Romania | World Bank

Romania - Monitoring and Evaluations for Policymaking : P124601 - Implementation Status Results Report : Sequence 02

2013-05-16T04:00:00.000Z

World Bank Group President Jim Yong Kim to visit Romania

2013-05-08T13:11:38.000Z

The World Bank

Europe and Central Asia Region

News Release No. 2008/ECA

Contacts: Washington: Michael Andrew Jones (202) 473 2588
mjones2@worldbank.org

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The project Revenue Administration Modernization Project has changed to Active

2013-05-02T04:00:00.000Z

The project Revenue Administration Modernization Project has changed to Active. To see more information, see the project information in the World Bank project database

The development objectives of the Revenue Administration Modernization Project for Romania are: 1) to increase effectiveness and efficiency in collection of taxes and social contributions; 2) to increase tax compliance; and 3) to reduce the burden on taxpayers to comply. There are four main project components: The first component of the project is institutional development. This component will support the development of a modern organization and management structure, instill a strategic focus, emphasize the importance of integrity, rationalize the organization structure to increase National Agency for Fiscal Administration (NAFA's) effectiveness, and strengthen human resource management through targeted professional training and technical assistance. The second component of the project is increasing operational effectiveness and efficiency. This component would streamline business processes and work-flows, and invest in the modernization of core information Technology (IT) systems to take full advantage of the possibilities offered by automation in NAFA's back office operations, as well as in the interaction with taxpayers and contributors. The third component of the project is taxpayer services and corporate communication. This component will finance activities aimed at modernizing taxpayer services; implementing mechanisms for transparency and accountability. The fourth component of the project is coordination and management. The project will have a Project Management Unit (PMU) well-integrated into NAFA's headquarters management structure, which is responsible for day-to-day implementation of the project.

Romania - Revenue Administration Modernization Project

2013-04-10T04:00:00.000Z

The project Results-Based Health Sector Reform Project has changed to Dropped

2013-04-09T04:00:00.000Z

The project Results-Based Health Sector Reform Project has changed to Dropped. To see more information, see the project information in the World Bank project database

PPIAF assistance in Romania

2013-04-03T04:00:00.000Z

The government of Romania requested support from Public-Private Infrastructure Advisory Facility (PPIAF) in 1999 to assess potential structural and regulatory reforms in key infrastructure sectors, and to identify approaches and strategies that would increase competition and promote market-based decision-making in infrastructure provision as part of the country's privatization process. The PPIAF-funded activity specifically: 1) examined the structure of supply in the network utilities of Romania; 2) analyzed further options for the horizontal and vertical restructuring of these industries to enhance their efficiency, market responsiveness, and fiscal responsibility; 3) identified areas of market dominance and potential monopoly abuse, and proposed regulatory safeguards as a transition to an acceptable level of horizontal competition; 4) identified the major regulatory issues that needed to be addressed and proposed strategies for addressing these issues; and 5) summarized the relevant international experience in the competitive restructuring and deregulation of the network utilities and evaluated its applicability to the Romanian context.

Romania - Modernizing Agricultural Knowledge & Information Systems Project (MAKIS) : P086949 - Implementation Status Results Report : Sequence 17

2013-03-25T04:00:00.000Z

Main report

2013-03-18T04:00:00.000Z

The objectives of the Second Health Sector Reform (APL) Project for Romania are to: (i) provide more accessible services, of increased quality and with improved health outcomes for those requiring maternity and newborn care and emergency medical care, and (ii) provide support for the preparation of the primary health care strategy. The nine and a half-month extension are required to complete a few ongoing activities, necessary for the full attainment of the overall APL program development objectives (PDOs). In addition, the extension will allow the completion of technical assistance activities needed to support the Ministry of Healths commitment in fulfilling requirements under the precautionary stand-by agreement with the International Monetary Fund. These activities suffered an implementation delay due to changes in the Government following the general election of December 2012, and this is why an additional extension of the project is being sought. This fifth extension of the Project closing date from March 15, 2013 to December 31, 2013 will enable the preparation of the financial impact assessment of the envisaged health sector reforms, under revised terms of reference prepared by the new Government. This assessment is a performance criterion included in the precautionary stand-by agreement with the International Monetary Fund and in the memorandum of understanding agreed with the European Commission. This extension will also allow the preparation of additional technical assistance activities to support the design and implementation of the next generation of reforms in the health sector in Romania.

Data sheet

2013-03-18T04:00:00.000Z

Romania - Judicial Reform Project : restructuring

2013-03-11T04:00:00.000Z

The development objectives of the Judicial Reform Project are to increase the efficiency of the Romanian courts; and to improve the accountability of the judiciary which should result in reduced corruption and a more transparent act of justice. The achievement of the milestones was a condition for the World Bank to consider an additional extension of the project. The nine measures and actions, focusing both on policy reform and infrastructure, have been successfully implemented in 2010 and 2011. This allowed for continued progress towards the achievement of the project's development objectives. Much of this is due to the commitment of the Ministry of Justice and the performance of the Department for Implementation of Externally Financed Projects (DIEFP), the Project Implementation Unit. No changes to the project's development objectives or its results targets are required. However, the notable efforts and achievements made in the past two years will not allow for full achievement of the Project's development objectives unless the closing date is extended to provide for sufficient time to finalize implementation of remaining key project activities.

Romania - Judicial Reform Project : restructuring

2013-03-11T04:00:00.000Z

The project Knowledge Economy Project has changed to Closed

2013-03-02T05:00:00.000Z

The project Knowledge Economy Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Knowledge Economy Project is to accelerate the participation of knowledge disadvantaged communities in the knowledge-based society and economy in Romania. The changes in the Romania, Knowledge Economy Project, loan refer to: (a) the reallocation of 15 percent of loan funds among expenditure categories, to increase the scope of some original component activities by making full use of the project savings; and (b) the extension of the closing date by 20 months to February 28, 2013. The project changes are necessary to allow the implementation of the original project activities while including additional sustainability measures aimed at mitigating the risks towards achieving the original development objective. The project savings that are used to finance these measures have accrued due to consolidation of certain activities under single contracts and availability of local funding to finance some operating costs. The changes do not affect the project development objective.

