Uruguay | World Bank

Status of projects in execution (SOPE) - FY09 : Latin America and the Caribbean region - Uruguay

The Status of Projects in Execution (SOPE) report for FY09 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2009. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY09 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Uruguay - Additional Financing for the Third Basic Education Improvement Project

This project paper provides an additional loan to the Oriental Republic of Uruguay for the Third Basic Quality Improvement Project, including the extension of the project's closing date by 36 months from December 31, 2009 to December 31, 2012, to allow for the completion of the project activities and the achievement of the project targets. The additional financing will address the financing gap arising from the increase in project costs associated with a change in the Government of Uruguay's (GoU) strategy on civil works, and the significant escalation of construction costs in the country. The new civil works strategy will ensure that the Project Development Objectives (PDO) target of 47,000 new student places in Full Time Schools (FTSs) will be met. No changes are to the design or implementation arrangements of the project. The additional financing will continue to finance ongoing activities including: (i) the construction, rehabilitation and equipping o f schools; (ii) the procurement of didactic materials (school equipment, learning materials, and school libraries); (iii) teacher training for FTS; and (iv) project management.

Uruguay - Trade reform and economic efficiency : policies for trade promotion

Uruguay has a long history of protection dating back more than one hundred years. Such long exposure to protection in such a small country has made Uruguay a clear example of the typical consequences of restrictive trade policies: distortionary costs resulting from inefficiently allocated resources, and a loss of scale economies because of limited domestic markets. High protection of manufacturing was maintained by taxing agriculture, the main activity in which Uruguay has a strong comparative advantage. The limits to this policy became clear throughout the post-second world war period when, on average, real gross domestic product (GDP) growth was less than one percent a year and per capita income remained nearly constant. The macroeconomic situation of high inflation and low investment is another major obstacle to further trade expansion. Other obstacles, including the perceived precariousness of property rights following the obligatory refinancing of internal debt under the Mandatory Refinancing Law of 1985, have jeopardized lending in the domestic capital market, except for self-liquidating loans such as export credits. A Senate act is required to dismiss any civil servant who has more than six months of service, and trade union power in the economy has increased since 1985, especially in the Port of Montevideo, one of the most labors intensive and strike prone ports in the world. It is in this context that the Uruguay government invited the United Nation Development Program (UNDP)-World Bank Trade Expansion Program (TEP) mission to identify areas of trade reform that could lead to further expansion of trade. The commitment to trade reform appears genuine, and key areas are now under study, to be followed by decrees implementing the trade reform measures.

Uruguay - Additional Financing for the Third Basic Quality Improvement Project

Report on compliance with environmental safeguard op 4.01 : appraisal stage

The objective of the Third Basic Education Project for Uruguay is to increase equity, quality and efficiency in the provision of preschool and primary education. The safeguard policy OP 4.01 included: (i) construction of new schools, (ii) construction of new classrooms in existing schools, and (iii) rehabilitation of classrooms. The primary risks considered in the environmental evaluation are associated with the construction period and include: (i) an increase in air and noise pollution; (ii) disposal of construction waste; (iii) potential interruption or limitation of access to homes or businesses near to the construction/rehabilitation site of the schools; (iv) potential increase in accidents; and (v) potential disruptions during construction (for example noise, dust, waste). An evaluation of the implementation of the environmental mitigation plan in the places where the schools were constructed or renovated has shown that environmental impacts can and were mitigated through appropriate and satisfactory implementation of the PMA.

Uruguay - Wind Farm Project

Uruguay - Additional Financing for the Third Basic Quality Improvement Project

Uruguay - Public Services Modernization Technical Assistance Project

Ratings for the Public Services Modernization Technical Assistance Project for Uruguay were as follows: outcomes were moderately satisfactory, the risk to development outcome was moderate, the Bank performance was satisfactory, and the Borrower performance was moderately satisfactory. Some lessons learned included: projects involving broad based public reform should include inclusive and extensive consultations with stakeholders in the reform process to better explain objectives, design, approach, and benefits. A stakeholder and political analysis during project preparation should help to identify institutional change champions and those opposed to reform, therefore, assisting in the consultation strategies. Sector reform requires flexibility and the ability to not prematurely close any door. The project strategies for sector reform, namely regulatory frameworks and institutions, Private Sector Participation (PSP), yardstick competition, unbundling of sectors, and corporate governance of state owned utilities, reinforced each other and contributed to the transformation of public services. This allowed the Bank to continue to push for sector reform once PSP became off limits for some sectors. Given the likelihood of a shift in the political context during long-term reform projects, it is essential that the strategy to achieve a given objective remain flexible to ensure the project is relevant and palatable to successive administrations and for popular support. The Bank and Government of Uruguay (GoU) gained valuable experience with sector reform. It is essential that projects of this nature include an important knowledge base component, including dissemination of publications and tools to a wider public. The wide dissemination of the project and the creation of a specific knowledge base could have an impact in increasing local ownership and acknowledgement of reform at all levels.

Uruguay - Wind Farm Project

Uruguay - Transport Infrastructure Maintenance and Rural Access Project : restructuring

The objective of the Transport Infrastructure Maintenance and Rural Access Project for Uruguay is to upgrade the country's transport infrastructure to a condition that facilitates the transportation of freight and passengers at a cost-efficient level of service. The restructuring will enable the completion of road and bridge works that were part of the Forest Products Transport Project (FPTP) but could not be completed before loan closure in April 2006, because of severe fiscal space restrictions that constrained the Ministerio de Transporte y Obras Publicas (MTOP) budget. These budgetary constraints were triggered by the compliance of targets agreed between Uruguay and International Monetary Fund (IMF), as part of a program to improve the fiscal situation of the country which was highly affected by the Argentine macroeconomic crisis. One direct implication is that several capital investments planned could not take place or were delayed due to uncertainty in budget allocation, as priority was given to the maintenance of existing roads which were key to the economy. Loan 4204 was amended to help the country deal with the crisis. As a result, some road and bridge works initially planned under Loan 4204 could not be undertaken before the approval of the new budget in March 2006. The changes in the Project's design have high priority and are consistent with the original project objective. These changes consist of replacing a number of sub-projects included in schedule two to the loan agreement and annex C to the implementation letter with roads that had originally been part of loan 4204 and were not completed because of budgetary restrictions. The works initially planned under the loan agreement and being replaced will be undertaken later in the period 2005-2010 by the Borrower using other sources of funding.

Doing business 2010 : Uruguay - comparing regulation in 183 economies

Doing Business 2010 is the seventh in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. This paper presents the summary Doing Business indicators for the Uruguay. The paper includes the following headings: introduction and aggregate rankings, starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, closing a business, and Doing Business 2010 reform.

