector investment; and (iv) facilitate access of vulnerable groups to a more effective and fiscally sustainable social protection system. The Government has requested the Bank to prepare the DPL as part of its rapid response actions aimed at supporting the real sector of the economy, including by diversifying its financing instruments (which over the recent years relied mostly on domestic market), while consolidating the long standing cooperation with the World Bank in advancing the key structural reforms that has been at the core of implementation of the Country Assistance Strategy (CAS).

Jordan: Recovery under Global Uncertainty Development Policy Loan Program

2009-11-19T21:50:41.000Z

WASHINGTON, November 19, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$300 million equivalent

Terms: Maturity = 20 years; Grace Period = 5 years

Project ID: P117023

Project Description: The Recovery under Global Uncertainty Development Policy Loan Program aims to support the government of Jordan’s efforts to address economic and social consequences of the current global financial crisis and economic slowdown while improving resilience of the Jordanian economy to adverse shocks. Specifically, it supports policy measures that: (i) reduce fiscal vulnerability by broadening the tax base and enhancing effectiveness of government expenditures; (ii) strengthen the financial sector by further enhancing regulation and supervision and improving access to finance; (iii) improve the business climate to encourage more private sector investment; and (iv) facilitate access of vulnerable groups to a more effective and fiscally sustainable social protection system.

Media Contact

Najat Yamouri

202-458-1340

nyamouri@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P117023

World Bank Approves US$300Million Loan to Support Jordan’s Economic Rebound

2009-11-19T18:37:47.000Z

Contacts:

In Washington:

Najat Yamouri (1- 202) 458 1340

nyamouri@worldbank.org

In Beirut:

Mona Ziade (961-1) 987 800 ext. 239

mziade@worldbank.org

WASHINGTON, November 19, 2009 – The World Bank has approved a US$300 million Development Policy Loan (DPL) to Jordan to support the Government’s medium-term development program in the context of the current global economic crisis.

The approval of the Recovery under Global Uncertainty Loan, came during a meeting of the World Bank’s governing Board of Executive Directors in Washington on Thursday (November 19, 2009). Under the agreement, the borrower will repay the loan over 20 years, including a five-year grace period.

The overall objective of the DPL is to support the Government’s efforts to improve the economy’s resilience to adverse shocks. It was first proposed in Jordan’s Country Assistance Strategy (CAS) for 2006-2010, but became necessary in the past year, when the kingdom’s economy began feeling the pinch of the global financial and economic downturn.

The DPL will provide support to four key policy areas: (i) reducing fiscal vulnerability by broadening the tax base and enhancing effectiveness of Government expenditures; (ii) strengthening the financial sector by further enhancing regulation and supervision and improving access to finance; (iii) improving the business climate to encourage more private sector investment; and (iv) facilitating access of vulnerable groups to a more effective and fiscally sustainable social protection system.

“This is a robust program reflecting the Government’s commitment to key fiscal and structural reforms, which mitigate the adverse impact of the global crisis, while addressing longer-term development challenges of sustaining growth and poverty reduction,” Country Director, Hedi Larbi said of Jordan’s program. “I want to thank the Jordanian authorities for their commitment and excellent cooperation with the World Bank.”

While the DPL operation is a stand-alone program, it consolidates the key priorities of Jordan's National Agenda, and supports the three pillars outlined in the CAS: (i) strengthen the investment environment and build human resources for a value-added, skill-intensive and knowledge-based economy; (ii) reform social protection and expand inclusion; and (iii) restructure pubic expenditures and support public sector reform.

“We believe that this is an important operation for Jordan and one that will pave the way for better growth and job creation” noted Sebnem Akkaya, Lead Economist.

The World Bank’s work program in Jordan currently consists of eight projects, totaling US$288.5 million, focusing on education, social protection and urban development. The portfolio includes grants supporting environmental projects (US$18.15 million), and one (US$254,000) earmarked for “Measuring the Impact of National Policies and Strategies on Gender.”

For more information on the World Bank program please visit

www.worldbank.org/mna

www.worldbank.org/jo

World Bank Announces Landmark Policy on Access to Information

2009-11-17T22:22:13.000Z

Contacts:

Geetanjali Chopra

1 (202) 473-0243

gchopra@worldbank.org

WASHINGTON, Nov. 17, 2009 – The World Bank’s Board of Executive Directors today approved the Bank’s new policy on access to information which positions the Bank as a transparency leader among international institutions. The policy was informed by extensive external and internal consultations held in 33 countries and through the Bank’s external website. It reflects the views of member countries, civil society organizations, academia, parliamentarians, media, the private sector, international organizations, donor agencies, and Bank staff.

The new policy represents a fundamental shift in the Bank’s approach to disclosure of information – moving from an approach that spells out what documents it can disclose to one under which the Bank will disclose any information in its possession that is not on a list of exceptions. The policy statement will be finalized in December 2009 and become effective on July 1, 2010. A progress report will be presented to the Board by the end of 2011.

“This paradigm shift underscores the Bank’s commitment to transparency and accountability and recognizes their fundamental importance to development and to achieving the Bank’s mission of overcoming poverty and improving development effectiveness,” said World Bank Group President Robert B. Zoellick.

“I am personally grateful to all of the civil society organizations, government officials, and citizens of our member countries who contributed their ideas and perspectives as we developed this new policy through a global consultation process. We have collectively come up with a policy that is in line with international best practice and opens up the development process by fostering public ownership, partnership, and participation in World Bank-supported operations from a wide range of stakeholders,” he added.

The policy on access to information provides for the disclosure of more information than ever before – on projects under preparation, projects under implementation, analytic and advisory activities (AAA), and Board proceedings. This information will be easily accessible on the World Bank’s external website and available through the InfoShop, public information centers, and the World Bank Group Archives.

At the same time, the policy strikes a balance between maximum access to information and respect for the confidentiality of information pertaining to its clients, shareholders, employees, and other parties.

Recognizing that the sensitivity of some information declines over time, the policy provides for the eventual declassification and disclosure of restricted information over a period of five, 10 or 20 years, depending upon information type.

“Openness promotes inclusiveness, engagement with stakeholders and public oversight of Bank-supported operations,” said Jeff Gutman, Vice President, Operations Policy and Country Services Vice Presidency. “This in turn will strengthen participation in the design and implementation of projects and policies and improve development outcomes,” he added.

The new policy includes clear procedures for responding to requests for information, as well as an appeals mechanism for requesters who believe that the Bank has unreasonably denied access to information that should be publicly available. This appeals mechanism includes review by an independent body consisting of international experts.

Over the next several months, the Bank will put in place measures that will enable effective and efficient implementation of the new access to information policy. Such measures include staff training; improving information management and technology systems; developing an effective document tracking system; strengthening the Archives Unit, the InfoShop, and the public information function in country offices; and establishing associated service standards.

The final policy statement incorporating comments from the Board will be issued in December 2009.

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Background

Over the past 15 years, the Bank’s policy on information disclosure has evolved in response to changes in the Bank’s business, the growing expectations of stakeholders, and the Bank’s continued commitment to enhancing transparency about its operations. The Executive Directors and Bank Management have periodically reviewed the policy and expanded its scope: for example, in 1993, 2001, and 2005.

For more information, please visit: www.worldbank.org

The project Al-Qatrana Power has changed to Dropped

2009-11-17T05:00:00.000Z

The project Al-Qatrana Power has changed to Dropped. To see more information, see the project information in the World Bank project database

The objective of the Al Qatrana Power Project is to strengthen security of energy supply in Jordan in an economically and environmentally sustainable manner. There are four components to the project. The first component of the project is the power station: the power station will use natural gas as the main fuel and distillate fuel oil (DFO) as a back-up. The plant site is about 90 kilometers south of Amman and 250 kilometers north of Aqaba, in the vicinity of Al-Qatrana town. The plant will be of a traditional design with two gas turbines, two heat recovery steam generators (HRSGs), one steam generator (130 MW, supplied by Skoda Power as.), an air-cooled condenser, and other associated equipment and structures. The second component of the project is the electricity connection: the plant will be connected to the power system through a 500-meter long, 132-kilovolt (kV) electrical transmission line. The cost is approximately JD 3.1 million (USD 4.4 million), which will be absorbed by National Electric Power Company (NEPCO). NEPCO will purchase all of the plant's electrical output through a 25-year PPA. The third component of the project is the fuel supply: The project will use natural gas that will be supplied from the high-pressure Arab Gas Transmission Pipeline (AGTP), which carries natural gas from Egypt to Jordan and further on to Syria and passes next to the power plant site. The fourth and the final component of the project is the water supply: water will be supplied by Water Authority of Jordan (WAJ), which will construct and own an approximately two-kilometer long water pipeline from a pumping station on the water main line to the delivery point at the project site at a cost of about JD 100,000 (USD 140,000), paid by the Qatrana Electric Power Company.

World Bank Workshop: The Solid Waste and Environmental Management Project 'Zahrat Al-Finjan Landfill' - Lessons Learned

2009-11-16T12:30:00.000Z

Contact
In West Bank and Gaza: Mary Koussa
mkoussa@worldbank.org

Ramallah, November 5, 2009 - The World Bank held in Ramallah an intensive learning and results oriented workshop on the World Bank Solid Waste and Environmental Management Project on Thursday, November 12, 2009 to discuss the results and lessons learned from the Project’s implementation. The World Bank presented its findings and the draft Implementation Completion Report to an audience of a range of stakeholders, and sought feedback and inputs from the audience in the ensuing discussion. This feedback will be reflected in the final version of the Report.

“We dedicate enormous attention to the Solid Waste Sector,” said Mr. Mazen Ghonaim, Deputy Minister of the Local Government Ministry. “We regard this high standard project as protector of the environment in the North of West Bank. 85 uncontrolled dumpsites were closed and rehabilitated eliminating risks in the Northern Palestinian territories. A new landfill was constructed at Zahrat al-Finjan which now serves all the Northern West Bank Governorates. The key factor for the success of this Project is not limited to the construction of a sanitary landfill in Jenin Governorate but also to the strong management of its operation”.

Ms. Dina Abu-Ghaida, World Bank Deputy Country Director in West Bank and Gaza, said: “The World Bank feels that this important large infrastructure project is the result of a strong leadership and ownership of the key stakeholders. This learning session will contribute to future design of new projects and the World Bank encourages open discussion”.

The European Commission represented by Mr. Anastasios Frangos, acknowledged the accomplishments of the project and as a result the EC will maintain its financial contribution in partnership with the World Bank for the new Southern West Bank Solid Waste Management Project, to serve the governorates of Bethlehem and Hebron.

Through the good will of the Jenin Joint Services Council (JSC), the project is now serving in addition to Jenin Governorate the governorates of Nablus, Tulkarem and Qalqilia; expanding from a planned 200,000 to approximately 600,000 beneficiaries. The total cost of the Project was US$ 14.5 million with contribution from the Palestinian Authority (US$ 1.25 million), the World Bank (US$ 9.45 million) and the European Commission (US$ 3.8 million)

The workshop featured a number of presentations by Mr. Hani Shawahneh, Jenin JSC Executive Manager, and Mr. Ibrahim Dajani, the World Bank’s Team Leader, and was attended by representatives of Ministry of Local Government, Ministry of Planning, Participating Municipalities, Donors, NGOs and Private Sector. Participants reviewed the achievements of project objectives, the economic and financial perspectives as well as environmental and social considerations. The discussions were expanded to topics of concern such as the development of a national strategy for solid waste management, the assessment of quantifiable benefits, the difficulty in closing dumpsites, issues related to odors and leachatte infiltration, the need for continued public awareness and the replication of Zahrat Al-Finjan Sanitary Landfill.

The Project has successfully constructed this state of the art sanitary landfill, a first of its kind in the Middle East Region.

World Bank and Partners Award $4.8 Million to 26 Innovative Ideas to Save the Planet

2009-11-13T16:30:32.000Z

Contacts:

In Washington:

Edith Wilson, +1-202-473-1104

ewilson1@worldbank.org

Jonathan Daly, +1-202-458-2624

jdaly1@worldbank.org

WASHINGTON, November 13, 2009—Close to $5 million in grant money has been awarded to 26 innovative climate adaptation projects, through the 2009 Global Development Marketplace, a global competitive grant program to fund innovation in development.

This year’s contest—‘100 Ideas to Save the Planet’— set a simple challenge: come up with one idea from your own community to help save the planet and its people from the effects of climate change. This ninth annual Development Marketplace was co-sponsored by the Global Environment Facility (GEF), the International Fund for Agricultural Development (IFAD), the Danish Ministry of Foreign Affairs, and the World Bank.

This year’s event, which ran from November 10-13, featured 100 finalists from 47 countries selected from over 1,700 project proposals. The winning concepts announced today will be implemented in East Asia and the Pacific (5), Europe and Central Asia (2), Latin America (13), the Middle East, North and Sub-Saharan Africa (4) and South Asia (2).

“The Development Marketplace is an important part of our mission to break down funding barriers and promote innovative entrepreneurial ideas at the grass-roots level." said Monique Barbut, CEO and Chairperson of the Global Environment Facility (GEF).

Winning ideas receive up to $200,000 in seed money, as well as guidance, and technical support as projects move into implementation. More than this though, all participants benefit from being able to hone their project design skills; by participating in knowledge and skills development sessions designed to help make them better development practitioners on their return home—win or lose.

"Managing risks from climate change will require not only one hundred, but thousands of ideas from communities all over the world," said Katherine Sierra, Vice President of Sustainable Development at the World Bank. "This year’s contest was an opportunity to showcase the kind of creative thinking that can deliver tangible results in our work on climate adaptation. We will be watching how this year’s winners put their ideas into action."

Stand-out ideas from this year’s contest included:

· From Serbia: SZTR Sunce’s initiative to mitigate the effects of climate change induced bacterial blooms on commercial fishponds;

· From the Philippines: The University of the Philippines’ (Los Baños) ‘Bell and Bottle’ initiative – providing a low cost, high efficacy flood and landslide warning system;

· From Ecuador: International Network for Bamboo and Rattan’s idea to build elevated bamboo houses, essentially lifting communities in flood zones out of harm’s way

This year’s contest took place amid a wider pre-Copenhagen international discussion around climate change and its effects on developing countries. Many ideas combined traditional knowledge with 21st-century technology, as participants found creative ways to innovate, taking cues from both the ancient and the modern. Ideas included painting rocks around glaciers white to slow melting, to leveraging mobile telephony and SMS technology to strengthen disaster preparedness.

“Agriculture is where climate change, food security and poverty reduction intersect.” said Kanayo F. Nwanze, President of the International Fund for Agricultural Development (IFAD). “The Development Marketplace is an excellent platform for scouting and collecting new ideas from diverse sources, fostering innovative solutions, and developing partnerships in support of climate change adaptation.”