Official Documents- Revised Supplemental Letter No. 2 Performance Indicators, Loan 4809-RO

2013-02-26T05:00:00.000Z

Official Documents- Third Amendment to Loan Agreement, Loan 4809-RO

2013-02-26T05:00:00.000Z

Main report

2013-02-08T05:00:00.000Z

The objective of Knowledge Economy Project is to accelerate the participation of knowledge disadvantaged communities in the knowledge-based society and economy in Romania. This level two restructuring changes based on the request of the Ministry of Public Finance (MPF) to cancel the uncommitted loan amount (US$ 19,595,436.45) for implementation of the remaining two activities. The activities are the extended technical assistance for communities (US$4.2 million) and the integrated system for the issuance of civil information (US$15.1 million), respectively. The restructuring consisted of: a) the reallocation of 15 percent of loan funds among existing expenditure categories, by making full use of the project savings; and b) the extension of the closing date by 20 months to February 28, 2013.

Data sheet

2013-02-08T05:00:00.000Z

Official Documents- Amendment to the Loan Agreement for Loan 4825-RO

2013-01-28T05:00:00.000Z

Official Documents- Amendment to the Loan Agreement for Loan 4811-RO

2013-01-18T05:00:00.000Z

Romania - Social Assistance System Modernization Project : P121673 - Implementation Status Results Report : Sequence 04

2013-01-09T05:00:00.000Z

Romania - Municipal Services Project

2013-01-08T05:00:00.000Z

The Romania Municipal Services Project had a ratings outcome of satisfactory. The risk to development outcome was low or negligible and both the Bank Borrower performance rating was satisfactory. Lessons learned include: (1) If project design entails infrastructure investments, new land development, and final foot print of all proposed investments is not known upfront, as a precaution OP 4.12 should be triggered during project design. (2) Countries like Romania (then an EU accession country) may not so much need help in developing hardware, but may benefit more from the Bank on the software side or in creating systems and processes, and capacity through TAs and transference of knowledge. (3) Beneficiary assessment should be programmed during implementation for projects that are designed with the objective of basic services delivery such as water and wastewater. (4) Projects implemented at lower level of Government (through municipalities) and in a decentralized manner, demonstrate strong Borrower commitment and ownership, resulting in higher counterpart contribution even during a financial crisis. (5) Project lending in Euro denomination could avert the currency-associated risk adequately during implementation.

Romania - Development Policy Operation - DDO : P130051 - Implementation Status Results Report : Sequence 02

2013-01-01T05:00:00.000Z

Romania - Hazard Risk Mitigation and Emergency Preparedness Project

2012-12-30T05:00:00.000Z

Ratings for the Hazard Risk Mitigation and Emergency Preparedness Project for Romania were as follows: outcomes were moderately satisfactory, the risk to development outcome was moderate, the Bank performance was moderately satisfactory, and the Borrower performance was also moderately satisfactory. Some lessons learned included: it is important to establish the implementation team at the beginning of the project so that the implementation of project activities will be smoother. The Project Management Unit (PMU) for component C was established only after two years of implementation, which delayed progress on this component. Assigning project implementation to a Government team exclusively dedicated to the task, working within the structure of the implementing agency, ideally from the advanced preparation stage, would be highly desirable, provided that the team is not affected by changes in Government. The team's responsibilities should be clear, well defined and well known within the agency. Previous experience in managing investment programs should be a core requirement for selecting the team's technical staff and managers. A good procurement plan should be in place from the start, and should be revised and updated annually, to reflect all changes in the project implementation schedule and address any shortcomings that become apparent. It is advantageous to have a strong agency such as CONVERSMIN (Romanian public agencies) to complement the Government during implementation, to ensure mutual support and cooperation. Such an agency should continue after project closure and take responsibility for the closure of mines, remediation of tailing dams, and post-monitoring of environmental factors.

Romania - Health Sector Reform 2 Project (APL #2) : P078971 - Implementation Status Results Report : Sequence 15

2012-12-29T05:00:00.000Z

Romania - Complementing EU Support for Agricultural Restructuring Project (CESAR) : P100638 - Implementation Status Results Report : Sequence 12

2012-12-28T05:00:00.000Z

The project Mine Closure, Environment & Socio-Economic Regeneration Project has changed to Closed

2012-11-02T04:00:00.000Z

The project Mine Closure, Environment & Socio-Economic Regeneration Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Romania Mine Closure, Environmental and Scio-Economic Regeneration Project aims to strengthen the Government's ability to undertake mining sector reform by: (1) building the capacity of the ministry of economy and commerce for closing uneconomic mining enterprises through support for closing complex mines and ancillary enterprises in an environmentally sustainable manner; and (2) providing support to the National Agency for development and implementation reconstruction programs for the mining regions, local communities, and other agencies for community-based planning and socio-economic regeneration of the mining regions. The changes include: 1) schedule one of the loan agreement is amended to reallocate US$ 3.24 million from category 12 socioeconomic regeneration to category 13, social development scheme for mining communities implemented by Romanian Social Development Fund (RSDF); 2) the closing date for the project is extended by 18 months from May 30, 2010 to November 31, 2011; and 3) all project components are expected to be completed and by the new closing date. The implementation schedules have been extended accordingly.

Supporting Romania's Reform Agenda

2012-09-18T12:42:39.000Z

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Supporting Romania's Reform Agenda

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Daniel Kozak, Communications Officer in the World Bank's Romania office, offers this story.

Even though Romania narrowed the gap with European Union economies over the last fifteen years, cracks in its economy broke wide open when the financial crisis hit. Years of overspending both by the private and public sector resulted in runaway deficits. Government budgets were awash in red ink, in part because of expanded entitlement programs and pensions, but also due to inefficient investing. Yet government services were of uneven quality and did not adequately provide for the country's poorest.

Romania felt the crisis acutely as revenues plummeted and the economy contracted. And although the country is recovering, many Romanians still struggle to make ends meet, says a minimart shopkeeper on a quiet side street off a loud Bucharest boulevard. "People are still buying less, and they only buy what they need," she says.

To right the economy and reform public sector programs in the midst of the financial crisis requires political will but also a roadmap and assistance. That is why the World Bank, the International Monetary Fund and the European Commission in 2009 put together a EUR 20 billion package to support the government as it enacted tough fiscal measures, including difficult and unpopular wage and pension cuts, while working to insure a safety net for the poorest.

The government also embarked on structural reforms. It started to change the way it finances education—to make it fairer and more efficient. It took a look at its social protection programs to find out ways to reduce waste and fraud and better target the vulnerable. And it began to tackle its fifty-year old health care system—one that relies heavily on use of hospitals.