Uruguay - Second Programmatic Reform Implementation Development Policy Program

The Second Programmatic Reform Implementation Development Policy Loan Program (PRIDPL II) operation is consistent with the three main objective of the Country Assistance Strategy (CAS), namely: (i) reduce vulnerability of Uruguay's economy; (ii) sustain economic growth; and (iii) improve living standards. As the centerpiece of the CAS lending program, the PRIDPL program targets all three objectives. In terms of specific actions, the PRIDPL II focuses on three areas: (a) implementation of the tax reform; (b) a first set of measures to improve the business climate and initiate the design of a program to promote capital markets development; and (c) implementation of ongoing measures to improve the social security system. These three areas are consistent with the broader reform agenda set out in the CAS. The tax reform supported by PRIDPL II is the cornerstone of the government's tax administration and tax policy reforms. The measures identified to improve the business climate and promote capital markets are aligned with the financial sector and capital market reform goals set out in the CAS. Finally, the social protection component builds on the Social Program Development Policy Loan (SPDPL) presented to the Board with the CAS. The overall risk associated with the PRIDPL II is considered moderate. The risks can be classified as those related to country context, which consists of economic, political and social risks, and as those related to the PRIDPL II program, which correspond to managerial, sustainability, and outcome risks with regard to program implementation.

Status of projects in execution (SOPE) - FY08 : Latin America and Caribbean region - Uruguay

The Status of Projects in Execution (SOPE) report for FY08 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2008. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY08 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Doing business 2009 : country profile for Uruguay - comparing regulation in 181 economies

Doing Business 2009 is the sixth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 181 economies, from Afghanistan to Zimbabwe, over time. This paper presents the summary Doing Business indicators for Uruguay. The paper includes the following headings: introduction, starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and closing a business.

Uruguay - Strengthening participatory monitoring and evaluation of social policy : Nonlending Technical Assistance Project - report on phase two

The objectives of the Uruguay Nonlending Technical Assistance Project (UY NLTA) were to: (i) evaluate the impact of providing a safety net program's (PANES's) social emergency programs; (ii) inform a dialogue about the future role of social programs and of MIDES as a lead authority responsible for the coordination and oversight of social policy in Uruguay; and (iii) strengthen Ministry of Social Development's (MIDES's) capacity to assess, monitor, and evaluate social policy in Uruguay, with considerable weight given to participatory approaches to monitoring and evaluation. Expected outcomes of the project included: (a) increased efficiency in the implementation of Uruguay's social programs through the consolidation of existing and dispersed databases and the strengthening of MIDES's Monitoring and Evaluation (M&E) system; (b) increased transparency and strengthened accountability in selected departments through the piloting of a participatory monitoring and evaluation (PM&E) approach; (c) stronger engagement of civil society in public sector reform in Uruguay; and (d) informed decisions about the future of social programs under the Plan Nacional de Equidad, and the role of MIDES, on the basis of the evaluations of PANES. The rest of this report is organized as follows: section two presents the PSIA's main contribution by laying out the main results described in the technical note. Section three presents the Technical Assistance (TA) contribution and is divided into three subsections. Subsection one looks at the contributions to strengthen the capacity within MIDES to conduct impact analyses; subsection two analyzes activities in the TA aimed at making the M&E system operational; and subsection three describes the International Workshop on M&E. Section four describes the risks and main problems faced during the implementation of phase two and includes lessons learned, pending agenda, and next steps.

Building on experience : improving social protection in Uruguay and the plan for social equity

The note highlights the need to establish an accurate monitoring and evolution (M&E) system for the Plan de Equidad (PE) that combines monitoring and evaluation with social accountability and citizens' participation mechanisms. Fortunately, MIDES (Uruguay's Ministry of Social Development) is firmly moving in this direction. The efforts undertaken by the numerous institutions associated with the PE to link different data sets is a key step in consolidating the M&E system. The World Bank helped to organize a seminar on the M&E system aimed at making available to MIDES regional best-practice experiences. The note also encourages including and disseminating information on social services standards and quality assurance. This is a key step, together with the information generated from the participatory monitoring, for citizens to demand accountability in an organized and effective manner. The note encourages exploring the chances of installing Citizens Information Centers throughout the country to support these efforts, by making information about citizens rights available to the public and by channeling citizens' opinions to decision makers.

Uruguay - Poverty and social impact assessment of the tax reform

The Poverty and Social Impact Assessment (PSIA) analyzes the impact of the tax reform, which came into effect in July 2007, on tax incidence and poverty in Uruguay. The essence of the reform is the introduction of a dual personal income tax, which taxes labor income at progressive rates and capital income at lower, proportional rates. A further modification is the reduction in the revenue share of indirect taxes. The study aims to provide information to inform policy discussion on distributional implications of tax reform. In addition, it gives impetus for further more sophisticated analysis of current and proposed tax reforms. In designing a tax system, a trade-off exists between efficiency, equity and administrative simplicity. The paper focuses on one aspect of this trade-off by evaluating the equity impact of the tax reform in Uruguay. Neither the efficiency of the post-reform tax system nor the effect on tax administration is examined. Assessing the distributional impact of a tax reform is important, firstly, as there is a potential to mitigate the equity-efficiency trade-off in the design of tax structures, and secondly, as the expenditure side of the budget can then be employed to diminish any adverse distributional impacts.

The project Additional Financing Third Basic Education Improvement has changed to Active

2009-10-28T04:00:00.000Z

The project Additional Financing Third Basic Education Improvement has changed to Active. To see more information, see the project information in the World Bank project database

Uruguay: Third Basic Education Quality Improvement Project

2009-10-20T22:09:23.000Z

WASHINGTON, October 20, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Uruguay: Third Basic Education Quality Improvement Project

IBRD Loan: US$29.9 million

Terms: Maturity = 22.5 years; Grace Period = 13 years

Project ID: P111662

Project Description: The Basic Education Quality Improvement Project in Uruguay will increase the equity, quality and efficiency of preschool and primary education in Uruguay. This will be achieved through school-level interventions to raise education quality in schools servicing socio-economically disadvantaged students, the enhancement of the teacher training systems and the introduction of new teaching and learning instruments in the classroom, and an increase in the efficiency of primary education institutions.

Media Contact

Stevan Jackson

(202) 458-5054

Sjackson@worldbank.org

For more project information, please visit: http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/URUGUAYEXTN/0,,menuPK:331615~pagePK:141159~piPK:141110~theSitePK:331609,00.html

For more information, please visit the Projects website.

Uruguay: World Bank Expands Support to Full-time Schools

2009-10-20T20:44:43.000Z

Contacts:

In Montevideo: Valeria Bolla (598-2) 916 9400

vbolla@worldbank.org

In Buenos Aires: Yanina Budkin (54-11) 4316-9724

ybudkin@worldbank.org

Washington D.C. October 20, 2009.- Today, the World Bank’s Board of Directors approved an additional US$ 29.9 million for the Third Basic Education Improvement Project (MECAEP) in Uruguay, allowing the project to reach a total of 47,000 of Uruguay’s students in full-time primary schools.

The project aims to improve the quality, equity, and efficiency of the public primary education system by:

1. Expanding the full-time school (FTS) model and introducing an alternative model for improving the quality of county schools attended by low-income vulnerable sectors;

2. Improving teacher training and introducing teaching aids; and

3. Strengthening educational assessment and monitoring capabilities.

“MECAEP has a positive effect on children’s learning in Uruguay,” commented Pedro Alba, World Bank Director for Argentina, Chile, Paraguay and Uruguay. “The program has significantly reduced repetition rates during the early years of education as well as an improved language and math skills in sixth grade.”

