Tajikistan | World Bank

Official Documents- Amendment to the Participation Agreement with Dong Naturgas A/S Ref. Additional Contribution

2013-05-21T04:00:00.000Z

Project Information Document (Appraisal Stage) - Tajikistan Health Services Improvement Project (HSIP) - P126130

2013-05-17T04:00:00.000Z

Tajikistan - EMERGENCY FOOD SECURITY AND SEED IMPORTS PROJECT : P112157 - Implementation Status Results Report : Sequence 08

2013-05-17T04:00:00.000Z

Integrated Safeguards Data Sheet (Appraisal Stage) - Tajikistan Health Services Improvement Project (HSIP) - P126130

2013-05-16T04:00:00.000Z

Tajikistan - Health Services Improvement Project : environmental assessment

2013-05-13T04:00:00.000Z

The objective of the Health Services Improvement Project for Tajikistan is the improvement of country health sector key indicators. Negative impacts include: low power supply, sewage, dust, noise, traffic, waste, water pollution, and health issues. Mitigation measures include: (1) discharging waste water from washing to open trench drains at the side of the roads; (2) providing proper ventilation and natural lighting in the building design; (3) providing storage facility for sufficient volumes of water; (4) installing pit latrines in downhill from water sources or wells, at least two meters above the water-table and about six meters away from the building; (5) providing solar photovoltaic technology and solar thermal applications for water heating; and (6) training healthcare staff in infection control and occupational safety good practices when dealing with sharps and infectious waste.

Official Documents- First Restatement to the Disbursement Letter for TF014081

2013-05-10T04:00:00.000Z

Tajikistan - Nutrition at a glance

2013-05-10T04:00:00.000Z

Tajikistan has seen a recent increase in adult obesity. Low-birth weight infants and stunted children may be at greater risk of chronic diseases such as diabetes and heart disease than children who start out well-nourished. Progress in improving community infrastructure and development of sound public health systems has been slow, thwarting efforts to reduce under nutrition; while diets high in refined carbohydrates, saturated fats and sugars, combined with a more sedentary lifestyle are commonly cited as the major contributors to the increase in overweight and chronic diseases. The World Bank is currently supporting the US$25 million community and basic health project, which directs resources to improve delivery of maternal and child health services.

Tajikistan - Health Services Improvement Project : procurement plan

2013-04-23T04:00:00.000Z

Official Documents- Agreement for Grant TF014081

2013-04-16T04:00:00.000Z

Official Documents- Disbursement Letter for Grant TF014081

2013-04-16T04:00:00.000Z

Health equity and financial protection datasheet : Tajikistan

2013-04-12T04:00:00.000Z

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

Official Documents- Amendment to the Development Grant Agreement for IDA Grant H179-TJ

2013-04-12T04:00:00.000Z

Official Documents- Amendment to the Financing Agreement for IDA Grant H576-TJ

2013-04-12T04:00:00.000Z

Official Documents- Amendment to the Disbursement Letter for Projects Listed in Annex I

2013-04-03T04:00:00.000Z

The project Cotton Sector Recovery Project has changed to Closed

2013-04-02T04:00:00.000Z

The project Cotton Sector Recovery Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Cotton Sector Recovery and Poverty Reduction Project is to improve the livelihood of cotton farmers and create the conditions for sustainable growth of cotton production in selected, low income areas of Tajikistan, through debt resolution, an improved policy environment, and increased cotton output and profitability. The Project has 4 components: Component A is a defined, rules based approach to the implementation of debt resolution in the cotton sector through the creation of a Debt Resolution Agency and a financial vehicle (the Special Purpose Vehicle - SPV). Component B is the provision of technical assistance to the Government to support them in their agricultural policy formulation and implementation. Component C provides sub-credits to the cotton and seed processing sectors in the project areas in order to catalyze competition and drive recovery. Component D. Project Implementation Unit was set up in the Office of the President, to facilitate interaction with the State Advisor on Economic Policy appointed as the Chairman of the Independent Commission. To improve co-ordination, it will also implement the Asian Development Bank's Sustainable Cotton Sub-sector Project.

PPIAF assistance in Tajikistan

2013-04-01T04:00:00.000Z

The objective of Public-Private Infrastructure Advisory Facility (PPIAF) strategy is to help address impediments to private investment and private sector development associated with government policies, laws, regulations, and administrative procedures in Tajikistan. PPIAF's engagement in Tajikistan has so far consisted of two completed activities totaling $520,000: one in 2001 targeting the water sector in particular and the other in 2006 targeting private-public partnerships in infrastructure in general. There are also two ongoing activities in the water and energy sectors-totaling $325,000-for which it is too early to show results. This PPIAF provided legal and technical support for selecting a private operator to manage the water supply system in the capital city and train staff in monitoring and regulating private contractors. And the contracting of the private operator led to increased revenues between 2002 and 2005 as a result of three tariff increases, as well as efforts to identify and register consumers. Cash collections have also improved, mainly through the abolishment of in-kind payments for service, and the establishment of a cash only policy for service