Reforms and fiscal discipline paid off. Romania is one of the EU member states that brought its deficit under control and stabilized its economy after the global crisis. By 2011, Romania's economy started to recover but more work is needed to put the country back on the path to sustainable growth, reassure investors and move closer to European Union targets.

To support these reforms, the World Bank offered Romania an additional precautionary loan of EUR 1 billion in June 2012. The money is available for three years on the condition that Romania stick to its macroeconomic and reform programs.

The loan-a Development Policy Loan with a Deferred Drawdown Option, or DPL-DDO—supports three sets of reforms. The first aims to make public spending and revenue-raising more efficient, the second to make state-owned energy and transportation companies solvent and competitive. The third is to make public health care more efficient but also more available to the poorest, thanks to preventive care and health promotion programs.

The job of changing the system and people's attitudes is huge. A young woman standing outside a Bucharest hospital Emergency Room is in line to see the doctor who's shuttling back and forth between patients on stretchers.

The woman is here chatting with a friend on a Thursday night among the critically ill to have a small bandage changed. A family doctor could easily perform this simple procedure, if only she had one. The woman sees no need because the emergency room is handy, and it's free.

ER doctor Ileana Latis says," A lot of time patients come here when they could be treated by a family doctor. But for one reason or another, they choose to come here."

Those reasons include the lack of family physicians and primary care facilities, and the expense of buying medicines at the pharmacy. These are all issues Romania will be tackling over the next three years and beyond.

Reforming Romania's Social Assistance

2012-09-18T12:40:21.000Z

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Daniel Kozak, Communications Officer in the World Bank's Romania office, offers this story.

Levente Nanasi is telling a survey taker from the Ministry of Labor, Family and Social Protection what's involved in receiving a state benefit of about 12 Euros a month for his two eldest daughters. The 77 year old has to criss-cross Bucharest by bus to obtain certificates from four educational establishments and one from the Tax Office. Then he has to have them notarized.

Between bus rides to several different offices and notary fees, applying for the benefit can cost as much as it is worth. What's more, as Nanasi exclaims: "All this must be done all over again every six months!"

Talking to people about their circumstance and the benefits they receive is a part of a government reform of social assistance programs. The aim is to find out whether benefits are reaching the poorest, what the hurdles are and how to better target future assistance.

The social assistance system reform currently underway is ambitious, but its goal is lofty: to make the system fairer and to reduce transaction costs for applicants and bureaucracies.

Levente Nanasi

Two years ago, Romania's Ministry of Labor, Family and Social Protection managed 57 social assistance programs, each with its own rules, forms and eligibility criteria. Often, people had to make several applications and it wasn't always clear which programs they might be eligible for.

Ad hoc increases and new programs during the boom years of the last decade created a complicated and expensive system. Many programs gave to rich and poor alike as long as they met certain criteria. Others targeted the poorest 50% or even 60% of the population. Yet, a last resort program for the poor had dwindled in relative size and was not effective at helping those who most needed it.

The economic crisis made it clear that protection for the poor and vulnerable needed to be expanded while unnecessary and ineffectual programs needed to be reined in.

The Ministry of Labor, Family and Social Protection is making these adjustments with support from the World Bank. First, small, ineffective programs that were given equally to rich and poor were stopped.

As reforms continued and deepened, two large family programs were consolidated. There are plans to consolidate all means-tested programs into one single program for low-income households in 2014. Others were reviewed to change payment levels and eligibility thresholds.

Work began to create a unified application form and allow people to apply for several benefits in one office instead of traveling to different ones.

A number of loopholes still allow some people to receive benefits for which they are not eligible. And there are too few social workers and social assistance inspectors who can verify whether assistance is reaching those who need it most, or whether there are abuses in the system.

With guidance from counterparts from the United Kingdom, the government has switched the focus of its Social Inspectorate from inspections of social services standards to cash transfer programs. Initial inspections revealed that mistakes and fraud are rife in several programs.

Information from house calls like the one made to Nanasi will be used to focus future social inspections on high-risk programs and geographical regions. For the inspections to carry weight, it will be critical to grant inspectors the power to investigate and give sanctions to those beneficiaries or officials found to be defrauding the system. Currently, provisions are limited and vary by program: these too need to be harmonized.

The scope and ambition of the Romanian reform of its social assistance system is impressive and is considered by others in the region as a standard-setter.

Mitigating the Risk of Natural Disasters in Romania

2012-09-18T12:38:53.000Z

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The World Bank in Romania
Hazard Risk Mitigation & Emergency Preparedness Project
Hazard Risk Mitigation & Emergency Preparedness Project-Component C (Flood and Landslides Risk Reduction) (Romanian)
Hazard Risk Mitigation & Emergency Preparedness Project-Component C (Flood and Landslides Risk Reduction) (English)

Daniel Kozak, Communications Officer in the World Bank's Romania office, offers this story.

The facade of Bucharest's Sector One City Hall is pure neo-Romanian baroque, festooned with pillars and arches and flanked by an imposing tower. The inside is a feat of earthquake proof design and engineering.

The foundation of this massive building where thousands of couples have tied the knot has been reinforced. Hundreds of arches in this beloved landmark built between the two world wars have been fortified with concrete. These are among the techniques deployed to insure that city hall will fare well in a big earthquake. It's not an idle threat. In 1977, a quake measuring 7.2 on the Richter scale killed 1,578 Romanians and destroyed 35,000 buildings, damaging many more. Large red circles painted on many of the capital's buildings after that earthquake notify people that they're unstable and remind them that this urban area of almost two million lies near a fault line.

"The building is reinforced to withstand a quake measuring 8 on the Richter scale," says Liviu Cismasu, who oversees the works to reinforce city hall, replace its roof and retrofit its interior. This structure and many others in Bucharest and around Romania, 40 in all, have been protected thanks to the Hazard Risk Management and Emergency Preparedness project supported by the World Bank.

Liviu Cismasu

Protecting people is at the heart of the project. The surgical and intensive care wing of the 125 year-old Children's Hospital also has a new foundation and reinforced walls thanks to the project. And it has new interiors, too. "Having a strong foundation reassures doctors and nurses," says intensive care chief surgeon Dr. Florin Rusu. "Having a nice atmosphere reassures patients and helps recovery," he adds.