The additional financing will allow the Full-time School model to reach 11,330 additional students over the next two years, supporting the project’s same objectives with particular emphasis on building and rehabilitating schools to transform them into full-time institutions, as well as training teachers. This new phase of the project will end on December 3, 2012.

MECAEP Results

The Basic Education Improvement Project in Uruguay has allowed 130 full-time schools to be created to date, attended by 35,670 children throughout the country.

In addition to the 130 existing schools, another five schools are being built in Montevideo, Maldonado, and Canelones and will be ready in early 2010. More schools will begin construction next year.

Over 50% of the 130 Full-time Schools in Uruguay are located in areas that are socioeconomically vulnerable or very vulnerable. Highlighted project results include a strong reduction in repetition rates among children grades one to six attending Full-time Schools. These rates have reached levels comparable to those among children attending urban schools in favorable socioeconomic contexts where students in teaching training programs carry out their internships (escuelas de práctica). In 2008, repetition rates at Full-time Schools were 10% among first graders and 7.5% among second graders, showing a 30% decrease from 2002 rates.

The Third Basic Education Improvement Project in Uruguay (additional financing) for US$ 29.9 million has a variable rate and a maturity of 22.5 years, with a 13-year grace period.

For more information about the World Bank in Uruguay, visit http://www.bancomundial.org/uy

For more information about the Basic Education Improvement Project in Uruguay, click here

The project UY UTE 10MW Grid Connected Wind Power Farm at Caracoles Hill is now in the pipeline.

2009-08-07T04:00:00.000Z

The project UY UTE 10MW Grid Connected Wind Power Farm at Caracoles Hill is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Additional Financing Third Basic Education Improvement is now in the pipeline.

2009-08-05T04:00:00.000Z

The project Additional Financing Third Basic Education Improvement is now in the pipeline. To see more information, see the project information in the World Bank project database

Strengthening Dispute Resolution Systems

2009-07-21T17:42:39.000Z

WEBAgenda-Bios_.pdf

The project UY Foundations for Statistical Development has changed to Closed

2009-04-03T04:00:00.000Z

The project UY Foundations for Statistical Development has changed to Closed. To see more information, see the project information in the World Bank project database

The project Second Programmatic Reform Implementation Development Policy Loan has changed to Closed

2009-02-18T05:00:00.000Z

The project Second Programmatic Reform Implementation Development Policy Loan has changed to Closed. To see more information, see the project information in the World Bank project database

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

2009-02-06T05:00:00.000Z

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

Uruguay – Development Policy Loan (Second Programmatic Reform Implementation Development Policy Program)

2009-02-03T20:42:00.000Z

WASHINGTON, February 3, 2009 - The following project was approved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$400 million

TERMS: Maturity = 20.5 years; Grace= 15 years

Project Description: The Second Programmatic Reform Implementation Development Policy Loan (PRIDPL II) for Uruguay will support the government of Uruguay’s implementation of reforms in three key policy areas: (i) tax reform; (ii) the business climate and capital markets; and (iii) the social protection system where the loan builds on the achievements of the Social Program Development Policy Loan (SPDPL). The PRIDPL operations are a cornerstone of the Uruguay CAS. Development policy lending under the CAS is intended to support government policies in public sector management, financial sector reform and social programs reform. The PRIDPL I1 operation is consistent with the three main objectives of the CAS, namely: (i) reduce vulnerability of Uruguay’s economy; (ii) sustain economic growth; and (iii) improve living standards.

Media Contact

Patricia da Camara

(202) 473-4019

pdacamara@worldbank.org

For more information on the World Bank’s work in Uruguay, please click here.

Uruguay: WB Approves US$400 Million to Maintain Reforms and Protect Economy

2009-02-03T19:35:09.000Z

Contacts:
In Montevideo: Valeria Bolla (598-2) 916-9400

vbolla@worldbank.org

In Washington: Gabriela Aguilar +1 (202) 473-6768
gaguilar2@worldbank.org

WASHINGTON, February 3, 2009 — The World Bank Board of Executive Directors approved today a US$400 million loan for the Second Programmatic Reform Implementation Development Policy Loan (PRIDPL-2) in support of the government’s reform program. It also provides an additional line of financing to face the impact of the international economic crisis.

Specifically, the initiative will support reforms in three key areas identified and prioritized by the government:

(i) Support for the social safety net to promote formal labor markets and social inclusion, so that all citizens can benefit from public development programs.

(ii) Implementation of a new tax scheme that improves the system’s efficiency and equity.

(iii) Improvements in business climate and capital market development so as to increase the quality and quantity of investments by promoting a new regulatory framework for the capital market, improve the payment system, modernize the legal system, and enhance the accountability and transparency of information in the public and private financial sector, among others.

“We support Uruguay’s economic policy which is aimed at improving social inclusion with sound macroeconomic management and introducing reforms that enhance economic efficiency and competitiveness,” said Pedro Alba, World Bank Director for Argentina, Chile, Paraguay and Uruguay. “This readily available loan also helps us respond in a prompt and flexible manner to the needs of countries like Uruguay that are facing the impacts of the global crisis,” he added.

This loan is part of a World Bank’s 2005-2010 Assistance Strategy for Uruguay, the pillars of which include reducing vulnerability, sustaining growth and improving the standard of living of all its citizens.

The loan will use the variable spread option and be payable in 20.5 years, including a 15-year grace period, at six-month U.S. LIBOR minus 0.02 percent.

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For more information about the work of the World Bank in Uruguay, please visit:

http://www.worldbank.org/uy

In order to download the 2005-2010 Country Assistance Strategy, please visit: http://siteresources.worldbank.org/INTURUGUAY/Resources/CASFinalIngles.pdf

The project PUBLIC SERVICES MODERNIZATION TECHNICAL ASSISTANCE has changed to Closed

2009-01-01T05:00:00.000Z

The project PUBLIC SERVICES MODERNIZATION TECHNICAL ASSISTANCE has changed to Closed. To see more information, see the project information in the World Bank project database

The Public Services Modernization Technical Assistance Project will increase the efficiency, and sustainability of, and the access to public services in the water supply and sanitation, power, natural gas, petroleum, railways and ports, and telecommunications and postal sectors. The components will: 1) support the establishment, and strengthening of regulatory entities; revise tariff structures; develop financial models, regulatory accounting, and auditing information systems, and, develop a competitiveness environment to foster private sector involvement across sectors. Standard procedures will be implemented to reflect environmental concerns, and, strategies will be designed to increase access to the poor. Training programs will include study tours, seminars, and workshops; 2) develop additional regulation, and expand the previous component work, specifically for the water, and sanitation sector, including the preparation of medium sized concessions; 3) support the energy sector, focusing on the electricity, gas, and petroleum sub-sectors, by strengthening regulatory accounting. A strategic expansion of electricity quality services to the poor will be implemented. Gas operational regulations will be expanded, and, the petroleum liberalization of the downstream market should increase competition; 4) strengthen the regulatory oversight of anti-competitive, and market foreclosure practices in the telecommunications sector, and, design policy schemes to foster efficient provision of universal postal services; and, 5) assist in the internal reform of the National Railroad Authority, and, design integrated rail regulations, including interconnection aspects, and traffic control.