Tajikistan - Cotton Sector Recovery Project : P098889 - Implementation Status Results Report : Sequence 10

2013-03-31T04:00:00.000Z

Official Documents- First Restated Disbursement Letter, Grant H810

2013-03-28T04:00:00.000Z

Summary of the report

2013-03-28T04:00:00.000Z

Is Tajikistan at risk from climate change? If so, haw should it adapt, given the many other pressing challenges it faces? Can long-term adaptation be reconciled with near-term development priorities? This report advances three main propositions in response, and provides supporting arguments and evidence to buttress them. First, it warns that households in Tajikistan are, significantly threatened by climate change, and illustrates the main transmission channels through which they will likely be impacted. Second, the report shows how, for front being in conflict, Tajikistan's climate adaptation priorities are in fact in close conformance with key development objectives, it and highlights the strong public support for more government spending on agriculture, wafer management and public infrastructure, disaster management, and public health four key areas identified in the countries latest poverty reduction strategy as being specially important from both climate-change and development perspectives. It presents a regional vulnerability index for Tajikistan, which could help direct climate change adaptation investments towards areas of highest vulnerability. Finally the report argues that it is imperative that project based Climate related interventions be supported by an enabling environment and overall policy framework that is Conductive for facilitating faster climate adaptation.

Tajikistan - Ferghana Valley Water Resources Management Project : P084035 - Implementation Status Results Report : Sequence 14

2013-03-23T04:00:00.000Z

Environmental management plan

2013-03-21T04:00:00.000Z

The development objectives of the Additional Financing for the Municipal Infrastructure Development Project for Tajikistan are to improve the availability, quality and efficiency of delivery of basic municipal services to the population of the towns which participate in the project will not change. In doing so, the project will assist local governments in responding to pressing public service needs of the local population. Negative impacts include: damage to ecosystems, endangered plant species; pollution of soil and water at construction site with oil materials; daily checks of machinery for leaking of oil, ban to wash machinery at construction site; noise pollution in towns; and reduced amenity values of the area. Mitigation measures include: 1) selection of pipeline route to avoid habitats of endangered plant species; 2) works performed strictly during the working hours; 3) proper landscaping and replanting of construction area after completion of piping works; 4) daily checks of machinery for leaking of oil, ban on wash machinery at construction site; 5) collection of scrap asphalt and delivery to designated landfills/dumpsites; 6) proper landscaping of slopes and replanting of vegetation; and 7) foresee and provide alternative access routes to kiosks, select proper timing for civil works.

Infographic: Eurasian Cities

2013-03-11T12:00:00.000Z

Press Release: Rethinking Eurasian Cities

The project Tajikistan PDPG6 has changed to Closed

2013-01-16T05:00:00.000Z

The project Tajikistan PDPG6 has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Sixth Programmatic Development Policy Grant Program (PDPG6) for Tajikistan is to protect basic services within a sustainable fiscal framework, and to lay the foundation for post-crisis recovery and growth. The PDPG6 of SDR 13.2 million (US$ 20 million equivalent) is the third in a programmatic series of three operations for the Republic of Tajikistan. The PDPG4-6 series is central to the World Bank's engagement in Tajikistan, as envisaged in the FY10-13 Country Partnership Strategy (CPS). It supports the government's two-pronged strategy to mitigate the impact of the global crisis and to pave the way for post-crisis recovery and poverty reduction. The series builds on the PDPG1-3 series completed in 2009, and seeks to (i) protect social spending and increase its efficiency, (ii) improve the climate for private sector development, and (iii) strengthen government effectiveness. PDPG4 and PDPG5 focused on protecting earlier social sectors gains, and on improving the environment for private investment. The 2008-09 global economic crisis adversely affected Tajikistan through lower remittances and exports. Growth slowed to 3.9 percent, PDPG6 supports the economic recovery underway following the 2009 slowdown. Gross Domestic Product (GDP) growth has recovered to more than 6 percent in 2010 and 2011. Accordingly, the focus of the PDPG series has shifted from protecting earlier social sector gains to improving the environment for private sector development and strengthening government effectiveness. PDPG6 supports continued implementation of health and education financing reforms and ongoing efforts to improve targeting effectiveness of social assistance. To help spur private sector-led growth, the government has submitted a new law on public private partnerships to Parliament in August 2012, and has continued expedited issuance of land-use certificates to farmers. It has introduced a new salary grid in all central government entities, submitted a new law on public administration to Parliament which was approved in May 2012, approved the chart of accounts for public institutions, and prepared the 2012 budget based on the new budget classification.