Earthquakes are not the only natural hazards in this part of Europe. Floods are an all-too-frequent reality, too. That is why the project has repaired and improved the safety of six dams to insure they don't leak, crack, or worse, fail. It has protected riverbanks to ensure full rivers don't over flow.

The project rehabilitated mine facilities that contain pollutants left over after the valuable portion of what's being mined has been extracted. That reduced the risk of accidental spills that could contaminate the soil, air and water, harming human and aquatic life. A computer-based monitoring system tailored to mining operations was developed.

Strengthening institutional and technical capacity to manage disasters is part of the project, too. A management information system was developed to allow emergency responders to react quickly and efficiently to emergencies like earthquakes and floods. Emergency responders at Bucharest's crisis control center have been trained to use the software which will be rolled out in 48 locations around Romania in the near future.

The project supported the creation of a mandatory catastrophic insurance scheme that transfers the financial risk of a natural catastrophe away from citizens. It gave technical assistance for the development of a high resolution flood and earthquake risk model and for a dynamic financial analysis model for the establishment of a Pool for Insurance against Disasters. And it supported the development of norms and regulations for the implementation of a law mandating insurance of dwellings.

Including Romania's Marginalized Societies

2012-09-18T12:34:43.000Z

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Daniel Kozak, Communications Officer in the World Bank's Romania office, offers this story.

Costel Arsene works on heavy machinery by day, but on his afternoons off he helps neighborhood kids do their homework in a community center for Roma. His 13 year-old daughter is doing a lot better in school since she started coming to the center when it opened not far from her house two years ago. "She is now reading flawlessly, and her writing is quite good," Arsene says with a gleam of pride in his eyes.

That's an important achievement in a community where 33% of children drop out of school before age 12. Battling the depressing numbers is a forward-thinking city hall in Calarasi. Backed by a handful of enthusiasts, they are dedicated to offering Roma education as a way of finding long term jobs, securing stable incomes and getting on a more equal footing with the rest of Romanian society.

Arsene, a leader in his Roma community of Obor Nou, lobbied the mayor's office for this center. It does more than tutor kids, it overcomes many of the hurdles that stand between poor people and education. It offers a free meal a day, school supplies, clothes, and hot showers, which are often unavailable in a community without running water.

The World Bank, through a Social Inclusion Project (SIP), supported building the center and hiring staff. The mayor's office co-financed the project, and has since taken over operating costs. The local community pitched in EUR 1,000 worth of labor.

The $74 million SIP project, out of which over $17 million are managed by the Romanian Fund for Social Development, has supported many Romanian communities in their efforts to include Roma and other marginalized groups in over 130 locations around Romania.

In Obor Nou, three quarters of families survive on food assistance. That is not uncommon for Romania's Roma, the vast majority of whom are unemployed and live well below the poverty line. But there is hope in this grim picture, and that is early education. A recent World Bank report shows that Roma who attend pre-school are likely to stay in school longer and do better there, and therefore are more likely to get a well-paying job.

Elena Stan

A hundred kilometers away, six-year-old Nicu is learning Romanian as a second language in his brand new preschool built by SIP in Sarulesti. It's an important head start for him and the others in his cheery classroom. Many Roma kids start first grade without knowing any Romanian, making it impossible for teachers to teach and kids to learn. But this class, which started two years ago, is already having an effect, according to local first grade teachers. "They say that since we started our bilingual class, they can talk to kids, and that was unheard of before," says Elena Stan, Nicu's teacher.

In Sarulesti, Roma and non-Roma attend the same classes. Nicu's mother says he gets along better with his new non-Roma friends. This is part of the larger village picture. Twenty years ago, Romanian villagers formed a mob and marched into the Roma neighborhood, setting houses on fire. No one was killed, but the event marked the village.

As a result the mayor and Roma leader are committed to working together, and the only thing invading the community is bulldozer scraping the dirt road as it prepares to pave it. Power and sewers are to follow.

Other efforts to heal wounds and include the marginalized may not be as dramatic, but they are effective. SIP assists many who are marginalized in Romanian society: the physically and mentally disabled and victims of domestic abuse. Shelters for battered women were built where psychological counseling and life skills courses are offered. Vocational training and computer classes are taught so that the disabled can develop skills, apply for jobs and become more independent.

Including the vulnerable and marginalized is part of Romania's commitment to make integration into the European Union smoother by building social cohesion and encouraging economic integration and the chance to be a part of the country's economic growth. SIP's programs are working on that.

Empowering Romania's Roma in Their Villages

2012-09-18T12:30:43.000Z

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Daniel Kozak, Communications Officer in the World Bank's Romania office, offers this story.

Simona Persida Negru is washing clothes by hand at her Romanian village's water fountain. After she wrings them out, she will push the wet clothes home in her wheelbarrow. It's hard, but not as hard as carrying water in buckets from a stream up a muddy hill to her house.

"It used to take me three hours. I now get them all washed in thirty minutes and then I can go home and be with the kids," says 22 year-old Negru, a Roma mother of three. The water fountain was built after people in Valea Corbului banded together and asked their local municipality for support to install the pipe that directs clean water from a spring into a rough trough at the village crossroads.

The fountain is the heart of the community. One after the other, people of all ages and genders come on foot, by horse, bike or cart toting buckets, barrels, or plastic bottles to fill up or take a sip. Asking the authorities for a water pipe in a village where not a single house has running water or sewage might seem like a basic right. But it wasn't to the Roma who make up three quarters of this community and have spent decades living on the edges of mainstream society. "The problem is we are marginalized," says the Roma community's leader, Mircea Haica.

Mircea Haica

Agentia Impreuna is an NGO that has been working to break through that isolation and encourage Roma communities to formulate priorities and ask for assistance from the authorities where they live. Impreuna applied for and received a grant from the Japanese Social Development Fund, managed by the World Bank.

The funds allowed Impreuna to fuel community initiative groups in about 100 of the poorest Roma communities throughout Romania. They were chosen based largely on findings from a World Bank report and poverty map of Romania. Ionela Mocanu is a teacher who was trained as a facilitator and works part time with Roma communities. Her job was to persuade residents of Valea Corbului to formulate their needs, and to get Roma leaders together with their local officials. After discussions with Mocanu and amongst themselves, villagers in Valea Corbului decided their first priority was having a water source other than the stream running through their village.