Consultations on the Bank Web Site

2008-12-09T15:37:38.000Z

Dear reader,

A few years ago, the World Bank’s Web site was noted as a leader among development organizations’ websites. As technology has rapidly advanced and user expectations evolved, our Web site too needs to change and adapt.

You come to our Web site because you are looking for the latest information on development. Our project information, data and research assist you in tackling your challenges or keeping up on the Bank’s activities.

Now we’re catching up. We are revamping our Web site and expanding our online capabilities to better satisfy our business needs and meet audience demands.

We’re examining all aspects of the site—content, technology, business needs and audience demands—to figure out what needs to stay, be improved or be removed.

This is a complex undertaking. We are currently gathering information to determine requirements for our future site.

Through our open online consultation, we are looking for comments from anyone who wishes to discuss their information needs and any difficulties they encounter with the site. The online consultation period ends on December 31, 2008.

All feedback we receive will inform the future design and functionality of the Web site by informing Bank management on audience needs.

Our ultimate goal is to make the Web site better support the institution’s mission of fighting global poverty and helping countries develop.

Your feedback will bring us closer to this goal.

Thank you,

Angie Gentile
Managing Editor, www.worldbank.org

Global Food and Fuel Crisis Will Increase Malnourished by 44 Million

2008-10-08T17:30:00.000Z

Contacts:
In Washington :Carl Hanlon 202-473-8087; chanlon@worldbank.org;
Philip Hay 202-473-1796
phay@worldbank.org

WASHINGTON, October 8, 2008 – High food and fuel prices will increase the number of malnourished people around the world in 2008 by 44 million to reach a total of 967 million, a report from the World Bank says.

While food and fuel price increases may have moderated in recent months, prices remain much higher than previous years and show few signs of declining significantly, according to the report entitled “Rising food and fuel prices: addressing the risks to future generations”. Poor families around the world are being pushed to the brink of survival, causing irreparable damage to the health of millions of children. As families cut back on spending, there are also grave risks for the educational performance of poor children.

“While people in the developed world are focused on the financial crisis, many forget that a human crisis is rapidly unfolding in developing countries. It is pushing poor people to the brink of survival,” said World Bank Group President Robert B. Zoellick. “The financial crisis will only make it more difficult for developing countries to protect their most vulnerable people from the impact of rising food and fuel costs.”

The report, due to be presented on Sunday to the Development Committee at the Annual Meetings of the World Bank and IMF, says the food and fuel crisis could have long term effects on poor people and countries. Malnourished children cannot develop into healthy adults and become productive members of society who can contribute to the growth needed to lift themselves and their country out of poverty.

The report says priority should be given to a series of targeted measures. These include:

Making existing targeted cash (or near cash) transfer programs more generous;
Getting nutrition to infants and pregnant women;
expanding so-called ”in-kind” food distribution programs including school feeding and the distribution of fortified calorically dense food;
using fee waivers, lifeline-pricing and other forms of targeted subsidies for poor users/consumers; and
introducing additional measures to prevent children from dropping out of school, such as fee waivers, subsidies for school inputs, or cash transfers.

The report also argues that allocating the necessary amount of budget to finance an expansion of safety net programs may require pruning less-priority spending in other areas. But it notes that well-designed safety net programs do not have to be prohibitively expensive to be effective. Some of the most successful programs in the world cost well under 1 percent of Gross Domestic Product. Moreover, investing in safety net programs now will give governments new tools to address not just the current crisis, but future ones as well.

In May, the World Bank launched a $1.2 billion rapid financing facility to help poor countries cope with the food crisis. Since then, around US$850 million has been committed to finance seeds, plantings, and feeding programs. In April, Zoellick called for a New Deal for Global Food Policy that included short, medium and long-term measures to provide immediate help to poor people and farmers while increasing food production.

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For more information on the Bank's work in nutrition, please visit: www.worldbank.org/nutrition

and for more on social safety nets, click here: www.worldbank.org/safetynets

The project OSE Modernization & Systems Rehabilitation Project APL-2 has changed to Closed

2008-08-29T04:00:00.000Z

The project OSE Modernization & Systems Rehabilitation Project APL-2 has changed to Closed. To see more information, see the project information in the World Bank project database

The Development Objective of the Second Phase (APL-2) of the OSE Modernization & Systems Rehabilitation Project of Uruguay is to ensure Uruguayans receive more accountable, customer orientated and better value for money, water and sanitation services. The Project has 4 components. Component 1 will support National Water Supply and Sanitation Company (OSE's) institutional renewal through institutional modernization; technological updates and optimization of organizational processes; and investments in regional infrastructure. Component 2 will improve the reliability of OSE's water supply system by finalizing the rehabilitation of the Aguas Corrientes water treatment plant and rolling out an extensive unaccounted for water reduction program. Component 3 will continue the demand driven expansion of the sewerage system, whilst developing strategies to enhance household connections to the existing network. Component 4 will support project management; supervision and engineering support; staff exchanges and seminars; and audits.

The project UY Institutions Building TAL has changed to Closed

2008-08-29T04:00:00.000Z

The project UY Institutions Building TAL has changed to Closed. To see more information, see the project information in the World Bank project database

The Uruguay Institutions Building Technical Assistance Project aims to improve the Borrower's public sector performance by: (i) supporting its public sector modernization program in the areas of customs administration, monitoring and evaluation, performance-based budgeting, and e-government; and (ii) strengthening its institutions involved with the design and implementation of public policy reforms in the areas of taxation. Promotion of the business environment and social protection. The project includes the following components: strengthening customs administration's human resources management; improving institutional planning, monitoring, and evaluation; e-government; support to Banco de Prevision Social (BPS) for institutional strengthening and implementation of tax and social protection reforms; support for capital markets and corporate transparency reforms; support for bankruptcy regulation reforms, and project coordination and strategy development.

The project UY Promoting Innovation to Enhance Competitiveness has changed to Closed

2008-08-29T04:00:00.000Z

The project UY Promoting Innovation to Enhance Competitiveness has changed to Closed. To see more information, see the project information in the World Bank project database

The project development objective is to strengthen Uruguay's capacity to generate, transfer and adapt knowledge and technology by supporting: (i) the institutional framework for science, technology, and innovation (STI); (ii) investments in human capital and high-quality research teams; (iii) technology transfer and private sector innovation; and (iv) cross-sectoral and international research collaboration and mobility of researchers between public institutions and the productive sector. There are 3 components. Component one is to support STI policies and institutional strengthening .and will help establish a coherent policy framework for science, technology, and innovation (STI); consolidate and improve existing policies and programs; develop a strong monitoring and evaluation capacity; and raise awareness of STI among stakeholders. It will achieve the above through three subcomponents: (i) support the development of public STI policies; (ii) support the National Research and Innovation Agency; and (iii) set up and support the STI Observatory. Component two is to build human capital and high-quality research teams and will strengthen the capacity to develop new knowledge by: (i) promoting excellence in science and technology research in priority areas; (ii) increasing the stock of advanced human capital and ensuring the early integration of young researchers in research networks and the private sector; and (iii) strengthening priority technical tertiary education programs. Component three will promote innovation and technology transfer to the productive sector and will: (i) seek to introduce new instruments to promote technology transfer and accelerate the adaptation of new technologies and innovations by firms in key clusters; and (ii) promote high impact innovations by fostering new collaborations between the productive sector and knowledge institutions such as universities and research centers.

