Malawi | World Bank

Malawi - Effective Management of the Nkhotakota Wildlife Reserve Project

2013-06-17T04:00:00.000Z

The objective of the Effective Management of the Nkhotakota Wildlife Reserve Program for Malawi is to ensure effective management of the Nkhotakota wildlife reserve through a sustainable management model focusing on its Bua watershed area. The project will focus on the Bua River area of the Nkhotakota wildlife reserve, which covers about one third of the reserve. Two roads provide easy access to the reserve in this area, where two tourism concessions are located. And this project have following four components: (i) reserve management, the expected output of this component is 'biological resources inventory carried out for NWR focusing on Bua watershed area'; (ii) revenues for improved reserve support, the expected output of this component is 'tourism assessment and plan for NWR with a focus on the Bua watershed developed in coordination with preparation of the management plan'; (iii) conservation based community livelihood the expected output of this component is 'participatory governance mechanism of Nkhotakota wildlife reserve established'; and (iv) project management the expected output of this component is 'project management functional (financial management, procurement, monitoring and evaluation (M&E) reporting)'.

Main report

2013-06-14T04:00:00.000Z

The objective of the Improve Education Quality Project is to increase access and equity and enhance quality of the teaching and learning environment in basic education. In the last year the Government has significantly accelerated program implementation though: (i) addressing capacity constrains in planning and procurement; and (ii) use of more effective implementation mechanisms. This includes adding additional mechanism for school infrastructure, decentralizing the procurement of learning materials, and increased funding directly schools. The Government of Malawi has an action plan to complete the program that is acceptable to International Development Association (IDA). This will be the first extension of the project.

Data sheet

2013-06-14T04:00:00.000Z

Malawi - First Economic Recovery Development Policy Operation Program

2013-06-12T04:00:00.000Z

The objectives of First Economic Recovery Development Policy Operation (DPO) Program for Malawi is to strengthen macroeconomic and public finance management and lay the foundation for stronger growth and protection of the poor. The program is geared towards consolidating macroeconomic policy reforms implemented under the stabilization effort undertaken since May 2012, as well as prepare the ground for longer term structural reforms for the post-election era. This program document the economic recovery development policy operation to the Republic of Malawi for SDR 33.4 million (50 million US dollar equivalent), on standard International Development Association (IDA) terms. The DPO series is designed to assist the Government of Malawi (GoM) consolidate reform measures undertaken since May 2012 aimed at stabilizing the economy, supporting quick growth rebound and protecting the poor and the most vulnerable while setting the stage for longer term structural reforms. Specifically, the operation will support two key pillars: (i) strengthening the macroeconomic and public finance management through measures aimed at strengthening fiscal discipline to entrench macro-stability as well as improving efficiency and the transparency of the public finance management; and, ii) laying the foundation for stronger growth and protection of the poor through reform measures aimed at enhancing agriculture productivity and diversification; improving energy efficiency and the regulatory environment; improving efficiency in the provision of social safety nets; and, strengthening the country's statistical capacity.

Malawi - Effective Management of the Nkhotakota Wildlife Reserve Project : procurement plan

2013-06-11T04:00:00.000Z

Official Documents- Financing Agreement, Grant H849-MW (Closing Package)

2013-06-11T04:00:00.000Z

Official Documents- Supplemental Letter ref. Financial Data, Grant H849-MW (Closing Package)

2013-06-11T04:00:00.000Z

Malawi - Agricultural Development Programme Support Project SIL (FY08) : P105256 - Implementation Status Results Report : Sequence 09

2013-06-07T04:00:00.000Z

The project Malawi Economic Recovery Development Policy Operation 1 is now in the pipeline.

2013-05-30T04:00:00.000Z

The project Malawi Economic Recovery Development Policy Operation 1 is now in the pipeline. To see more information, see the project information in the World Bank project database

Malawi - Additional Financing to the Malawi Agricultural Development Program Support Project : procurement plan

2013-05-23T04:00:00.000Z

Malawi - Shire River Basin Management Program Project : procurement plan

2013-05-23T04:00:00.000Z

Malawi - Energy Sector : P099626 - Implementation Status Results Report : Sequence 03

2013-05-16T04:00:00.000Z

Malawi - Nutrition at a glance

2013-05-10T04:00:00.000Z

The World Bank is supporting the First Education Sector Support Project which includes as one of its components, a school health and nutrition package to all primary schools with the following cost-effective interventions: distribution of vitamin A and iron-folic acid to school children under 10 years old, de-worming, treatment of malaria and fever, and the promotion of good health and nutrition practices. The World Bank is also supporting the US$32 million Agriculture Development Program Support Project which aims to improve the effectiveness of investments aimed at food security and sustainable agricultural growth. The World Bank is also completing a sector study on infant and young child feeding practices of which the dissemination is scheduled for April 2010. The planned dissemination will be used to raise the level of policy dialogue towards program scale up. The country management unit has demonstrated strong interest in supporting the nutrition agenda in Malawi.

Micro- and meso-level weather risk management : deficit rainfall in Malawi

2013-05-10T04:00:00.000Z

In the agricultural sector of many developing countries, weather risk is pervasive and remains one of the major constraints limiting farmers from accessing loans necessary to expand their production and improve productivity. Agricultural lenders particularly worry about high rates of default in the event of drought. Out of millions of smallholder farm households in Malawi, only 50,000 currently access credit from formal financial institutions for the purchase of agricultural inputs. Other smallholder's access loans provided through informal credit and savings associations, but this group is also a small percentage of the sector. Malawis commercial banks had traditionally focused on lending to larger commercial farms, yet also maintained a portfolio of loans for smallholder farmers. In 2004-05, the country experienced a devastating drought leading some 40 percent of the smallholder population to rely on food aid distributions that year. In 2005-06, most of the country received favorable rainfall, but farmers in a few major production zones experienced shortages of rainfall and reduced harvests. In 2006-07, Malawi obtained a record maize harvest, in part due to favorable rain in much of the country. However, even in the same year, pockets of drought affected a number of areas and others were affected by flooding. In effect, rainfall risk is endemic, and must be factored into the costs of doing business, including the costs of providing agricultural credit. The World Bank and country team in Malawi have been working with local stakeholders to transition pilot programs into sustainable private sector driven businesses.

Health equity and financial protection datasheet : Malawi

2013-05-08T04:00:00.000Z

The health equity and financial protection datasheets provide a picture of equity and financial protection in the health sectors of low-and middle-income countries. Topics covered include: inequalities in health outcomes, health behavior and health care utilization; benefit incidence analysis; financial protection; and the progressivity of health care financing. The tables in this report show how health outcomes, risky behaviors and health care utilization vary across asset (wealth) quintiles and periods. The quintiles are based on an asset index constructed using principal components analysis. Benefit-Incidence Analysis (BIA) shows whether, and by how much, government health expenditure disproportionately benefits the poor. The distribution of subsidies depends on the assumptions made to allocate subsidies to households. Under the constant unit cost assumption, each unit of utilization is assumed to cost the same and is equal to total costs incurred in delivering this type of service divided by the number of units of utilization.

Malawi - Multi-Sectoral HIV/AIDS Project (MAP)

2013-04-24T04:00:00.000Z

Ratings for the Multi-Sectoral Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) Project (MAP) for Malawi were as follows: outcomes were moderately satisfactory, risk to development outcome was high, Bank performance was satisfactory, and Borrower performance was satisfactory. Some lessons learned included: a sector-wide approach to HIV or AIDS can help a country with a generalized epidemic achieve positive results, efficiently. This is achieved through (i) reducing the administrative burden on the coordinating body (NAC) through joint work programming, accounting, and reporting systems; (ii) enabling the coordinating body to develop a strategic, integrated approach to coordinating the national response; and (iii) building local ownership of the national program as a whole. Pooled funding mechanisms are an efficient tool to support HIV national strategic plan. Government ownership and setting up proper functional institutional arrangements is critical to achieving results. There are benefits of centralized procurement for common items and high value capital goods in addressing capacity constraints of sub-grantees.

Official Documents- Agreement for MDTF Grant TF013825

2013-04-12T04:00:00.000Z

Official Documents- Disbursement Letter for MDTF Grant TF013825

2013-04-12T04:00:00.000Z

Malawi - First Economic Recovery Development Policy Operation Project

2013-04-11T04:00:00.000Z

PPIAF assistance in Malawi

2013-04-02T04:00:00.000Z

Since 2000 Public-Private Infrastructure Advisory Facility (PPIAF) has funded 14 activities in Malawi worth $2.9 million. The focus sectors have been urban water supply, the development of transport corridors, universal access to telecommunications, and support to the legislative and regulatory frameworks for public-private partnerships (PPPs). In addition, one activity under the Sub-National Technical Assistance (SNTA) program provided assistance to develop a financial sustainability plan for Electricity Supply Commission (ESCOM), the country's state-owned electricity utility. PPIAF funding was requested by the government in 2000 for a study to determine potential options for involving the private sector in the provision of water in Blantyre and Lilongwe as a means of extending coverage to the urban poor at affordable prices, meeting future demand, improving efficiency and service levels, and providing for sustainability. The study concluded that the problems facing Lilongwe (LWB) and Blantyre (BWB) needed to be addressed through a dual approach of sectoral reform and private sector participation in order to stem the current decline in performance. This approach would also provide an attractive platform for the private sector, which would bring long-term benefits to the sector, including investment. By 2006 LWB and BWB had not implemented the recommendations from the PPIAF activity, and both utilities continued to grapple with operational efficiencies. It was in this context that the government of Malawi requested follow-on PPIAF support in 2006 for the development of a communications strategy to gain support from key stakeholders for the government's urban water sector reform program and related restructuring and efficiency improvements of LWB and BWB.

Malawi - MW: Mining Governance and Growth Support Project : P120825 - Implementation Status Results Report : Sequence 03

2013-03-31T04:00:00.000Z

The project Business Environment Strengthening Technical Assistance (BESTAP) has changed to Closed

2013-01-04T05:00:00.000Z

The project Business Environment Strengthening Technical Assistance (BESTAP) has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Business Environment Strengthening Technical Assistance Project for Malawi is to support capacity development and investment climate reforms in order to accelerate economic growth. A level one restructuring of the project was approved by the World Bank Board on a 10 day no objection basis in November 2010. However, due to delays in finalizing administrative arrangements needed to operationalize the use of European Union (EU) co-financing for activities that the World Bank and EU agreed will be jointly financed, there has been subsequent overruns in actual disbursements over allocated disbursements in a number of disbursement categories where there was to be joint financing. This reallocation of proceeds is intended to normalize this situation by reallocating proceeds among the relevant affected categories.

The project Financial Reporting and Oversight Improvement Project has changed to Active

2013-01-04T05:00:00.000Z

The project Financial Reporting and Oversight Improvement Project has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Financial Reporting and Oversight Improvement Project for Malawi is to improve the internal controls, accounting, reporting and oversight of the recipient's finances at the central and decentralized levels in its ministries, departments and agencies (MDAs). The project has four components. (1) Accounting and financial management component will improve the systems and controls for accounting and financial management. (2) Internal audit component will focus on supporting the Central Internal Audit Unit (CIAU) in further development of the Internal Audit Service within the Public Finance and Economic Management Reform Program (PFEMRP) through: (i) Improvement of the governance and legal framework to provide a wider range of internal audit services; (ii) Capacity building of the CIAU including the development of a human resource development plan, support for the recruitment, retention and training of CIAU staff; (iii) Establishment of quality assurance arrangements for high quality audits and reports; (iv) Development and implementation of a system for reporting internal audit performance to the CIAU and coordination with stakeholders. (3) External audit component will focus on strengthening the operational capacity of the National Audit Office (NAO). (4) PFEMRP Management component will manage the agreed development program; provide procurement and financial management support to the implementing departments and to monitor the objectives and performance against the indicators.

The project Financial Reporting and Oversight Improvement Project is now in the pipeline.

2012-11-07T05:00:00.000Z

The project Financial Reporting and Oversight Improvement Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project MAP Additional Financing has changed to Closed

2012-10-02T04:00:00.000Z

The project MAP Additional Financing has changed to Closed. To see more information, see the project information in the World Bank project database

This project paper concern the approval of the Executive Directors for the following: (i) additional financing of the Multi-Sectoral AIDS Project for the scale-up of activities under the original financing; (ii) a modification in the wording of the original project development objective (PDO), in accordance with new regional requirements for HIV/AIDS operations; and (iii) a three-year extension of the project closing date from September 30, 2009 to September 30, 2012. No change in project components is planned. The only change to the project's implementation modalities involves the funds flow, with respect to holding the designated account at the Reserve Bank of Malawi, instead of a commercial bank. Implementation of activities under the original financing has been satisfactory, as per the requirement of BP 13.20. It is noted that the project has been largely in compliance with grant covenants and that earlier fiduciary challenges have been satisfactorily addressed. The additional financing will continue to support and strengthen the national response to the HIV/AIDS epidemic in Malawi in line with the Government's National HIV and AIDS Action Framework (NAF). Like the original grant, this additional financing will contribute towards the implementation of the joint program of work agreed to in the context of the HIV/AIDS Sector Wide Approach (SWAP) in Malawi. This common funding mechanism for the HIV response has been operational since 2004. The Malawi HIV/AIDS pooled financing is jointly supported by the Government and multiple key development partners, including the World Bank. The implementation status and results report (ISR) ratings for the PDO and overall implementation progress for the project have been consistently classified as 'satisfactory' since effectiveness in 2004, and the original PDO's are likely to be met by the scheduled end of the project.

The project Inclusive Education for Disabled Children is now in the pipeline.

2012-09-21T04:00:00.000Z

The project Inclusive Education for Disabled Children is now in the pipeline. To see more information, see the project information in the World Bank project database

Crossing Boundaries

2012-09-06T23:45:00.000Z

As prepared for delivery

Friday, September 7, 2012

World Conservation Congress

Jeju, Korea

Rachel Kyte, Vice President, Sustainable Development

Distinguished guests, ladies and gentlemen - I am honored to have been asked to make the keynote address at this vital gathering of conservation thinking, leadership and action. I am particularly delighted to be here as I had the privilege and honor to work at IUCN a number of years ago. It feels good to be back again!

This Congress brings together some of the world’s smartest thinkers on the policy and practice of conservation and environmental protection. If anyone is going to guide the world in new ways of thinking and acting, it is this group of 7,000 or more which traverses all spheres - private, public, civil society, multilateral, large, small, left, right.

You, as a group, are not at the fringes of decision-making - you are at the very heart of it. Your scientific research, dedication, pursuit of better policies and connections to community all go towards much better, more informed decision-making.