Past winners have gone on to address pressing needs in their home communities. Many have seen their project concepts replicated elsewhere. The Kanchan Arsenic Filter project, a 2003 winner sponsored by the Massachusetts Institute of Technology, has been scaled up with compelling results. The project, first implemented in Nepal, has been expanded to Cambodia, Vietnam and Bangladesh. To date, over 7, 000 filter units have been distributed, serving 30,000 people in the region. Pump Aid, a 2006 winner of a $120,000 grant, went on to secure an additional $25 million to expand water and sanitation services to reach eight million people in Zimbabwe and Malawi over five years.

“I believe that Development Marketplace is a very good example of how to facilitate innovation – giving us tangible solutions on complex development issues like climate change adaptation,” said Ulla Toernaes, Danish Minister for Development Cooperation. “We have through our own experience seen how innovation has helped transform Denmark’s energy consumption patterns and created new business opportunities like wind energy.”

Speaking at the Development Marketplace award ceremony, Sanjay Pradhan, Vice President of the World Bank noted, “Among the World Bank's most important roles is scanning the horizon for innovative emerging ideas. Then our job is to identify, select and help scale up those innovative solutions. Development Marketplace winners over the years have proved the value of bringing fresh voices and ideas to the development discussion, and that it is possible to turn good ideas into tangible results.”

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About the Development Marketplace

The Development Marketplace is a competitive grant program that identifies and funds innovative, early-stage development projects with high potential for impact and replication. The program is supported by a consortium of partners including the World Bank.

This year’s contest gathered ideas around climate adaptation in developing countries, placing special focus on indigenous communities dealing with climate risks, climate adaptation and disaster risk management, and managing climate risks in ways that provide multiple benefits—eliciting ideas to help people deal with the effects of climate change, especially those living in some of the earth’s most vulnerable ecosystems.

A rigorous assessment by 200 specialists from within and outside the World Bank Group narrowed the list of 1,700 proposals to 100 finalists who were invited to present their ideas in Washington, D.C. this week. Since 1998, the Development Marketplace has awarded more than $61 million to initiatives identified through global, regional, and country competitions.

For more information about the Development Marketplace visit: http://www.developmentmarketplace.org

Visit our blog: http://blogs.worldbank.org/dmblog

Follow us on Twitter at: http://twitter.com/WorldBankDM

Visit our YouTube Channel: http://www.youtube.com/user/DevMarketplace2009

The project Emergency Social Safety Net Enhancement (EC Food Facility Grant) is now in the pipeline.

2009-11-12T05:00:00.000Z

The project Emergency Social Safety Net Enhancement (EC Food Facility Grant) is now in the pipeline. To see more information, see the project information in the World Bank project database

New World Bank Report Calls for a Level Playing Field for Business in the Middle East and North Africa Region

2009-11-09T14:26:21.000Z

Contacts:
In Washington:
Najat Yamouri, +1-202-458-1340
nyamouri@worldbank.org

In Cairo:
Eman Fouad Wahby, 202 2574 1670
ewahby@worldbank.org

Cairo, November 9, 2009 – A new report released by the World Bank’s Middle East and North Africa (MNA) region, From Privilege to Competition: Unlocking Private-Led Growth in the Middle East and North Africa, finds that the private sector is not yet generating enough jobs and sustaining higher growth in the region. A stronger private sector is needed as an estimated 40 million new jobs have to be created in MNA in the next decade. For this to occur, countries in the region need to reduce discretion in the business environment to encourage more entrepreneurs to invest. The playing field must be leveled for the region’s businesses. It will require increasing transparency and strengthening institutions that enforce the rules.

Reforms implemented over the past two decades allowed private enterprises to become the principal source of wealth generated in MNA economies outside hydrocarbons and mining. However, the private sector has still not been able to transform MNA countries into diversified, vibrant economies with sustainable high growth record. With private investment averaging around 15 percent of GDP, MNA remains far behind more dynamic regions. Export diversification has increased recently. Yet, the best performers in the region export around 1,500 goods—most of them low in technological content—compared with close to 4,000 in countries like Poland, Malaysia or Turkey.

Although investment climate reforms have accelerated in many countries, the issue is not only the extent of reforms, but how they’re implemented. The report estimates that in response to previous reforms, private investment in the MNA region had increased by a modest 2 percentage points of GDP, compared to 5 to 10 points in Asia, Eastern Europe and Latin America. The limited impact of reforms in MNA is due to the unequal and unpredictable way in which policies are implemented, resulting in a lack of reform credibility in the eyes of many investors. Close to 60 percent of business managers surveyed do not think that the rules and regulations are applied consistently and predictably. These surveys also show that policy uncertainty, unfair competition and corruption appear as major concerns for investors.

As the business environment does not apply equally to everyone, new generations of entrepreneurs have been slow to emerge and compete with incumbents. The report estimates that the number of registered businesses per 1,000 people is less than a third of that in Eastern Europe and Central Asia. And with less entry and exits of firms, the average business is ten years older than in East Asia or Eastern Europe.

According to the report, unleashing the entrepreneurship potential of the region will require moving from deeply rooted privileges to a level playing field for all investors. “MNA is a region endowed with considerable human capital, creativity and resources, and its growth potential is immense. Meeting that potential will require a credible commitment to reduce discretion and ensure a more equal enforcement of the rules, so that more entrepreneurs can invest and create jobs.” said Shamshad Akhtar, MNA Vice President.

The report calls for a three pillar strategy for building a stronger foundation for longer term growth: First, governments need to remove formal and informal barriers to competition. Where they exist, privileged positions and conflicts of interests between public servants and private investors should be reduced. Second, policy reforms must be supported by strengthening the institutions that regulate markets and interact with firms, in order to reduce interference and discretion in the enforcement of rules and regulations. “To really improve the business environment for all in the region, transparency, accountability and quality of service in public agencies should be at the core of the reform agenda” added Shamshad Akhtar. Third, the region must foster a new partnership between the private and the public sectors, one that mobilizes all stakeholders in the design, implementation and evaluation of economic policies. Only then will consensus be built around the reforms, and their credibility and effectiveness reinforced. A more open dialogue between governments and the private sector will also help guard against narrow interests taking over the public interest. As Shamshad Akhtar notes: “The private sector has also a responsibility in this agenda. Too often, its voice has been dominated by proponents of the status quo in order to maintain their privileges. Already, a new generation of entrepreneurs is slowly emerging in MNA. Their ability to influence the future direction of reform will be crucial”.

The report emphasizes that the private sector in the MNA region needs to be a stronger agent of change. Its needs to be more inclusive and better organized to demand reforms that benefit all firms.

For more information on the World Bank please visit
www.worldbank.org/mna
www.worldbank.org/eg

And to read Louis Kuijs’s blog on the Chinese economy, go to:
http://blogs.worldbank.org/eastasiapacific/team/louis-kuijs/

Africa to Receive $1.1 billion in New Financing for Climate Action

2009-11-05T17:26:11.000Z

Contacts
In Barcelona: Robert Bisset +1 202 415 9646
rbisset@worldbank.org
In Washington: Roger Morier (202) 473-5675
rmorier@worldbank.org
Jeff Brez (202) 458-7628
jbrez@worldbank.org

Barcelona, 5 November, 2009— African efforts to invest in clean energy and prepare for the devastating consequences of climate change have received a boost with six countries set to receive $1.1 billion in new financing for climate action. From solar water heaters to wind power development and development policy planning, a range of new, scalable investments were given the green light at Trustee meetings of the Climate Investment Funds (CIF) in Washington.

Mozambique, Niger and Zambia will each receive up to $50-70 million in additional resources to help transform their economies through climate resilience. While, Morocco and South Africa will join Egypt in receiving very low-interest loans for $150 million, $500 million, and $300 million respectively, to strengthen their investments in clean energy in support of national priorities for low carbon development.

“The CIF support for Africa is coming at a critical time. Climate change has the potential to turn back the clock on hard won development gains across the continent,” said Katherine Sierra, Vice President of Sustainable Development at the World Bank. “CIF financing is teaching us how to work together with governments, civil society and the private sector to make truly transformational investments a reality. Each CIF dollar so far is leveraging an additional ten dollars in private and public investments,”she said.

The Climate Investment Funds are a unique pair of financing instruments designed to test what can be achieved to initiate transformational change towards low-carbon and climate-resilient development through scaled-up financing channeled through the Multilateral Development Banks. The two funds are the Clean Technology Fund (CTF), financing scaled up demonstration, deployment and transfer of low-carbon technologies for significant greenhouse gas reductions within country investment plans; and the Strategic Climate Fund (SCF), financing targeted programs in developing countries to pilot new climate or sectoral approaches with scaling-up potential.

In Africa, where access to energy is critical for economic growth and, therefore, poverty alleviation, the challenge is to help countries obtain the energy they need, without aggravating climate change.

South Africa will receive $500 million from the CTF to support its goals of generating four percent of the country’s electricity needs from renewable energy by 2013, improving energy efficiency by 12 percent by 2015 and providing 1 million households with solar water heating over the next five years. In support of the government’s strategies, the CTF financing will focus on scaling up grid-connected solar thermal power, utility-scale wind power development, solar water heaters, and demand-side energy efficiency. It is expected that the new investments will mobilize additional financing of about 1$ billion from bilateral and multilateral funders, as well as the private sector.

Morocco will receive $150 million from the CTF to help establish a national “Fond de Developpement de l’Energie (FDE - Energy Development Fund), a funding mechanism which will serve as a central pillar of the government’s strategy to enhance energy security and pursue low-carbon growth. With CTF support, it is expected that the FDE will mobilize additional financing in the range of $1.5 - 2 billion to help meet the country’s goals, including a 600% increase in wind power and a 15% reduction in energy use in buildings, industry, and transport by 2020.

Egypt will use the $300 million from the CTF to support relevant sector development policies and strategies, such as the Power Sector Strategy and Greater Cairo Urban Transport Strategy. In particular, the financing, endorsed by the CTF Trust Fund Committee earlier this year, will be used to develop wind power and low carbon urban transport systems.

Mozambique, Niger and Zambia all share dramatic risks in potential loss of land, life and livelihoods as a result of climate change. They will each receive up to $50-70 million in grants and/or very low interest loans to help integrate climate risk and resilience into their core development planning. They have been selected as pilot countries for the SCF’s Pilot Program for Climate Resilience (PPCR), which is still in early stages of implementation. Each country has demonstrated both the urgent need for resilience strategies and the commitment to rigorously integrate such strategies into their overall poverty reduction and development plans, including through national adaptation program of actions.

In Africa, the African Development Bank and the World Bank Group jointly implement the CIF, in cooperation with governments, United Nations and other partners.

Agreed in 2008, donor countries have pledged over US$6 billion to the CIF. The CTF and SCF trust fund committees have equal representation from developed and developing countries. Recognizing the imperative of climate change deliberations underway in the UN Framework Convention on Climate Change, the CIF were designed as an interim measure to strengthen the global knowledge base for low-carbon and climate-resilient growth solutions.

The CIF, implemented jointly by the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Finance Corporation, and World Bank, is comprised of the CTF to provide scaled up financing for the demonstration, deployment and transfer of low carbon technologies that have a significant potential for long-term greenhouse gas emissions savings; and the SCF, a suite of three targeted programs to pilot new approaches to climate action, each with potential for scaled up, transformational action: the Pilot Program for Climate Resilience (PPCR), the Forest Investment Program (FIP) and the Program for Scaling Up Renewable Energy in Low Income Countries (SREP).

For more information, please visit www.climateinvestmentfunds.org

The project EG-Farm-level Irrigation Modernization is now in the pipeline.

2009-11-04T05:00:00.000Z

The project EG-Farm-level Irrigation Modernization is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Morocco - Public Administration Reform IV is now in the pipeline.

2009-10-31T04:00:00.000Z

The project Morocco - Public Administration Reform IV is now in the pipeline. To see more information, see the project information in the World Bank project database

The project IQ-Iraq Consultative Service Delivery Program is now in the pipeline.

2009-10-22T04:00:00.000Z

The project IQ-Iraq Consultative Service Delivery Program is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Jordan, WBG, Israel, Egypt -Sub regional initiative for Avian Influenza has changed to Closed

2009-10-22T04:00:00.000Z

The project Jordan, WBG, Israel, Egypt -Sub regional initiative for Avian Influenza has changed to Closed. To see more information, see the project information in the World Bank project database

The project Egypt Enhancing Access to Finance for Micro and Small Enterprises is now in the pipeline.

2009-10-15T04:00:00.000Z

The project Egypt Enhancing Access to Finance for Micro and Small Enterprises is now in the pipeline. To see more information, see the project information in the World Bank project database

The Marseille Center for Mediterranean Integration is launched

2009-10-09T12:53:53.000Z

Contacts:
In Marseille/Paris
Valérie Chevalier
vchevalier@worldbank.org
+ 33 1 40 69 30 48

In Washington DC
Najat Yamouri
nyamouri@worldbank.org
+ 1 202 458 1340

Marseille, October 9, 2009 – The World Bank launches, together with the European Investment Bank, the Governments of Egypt, France, Jordan, Lebanon, Morocco and Tunisia, and the City of Marseille, the Marseille Center for Mediterranean Integration (MCMI). The Center will facilitate access to best knowledge and practices and improve cooperation to support development policies geared towards greater integration and convergence in the Mediterranean Region.

Development challenges in the Mediterranean region are increasingly complex and have to deal with interdependence in many areas. The Center will offer a platform for public and independent institutions from the region to discuss these challenges learn from each other and strengthen local, national and regional capacities to manage interdependence.

“MCMI is an integral part of World Bank and European partnership to promote regional integration through knowledge sharing, innovation and harmonization of standards, regulation and laying ground work for regional development project. More than ever national development strategies need to take interdependence into account. Mediterranean countries need to make informed policy choices to realize the potential of interdependence. Our partner countries are therefore keen to learn from each other’s experiences, successes and development challenges. We are striving to ensure this partnership results in concrete deliverable for the benefit of the region to reduce unemployment and poverty.” says Shamshad Akhtar, World Bank Vice President for the Middle East and North Africa region.

The MCMI areas of engagement include five clusters with 14 programs focusing on:
(i) urban and spatial development;
(ii) sustainable development;
(iii) transport and logistics;
(iv) skills, employment and labor mobility challenges including youth and;
(v) knowledge economy, innovation and technology.

“In the Mediterranean Basin which is one of the most populated arid region, we need to look together for the means to preserve the common space and public goods we are sharing in order to ensure sustainability for the population of the region. This is indeed what the MCMI aims at, and the meaning we ambition to convey concerning "the Mediterranean integration". says Christian Masset, General Director of Globalization, Development and Partnerships, French Ministry of Foreign and European Affairs.