The project First Programmatic Reform Implementation DPL has changed to Closed

2008-06-01T04:00:00.000Z

The project First Programmatic Reform Implementation DPL has changed to Closed. To see more information, see the project information in the World Bank project database

The proposed Programmatic Reform Implementation Development Policy Loan (PRIDPL I) to the Oriental Republic of Uruguay is the first of two operations to support implementation of priority economic and social sector reforms as determined by the government. The loan is the second DPL under the FY05-FY10 Country Assistance Strategy (Report No. 31804-UY). The first DPL was the Social Program Development Policy Loan (SPDPL) approved in June 2005 with the CAS. The amount of the Loan is to be disbursed in a single tranche upon effectiveness. In line with priorities set by the government, the PRIDPL I would support the implementation o f reforms in three key areas: (i) tax reform; (ii) the business climate and capital markets; and (iii) the social protection system where the loan builds on the achievements o f the SPDPL.

Uruguay: First Bond Transaction to Provide World Bank Financing in Local Currency

2008-05-28T19:31:09.000Z

Contacts:
Sergio Jellinek +1 (202) 294-6232
sjellinek@worldbank.org

In Montevideo: Valeria Bolla (598-2) 916-9400

vbolla@worldbank.org

MONTEVIDEO, May 28, 2008 — The World Bank (International Bank for Reconstruction and Development, IBRD) today became the first foreign issuer to launch a public bond in Uruguayan Pesos. The World Bank will pass the proceeds on to the Uruguayan Government. This is the first time the World Bank is providing local currency financing to a member country by directly funding in that country’s own currency.

This bond represents an important milestone for the World Bank and its clients. Although the World Bank has issued bonds in other Latin American currencies such as Mexican Peso, Chilean Peso, Brazilian Reais, and Colombian Pesos, this Uruguayan Peso transaction is the first bond ever to be issued for the purpose of a back-to-back disbursement of a specific loan, in this case the First Programmatic Reform Implementation Development Policy Loan (PRIDPL 1), approved by the World Bank’s Executive Board of Directors in May 2007.

This loan supports the implementation of reforms that will help Uruguay to strengthen capital markets, achieve sustainable growth at higher rates, fight poverty and exclusion, and assure equitable access to opportunities.

“Today’s transaction with the World Bank is significant for Uruguay and is an important step towards de-dollarization of our debt portfolio,” said Danilo Astori, Minister of Economy and Finance of Uruguay. “Over the last few years, the government has pursued a path of increasing the percentage of local currency debt through issuance of index-linked notes in the capital markets. Incorporating the multilateral development banks in our strategy of de-dollarization is a highpoint and opens a new range of alternatives available to us to continue with the professional management of our financial obligations.”

The bond, an Uruguayan Peso (UYU) 1,981.53 million (USD $100 million) inflation-indexed Euronote, will carry a coupon of 3.4% and will mature on April 15, 2017. These bonds are linked to the Uruguayan inflation index Unidades Indexadas (UI), a widely used index for financial transactions in Uruguay. The bond issue was very well received by both domestic and international investors. The transaction was oversubscribed, with demand reaching three times the fixed notional amount on offer. Domestic institutional investors purchased around 75 % of the issue; the remaining 25 % was placed among investors in Europe (7%) and North America (18%). The lead interest from the domestic investor base was from República AFAP (RAFAP), Uruguay's largest pension fund.

“This investment is a milestone in the development of the Uruguayan Pension Fund System since this is the first triple-A investment denominated in local currency which contributes towards diversifying credit risk of our portfolios,” said Martín Larzabal, Portfolio Manager of República AFAP. “This transaction also plays an important role in helping the government to limit its exposure to foreign currencies by hedging the disbursement in Uruguayan pesos of a World Bank loan to the country."

Deutsche Bank was the sole arranger of this transaction.

Zia Huque, Global Head of Syndicate at Deutsche Bank, commented "as the first-ever foreign issuer of an inflation-linked benchmark in Uruguayan Pesos, the deal illustrates that the World Bank continues to be a market leader in innovative emerging markets bond issuance. The strong global interest resulted in a very successful landmark offering, which met both investors' needs and the World Bank's own high standards for issuance. Deutsche Bank's commitment to emerging markets is well established and we're honored to bring this expertise to working with the World Bank and the investment community to expand further IBRD's development mandate."

The transaction is part of the World Bank’s ongoing efforts to respond to requests from its borrowing member countries to provide local currency financing so they can reduce their vulnerability to foreign currency debt. This operation will also contribute to a diversification of Uruguay’s pension funds and will help generate greater international awareness about the potential of the country’s capital markets.

This Uruguayan Peso bond issued by the World Bank is also an important transaction for the Uruguayan capital market, since it highlights the level of development in terms of depth, breadth and liquidity attained by the local capital market.

According to Kenneth Lay, Vice-President and Treasurer of the World Bank, “this transaction is another way for our development cooperative to respond to the needs of its members. A number of our clients are interested in increasing the share of local currency financing in their public debt. We are pleased that this issue facilitates that process.”

The transaction also reflects the advances made in the process of institutionalization of savings through key regulatory changes that have expanded the investor base, increased the efficiency of investment vehicles, and enhanced investor confidence. In addition, the World Bank bonds provide domestic investors with an opportunity to diversify their portfolio holdings.

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New report on economic growth offers lessons on achieving sustained, high economic growth

2008-05-21T17:11:32.000Z

Contacts:

In Washington:

Maya Brahmam at +1-202-473-6231 or email at mbrahmam@worldbank.org

WASHINGTON, May 20, 2008 – The World Bank Group welcomes a new report by the independent Commission on Growth and Development, a global panel of eminent experts, which reveals important lessons from countries that have achieved high, long-term economic growth. The experts say the lessons learned could help policy makers in developing countries as they seek to set their countries on a steady growth path.

The Growth Report: Strategies for Sustained Growth and Inclusive Development says integration into the world economy, maintaining high rates of savings and investment, and committed, capable governments are among the key features of countries that have sustained growth rates above 7 percent for 25 uninterrupted years since World War II.

"This report underscores to the development community that one size doesn’t fit all." said World Bank Group President Robert B. Zoellick. I am especially pleased that it draws on input from first class practitioners and leaders who have hands-on pragmatic and practical experience of making inclusive development a success. This will help enrich the thinking and practice of the World Bank Group as well as others in the development field.” “

High, long-lasting growth is not easily achieved, but the report by some of the world’s top policy-makers and thinkers, believes it can be reproduced in developing countries, giving them a chance to reduce poverty and improve opportunity and quality of life for their citizens.

“We are acutely aware that there are no silver bullets to create long-running, inclusive growth, and that no single paradigm exists,” says Commission Vice Chair Danny Leipziger, who is also Vice President for Poverty Reduction and Economic Management at the World Bank. “While seeking to identify those key elements that can lead to long running and inclusive growth, the report is clear that policy makers will need to customize and experiment with polices rather than follow any rigid set of guidelines.”

Commission Chairman Michael Spence said: " What makes the report so unique is that it was prepared by policymakers, many from developing countries, who have been in the trenches themselves and have learned what works and why. It is these commissioners who are now providing their insights to the next generation of policymakers on ways to improve growth prospects and the quality of life in the poor parts of the globe."