Over the last few years I have had the opportunity to cross some of the boundaries that very often define our perceptions and determine the work in our institutions. My perspectives changed as I moved from IUCN to working with private companies during my time at the World Bank’s private sector arm - the IFC - and they’re changing again now as Vice President for Sustainable Development at the World Bank.

Today, I am convinced that we will have to make a bigger effort to cross boundaries – between our organizations, across public and private sectors and within civil society - so that we reach a better future for our planet.

Let’s take a look at just some of the evidence of environmental decline before us. Evidence is one of the many things that the World Bank and IUCN share.

· The number and size of populations of the world’s species have decreased by almost a third over the last 100 years and this is projected to continue decreasing

· Over 60 percent of ecosystems are in worse shape now than 50 years ago

· 85 percent of ocean fisheries are fully exploited or over-exploited or depleted

· The condition of coral reefs has deteriorated by 38 percent since 1980

· 80 percent of people live in areas where the quality of rivers is threatened

· Climate change is worsening everything. Flood disasters increased by 230 percent and drought disasters by 38 per cent in the 20 years to the early 2000s.

At the same time that this assault on nature has been occurring, we have enjoyed an unrivalled period of economic growth which has seen 660 million people lifted out of poverty in the past 20 years. Don’t get me wrong - we are not saying we need to stop growth to protect nature. Rather, we are calling for a different kind of growth - a greener and more inclusive growth.

An indispensable part of this will be realizing the potential of ecosystems within our economies and to put nature at the foundation of economic strategies. Nature needs to be firmly on the agendas of finance ministers and discussed in board rooms with the focus on building the public-private partnerships to invest in our natural wealth.

Are we ready to do this? Increasingly the World Bank Group is. Now let me share with you three reasons for my cautious optimism that others are ready too.

Firstly, governments are increasingly stepping up - whether by increasing the number and extent of areas under protection or by better recognizing the value of nature and ecosystem services.

Governments, however, are facing daily trade-offs - for example - building a road through a park so that farmers can have better access to markets and/or conserving a road-less national park. Or, they’re weighing up a marina in a mangrove area to boost tourism versus protecting it for its fish breeding, storm protection and carbon storage values.

Effective conservation cannot and will not be driven just by conservation for conservation’s sake. Fortunately, governments increasingly recognize that maintaining and, eventually, accounting for their natural capital comes down to a question of social and economic development. There may not be simple win-wins all the time; but there may be approaches that can come close enough.

We are seeing more and more good examples. In the State of Acre in the northwestern corner of Brazil, the State Government has been making a concerted effort to bring services to its dispersed rural population and to move away from a growth model based on extraction of forest products and expansive agriculture. Where previously 90 percent of Acre’s timber extraction was illegal, now the majority comes from approved forest management plans. Real GDP has increased by over 44 percent and deforestation rates have declined by 70 percent. Acre is showing that safeguarding a state’s natural wealth will also help lift its people out of poverty.

In Liberia, the government has installed a chain of custody system for exporting logs that is helping reduce illegal logging and bringing in much-needed funding for conservation. The Government is also enforcing fishing regulations and arresting vessels found to be fishing illegally.

To manage trade-offs, governments need better information on the economic and social effects of their decisions. More and more governments are embracing the need to use natural capital accounts alongside GDP. At the World Bank Group, we are working with countries from Botswana to the Philippines to put the value of natural capital into the center of their economic decision making. After the 50:50 Campaign at Rio, 62 countries have signed on to support natural capital accounting along with the heads of close to 90 companies. These companies are doing this for competitive reasons - they need to be able to value their assets over the long term.

That brings me to the second reason for my optimism -- the growing leadership coming from parts of the private sector, be they small businesses and local entrepreneurs or Fortune 500 companies.

I see real traction emerging from the advent of rigorous performance standards and principles for corporate behavior. For example, we are beginning to see evidence that the revised IFC Performance Standard on Biodiversity is driving major change both at corporate headquarters and, more importantly, on the ground.

Companies working in developing countries are increasingly investing in biodiversity expertise, in community development, environmental restoration and long-term conservation capacity building. The big shift is that companies are beginning to see this as more than reputational risk management and rather as a way to improve their operations and manage business risk, a key part of creating value. Mainstreaming nature conservation across their operations makes good business sense. Why? Because many companies depend on freshwater, genetic resources, climate regulation, and natural hazard protection to run their businesses successfully and to see their profits grow.

As well as making good business sense, conserving nature and maintaining the resilience of ecosystems upon which people and business depend, allows companies to build trust in the communities in which they operate and among stakeholders abroad. This creates something many call a “social license to operate”.

We are beginning to see more and more companies engage with conservation organizations and external experts to better understand the environment in which they are working. This has inspired some companies to go beyond the minimization of project impacts but also to consider how they might contribute to conservation more broadly.

One example is Rio Tinto which launched its biodiversity strategy at this Congress in 2004. That strategy committed the company to making a Net Positive Impact on biodiversity through its operations. For the past seven years, the company has been piloting the strategy - working alongside government, conservation groups and civil society in Madagascar to build public sector capacity, develop livelihood alternatives, and establish offsets to conserve high biodiversity value areas.

Other examples include Shell in Gabon and Peru LNG which have been working together with the Smithsonian Institution to develop science-based assessment and monitoring of project impacts.

I also see the first few encouraging examples from the finance sector in integrating nature and ecosystem services protection into their investments.

That takes me to my third reason for optimism - that the need for action is overcoming global political sclerosis.

Rio+20 confirmed for me that while at the global level we lack political leadership today to gain consensus, global inaction is being overwhelmed by the ideas, the innovation and the real commitment to action from smart policymakers, city mayors, community leaders and CEOs.

Like-minded coalitions across sectors emerged on almost all issues. People gravitated to ideas and approaches that promised action - whether that was about ocean health, natural capital accounting, access to sustainable energy or reducing short-term climate pollutants.

For the more than 1000 business executives who attended Rio, the message was that action on sustainability is all about future markets, future products, future employees, future investors, and competitiveness linked to sustainability as shared value.

There was an almost overwhelming sense that while we need global governance for ultimate speed and scale, we cannot afford to wait for international agreements to do what everyone knows needs to be done. For every square bracket negotiated, a species is lost and that window of opportunity gets smaller and smaller.

…………………

So, while I have these reasons for cautious optimism --- I am also speaking from a place of urgency. To address the challenges ahead, each and every one of us will have to cross boundaries and we in the conservation community will need to move collectively outside our comfort zones. To this end, I have three appeals.

First to governments: Governments have responsibilities to their citizens that are measured in units of finance – jobs, tax receipts, GDP. We are not naïve: There can be and will be tensions between conservation and development; that’s why public servants need to be armed with the tools and information they need to make fully informed decisions. And that’s why those of you here who work in government should unpack the economic benefits of conservation and translate them into real numbers through natural capital accounting to transform conservation from a discrete sector to an engine of inclusive green growth.

Second to the Private Sector: To be part of the solution, companies need to raise the profile of nature conservation in their boardrooms and recognize the value of nature to their bottom lines. On the ground, companies need to commit to best management practices which will sometimes mean working beyond their immediate project areas to offset impacts and to secure supply chains. This raises technical, political and governance challenges which is why companies need to reach out and offer a hand in partnership to governments, to conservation organizations and even to each other. We hear from the private sector the need for a level playing field when it comes to best practice in biodiversity management. A coordinated and loud voice from industry groups towards government regulators might be part of the solution.

We also need to find ways to bring to scale financial instruments like green bonds, conservation banking, subsidy reform, license to operate agreements for generating new potential sources of support so that good practice can be rewarded with access to capital.

Third to Civil Society: Very often, civil society, conservation organizations and academic institutions are the backbone of any commitment to conserving nature.

But it is important to remember that it’s governments that have the main responsibility for the stewardship of natural assets. These are their citizen’s natural assets; governments must manage them. The rest of us – civil society, donors and philanthropists – must work together, provide them support while demanding transparency and holding them to account, so that they can do more and do it better.

We in the conservation community need to see the private sector as full partners for solutions and not just a threat or a fundraising opportunity. For example, in public private partnerships - if we were able to develop aggregated offsets, is the conservation community collectively ready to provide the means for verification?

Across all these areas of engagement, the World Bank Group stands ready to do its part and to do more:

We entered the debate on green growth in May 2012 through our report ‘Inclusive Green Growth: The Pathway to Sustainable Development’. We want to contribute, in particular by focusing on the inclusiveness of green growth, on the importance of sound fiscal policies - like the removal of inefficient fuel subsidies - and on ensuring that nature considerations are taken into account in economic decision-making. Our work on green growth is, importantly, supported by the Korean Government.

With new energy and emphasis around Natural Capital Accounting stemming from Rio, it is crucial to keep up the political support and momentum, attract key new country partners, and visibly demonstrate action - including through our global partnership called WAVES.

We also want to do more to streamline nature considerations into our own operations by coordinating the implementation of the IFC’s Performance Standards and the World Bank’s operational policies. And I expect that the Bank Group will work more on aggregated offsets as a means of bringing public and private interests together to conserve at scale within a transparent framework.

We are also working on enhancing environmental law enforcement to ensure that the benefits of nature accrue to national economies and local communities - not thugs and organized crime.

Conclusion

Ladies and Gentlemen, as we begin this Congress:

· Let’s agree that we need to do more, better and with more far-reaching consequences

· Let’s together move away from our ardent attachment to old ideologies, old attitudes that stop us from finding solutions together. What we need today is innovation, communication and partnerships between governments, communities, financial institutions, companies and conservation organizations.

· The type and range of solutions will be as diverse as species and ecosystems. Just as nature is not just a set of charismatic species, we will need more than a set of boutique projects and anecdotes to show large-scale impact. We will need to prioritize without devaluing any one community’s chance of life. We will need brave thinkers at the table, all types of partnerships, people with the humility and patience to make them work. Who better than those of us already humbled by the glory of nature and the complexity of its life support?

· Let’s cross our boundaries together.

· I look forward to being with you every step of the way.

The project Malawi - Rapid Response Development Policy Grant has changed to Closed

2012-07-31T04:00:00.000Z

The project Malawi - Rapid Response Development Policy Grant has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Rapid Response Program for Malawi is to support: (i) achieving and maintaining macroeconomic stability and restoring the functioning of a market-based economy to ensure a quick growth rebound and (ii) protecting the poor and most vulnerable groups in the short run while improving transparency of delivery systems. This Rapid Response Program paper seeks approval of the Executive Directors to provide International Development Association (IDA) grant and credit in the amount of SDR 99.6 million (US$150 million equivalent) to the Republic of Malawi in support of its reform program. The program responds to an urgent request by the Government of Malawi (GoM) to support the ongoing macroeconomic stabilization program as well as measures which will mitigate the impacts of the wide range of reforms which are being currently implemented. Some of the key economic reforms include liberalizing Malawi's foreign exchange regime and significant fuel and power price adjustments to better cover costs of these essential commodities. The program is aligned with the ongoing Country Assistance Strategy (CAS) and is also consistent with new World Bank Group CAS for Malawi (FY13-16) which is at an advanced stage of preparation. This document comprises an overview, which provides the context, rationale, and description of the program.

The project Irrigation Rural Livelihoods and Agricultural Development Project AF II has changed to Active

2012-07-19T04:00:00.000Z

The project Irrigation Rural Livelihoods and Agricultural Development Project AF II has changed to Active. To see more information, see the project information in the World Bank project database

The project Malawi - Rapid Response Development Policy Grant has changed to Active

2012-07-19T04:00:00.000Z

The project Malawi - Rapid Response Development Policy Grant has changed to Active. To see more information, see the project information in the World Bank project database

The project Second Additional Financing for the Third Social Action Fund Project has changed to Active

2012-07-19T04:00:00.000Z

The project Second Additional Financing for the Third Social Action Fund Project has changed to Active. To see more information, see the project information in the World Bank project database

World Bank Supports Malawi’s Economic Recovery with $150million

2012-07-17T19:26:01.000Z

The funds will cover budget support and social protection interventions

WASHINGTON, July 17, 2012 – The World Bank’s Board of Executive Directors approved US$150 million to Malawi to support the government with its current reform program to stabilize the fragile economy. This will help accelerate the resumption of growth, support a quick rebound in the agricultural sector, and cushion the costs of the economic transition.

The Malawi Government is implementing critical macro-economic and structural reforms under new leadership of Mrs. Joyce Banda following the untimely death of the former President last April. The economy remains fragile given Malawi’s weak reserve position, and the urgent need to restore fiscal sustainability. Some of the key economic reforms that have been implemented since May 2012 include liberalizing Malawi’s exchange rate regime and significant fuel and power price adjustments to better cover costs of these essential commodities.

The World Bank will support Malawi through a Rapid Response Program (RRP) that consists of a Rapid Response Development Policy Grant which is a budget support operation worth $50 million; and additional financing for two on-going projects. The projects, which will get $50 million each, are the Irrigation, Rural Livelihoods and Agricultural Development (IRLAD), and the Third Malawi Social Action Fund (MASAF III).

“The RRP was prepared within a very short time frame because of the urgent support that Malawi needs. This support is very critical to help maintain the momentum for the bold reforms that Malawi is taking and inject resources needed to mitigate economic transition costs,” said Sandra Bloemenkamp, Malawi’s Country Manager for the World Bank. “The resources will also help quickly scale up social protection programs and agriculture investments for small farmers to mitigate the effects of the adjustments in the economy on the poor,” she added.

The budget support operation for the Financial Year 2012-2013 will focus on efforts to restore macroeconomic stability, improve functioning of the petroleum market and incentives to exporters, including smallholder tobacco farmers. It will also improve economic management of the farm input subsidy program and strengthen social protection interventions and the resilience of the most vulnerable groups to shocks. The Task Team Leader (TTL) for the budget support operation is Ms. Appolenia Mbowe.

Both MASAF and IRLAD will provide mitigation measures for the vulnerable people in rural and urban areas, and smallholder farmers. The Additional Financing (AF) for MASAF will help scale up the social safety net program through labor intensive public works. It will have nationwide coverage. The number of additional beneficiaries will be 586,000 households or 2.9 million people. The expanded Public Works Program is expected to be implemented in the next twelve months. The MASAF AF is expected to close in June 2014. The TTL for MASAF is Ms. Ida Manjolo.

The IRLAD AF will scale up its social safety net function and support productive rural livelihoods in irrigation, as well as prepare for further investments that strengthen resilience in agriculture. The project will reach an additional 230,000 households (about 1.25 million people) and scale up to all districts in the country. The additional financing will support the project until closure in December 2014.The TTL for IRLAD is Mr. Pieter Waalewijn.

The Malawi portfolio has 13 projects in the following sectors: agriculture, finance and private sector development, human development, environment, infrastructure, and, energy and mining.