Coordinating these programs through the Center’s platform will allow for more efficiency and better synergies notably through sharing of experiences, policy strategies, highlighting lessons learned and case studies, and proposing analytical tools to benchmark countries’ progress.

“The Marseille Center for Mediterranean Integration brings innovation in the field of technical assistance to Mediterranean countries. On the one hand, multilateral donors such as the World Bank and the EIB, and bilateral donors mutualize their assistance effort to the modernization of Country Members public policies. On the other hand, they enrich their respective approaches by linking to other non-financial development players such as academic networks, United Nations agencies and civil society representatives. The countries of the Southern rim of the Meditarean are fully on board as founding members, and participate both to the design and implementation of activities, thus laying the ground for an equal partnership.” says Philippe de Fontaine Vive, EIB Vice President.

The MCMI is a World Bank administered platform for multi-partner programs. It will be guided by a 12-member Strategic Council, representing various partners, who will provide strategic orientation.

The City of Marseille is a key partner and can facilitate innovative cooperation by hosting other institutions for Mediterranean cooperation including United Cities and Local Governments (UCLG), the International Organization for Migration (IOM), United Nations Industrial Development Organization (UNIDO), and Plan Bleu.

“As a Founding Member of the MCMI, the City of Marseille will have the opportunity to upgrade its skills and know-how through multilateral cooperation programs. The developed programs will benefit from a leverage effect thanks to the pooling of financial means carried out by each partner. The Phoecean City thus reinforces its strategic position in the Mediterranean Basin” says Jean-Claude Gaudin, Senator – Mayor of Marseille.

#####
For more information on World Bank’s program in the Middle East and North Africa, please visit:
http://www.worldbank.org/mena

'The World Bank Group Beyond the Crisis'

2009-10-06T08:39:47.000Z

Annual Meetings

Board of Governors of the World Bank Group

Remarks of

Robert B. Zoellick

President

The World Bank Group

Istanbul, Turkey

October 6, 2009

“The World Bank Group Beyond the Crisis”

Mr. Chairman, Governors, and Distinguished Guests:

Thank you for joining us at these Annual Meetings. I want to express my particular thanks to the Chairman of the Board of Governors, Nguyen Van Giau, and to Agustín Carstens for his leadership of the Development Committee. Agustín and I have worked ever more closely over the last two years. I have deep respect for his skills as a Minister and as a thoughtful leader, and benefited greatly from his partnership and friendship. This is Agustín’s last meeting as Chair of the Development Committee, although I know I will wish to call on his advice and judgment in days to come.

I look forward to working with Minister Al-Khalifa of Bahrain, who has graciously agreed to assume the Chair of the Committee. Minister Al-Khalifa and I have worked together in earlier capacities, and I am delighted he has agreed to join us at this critical time.

I also want to thank my colleague Dominique Strauss-Kahn. Our two institutions have partnered closely over the last year, and I have much appreciated his insight, practicality and good humor.

I am grateful too, to the Turkish Government and the people of Turkey, who have been exemplary hosts for our Annual Meetings this year. We have enjoyed seeing this fascinating city in a country that has accomplished so much. Most of all, we thank the wonderful people of Istanbul and Turkey.

I would like to take this opportunity to recall former World Bank President Robert McNamara. He led and shaped the Bank for 13 incredible years. He brought to this institution enormous energy along with the firm belief that the problems of the developing world could be solved. He left behind him a formidable record: the effort to eradicate and prevent river blindness; the Bank’s first loan for nutrition; a focus on the rural poor; increased lending to agriculture; the publishing of the first ever World Development Report; and the opening of relations between the Bank and China at a crucial time in that country’s development – a reflection of both his foresight and leadership.

Robert McNamara shifted the focus of the World Bank Group toward the goal of overcoming poverty worldwide. It remains our core mission today, and ensures that Mr. McNamara’s legacy in international development – and to the World Bank Group – lives on.

In his final years, when I spoke to Mr. McNamara, he remembered fondly the tremendous staff of the World Bank Group, a true collection of talents across cultures and lands. His successors have expressed the same appreciation. I want to add my thanks to theirs. The people of the World Bank Group have risen to the challenge of crisis over the last year – with energy, creativity and strong sense of purpose for the client countries and people we are privileged to serve.

We are also saddened by the recent passing of Minister Futa of the Democratic of Republic of Congo. I would like to join the Chairman in extending my condolence to his family and the government of DRC.

I would also like to express my deepest sympathies to the family of the former Finance Minister of Japan, Mr. Nakagawa.

***** ***** *****

A year ago, we came together at a time of turmoil. Today, that turbulence is far from over.

As a result of the global crisis, we estimate that 90 million more people will be living in extreme poverty by the end of next year; up to 59 million more people will lose their jobs this year; and an additional 30,000 to 50,000 babies may die in Sub-Saharan Africa.

Behind these numbers lie human stories:

-- Aoy Puon is a garment factory worker in Cambodia. Since the crisis hit, her monthly salary has been cut in half. Today she can’t make enough to send money home to her family who depend on her income. 48 garment factories have had to close in Cambodia over the past year, and 62,000 workers have lost their jobs – 90 percent of them women. Aoy is now worried that she will lose her job.

-- Zagd is a herder in Mongolia, where the financial crisis has caused livestock prices to plummet. Meanwhile, food costs increase daily, so Zagd can no longer afford to buy flour, rice, or sugar. For herders like Zagd, there is no pension or social benefit money – instead, with decreased income, the only recourse is to cut consumption. As one herder says, “I do not buy sugar because it is expensive. We do not use vegetables. We do not go out, therefore we do not need many clothes…In the winter time, we do not buy wood and coal.”

-- Lindiwe is 28 and lives in a shanty town in southern Africa. She's HIV positive and has TB. She was turned away from the NGO clinic that provides treatment for these diseases, because donor funding has dried up as a result of the financial crisis, and the NGO has run out of drugs. Prospects for additional funding look bleak: a recent World Bank and UNAIDS survey found that 1 in 5 developing countries have experienced cutbacks on anti-retroviral treatment programs, and 33 countries expect the impact to worsen over the next year. For Lindiwe, time is running out: "I am scared of dying and leaving my little girl alone," she says.

Jobs lost and lives destroyed. Girls forced out of school. Families who need to decide which meal to cut out of their day. Children malnourished. Human progress reversed, often irretrievably.

While we talk of recovery, the personal pain of poverty is all around us.

In cities, villages, valleys, and plains; on Main Streets and communities with no streets we hear a common refrain: “Don’t let this happen again.”

Sadly, we cannot make that promise. We cannot crisis-proof our world. Indeed, if there is one thing that is assured about the future, it is that there will be another upheaval. But with leadership and cooperation, we can learn lessons from the past crisis, and we can look ahead.

We need to look beyond emergency response, to actions to “build back better” -- actions that can endure. That work is up to us in this room. Cooperation at times of crisis is the easier part. Cooperation when no longer staring into the abyss is the challenge.

Seeds of Crisis

Before looking to the future, we need to understand the past. Today’s upheaval did not occur from nowhere. The seeds were planted earlier.

The last 20 years have witnessed a huge economic shift. The breakdown of the planned economies in the Soviet Union and Central and Eastern Europe, the economic reforms in China and India, and the export-driven growth strategies of East Asia all contributed to a world market economy that vaulted from about 1 billion to 4 or 5 billion people. This shift offers enormous opportunities. But it has also shaken an international economic system forged in the middle of the 20^th Century, with patched-up changes in the decades since.

Some seeds of today’s troubles were sown by the responses – or lack of them – to the financial crises of the late 1990s. After the Asian financial crisis, developing countries determined they never again wanted to be exposed to the tempests of globalization. Many “insured” themselves through managing exchange rates and building huge currency reserves. Some of these changes contributed to imbalances and tensions in the global economy, but for years governments muddled through amidst generally good growth.

Central banks failed to address risks building in the new economy. They seemingly mastered product price inflation in the 1980s, but most decided that asset price bubbles were difficult to identify and to restrain with monetary policy. They argued that damage to the “real economy” of jobs, production, savings, and consumption could be contained once bubbles burst, through aggressive easing of interest rates. They turned out to be wrong.

Regulators and supervisors of financial institutions were no longer grounded in reality. Financial innovation and competition vastly expanded services – including to companies and families often shunted aside in the past – but the alluringly simple design of “rational markets theory” led regulators to take a holiday from the realities of psychology, organizational behavior, systemic risks, and the complexities of markets and humans.

Even as we learn these harsh lessons, we need to anticipate and build.

In 1944, the delegates at Bretton Woods seized a moment to shape a new global arrangement. They spent three weeks in New Hampshire developing a system of rules, institutions, and procedures for financial and commercial relations in the world economy.

That world has changed enormously over the past 65 years. The current upheaval is changing the landscape yet again.

Already, we can see potential shifts in power and institutions and international cooperation. In part, the shifts will depend upon how the parties adapt to new circumstances; in part, upon the rapidity of the recovery; in part, upon changes in who holds the world’s capital, technology, and human resources and what they do with them; in part, upon how countries cooperate – or do not.

The Changing Context

Just over 10 years ago, during the Asian financial crisis, the world’s primary concern was whether China would hold its currency peg to help stabilize the falling economic dominoes. Today, China ranks with the world’s major economies and acts as a stabilizing force in the global economy. Together, China and India account for 8.5 percent of world output. They and other developing countries are growing substantially more rapidly than developed countries.

The United States has been hit hard by the crisis. But it is a resilient nation. Its future will depend on whether and how it will address large deficits, recover without inflation that could undermine its credit and currency, and overhaul its financial system to preserve innovation while adding to safety and soundness. The United States also needs to help people adjust to change, so that it can maintain its greatest trump card: openness to trade, investment, people, and ideas.

Japan is the first leading industrial power to experience a political upheaval in the wake of the crisis. The election of the Democratic Party of Japan could create a sustainable two-party democracy for the first time in the country’s history.

It is not clear that the old export model of growth will meet Japan’s and the world’s needs or be sustainable in a more “balanced” global economy that does not rely so heavily on the U.S. consumer. An aging Japan will have new consumption needs. A global economy with more poles of growth could offer Japan new markets, especially for its impressive capabilities to use energy efficiently.

Central and Eastern European economies suffered strong blows. And their problems are far from over. The good strategic news is that the European states, for all their internal debates and negotiations, have recognized their interdependence. Under stress, this time, Europe did not splinter.

South East Asia may also have been given a boost by the crisis – depending on how opportunities are seized. The region lies at a geographic crossroads between India and China, two rising powers. ASEAN seems to have recognized the moment, and has taken actions to deepen its integration even while reaching out to others. Given the sizeable weight of Indonesia and the rising influence of Vietnam, their sound performance amidst economic turmoil has stood in sharp contrast to a decade ago.

For others, the long-term impact of the crisis may depend upon commodities, especially oil prices, which, in recent years, gave high returns. When the oil price is at $100, these countries are strong. When it is at $30, most are in serious trouble. This reliance on oil and commodities is a precarious basis upon which to build an economy in a world that is struggling to reduce its reliance on fossil fuels, and in which commodity prices gyrate as investors move in and out of an “asset class.” Will countries use these returns wisely – to diversify and build broader-based economic development? These are the questions for Russia, countries in the Gulf, and some countries in Latin America and Africa.

Prior to the crisis, the growth rates of a number of African countries were achieving impressive levels with consistency. Coming out of the crisis, there could be new opportunities. Some Chinese manufacturing firms are considering shifting their basic production to Africa. China’s African prospects – which include resource development and infrastructure – are likely to be complemented by others. Brazil is interested in sharing its agricultural development experience. India is building railways. These are the early days of a trend that will build.

Understanding shifting power relations is fundamental for shaping the future -- as the Bretton Woods’ delegates appreciated. The political basis for that system was forged through a shared experience in failed responsibility after World War I and a clear assessment of power after World War II. Change those power relations -- and the nature of the markets that connect them -- and the system looks out of touch.

What Next: Responsible Globalization?

The old order is gone. We should not waste our time and tears lamenting it. Today we must build anew. Today we can put in place the foundations for a “New Normal” of growth and responsible globalization.

Globalization has helped sustain high economic growth in many countries and lifted hundreds of millions out of poverty. Yet the growing linkages between economies have also played a central role in turning a financial crisis in the developed world into a global crisis that is driving millions back into poverty. The pace of climate change is accelerating, with poorest countries hardest hit. Diseases such as SARS in 2004, or this year’s H1N1 virus, start as localized outbreaks but quickly become global threats. Their virulence has only been intensified by increased travel and open borders.

We cannot and should not turn the clock back on globalization. Nor are publics demanding that we do so. But we can and must reform it to curb the damage it can wreak while expanding the enormous benefits that responsible globalization can provide to millions.

What Would it Take to Build Responsible Globalization?

First and foremost, we must recognize that developing countries are key to the solution today, progress tomorrow, and prosperity in years to come.

Two weeks ago, in Pittsburgh, world leaders embraced the G-20 as the premier forum for international economic cooperation among the advanced industrialized countries and rising powers. This is a good start. But the G-20 cannot be a stand-alone committee. Nor can it ignore the voices of the over 160 countries left outside. The G-20 should operate as a “Steering Group” across a network of countries and international institutions with a broader membership. It should recognize the interconnections among issues and foster points of mutual interest, without being either hierarchical or bureaucratic. It should be connected to our G-186 here in this room.

Forecasters expect lackluster growth and continued high unemployment for a number of years. The U.S. consumer can no longer be the main engine of economic demand. Europe and Japan appear constrained; China can assist, but its credit growth could pose problems next year. With access to finance, other developing economies can help boost a global recovery. Many have the fiscal space to borrow, but cannot get the volumes they need at reasonable prices without crowding out their private sectors. The World Bank Group and regional development banks can assist. Enhanced financial regulation and supervision that shift incentives from short-term casino capitalism to long-term productive investment will help.

Second, leaders must emphasize that a balanced and inclusive global economy needs multiple poles of growth – and not just adding China and India. Countries in Latin America, Southeast Asia, and a wider Middle East can assist in the future if they invest today. Over time, investments in Africa, a market of almost a billion people, can integrate its markets and become another source of growth.

To build multiple poles of growth, we need to remove bottlenecks and boost productivity through investments in infrastructure and energy, private sector expansion, and regional integration linked to open markets. New poles of growth can be customers for the capital goods, services, and technology of developed countries.

Third, leaders must commit to making growth sustainable. As the World Bank’s recently released World Development Report on development and climate change points out, developing countries not only face 75-80 percent of the potential damage from climate change, but over 1.6 billion of their people still lack access to electricity. Developing countries – and their interests – must be at the table. They need incentives and financing to encourage low carbon growth by adopting technologies, implementing energy efficiencies, and investing in forestation.