Spence is one of two Nobel Laureates on the 21-member commission comprising leaders from business, government and academia. The Commissioners come from 18 countries that include a broad mix of developing, emerging and developed economies, as well as small island states and populous, large countries.

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To download full report click here:

http://www.growthcommission.org/

World Bank Broadens Transport Agenda

2008-05-21T17:00:00.000Z

Contacts
In Washington:
Roger Morier (202) 473 5675, rmorier@worldbank.org
Anna Piasecka (202) 458 7027, apiasecka@worldbank.org

WASHINGTON, D.C., May 21, 2008 – The World Bank Group today launched a new transport business strategy for 2008-2012 that will help partner countries establish the governance, strategies, policies and services to deliver transport for development in a way that is economically, financially, environmentally and socially sustainable.

Called Safe, Clean, and Affordable… Transport for Development, the business strategy strengthens the alignment of the transport sector approach with the Millennium Development Goals adopted by the United Nations in 2000. At the same time, it widens the directions and deepens the routes that will be taken to meet the evolving development agenda. It gives more attention to emerging trends, such as trade globalization, urbanization of populations; rising concerns about climate change, the increase in traffic congestion; and the recognition of access as a key to both economic opportunity and good governance.

“In striving to achieve its development objectives—and foremost to eradicate poverty—the World Bank Group is mobilizing the transport sector to the fullest possible extent,” said Katherine Sierra, World Bank Vice President for Sustainable Development. ”To that end, the transport business strategy aligns Bank Group instruments along a few key strategic directions that will pave the way to truly sustainable development, one where transport plays a crucial role.”

“In a world with rising levels of greenhouse gases, poor road safety, and the too-frequent spread of communicable diseases along international routes, transport must be looked at anew. A coherent way forward requires innovative thinking and cooperation among sectors to optimize the role of transport without jeopardizing personal and commercial mobility.”

The Bank Group consulted widely in preparing its new business strategy, seeking contributions from over 75 transport development partners, governments, professional institutions, civil society organizations, multilateral and bilateral donors, and putting an early draft on its external website for four months to elicit public comments.

Safe Transport
Acknowledging the importance of transport for achieving public health outcomes within the Millennium Development Goals, the strategy stresses the need to mitigate the spread of HIV/AIDS, and to address safety in all transport modes, especially road transport. It also addresses the safety issue in air transport which, although globally much safer, still shows a safety record significantly affecting growth and investment prospects in some regions, in particular Sub-Saharan Africa. Transport and supply-chain security has also become a major issue in ensuring fair access of developing country exports to developed markets, and needs to be addressed as a new global public good.

“Road crashes kill an estimated 1.2 million people a year and injure 50 million more, disproportionately affecting the poor,” said Anthony Bliss, Lead Road Safety Specialist, Program Coordinator for the World Bank’s Global Road Safety Facility. “We are placing special emphasis on road safety, extending our support to include not only road safety components embedded in road infrastructure projects, but also larger stand-alone projects to formulate national policies and strategies that would improve road safety across the board. We will also pursue cross-sectoral approaches, such as including pre-hospital components in road programs and road safety components in health programs.”

Clean Transport
Urban air pollution, 90 percent of it generated by motor vehicles, kills an estimated 800,000 people each year. Transport now produces approximately 15 percent of global greenhouse gas emissions. Reflecting the contribution of transport to the wider environmental aims of the Millennium Development Goals, the strategy encompasses the transport-energy-environment nexus, from the energy consumption to the emissions and climate change impact perspectives. Going forward, the World Bank Group will be working to help restrain transport energy consumption. It will be assessing and controlling transport projects emissions, favoring shifts to low carbon modes.

“We are setting guidelines for environmentally effective transport planning and decision making,” said Jamal Saghir, Director, Energy, Transport and Water Department and Chair of the Transport Sector Board. “We are seeking ways to mitigate the effects of transport on the climate—and the effects of climate change on transport asset. We intend to build climate change issues into transport project appraisals where appropriate.”

Affordable Transport
An estimated 1 billion people in low-income countries lack access to an all-weather road. Affordable transport can enhance mobility and inclusion. It can promote social, economic, and political integration, by keeping a country together despite geographic disparities, by overcoming potential disputes over access to resources, and by defusing the seeds of conflict that sometimes arise from feelings of isolation.

Marc Juhel, Sector Manager for Transport stressed the fact that affordability concerns not only the rural and urban poor, but also the whole freight economy, aiming at improving competitiveness to foster stronger economic growth:

“The strategy stresses the need for better knowledge and control of transport costs, for both passengers and freight, on domestic and regional, urban and rural settings. The implementation of an effective urban transport strategy, reaching out to the growing urban poor population, is a key element of this approach. On the freight side, the cooperative work on trade and transport facilitation—in particular on customs and transit issues—will be strengthened.”

World Bank contribution to transport over previous decade
Since the Bank’s 1996 transport strategy, Sustainable Transport, was endorsed by the World Bank’s Board of Directors, the Bank Group has committed around US$42 billion for more than 530 dedicated transport operations and transport components in over 500 non-transport specific projects in more than 100 client countries. Lending in fiscal year 2007 (July 1, 2006 – June 30, 2007) reached over US$5 billion, amounting to 20 percent of World Bank Group new annual commitments.

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View the transport business strategy—Safe, Clean, and Affordable… Transport for Development at: http://www.worldbank.org/transport

The project UY Non Communicable Diseases Prevention Project has changed to Closed

2008-05-09T04:00:00.000Z

The project UY Non Communicable Diseases Prevention Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Uruguay Second Health Sector Development Project aims to support the Government's efforts to further strengthen its health delivery services and the current health policy framework for non-communicable diseases (NCDs). In this context, the specific development objectives of the proposed operation would be: (i) to expand accessibility and quality of primary health care services related to selected NCD's early detection and medical care; and (ii) to avoid and reduce exposure to selected NCD risk factors as well as their health effects. The project includes the following components: 1) strengthening of the Ministry of Public Health's capacity to address the country's changing epidemiological profile primary care facilities component; 2) improve accessibility to quality care services for prevalent NCDs in public component; 3) implementation of the previniendo pilot program component; and 4) project management.

World Bank Group President Appoints Vice President of Institutional Integrity

2008-05-05T18:00:00.000Z

Contacts:
In Washington: Carl Hanlon (202) 473 8087
chanlon@worldbank.org

WASHINGTON, D.C. May 5, 2008 – World Bank Group President Robert B. Zoellick has named South African Leonard McCarthy to head the Bank’s Department of Institutional Integrity (INT). McCarthy has earned international recognition for investigations and prosecutions of individuals engaged in corruption as head of South Africa’s Directorate of Special Operations.

“Leonard McCarthy is recognized worldwide for his integrity, independence, and effectiveness in fighting corruption and strengthening good governance,” says Zoellick. “This is the first time that the Department of Institutional Integrity will be headed at the level of Vice President, and McCarthy brings to the post stature, skill, and tested experience. This post is critical for our work, reputation, and fiduciary duty. I am confident that he will bring effective leadership to our highest obligation to protect the Bank’s assets and hold people, businesses, and governments responsible if they steal from the poor.”