Contacts:

In Washington: Aby Toure +1 202 473 8302, akonate@worldbank.org

In Lilongwe: Zeria Banda, (+265-1) 770 611, zbanda@worldbank.org

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

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World Bank provides US$15 million grant to build business and commercial laws in the OHADA Zone

2012-06-27T18:03:30.000Z

WASHINGTON, June 26, 2012 — The World Bank today approved an International Development Association (IDA)* US$15 million technical assistance grant to strengthen Organisation pour l'Harmonisation en Afrique du Droit des Affaires (Organization for the Harmonization of Business Law in Africa) OHADA's institutional capacity to support, in its sixteen member countries, selected aspects of investment climate reforms, including improved corporate financial reporting.

The Improved Investment Climate within OHADA project grant will also include a reform of the OHADA laws and institutions that aim to provide businesses with a more secure and cost-effective business legal framework, thus facilitating business formation and growth. Reform aims to facilitate regional integration by providing businesses with a common legal framework to foster economies of scale and increased competition across the region.

“Many of the investment climate hindrances that constrain investment are embedded in the

OHADA Uniform Act,” says Elizabeth Lule, Acting Director, Africa Regional Integration (AFCRI) Unit. “One example is the high level of minimum capital requirements currently set at US$2,000 which is beyond the means of most entrepreneurs in the region. In contrast, most countries in the world have set no or a low capital requirement minimum because they recognized that a high minimum capital requirement hindered business formation and did not effectively protect creditors,” concludes Lule.

The key outcomes expected from the project are increased numbers of (a) commercial disputes referred to alternative dispute resolution (ADR) mechanisms; (b) newly registered companies within OHADA member countries; and (c) professional accountancy organizations admitted as members of IFAC. Regarding this last aspect, the admission of accountancy organizations as members of IFAC will be achieved by: (a) improving accounting standards, (b) strengthening professional standards and practices, and (c) developing a regional professional qualification curriculum.

Gilberto de Barros, the co Team Leader, noted that “Improving the investment climate through a regional project is also going to be more effective since the country by country approach already started has failed to substantially improve the investment climate.” The OHADA Project will thus complement the actions that are being implemented by OHADA member countries at the country level and improve help the investment climate since doing so requires the combination of reforms at both the regional and national levels in a context where the legal framework comprises both national and regional laws.

OHADA - Organization for the Harmonization of Business Law in Africa – was established in 1993 through a Treaty to improve the legal security and predictability of doing business in West and Central Africa. The 16 current member states are: Benin, Burkina Faso, Cameroon, Central African Republic (CAR), Chad, Comoros, Republic of Congo, Côte d'Ivoire, Gabon, Equatorial Guinea, Guinea, Guinea-Bissau, Mali, Niger, Senegal and Togo. The Democratic Republic of Congo (DRC) is due to become the 17th member in 2012. Throughout, this project appraisal document refers to 16 member countries.

The estimated population of the OHADA member countries is about 200 million-25percent of Sub-Saharan Africa (SSA), with a median GDP per capita of US$363 (US$754 for SSA).

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing loans (called “credits”) and grants for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 81 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day. Since 1960, IDA has supported development work in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50 percent of commitments going to Africa.

Contacts:

In Washington: Aby K. Toure, (202) 473-8302, akonate@worldbank.org;

Stevan Jackson, (202) 458-5054, sjackson@worldbank.org

For more information on World Bank’s activities in Africa, visit: www.worldbank.org/afr

For more information on IDA, please visit: www.worldbank.org/ida

Visit us on Facebook: http://www.facebook.com/worldbankafrica

Be updated via Twitter: http://www.twitter.com/worldbankafrica

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

Zoellick to Join Harvard’s Belfer Center, Peterson Institute

2012-06-27T13:00:00.000Z

WASHINGTON, June 27, 2012—Robert B. Zoellick today said he would join the Belfer Center for Science and International Affairs at Harvard University and the Peterson Institute for International Economics in Washington DC after he steps down as World Bank Group President on June 30.

Zoellick will become the Peterson Institute’s first Distinguished Visiting Fellow as well as also becoming a Senior Fellow at the Belfer Center at the Kennedy School of Government at Harvard.

“I appreciate the opportunity to engage with the scholars and practitioners at Harvard’s Belfer Center and the Peterson Institute for International Economics,” said Zoellick. “I hope to work on the intersection of economics and security, applying history to policy questions of today. Both institutions have been at the cutting edge of research and policy development, and I have benefited greatly from both in the past.”

As the 11th president of the World Bank, Mr. Zoellick turned around an institution in trouble in 2007, recapitalized the Bank, and expanded financing for the poorest countries following the food, fuel and financial crises of recent years. He modernized the Bank by making it more accountable, flexible, fast-moving, transparent, and focused on good governance and anti-corruption. He has increased representation of developing countries in governance and staffing and encouraged developing countries to set their own priorities rather than have them dictated from the Bank. His record has also been marked by an increased role for the private sector through the bank’s International Finance Corporation (IFC), which under his leadership has recruited sovereign wealth funds and pension funds to invest in poor countries, especially in Africa.

Before his term at the Bank, Mr. Zoellick served as Vice Chairman, International, of the Goldman Sachs Group as well as Managing Director and Chairman of Goldman Sachs’ Board of International Advisors from 2006-2007. Previously, he was Deputy Secretary of State in 2005-2006 and a member of the Cabinet as U.S. Trade Representative from 2001 to 2005.

From 1985 to 1993, he served at the Treasury and State Departments in various posts, as well as White House Deputy Chief of Staff. He was the lead U.S. official in the "Two-plus-Four" process of German unification in 1989-90 and served as "sherpa" for the preparation of the G-7/8 Economic Summits in 1991-92.

Mr. Zoellick graduated Phi Beta Kappa from Swarthmore College in 1975 and earned a J.D. magna cum laude from the Harvard Law School and a Master of Public Policy (MPP) from the Kennedy School of Government in 1981.

Contacts:

In Washington: Frederick Jones, (202) 473-9336, fjones@worldbank.org

For Broadcast Requests: Mehreen Sheikh, (202) 458-7336, msheikh1@worldbank.org

The project Second Additional Financing for the Third Social Action Fund Project is now in the pipeline.

2012-06-27T04:00:00.000Z

The project Second Additional Financing for the Third Social Action Fund Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Shire River Basin Management Program (GEF) is now in the pipeline.

2012-06-20T04:00:00.000Z

The project Shire River Basin Management Program (GEF) is now in the pipeline. To see more information, see the project information in the World Bank project database

The development objective of the Adaptable Program Loan for Shire River Basin Management Program Project is to develop Shire River Basin planning framework to improve land and water management for ecosystem and livelihood benefits in target areas. There are three components to the project. The first component of the project is Shire Basin planning. This component will finance development of a modern integrated Shire Basin knowledge base and analytical tools, as well as well-planned structured stakeholder consultation processes, in order to facilitate investment planning and systems operation. The second component of the project is catchment management. Has as objective that targeted sub-catchments and protected areas are rehabilitated and managed for reduced erosion and improved livelihoods. The third component of the project is water related infrastructure. Has an aim that new investments enable improved regulation of shire flows and strengthen climate resilience.

The project Malawi: Shire River Basin Management Program (Phase-I) Project has changed to Active

2012-06-19T04:00:00.000Z

The project Malawi: Shire River Basin Management Program (Phase-I) Project has changed to Active. To see more information, see the project information in the World Bank project database

Innovative Fund to Boost Food Security and Farmer Livelihoods is Launched

2012-06-18T19:04:43.000Z

New Approach to Financing Innovations in Food Security and Agricultural Development Unveiled at G20 Summit in Mexico

AgResults: Innovation in Research and Delivery

LOS CABOS, Mexico (June 18, 2012) – An innovative initiative that will enhance global food security and improve the livelihoods of developing country farmers through prizes and other market-based incentives was announced today by G20 Leaders. With a results-driven funding model that rewards innovators for tackling some of the biggest problems in food security and agricultural development, AgResults addresses global challenges in food security and agriculture by generating market-oriented solutions. The initiative aims to achieve significant improvements in the wellbeing of the poor and vulnerable in developing countries with a fund of up to $100 million, to be administered by the World Bank. The governments of Australia, Canada, Italy, the United Kingdom, the United States, as well as the Bill & Melinda Gates Foundation, are supporting this effort.

AgResults uses pull mechanisms to encourage innovation through results-based payments such as prizes that are typically paid out when certain objectives or milestones have been met. Such financing mechanisms have seen success in generating innovation and market-oriented solutions in other domains such as healthcare, and AgResults aims to deliver similar gains in global food security and agricultural development.

AgResults was born out of the realization that there is a great need for increased investment in global food security and agriculture, in particular from the private sector. The FAO estimates that world food production must double by 2050 to feed a growing world population, while nearly a billion people suffer from a lack of crucial micronutrients in their diet—a hidden hunger that inhibits the development of children and reduces adult productivity. Recognizing these gaps, leaders at the June 2010 G20 Summit in Toronto committed to exploring innovative, results-focused ways of harnessing private sector innovations in food security and agricultural development in developing countries. This commitment involved a two-year effort by committed partners to develop AgResults, culminating in today’s launch of the initiative in support of the Summit priority of enhancing global food security. AgResults addresses this priority directly through new funding and a focus on bringing new, innovative approaches to bear on global food security issues.

In the coming years, AgResults will launch a series of pilots that address some of the biggest problems in global food security and agricultural development. The initiative’s portfolio of pilots will represent a diverse mix of agriculture and food security issues, testing different types of pull mechanisms in different regions globally. The initial set of pilots, focusing on maize production in Sub-Saharan Africa, include:

· Incentivizing the adoption of on-farm storage technology for smallholder farmers;

· Encouraging innovative distribution of a breakthrough technology to reduce aflatoxin contamination; and

· Building a market for new vitamin A-enhanced varieties of maize.

Additional pilots will be explored in the coming years, potentially including livestock vaccines and fertilizer innovation as well as new ideas related to increasing crop yields, decreasing post-harvest losses, increasing livestock productivity and improving nutrition.

For further information, please visit www.worldbank.org/cfp/agpm

Contacts:

In Washington: Amy Stilwell, (202) 458-4906, astilwell@worldbank.org

In Mexico: Fernanda Zavaleta, 52-55-5480-4252, fzavaleta@worldbank.org

For Broadcast Requests: Natalia Cieslik, (202) 458-9369, ncieslik@worldbank.org

Mauritius is hosting a high-level forum on harnessing diaspora resources for Africa’s development

2012-06-14T21:53:36.000Z

Port-Louis, June 14, 2012 – A two-days High Level Forum (HLF) titled Harnessing Diaspora Resources for Development in Africa opened today in Bagatelle, Mauritius (June 14th and 15th, 2012). This event gathers more than fifty representatives of African government officials, development partners, private sector stakeholders and experts from several continents, who will have an opportunity to capitalize on many practical actions taken to harness Diaspora resources. Officially, recorded remittance flows to Sub Saharan Africa exceeded US$22 billion in 2011.

This event is co-organized by the World Bank’s Africa Region through its African Diaspora Program (ADP) and the Government of Mauritius, with a financial contribution of the European Commission (EC) through the African Institute for Remittances (AIR) project. “This high-level forum will give us a chance to work with global stakeholders to identify strategies for Diaspora mobilization and engagement that are best suited to Africa and Africans in the Diaspora. We hope that by working together, we will be able to generate some innovative approaches to leveraging the African Diaspora’s energy and talents,” says Dr. Kofi Anani, the World Bank’s Task Team Leader for the HLF.

The HLF is one of three mutually reinforcing preparatory events towards the Global Forum on Migration and Development (GFMD) summit that will take place in Port-Louis in November 2012. The overarching theme for this summit is “Enhancing the human development of migrants and their contributions to the development of communities and states”.

Since January 2012, Mauritius is the Chair of the GFMD, and is the first African country to assume this responsibility. The Mauritian government has been using its chairmanship of this organization to further promote inter-African dialogue on migration and development, including the important role the Diaspora can play in Africa. According to Ali Mansoor, Financial Secretary of the Republic of Mauritius and current GFMD Chair, “When we are talking about Diaspora, we have to think practically why people left, and what can make them return. It is more about working on systems and procedures than about working on individuals”.

“Members of the African diaspora are playing a role in helping their homelands develop, and African countries have begun efforts to tap the skills and resources of emigrants and their offsprings. These contributions include remittances, trade and investment, and transfer of skills and technology” explains Otaviano Canuto, Vice President and Head of Network Poverty Reduction and Economic Management at The World Bank.

Contacts:

In Port Louis: Erick Rabemananoro, Erabemananoro@worldbank.org

In Washington: Beldina Auma +1 (202) 458-7307, bauma@worldbank.org

World Bank to Invest $125 Million in Malawi’s Largest River Basin

2012-06-14T16:15:00.000Z

Shire River is key to the country’s economic, social, and environmental progress

WASHINGTON, June 14, 2012 – Malawi’s Shire River Basin will receive a $125 million boost for improving land and water management potentially directly benefitting livelihoods of 430,000 people while conserving the Basin’s resources and ecosystem to generate benefits for millions that depend on it.

The Bank’s Board of Executive Directors today approved the project to cover the first phase of the Shire River Basin Management Program (SRBMP). With growing and competing demands on Shire waters, the project is supporting the Malawi Government’s long-term vision to better manage resources of the Shire Basin. The program intends to increase social, economic, and environmental benefits from the river while protecting the ecosystem services. The 520 km long Shire River provides water for agriculture, fisheries, hydropower generation, tourism, urban water supply, and associated environmental functions.

The Basin faces many other important challenges such as severely degraded watersheds, an ecology that is threatened, and susceptibility to water-related natural disasters.

“The Shire Basin is very prone to floods that frequently disrupt livelihoods of thousands of people. So part of the planning activities will develop a weather, hydrologic, and flood forecasting and warning system for better climate resilience of the communities in the lower Shire,” said Sandra Bloemenkamp, World Bank Country Manager for Malawi. Other activities include an integrated planning and investments for flood risk management infrastructure.

The first phase will lay the information, institutional, and investment foundations for the program. A Shire River Basin Plan, atlas and a state of the basin report will be published to facilitate better understanding of the basin through a structured knowledge base. It will inform decisions on future investments such as irrigation, hydropower, and flood management. The planning framework will also include the establishment of a multi-sectoral Shire Basin institution to support long-term planning and management of the basin.

A key component of the project is rehabilitating the 47-year old Kamuzu Barrage which regulates water flows. The Bank’s Task Team Leaders for the project Nagaraja Rao Harshadeep and Pieter Waalewijn say the barrage will be upgraded to better manage multi-sectoral demands in real time and increase water security for critical downstream users such as hydropower plants that generate the bulk of Malawi’s electricity. The project will also support feasibility and design studies for new water related infrastructure in the Shire River Basin.