Fourth, we must put in place mechanisms to protect the most vulnerable. Two weeks ago at the Pittsburgh Summit, the G-20 leaders re-iterated their support for a new $20 billion food security initiative launched at Italy’s G-8 meeting. They called upon the World Bank Group to work with donors and organizations to develop a multilateral trust fund to scale-up agricultural assistance to low income countries. Too often, bilateral aid concentrates resources in specific sectors and countries. But with this more comprehensive, multilateral approach we can pool resources and better support innovative efforts to tackle food security all the way along the food chain and build sustainable agricultural systems. Paper pledges, however, will not put seeds in soil or food in hungry mouths. Hunger and famine – as the present drought in East Africa shows – are an ever-present threat. So we must move quickly to turn this initiative into reality.

Food, fuel, and now financial crises have derailed progress towards the Millennium Development Goals, reversing years of gains. We must fill a gap in the global financial architecture by offering insurance to the poorest countries that they will not be left defenseless in the face of overwhelming shocks. The World Bank Group will work to flesh out the proposal for a Crisis Response Facility, endorsed by the G-20 and the Development Committee, that can be ready to offer quick and effective assistance for the most vulnerable and fragile countries, many of which are just emerging from conflict. From targeted safety nets to SMEs and microfinance, we can help buffer those with the least cushion from the greatest upheavals.

We must also work toward a hand-off from government stimulus to private sector demand, investment, and trade, by offering a counterweight to financial and trade protectionism. IFC has just launched a new Asset Management Corporation that manages funds to invest in banks, equity, infrastructure, and debt restructuring. We can help build developing country financial markets, while channeling capital from sovereign, pension, and other asset management funds to productive private sectors in developing countries.

The Role of the World Bank Group

Last year, the Bank Group stepped up to the crisis and delivered a record $59 billion of financial assistance. IBRD commitments almost trebled to $33 billion. IDA also reached a record high of $14 billion; over 50 percent of new IFC projects were in IDA countries. Support for infrastructure – critical to recovery and jobs – reached $21 billion; we scaled up assistance of $4.5 billion for safety nets and other social protection programs to cushion the most vulnerable.

IFC combines strong innovation with resource mobilization; we have launched initiatives on bank capitalization, trade finance, infrastructure, and microfinance.

We expect a new IBRD record of $40 billion or more this fiscal year. Demand for IBRD lending is now clearly moving significantly beyond the $100 billion level that the Development Committee called for in its Communiqué last year. IDA countries are also facing significant financing gaps. We estimate that financing shortfalls to cover at-risk core spending on health, education, safety nets, and infrastructure amount to some $11.6 billion for the poorest countries.

I know that budgets in developed countries are constrained. But responsible globalization requires responsible stakeholders. We can and must do more.

What is the Role for the Bank Group in a New Post-Crisis World?

A well capitalized World Bank Group would be positioned to play a leading role in the global response to the challenges of globalization, development, and financial crisis.

We have a global, local, and cross-sectoral presence with the skills to work with public and private sectors, middle income and low income countries. We have a repository of global best practice in development that we continually upgrade; world-class risk management and banking competencies; and the capabilities to leverage our balance sheet. We have a leadership role in the growing global public goods agenda, and a worldwide catalytic and convening power. All these factors make the World Bank Group unique among the multilateral development banks.

Four key drivers are likely to shape the Group’s post-crisis role:

Driver 1 will be traditional and innovative development finance. There is strong demand from the Bank Group’s clients for the institution to come out of the crisis well-capitalized and to be able to sustain the delivery of a critical mass of financing to support global economic growth and to overcome poverty. The World Bank Group can play this role in several ways. We can contribute to fiscal stimulus and protecting core spending in countries that are not in a position to implement counter-cyclical policies; we can help to boost global demand to support global recovery; we can finance and support trade; we can assist the private sector to assume the critical handoff from the governments’ crisis response actions; and through investment, we can help to build multiple poles of growth with responsive, accountable public sectors and dynamic private sectors.

The second driver will be delivering knowledge products. The Bank Group is a repository of global best practice in development, combining implementation experience, research, and learning, drawing on both public and private sectors. As such, clients are looking to us to connect and customize multiple sources of practitioner knowledge and innovation.

The third driver is the global public goods agenda – pressing global challenges such as climate change, and communicable diseases that require an institutional response that is multi-sectoral, combining policy advice and investments with a global reach grounded in country programs. Already the Bank Group is mobilizing significant financing through the Climate Investment Funds. We can play a key role in technology transfer, working with clients on low carbon growth strategies, and in strengthening health systems where we are now scaling-up our work. The Bank Group can also support the public goods of resilient and dynamic trading and financial systems, based on multilateral rules.

The fourth driver is future crises – those that we can’t foresee today but know will happen: it might be a pandemic, a natural or man-made disaster, or an economic or social crisis. In response, the Bank can mobilize its full range of skills and instruments for the benefit of its shareholders, as it has done recently in the food crises, or in response to the Indian Ocean tsunami or financial crises in Mexico and East Asia.

The World Bank is pursuing a number of financial measures to make the most of our capital, including a loan price increase; working with countries so we can use the shares they purchased with national currencies; a selective capital increase linked to changes in “voice”; tight budget discipline; and a possible increase in pricing for longer maturity loans. These measures emphasize the mutual responsibilities and contributions of all our members. But they may not be enough. If the IBRD continues its lending at the current rate, by mid-2010 it will be capital constrained. IFC is limited now.

Of course the future is uncertain. If the recovery falters, or simply struggles slowly, should we risk a World Bank Group already stretched to the limit and unable to lead? In the face of the next crisis – another food emergency, the next epidemic – can we afford to have a World Bank Group that has to hold back? I thank the Development Committee for committing yesterday that it will ensure that the World Bank Group has sufficient resources to meet further development challenges, and that it will reach a decision on this issue by Spring 2010. This is an important step forward in the first General Capital Increase for the World Bank in twenty years.

The Reform Agenda

To serve the changing global economy, the world needs agile, nimble, competent, and accountable institutions. The World Bank Group will improve its legitimacy, efficiency, effectiveness, and accountability, and further expand its cooperation with the UN, the IMF, the other Multilateral Development Banks, donors, civil society, and foundations which have become increasingly important development actors. We know well the importance of advancing multiple reforms to address shareholder requests, improve performance, and build support with your legislatures.

Our efforts include:

· Improving development effectiveness, with a focus on the results agenda, decentralization, gender, investment lending reform, and human resources;

· Promoting accountability and good governance, including with our global anti-corruption efforts, an improved transparency and disclosure policy, and the soon-to-be-released recommendations of the Zedillo Commission; and

· Continuing to increase cost efficiency.

But we must go further.

The Bretton Woods system was forged by 44 countries at a time when power was concentrated in a small number of states. The great waves of decolonization were just stirring; the few developing countries were seen as objects, not subjects, of history. That world is long passed. The new realities of political economy demand a different system.

If developing countries are part of the solution, they must also be part of the conversation. The international system needs a World Bank Group that represents the international economic realities of the 21^st Century, recognizes the role and responsibility of growing stakeholders, and provides a larger voice for Africa.

The first phase of the reforms to enhance the voice and representation of developing and transition countries in the Bank Group was completed a year ago, with an additional Board seat for Sub-Saharan Africa and an increase in the voting power of developing countries at IBRD to 44 percent. I am pleased that yesterday the Development Committee stressed the importance of securing a further increase in voting power for developing countries of at least an additional 3 percent – bringing developing countries to at least 47 percent, for final decision at our Spring Meetings next year. We must continue to be ambitious. We should try to see if we can increase the share of the developing countries toward 50 percent over time, even as the emerging economies share the responsibilities of assisting poorer countries with their development. The World Bank Group should more accurately reflect the world around us.

Conclusion

Mr. Chairman: The old international economic order was struggling to keep up with change before the crisis. Today’s upheaval has revealed the stark gaps and compelling needs. It is time we caught up and moved ahead.

We need a system of international political economy that reflects a new multipolarity of growth. It needs to integrate rising economic powers as “responsible stakeholders” while recognizing that these countries are still home to hundreds of millions of poor and face staggering challenges of development. It needs to engage the energies and support of developed countries, whose publics carry the heavy burdens of debt, competitive anxieties, and feel that the new powers must share responsibilities. It needs to help offer a hand to the poorest and weakest countries, the 900 million people who still live without access to safe water, and the “Bottom Billion” trapped in poverty because of conflict and broken governance.

Yet it won’t happen by itself.

The question is whether leaders can cooperate in steering these changes. They will be drawn to the interests of the national publics they represent, as they should. Yet they will also be challenged to recognize and build common interests, not only case-by-case, but through institutions reflecting a “Responsible Globalization.”

Bretton Woods is being overhauled before our eyes. This time, it will take longer than three weeks in New Hampshire. It will have more participants. But it is just as necessary. The next upheaval, whatever it may be, is taking form now. Shape it or be shaped by it.

World Bank Reforming to Meet New Challenges, Zoellick Says

2009-10-06T08:27:38.000Z

Contacts:

In Istanbul:

David Theis

(202) 203-0601

dtheis@worldbank.org

ISTANBUL, October 6, 2009 – The World Bank is pursuing an ambitious program of reform to enable the institution to become more efficient and effective while also gaining more legitimacy among the developing countries that it serves, World Bank Group President Robert B. Zoellick said.

In a speech at the start of the Annual Meetings of the World Bank and International Monetary Fund in Istanbul, Turkey, Zoellick said the World Bank’s reforms would focus on improving development effectiveness, promoting accountability and good governance, and continuing to increase cost efficiency.

“To serve the changing global economy, the world needs agile, nimble, competent, and accountable institutions,” Zoellick told the meeting of the Board of Governors of the World Bank Group. “The World Bank Group will improve its legitimacy, efficiency, effectiveness, and accountability, and further expand its cooperation with the UN, the IMF, the other Multilateral Development Banks, donors, civil society, and foundations which have become increasingly important development actors.”

Zoellick noted that when the World Bank was established in 1944, the world was different from today. The institution was formed by 44 countries whereas its membership today stood at 186. The developing countries of today were mostly still colonies. This system had long passed and the political economy of the 21st century demanded a changed order that reflected the growing role of developing countries. They were now a source of potential economic growth that could lead to a more balanced world economy.

“If developing countries are part of the solution, they must also be part of the conversation. The international system needs a World Bank Group that represents the international economic realities of the 21st Century, recognizes the role and responsibility of growing stakeholders, and provides a larger voice for Africa,” Zoellick said.

The World Bank’s shareholders supported reforms that would give developing countries at least 47 percent of the voting shares in the institution. Zoellick said shareholders should go beyond this to achieve a 50 percent share for developing countries.

Reform was inevitable as the world was changing so quickly, Zoellick said. “The old international economic order was struggling to keep up with change before the crisis. Today’s upheaval has revealed the stark gaps and compelling needs. It is time we caught up and moved ahead.”

The High Level Commission chaired by former Mexican President Ernesto Zedillo, which Zoellick set up last year to look at more far reaching reforms of World Bank governance, is expected to submit its report later this month.

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World Bank Group Private Sector Leaders Forum Announces New Measures to Improve Women’s Economic Opportunities

2009-10-04T15:30:00.000Z

Contacts:

In Washington: Alejandra Viveros 1 (202) 473-4306

Aviveros@worldbank.org

ISTANBUL, October 4, 2009 –World Bank Group President Robert B. Zoellick and Managing Director Ngozi N. Okonjo-Iweala met today with global business leaders in order to continue expanding economic opportunities for women worldwide. At an event co-hosted by the Hüsnü M. Özyeǧin Foundation in the margins of the World Bank-IMF Annual Meetings, the leaders discussed the impacts of the ongoing economic crisis on women, and announced new partnerships to support women around the world.

“At this time of economic turmoil, investing in women is critical,” said Mr. Zoellick at the meeting. “A host of studies suggest that putting earnings in women’s hands is the intelligent thing to do to aid recovery and long-term development. Women usually reinvest a much higher portion of their earnings in their families and communities than men, spreading wealth beyond themselves.”

In the meeting of the global Private Sector Leaders Forum, comprised of 21 companies committed to promote women's economic empowerment, the leaders talked about the need to protect women from the adverse effects of the economic crisis, and shared experiences on successful programs designed to support women’s economic opportunities in key areas, such as targeted lending programs; inclusion and diversity initiatives to promote women into corporate leadership roles; and the training of business women in developing countries.

Highlights of new partnerships and initiatives announced at the event include:

- The Ozyegin Foundation and Goldman Sachs will expand the Goldman Sachs 10,000 Women program to Turkey.

- Boeing announced Forum member efforts to track and spend $2 billion over the next three years on goods and services from women-owned businesses in supply chains.

- Belcorp announced a partnership with the World Bank to train 50,000 women in financial literacy in Latin America.

- McKinsey presented their new research, “The Business of Empowering Women,” which maps out potential business sector contributions across women’s life cycles.

According to the participants, these initiatives are crucial as the world sets about rebuilding economies around the world. Research shows that during economic crises, girls are the most likely to be withdrawn from school and be put to work to help their families. And adult women face the risk of suffering disproportionately from the jobs lost since they constitute between 60 and 80 percent of export manufacturing workers in developing countries, a sector expected to shrink due to fall in demand.

“Women and girls need to be protected because they are suffering disproportionately from the economic recession,” said World Bank Managing Director, Ngozi N. Okonjo-Iweala. “But more importantly, women can be the engine for recovery. If done right, we can emerge from the crisis with healthier growth and be on a faster track to reducing poverty and boosting development." Investing in improving women’s lives is critical,”

The Private Sector Leaders Forum is a public-private partnership between the World Bank Group and some of the world's leading private sector companies. The partnership supports the World Bank Group’s Gender Action Plan to promote women's economic empowerment and gender equality.