The project Community & Basic Health Addl Financing has changed to Closed

2013-01-04T05:00:00.000Z

The project Community & Basic Health Addl Financing has changed to Closed. To see more information, see the project information in the World Bank project database

The Tajikistan Community and Basic Health Project (CBHP) additional financing will help finance the costs associated with an additional intervention that will provide nutritional supplements and nutrition education to pregnant and lactating women, and investment in growth monitoring in primary health care centers. The development objective of the CBHP is to increase access to, utilization of, and patient satisfaction with health services in project-supported areas, and to build capacity and efficiency at national and selected oblast and rayon levels in administering the basic package of health benefits (BBP) and per capita financing for primary health care (PHC). In 2007, food price inflation was 27.5 percent. Within the food basket, the price of bread rose by 49.6 percent in 2007, reflecting the rapid global rise in wheat prices. Such a large increase in the price of bread will affect the living standards of the poor, because it comprises a large share of their consumption basket. Improving the health of the population is a core objective of the Tajikistan Poverty Reduction Strategy Paper (PRSP). Similarly, improvement in sector performance and health status are key objectives of the government's reform program and efforts to meet the Millennium Development Goals (MDGs). The current food crisis is threatening to aggravate these health outcomes particularly among low-income groups, who have little funds available to pay for food and other pressing needs.

The project Community & Basic Health Project Additional Financing - 2 has changed to Closed

2013-01-04T05:00:00.000Z

The project Community & Basic Health Project Additional Financing - 2 has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Additional Financing for the Community and Basic Health Project (CBHP) for Tajikistan is to increase access to, utilization of, and patient satisfaction with health services in project-supported areas; and to build capacity and efficiency at national and oblast and rayon levels in administering the basic benefit package and per capita financing for primary health care. The Additional Financing (AF) is a better available mechanism to maximize development impact and results compared to a repeater project, a completely new operation, or non-lending instruments. This is mainly because the AF could use the very well performing CBHP as a vehicle to bring the additional funds fairly quickly to the health sector. The recipient is highly committed to scaling-up project activities, in particular under family medicine and the health financing reforms. The magnitude and scope of the scale-up can be easily accommodated in the context of the ongoing project, relying on the recipient's existing implementation capacity and arrangements with oblasts and other donors.

The project Community and Basic Health Project - Additional Financing has changed to Closed

2013-01-04T05:00:00.000Z

The project Community and Basic Health Project - Additional Financing has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Additional Financing and Restructuring for the Community and Basic Health Project for Tajikistan will remain the same, i.e. to increase access to, utilization of, and patient satisfaction with health services in project-supported areas, and to build capacity and efficiency at national, oblast and rayon levels in administering a basic package of health benefits and introducing financing reforms in primary health care. More specifically, the Additional Financing (AF) will finance: 1) the completion of the Community and Basic Health Project (CBHP) investment, which would not be feasible otherwise due to the costs associated with higher than anticipated construction costs for health facilities; and 2) the scale up of activities started under the CBHP to ensure their sustainability, and support the development and implementation of the health sector strategy. The AF is expected to finance a combination of consultant services, medical and computer equipment, medical furniture, basic renovation of an office in oblast health department in Sughd, and training of health care staff in family medicine. The reasons for AF are two-fold, first to enable the completion of the original CBHP investments and activities, and second, to scale up and expand activities to maximize the development impact of the CBHP and support the development and the implementation of the health sector strategy.

The project Energy Emergency has changed to Closed

2013-01-04T05:00:00.000Z

The project Energy Emergency has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Energy Emergency Recovery Assistance Project for Tajikistan is urgently increase the volume and reliability of the national energy supply, especially in the winter season by supporting the implementation of the Recipient's Energy Emergency Mitigation Plan (EEMAP). The reallocation is necessary to ensure processing of payments under the oil supply contract in full. The allocated amount under category 4 'goods under part 1.A (ii) of the project' became insufficient due to exchange rate fluctuations that reduced the available International Development Association (IDA) funds in US dollars. On August 5, 2010 the Bank has received the letter from the Ministry of Finance requesting to reallocate the amount of SDR 197,091 from category 5 to category 4. However, it is proposed to reallocate the whole current allocation of SDR 213,846 from the category 5 'consultant services and training under part 1.B of the project' to category 4 'goods under part 1.A (ii) of the project' in order to cover current commitments under the oil supply contract. The training and consultancy services needs will be met from the allocations under the additional financing.

The project Energy Emergency - Additional Financing has changed to Closed

2013-01-04T05:00:00.000Z

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

The objective of the Additional Financing for the Energy Emergency Recovery Assistance Project (EERAP) for Tajikistan is to urgently increase the volume and reliability of the national energy supply, especially in the winter season, by supporting the implementation of the Energy Emergency Management Action Plan (EEMAP). The additional financing of US$15 million equivalent for the EERAP is being prepared in response to a Tajik Government request to International Development Association (IDA) to provide support for meeting severe energy shortages. The EERAP will be restructured with level two restructuring to address changed circumstances and the new challenges such as Tajikistan's cut off from Central Asia Power System (CAPS) and consequent needs to increase domestic power generation. The EERAP aims to: (a) ensure basic access to electricity for about 250,000 people in northern Tajikistan, and (b) increase heat and power supply to the entire country, without overdrawing or depleting hydro resources in winter. The additional financing will help finance costs associated with the following original project's activities: (i) scale-up of project activities to provide critically needed power; and (ii) a corresponding scale-up of project management support. A scale-up of the EERAP is appropriate because it supports project development objectives and aligns with the 2006 Country Assistance Strategy (CAS).