Another key component is supporting catchment plans and harmonized national guidelines. Selected catchment areas will be rehabilitated through promoting such interventions as soil and water conservation; forestry; stream and water control, including check dams and small earth dams. Communities will be strengthened to participate in catchment management by building their capacity to undertake income generating activities. Large natural habitats within the Shire Basin such as Lengwe and Liwonde National Parks, the forest reserves in Neno, and the vast elephant marshes will also benefit from activities to strengthen ecological management.

In this project, the World Bank is collaborating with the Global Environment Facility and Least Developed Countries Fund which are contributing $6.58 million. Of the $125 million provided by the Bank, 75 per cent is a credit while 25 per cent is a grant.

Contacts:

In Washington: Aby Toure +1 202 473 8302, akonate@worldbank.org

In Lilongwe: Zeria Banda, (+265-1) 770 611, zbanda@worldbank.org

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

Visit us on Facebook: http://www.facebook.com/worldbankafrica

Be updated via Twitter: http://www.twitter.com/worldbankafrica

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

Global Mobility Unaffected by Financial Crisis, as Remittances Remained Resilient

2012-06-13T13:00:00.000Z

WASHINGTON, June 14, 2012 – The global financial crisis of 2008/09 has not sent migrant workers streaming back home, despite worsening employment prospects and anti-immigration rhetoric in some destination countries, says a new book on migration and remittances, published by the World Bank.

In fact, migrants may have mitigated some of the pain of the crisis as they tend to work for lower wages, receive fewer benefits and rely relatively little on the state, says the ‘Migration and Remittances during the Global Financial Crisis and Beyond’ book.

“During the crisis, remittances continued to provide a steady source of foreign currency to developing country economies at a time when foreign aid remained flat and foreign direct investment declined sharply,” said Otaviano Canuto, Vice President, Poverty Reduction and Economic Management, at the World Bank.

Removing restrictions on human mobility may help enhance financial flows among nations and alleviate some of the adverse effect of the crisis, says the book. With migrant workers projected to remit about $399 billion to their home countries during 2012, compared to $372 billion in 2011, remittances are the most tangible link between migration and development.

Although many of the 215 million international migrants are facing worsening employment prospects in some destination countries, particularly high-income Europe, their cash support to families in their home countries has remained resilient, posting, in 2009, the only decline in recent memory. Even then, remittances decreased by a modest 5.2 percent, in sharp contrast with the precipitous declines seen in global private capital flows.

“The resilience of remittances is good news for developing countries as they remain one of the less volatile sources of foreign exchange earnings, particularly for the less developed countries. At the household level, these cash transfers are, in many cases, the only lifeline for families in the home countries,” said Hans Timmer, Director of Development Prospects at the World Bank.

However, despite many years of recording ever-increasing volumes of remittances, leveraging this rather large and growing source of funds for socio-economic development remains a key challenge, with the vast majority of remittances used for maintaining families and for the purchase of consumer goods.

The book, which is the first comprehensive study of remittances during the global financial crisis, is a compilation of 45 separate studies that identify and discuss remittance practices across the world and possibilities for the future. Each study is authored by a different expert who analyzes certain countries and certain aspects of remittances, ranging from patterns of remittance flows to usage of remittances received by communities and households.

The book is co-edited by Dilip Ratha, Manager of the Bank’s Migration and Remittances Unit; Ibrahim Sirkeci, Professor of Transnational Studies and Marketing at Regent’s College, London; and Jeffrey Cohen, Associate Professor of Anthropology at the Ohio State University, USA, who also co-author the book’s first chapter on remittance flows and practices during the crisis.

“Contrary to expectations, we found no evidence of return of migrants, even as the financial crisis reduced employment opportunities in the United States and Europe, with many countries, such as Spain, offering financial incentives to encourage migrants to return,” said Sirkeci.

Migration, in fact, was a strategic response to the financial crisis. Like any political or environmental catastrophe, the financial crisis caused human insecurity and people in developing countries responded by crossing borders or moving domestically to survive the impact of the crisis.

“Remittances have remained resilient and, barring the decline in 2009, have maintained a healthy growth momentum. However, since the book went to press, the global economy continues to experience serious bouts of volatility, which could affect migrant earnings and, hence, remittances,” said Ratha.

For receiving countries, a key factor behind the resilience in remittances is the diversification of migrant destinations.

Countries in South Asia and East Asia with many migrants in the United States, Europe and the Gulf Cooperation Council (GCC) countries continued to register increased remittance inflows. One study in the book concludes that only a prolonged global slowdown would cause a decline in remittance flows to India, the largest recipient of remittances in 2011, with $64 billion.

In contrast, Latin America and the Caribbean region, whose migrants are concentrated in the United States, suffered a dramatic decline in remittances throughout the financial crisis. Mexico, the world’s third largest recipient of remittances ($24 billion in 2011), saw a significant decline in remittance inflows from the United States during the crisis. A similar strong impact was found in El Salvador. Both cases underline the fact that many Latin American countries were vulnerable to the effects of crisis, with a special impact on the urban youth in these countries, who face more difficult labor market prospects and declining opportunities to migrate.

Studies related to the effect of the crisis in the European Union on remittance-receiving countries found that Spain has been the fastest-growing immigration destination for the past decade and is now the fifth largest remittance-sending country, after the United States, Saudi Arabia, Russia and Switzerland.

In the East Asia and Pacific region, remittances account for as much as 12 percent of GDP, as in the case of New Zealand and Pacific island economies, while remittances have been keeping the national economy afloat in the Philippines for the past three decades.

Also, due to the depreciation of local currencies of many remittance-recipient countries, such as India, Mexico, and the Philippines, migrants from those countries turned to investment-oriented remittances in South Asia and East Asia where goods, services, and assets suddenly became significantly inexpensive and affordable.

The book recommends that countries develop policies that reduce restrictions on human mobility and develop programs to facilitate the use of remittances for long-term investments and promoting entrepreneurship. Such changes, tailored to both host and recipient country needs, can strengthen the contribution of remittances to development.

Eliminating the complexity of transactions and reducing transaction costs would also help increase the volume of remittances utilizing official channels, to enable many small nations, in particular, to reap the socio-economic benefits of migrant earnings.

The book is available for purchase at http://publications.worldbank.org/18826

The latest migration and remittances data are available at www.worldbank.org/migration

Interact with migration experts at http://blogs.worldbank.org/peoplemove/

Contacts:

In Washington: Indira Chand +1 (202) 458-0434, +1 (703) 376-7491, ichand@worldbank.org

For TV/Broadcast: Natalia Cieslik +1 (202) 458-9369, ncieslik@worldbank.org

WB Urges Developing Countries to Strengthen Domestic Fundamentals, to Weather Global Economic Turmoil

2012-06-12T17:00:00.000Z

WASHINGTON, June 12, 2012 – Developing countries should prepare for a long period of volatility in the global economy by re-emphasizing medium-term development strategies, while preparing for tougher times, says the World Bank in the newly-released Global Economic Prospects (GEP), June 2012.

A resurgence of tensions in high-income Europe has eroded the gains made during the first four months of this year, which saw a rebound in economic activity in both developing and advanced countries and an easing of risk aversion among investors. Since May 1^st, increased market jitters have spread. Developing and high-income country stock markets have lost some 7 percent, giving up two-thirds of the gains generated over the preceding four months. Most industrial commodity prices are down, with crude and copper prices down by 19 and 14 percent, respectively, while developing country currencies have lost value against the US dollar, as international capital fled to safe-haven assets, such as German and U.S. government bonds.

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So far, conditions in most developing countries have not deteriorated as much as in the fourth quarter of 2011. Outside of Europe and Central Asia and the Middle-East and North Africa, developing country credit default swap (CDS) rates, a key indicator of market sentiment, remain well below their maximums from the fall of 2011.

“Global capital market and investor sentiment are likely to remain volatile over the medium term – making economic policy setting difficult. In this environment, developing countries should focus on productivity-enhancing reforms and infrastructure investment instead of reacting to day-to-day changes in the international environment,” said Hans Timmer, Director of Development Prospects at the World Bank.

Increased uncertainty will add to pre-existing headwinds from budget cutting, banking-sector deleveraging and developing country capacity constraints. As a result, the World Bank projects that developing country growth will slow to a relatively weak 5.3 percent in 2012, before strengthening somewhat to 5.9 percent in 2013 and 6.0 percent in 2014. Growth in high-income countries will also be weak, 1.4, 1.9 and 2.3 percent for 2012, 2013 and 2014 respectively – with GDP in the Euro Area declining 0.3 percent in 2012. Overall, global GDP is projected to rise 2.5, 3.0 and 3.3 ⁽¹⁾ percent for the same period.

This baseline scenario remains the most likely outcome. However, should the situation in Europe deteriorate sharply no developing region would be spared. Developing Europe and Central Asia is especially vulnerable because of its close trade and financial ties with high-income Europe, but the world's poorest countries will also feel the fall out – especially countries that are heavily reliant on remittances, tourism or commodity exports or that have high-levels of short-term debt.

“Where possible, developing countries need to move to reduce vulnerabilities by lowering short-term debt levels, cutting budget deficits and returning to a more neutral monetary policy stance. Doing so will provide them with more leeway to loosen policy, should global conditions take a sharp turn for the worse,” said Andrew Burns, Manager of Global Macroeconomics and lead author of the report.

The full report and accompanying datasets are available at www.worldbank.org/globaloutlook

Regional Highlights

Growth outlooks for each country are available in the full report at:

www.worldbank.org/globaloutlook

Growth for the East Asia and Pacific region is on a moderately easing trend, with GDP gains for the region dropping to 8.3 percent in 2011 from 9.7 percent in 2010. The recent deterioration in global financial conditions is expected to add to pre-existing headwinds, including relatively weak demand from the high-income world, and a slowing phase in China to moderate regional growth to 7.6 percent in 2012, before broader global recovery lifts exports and growth for the region in 2013 to 8.1 percent, easing to 7.9 percent in 2014. China’s GDP is expected to accelerate from 8.2 percent in 2012 to 8.4 percent by 2014.

Notwithstanding the economic downturn in the Euro Area in the fourth quarter of 2011, developing Europe and Central Asia posted strong (5.6 percent) growth in 2011, driven by robust domestic demand and good harvests in countries such as Russia, Romania and Turkey. However, severe weather conditions in early 2012, capacity constraints in some countries, deleveraging by European banks, and the renewed turmoil in high-income Europe are projected to slow regional GDP growth to 3.3 percent this year, before a modest recovery begins with growth firming to 4.1 and 4.4 percent in each of 2013 and 2014.

Growth in the Latin America and the Caribbean region eased to 4.3 percent in 2011, from 6.1 percent in 2010, due to the pronounced slowdown in the region’s larger economies. In Brazil, GDP slowed sharply to 2.7 percent in 2011 (7.5 percent in 2010), as investment growth and private consumption eased. The region’s short-term outlook is clouded by a weak external environment, and capacity constraints in select economies. Regional GDP is expected to decelerate to 3.5 percent in 2012, firming to 4.1 percent and 4 percent in 2013 and 2014, respectively, while growth in Brazil is projected to remain below potential at 2.9 percent in 2012, before accelerating to 4.2 percent in 2013 and 3.9 percent in 2014.

Uncertainty, volatility, and political change continue to characterize conditions in the Middle East and North Africa region. Aggregate GDP grew by 1 percent in 2011, down from 3.8 percent in 2010. Regional growth is projected to remain weak at 0.6 percent for 2012, mainly reflecting the influence of sanctions on growth in Iran, and continued GDP declines in Syria and Yemen. As these elements fade in importance, growth for the region should step up to 2.2 percent in 2013 and 3.4 percent in 2014. Egypt’s economy is projected to move out of negative territory to 1.4 percent growth in 2012, rising to 4.6 percent in 2014. Growth is also expected to pick up strongly in Jordan and Lebanon, while oil prices, which are projected to average near $107/bbl in 2012, will benefit the region’s oil exporters.

Growth in South Asia slowed to 7.1 percent in 2011, from 8.6 percent in 2010, as headwinds from the Euro Area crisis caused a steep deceleration in exports and a reversal of portfolio inflows. Growth in India was particularly weak due to monetary policy, stalled reforms, and electricity shortages, which, along with fiscal and inflation concerns, cut into investment activity. Policy uncertainties, fiscal deficits, entrenched inflation, and infrastructure gaps will continue to weigh negatively on investment activity and are expected to limit regional growth to a relatively modest 6.4 percent in 2012, 6.5 percent in 2013, and 6.7 percent in 2014. India will see growth (measured at factor cost) increasing to 6.9, 7.2 and 7.4 percent in fiscal years 2012-13, 2013-14 and 2014-15, respectively.

Economic growth in Sub-Saharan Africa remained robust in 2011 at 4.7 percent. Excluding South Africa, growth in the rest of the region was stronger, at 5.6 percent, making it one of the fastest growing developing regions. Higher commodity prices and improved macroeconomic and political stability in recent years has supported increased private investment flows to the region, with promising prospects in the medium term. As global demand firms and domestic demand remains robust, regional growth is expected to strengthen to 5 percent in 2012, 5.3 percent in 2013 and 5.2 percent in 2014.

Contacts

In Washington: Merrell Tuck-Primdahl +1 (202) 473-9516, +1 (202) 476-9897, mtuckprimdahl@worldbank.org;

Indira Chand +1 (202) 458-0434, +1 (703) 376-7491, ichand@worldbank.org

In London: Derek Warren + 44 (20) 7592-8402 , dwarren1@worldbank.org

For TV/Broadcast: Natalia Cieslik +1 (202) 458-9369, ncieslik@worldbank.org

(1) Using purchasing power parity weights, global growth would be 3.3, 3.9 and 4.2 percent for 2012, 2013 and 2014, respectively.

The project Malawi - Rapid Response Development Policy Grant is now in the pipeline.

2012-06-12T04:00:00.000Z

The project Malawi - Rapid Response Development Policy Grant is now in the pipeline. To see more information, see the project information in the World Bank project database

Globalization: Made in the Americas

2012-06-08T00:30:00.000Z

AS PREPARED FOR DELIVERY

Inter-American Dialogue 30^th Anniversary Dinner

Remarks of Robert B. Zoellick, President, World Bank Group

June 7, 2012

Introduction

Thank you for the honor of your invitation to commemorate the 30^th Anniversary of the Inter-American Dialogue.

The origins of this Dialogue stretch back to a discussion between Peter Bell and Abe Lowenthal on a park bench.