Ionela Mocanu

Still, it took prodding from Mocanu to get the water pipe installed—a project that cost around EUR 100. "She was all over the mayor's office to make them move. We had asked before, but we only got promises," said Haica, adding that Mocanu understands his community. Haica is hoping Mocanu will help him lobby authorities to extend the water pipe another hundred yards or so up the hill to the elementary school.

With Impreuna's support, Roma communities have lobbied and collaborated with their local authorities to build playgrounds, pave roads, renovate a medical clinic, even set up a goat farm. With limited resources, it is crucial for projects to be sustainable over the long term; that is why community interest and buy-in are important.

"We have succeeded somewhat," says Mocanu, aware there are still many things to be solved in Valea Corbului and other marginalized Roma communities in Eastern Europe.

This community—like others—has many challenges. It has no clinic—the closest is two and a half hours away by horse cart. The young are moving out, migrating to cities, where they can find a job and make a living. Only seven of the 2,000 inhabitants in Valea Corbului have a regular job, working in construction for a private company. The rest survive on occasional day jobs, or by logging surrounding forests and selling the timber.

Mocanu has helped some community members get job training. A few now have diplomas as locksmiths, but none have yet been hired. And when Ms. Mocanu stops by the fountain, young men crowd around asking if she's heard of any work. As she talks with Haica, they brainstorm about whether she could collate a list of job openings and inform the community of them on her visits.

That's just the sort of the community initiative Impreuna set out to create.

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 Improved Policy Making and Institutional Framework for People with Disability is now in the pipeline.

2012-07-17T04:00:00.000Z

The project Improved Policy Making and Institutional Framework for People with Disability is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Irrigation Rehabilitation & Reform Project has changed to Closed

2012-07-02T04:00:00.000Z

The project Irrigation Rehabilitation & Reform Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objectives of the Irrigation Rehabilitation and Reform Project for Romania are to: (i) increasing agricultural productivity in project area; and (ii) more economic use of irrigation resources through change of farmers' and Land Reclamation Agency's (LRA) behaviors. The extension is necessary to cover the risk that, in case of a severe winter, the works under the 'Terasa Viziru' contract will not be completed before the current closing date (March 31, 2012). In addition, the extension would allow for delivery and installation of all goods procured under the Water Users' Organizations (WUO) support program. The Borrower has prepared an updated action plan for project implementation during the extended time, to complete all project activities. The project is in compliance with its financial management, reporting and auditing covenants. The 2010 audit reports have been submitted by the agreed due date, with a clean (unqualified) audit opinion and no internal control weaknesses were mentioned in the related management letter. This will be the second extension of the project. The first extension, by 12 months, was approved on July 12, 2010.

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

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

The project Development Policy Operation - DDO has changed to Active

2012-06-15T04:00:00.000Z

The project Development Policy Operation - DDO has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Development Policy Loan with a Deferred Drawdown Option Program for Romania is to support the Government of Romania's efforts to meet the fiscal sustainability goals as defined by the European Union (EU) fiscal compact. Since late, 2008, Romania has had to cope with persistent economic difficulties and financial turbulence in the EU and elsewhere. Despite the resumption of growth in 2011, Romania's economic prospects in 2012 remain weak. Although the country is currently able to raise sufficient financing on both domestic and international markets, its access to capital markets could be constrained at any point by the higher-than-usual volatility in the international markets, particularly in the EU. To address these challenges, the Government has approached the World Bank and other International Financial Institutions (IFIs) for support. Main risks stem from the economic and financial turmoil in the Euro zone, and domestic politics. The medium term recovery of the Romanian economy relies on foreign direct investment (FDI), domestic demand and export growth. A prolonged global economic slowdown and in particular delayed recovery in the EU could stall investment and depress exports. These risks are compounded by low absorption of EU structural and cohesion funds, and the need to refinance the sizeable short-term debt. Domestic political risks stem from the electoral agenda of 2012, with local and parliamentary elections scheduled for June and November, 2012, respectively. Social risks include the lingering effect of the 2010-11 fiscal austerity measures, and may increase with the anticipated economic slowdown and resulting impact on employment and wages. The Government's capacity can affect its ability to formulate, coordinate and implement policies and programs.

World Bank Continues Supporting Romania’s Reforms with a New Development Policy Loan of EUR 1 Billion

2012-06-13T13:52:05.000Z

Washington, June 12, 2012 - The World Bank’s Board of Executive Directors today approved an International Bank for Reconstruction and Development (IBRD) loan of EUR 1 billion for Romania. This Deferred Drawdown Option Development Policy Loan (DPL DDO) will support the Government of Romania’s commitments under the EU Fiscal Compact. Under the Deferred Drawdown Option, the EUR 1 billion is not drawn immediately by Romania, but rather is available as a fiscal buffer to be called upon if it becomes necessary, and will remain available for the next three years provided Romania follows its macroeconomic and reform programs.

The DPL DDO will support reforms which have three aims:

· enhance the efficiency of public spending and the Government’s revenue-raising capacity through better compliance with tax laws;

· improve governance of state owned enterprises in the energy and transport sectors to reduce the drain on the budget, generate savings and attract the private capital needed to modernize plants and increase their competitiveness, and pursue the liberalization of energy markets; and

· enhance the quality of public health care by reducing unjustified outlays and reallocating resources to high-return preventive care and health promotion programs.

“Romania has made good progress in stabilizing the macro-economic and fiscal framework and putting the country on a growth path, despite the challenging economic environment throughout Europe today,” said Philippe Le Houérou, World Bank Vice President for Europe and Central Asia. “We commend the new government on continuing the path of stability and confidence through structural reforms, and modernization of the public administration. The Bank is looking forward to continue its partnership with Romania to provide its expertise for sustainable and inclusive growth, and for EU convergence.”

The DPL DDO contributes to the Government’s fiscal buffer created in response to continuing turbulence in export and financial markets. It is following the successful implementation of a series of three Development Policy Loans totaling EUR 1 billion that contributed to Romania’s macroeconomic stabilization and crisis management program as part of a multilateral package of EUR 20 billion co-financed with the International Monetary Fund and the European Commission, in 2009-11.