The project TAJIKISTAN SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT has changed to Active

2013-01-04T05:00:00.000Z

The project TAJIKISTAN SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT has changed to Active. To see more information, see the project information in the World Bank project database

The development objectives of the Second Public Employment for Sustainable Agriculture and Water Resources Management Project are to: provide employment to food-insecure people through the rehabilitation of irrigation and drainage infrastructure, increase crop production in response to improved irrigation and drainage infrastructure, and support the development of improved policies and institutions for water resource management, as a means to improve food availability and food access for low-income people in poor rural areas supported by the project. There are three components to the project. The first component of the project is public works and rehabilitation of irrigation and drainage infrastructure. The second component of the project is assistance in water resources management, including technical assistance for policy and institutional reform. The third component of the project is project management. A Project Management Unit (PMU) to be managed under the World Bank-financed Ferghana valley water resource management project will be the main implementation agency. It will be responsible for: implementation and coordination, financial management and procurement, communication and awareness programs, environmental management and safeguards, and monitoring and evaluation.

The project Community & Basic Health Project has changed to Closed

2013-01-04T05:00:00.000Z

The project Community & Basic Health Project has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Community and Basic Health Project for Tajikistan is to increase access to, utilization of, and patient satisfaction with health services in project-supported areas; and to build capacity and efficiency at national and oblast and rayon levels in administering the basic benefit package and per capita financing for primary health care. The reallocation is necessary to reflect more accurate funding needs by category and to accommodate project savings in the project preparation advance category. This reallocation does not result in a change to the project activities, which are expected to reach full completion by the closing date of December 31, 2010, for this original grant. It also does not involve any changes to the project development objective or associated outcome targets.

The project Tajikistan PDPG6 has changed to Active

2012-11-06T05:00:00.000Z

The project Tajikistan PDPG6 has changed to Active. To see more information, see the project information in the World Bank project database

Sound Public Procurement Practices are Essential to Good Governance

2012-10-08T12:00:00.000Z

Dushanbe, October 8, 2012 – Ensuring that public goods and services are acquired through more effective, transparent and accountable process was the main theme of the joint Public Procurement Workshop held today by the representatives of the Agency on Procurement of the Republic of Tajikistan and the World Bank. The event was attended by the experts from the European Bank for Reconstruction and Development (EBRD), the United Nations Commission for International Trade Law (UNCITRAL), as well as the officials of state ministries and members of multiple donor organizations. Participants have reviewed key challenges and opportunities associated with establishing better public procurement practices as outlined in the World Bank Country Procurement Status Report (CPSR), prepared in collaboration with the Asian Development Bank, upon the request of the Government of Tajikistan.

“Improving the capacity and transparency of public procurement system is critical to ensuring that state finances are spent wisely to best serve the interests of Tajik people,” notes Marsha Olive, World Bank Tajikistan Country Manager. “Moreover, sound public procurement practices are an essential component of good governance.”

Although the country’s procurement legislature and regulatory framework has seen improvements in the past years, the World Bank CPSR presents several key recommendations and a suggested action plan to further strengthen the public procurement system. These include integrating procurement into the governance sector reform agenda, alignment of the current procurement rules and regulations with best international standards, and practicing greater stakeholder participation in procurement process monitoring and oversight. In addition, the report emphasizes the substantial gains achieved by several countries in reforming the public procurement systems through cost reduction.

Participants of the event have explored implementation of recommendations listed under the CPSR suggested action plan by means of adapting the EBRD UNCITRAL Initiative on Enhancing Public Procurement Regulations, as well as developing and approving a National Public Procurement Strategy for the years of 2012-2014. Once realized, these activities aim to increase the institutional capacity of the State Procurement Agency, clearly define the roles and responsibilities of procurement bodies, as well as strengthen internal and external procurement audit and anti-corruption measures.

The current World Bank portfolio in Tajikistan consists of 14 projects with net commitments of US$236 million. The largest share of the portfolio is in the energy and water sector (35 percent) followed by agriculture and rural development (31 percent), human development – education, health and social protection (30 percent), and economic policy and public sector (4 percent). In addition, planned projects include further support for improvements in tax administration, food security and healthcare.

Since 1996, the World Bank’s cooperation program with Tajikistan has entailed 85 operations for about US$ 700 million. These continue to benefit the people of Tajikistan by contributing to improved education, better access to healthcare, enhanced land rights, more jobs in rural areas, an improved business environment, and private sector development.