Peter and Abe were disturbed by the breakdown in inter-American exchanges during the Falklands/Malvinas war, and by the lack of ties with the rising democrats of Latin America. So they discussed bringing together leaders from across the hemisphere to set a new inter-American agenda. The Dialogue held its first ad hoc conference in late 1982.

Today, 30 years later, Latin America’s very success offers the opportunity to remake that Hemispheric partnership around new pillars:

· A revived free trade policy that will aid structural reforms for growth in all our countries;

· An energy transformation, ending the Hemisphere’s energy dependency;

· A new diplomacy infused with private sector pragmatism to solve public problems;

· Shared security; and

· The first Democratic Hemisphere.

For the United States, this new agenda could enable us to rely on a great, home-grown asset – Hispanic-Americans – as the vanguard of U.S. connectivity in a new Western Hemispheric economy.

This Dialogue can – and I believe will – help drive this change: to create a “Globalization: Made in the Americas.”

Under Peter Hakim’s and now Michael Shifter’s energetic leadership, the Inter-American Dialogue has become the leading U.S. center for policy analysis, exchange, and communication in the Western Hemisphere.

The idea at the heart of the Dialogue remains very much the same as that which emerged from the conversation on the park bench: that through dialogue and shared vision, interested citizens across the hemisphere together can plant the seeds of new policy ideas and practical proposals for progress in the Americas.

So tonight, let’s put that idea to work.

A Different Vantage Point

Just two months ago, the leaders of the Western Hemisphere met in Cartagena for the Summit of the Americas. Colombia was an excellent host, and the Summit showcased the country’s many hard-won achievements.

But the news reports were, frankly, disappointing. Aside from the behavior of some Secret Service agents, the coverage focused on disagreements about Cuba and drugs. Some even suggested this would be the last Summit of the Americas. The agenda seemed stuck in a time warp.

So when Carla Hills asked if I could join you this evening, I thought the best way to celebrate the Dialogue’s Anniversary was to offer new possibilities for the Americas in a fast-changing global economy.

My vantage point on our hemisphere is different from many U.S. contributors to the Dialogue. I am not a specialist in Latin America.

Like many of my U.S. foreign and security policy colleagues, much of my energy has been concentrated on the issues of Europe and the Asia-Pacific, the Middle East and Southwest Asia.

Yet because of my economic background, Latin America and Canada have loomed larger on my global map.

In the 1980s and early 90s, working with Secretary of Treasury and State James Baker, we were immersed in issues of Latin American debt and reforms for growth, the Canadian and North American FTAs, and Central American security and democracy.

In 2001, as U.S. Trade Representative, we were fortunate to build on that experience, negotiating FTAs with Chile, Colombia, Peru, Panama, the five countries of Central America and the Dominican Republic. Together with NAFTA, these FTAs cover 54 percent of the economy of our hemisphere, not including the United States, offering an underutilized web of free traders that could support deeper integration in the Americas – even hemispheric free trade and democracy.

Five years as President of the World Bank Group has added to this perspective.

Why am I stressing this global outlook on Latin America? Because, while working on the issues of our region, I have urged my Latin counterparts to look globally, too.

Instead, for too many years, the dialogue within our hemisphere seemed constrained by a North-South framework. The United States loomed large – whether as a hegemon, source of support, market, model, danger, or even frustrating land of inattention.

On development, debt, investment, competition, and trade, Latin Americans need to see the wider horizon – especially to benchmark with East Asia. And beyond East Asia, Latin America has a new role to play in building multiple engines of growth with other emerging markets. It is time to break out of that North-South construct.

Consider Canada’s experience in combining regional integration with global reach: of course, Canada’s FTA with the United States in 1988 deepened the two countries’ economic integration – but in addition, the competitive adjustment driven by that accord made Canadian business more competitive globally.

A new hemispheric partnership requires leaving old habits, old mindsets, and old models of dependency behind.

That partnership will necessitate a new mix of partners, public and private.

That partnership should be the next challenge for the Summit of the Americas and this Dialogue.

Latin America’s Record of Gains

Latin America’s recent record of gains now puts it in a position to remake the Hemispheric partnership.

The numbers tell the story.

Between 2003 and 2010, the income of the average Latin American increased by more than 30 percent. A silent revolution in macro-financial policy has strengthened the economic immune system of many countries. We saw the payoff after the fall of Lehman Brothers: Sound policies in Latin America enabled expansions to offset the downturn without the aftershocks that now threaten Europe.

About 73 million Latin Americans have been lifted out of poverty since 2003. Today, almost a third of the region’s population is considered middle class.

Latin America is breaking a pattern of persistent inequality, including through an increase in women’s involvement in the economy, particularly from poor families. Colombia and Peru have buttressed this trend by boosting opportunities for people of African and indigenous origin, seeking to overcome divisions that populists have exploited.

Mexico and Brazil have led in developing well-targeted conditional cash transfer programs that have revolutionized public assistance. These programs couple income grants for poor families with incentives for health check-ups and keeping children in school. Mexico’s Oportunidades program has probably done more for women’s health than anything in the country’s history.

These are safety net programs that appeal to a fiscal conservative: They cost only about half a percent of GDP. The World Bank has helped export this model to 40 other countries, ranging from Pakistan to the Philippines.

Latin America is “going global.” As the global trade negotiations have stalled, leading Latin American free traders have tried to keep up the momentum. Mexico has FTAs with 59 countries; Chile with 43.

Colombia offers a leading example of how a democracy can combine security, development, and good governance to overcome narco-traffickers, kidnappers, and terrorists. Peru demonstrates how sound economic policy and political commitment across administrations can reverse years of stagnation.

Brazil’s influence is expanding – through its companies, agricultural and mining experience, development work, peacekeeping in Haiti, and interest in Africa. Brazil’s leaders of the left have also turned a page in history by sticking with democracy. Rising leaders of the left in other Latin American countries have seen the benefits for the poor of Brazil’s example, compared to authoritarians who tear down institutions to consolidate personal or party power.

Looking Ahead

So what’s ahead for Latin America?

Latin America’s per capita income is still only at 30 percent of the U.S. level.

To climb higher, Latin American economies will need to leap beyond the so-called middle income trap. Many developing economies make early rapid gains. But then productivity and growth tend to slow.

This is a global challenge. In 1960, the World Bank ranked 101 economies as middle income; by 2008, almost half a century later, only 13 had made it to high income levels – and one was Greece.

Many Latin American countries will need to translate the commodity boom into broader, more diversified economies. This region has lived through roller-coaster booms and busts before.

Higher productivity is the antidote to the middle income trap.

Since the 1980s, Latin America has underinvested in infrastructure – electricity, roads, bridges, ports, transport – and maintaining and operating these services. Currently, Latin America spends 2 to 3 percent of GDP on infrastructure, less than half the rate of investment in East Asia.

Public-private infrastructure partnerships not only offer a source of financing, but also better design, maintenance, and operations to deliver high-quality services on time.

Colombia has experimented with PPPs in urban water supply and sanitation. Mexico’s new Highway Concession Program has mobilized PPP projects of around $11 billion, expanding the country’s major toll roads network by some 25 percent.

Latin America has to anticipate its human capital needs. The region is aging rapidly: today, about 11 percent of Brazil’s working age-population are seniors; by 2050, it will be nearly half.

Latin America also needs to improve the results of its investments in education. By age 15, the learning achievement of the average Latin American student lags two years behind his or her developed country counterparts.

Latin America is recognizing that gender equality is smart economics. Today, women in Latin America outnumber men in schools and universities. Working age women represent roughly 40 percent of the entire labor force in the region.

To continue to grow, the region will need more competition and innovation in the service sector. Competitive services increase productivity. They supply the ‘software’ of integration: transport, where delays and losses can impose significant costs; information technology, because accurate data and effective communication is vital; financial services, to create a supportive business environment; and logistics systems, which are a driver of business competitiveness.

A New Agenda

What do these challenges mean for a new hemispheric partnership? What should have been the news coming out of Cartagena?

Let me offer five ideas.

First, the Western Hemisphere needs to revive an activist free trade and economic reform policy, globally and regionally. We need fresh approaches.

The United States will be cutting agricultural subsidies, especially given high prices, and eliminating protection for ethanol. Why not deploy these to prod others?

Service sector liberalization can boost productivity, open new businesses, create new jobs, and cut the “Latin cost” that many countries impose on their own businesses. Why not deploy this economic need to revive a mutual interest in negotiation?

A strong self-interest can drive this renewed call for liberalization. Latin American economies still need much investment and more robust capital markets – especially in local currencies – that can help Latin American entrepreneurs and family-owned businesses to expand.

Infrastructure investments require capital goods and services, as Panama’s 21st Century Canal project is demonstrating. Why not dismantle barriers to lower the cost of infrastructure expansion?

Better logistics make economies more competitive. The World Bank’s 2012 Logistics Performance Index estimated that Latin American logistics costs are between 16 and 26 percent of GDP – that’s two to four times the average in Europe or East Asia.

The World Bank has helped Colombia and Peru to implement a “single window” approach to customs clearance and border management. In Brazil and Peru, the Bank has worked with international freight forwarders to connect rural, remote villages and small businesses to export through national postal services; in the first six months, more than 300 small firms in Peru became exporters, most for the first time.

Even as the WTO works toward a Trade Facilitation agreement, the Americas could develop an accord that points the way.

Brazilian officials are focused on exchange rates. Yet to really boost growth the target should be productivity. Better infrastructure can help, and so can more efficient and effective public services. The World Bank Group has launched a deeper partnership with the Governors of the Northeastern states of Brazil to overcome these impediments. Over time, however, the United States and its free trade partners should be working with Brazil to rebuild the case for a hemispheric initiative to realize the benefits of trade liberalization and economic reforms.

It takes two to tango, and this agenda requires changes on the part of the United States, too. The United States is no longer leading the open trade agenda, as it relies increasingly on defensive measures. The United States has its own high costs of trade – antiquated ports and laws to protect special interests.

The United States should work with its current free trade partners in the Americas to deepen ties of development, reform, and investment.

The current architecture of US FTAs in the hemisphere offers a solid legal framework, but it needs to evolve into a home for an ongoing dialogue – across countries and with business, academic, civil society, and environmental communities – to see what else can be done to lower costs and barriers and create opportunities.

The United States and its partners could explore progressive integration across the FTAs, for example by expanding provisions to cumulate inputs among partners while qualifying for free trade.

The United States needs to make its hemispheric FTA network dynamic, linked to business and investment policies, and improved governance.

A new concept of an FTA network in the Americas could also support inclusive and sustainable development as the foundation for open societies and borders.

Second, innovation in the energy sector, led by the United States, could transform energy security for North America, the Hemisphere, and the world.

In 2008, imports supplied 70 percent of US oil demand. By 2020, PFC Energy estimates that imports could be down to 40 percent of US oil demand – or even 20 percent if Canadian oil is counted as part of the home market. If natural gas for Canada and the United States is added, U.S. net energy imports from the rest of the world could drop to five percent of U.S. demand. That’s an amazing game-changer in energy.

If Mexico opens PEMEX to real outside investment, the outlook is even brighter. With the discovery of the giant deep offshore PRESAL oil and gas fields, Brazil can play a major role in supplying oil and gas in the region.

Yet there is a need to connect these energy supplies – through infrastructure – with countries in Central America and the Caribbean that have suffered from high prices and limited access. Increased efficiency and alternative sources could help the energy poor, too. It’s long past time for a hemispheric energy policy – blending consideration of inclusive growth, the environment, and indigenous communities’ interests.

Third, this new Hemispheric partnership needs to break old patterns of diplomacy. There are now vibrant private sectors all across the hemisphere. The challenges of overcoming the middle income trap and structural reforms to boost productivity need private sector advice and solutions. All across the developing world, the World Bank is encountering a new pragmatism about involving the private sector in areas that used to be public monopolies: infrastructure; education; healthcare; skills training; delivery of public social services. Advanced economies such as the United States should be taking note, too.

Yet government-business dialogues can be stilted showcases. The Summit of the Americas – and perhaps the Dialogue – should review which approaches work better and why. With some guidance, businesses can better connect possibilities with policies. Governments can commit to responses, commitments, openness, and results.

Fourth, the new Hemispheric agenda should help all 35 countries overcome security threats to growth and opportunity.

The fragile governments of Central America are at risk of being overwhelmed by crime and violence linked to drug trafficking, organized crime, gangs, and firepower. Spain, which has roughly the same population as Central America, has about 400 murders per year; in 2010, Central America had over 18,000.

The region pays a heavy economic price for this insecurity – as much as 8 percent of GDP. The basic legitimacy of governments and institutions is fraying: About half of Central Americans say a military coup could be justified when crime levels are high.

Experiences from Medellin and Rio de Janeiro have shown that the best way to attack criminal insecurity is through an integrated approach: combining stepped-up policing, prevention, and community investments. Quick turnarounds are possible. Strong regional cooperation is indispensable.

The United States has an unfortunate pattern of ignoring dangers in Central America until they explode. This time U.S. diplomacy should work with Mexico, Colombia, and Panama to develop a coherent strategy – not band-aids. As in Colombia, the Central American private sector must also be part of the solution. And the United States should also take responsibility for the drug habits of its public that fuel demand for narcotics from the south.

Fragility in the Caribbean is another soft spot. But small economies can be competitive in many sectors. Accelerating integration in the Caribbean can share services, add to resilience, and boost economic prospects.

Latin America should also be looking toward a greater role in global security – through practical steps, not the old G-77 policies of the past. My friend and former colleague, Bernie Aronson has proposed, for example, that Brazil could lead by voluntarily ending its uranium enrichment program and then calling on other nations – including Iran – to follow its example. If Brazil wants to help shape the 21^st Century, leadership in preventing the spread of nuclear weapons – with an idea and action – would send a powerful signal.

Fifth, the debate over Cuba at Cartagena sounded like hollow echoes from another era. Look ahead, not back.

Chavez’s days are numbered. If his subsidies to Cuba and Nicaragua are cut, those regimes will be in trouble. The democrats of Latin America – left, center, and right – should be preparing. The calls for democracy – for an end to intimidating thugs, human rights, fair elections, and rule of law – should come from all its capitals.

There will soon be an opportunity to make the Western Hemisphere the first Democratic Hemisphere. Not a place of coups, caudillos, and cocaine -- but of democracy, development, and dignity.

This transformation will not be achieved by the Calvo doctrine. By divisive populists. By corruption. By acquiescence. By silence.

You know well that if Latins leave the work to Washington and Ottawa, the opponents of liberty and human rights will play the cards of gringoism and neo-imperialism. Trump them.

Conclusion

For the United States, a new partnership in the Western Hemisphere offers opportunities for renewal at home, too.

All the debates about macroeconomic issues – fiscal and monetary policies – as important as they are, risk inattention to microeconomic incentives, structural reforms in the United States.