Launched in January 2008 during the World Economic Forum in Davos, the Forum is comprised of:

Eduardo Belmont, President, Belcorp
Lloyd Blankfein, Chairman and CEO, The Goldman Sachs Group, Inc.
Henryka Bochniarz, Vice President of Boeing International and President of Boeing Central and Eastern Europe, Boeing
Frank J. Brown, Dean, INSEAD
John T. Chambers, Chairman & CEO, Cisco
Kristin Clemet, Chair, Company: Norfund
Samuel A. DiPiazza, CEO, Company: PricewaterhouseCoopers (PwC)
Rick Goings, Chairman and Chief Executive, Tupperware Brands Corporation
Kevin L. Kelly, CEO, Heidrick & Struggles
Sung-joo Kim, Chairperson & CEO, Sungjoo Group/MCM Group
Yang Lan, CEO, Sun Media Investment Holdings LTD
Wendy Luhabe, Founding Member, Women Private Equity Fund
Marilyn Carlson Nelson, Chair, Carlson
Hüsnü M. Özyeǧin, President, Hüsnü M. Özyeǧin Foundation
Lynn Taliento, Partner, Washington DC Office, McKinsey & Co.
Elena Viyella de Paliza, President, Grupo Inter-Quimica, S.A. Monte Rio Power Corp.
Nitin Paranjpe, CEO and MD of the Hindustan Unilever Ltd & Group Vice President of Unilever in South Asia
Mark Parker, President & CEO, Nike
James S. Turley, Chairman and CEO, Ernst & Young
Mona Zulficar, Senior Partner and Chair of the Executive Committee, Shalakany Law Office

To get more information on the World Bank’s work on gender, please visit: www.worldbank.org/gender

The project Education Quality Improvement Program (EQIP) Phase 2 has changed to Closed

2009-10-01T04:00:00.000Z

The project Education Quality Improvement Program (EQIP) Phase 2 has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Second Phase of the Education Quality Improvement Project for Tunisia is to promote excellence in teaching and learning throughout the school sector, while continuing the push for equity by ensuring the inclusion of all children at all levels of the basic education system. The reallocation of funds is consistent with the current completion rate of activities, and project savings. Some activities initially planned to be funded under the loan have been carried out using the Borrower's own resources, leaving room for funding additional equipment under the loan. The actual costs of the civil works component have been lower than the estimated costs at the time of project preparation, and savings have been made due to appreciation of the Euro against the Dollar and Dinar in which construction expenses are made. The reallocation does not imply changes in the components of the project, nor in the activities to be carried out by the project. The new allocations reflect the need to increase the scale of the information and communication technology (ICT) program and hence the need to increase the number of schools to be equipped with computers. Along the same lines, in order to fully implement the language program in schools, the equipment of language labs at the school level was deemed necessary.

The project IR-Ahwaz & Shiraz Water Supply and Sanitation Project has changed to Closed

2009-10-01T04:00:00.000Z

The project IR-Ahwaz & Shiraz Water Supply and Sanitation Project has changed to Closed. To see more information, see the project information in the World Bank project database

The main objectives of the Ahwaz and Shiraz Water Supply and Sanitation Project for Iran are to: a) enhance the quality o f life in the proposed cities, Ahwaz and Shiraz, particularly in poor areas by: (i) improving access to satisfactory water supply and significantly increasing coverage o f sanitation services; and (ii) improving environmental, hygiene and health conditions, as well as promoting reuse of treated effluents; b) strengthen and develop the capacity o f Ahwaz and Shiraz Water and Wastewater Companies (WWCs), and assist the latter in improving their efficiency, sustainability and financial autonomy; and c) initiate sector reforms, particularly with respect to institutional arrangements, the regulatory framework, demand management, as well as prepare a sanitation strategy. There are four project components. Component 1 will provide funds to improve water services in Ahwaz and Shiraz based on their comprehensive development plans. Component 2 will provide funds to improve wastewater services in Ahwaz and Shiraz based on their comprehensive development plans. Component 3 provides operation and maintenance equipment and consumer water meters for WWCs. Component 4 supports capacity building, technical assistance (TA), training, and consulting services.

The project RY-RURAL ACCESS II ADDITIONAL FINANCING is now in the pipeline.

2009-09-30T04:00:00.000Z

The project RY-RURAL ACCESS II ADDITIONAL FINANCING is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Teacher Education Improvement Project is now in the pipeline.

2009-09-30T04:00:00.000Z

The project Teacher Education Improvement Project is now in the pipeline. To see more information, see the project information in the World Bank project database

Djibouti: Supporting the Education Sector

2009-09-29T20:38:53.000Z

Last Updated: Sept 2009

Links:
- What is IDA?
- Our Work in Djibouti

More on Djibouti:
- Borrowing History
- Data & Statistics
- Research
- Contact Us

Two-thirds of the inhabitants of Djibouti, a small country in the Horn of Africa, live in the capital city. The rest, mostly nomadic herders, live in stony desert. There are wide disparities in the quality of education and learning outcomes between urban and rural areas. The government is also grappling with high dropout rates, high teacher wages and lack of data hindering expenditure management and policy decisions. In addition, youth are graduating with low skills for the labor market. Recent large projects in the country (for example, port expansion and hotel construction projects) have not generated many jobs for Djiboutians, failing to solve the country’s extremely high unemployment.

IDA is helping Djibouti devise several distinct strategies: (i) to provide schools for nomadic children in isolated rural areas, increase access and improve the quality of basic education; (ii) to ensure that training and education are aligned with the needs of the economy; and (iii) to improve the management and efficiency of the education system.

The percentage of students who have completed primary school without repeating a grade went from 52 percent in 2003/2004 to 71 percent in 2008/2009.

Highlights:
- Dropout rates have decreased overall. However, the dropout rate of 1.6 percent for girls is still greater than that of boys (0.8 percent).

- The Gross Enrollment Rate at the primary level reached 71 percent (67 percent for girls) in 2008/2009 compared to 52 percent in 2003/2004, according to the Planning Department of the Ministry of Education. At the middle school level, girls’ enrollment increased from 24 percent in 2003/2004 to 45 percent in 2008/2009. In 2008/2009, 86 percent of the 100,000 students in school were enrolled at the basic education level.

- Progress on improving the management and efficiency of the education system has been more mixed. Almost all schools now have a Parents Association or a School Management Committee. A surprising 90 percent of teachers have received in-service training between 2006 and 2009. However, non-salary recurrent expenditures have reached only 9.2 percent of the Ministry of Education’s budget in 2009, from a baseline of 6.6 percent in 2006 (failing to reach the Ministry’s 15 percent target), meaning teacher wages still dominate expenses.

- The education sector remains a government priority, receiving 23.3 percent of the state budget in 2009 (or 8.4 percent of GDP), very high relative to comparable countries.

- Investments in school infrastructure are bearing fruit but disparities remain. The current percentage of schools with electricity in urban areas is 97 percent, compared to only 49 percent in rural areas. In urban areas, 92 percent of schools have access to water vs. 73 percent in rural areas. The percentage of schools with separate restrooms for girls is 79 and 75 percent respectively for urban and rural areas.

- IDA’s Second School Access and Improvement Project (2006-2010), phase II of a US$30 million credit, is supporting the implementation of the Government’s education reform agenda. A third phase is expected to be in place in 2011, and will incorporate a greater focus on reaching the most underprivileged populations and improving skills for youth.

- IDA also provided over US$100,000 in technical assistance in 2008 to help the government prepare a skills development strategy in collaboration with the Agence Française de Développement (AFD) to improve the relevance of vocational training to the needs of the labor market and to improve the post-primary education and training possibilities so that Education For All (EFA) goals can be met.

In addition to IDA lending, the government received US$8 million under the Catalytic Fund of the Education for All-Fast Track Initiative Program (EFA/FTI) (2006-2010) to support activities complementary to the IDA project. The World Bank is managing this Trust Fund and monitoring its progress.

The Education Program Development Fund (EPDF), part of the EFA/FTI program is also providing US$150,000 to finance studies that have begun to improve data collection and analysis and will begin to address the efficiency and quality issues noted earlier.

A joint education donor-government technical committee meets regularly to monitor the progress in implementation of the education reform agenda and the Catalytic Fund (CF). In addition to IDA and CF, several partners (African Development Bank, Islamic Development Bank, France, Japan, US, the World Food Program and UNICEF) provide financial resources or technical support for the implementation of the education reform agenda, especially with regard to expanding access.

IDA will continue to work with the Ministry of Education and international donors to prepare the next Catalytic Fund request (2010) which will continue the focus on improving the quality of education by providing children with school supplies and provide schools with wells, solar panels, and dormitories for nomadic children, and put in place support for special needs children and school feeding programs.

Reinforcement of private sector partnerships has become a priority for the government in the past year. The Ministry of Education recently entered into a partnership with the Brazilian construction firm that built the new port in Djibouti to arrange for work/study internships for students in one of their technical/vocational high schools. The Ministry of Education is looking to expand this type of partnership in other sectors (likely to include tourism) with World Bank technical assistance.

Second School Access and Improvement (2005-2010)
Project documents

Djibouti Catalytic Fund for Education (2006-2010)
Project documents

For more information, please visit the Projects website.

The project Affordable Mortgage Finance DPL has changed to Active

2009-09-26T04:00:00.000Z

The project Affordable Mortgage Finance DPL has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Affordable Mortgage Finance Program Development Policy Loan Program for Egypt, Arab Republic of is to reform the current system of inefficient and poorly targeted supply-side subsidies for housing for the broad low and middle income sector and replace them with a transparent and economically efficient demand-side subsidy system. The program faces several risks that would be mitigated as follows: 1) financial and macroeconomic environment: with the current global crisis, obtaining funding sources priced at a level appropriate for on-lending to the mortgage sector is one of the major short-term risks. In mitigation of this risk, the Egyptian Mortgage Refinance Company (EMRC) is moving forward with plans to issue its own bonds. (ii) Inflation: increase in inflation may result in increasing mortgage interest rates across mortgage lenders, thereby affecting the size of loan which beneficiaries will be able to afford. Measures to tackle the affordability problem would include: (a) moving from a buy-down to an upfront subsidy; and (b) reducing cost of construction through improved regulations or change the mix of units between new communities and existing urban areas. (iii) Market risk: inability of a class of households drawn into mortgage obligations, to pay according to amortization schedules drawn up by lenders to expand initial affordability, risking loan default. The program deals with this risk in the following ways: (a) loans are fixed rate loans; and (b) maximum payment-to-income ratios will be set by law at 33 percent, although for some lower income households, the program may operate below this ceiling. (iv) Political environment: stakeholder's opposition could weaken the government's attempt to pursue the needed policy and structural reforms. Budgetary allocations for the new subsidy program on a sustained basis could be disrupted, thereby, impacting negatively lenders' confidence. These risks would be mitigated through ensuring the issuance of decrees, amending relevant laws, launching public awareness campaigns, and consulting with stakeholders.

Egypt: Affordable Mortgage Finance Program

2009-09-24T23:06:57.000Z

WASHINGTON, September 24, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$300 million

Terms: Commitment Linked; Variable Spread

Project ID: P112346

Project Description: The Affordable Mortgage Finance Program Development Policy Loan Program for the Arab Republic of Egypt aims to support reform of the current system of inefficient and poorly targeted supply-side subsidies for housing for the broad low and middle income sector and replace them with a transparent and economically efficient demand-side subsidy system.

Media Contact

Dina El-Naggar

(202) 473-3245

delnaggar@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P112346

Egypt: The World Bank Supports the Affordable Mortgage Finance Program

2009-09-24T22:47:15.000Z

Contacts
In Cairo:
Eman Wahby
202-2574-1670
ewahby@worldbank.org

In Washington:
Najat Yamouri
202-458-1340
nyamouri@worldbank.org

WASHINGTON, September 24, 2009 - The World Bank’s Board of Executive Directors today approved a loan in the amount of $300 million to support the Affordable Mortgage Finance Program.

Providing affordable housing for low and middle-income households is a key priority on the Government of Egypt’s agenda. A significant number of reforms to promote mortgage and housing finance has been undertaken by the Government of Egypt.

The Affordable Mortgage Finance Program will gradually replace the supply-side subsidies that had been commonly used and move towards a more inclusive, transparent and efficient demand-side subsidy program for low and middle-income households.

The Program is one of the key outcomes of the strong partnership established between the Ministry of Investment, and the Ministry of Housing, Utilities and Urban Development, and the World Bank. Implementation of this operation will be led by the Guarantee and Subsidy Fund (GSF) under the Ministry of Investment.

“ We are pleased to support the ongoing development of the mortgage market and the creation of a more efficient housing finance market that targets low and middle income groups," said Emmanuel Mbi, Country Director for Egypt , Yemen and Djibouti .

" This support is in line with the Bank’s Country Assistance Strategy ( CAS ) and addresses two key strategic objectives of the CAS , namely: facilitating private sector development through improving financial sector competitiveness and efficiency; and promoting equity," he added.

The Program has three main components: (i) Strengthening the legal, regulatory and institutional framework for the Mortgage Finance Subsidies Program; (ii) Developing an effective and efficient mortgage finance subsidy mechanism; and, (iii) Improving the institutional framework to enhance transparency and targeting of housing subsidies.

" The Development Policy Loan will support the Affordable Mortgage Finance Program, which will be the main program catering low and middle income groups, which are especially vulnerable during the current global economic crisis," said Sahar Nasr, the World Bank Task Team Leader.

" Therefore, it will contribute to increase the housing options for low and middle income households, which will have a significant social and economic impact, improving the living standards and the well-being of Egyptian citizens," she further added .

Approximately 75 percent of newly formed households cannot afford to acquire a formal sector house without a subsidy and have to rent or own in the informal sector. Current supply side subsidies targeted to this income group and channeled through developers are not always efficient, transparent, or equitable. The new Program will ensure efficient targeting and that only those that deserve housing subsidies have access to them.

-#-
For more information, please visit www.worldbank.org/egypt

The project EG-Second Airports Development is now in the pipeline.

2009-09-24T04:00:00.000Z

The project EG-Second Airports Development is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Solid Waste Sector DPL has changed to Closed

2009-09-24T04:00:00.000Z

The project Solid Waste Sector DPL has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Development Policy Loan (DPL) program is to support the Government of Morocco (GoM) in implementing its program of reforms aimed at improving the financial, environmental and social performance of the municipal solid waste sector in Morocco. Major issues and challenges faced in the sector include: (i) a weak legal and institutional framework, which constrains effective governance of the sector; (ii) poor cost effectiveness of services; with doubtful long-term financial sustainability of the sector; (iii) the urgent need for integrated and modernized solid waste management systems, which will mitigate negative economic, environmental, and social impacts of the existing systems; and (iv) missed opportunities available under international climate change mechanisms i.e. the Clean Development Mechanism (CDM), while supporting the global effort in climate change mitigation. There are three key risks associated with the DPL program: 1) Morocco's macro economy has so far weathered the negative impact of the global financial crisis because its financial sector was relatively insulated from the global context. However, it is facing the impact of the global economic downturn and is taking the necessary measures to respond; 2) commitments to the reform and implementation capacity risks: (i) weakening of political consensus and commitment for municipal solid waste reforms which may delay or impact the effective implementation of the program. This risk is mitigated by a strong and continuous cross sector dialogue and consultation through the established National Commission for the Program; and (ii) weak capacity to implement complex sector reforms at the municipal level may affect the program's results on the ground; and 3) lack of social acceptance of reforms by the public including the waste pickers and service users. This is being mitigated respectively through the implementation of a social inclusion program targeting waste pickers and through increasing accountability of the service providers for improved quality.