Contacts:

In Washington: Elena Karaban, +1 (202) 473-9277, ekaraban@worldbank.org;

In Bucharest: Daniel Kozak, +4 021 2010 324, dkozak@worldbank.org

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

World Bank Continues Supporting Romania’s Reforms with a New Development Policy Loan of EUR 1 Billion

2012-06-13T04:00:00.000Z

The DPL DDO will support reforms which have three aims:

· enhance the efficiency of public spending and the Government’s revenue-raising capacity through better compliance with tax laws;

· enhance the quality of public health care by reducing unjustified outlays and reallocating resources to high-return preventive care and health promotion programs.

Contacts:

In Washington: Elena Karaban, +1 (202) 473-9277, ekaraban@worldbank.org;

In Bucharest: Daniel Kozak, +4 021 2010 324, dkozak@worldbank.org

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

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

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

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.

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

Access to Early Childhood Education and Care Key to Equal Start of Roma Children

2012-06-04T15:24:51.000Z

NEWS RELEASE

Access to Early Childhood Education and Care Key to Equal Start of Roma Children

BRUSSELS, June 4, 2012 — The Roma Education Fund, The World Bank, Open Society Foundations, and UNICEF join the European Commission in its call on governments to ensure that all Romani and other poor and excluded children have access to quality early childhood education and care (ECEC) services. The Commission's assessment of national Roma integration strategies has been issued just a couple of days ago. All Member States have acknowledged education as a priority area next to employment in their national Roma integration strategies. Moreover, 14 Member States have proposed measures to widen access to early childhood education and care. This is encouraging, but to close the gap, planned measures should be fully implemented and become much more widespread.

Global evidence from research on early childhood development underscores the importance of early intervention – from conception to age 8 – especially to prevent inequalities before life trajectories are established. Given this importance, the Commission called on Member States to increase enrolment in early childhood education and care among the most urgent policy priorities in several Country Specific Recommendations, stressing the need to eliminate school segregation and misuse of special needs education, improve teacher education and school mediation and raise parents' awareness of the importance of education.

Commenting earlier today in Brussels at the presentation of the European Commission supported “A Good Start” pilot project by the Roma Education Fund and the simultaneous launch of the World Bank study Toward An Equal Start: Closing the Early Learning Gap for Roma Children in Eastern Europe, DG Employment Commissioner László Andor and MEP Livia Jaroka, said:

“Ensuring Roma children benefit from early stimulation and learning just like all other children is both a moral obligation and good economics in the long run. Experiences like the Good Start and other projects demonstrate that inclusive preschools and home parenting support can bridge the gap between Roma people and the majority population. Countries should leverage structural funds to invest in early learning and care for all poor children," said László Andor, Member of the European Commission.

"Global evidence shows that early childhood education and care is essential to children’s development. The new regional Roma survey data show that Roma children do not have an equal chance. With the exception of Hungary, the vast majority are not in preschool. It is time to close this gap," said Livia Jaroka, Member of the European Parliament.

In line with global evidence, the new Toward an Equal Start World Bank (2012) study and the new Roma Early Childhood Inclusion (RECI) study by UNICEF, the Roma Education Fund and the Open Society Foundations (2012), find that quality ECEC services raise educational outcomes for Romani children. The findings of the World Bank report, based on the 2011 UNDP/World Bank/EC regional Roma survey in Bulgaria, the Czech Republic, Hungary, Romania, and the Slovak Republic, show that Romani children attending pre-school have much higher scores on measures of learning, and much higher likelihood of subsequent enrolment into secondary schools. Furthermore, in the Czech Republic and Slovakia, children attending pre-school are much less likely to be streamed into ‘special needs’ education designed for children with learning disabilities.

The studies also find that access to quality and inclusive ECD services remains stark in comparison to majority populations and continues to demonstrate the lack of equity in this as in many other areas of life for Romani families. More than 80% of Romani parents wish a secondary education for their sons and their daughters, but the inequities in education start early: unlike non-Romani children, the large majority of Romani children aged 3-6 are not in pre-school, with the exception of Hungary: only 45% are in preschool in Bulgaria, in Romania 37%, in the Czech Republic 32%, and in the Slovak Republic 28%. On the other hand, in Hungary, which provides financial support for poor families to access preschool, it stands at 76%.

The RECI (2012) study highlights in detail that reaching out to parents and teachers, and provide home parenting support, can raise the quality of ECEC services and make them inclusive of all children, regardless of ethnicity.

Investing in early childhood and care means giving poor and excluded children a more equal start in life. This is both a human right and smart economics that raises long-term labor productivity and helps break the intergenerational cycle of poverty affecting Europe’s poorest and most vulnerable communities like the Roma. Close co-operation between governments, the European Commission, civil society, and international organizations can help bridge the gap.

Contacts:
In Brussels: Alexander Rowland, +32 2 504 0992, arowland@worldbank.org
In Washington: Dorota Kowalska, +1 (202) 473-2676, dkowalska@worldbank.org
In Budapest: Tom Bass, + 36 20 367 5036 tbass@romaeducationfund.org
In London: Sarah Klaus, sarah.klaus@osf-eu.org

For more information and to download the new reports – RECI (2012), World Bank (2012), please visit:

www.romaeducationfund.hu/good-start-eu-roma-pilot
www.worldbank.org/roma
www.soros.org/about/programs/early-childhood-program
www.romachildren.com

Supporting growth in South-East Europe: Financial reporting and auditing play a critical role

2012-05-31T15:55:10.000Z

World Bank conference convenes ministers and senior officials in Vienna

VIENNA, May 31, 2012 – Ministers and senior officials from seven countries of South-East Europe and Moldova, participating in the Road to Europe - Program of Accounting Reform and Institutional Strengthening (REPARIS), as well as representatives from the EU, other European countries and international bodies, gathered in Vienna for the third REPARIS Ministerial Conference on 31 May.

Participating ministers and senior officials reviewed the progress that their countries have made in enhancing their financial reporting systems and aligning them with EU legislation.

As part of their efforts to support economic growth and to integrate more closely with the EU, most countries in the program have introduced new accounting laws. Countries are also strengthening their educational systems as well as the capacity of their accounting professions. Several countries are now moving to the next stage of reform by setting up the systems of public oversight and quality control that are needed to ensure that the new accounting rules are implemented consistently and reliably in practice.

The ministers and senior officials discussed how improved financial reporting helps reduce the barriers to business investment, especially for small and medium-sized enterprises (SMEs), thus helping to boost competitiveness and economic growth. They also discussed what further measures with regard to the EU’s new accounting directive (including special provisions for microenterprises), audit oversight and quality assurance need to be taken and how REPARIS can help them implement financial reporting reform.