Contacts:

In Dushanbe: Nigina Alieva, (992 48) 701 58 07, nalieva1@worldbank.org
In Washington: Kristyn Schrader-King, (202) 458-2736, kschrader@worldbank.org

For more information about the World Bank in Tajikistan: http://www.worldbank.org/tj

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Public Financial Management Reform Remains World Bank Priority in Tajikistan

2012-10-05T08:35:19.000Z

Dushanbe, October 4, 2012 – A grant agreement to finance the Tajikistan Public Sector Accounting Reform Project was signed today in Dushanbe by the Minister of Finance of the Republic of Tajikistan Safarali Najmiddinov, the World Bank Country Manager in Tajikistan, Marsha Olive, and Deputy Country Director for Swiss Cooperation Office in Tajikistan, Nicolas Guigas. The goal of the project is to support the Government of Tajikistan’s efforts in establishing more transparent accounting and budgetary reporting practices for state budget execution. The project, administered by the World Bank, is funded through a Trust Fund grant by the Government of Switzerland’s Secretariat for Economic Cooperation (SECO) in the amount of US$2.16 million.

The Public Sector Accounting Reform Project supports the implementation of key goals of the Government-adopted Public Financial Management (PFM) Strategy for 2009-2018. More specifically, the project will support the Ministry of Finance with introduction of the new accounting policy, namely the adaptation and implementation of the Unified Charts of Accounts (UCOA) and the International Public Sector Accounting Standards (IPSAS). It will also assist with technical and institutional capacity building of the Ministry of Finance, the Treasury, and Public Financial Management officials nation-wide to generate reports based on the new accounting policy.

“Strengthening transparency and accountability for public resources is a key foundation for all of our programs in Tajikistan,” said Marsha Olive, World Bank Country Manager in Tajikistan. “We are pleased that together with our Swiss partners, we are supporting key public finance management reforms, so that scarce funds are used as intended to improve services for citizens.”

By supporting the Government’s long term accounting reform, the project is contributing towards improving the quality, reliability and consistency of financial reporting and promoting transparency in public sector operational management, through improvements in accounting policies and practices.

The Tajikistan Public Sector Accounting Reform Project is designed to complement the efforts and activities under the World Bank’s Public Management Modernization Project, which is active since 2009. In line with the PFM Strategy priorities, the Public Financial Management Modernization Project works with the Government of Tajikistan to support capacity building in budget preparation and execution, improves the IT capacity and infrastructure of the Ministry of Finance, and helps introduce an integrated Financial Management Information System (FMIS).

The current World Bank portfolio in Tajikistan consists of 14 projects with net commitments of US$236 million. The largest share of the portfolio is in the energy and water sector (35 percent) followed by agriculture and rural development (31 percent), human development – education, health and social protection (30 percent), and economic policy and public sector (4 percent). In addition, planned projects include further support for improvements in tax administration, food security and healthcare.

Contacts:

In Dushanbe: Nigina Alieva, (992 48) 701 58 07, nalieva1@worldbank.org
In Washington: Kristyn Schrader-King, (202) 458-2736, kschrader@worldbank.org

For more information about the World Bank in Tajikistan: http://www.worldbank.org/tj

Visit us on Facebook: http://www.facebook.com/worldbank
Be updated via Twitter: http://www.twitter.com/worldbank
For our YouTube channel: http://www.youtube.com/worldbank

The project TAJIKISTAN SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT is now in the pipeline.

2012-09-19T04:00:00.000Z

The project TAJIKISTAN SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT is now in the pipeline. To see more information, see the project information in the World Bank project database

Crossing Boundaries

2012-09-06T23:45:00.000Z

As prepared for delivery

Friday, September 7, 2012

World Conservation Congress

Jeju, Korea

Rachel Kyte, Vice President, Sustainable Development

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

…………………

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

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

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

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

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

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

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

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

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

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

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

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

Conclusion

Ladies and Gentlemen, as we begin this Congress:

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

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

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

· Let’s cross our boundaries together.

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

The World Bank Continues Investments in Municipal Service Provision in Tajikistan

2012-08-24T16:11:00.000Z

Dushanbe, Tajikistan, August 24, 2012 – Over 200,000 people residing in five towns of Tajikistan – Kurgan-Tube, Farkhor, Dangara, Kulyab, and Vose – will benefit from improved access to clean water and high-quality utility services as a result of US$ 11.85 million of additional financing for the World Bank’s Tajikistan Municipal Infrastructure Development Project (MIDP).

On August 23, 2012 World Bank Country Manager in Tajikistan Marsha Olive and Minister of Finance of Tajikistan Safarali Najmiddinov signed the grant agreement to finance the costs of expanding investment in the water and sanitation sector and solid waste management, and place a greater emphasis on institutional strengthening to ensure long-term improvements in the quality of people’s lives. Around US$2 million of this financing will be made available to the Government under a retroactive financing mechanism to mitigate seasonal floods in the Khatlon Region.