Cities Alliance, USAID and World Bank Present Photo Exhibit on Slums to US Public

2009-09-23T21:52:11.000Z

Contacts:

In Washington D.C : Chii Akporji

+1(202) 473 1935

cakporji@citiesaliance.org

USAID Press Office

+1(202) 712 4320

cward@usaid.gov

Barbara Lipman

+1(202) 458 9691

blipman@worldbank.org

WASHINGTON D.C., September 23, 2009: A major interactive photo exhibit on slums called The Places We Live recently opened to the US public. It is being hosted by the National Building Museum, one of the world’s most prominent venues for informed debate about the built environment and its impact on people’s lives. Courtesy of a unique partnership between Cities Alliance, USAID, and the World Bank, the exhibit provide s US audiences with a first-hand look at slums and how slum dwellers live in the densely populated cities of the developing world.

Created by the Norwegian photographer, Jonas Bendiksen, and produced by Canon and Magnum Photos of Paris, The Places We Live is a multimedia photo documentary showcasing what it means to be an urban citizen in the developing countries of the world in the 21st century. The year 2008 will go down in human history as being the first time that more people were living in cities than in rural areas. One-third of these urban dwellers—more than one billion people—live in slums, mostly in fast growing cities in the developing countries of Africa and Asia. That number is expected to rise substantially: the United Nations projects that the number of slum dwellers will double to two billion people over the next 25 years.

Visitors to The Places We Live 'virtually' visit about 20 families living in slum shacks in four major cities of the south: in the ‘barrios’ of Caracas, Venezuela; in the depths of Kibera, Africa’s largest slum settlement in Nairobi, Kenya; in Dharavi, Asia’s largest slum in Mumbai, India; and in the ‘kampongs’ of Jakarta, Indonesia. Inside each ‘room’, the visitor sees a family in their home, hears the family talk about daily life in the slums, the dangers of the environment in which they live, their work, their joys, sorrows, hopes and fears. Bendiksen also captures the enterprise and hard-work, hope and humor, and love and compassion that occur in these ‘homes’, found in some of the world’s most difficult environments.

“The neighborhoods pictured in the exhibition are some of the densest and poorest places on earth. My goal was to capture the vast range of ways their inhabitants experience their surroundings—from the destitute to the ambitious and surprising,” said Bendiksen.

The exhibit is scheduled to run to January 15, 2010. Cities Alliance, USAID, and The World Bank are also partnering with the National Building Museum on a variety of outreach and education activities. They are designed to help inform the American public about an enormous part of our built environment that is unsustainable for humankind, and the role of international development in working to alleviate the poverty.

“The Places We Live vividly captures the diversity of slums and the resilience of the people living in them," says Katherine Sierra, Vice President of Sustainable Development of The World Bank. “The exhibit serves to inspire us, but also increases our resolve to work as partners with governments, slum dwellers, and concerned people everywhere. Together, we must do all we can to eliminate the conditions that deny health, education, civil protection, and economic prosperity to the poorest citizens among us."

“For the first time in history, more people live in cities than in rural areas, and this shift will have a marked impact on international development efforts,” adds USAID’s Acting Administrator, Alonzo Fulgham. “We hope that the powerful images in the The Places We Live exhibit will draw attention to this fact, and help highlight the unique development challenges facing the hundreds of millions of urban poor in the developing world.”

For Billy Cobbett, Programme Manager for the Cities Alliance, "Slum dwellers are just poor people trying to escape poverty, and build their futures - treat them as citizens, and they will help build cities."

The Places We Live is an official program of the 2009 World Habitat Day, an annual event established in 1989 by the United Nations Human Settlements Programme (UN-HABITAT). The official 2009 World Habitat Day ceremony is being held for the first time in a U.S. city, Washington, D.C., under the auspices of the U.S. Department of Housing and Urban Development. The ceremony will take place at the National Building Museum on October 5, 2009. A range of related public education activities will be held from October 1 through October 7 in Washington, D.C. and around the United States. World Habitat Day celebrations will also take place around the world.

A dedicated website - OurUrbanPlanet.org - has been created to promote news and information about the exhibit and the various outreach activities based on it. Further information is also available on the Cities Alliance website at www.citiesalliance.org

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About the Artist:

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Press Conference Call by World Bank Group President Robert B. Zoellick on the release of the paper entitled: ”Protecting progress: the challenge facing low-income countries in the global recession”.

2009-09-23T18:36:09.000Z

Press Conference Call by World Bank Group President Robert B. Zoellick on the release of the paper entitled: “Protecting progress: the challenge facing low-income countries in the global recession”

Transcript

September 16, 2009

MR. HANLON:

This is Carl Hanlon from the World Bank and thanks for joining us today. We have on the line President Robert Zoellick of the World Bank and Sam Worthington, President and CEO of Interaction, the largest coalition of U.S.-based non-governmental organizations to focus on the world's poor.

Mr. Zoellick will make brief remarks about the continuing impacts of the global downturn on low-income countries. He will also discuss the paper entitled "Protecting Progress: The Challenges Facing Low-Income Countries in the Global Recession," which was prepared by the Bank for the G20 leaders meeting in Pittsburgh, Pennsylvania next week. You should all have that paper and an accompanying press release.

Following President Zoellick's statements, Mr. Worthington will also make a statement. After his statement, we will take your questions.

This is a moderated call, and your questions will be answered in turn. Please kindly identify yourself and your organization before asking your question.

Mr. Zoellick’s remarks are on the record, of course, unless otherwise specified.

We will now turn it over to President Zoellick, please.

MR. ZOELLICK: Thank you for joining us, and particularly thanks to you, Sam, for being on the call today.

We see signs of recovery, but many are still being left behind. The G20 Summit in London broke the fall and now we need to go further, bringing in those that are being left behind in building a new normal based on multiple poles of growth. That means recognizing the developing countries are part of this solution. We can't just rely on demand from the U.S. consumer. Developing countries can play a key role in helping to boost global demand to support global recovery, but to do so, they are going to need access to financing for some years to come. The World Bank Group and the regional development banks are stretching to assist.

Looking to the longer term, developing countries can be vital parts of a global economy with multiple poles of growth, with responsive public sectors and dynamic private sectors; this would be more balanced. The G20 needs to put in place the incentives to help developing countries build productivity, investment, sources of energy, all linked to regional and global trade.

We also have to make sure that we address the needs of those not at the G20 table. London was a summit for the financial sector, this must be a summit for responsible globalization.

So, the paper that we're releasing today shows that low-income countries are being hard hit through a collapse in trade, especially for commodity-exporting nations, decline in tourism, as well as remittances, while the crisis for developed countries has meant higher unemployment, for many in the poorest countries it means naked survival.

Already, we estimate that some 90 million people will be driven into deepest poverty by the end of next year.

Earlier this year, we launched a vulnerability framework that helped mobilize some $8 billion through World Bank and IFC initiatives in infrastructure, social safety nets, microfinance, trade finance, and bank capitalization. Our analysis shows that more will be needed, especially for the most vulnerable who are being forced to cut into core spending on health, education, and infrastructure.

Countries need to maintain their Gleneagles commitments, but also go further.

In July, President Obama helped launch a $20 billion food security initiative at Italy's G8 Summit. We have the pledges, but good intentions need to be quickly operationalized and implemented. For many, the food crisis is definitely not over. For them, "green shoots" have yet to materialize, literally.

We also need a renewed global commitment to combat corruption, including scaled-up efforts to recover an estimated $20-40 billion in stolen public assets. So, we have urged the G20 to support the World Bank's StAR Initiative, Stolen Asset Recovery Initiative, and fully implement the UN Convention against Corruption, including the freezing and return of stolen assets. We can help support the legal process, but we need both developed and developing countries to assume their responsibilities.

We need to expand support to small- and medium-sized enterprises. The best safety net is a job, and the World Bank Group will double its mobilization of finances for SMEs by 2013, but we have to go further.

Last March, I called for new institutional structures that would help protect the poorest from crises not of their own making. In the last two years alone, we've seen the food, fuel, and now financial crisis steepen the climb to the Millennium Development Goals.

There is a gap in the global financial architecture. Unless we can plug this gap and give some insurance to publics and countries that they won't be left defenseless in the face of shocks, we risk undermining support for global integration and global markets.

So, we need a crisis response facility to ensure that quick and effective assistance can be provided to the most vulnerable low-income countries following severe and widespread shocks.

The G20 should support the establishment of such a facility as soon as possible. This could be done through IDA as a separate window that triggers at times of crisis and can move money faster.

The World Bank has offered to develop a proposal and financing options to be discussed in November at the mid-term review of IDA.

We are entering a new danger zone, not of freefall, but of complacency. While some are moving towards the exits, many are still being left behind in the burning house, but Pittsburgh can be an opportunity to build a responsible globalization.

I want to thank Sam Worthington of Interaction for joining us today. When the food crisis hit, we reached out to Sam and a number of other international CSO leaders for advice and shared perspective. Many of them have fantastic field operations. They have been vital delivery partners.

And based on that first outreach, we've now had a regular set of meetings with CSOs from the United States and abroad, most recently one that Sam and I chaired last week, and many of these CSOs have also been hit by the crisis in a very deep drop to their contributions in the recession. So, I would also urge public support for them. So, even small donations can add up, and they are vital partners in what we do.

MR. HANLON: Thank you, sir.

And we will now turn it over to Mr. Worthington, please.

MR. WORTHINGTON: Well, thank you, Bob, for your comments and to the World Bank and to your office for the opportunity to be on this call.

The World Bank paper to the G20 leaders is a powerful piece of work, and it is nice to see the role that Mr. Zoellick has taken as an advocate for the world poor at the G20. In many ways, for a civil society that has seen itself as the conscience of globalization looking at our practical experience on working on the ground, it is very encouraging and heartening to see Mr. Zoellick call for responsible globalization and for a paper that really highlights the plight of the world's poor and some very practical steps that the nation's most important countries can take to address the crisis.

It is important to note from the vantage point of our community the large flows of private resources that have gone into the developing world in the poorest countries. If we look at remittances from the United States at roughly around $79 billion, private aid flows globally through the NGO community, other parts of civil society, universities, and other actors are roughly around $53 billion globally. In many ways, these resources have flowed into the poorest communities, the poorest villages around the world and have served as a stimulus to the LICs, the countries that most need our support.

Sadly, at a time when these countries need more support, these private flows have seen a market decline. The World Bank paper talks about significant decreases of remittances, particularly from the United States to Latin America, but the NGO community globally has seen a marked decline in the billions of dollars of resources that tend to flow into villages.

As the paper notes, there may be 30,000 to 50,000 more infant deaths because of this crisis. The services, the child survival services, the nutrition services, the education services needed to address these deaths and the 90 million or so people who will fall into abject poverty will be decreasing and not increasing. We are seeing a world that is providing stimulus packages for the countries and for the populations of countries that are rich. At the same time, sadly enough, the resources are not there for the world's poorest countries.

The G20 countries must rapidly implement their summit pledge of $50 billion dedicated to the low-income countries to help them mitigate the impact of this crisis. There needs to be a transparent accountability mechanism in place to monitor the agreed decisions, pledges, and disbursements. I think it is important to look to the horizon and understand that as grants are given to 29 of the IDA countries who have a waiver because of HIPC but that the rest--that we not look at the risk of loans longer term and that we consider mechanisms that enable these countries not to find themselves in debt over the long run.

We very much applaud President Obama's food security initiative and the initiative of the World Bank to bring together the different food Security initiatives to address the sort of perfect storm of crises bringing together the food crisis, the fuel crisis, and ultimately the economic crisis that is reaching the world's poorest countries.

Our community works in villages. We are there when there are riots in Bangladesh. We are there when another child dies or when a family finds itself without the resources to feed themselves, resources that they had before because there was the job or the growth needed for them to have those resources. We are also there watching as layoffs happen and teachers lose their jobs at a time when the world's youngest inhabitants need an education. It is time for the world's more affluent countries, and in particular those countries at the G20, whether it is China, India, or South Africa to call for a push to focus on the world's poor, to join Mr. Zoellick and the World Bank in their efforts, and to join with President Obama in his efforts to advance a global food security initiative.

Thank you for this opportunity, and I want to thank again Mr. Zoellick for the opportunity to join him on this call.

MR. HANLON: Mr. Worthington, thank you very much, sir.

And now we'll turn it over to reporters for questions.

Kindly identify yourself if you could, the name of your organization, and indicate who you would like to take the question.

OPERATOR: Thank you. And again, as a reminder, that's "star one" and record your information.

We have Bob Davis from The Wall Street Journal.

Go ahead, sir, your line is open.

MR. DAVIS: Thanks.

For Mr. Zoellick, two things.

One, in your long experience before the Bank as well as your experience at the Bank--so, London was also a G20 that occurred when the global economy appeared to be totally going down the tubes and there was a great deal of fear on what might come next. We are in a different situation, as you pointed out, where things don't look quite as bad.

What happens to the political imperative and to the goals you seek when the economy changes and moderates?

And secondly, you used twice the word "responsible globalization." I don't quite understand what you mean by that. Could you define that.

MR. ZOELLICK: First, Bob, what happens depends on the leaders. And what Sam and I are trying to do is to frame more clarity of the particular challenges of the developing world.

It is true that the financial markets have broken the freefall and that there are signs of recovery. I think the leaders will be very focused on how they keep the recovery going and help it build some strength.

From the work of our economists and many others, there is a real concern that the recovery might flatline. One of the messages that I hope to convey is that, at a time the world leaders are looking for other sources of demand, you have a number of developing countries that have fiscal space. Their budget deficits as a percentage of GDP are far less than you find in the U.S. and the UK, but they have a financing constraint.

So, one way that the developed countries can help themselves and the globe is to make sure that the Mexicos, the Indonesias, the Egypts, the Turkeys, the Colombias have got the ability to access finance to build demand. So, we've seen the effect of China and to a degree India, but we could expand that.

And a second issue that I believe the leaders will discuss is what I or others have called the new normal. What is the new growth pattern that comes out of this? You cannot just rely on the U.S. consumer as a source of demand in the future. And here, again, if one takes the financing of today and invests in productive infrastructure, helps develop the education and health of the workforce; you can have multiple poles of growth in the international system, just as we've seen China and India play.

So, those are issues of today as well as structural issues. What this report is trying to highlight is there is also a huge community that's been left behind, and this is the one that is most vulnerable and most at risk and one way to address this is, as Sam and I have said, is to operationalize the food security initiative. We had the tragic passing of Norman Borlaug this week who I have had a chance to know over the years and I consider a true hero. I can't think of any better way to recognize his role--is to make sure that this operation is up and running. . I was at the G8 meeting. You had pledges, you had people that have intentions, but it is not operationalized yet. We don't have the mechanisms that have the money get to the farmer or the value chain and make sure that we expand production and productivity, and it is our view that that should be done in a way that focuses on--transparently, as Sam mentioned--results of effectiveness so that we can learn along the way.