In his opening address to the conference, World Bank Vice President for Europe and Central Asia, Philippe Le Houerou, acknowledged that the financial crisis had left the countries of Europe and Central Asia with higher levels of public debt, weakened financial sectors, and historically high levels of unemployment. The crisis unveiled weaknesses that called for deep structural reforms. In response to these challenges, one of the main pillars of the World Bank´s strategy has been support for reforms to improve competitiveness.

“Good public and corporate governance is not a luxury, but a necessity for sustainable growth. The work of REPARIS on financial reporting is critical to the competitiveness agenda. It is also an important aspect of good governance, which requires transparency and integrity both in the public and the private sector”, said Le Houerou

The Governments of Austria, Switzerland and Luxembourg are the main supporters of REPARIS.

“One program cannot tackle all the challenges we are facing. It must be selective to use its limited resources most effectively to deliver upon its agreed objectives. REPARIS is able to achieve just that. REPARIS helps to build and strengthen institutions to make the financial system more stable and to create a business climate conducive to promote growth and employment.”, highlighted Andreas Schieder, State Secretary in the Austrian Ministry of Finance in his opening remarks.

Ms. Biljana Šćekić, Deputy Minister of Finance of Montenegro, underlined the following: “Montenegro has been a part of the REPARIS program from its very beginning, and as a candidate country of the European Union, we are serious about completing our Accounting and Audit Reform journey.

This is important […] to deliver a climate that will enable our small young country to compete for investment and jobs in the new reality that is the Europe of today.”

Gerhard Schumann-Hitzler, Director, Financial Instruments and Regional Programmes at the European Commission’s Directorate General for Enlargement emphasized the importance of regional initiatives like REPARIS in improving the business environment, especially for SMEs, in the countries of the Western Balkans.

The conference was organized as part of the REPARIS program, which supports the efforts of Albania, Bosnia and Herzegovina, Croatia, Kosovo, FYR Macedonia, Moldova, Montenegro and Serbia to introduce effective and EU-compliant systems of financial reporting. REPARIS was launched in 2009 for a period of five years. The program is managed by the World Bank Centre for Financial Reporting Reform (CFRR), based in Vienna.

On the occasion of the Ministerial Conference, the CFRR is organizing in Vienna three technical workshops covering key aspects of the corporate financial reporting agenda relevant to policymakers, financial regulators, and professional accountancy organizations in the REPARIS countries.

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 Revenue Administration Modernization Project is now in the pipeline.

2012-04-26T04:00:00.000Z

The project Revenue Administration Modernization Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project MUNICIPAL SERVICES PROJECT has changed to Closed

2012-04-02T04:00:00.000Z

The project MUNICIPAL SERVICES PROJECT has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Municipal Services Project for Romania is to assist the Borrower to meet European Union (EU) environmental directives in the water and wastewater sector, thereby improving the quality and coverage of water and wastewater services, mainly through: (i) support of infrastructure development in the municipalities of Bucharest and Arad to provide better water and wastewater service and improve storm-water management; and (ii) preparation of priority water and wastewater projects in selected counties. The changes include: triggering of a new safeguard, (involuntary resettlement) for all three components; ceasing loan financing for infrastructure works in the Baneasa area, and reallocating remaining funds to other areas of Bucharest where the impact is expected to be higher; revising the end-of-project outcome targets to reflect the reallocation and increased civil works costs in Bucharest; aligning the project agreement covenant on selecting the operator in Arad with current legislation; reducing the number of counties in component three from 11 to 10 and modifying the project development objective and end-of-project outcome targets accordingly; and introducing additional indicators and clarified measures to the results framework. The changes will mitigate risks to not achieving the project's development objective, and introduce adjustments necessary to ensure compliance with the loan and project agreements without significantly modifying project outcomes.

The project Development Policy Operation - DDO is now in the pipeline.

2012-03-31T04:00:00.000Z

The project Development Policy Operation - DDO is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Development Policy Loan 3 (DPL 3) has changed to Closed

2011-12-29T05:00:00.000Z

The project Development Policy Loan 3 (DPL 3) has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Third Development Policy Loan Program for Romania is to support the Government's reforms in fiscal management, social protection and the financial sector, and position Romania to emerge from the economic and financial crisis on a stronger footing, and resume and sustain convergence to the living standards of more advanced European Union (EU) economies and withstand better any further shocks. This Program Document (PD) describes the third loan in a program of three Development Policy Loans (DPLs) to Romania for a total amount of 1 billion. The third DPL (DPL3) would disburse 400 million in FY12. The Bank operation reinforces and complements programs financed by the International Monetary Fund (IMF) and the EU which were completed in April 2011, as well as the successor IMF and European Commission (EC) precautionary financial assistance agreements that were reached in May 2011, for a two-year period. Consistent with the precautionary agreements that shifted focus from crisis management to the maintenance of macroeconomic stability and enhanced competitiveness, the DPL3 has strengthened the structural policy reform agenda adopted by the Romanian authorities. The DPL3 program supports progress towards a sustainable fiscal framework, improved quality and efficiency of health and education services, the modernization of the social assistance system, and financial sector stability. the program supports Government's structural reforms in three key areas: a) improving fiscal sustainability and management of public finances in general, and in the health and education sectors in particular; b) enhancing social protection systems so that they address the immediate needs of the poor and vulnerable and provide sustainable social protection over the long term; and c) strengthening contingency planning in, and the resilience of, the financial sector. This document does not discuss in detail the general features of the program to be supported by the DPL series.

The project Development Policy Loan 3 (DPL 3) is now in the pipeline.

2011-12-23T05:00:00.000Z

The project Development Policy Loan 3 (DPL 3) is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Hazard Risk Mitigation & Emergency Preparedness GEF Project has changed to Closed

2011-12-22T05:00:00.000Z

The project Hazard Risk Mitigation & Emergency Preparedness GEF Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Hazard Risk Mitigation and Preparedness Global Environment Facility (GEF) Project for Romania is to demonstrate and provide for replication for the reduction of catastrophic accidental spills of trans-boundary pollution loads from mine operations flowing into the Danube and Black Sea basins. The reallocation is required for the following reasons: a) provide additional funding for the installation of the environmental monitoring and early warning systems; and b) finance a study tour for Romanian counterparts to European Union (EU) countries with experience in using environmental financial guarantees (environmental contingency funds) as a regulatory instrument in the mining sector.