The Municipal Infrastructure Development Project aims at improving the availability, quality, and efficiency of delivery of basic municipal services to the population, including water, sanitation, and solid waste management. The additional financing will support the Government of Republic of Tajikistan in implementing the “Concept for Housing and Communal Services Reform 2010-2020” approved in 2010 by financing the development of a Municipal and Communal Services Sector Strategy and Design of a Communal Services Development Fund to identify the reforms required to further improve the delivery of communal services.

A component of the project also aims at strengthening the capacity of the State Unitary Enterprise “Khojagiyi Manziliyu Kommunali” (SUE “KMK”) to provide centralized oversight over local utilities, and to respond to emergency situations caused by natural disasters through better equipment and flood protection measures along selected vulnerable river sections. The additional financing will allow for piloting of a number of initiatives, including the Household Connection Subsidy program for small towns to improve equity of access to water supply, and piloting of modern billing and collection technology.

“The Bank has always placed a high priority on improving the quality of water services delivered to the people of Tajikistan, as well as helping ensure the sustainability of these improvements. The continuation of this project will enable an additional 25,000 people to benefit from safe drinking water,” said Marsha Olive, World Bank Country Manager in Tajikistan.

The original MIDP, launched in 2006, has successfully implemented municipal infrastructure investments in eight participating towns: Kurgan-Tube, Kulyab, Dangara, Istaravshan, Gharm, Vose, Kanibadam, and Vahdat, through: i) financing the rehabilitation and repair of infrastructure and installations and the replacement of equipment at local branches of the SUE “KMK”, and ii) assisting the SUE “KMK” and its local branches in improving the management of basic municipal services delivery. As a result of the project, the eight participating towns have benefited from a 146 percent increase in the number of people with access to an improved water source, an average of 20 percent increase in the number of daily access hours to water, and an average of 31 percent reduction in unaccounted water.

The World Bank is committed to improving the operational and financial sustainability of the utilities sector in Tajikistan. Thus, in two of the five towns, at the request of the Tajik Government, the World Bank will pilot institutional strengthening measures to complement infrastructure investments in water, sanitation, and solid waste services that can potentially be scaled up nationally. The pilot initiatives aim to increase the sustainability and performance of water supply services. The additional grant will assist the Government in identifying financing mechanism options to support the development of the water and sanitation sector, and attract and leverage donor contributions.

The Tajikistan Municipal Infrastructure Development Project is currently financed through a US$26.85 million grant from the International Development Association (IDA), part of the World Bank Group; US$2.53 million of co-financing from the Government of Tajikistan; in addition to US$88 thousand in contributions from project beneficiaries.

The current World Bank portfolio in Tajikistan consists of 14 projects with net commitments of US$225 million. The largest share of the portfolio is in the energy and water sector (35 percent) followed by agriculture and rural development (31 percent), human development – education, health and social protection (30 percent), and economic policy and public sector (4 percent).

Contacts

In Dushanbe: Nigina Alieva, +992 (48) 701 58 07, nalieva1@worldbank.org
In Washington: Kristyn Schrader-King, +1 (202) 458-2736, kschrader@worldbank.org

For more information about the World Bank’s work in Tajikistan, please visit: www.worldbank.org/tj

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The project Tajikistan Public Sector Accounting Reform Project is now in the pipeline.

2012-08-16T04:00:00.000Z

The project Tajikistan Public Sector Accounting Reform Project is now in the pipeline. To see more information, see the project information in the World Bank project database

Creating Jobs, Growing Food in Tajikistan

2012-07-30T14:16:09.000Z

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Creating Jobs, Growing Food in Tajikistan

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Basic Education Accessible for All Tajiks

2012-07-30T14:13:33.000Z

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Basic Education Accessible for All Tajiks

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Government, ADB and World Bank Review Operations in Tajikistan

2012-07-24T16:15:00.000Z

Dushanbe, 24 July 2012 – The Government of Tajikistan, the Asian Development Bank (ADB) and the World Bank (WB) presented today the findings of their seventh Joint Country Portfolio Performance Review (the Review).

The Review assessed the performance of the joint country portfolio of projects funded by both banks, its relevance and impact. Participants also discussed issues that affect performance of the country portfolio and actions necessary to address them.

The meeting was chaired by Davlatali Saidov, Chairman of the State Committee on Investments and State Property Management; Marsha McGraw Olive, WB’s Country Manager in Tajikistan; and Asel Chyngysheva, ADB's Officer-in-Charge for Tajikistan. Government officials, project implementation units, ADB and WB staff participated in the meeting.

Joint portfolio reviews have been organized since 2004. Previous reviews have resulted in action plans addressing critical issues in portfolio management, including measures to improve project implementation, disbursement, fiduciary management, and tax issues. Progress has been made in some areas, while a number of issues remain that require attention.

The meeting highlighted that the joint portfolio performance remains satisfactory. The review has also shown that the government and the banks need to continue efforts to strengthen the institutional capacity of implementing agencies associated with monitoring and evaluation, linkage to sector institutional frameworks, incentives, and procurement knowledge and skills; as well as to address pending issues with taxation.