In addition, I believe that between London and today, we have learned there are some gaps in the financial architecture, and one is for the countries that we've described in this paper, which are really the 43 poorest countries, that when a shock hits they don't have any ability to cushion it. And so, I'm suggesting that the Bank be commissioned to work with others on a fast pace looking towards our November mid-term review of IDA to see what else we can try to do about that to build an additional insurance facility.

So, ultimately, this is up to the political leaders. They will also be focusing on issues like financial regulation and supervision. They will be focusing on issues such as trade, but I'm hopeful that while they missed the bullet of a financial calamity, we are certainly not out of the woods yet and they will focus on the issues we need to pay attention to over the next 12 to 18 months, as well as building back better.

What you want to try to have is some sustainable growth, both environmentally, as one talks about climate change, but also in terms of the ability that you just don't start growth and then have it slip.

Your second question was?

MR. DAVIS: "Responsible growth." You used that a couple of times.

MR. ZOELLICK: Oh, responsible growth. Well, it fits this notion in two ways. One is, responsible growth has to be sustainable growth. So, that means you have to have a growth model that we can keep going.

It also means that as you start to have the rising economic players that it has to have everybody play a role in the system.

And so, a responsible globalization is one that recognizes that we're all in this together and that there's a role for the rising economic powers, there's a role for the developed countries, and there's a role for those that otherwise would be left out. So, when I talked about an inclusive and sustainable globalization, those, to me, are the core components of responsibility.

There is obviously responsibility in terms of avoiding tax havens, and what I am urging that the leaders add to that is the recovery of stolen assets; it is a very similar issue and you have UN treaties that countries need to ratify and then build in the system to be able to execute this. We've already recovered some money for Haiti and we've had some 16 or 17 other countries approach us.

And another part of responsible globalization is a financial market and capital system that, well, it recognizes that you've got cycles and booms and busts that avoids the type of calamity that we had here.

MR. HANLON: Okay. Thanks very much.

We'll go to the next question, please.

OPERATOR: Our next question comes from Luohan from Xinhua Agency.

Go ahead, sir, your line is open.

MR. LUOHAN: Okay. Thank you.

I have a two-part question for President Zoellick.

The first part, it seems that you always call on the rich countries to make more effort to help poor countries, and that during the summits leaders always made commitments but did less in the reality. So, how to solve the problem?

The second part that, you can see the rising protectionism in the world, for example, the recent tariffs against Chinese tires by Obama Administration. So, how should the world react to the challenge and do you have some proposal for the upcoming G20 Summit?

Thank you.

MR. ZOELLICK: Well, first, on the responsibility of the developed countries. The first responsibility is to follow through on commitments they've already made, and that goes back to the Gleneagles commitments on development assistance and particularly for Africa.

Second, as Sam and I have emphasized, this food security commitment, $20 billion, we need to operationalize and make sure people not only deliver the money, but that it's used effectively, whether through the World Bank, U.N. agencies, CSOs, bilateral efforts, and make sure that we don't duplicate effort and every dollar or RMB is used effectively.

A third aspect is I think that countries, developed and developing, did support the IMF importantly and effectively at the London Summit.

And that was part of stabilizing the financial system. But I think we now need to go beyond that, and so what I talked about are the efforts we're making at the World Bank where we may need some additional support for the poorest countries, or for our overall financial resources.

One also has to recognize that the donor countries are under significant budget stress themselves, and what this means is that, whether it's the NGOs and CSOs that Sam's involved with or multilateral institutions like the World Bank, we have to be responsible, transparent, effective, and get the best benefit out of it because it's hard to make the case to taxpayers. So that's also part of the combined message.

On the issue of trade, I think first, as a principle, people should try to negotiate their disputes wherever they can, so I'm hoping that the United States and China try to work through these issues in a way that ends up lowering barriers and not creating anxieties of protectionism.

As a more general matter, the best way to defeat protectionism is to be on offense in opening markets, and the Global Trade Round at Doha, in my view, could be done. It's going to take some political will and effort.

I think Pascal Lamy, the Director General of the WTO, will be at the G20 Meeting, and I hope he presses it forward, and I hope the leaders respond in a way that allows us to get that done.

We at the Bank believe that trade needs to be linked to development, and so we are also working on a series of things that we can support and facilitate trade, whether it be logistic systems or--when I was in Kenya and Uganda a couple weeks ago, I saw a one-stop border site that had reduced trucking clearance times from two days to less than two hours.

And so there's a lot that has to be done to link development policy to trade policy so people can take advantage of open markets.

MR. HANLON: Okay. Thank you. And we'll take the next question, please.

OPERATOR: The next question comes from Tom Barkley [ph. at 00:39:00] of Dow Jones. Go ahead, sir, your line is open.

MR. BARKLEY: Yes, Mr. Zoellick. I just was hoping you could provide some context on whether the situation for low-income countries has shown any signs of stabilization? For example there's this figure of $59 billion in financing needs for this year.

And as recently as June, there was a larger figure for developing countries in general of between $350 billion and $635 billion. I'm just wondering if you can provide any context on to whether for low-income that $59 billion is higher or lower than it was recently.

MR. ZOELLICK: Okay. One of the challenges when talking about developing countries is we obviously cover a wide span here. And one of the first points that I've been trying to make and I made at the G20 Finance Ministers, but want to make, if I can, with the heads of government, is the point that I stressed with Bob Davis--the answer to Bob Davis's question.

There's a huge opportunity here to help with the financing of some pretty well run, sort of middle-income, low middle-income countries that can help them with the safety net investments in the future, help build global demand, but they just need the financing.

Yes, you've seen some opening up of markets for international sovereign debt. But from talking with a number of the finance ministers in these countries, it's limited. It's expensive, and if they borrow in their own markets that often drives out the private sector, which is not what you want to do. You want to be looking at a handoff from the government to the private sector.

So, you know, we almost tripled our IBRD lending to about $33 billion in the fiscal year that ended June 30th. This year it looks like we'll even be higher, with $40 million or more.

Other regional development banks are trying to stretch to use their capital. And one needs to keep in mind that 70 percent of the people living under a $1.25 today are in these countries. So, if you want to address poor people, there's a lot of them in these countries that we need to try to help.

But this paper is also trying to--is to take the IDA set, which we are also trying to frontload our support for. We did $14 billion in the past fiscal year, an increase of about 25 percent. But there, we've got a constrained envelope of $42 billion over three years.

This paper is trying to look at the situation of 43 countries that in a sense are most vulnerable within that group. And here, you get different patterns. For some, as Sam said, they're very dependent on remittances. If you take some of the Central Asian countries, some 40 to 50 percent of their GDP is based on remittances, and a lot of those are workers in Russia. So as they get unemployed in Russia, they get hit very, very, very hard.

For some, who are commodity producers, it goes up and down with commodity prices, but some of them have been hit depending on what they export. Some are very, very dependent on tourism, and so as the world economy has come down, a lot of tourism has fallen, so they'll slip.

Trade, and here again it's not only the demand for trade, but whether they can have the financing. So we've tried to provide some of the financing for trade.

If you're a country that's coming out of conflict, you have another issue. So if, I was just in the Democratic Republic of Congo, or if you're in Liberia, you have the problem that Sam and I have been working on in terms of food and basic necessities.

And here it can be a question that can be exacerbated as in the case of Kenya by droughts. So one of the points we've tried to emphasize is the food security challenge is not over just because prices have come down somewhat in developed country markets. They remain high in a lot of developing country markets.

Over time, we can deal with that with better food production, but we also have some immediate food assistance needs now that need to be addressed through safety net programs such as school feeding and mother-to-child nutrition programs.

So, what the paper is trying to do, if you look at it, is you see we actually try to put in some examples of particular countries--Zambia and others, depending on their overall export profile.

But the general point that we drew from this paper is we need a better shock facility not only for this environment, but in future ones to be able to try to help these countries.

MR. HANLON: Okay. And we'll take the next question, please.

OPERATOR: Our next question comes from Krishna Guha from Financial Times.

Go ahead, sir. Your line is open.

MR. GUHA: Thank you. Hi, Bob. A couple of questions, if I may.

First, you just touched, I think, briefly on this issue, but when--as we come out of this crisis, are you concerned that a rebound in oil prices that might not be perhaps accompanied by a rebound in other prices of exports from some of the poorest countries, including the commodity producers, could put a set of countries in a particular bind?

And separately, if I may, are you seeing evidence that this massive-scale borrowing by industrialized world sovereigns is having a direct impact in terms of crowding out any categories of developing nations' borrowing?

MR. ZOELLICK: Well, let me deal with your second question first.

I identified that risk, the risk that as developed countries guarantee large amounts of debt and issue their own debt, that it will crowd out borrowing from otherwise well-run developing countries as a problem back at the Washington Summit. And at the time--

MR. GUHA: And did you--are you seeing real evidence of that happening now?

MR. ZOELLICK: --yeah. And as I said, what you've seen is that some of the markets for some of the better sovereign credits [inaudible] to a degree, but a lot of them, talking directly with Finance Ministers, still feel very constrained in the volumes they can borrow and they definitely are still paying up in terms of price.

The other key point to look at is that you don't want them crowding out their private sectors. And here you have to look little bit market by market.

So, in the case of Central and Eastern Europe, I think one good sign has been that the banks that in effect had foreign direct investment in Central and Eastern European banks have stayed in the market and rolled over some of the debt.

If you're a Central and Eastern European country, however, that borrowed in foreign currency, whether from the official level or the private sector level, you're going to have a hard time rolling over that credit.

So, as in any circumstance, you have to look at the particular market, and it also goes compared to what?

I just was looking at a paper last night about, you know, Indonesia's recovery and its growth is coming back to four, maybe 5 percent, but its budget deficit as a percentage of GDP is 2.5 percent.

Well, the U.S. and Britain are well over 10. There's probably room there to, given their pay down of debt in the past, to expand a little bit more.

We helped put together a special financing mechanism for Indonesia to do that with Japan and Australia and the Asian Development Bank.

But this links a little bit then back to your first question. People should not be misled by reports that you may be starting a recovery. There are still a host of fragilities out there, and just, you know, one of them is we're in a period where for the United States in particular, but some other countries as well the stimulus programs are still really working through the demand side.

So, probably some of the largest stimulus in the United States is going to be coming at the end of this year and the beginning of next year.

But what happens after that? Will you get the handoff to the private sector?

If you look in China, the credit expansion has been very, very fast and very significant. They're starting to dial some of that back. You could find yourself in a situation later in 2010 that could put some of the acceleration in Chinese growth under pressure.

Another could be the imbalance of this recovery. You might see in general a quicker recovery in East Asia. You might see tightening of monetary policy in higher interest rates. This could see some capital go to East Asia, and then countries are going to have to face the question of do they permit inflation or do they have currency appreciation?

So, as I look through the global economy, and Central and Eastern Europe is certainly not out of the woods yet, either, there are a series of things that could go awry. I'm not predicting they will, but I'm saying that one of the important things at London was that people anticipated, you know, a serious collapse and took action.

Well, we now have to anticipate the dangers that still lurk out there, and they are serious, and make sure that we take the action to support those, particularly those that are less vulnerable.

Take the trade area. If, you know, right now I made the point that protectionist measures have been a low-grade fever. The temperature is rising. So, you have to be careful.

These are the sort of things that, you know, we've seen in the past where protectionist actions not only have effect on trade, they can have an effect on the financial markets. So, these are the types of questions that leaders have to be responsible for as they build back for the future.

And the good thing about this at the macro level is just as, you know, if we were having this conversation 10 years ago, you would have been talking about developing countries other than kind of how to help them out of the hole; the developing countries can be part of the solution with the right investments.

And what we're seeing is not only are there these--the types of financing needs that I talked about, but there's some emerging interest in coming to invest in these countries, but the vehicles haven't yet been developed.

That's one of the things we're trying to do at IFC and in asset management development, whether for equity markets, whether for infrastructure, whether for restructuring private-sector debt. Obviously, we've already done it on trade finance.

But that's also got to be part of the new normal.

MR. GUHA: Thank you.

MR. HANLON: Okay. And we have time for a couple of more questions, please.

OPERATOR: All right. Our next question comes from Lesley Wroughton from Reuters. Go ahead, sir or ma'am. Your line is open.

MS. WROUGHTON: Thank you very much. Lesley Wroughton, yes.

The question I have is on the agriculture part of this. You're asking for the G20 to finalize that pledge. Do you expect the G20 to come up with a higher number? I mean these are just the industrial countries that pledged $20 billion.

Surely, the G20 could, you know, pony up a lot more for that. The other question, you know, is the World Bank, you know, is your feeling that the G20 is going to ask the World Bank to oversee those funds and then for Mr. Worthington, you know, I've heard from CSOs who have concerns about the World Bank overseeing or looking after that money, managing that money and then spending it for them.

Is, you know, what are your feelings about spending of that money?

MR. ZOELLICK: Well, Lesley, just to respond. In terms of dollar amounts, I think the $20 billion contribution or pledge made in Italy is a sizable number. And my purpose at this meeting is to try to make sure that it's operationalized.

It wasn't just from the G8 countries. I think the number that they took involved a number of the other countries that were there--Australia, Russia, different parties--so many of the countries that are part of the G20.

And so, what I want to try to focus on is how do we make sure that the funds are flowing in a vehicle that we link them to national decision-making, for example, the programs that have been developed in sub-Saharan Africa that we partly launched a couple years ago. So, on top of that $20 billion, we are doing roughly about $6 billion in agricultural lending.

As for the mechanism, what we're suggesting is that we can help in terms of trying to in a sense manage some of the fiduciary responsibilities for financing, but that there should be the numbers involved. You're going to have IFAD. You're going to have FAO involved. You're going to have some bilateral programs, but where you have bilateral programs, it's very important that they don't overload these countries.

We execute a number of these through the CSO community, and we have our own programs. So, as in general, as we've done from the start of the food crisis, we think we can and should play an important role here, but we want to also to try to play a facilitating role, and we want to--we're happy and believe we should be working with others as we do this.

I do think, and this is going to be important, is that, you know, the world's had some experience up and down with expanding food production. And there's the role of private sector, value chain development.

We need to build in methods where we put in feedback loops here and learn, because some things will work better than others.

And so, I'm a big believer in that if you have this $20 billion, we need some way to try to make sure they actually follow through on the pledges, that it's used effectively with country programs, and we tried to measure the results and effectiveness so as to learn as we go.

MR. HANLON: Okay. And we have time for--

MR. ZOELLICK: Miko [ph.], Sam's got a--she had a question for Sam.