The project Hazard Risk Mitigation & Emergency Preparedness Project has changed to Closed

2011-12-22T05:00:00.000Z

The project Hazard Risk Mitigation & Emergency Preparedness Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Hazard Risk Mitigation and Emergency Preparedness Project is to assist the Government of Romania in reducing the environmental, social, and economic vulnerability to natural disasters and catastrophic mining accidental spills of pollutants through: (a) strengthening the institutional and technical capacity for disaster management and emergency response through upgrading communication and information systems; (b) implementing specific risk reduction investments for floods, landslides and earthquakes; (c) improving the safety of selected water retention dams; and (d) improving on a pilot basis the management and safety of tailings dams and waste dump facilities. The Project was approved on May 20, 2004 and became effective on October 20, 2004. Project implementation was slower than anticipated but commitment of project funds gained momentum during 2008 and now over 80 percent of project funds have been committed, about 63 percent of the loan has been disbursed, and about 70 percent of project activities are complete. For more than two years, project development objectives achievement was rated moderately satisfactory due to the risk that the initial investment program would be only partially financed because of the sharp depreciation of the loan currency (US$) and rising construction costs after Romania joined the European Union, creating a financing gap that threatened project outputs and outcomes. Due to slower-than expected project start, the Bank agreed to extend project closing date from December 31, 2009 to December 20, 2011, to enable Government to complete all activities envisioned under the project.

The project Second Development Policy Loan is now in the pipeline.

2010-09-30T04:00:00.000Z

The project Second Development Policy Loan is now in the pipeline. To see more information, see the project information in the World Bank project database

This program document describes the Second Development Policy Loan Program in a program of three possible Development Policy Loans (DPL) to Romania. The first DPL (DPL1) disbursed Euro 300 million in September 2009. This second DPL (DPL2) is also for Euro 300 million. A third DPL (DPL3) for Euro 400 million is tentatively targeted for CY2011. This DPL program supports the Government's structural reforms in three key areas: a) improving fiscal sustainability and management of public finances, including at sectoral level in health and education; b) enhancing social protection systems to address the immediate needs of the poor and vulnerable while ensuring more sustainable social protection over the longer-term; and c) strengthening contingency planning in, and the resilience of, the financial sector. The Bank operation reinforces and complements existing programs by the International Monetary Fund (IMF) and the European Commission (EC). The DPL series is central to the Bank's engagement in Romania as described in the Country Partnership Strategy (CPS) that was presented to the Board on July 16, 2009, together with DPL1. While financing a relatively small share of the Euro 20 billion package agreed by the Government with the IMF and the EC, the DPL targets structural reforms which will considerably improve Romania's medium to long term outlook for sustainable development.

The project Results-Based Health Sector Reform Project is now in the pipeline.

2010-09-14T04:00:00.000Z

The project Results-Based Health Sector Reform Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Social Assistance System Modernization Project is now in the pipeline.

2010-08-13T04:00:00.000Z

The project Social Assistance System Modernization Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Social Assistance System Modernization Project is to improve the overall performance of Romania's social assistance system by strengthening performance management, improving equity, improving administrative efficiency and reducing error and fraud. It is organized around four key results areas, each contributing to the project development objective (PDO): a) strengthened performance management: Romania's social assistance reform is implemented following a results-oriented strategy and action plan and is supported by a performance management monitoring and evaluation (M&E) system; b) improved equity: the share of social assistance funds going to the first poorest quintile of the population increases to 45 percent from 37.7 percent at baseline (in 2009); c) improved administrative efficiency: reduction in administrative and client costs for means-tested programs by 15 percent from baseline value; and d) reduced error and fraud: programs for low-income households, disability benefits and family policy programs have strengthened information systems, and oversight and control procedures including detection of error and fraud using risk-based investigation, data matching, data quality audits, and consolidated beneficiary registries.

The project DPL is now in the pipeline.

2009-07-18T04:00:00.000Z

The project DPL is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the First Development Policy Loan (DPL) Program for Romania is to support the Government's reforms in fiscal management, social protection, and the financial sector. This operation is being proposed as the first of a series of three single tranche programmatic loans totaling Euro 1 billion. The first DPL is for Euro 300, and the second and third DPL will be Euro 360 million and Euro 340 million respectively. The DPL program supports the Government's structural reforms in three key areas: a) improving fiscal sustainability and public financial management (cross-sectoral reforms and reforms in two key sectors-health and education); b) enhancing social protection systems-social assistance and pensions-to address the immediate needs of the poor and vulnerable but also to ensure more effective social protection over the longer term; and c) strengthening the contingency planning and resilience of the financial sector. In the fiscal and financial sector areas, which are also being covered by the International Monetary Fund (IMF) and the European Commission (EC) programs, the Bank operation reinforces and complements the measures envisaged under these respective programs.

The project Energy Community Program - Romania Component - Hidroelectrica/Tarnita is now in the pipeline.

2008-01-12T05:00:00.000Z

The project Energy Community Program - Romania Component - Hidroelectrica/Tarnita is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Modernizing Agricultural Knowledge & Information Systems Project (MAKIS) is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Modernizing Agricultural Knowledge & Information Systems Project (MAKIS) is now in the pipeline. To see more information, see the project information in the World Bank project database

The Modernizing Agricultural Knowledge and Information Systems Project for Romania will contribute to the productivity and quality increases of agro-food products, the modernization and the improvement of food processing and marketing chains as well as increase of agricultural producers' income and the sustainable development of rural areas. The project has the following four components: Component 1) will strengthen the National Authority for Sanitary, Veterinary and Food Safety (ANSVSA) and Phyto-sanitary units so that they are better able to (i) implement the new food safety regulations adopted by Romania in compliance with EU accession requirements; and (ii) provide the necessary control and verification of fresh and processed products to enable farmers, ago-industry and food processors to supply local and international markets. Component 2) will strengthen the capacity of the national agricultural research system (NARS) to provide agricultural knowledge, skills and information to farmers and agro-processors based on the needs of the agro-food sub-sector and in line with the EU requirements. Component 3) will provide support for advisory and information systems. Component 4) will provide for project co-ordination and administration, procurement, financial management, reporting, monitoring and evaluation activities for all components.