The Review also presented findings of a pilot results-focused assessment of portfolio impact on achievement of sector-wide development objectives in the transport and health sectors, and recommended the approach be expanded to other sectors.

Tajikistan became a member of WB in 1993 and ADB in 1998. The total joint ADB-WB assistance to Tajikistan stands at $1.55 billion with more than 80% of all committed funds being concentrated in energy, agriculture, and transport. This includes $860 million from ADB (55.5%) and $690 million from WB (44.5%).

For more information on the joint country portfolio, please visit:
For the Government of Tajikistan: www.amcu.gki.tj
For the Asian Development Bank: www.adb.org/tajikistan
For the World Bank: www.worldbank.org/tj

___________________________________________________________________________________

Contacts	Contacts
Asel Chyngysheva +992 37 2210558	Zainiddin Karaev +992 48 701 5800
achyngysheva@adb.org	zkaraev@worldbank.org
Tatiana Evstifeeva +992 37 2210558	Faridun Sanginov +992 48 701 5800
tevstifeeva@adb.org	fsanginov@worldbank.org

Promoting a Service Orientation in Public Agencies in Tajikistan

2012-06-28T14:10:23.000Z

DUSHANBE, June 28, 2012 – Promoting a service orientation in public agencies to improve quality of service delivery to private enterprises was the main topic of discussion at the State Committee for Investment and State Property Management today. This event, co-organized by the State Committee for Investment and State Property Management and the World Bank Group, hosted a number of public agencies and representatives from the government, the private sector, and the donor community to present a subset of preliminary findings of the International Finance Corporation’s Business Environment and Enterprise survey.

While Tajikistan has improved on indicators such as Doing Business, recent data on governance and service delivery shows that there are additional opportunities for public agencies to increase their efficiency, and undertake reforms to reduce the regulatory and administrative burden on firms.

As the results of the nationwide survey indicate, the three type of businesses in the country, namely the Small and Medium Enterprises (SMEs), Individual Entrepreneurs, and Dekhan Farmers, share some common obstacles in doing business. The survey reveals that those public agencies that interact with businesses most frequently are perceived as being more problematic by the private sector.

The results provide evidence that the service quality in the eyes of the private sector decreases with the number of interactions with public agencies. One implication of this finding is that moving from a control and compliance model to a more service-oriented approach may not only increase efficiency of the individual agencies, but also improve perceptions of public agencies from the perspective of the private sector.

The follow on discussion, led by Manzura Makhkamova, Deputy Chair of the State Committee for Investment and State Property Management focused on ways that agencies may accomplish this task.

Contacts:

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

In Tajikistan: Faridun Sanginov, Tel.: (992 48) 701 5800, fsanginov@worldbank.org

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

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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

Global Mobility Unaffected by Financial Crisis, as Remittances Remained Resilient

2012-06-13T13:00:00.000Z

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Contacts:

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

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

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

2012-06-12T17:00:00.000Z

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

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

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

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

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

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

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

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

Regional Highlights

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

www.worldbank.org/globaloutlook

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

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

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

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

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

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

Contacts

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

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

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

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

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

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

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

World Bank Welcomes African Leadership on Natural Capital Accounting

2012-05-25T14:17:29.000Z

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

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

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

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

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

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

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

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

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

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

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

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

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

Contacts:

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

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

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

http://www.worldbank.org/sustainabledevelopment

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

The project Tax Administration is now in the pipeline.

2012-04-19T04:00:00.000Z

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

The project Tajikistan PDPG6 is now in the pipeline.

2012-04-05T04:00:00.000Z

The project Tajikistan PDPG6 is now in the pipeline. To see more information, see the project information in the World Bank project database

The project ADDITIONAL FINANCING MUNICIPAL INFRASTRUCTURE is now in the pipeline.

2012-03-20T04:00:00.000Z

The project ADDITIONAL FINANCING MUNICIPAL INFRASTRUCTURE is now in the pipeline. To see more information, see the project information in the World Bank project database