MR. HANLON: Great.

MR. WORTHINGTON: Just quickly have--I think first that no other institution other than the World Bank could handle disbursement of funds of these size to be engaged, but it really is no one institution, and there is a need for coordination. The World Bank has been playing that role, and I spent some time with David Navarro [ph. at 0:53:51] at the UN yesterday about the U.N.'s handling of this.

But ultimately, these funds need to have some clear overarching objectives. They need to be focused on the small holder farmers, who are the most vulnerable. They need to be gender sensitive, and realize the role that women play as farmers who are often left out of the agricultural development process.

They need to be demand-driven in the sense that recipient countries must lead where these resources go as well as local populations. And they must be environmentally sustainable.

And we're talking about funds that will be spent in multiple ways as to degree of coordination, and, yes, the World Bank should play a large role in the disbursement, but they will be simply one of many institutions. And, ultimately, it comes down to how these funds are focused in the ways I just described.

MS. WROUGHTON: Thanks.

MR. ZOELLICK: And one other small point that Sam and I and the other CSOs discussed, but I think it's worth drawing out for you. There's an appropriate focus on production and productivity, but one needs to recognize that the Four Horsemen of the Apocalypse haven't been retired. We still have food assistance issues.

The challenge here is can we connect some of the food assistance issues with some of the production possibilities in the developing world. So, you're still going to have droughts. You're still going to have upheavals. You're going to still have problems where the international community has to try to provide food assistance.

It'd be best if the food could come from other developing countries.

MR. HANLON: Okay. Thanks very much. And now let's take our final question, please.

OPERATOR: Our final question comes from Veronica Smith of Agence France Presse. Go ahead, ma'am. Your line is open.

MS. SMITH: Thank you. Mr. Zoellick, the U.S.A., Jubilee U.S.A. Network has put out a statement today saying that of the $50 billion promised by the G20 to low-income countries, only $23.5 billion has been--excuse me--has been delivered to date and that they called for a number of steps to ease the debt burden on poor countries.

Are you going to be addressing this problem at the G20? Are you going to be arguing for some sort of a debt moratorium?

MR. ZOELLICK: Well, first, I haven't seen the paper, so I'm afraid I don't know the specifics of the numbers. I guess my general principle is countries should keep their promises.

That $50 billion covers I think a variety of different types of support for countries. My main message is that particularly for the low-income countries, whether in food security or some of the other things we talked about, they not only need to keep their pledges, but we're going to have to look to how we try to provide additional support.

On the debt issue, which Sam mentioned, we have to make sure that the countries can--the donor countries continue to finance the debt forgiveness. We've still--he mentioned HIPC. There have been two major types of debt forgiveness initiatives, and we're still waiting for some of the developed countries to pay for some of the debt that's been forgiven.

I think the next challenge is really the one he mentioned about what combination with grants and concessionary support. It's better if you can get this in grant funds. Our IDA funding is either grants for some countries or long-term, no interest loans for other countries.

You have some countries now in Africa that are worried about the possibility that those procedures will cut them off from additional finance, and we have to try to make sure they're not cut in a low-debt, low-growth trap, but that really depends on country by country.

And here I come back a little bit to some of the private markets. There is opportunity for investment in these countries, and some of this including in the agricultural sector, and it's one of the things we think we can do, through our IFC platform, is help to intermediate some of those funds, and we're having some promising follow-up with sovereign funds and pension funds and insurance funds and others on a way to do that.

The second point I'll just mention- I was in China a couple weeks ago, and I picked up a lot more interest about the possibility of some basic Chinese manufacturing moving to Africa in addition to the resource and infrastructure development.

This could open a whole new door, not only to create jobs but to move some of the African countries on the development model you've seen in East Asia.

But to do it, you have to create the right context of infrastructure, energy, roads, and so we are looking to try to work with the Chinese government to try to develop some industrial zones to advance this.

MR. HANLON: Okay. Thank you very much, ladies and gentlemen, for joining us today. Thank you very much, Mr. Worthington and Mr. Zoellick. That concludes today's call.

The project Municipal Development Program has changed to Active

2009-09-19T04:00:00.000Z

The project Municipal Development Program has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Municipal Development Program Project for West Bank and Gaza is to improve municipal management practices for better transparency. There are four components to the project: the first component of the project is to provide grant allocations to municipalities for capital investments and service provision. It will cover the costs of goods, works and services. It addresses two key constraints for municipalities: severe municipal deficits, and poor municipal management. MDP will provide eligible municipalities with performance based grants for investments in service delivery, using an allocation formula designed to incentives better management practices. The second component of the project is to support municipal innovations and efficiency by promoting amalgamation, energy savings and responsiveness to citizens. This component will promotes learning and innovation to promote municipal development, including implementation of Ministry of Local Government (MoLG) policy decisions. The component will cover the costs of goods, works, training and services. The two main areas of intervention envisaged are: (a) strengthening amalgamation of local governments; and (b) piloting innovations that promote municipal revenue generation or cost savings. The third component of the project is to provide capacity building to municipalities and Municipal Development and Lending Fund (MDLF). This component will support municipalities to graduate to higher performance categories in the performance ranking system in which they are currently classified. It will cover the costs of goods, works and services. Building on the Local Government Capacity Building Project (LGCBP) that is currently being implemented by the MDLF, administered by the Bank and financed by Denmark, MDP will provide technical assistance to municipalities to improve their: (i) financial management, including revenue enhancement for municipal service delivery, (ii) planning capacities, with a specific focus on community participation, and (iii) technical capabilities, in particular for operations and maintenance. The fourth component of the project is program management, including monitoring and evaluation, audits and technical assistance to municipalities in implementing sub-projects.

World Bank Board Discusses Inspection Panel Eligibility Report for Institutional Reform Program for the Yemen Arab Republic

2009-09-17T22:09:44.000Z

Contacts:
Inspection Panel
Luis Schunk
lschunk@worldbank.org
Tel: +1 202 458- 5200
World Bank
Najat Yamouri
nyamouri@worldbank.org
Tel: + 1 202 458-1340

Washington, D.C., September 17, 2009 - On Tuesday September 15, 2009, the Board of Executive Directors of the World Bank discussed the Eligibility Report for an Inspection Panel case concerning the “Institutional Reform Development Policy Grant” (IRDPG) to the Yemen Arab Republic. The Request for Inspection was made by two residents of Sana’a, Yemen, on their own behalf and on behalf of the Yemen Observatory for Human Rights, a nongovernmental organization that addresses issues of human rights, transparency and governance in Yemen. The Request concerned the availability of documents in Arabic, adequacy of consultations and potential impacts from the reform program.

The IRDPG’s aim is to facilitate private sector-led economic growth by supporting tax reforms designed to lower the corporate income tax rate in parallel with removing arbitrary exemptions that currently result in a low effective rate. It will also support implementation of a new procurement law, to strengthen transparency and effectiveness of public procurement. The IRDPG will, among other actions, strengthen oil sector transparency by supporting Yemen’s accession to the Extractive Industries Transparency Initiative (EITI). The Program is a $51 million two-tranche operation that was approved in November 2007, based on the Third National Development Program for Poverty Reduction (DPPR) that was prepared through a consultative process between the end of 2004 and mid-2006.

The Inspection Panel presented its Eligibility Report and recommendation to the Board on June 19, 2009. The Inspection Panel noted important steps, both proposed and taken by Bank Management, in its Response to the Request, to address the significant issue of translation of documents. The Inspection Panel also determined, however, that issues on consultation and participation remained, and recommended an investigation on these issues.

In advance of Tuesday’s Board discussion, which was requested by an Executive Director in July, Bank Management submitted a significantly enhanced action plan to address these remaining important issues and the broader issue of consultation in Yemen, as appropriate within the framework of applicable Bank policies. Based on this enhanced action plan, and the Requesters’ expressed interest in implementation of enhanced actions, the Inspection Panel proposed to defer its recommendation to investigate, as it has done in some similar past cases, in order to promote this opportunity to address concerns raised in the Request.

The Board agreed with the Inspection Panel’s proposal to defer its recommendation to investigate and welcomed Bank Management’s commitment to report on progress in the implementation of the enhanced action plan by June 2010, after which the Inspection Panel will recommend to the Board whether an investigation is warranted based on its independent review of the situation.

The Board members welcomed this constructive approach by the Inspection Panel and Bank Management and indicated the importance of implementing the actions proposed. The Board further noted the importance of the Inspection Panel process in enhancing the accountability of the institution, and in bringing important issues of consultation, participation and translation to the attention of the Board. A healthy part of effective oversight by the World Bank, as a shareholder-owned institution, includes the Board's interest in and engagement with the work of the Inspection Panel, which is an independent accountability mechanism reporting directly to the Board.

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For more information, please visit on the Inspection Panel, please visit:
www.inspectionpanel.org

For more information about the Institutional Reform Development Policy Grant,
please visit this page.

Palestinian Authority: Municipal Development Program – Phase I

2009-09-17T21:59:35.000Z

WASHINGTON, September 17, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Palestinian Authority: Municipal Development Program – Phase I

Trust Fund Grant: US$10 million

Project ID: P111741

Project Description: The objective of the Municipal Development Program - Phase 1 the West Bank and Gaza is to improve municipal management practices for better transparency. There are four components to the project: the first component of the project is to provide grant allocations to municipalities for capital investments and service provision. The second component of the project is to support municipal innovations and efficiency by promoting amalgamation, energy savings and responsiveness to citizens. The third component of the project is to provide capacity building to municipalities and Municipal Development and Lending Fund (MDLF). The fourth component of the project is program management, including monitoring and evaluation, audits and technical assistance to municipalities in implementing sub-projects.

Media Contact

Dina El Naggar

(202) 473-3245

delnaggar@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64312881&piPK=64302848&theSitePK=40941&Projectid=P111741

For more information, please visit the Projects website.

Low-Income Countries Face Long Recovery -- Serious Challenges Require More and Better Support

2009-09-16T15:00:00.000Z

Contacts:

David Theis

E-mail: dtheis@worldbank.org

Phone: 202-458-8626

WASHINGTON, September 16, 2009 — While the global economy is showing tentative signs of recovery, 43 low-income developing countries are still suffering the consequences of the global recession, which highlights the need to increase support to the poorest countries dealing with economic volatility and crisis, the World Bank said.

In a paper prepared for the upcoming G-20 meeting in Pittsburgh, the World Bank said that as a result of the crisis 89 million more people will be living in extreme poverty, on less than $1.25 a day, by the end of 2010. The global recession has also put at risk $11.6 billion of core spending in areas such as education, health, infrastructure and social protection in the most vulnerable countries.

“The poor and most vulnerable are at greatest risk from economic shocks— families are pushed into poverty, health conditions deteriorate, school attendance declines, and progress in other critical areas is stalled or reversed,” said World Bank Group President Robert B. Zoellick. “The poorest countries may not be well represented on the G-20, but we cannot ignore the long-term costs of the global downturn on their people’s health and education.”

“InterAction is pleased that the World Bank continues to insert the needs of the world’s poorest nations into the G-20 conversation,” said Samuel A. Worthington, President and CEO of InterAction, the largest coalition of U.S.-based non-governmental organizations focused on the world’s poor. “The G-20 countries must rapidly implement the London Summit pledge of $50 billion dedicated for low-income countries to aid them in designing and implementing the policies and social safety nets most developed nations have already established.”

Despite strong international efforts to cushion the impact of the global recession on Low-Income Countries, the paper states that low-income developing countries continue to suffer the consequences of the food, fuel and financial crises, and the poorest countries will need additional assistance to confront and move beyond the global recession.

The paper recommends coordinated policy action by the G-20 and others in the following areas:

· Agriculture: The food crisis is not over in poor countries, and addressing food security in Low-Income Countries will require raising productivity and incomes of the world’s poor farmers. The paper calls on the G-20 to endorse the pledge of $20 billion at the G-8 summit in L’Aquila, Italy, for agricultural development, with firm details on how country commitments will be met, delivery will be operationalized with national ownership, and results and effectiveness will be assessed.

· Small- and Medium-Sized Enterprises (SMEs): SMEs are critical to the resumption of growth in Low-Income Countries. The paper argues the G-20 should actively support scaled up efforts to expand finance for SMEs. The World Bank Group plans to double its mobilization of finance for SMEs by 2013 to $15.5 billion.

· Crisis Response Facility: The current crisis—and others that will occur—highlights the pressing need for a Crisis Response Facility to ensure that quick and effective assistance can be provided to Low-Income Countries following shocks. Failure to address this need could jeopardize the progress achieved in many poor countries based on recent strong reform efforts, and instead lead to costly reversals.

Since the onset of the food and fuel crises nearly two years ago and the subsequent financial crisis and global recession, donors and development agencies have mobilized significant additional resources for Low-Income Countries. However, low-income developing countries have been hit hard by crises not of their making, and face daunting challenges that jeopardize years of progress in combating poverty.

The paper notes that several economic shocks resulting from the financial crisis are taking a severe toll on the poorest countries, including:

Trade: Low-Income Countries have been hit hard by the downturn in global trade, with export market demand estimated to have dropped by between 5 and 10 percent in 2009.
Private Capital Flows: Net private capital flows to the poorest countries declined significantly to $21 billion in 2008 from $30 billion in 2007 and are projected to drop further to $13 billion in 2009.
Remittances: The sharp deterioration in economic conditions has led to significant declines in workers’ remittances to Low-Income Countries, which are anticipated to fall by between 5 and 7 percent in 2009, recovering only modestly in 2010.
Tourism: Many Low-Income Countries, particularly small island states, depend heavily on tourism for foreign exchange and jobs, in both the formal and informal sectors. Worldwide tourism receipts declined by 8 percent between January and April 2009, continuing the sharp falloff recorded during the second half of 2008.

The crisis is slowing dramatically the steady progress achieved in reducing global poverty, notes the paper. In Cambodia, 62,000 garment workers have lost their jobs in this key sector for the economy, with women making up 90 percent of this workforce. Falling copper prices led in 2008 to the laying off of one quarter of Zambia’s mining workers.

The paper describes how the World Bank Group stepped up its financial assistance to help developing countries mitigate the impact of the crisis over its past fiscal year. For the World Bank Group as whole, the result has been record levels of activity—with $58.8 billion committed in FY09 to support countries hit by the global crisis, a 54 percent increase over the previous year, and a record high.

The project Jordan Silos Extension has changed to Dropped

2009-09-04T04:00:00.000Z

The project Jordan Silos Extension has changed to Dropped. To see more information, see the project information in the World Bank project database

The project Avian Influenza and Human Pandemic Preparedness has changed to Closed

2009-09-01T04:00:00.000Z

The project Avian Influenza and Human Pandemic Preparedness has changed to Closed. To see more information, see the project information in the World Bank project database