Energy. Infrastructure. Education. Human capital. Competition. Environment. Innovation. The United States also needs to clear away old rigidities on these new fundamentals.

The United States also needs to draw on the energies, intelligence, and drive of all its citizens.

As my friend Luis Alberto Moreno of the Inter-American Development Bank has pointed out, the 50 million strong Hispanic community in the United States is a growing market, source of entrepreneurship, and resource for a Hemispheric economic strategy. At over $1 trillion, the purchasing power of Latinos in the United States is larger than the economies of every Latin American country except Brazil.

According to the U.S. Census Bureau, there are between two and three million Hispanic-owned businesses in the United States. Many are small. But they create jobs, earn revenues, and pay taxes.

As Latin America grows, the Hispanic businesses in the United States offer an incredible asset. Hispanics in the United States could be in the vanguard of a new Western Hemispheric economy.

Small and medium-sized Hispanic-American businesses will need help to expand their entrepreneurialism – information about markets, financing, and risk management services. To be most effective, this assistance should be decentralized – perhaps drawing on local chambers of commerce in cities and states where most Hispanic businesses can be found. The Small Business Administration, OPIC, Ex-Im Bank, the Inter-American Development Bank, and the World Bank could then deploy their resources to help.

The world economy is still struggling to recover from the worst blows since the 1930s. Europe is a danger zone. U.S. leadership remains vital to get through the storm, to reach a new world economy of multiple poles of growth.

This is why the news coming out of the Cartagena Summit was disappointing.

This is not a time for drift, for old North-South debates, for retreat behind borders, old mindsets, or out-dated dependencies.

This is a time for the New World to again inspire novel thinking – about development, growth, structural reforms, rule of law and human rights, democracy, and security.

This Dialogue should aim high: To have the Western Hemisphere shape this next era of globalization – so that future historians will title the next chapter, not “The Passing of the New World,” but “Globalization: Made in the Americas.”

Cities to Face Sharply Rising Costs for Garbage Treatment

2012-06-06T15:30:00.000Z

New report points to 70% global increase in urban solid waste

WASHINGTON, June 6, 2012 – A new, far-reaching report on the state of municipal solid waste around the world predicts a sharp rise in the amount of garbage generated by urban residents between now and 2025. The report estimates the amount of municipal solid waste (MSW) will rise from the current 1.3 billion tonnes/year to 2.2 billion tonnes/year, with much of the increase coming in rapidly growing cities in developing countries. The annual cost of solid waste management is projected to rise from the current $205 billion to $375 billion, with cost increasing most severely in low income countries.

The report, What a Waste: A Global Review of Solid Waste Management, for the first time offers consolidated data on MSW generation, collection, composition, and disposal by country and by region. In itself, this is an accomplishment because, as the report states, reliable global MSW information is either not available or incomplete, inconsistent, and incomparable. Nevertheless, the authors of the report point to a looming crisis in MSW treatment as living standards rise and urban populations grow.

“Improving solid waste management, especially in the rapidly growing cities of low income countries, is becoming a more and more urgent issue,” said Rachel Kyte, Vice President, Sustainable Development at the World Bank. “The findings of this report are sobering, but they also offer hope that once the extent of this issue is recognized, local and national leaders, as well as the international community, will mobilize to put in place programs to reduce, reuse, recycle, or recover as much waste as possible before burning it (and recovering the energy) or otherwise disposing of it. Measuring the extent of the problem is a critical first step to resolving it.”

The report notes that municipal solid waste management is the most important service a city provides. In low-income countries, MSW is often the largest single budget item for cities, and one of the largest employers. A city that cannot effectively manage its waste is rarely able to manage more complex services such as health, education, or transportation. Improving MSW is one of the most effective ways of strengthening overall municipal management.

The report shows that the amount of municipal solid waste is growing fastest in China (which surpassed the US as the world’s largest waste generator in 2004), other parts of East Asia, and part of Eastern Europe and the Middle East. Growth rates for MSW in these areas are similar to their rates for urbanization and increases in GDP. There is a direct correlation between the per capita level of income in cities and the amount of waste per capita that is generated. In general, as a country urbanizes and populations become wealthier, the consumption of inorganic materials (e.g. plastics, paper, glass, aluminum) increases, while the relative organic fraction decreases.

“What we’re finding in these figures is not that surprising,” said Dan Hoornweg, Lead Urban Specialist in the Finance, Economics, and Urban Development Department of the World Bank and eco-author of the report, “What is surprising, however, is that when you add the figures up we’re looking at a relatively silent problem that is growing daily. The challenges surrounding municipal solid waste are going to be enormous, on a scale of, if not greater than, the challenges we are currently experiencing with climate change. This report should be seen as a giant wake-up call to policy makers everywhere.”

The authors of the report say an integrated solid waste management plan is needed in cities to approach solid waste in a comprehensive manner. Key to such a plan is consultation and input from all stakeholders, including citizen groups and those working on behalf of the poor and the disadvantaged. Public health and environmental protection aspects of any such plan are also critical.

The report also spells out policy recommendations for reducing greenhouse gas emissions, many of which emanate from inefficient solid waste management practices. Post-consumer waste is estimated to account for almost 5% of total global GHG, while methane from landfills represents 12% of total global methane emissions. The report says that a number of practical approaches could be applied in most cities, including:

· Public education to inform people about their options to reduce waste generation and increase recycling and composting;

· Pricing mechanisms (such as product charges) to stimulate consumer behaviour to reduce waste generation and increase recycling;

· User charges tied to the quantity of waste disposed of, with (for example) consumers separating recyclables paying a lower fee for waste disposal; and/or

· Preferential procurement policies and pricing to stimulate demand for products made with recycled post-consumer waste.

For a link to the report, click here: http://go.worldbank.org/BCQEP0TMO0

Contacts:

In Washington: Roger Morier, +1 202 473 5675, rmorier@worldbank.org

For Broadcast Requests: Natalia Cieslik, +1 202 458 9369, ncieslik@worldbank.org

World Bank Group Unveils New Focus on ‘Green, Clean, Resilient’ Development

2012-06-05T04:00:00.000Z

WASHINGTON, June 5, 2012 -- The World Bank Group today released its ambitious, new Environment Strategy for 2012-2022 aimed at supporting countries to pursue sustainable development pathways that are green, inclusive, efficient, and affordable. The new Strategy responds to calls from governments and the private sector for new approaches to development in light of unprecedented environmental challenges and lays out a vision for “a green, clean and resilient world for all”.

“We’re seeing that working through the nexus of food crises, water insecurity, and energy needs is being made all the more complicated by environmental degradation and climate change,” said World Bank Vice President for Sustainable Development Rachel Kyte. “Countries and communities and the ecosystems they depend on need to build resilience while moving to more efficient growth paths. This Strategy lays out the areas where we will put emphasis as we work to respond to countries’ needs.”

As countries seek to reduce poverty in the face of climate change and other major environmental challenges, the Bank Group is providing knowledge, solutions and financing to foster an environment that is:

· Green where natural resources are sustainably managed and conserved to improve livelihoods and ensure food security;

· Clean in which cleaner air, water and oceans enable people to lead healthy, productive lives and where development strategies emphasize low-emission, climate-smart transport, energy, agriculture and urban development;

· Resilient in which countries are better prepared for shocks and less vulnerable to natural disasters, volatile weather patterns and other impacts of climate change.

World Bank commitments addressing environment and natural resource management have grown from $1.5 billion or 8.4 percent of World Bank lending in FY01 to $6.3 billion or 14.3 percent in FY11.

“The Strategy acknowledges the vital role of the private sector in achieving sustainable and inclusive economic growth and development,” said International Finance Corporation (IFC) Vice President for Business Advisory Services Nena Stoiljkovic. “IFC works with the private sector as an advisor, financier, and standard setter to help unlock this potential.”

The IFC invested $1.7 billion in climate-friendly projects in FY11, up 6 percent from $1.6 billion in FY10.

Under the “green” agenda, a key priority is the Wealth Accounting and Valuation of Ecosystem Services (WAVES) global partnership which supports countries’ efforts to factor natural capital into national accounting systems and through the Global Partnership for Oceans, the focus is on restoring the world’s oceans to health and optimizing their contribution to economic growth and food security. The “clean” agenda prioritizes pollution management through river clean-up and legacy pollution projects while also encouraging low-emission development strategies and financing for renewable energy, climate-smart agriculture, and lower-carbon cities.

The “resilience” agenda, targets support to countries to adapt to climate change, improve disaster risk management, with a focus on vulnerable Small Island Developing States to reduce dependence on oil imports, build sound infrastructure, and restore protective coastal ecosystems such as mangroves.

The Strategy includes action plans for the specific environmental challenges in each developing region of the world.

· In Africa, work will focus on strengthening governance for natural resource management given growing pressure on the region’s agriculture, mining, forests, and water basins. In partnership with other agencies, the private sector, and civil society, the Bank Group is seeking to expand access to clean energy across the region.

· In East Asia and the Pacific the Bank Group is supporting renewable energy and energy efficiency, sustainable urban development and transport, as well as prioritizing the phase-out of numerous industrial pollutants; advising on carbon markets and adaptation in agriculture and coastal infrastructure; scaling up forest management; and strengthening regional partnerships to preserve biodiversity.

· In Europe and Central Asia where many countries are faced with energy shortages and a legacy of industrial pollution, the Bank Group is promoting clean energy and production while supporting programs to dispose of pollutant stockpiles, rehabilitate watersheds and improve disaster preparedness.

· In Latin America and the Caribbean where pressure continues on coastlines, wetlands, and the world’s largest forest cover, the Bank Group is supporting the management of protected areas, the integration of biodiversity conservation into productive landscapes and in some countries, the use of payments for environmental services. It is also providing the world’s most urbanized region with policy advice on cleaner development paths, supporting industrial pollution abatement, and promoting “green cities”.

· In Middle East and North Africa where high population density, water scarcity, and overfishing tend primarily to affect the poor, the Bank Group is supporting programs to strengthen the capacity of countries with shared seas—the Mediterranean, the Red Sea, the Gulf of Aden and the Arabian Gulf—to reduce marine pollution and manage fisheries. Other focus areas include desert ecosystems and livelihoods; improved urban and industrial planning; scaled-up solar power generation; and efforts to reduce vulnerability to drought.

· In South Asia where the poorest live in areas of high soil erosion, variable rainfall, and degraded forests, the Bank Group is helping to strengthen the role of natural resource management in the development agenda, strengthen environmental management in industry and reduce the costs to countries of environmental degradation.

Meeting the challenges of a green, clean, and resilient world requires leveraging the comparative advantage of all development partners. The new Strategy recognizes the growing role of the private sector in addressing sustainability concerns, developing sustainability standards, and ensuring that global markets can and do promote sustainable development.

The Strategy also encompasses the Multilateral Investment Guarantee Agency (MIGA) - the arm of the World Bank Group that promotes responsible foreign direct investment into developing countries by offering political risk insurance to the private sector.

"MIGA is pleased to have contributed to this strategy and to advance the notion that the private sector is absolutely crucial to affect change with respect to environmental issues," said Michel Wormser, MIGA's Vice President and COO.

To measure and monitor progress the Environment Strategy includes a results framework to track progress over time. The new Strategy also advances work to assess greenhouse gas emissions from the Bank Group’s portfolio of development projects with pilots being undertaken in a number of World Bank energy, transport and forestry sector projects.

Contacts:
In Washington: Elisabeth Mealey, +1 202-458-4475, emealey@worldbank.org

Vanessa Bauza, +1 202-458-1603, vbauza@ifc.org
Mallory Saleson +1 202-473-0844 msaleson@worldbank.org

For Broadcast Requests: Natalia Cieslik, +1 202-458-9369, ncieslik@worldbank.org

To read the World Bank Group Environment Strategy 2012-2022, click here.

For more information on Sustainable Development at the World Bank click here.

For more information on the IFC Sustainability: www.ifc.org/sustainability

For more information on MIGA: www.miga.org

World Bank Increases Transparency through Inaugural Publication of Sanctions Board Decisions

2012-05-30T13:30:00.000Z

Milestone in anti-corruption agenda unmatched by any other IFI

WASHINGTON, May 30, 2012 - Marking another advance in openness and accountability in its anti-corruption work, the World Bank Group today published for the first time a set of decisions issued by the World Bank Group’s Sanctions Board in cases of alleged fraud and corruption.

"The World Bank Group takes a hard line against corruption, and we believe that greater transparency must be part of that effort,” said World Bank Managing Director Sri Mulyani Indrawati. “By publishing Sanctions Board decisions, we are making all parties involved in the sanctions process more accountable. This move should deepen the deterrent effect of debarments and enhance the educational value of the Sanctions Board’s findings."

The first published decisions were announced at a panel discussion hosted by the World Bank Group Sanctions Board Secretariat to take stock of recent developments and consider ongoing challenges for the Bank Group’s sanctions system. At the discussion, the Bank Group also announced the appointment of two new Sanctions Board members: Mr. Yves Fortier, an international arbitrator and former Canadian Ambassador to the United Nations, who will serve as Chair of the Sanctions Board; and Ms. Catherine O’Regan, President of the International Monetary Fund Administrative Tribunal and former Judge of the South African Constitutional Court.

The Sanctions Board, an independent administrative tribunal with a majority of external members, serves as final decision-maker in all contested sanctions cases. Decisions are taken based on an adversarial process that includes written arguments and evidence and, where requested, an administrative hearing. More than 530 firms and individuals have been sanctioned by the World Bank Group for fraud, corruption and collusion since the sanctions system was established in 1999. Most of these sanctions have been in the form of debarments, where firms or individuals are rendered ineligible to participate in Bank Group-financed operations.

From December 2011, the Sanctions Board Law Digest has made publicly available summaries of past cases and the legal principles applied over time. The publication of full Sanctions Board decisions goes a step further and creates an unprecedented level of transparency by presenting the Sanctions Board’s detailed review of each new appeal to determine whether misconduct occurred and if so, what sanctions should apply.

"Publication of our decisions furthers the Sanctions Board's goal to fight fraud and corruption through the rule of law," said Fathi Kemicha, the first external Chair of the Sanctions Board. "Parties that come before the Sanctions Board, as well as our partners in the international community, will now have a more robust understanding of our process, case law, and careful examination of each case."

The decisions published today can be accessed on the World Bank’s external website, and explain the rationale for sanctions imposed in eight cases recently considered by the Sanctions Board:

· Sanctions Board Decision No. 46 (Sanctions Case No. 151): Income Electrix Limited debarred for six months for fraud.

· Sanctions Board Decision No. 47 (Sanctions Case No. 121): M/s. Concept Pharmaceuticals Limited debarred for fraud, with conditional release after three years.