The development objective of the Municipal Infrastructure Development Project (MIDP) for Tajikistan is to improve the availability, quality and efficiency of basic municipal services for the population of the towns which participate in the project. This project paper seeks the approval of the Executive Directors to provide an additional grant of SDR 7.7 million (US$11.85 million equivalent) to the project. The additional financing (AF) will help finance the costs associated with scaling-up of on-going activities and support additional activities to enhance the positive impact of the MIDP. The original project has successfully implemented municipal infrastructure investments in eight participating towns through (a) financing the rehabilitation and repair of infrastructure and installations and the replacement of equipment of local branches of the State Unitary Enterprise 'Khojagiyi Manziliyu Kommunali' (KMK), and (b) assisting KMK and its local branches to improve the management of the delivery of basic municipal services. The AF will continue to support five town's four existing towns and one new town. The on-going activities will be scaled up to i) expand physical investments in water supply, sanitation and solid waste management in an integrated manner in two towns, which borders Afghanistan and is one of the poorest and ii) strengthen KMK's capacity to provide centralized oversight over local utilities and to respond to emergency situations caused by natural disasters. The AF will also increase emphasis on institutional strengthening and sector reform by financing additional activities that pilot efforts to improve water service coverage and utility performance in select towns, and the development of a municipal sector strategy. Overall implementation arrangements including procurement and financial management for AF which proved to be satisfactory will remain unchanged. The AF will also enhance the ability of the Government of Republic of Tajikistan (GoRT) to better respond to disruption in services due to flooding, severe cold weather (snow) and earthquakes by financing utility services maintenance equipment, cement, fuel and gabion wire mesh. The restructuring consisted of the following: (i) a trigger of a new safeguard policy on involuntary resettlement as the project necessitated temporary land acquisition which was not originally envisaged during initial appraisal of the project; (ii) re-allocation of the grant proceeds from the unallocated category to other categories to finance activities which were originally envisaged under the project but were not sufficiently covered by the original scope; and (iii) extension of the closing date of the project from August 31, 2011 to February 28, 2012. The original Project Development Objective (PDO) will be revised to reflect the changes in scope of the AF. The revised PDO is to 'improve the availability, quality and efficiency of basic municipal services for the population of the towns which participate in the project. The geographical scope of the AF will be reduced to five urban centers which include cities previously covered by MIDP.

The project Private Sector Competitiveness is now in the pipeline.

2012-03-19T04:00:00.000Z

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

The objective of the Private Sector Competitiveness Project for Tajikistan is to remove key constraints to business development and investment by: (i) simplifying business registration and construction permitting processes; (ii) improving regulations and infrastructure underlying access to financial services; and (iii) encouraging development of the mining industry, where Tajikistan has a competitive advantage. There are three components to the project, the first component being strengthening the business environment. This comprises of three sub-components: completion of establishment of an online one-stop-shop for business registration; improvement of the regulatory framework for provision of construction permits, and establishment of a single window for processing construction permits and inspections; and improvement of the financial infrastructure. The second component is the encouraging the development of the mining industry. This component will aim at supporting the development of an conducive business environment in the mining sector, which has a high competitiveness potential in Tajikistan, leveraging the new Competitiveness Partnerships Initiative (CPI) developed under the Finance and Private Sector (FPD) network of the Bank. Finally, the third component is the project management.

The project AF Land Registration & Cadastre System for Sustainable Agriculture Project is now in the pipeline.

2012-02-29T05:00:00.000Z

The project AF Land Registration & Cadastre System for Sustainable Agriculture Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Additional Financing for the Land Registration and Cadastre System for Sustainable Agriculture Project for Tajikistan is to expand farmland restructuring activities under the Farm Privatization Support Project, and to enable more rural people to become independent farmers and take management decisions in response to market forces. The additional grant would support expansion of the scope of activities under the current World Bank Project and support implementation for an additional three years. This will: (i) build understanding on how to improve the immovable property registry system by testing and demonstrating the integration of registry and cadastral information and good customer service in selected areas, and supporting analysis and planning for extension at the national level; (ii) expand farmland restructuring and issuance of certificates for family farms; (iii) expand the issuance of use rights certificates for other types of immovable property; (iv) expand the productive use of project-financed databases and mapping capacity and the further development of the cadastral system; (v) expand policy analysis; and (vi) support activities that complement farmland restructuring and certificate issuance, including information for farmers and other immovable property users, grants for on-farm irrigation rehabilitation, and environmental land management. Its support for both scaled-up farmland restructuring-related activities and new activities involving other types of immovable property will enhance the impact of a well-performing project and the implementation of priority government reforms. The additional financing will form one element of the Bank's ongoing support for the land agenda, which also includes programmatic development policy operations, policy dialogue, and tenure requirements in other investment projects.

The project AF ENERGY LOSS REDUCTION is now in the pipeline.

2012-01-12T05:00:00.000Z

The project AF ENERGY LOSS REDUCTION is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Energy Loss Reduction Project (ELRP) for Tajikistan is to assist (i) in reducing the commercial losses in the electricity and gas sectors, and to lay the foundation for improvement of the financial viability of the electricity and gas utilities in a socially responsible manner; and (ii) in the viability assessment of the proposed Rogun Hydroelectric Project (HEP) in Tajikistan. The additional financing will maintain, follow and expand the design of the original ELRP. The changes will comprise of: (1) supply and installation of electricity meters, gas meters, pipes, equipment, tools and materials; (2) design, supply and installation of automated billing system for Barki Tajik and gas network; and (3) other technical assistance to the government, Barki Tajik and Tajiktransgas.

The project Tajikistan Health Services Improvement Project (HSIP) is now in the pipeline.

2012-01-11T05:00:00.000Z

The project Tajikistan Health Services Improvement Project (HSIP) is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Russia Education Aid for Development (READ) is now in the pipeline.

2011-07-20T04:00:00.000Z

The project Russia Education Aid for Development (READ) is now in the pipeline. To see more information, see the project information in the World Bank project database