McCarthy’s work with South Africa's National Prosecuting Authority has included investigating and prosecuting high profile cases of financial crime, organized crime, and high-level corruption. He has worked closely with African governments and law enforcement officials across the globe to expose and prosecute transnational financial crime. McCarthy was formerly a Director of Public Prosecutions appointed by President Nelson Mandela.

An experienced trial lawyer, he has held numerous positions in government, including Investigating Director in the Office for Serious Economic Offenses, Deputy Attorney General in Cape Province and Senior Public Prosecutor. He holds a Bachelor of Laws Degree from the University of South Africa in Cape Town.

Following talks with the South African government, President Mbeki has agreed to release McCarthy from service, to take up the position at the World Bank on June 30, 2008.

“I am honored to receive this appointment and to be joining the World Bank, I believe strongly in its vision, said McCarthy. “President Zoellick has made clear to me the strong emphasis he places on INT’s role, its need for strong, highly skilled people who will both pursue investigations and integrate anti-corruption work into Bank projects across the world. I am committed to delivering results and building on INT’s work to strengthen financial due diligence and ensure that precious development resources benefit people who need them most.”

McCarthy was selected from a list of candidates assessed by an internal search committee with the addition of former Federal Reserve Chairman Paul Volcker, who led a review of INT last year. In his report Volcker called for greater attention to protect against corruption in designing and implementing Bank programs.

Mr. Volcker has welcomed the fact that: “the Bank is now implementing the recommendations of the Panel he chaired, importantly including elevating the head of INT to the level of vice president.”

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World Bank Marks World Press Freedom Day with Study on Broadcasting and Development

2008-05-02T12:30:00.000Z

Contact:

In Washington: Christopher Neal, (202) 473-2049

Cneal1@worldbank.org

MAPUTO, May 2, 2008—The World Bank marked World Press Freedom Day by launching a study outlining conditions under which radio, television and online broadcasting can fulfil a vital role in development by making governments accountable, and giving voice to the world’s poor.

“Huge numbers of people, including those who can’t read, have access to broadcast media,” said Kreszentia Duer, of the World Bank Institute (WBI), who presented the study, Broadcasting, Voice and Accountability, at a conference here on freedom of expression hosted by UNESCO. “In countries with strong oral traditions, community broadcasting can enable people to share information and raise issues with a large audience, and hold government officials to account. This makes broadcasting a powerful tool for enhancing governance and promoting development.”

The 400-page study, subtitled A Public Interest Approach to Policy, Law and Regulation, is the result of five years of research by six media experts, including Ms. Duer, Steve Buckley, president of the World Association of Community Broadcasters; Toby Mendel, ARTICLE 19, Global Campaign for Free Expression; Seán Ó Siochrú, founder of the Campaign for Communication Rights in the Information Society; Monroe E. Price, of the Annenberg School for Communication at the University of Pennsylvania; and Marc Raboy, of Canada’s McGill University.

The study reviews broadcasting practices and regulations around the world, and identifies those which produce an “enabling environment” for broadcasting that is free, independent and pluralistic. These characteristics are essential, the report says, for broadcasting to perform an effective role in giving people voice, and ensuring government accountability.

Drawing from their research, the authors propose standards on freedom of expression, access to information, use and misuses of defamation law, content rules and limits to free speech, and the regulation of journalists. The study also offers guidelines on best practice for broadcast regulators, as well as the respective roles of public service, community non-profit, and commercial private sector broadcasters, all of which, it argues, should be present in a healthy media environment.

Co-author Steve Buckley notes that increased movement towards democracy in developing countries opens the way to build broadcasting that serves the public interest.

“Countries that are opening their economies, democratizing, and decentralizing public service delivery are looking for guidance on how to involve citizens in decisions that affect them,” he said. “Broadcasting, enabled by the right regulation and conditions, can empower groups through bottom-up participation.”

The book cites countries that have developed systems to enhance the quality and diversity of media content, while fully respecting freedom of expression, and identifies ways in which government regulation can expand access to broadcast media. Community broadcasting, for example, can be encouraged through special licensing arrangements that guarantee fair and equitable access to radio frequencies and financial support.

“This book focuses on useful proactive approaches to setting up, sustaining, and governing broadcasting systems across the world,” said Ruth Teer-Tomaselli, UNESCO Chair in Communication for Southern Africa at the University of KwaZulu-Natal. “It’s based on sound scholarship and provides practical advice for policymakers, media scholars and broadcasters alike.”

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For more information, please visit:

http://web.worldbank.org/WBSITE/EXTERNAL/WBI/0,,contentMDK:21747844~pagePK:209023~piPK:207535~theSitePK:213799,00.html

To order: http://publications.worldbank.org/ecommerce/catalog/product?item_id=8100893

World Bank President Calls for Plan to Fight Hunger in Pre-Spring Meetings Address

2008-04-02T15:53:10.000Z

April 2, 2008—In a speech today, World Bank President Robert B. Zoellick called for a "new deal" to combat world hunger and malnutrition through a combination of emergency aid and long-term efforts to boost agricultural productivity in developing countries.

The "New Deal for a Global Food Policy" is part of a suite of initiatives Zoellick outlined to advance development in the face of skyrocketing food and oil prices. He also called for a global trade deal to be agreed as soon as possible, detailed an initiative to help countries manage their wealth earned from high energy and mineral prices in a more inclusive way, and encouraged sovereign wealth funds to create a "One Percent Solution" for equity investment in Africa.

Agricultural Assistance

The World Bank will nearly double agricultural assistance to US$800 million in Africa. Zoellick also urged wealthy nations to help the UN’s World Food Program meet some $500 million in emergency food needs.

"The United States, the European Union, Japan and other OECD countries must act now to fill this gap – or many more people will suffer and starve," Zoellick said in an address sponsored by the Center for Global Development in Washington.

Zoellick said the "New Deal for a Global Food Policy" is needed to combat the "forgotten" Millennium Development Goal of overcoming malnutrition. Only about a tenth of the resources directed at HIV/AIDS goes to fight malnutrition, which causes 3.5 million deaths a year in children under 5 and has long-lasting impacts on health and achievement.

"Hunger and malnutrition are a cause, not just a result, of poverty," said Zoellick.

The World Bank estimates 33 countries face social unrest because of soaring food and energy prices.

The New Deal requires a shift from traditional food aid to a broader concept of food and nutrition assistance, such as cash or vouchers that can help build local food markets and farm production,.and create a "Green Revolution" for Sub-Saharan Africa, said Zoellick.

"This New Deal should focus not only on hunger and nutrition, access to food and its supply, but also the interconnections with energy, yields, climate change, investment, the marginalization of women and others, and economic resiliency and growth," said Zoellick.

"Food policy needs to gain the attention of the highest political levels, because no one country or group can meet these interconnected challenges."

Zoellick said the World Bank Group can help by:

Backing emergency measures that support the poor while encouraging incentives to produce and harvest food
Offering access to technology and science to boost yields
Helping countries counter weather-related risks, such as drought
Facilitating land-titling, local currency financing, working capital, distribution and logistics, and support for services on which farmers rely

"Income gains in agriculture have three times the power in overcoming poverty than increases in other sectors, and 75 percent of the world’s poor are rural, with most involved in farming," said Zoellick.