· Sanctions Board Decision No. 48 (Sanctions Case No. 118): Zhonghao Overseas Construction Eng. Co., Ltd. debarred for two years for fraud, with conditional early release after one year.

· Sanctions Board Decision No. 49 (Sanctions Case No. 130): De Lorenzo of America, Corp., S.A. de C.V., and its affiliate Marketing Enterprises Latin America, LLC., each debarred for fraud, with conditional release after two years.

· Sanctions Board Decision No. 50 (Sanctions Case No. 117): ASDECON Corporation Company Limited debarred for corrupt practices, with conditional release after five years.

· Sanctions Board Decision No. 51 (Sanctions Case No. 145 and Sanctions Case No. 146):

- Sanctions Case No. 145: General Consulting Training (GCT) and Mr. Ali Safi each debarred for one year for fraud.

- Sanctions Case No. 146: TEAM Engineering & Management Consultants (TEAM) debarred for fraud, with conditional release after two years.

· Sanctions Board Decision No. 52 (Sanctions Case No. 134): Contransimex Nigeria Limited debarred for fraud, with conditional release after two years.

All sanctions are reflected on the World Bank Listing of Ineligible Firms & Individuals (www.worldbank.org/debarr).

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

Contacts:

In Washington: David Theis, (202) 458-8626, dtheis@worldbank.org;

For Broadcast Requests: Natalia Cieslik, (202) 458-9369, ncieslik@worldbank.org

New Initiatives Give Hope to a Carbon Market Facing Challenges

2012-05-30T12:30:00.000Z

World Bank releases State and Trends of the Carbon Market report 2012

COLOGNE, GERMANY, May 30, 2012 – The total value of the carbon market grew by 11 percent in 2011, to $176 billion, and transaction volumes reached a new high of 10.3 billion tons of carbon dioxide equivalent (CO₂e) according to a new report from the World Bank.

According to State and Trends of the Carbon Market 2012 this growth took place in the face of economic turbulence, growing long-term oversupply in the EU Emissions Trading Scheme (EU ETS) and plummeting carbon prices.

The report, released here at the Carbon Expo in Cologne, describes how even as prices declined, the value of the global carbon market increased in 2011, driven predominantly by a robust growth in financially motivated transactions. By far, the largest segment of the carbon market was that of EU Allowances (EUAs), valued at $148 billion. There was also a substantial increase in the volume of secondary Kyoto offsets (which grew by 43 percent, to 1.8 billion tons of CO₂e, valued at US$23 billion) fueled by increased liquidity in the Certified Emission Reduction (CER) market and in the nascent secondary Emission Reduction Unit (ERU) market. Following the same pattern observed in previous years, the global carbon market in 2011 was primarily driven by the EU ETS.

With the end of the first commitment period of the Kyoto Protocol in 2012, the value of the pre-2013 primary CER, ERU and AAU markets declined once again in 2011. Not surprisingly, however, the market is starting to look beyond 2012 and consequently the post-2012 primary CDM market increased by a robust 63 percent, to US$2 billion, despite depressed prices and limited long-term-visibility. Although China remained the largest source of contracted CERs, African countries – largely bypassed in the pre-2013 market – emerged stronger in 2011 and accounted for 21 percent of post-2012 CERs contracted during the year.

Against this backdrop, several new domestic and regional carbon market initiatives gained traction in both developed and developing economies in 2011. Five new jurisdictions passed legislation adopting cap-and-trade schemes.

“It is heartening to see that, while leading economies continue to experience difficulties and the carbon market faces major challenges, we see increasing interest in, and support for, new market-based mechanisms to mitigate climate change in the long term,” said Joëlle Chassard, Manager of the Carbon Finance Unit of the World Bank.

The Australian Parliament passed the Clean Energy Act, the California Air Resources Board adopted a cap-and-trade regulation, and Québec adopted its own cap-and-trade program. The province is now working toward linking it with California’s starting in 2013. Last month, both Mexico and the Republic of Korea passed comprehensive climate bills, laying the foundation for future market-based mechanisms.

“Together, these initiatives will drive substantial resources towards low-carbon investments and they have the potential to unleash a truly transformational carbon market, in support of a global solution to the climate challenge,” said Alexandre Kossoy, Senior Financial Specialist, World Bank Carbon Finance Unit.

Contacts:

In Cologne: Isabel Hagbrink, +1 202 458 0422, ihagbrink@worldbank.org

In Washington DC: Elisabeth Mealey, +1 202 458 4475, emealey@worldbank.org

For an electronic version of the report and more information on the Carbon Finance Unit and its carbon funds, please see: www.carbonfinance.org

The project Irrigation Rural Livelihoods and Agricultural Development Project AF II is now in the pipeline.

2012-05-30T04:00:00.000Z

The project Irrigation Rural Livelihoods and Agricultural Development Project AF II is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Welcomes African Leadership on Natural Capital Accounting

2012-05-25T14:17:29.000Z

Announces $3m in support from Japan to help countries around the world put it into action

GABORONE, BOTSWANA, May 25, 2012 – The World Bank’s Vice President for Sustainable Development, Rachel Kyte, today welcomed the strong endorsement from ten African countries for natural capital accounting - a tool for factoring countries’ natural assets into their systems of national accounting.

Speaking at the conclusion of the African Sustainability Summit in Botswana, Kyte said African leaders had shown the way forward through a joint communiqué on natural capital accounting which recognized GDP’s limitations as a measure of well-being and sustainable growth and underscored the importance of a tool for taking natural capital into account for improved economic decision-making.

“Africa is where sustained and sustainable economic growth and the stewardship of natural wealth become one and the same thing,” Kyte said. “Making progress means more than just a strong GDP - it means giving equal attention to the economic, environmental and social pillars of sustainable development. By endorsing natural capital accounting as a tool for delivering on more inclusive green growth, Africa is showing the way for the rest of the world.”

Kyte said that 24 countries around the world were already compiling natural capital accounts. With so much on-the-ground experience to draw upon, she said the World Bank was hoping to see at least 50 countries and 50 private corporations follow Africa’s lead by endorsing natural capital accounting at the upcoming Rio+20 Conference.

The World Bank is supporting countries to factor their natural capital into systems of national accounts through a global partnership called WAVES (Wealth Accounting and the Valuation of Ecosystem Services). Ms Kyte took the opportunity of the Botswana Summit to announce the Government of Japan’s financial commitment of $US3 million to support the WAVES Partnership.

“Japan’s generous commitment helps us step up to meet the increasing demand from countries to make natural capital accounting a reality,” Kyte said.

Japan’s Deputy Vice Minister of Finance for International Affairs and Executive Assistant to the Prime Minister for Global Environmental Finance, Naoko Ishii said “Japan has long been a supporter to enhancing biodiversity and preserving ecosystems, and is excited to strengthen this initiative.”

WAVES is working to build capacity in countries to implement Natural Capital Accounting based on the UN’s recently endorsed System for Environmental and Economic Accounts (SEEA). The SEEA provides an internationally agreed method, on par with the current System of National Accounts, to account for material natural resources like minerals, timber, and fisheries.

WAVES is also working to develop an agreed methodology for accounting for ecosystem services, including for example, the `regulating’ services of forests for pollination and wetlands for reducing the impacts of floods.

The WAVES partnership includes the United Nations Environment Program, the UN Development Program, and the UN Statistical Commission; the countries of Botswana, Colombia, Costa Rica, Madagascar, and the Philippines, which are implementing programs; as well as financial or technical support from Australia, Canada, France, Japan, Norway, the United Kingdom, and several NGOS.

For a copy of the latest WAVES report “Moving Beyond GDP” go to:

http://www.wavespartnership.org/waves/

Contacts:

In Washington: Robert Bisset, +1 202 458 5191, rbisset@worldbank.org

For Broadcast Requests: Natalia Cieslik, +1 202 458 9369, ncieslik@worldbank.org

For more information about WAVES and the World Bank’s work on sustainable development visit:

http://www.worldbank.org/sustainabledevelopment

For more information about the Summit For Sustainability in Africa, please visit here.

Global Agriculture and Food Security Program Announces New Round of Grants to Fight Hunger and Poverty

2012-05-24T15:39:35.000Z

Six Countries to Receive $177 Million to Increase Incomes, and Improve Food Security

WASHINGTON May 24, 2012 – Partners in the Global Agriculture and Food Security Program (GAFSP), a fund that supports country-led efforts to fight hunger and poverty, today announced that six countries will receive grants totaling $177 million. The grants – to Burundi, the Gambia, Kyrgyz Republic, Malawi, Senegal, and Tanzania – will help each country increase food security, raise rural incomes, and reduce poverty.

International food prices remain volatile and high with the 2011 annual index 24 percent higher than its average in 2010. Prices of certain foods remain dangerously high in many countries, leaving millions of people at risk of malnutrition and hunger, many of them children. In developing countries that face more volatile international markets, it is essential to increase the productivity and resiliency of food production.

"The Global Agriculture and Food Security Program has quickly proven to be one of the most innovative and effective development programs the global community has created," said Lael Brainard, Under Secretary of the United States Treasury for International Affairs. "GAFSP will raise the incomes of 7.5 million smallholder farmers and their families. These new grants will meet the high global demand for agricultural resources to achieve food security. Continued financial support from the development community is critical to maintaining momentum in the fight to achieve sustainable, lasting solutions to hunger and poverty."

Launched in April 2010, GAFSP represents a global effort to aid vulnerable populations afflicted by hunger and poverty. It takes up where emergency and recovery assistance leaves off, targeting transformative and lasting change in agriculture and food security within poor countries through financial support to existing aid effectiveness processes.

In Togo, where the agriculture sector contributes 40 percent to GDP, GAFSP support is helping the country to implement their national agriculture plan and has funded seeds, fertilizer, and training for farmers. It has helped farmers to organize better, improved the production of maize and cassava, and increased donor coordination. In Rwanda, one of GAFSP’s first beneficiary countries, the funding is being used to reduce erosion and bolster productivity in hillside agriculture with tremendous results: potato yields are seven times higher than before and cereal yields have quadrupled.

Australia, which was selected as the new chair of the GAFSP Steering Committee, will work to improve the responsiveness of the fund, encourage quality proposals, and attract more donors.

“The program has already achieved significant results and we anticipate a substantial increase in national food security. For instance, in Cambodia GAFSP will help farmers to diversify their crops which will increase incomes, allowing families to feed themselves while obtaining goods and services to improve their nutrition and welfare,” AusAID First Assistant Director General, James Gilling said. “Channeling funding through GAFSP means we can reduce costs and ensure that aid efforts are coordinated, not duplicated.”

The Steering Committee allocated new funds to the following country proposals:

· In Burundi, GAFSP funds totaling $30 million will improve water management and irrigation in the drought-prone regions of Imbo and Mosso, with investments in infrastructure and agricultural intensification through improved technologies, productive assets, and the establishment of farmer field schools.

· In The Gambia, $28 million in GAFSP funds will target three highly food-insecure regions via an integrated area development program that includes land and water management, horticultural gardens, aquaculture farming, and small ruminant and poultry farming.

· In the Kyrgyz Republic, GAFSP has allocated $16.5 million to support a project that focuses on the rehabilitation of irrigation and drainage systems, building the capacity of water user associations, providing agricultural extension services, and a nutritional component.

· Malawi will receive $39.6 million to promote irrigated rice and horticulture production as well as crop diversification and value chain development for selected commodities.

· In Senegal, $40 million in GAFSP funds will promote livestock and crop production in three high-potential, drought-prone zones, including investments focused on: provision of water management systems, rural roads, vaccination centers, and financing for model ruminant and poultry operations.

· Tanzania will receive $22.9 million to support the rehabilitation of 18,500 hectares of irrigation schemes designed and managed by local government authorities, as well as subsidy on rice input packages in the project zones under an input voucher scheme.

The successful country proposals were selected through a competitive process by the fund’s Steering Committee, which is composed of an equal number of voting members from donor and recipient countries, as well as three representatives from civil society organizations and other stakeholders in a non-voting capacity. The selections were based on recommendations from an independent review conducted by global agriculture experts. Successful country proposals demonstrated a high level of need, a supportive policy environment, and a comprehensive plan for agricultural development.

This is the fourth round of countries to receive funding to support country-driven investment in agriculture and food security through GAFSP. The countries awarded GASFP funding in previous rounds are: Bangladesh, Cambodia, Ethiopia, Haiti, Liberia, Mongolia, Nepal, Niger, Rwanda, Sierra Leone, Tajikistan, and Togo. These investments will help transform the lives of 7.5 million people in rural areas.

"GAFSP funding came at the right time and has allowed us to improve the level of initial funds mobilized for the implementation of the National Agricultural Investment and Food Security Program (PNIASA) which Togo has adopted. It has helped us to stimulate the agricultural sector, which is essential to reviving the national economy", said Mr. Kossi Messan Ewovor, the Togolese Minister of Agriculture, Livestock and Fisheries. "The positive results we are already seeing on the ground encourage us to work further for a more active participation of farmers in the program so that it can directly impact on their income. This will have a real impact on agricultural production, economic growth and, ultimately, will allow us to reduce poverty and increase food security."

To date a total of $1.1 billion has been pledged to GAFSP by Australia, the Bill & Melinda Gates Foundation, Canada, Ireland, the Netherlands, South Korea, Spain, and the United States, with funds going to countries that have strategic, innovative and credible plans already in place to improve agricultural productivity and food security. The G8 has recently set a goal of raising $1.2 billion in further contributions to GAFSP over 3 years.

Contacts:

In Washington: Amy Stilwell, (202) 458-4906, astilwell@worldbank.org;

Kimberly Parent, (202) 458-5623, kparent@worldbank.org

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

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World Bank Database Shows Export Markets Are Dominated by Big Firms

2012-05-24T13:46:46.000Z

Difficult for Newcomers to Survive

WASHINGTON, May 24, 2012 – A few large companies dominate export markets in developing and developed countries, with the top one percent often accounting for more than half – sometimes nearly 80 percent – of total exports, according to a new World Bank database with a wealth of details on exporting firms.

The new Exporter Dynamics Database offers the most comprehensive picture yet of exporter characteristics and dynamics – a firm’s entry, exit and survival in the export market – in 45 developed and developing countries. The database mainly covers 2003-2009, though data from the 1990s are also available for some countries.

A key finding is that the export market is difficult to tackle for newcomers, with 57 percent of companies on average – and two-thirds in Africa – quitting within a year of entering the export market.

“Governments traditionally have focused on helping exporters expand to new products and new markets, but they may need to do more to help firms survive,” says Ana Margarida Fernandes, the task leader of the database, which was developed by the Trade and International Integration team of the World Bank’s Development Research Group.