Trade Also Key to Lower Food Prices

Zoellick said the time was "now or never" to break the impasse in global trade talks. A "fairer and more open trading system" would encourage developing country farmers to expand production, he said.

"The poor need lower food prices now. But the world’s agricultural trading system is stuck in the past. If ever there was a time to cut distorting agricultural subsidies and open markets for food imports, it must be now."

An accord would give developing countries, big and small, more opportunities to become more productive and lower prices through trade. It would also infuse confidence in an economic system stressed by financial anxiety, he said.

However, "powerful voices across the political spectrum, including in my own country, are calling for, rationalizing, protectionism," Zoellick said. "This economic isolationism signals a defeatism that will reap the losses, not the gains, of globalization."

The trade talks are also a "critical test" for striking a global deal on climate change. "If negotiators of 150 economies cannot manage the political tradeoffs of the Doha Round to reap the clear benefits, it does not auger well for bringing developed and developing countries together on a new accord for climate change."

Sovereign Wealth Funds

Zoellick also outlined a plan to encourage emerging economies such as China, India and Brazil to invest about US$30 billion in African nations through government-sponsored wealth funds.

Such sovereign wealth funds currently hold about US$3 trillion in assets. They have come under scrutiny recently because of investments outside their own countries. Zoellick noted they need transparency and should be guided by best practices to avoid politicization, but "where some see sovereign funds as a source of concern, we see opportunity," said Zoellick.

The World Bank’s "One Percent Solution" involves creating the equity investment platforms and benchmarks to attract these investors, and allocating 1 percent of the assets to African growth, development and opportunity.

"This one percent could be the start of something much bigger, across more types of funds and countries, because the investment of wealth into equity for development offers opportunity, not something to fear."

Extractive Industries Initiative

Zoellick announced a new approach to help ensure that high energy and commodity prices translate into improvements in the lives of the poor.

The EITI++ builds on the transparency and good governance concepts of the existing multi-stakeholder Extractive Industries Transparency Initiative (EITI). EITI publicizes and verifies company payments and government revenues from oil, gas and mining. But many governments are emphasizing that transparent revenue reporting, while important, is not enough. The World Bank is therefore working with developing countries and other partners to frame a "comprehensive approach to supplement the original project."

EITI++ will include providing technical assistance to countries on the awarding of contracts, monitoring operations, collecting taxes, improving resource extraction and economic decisions, better managing price volatility, and investing revenues effectively in sustainable development.

An EITI++ approach will be launched in Guinea. "The successful development of Guinea’s rich resources can strengthen sustainable development for the entire region," Zoellick said.

"The EITI++ can advance inclusive and sustainable globalization by broadening the beneficiaries of resource development."

The project UY Power Sector Interconnection Project has changed to Dropped

2008-03-20T04:00:00.000Z

The project UY Power Sector Interconnection Project has changed to Dropped. To see more information, see the project information in the World Bank project database

The project UY Foundations for Statistical Development is now in the pipeline.

2007-10-27T04:00:00.000Z

The project UY Foundations for Statistical Development is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Uruguay Structural Adjustment Loan (PREM) is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Uruguay Structural Adjustment Loan (PREM) is now in the pipeline. To see more information, see the project information in the World Bank project database

The Structural Adjustment Loan (SAL) and Special Structural Adjustment Loan (SSAL) Projects are intended to help Ururguay withstand the large external shocks that have been affecting its economy over the past three years and to advance the Government's structural adjustment program. Policy conditionality covers fiscal and debt sustainability issues, including reduction in public expenditures, particularly the wage bill; increasing the tax on wages and pensions; and curtailing wage benefits in the public enterprises. It also covers reform of the public mortgage bank (BHU), including changing its organic chart to limit its lending activity to housing finance to individuals and only insofar as it can sell these mortgages to the private sector; allowing only deposits for "ahorro previo"; and prohibiting BHU to build; a thorough internal restructuring of the institution to fit its new functions; improving supervision of the public banks; and developing the market for mortgage-backed securities. policy conditionality also covers social protection measures, including developing a mechanism for cross-checking eligibility of beneficiaries of various social protection programs to enhance their efficiency and effectiveness; protection of social programs that attend poor children; and reform of the unemployment insurance system to improve its operation and expand its coverage. The loans will be carried out in close coordination with the IMF and the InterAmerican Development Bank.

The project Coastal Contamination - Fish Project is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Coastal Contamination - Fish Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Financial Sector Adjustment Loan Project is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Financial Sector Adjustment Loan Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Maritime Management Project is now in the pipeline.

2007-10-25T04:00:00.000Z

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

The project OSE Modernization and Systems Rehabilitation is now in the pipeline.

2007-10-25T04:00:00.000Z

The project OSE Modernization and Systems Rehabilitation is now in the pipeline. To see more information, see the project information in the World Bank project database

The OSE (the National Water and Sanitation Company) Modernization and Systems Rehabilitation Program Project for Uruguay aims to increase the efficiency, coverage, and sustainability of water supply and sanitation services. The project has three main components. Component 1 encompasses the following five sub-components which improve OSE's responsiveness to its customers: internal benchmarking, decentralization, modernization of management, environmental capacity building, and strategy development for service provision. Component 2 has three sub-components: 1) the expansion and rehabilitation of a treatment plant, which enhances the sustainability of Montevideo's water supply; 2) the Unaccounted-for Water (UFW) Reduction Program which increases the sustainability of water supply investments in the interior; and 3) the Small Town Water Supply Program which extends coverage to beneficiaries who do not currently have piped water. Component 3 supports expansions in sewage collection and increases in treatment under three sub-components: 1) a national sanitation master plan which reviews existing arrangements for financing, operating, and prioritizing sanitation investments; 2) a sewerage extensions program which helps OSE to pilot a new demand-responsive approach to expanding existing systems that improves investment targeting and cost-recovery; and 3) a sub-component providing investment financing to increase appropriate sewage treatment and disposal in the interior.

The project Transport Infrastructure Maintenance and Rural Access is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Transport Infrastructure Maintenance and Rural Access is now in the pipeline. To see more information, see the project information in the World Bank project database

The Transport Infrastructure Maintenance and Rural Access Project development objective is to upgrade the country's transport infrastructure to a condition that facilitates the transportation of freight and passengers, at a cost-efficient level of service. The first component - Transport infrastructure rehabilitation - entails reinforcement, replacement, and rehabilitation works, subdivided into three subcomponents: A) route management by the Direccion Nacional de Vialidad (DNV) or the National Highways Directorate; B) management of roads and bridges by the National Road Corporation - CVU; and, C) rehabilitation of the transfer terminal rehabilitation. Component 2 - Road rehabilitation and maintenance contracting - CREMA contracts - and contingencies, will implement the rehabilitation and maintenance works in six road sub-networks covering an estimated 981 km of national roads through performance-based CREMA contracts. Component 3 - Departmental road rehabilitation and maintenance, and contingencies, includes selected annual departmental road rehabilitation and maintenance sub-projects. The fourth component - Transport infrastructure safety program - aims at implementing low-cost measures and investments to increase road safety, and, the fifth component - Transport sector management and institutional building will provide technical assistance to enhance transport infrastructure management.