The global database allows for cross-country comparisons of exporters based on factors such as size, survival, growth, and concentration. More countries will be added as the database expands. Until now, most databases focus not on exporting firms, but on the aggregate flow of goods across borders based on countries or products.

Based on data sets covering the universe of export transactions obtained directly from customs agencies, the data are comparable across countries. Measures cover the size distribution of exporting firms, their diversification in terms of products and markets, the dynamics of exporting firms’ entry, exit and survival, and the average unit prices of the goods traded.

The Exporter Dynamics Database could help policy makers identify opportunities in particular sectors and address challenges faced by their exporters, especially in their entry and survival in export markets. For example, it can be used to analyze the performance of export sectors in a country, comparing them with their counterparts in the region or richer countries. The database can also make it easier to analyze the impact of tariffs and other trade barriers. For example, it can be used to assess the impact of stringent non-tariff measures on the numbers and average size of exporters.

The database reveals several interesting trends. For example, the rate of firms entering the export market is high, with more than half of the exporters in Laos, Malawi, Tanzania, and Yemen being newcomers in any given year. But their survival rate isn’t that good, generally with more than a third of companies on average leaving the export market every year.

“Our database shows how large the degree of churning in export markets is, particularly in less developed and smaller economies,” says Martha Denisse Pierola, an economist at the Development Research Group who started the project with Caroline Freund, now the chief economist at the Middle East and North Africa Region of the World Bank. “We need further research to better assist governments in minimizing the costs associated with these high exit rates.”

Contacts:

In Washington: Jane Zhang, (202) 473-1376, janezhang@worldbank.org

For Broadcast Requests: Mehreen Sheikh, (202) 458-7336, msheikh1@worldbank.org

For more information, please visit: http://econ.worldbank.org/exporter-dynamics-database

For more information click here.

New Program to Spread Agricultural Technologies across West Africa

2012-05-22T20:00:00.000Z

WASHINGTON, May 22, 2012 – The World Bank’s Board of Executive Directors today approved US$120 million financing for the second phase of the West African Agricultural Productivity Program that will improve food production by spreading new agricultural technologies in Ghana and Senegal.

The program will finance technology exchange programs, align national priorities with regional ones to increase regional cooperation in food technology generation, and support a greater push for technology adoption and dissemination.

“The Bank’s support takes a resolved approach to making agriculture more productive and sustainable in West Africa,” said Jamal Saghir, World Bank Director for Sustainable Development in the Africa Region. “It will contribute to increasing growth in the economy, improve food security and reduce poverty.”

With population expected to increase from 300 million in 2011 to about 500 million in 2030, West Africa is faced with the challenge of satisfying rapidly growing food demand. The recent food, fuel and financial crisis have demonstrated the need in West Africa to fully utilize the sub-region’s agricultural potential.

It is possible to increase production of key commodities that represent the basis of the West African food security system. Adopting new and improved crop management practices can increase cereal crops by 30 percent; irrigated rice systems could benefit from yield increase by nearly 50 percent; and cassava yield can be raised more than 40 percent.

Regional production covers 80 percent of the population’s food needs in ECOWAS, about 20 percent of its imports being food products. West Africa is severely affected by the current rise in global food, financial and fuel prices. Intra-regional agricultural trade remains limited and its share of the total world agricultural trade is marginal. Climate change, increasing population, and poor conditions of natural resources reveal an urgent need for improved agricultural production.

“The program will help Senegal and Ghana boost agricultural production to cope with the increasing demand for food in the region,” said Abdoulaye Toure, Task team leader for the project. “We are pleased to work in partnership with ECOWAS to boost dominant sectors, such as agriculture, to their potential so that the people of these countries can become self-sufficient and secure in food production.”

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing loans (called “credits”) and grants for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 81 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day. Since its inception, IDA has supported activities in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50 percent of commitments going to Africa.

Contacts:

In Washington: Sarwat Hussain, (202) 473-4967, shussain@worldbank.org;

Aby K. Toure, (202) 473-8302, akonate@worldbank.org;

In Accra: Kafu Kofi Tsikata, 233 302214100, ktsikata@worldbank.org;

In Dakar: Mademba Ndiaye, 221-33 859 4140, mademba@worldbank.org

Visit us on Facebook: http://www.facebook.com/worldbankafrica

Be updated via Twitter: http://www.twitter.com/worldbankafrica

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

World Bank Group Finds over 80 percent of Investment Promotion Agencies’ Efforts Falling Short

2012-05-20T23:00:00.000Z

WASHINGTON, May 20, 2012 - Even as countries compete to attract investments, 80 percent of national investment promotion agencies are failing to respond to investor inquiries in the key sectors of agribusiness and tourism, according to the World Bank Group’s Global Investment Promotion Best Practices 2012 report.

The report assessing 189 economies’ responsiveness to investors finds that investment promotion agencies are less responsive to direct investor inquiries than they were three years ago. In the areas of inquiry-handling and website performance over the past two years, two regions showed improvement—the Middle East and North Africa, and Latin America and the Caribbean.

"In difficult times, governments may be tempted to cut funding for investment promotion. However, this can cost them opportunities to secure investments and jobs,” said Pierre Guislain, Director of the Bank Group's Investment Climate Department. “Skilled investment promotion agencies can give economies a competitive advantage by helping investors choose a suitable location and set up operations that create jobs and promote growth.”

The report shows that limited resources need not be an obstacle to effectiveness. For example, Cyprus Investment Promotion Agency, one of the world’s top-performing agencies, has only 10 staff members spread across a range of functions. It also finds investment promotion websites to be a bright spot, with 62 percent of agencies implementing best practices.

Nicaragua’s investment promotion agency PRONicaragua emerged as the world’s top investment facilitator, becoming the first developing country to do so. PRONicaragua achieved best-practice standards in website performance and response to investor inquiries.

"We believe that the level of service an Investment Promotion Agency offers influences an investor’s first impression of a country’s investment climate, as it demonstrates that Government’s attitude and commitment towards investors. It is with that vision, through commitment to offering high quality service and insuring that each and every investor get the information they need, we try to build a strong sense of comfort about doing business in our country and promote economic development." said Javier Chamorro, CEO of PRONicaragua.

The report was produced by the Investment Climate Department of the World Bank Group (which includes IFC, MIGA, and the World Bank) and sponsored by ProInvest, a European Commission partnership program for the countries of Africa, the Caribbean, and the Pacific, and by the government of Spain.

For more information about the report, please visit www.globalinvestmentpromotion.org

Contact:

In Washington, D.C.: Shaela Rahman, +1-202-458-0283, Srahman@ifc.org

Malawi 2012 Micro, Small, and Medium Business Survey Results – Financial exclusion big problem

2012-05-17T23:00:00.000Z

“Small businesses can become a catalyst for accelerated economic
development for Malawi” – John Bande, Trade Minister

LILONGWE, May 17, 2012—Malawi has about 760 000 small business owners generating an annual revenue of about US$2billion, but 60 per cent of whom do not use financial services. The 2012 Malawi financial scoping survey of micro, small, and medium enterprises (MSME) launched today by the Minister of Industry and Trade also shows that small business owners in Malawi are relatively young with an average age of 31 years, with 70 per cent of them having just primary education. The MSME sector creates employment for just over a million people.

The MSME survey is a nationally representative survey focusing on small businesses and their financial services needs. The survey provides evidence based information to enable government develop policies supportive of the MSME sector according to its real needs. Micro businesses are defined as those that employ one to four people, small businesses have five to 20 employees, and medium ones have 21 to 100.

“No country can hope to achieve sustainable economic growth without expanding and diversifying trade with small businesses. A vibrant small and medium enterprises sector can become a catalyst for accelerated economic development for Malawi,” said Industry and Trade Minister Honourable John Bande. “With these survey results, the Ministry of Trade and Industry will be able to develop a robust MSME Policy and Strategy for Malawi,’ he added.

The Malawi Government is reviewing its MSME policy. Findings from the survey will inform the policy on the current environment in which MSMEs are operating, their competitiveness, and challenges affecting growth and profitability of MSMEs, including access to financial markets.

The survey establishes that the smaller the business in terms of number of employees the less likely that the owner has or uses banking services to manage the finances of their business. To manage business finances, most of the small business owners keep their money at home. Only 22 percent have or use products or services offered by a commercial bank, while 13 per cent use formal but non-bank financial institutions. On savings, about 66 per cent do not have or use savings products or services, with 13 per cent relying on informal mechanisms such as savings groups, while less than one per cent keep all their business savings at home. Half of the SMME owners save mainly to expand their business and a quarter save just to have money when needed.

Three quarters of small business owners do not borrow because they are wary of their ability to repay the loan. The largest source of credit for small businesses is friends and family, followed by village bank or a cooperative. Only 2.6 per cent rely on informal mechanisms such as informal money lenders, and another two per cent have loans offered by a bank. Business owners mainly borrowed to pay back debts (71 per cent) and 54 per cent borrowed to grow the business.

Risk and insurance cover is very uncommon among these business owners. Only two percent have financial products to cover their risks. The main risks are natural disasters (40 per cent), illness or death of the owner (32 per cent), and theft of business stock, equipment or livestock (31 per cent). About a third of the MSMEs are agriculture based making them more vulnerable to natural shocks. Most of them do not have a coping strategy should disaster strike. More than 40 per cent of business owners do not market their enterprises or rely on word of mouth. Only about three per cent of them are registered while eight per cent are licensed. Medium sized businesses are more likely to be licensed.

Fifty-four per cent of MSMEs owners are males, while 46 per cent are females. Close to 20 percent of the business owners have a secondary education. Less than half a per cent have a university degree and less than one per cent have a technical diploma or apprenticeship.

The MSME survey was commissioned by the Ministry of Industry and Trade with support from UK’s Department for International Development, European Union, United Nations Development Programme, and the World Bank. FinMark Trust and the National Statistical Office provided technical expertise.

Contacts:
In Lilongwe: Wiskes Nkombezi, Ministry of Industry and Trade, +265 1 770244, wdgnkombezi@gmail.com

Zeria Banda, (+265-1) 770 611, zbanda@worldbank.org

The project Effective Management of the Nkhotakota Wildlife Reserve is now in the pipeline.

2012-05-17T04:00:00.000Z

The project Effective Management of the Nkhotakota Wildlife Reserve is now in the pipeline. To see more information, see the project information in the World Bank project database

The objectives of the Effective Management of the Nkhotakota Wildlife Reserve Program for Malawi are to ensure effective management of the Nkhotakota wildlife reserve through a sustainable management model focusing on its Bua watershed area. The project will focus on the Bua River area of the Nkhotakota wildlife reserve, which covers about one third of the reserve. Two roads provide easy access to the reserve in this area, where two tourism concessions are located. And this project have following four components: (i) reserve management, the expected output of this component is 'biological resources inventory carried out for NWR focusing on Bua watershed area'; (ii) revenues for improved reserve support, the expected output of this component is 'tourism assessment and plan for NWR with a focus on the Bua watershed developed in coordination with preparation of the management plan'; (iii) conservation based community livelihood the expected output of this component is 'participatory governance mechanism of Nkhotakota wildlife reserve established'; and (iv) project management the expected output of this component is 'project management functional (financial management, procurement, monitoring and evaluation (M&E) reporting)'.

The project Protecting Early Childhood Development in Malawi - Rapid Social Response (RSR) has changed to Closed

2012-05-16T04:00:00.000Z

The project Protecting Early Childhood Development in Malawi - Rapid Social Response (RSR) has changed to Closed. To see more information, see the project information in the World Bank project database

The project Malawi: Development Policy Grant 1 has changed to Dropped

2012-04-05T04:00:00.000Z

The project Malawi: Development Policy Grant 1 has changed to Dropped. To see more information, see the project information in the World Bank project database

The project Additional Financing to the Malawi Agricultural Development Program Support Project is now in the pipeline.

2012-02-07T05:00:00.000Z

The project Additional Financing to the Malawi Agricultural Development Program Support Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The development objective of the Additional Financing for the Agricultural Sector Wide Approach Support Project is to improve the effectiveness of investments aimed at food security and sustainable agricultural growth, and strengthen the natural resource base in agricultural lands, through a doubling of the area under sustainable land management as a basis for securing ecosystem services and sustainable agricultural productivity. The Additional Financing (AF) includes an additional International Development Association (IDA) credit in an amount of SDR19.4 million (US$30 million equivalent) and an amount of at least US$45 million to be provided by various donors through a Multi-Donor Trust Fund (MDTF) to be established by IDA, with initial contributions from the European Union (EU) of 29.9 million Euros and from the Flanders International Cooperation Agency (FICA) of 5.3 million Euros. The AF responds to the request from the Government of Malawi (GoM) dated November 4, 2011 to: 1) scale up on-going activities to increase the number of farmers receiving support from the project; 2) include new interventions in the field of agricultural diversification and access to markets; and 3) undertake a restructuring. The closing date of the project will be extended by one and a half years from the current closing date of September 15, 2013 to June 30, 2015.

The project Malawi Nutrition and HIV/AIDS Project is now in the pipeline.

2011-11-15T05:00:00.000Z

The project Malawi Nutrition and HIV/AIDS Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Nutrition and HIV/AIDS Project for Malawi are to expand access to and increase use of essential services for nutrition and HIV and AIDS. There are two components to the project. The first component is support for nutrition improvement. This component will have two sub-components: (i) enhancing and scaling-up maternal and child nutrition service delivery at community level; and (ii) strengthening sectoral policy and program development, management and coordination. Canadian International Development Agency (CIDA) will co finance the project with CA$13.5 million (US$13.1 million). First component will finance Non-Government Organizations (NGOs) sub-projects, consulting services, project management, and goods (i.e., small equipment, basic pharmaceutical products). Opportunities to introduce performance based contracting will be explored during implementation. The second component is support for the national HIV/AIDS strategic plan (2011-2016). Under the previous IDA funded Multi-sector AIDS Project (MAP), the majority of funds (US$65 million) were made available to support the national HIV/AIDS response through a pooled funding mechanism (the HIV Pool) administered by the National AIDS Commission (NAC). Financial contributions to the HIV Pool are also made by the Global Fund for AIDS, TB and Malaria (GFATM), which historically has provided 70 percent of HIV Pool funds, as well as the U.K. Department for International Development (DFID). Similar to the current MAP, this project will contribute to the HIV Pool and the implementation of the new National Strategic Plan 2011-2016 (NSP). Approximately half of the IDA contributions to the HIV Pool have been earmarked for specific interventions to prevent new HIV infections. This component therefore has three sub-components: (i) support for the implementation of the NSP 2011-2016; (ii) Voluntary medical male circumcision (VMMC); and (iii) Prevention of mother to child transmission (PMTCT). Opportunities to introduce performance based contracting will be explored during implementation.