Fiscal 2001 Highlights ■ IBRD and IDA lending commitments increased to $17.3 billion, reflecting higher lending by IDA (the Bank’s concessional lending arm). Fiscal 2001 was the first time in 10 years that IDA lending to Africa reached 50 percent of total IDA lend ing, a target set by IDA donors.
set out in the Country Assistance Strategy. The Bank recognized the need to strengthen its economic and sector work, particularly in public expenditure, procurement and financial management, and structural constraints to poverty reduction.
■ This new model has been ■ Intense efforts to sustain gains in project quality continued into fiscal 2001. At year-end, only 12 percent of Bank-financed projects under implementation were at risk of not achieving their development objectives, compared with 29 percent five years earlier.
■ The Bank formalized its results-focused country business model, which is grounded in the country’s own vision of development and in diagnostic work on the priorities and constraints for change, and
put into practice first in lowincome countries. Thirty-two of these countries articulated their vision in Full and Interim Poverty Reduction Strategy Papers (PRSPs), accompanied by Bank–IMF Joint Staff Assessments. The Bank introduced Poverty Reduction Support Credits (PRSCs) to help low-income countries implement policy and institutional reforms drawn from their PRSPs. The first two PRSCs were approved for Uganda and Vietnam.
■ Sixteen countries qualified
■ A clear consensus emerged
for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative in fiscal 2001, more than double the number in fiscal 2000. As of June 30, 2001, a total of 23 countries were receiving debt relief totaling $34 billion in nominal terms, from all creditors.
from extensive consultations that the Bank can play a crucial role in middleincome countries, home to nearly 80 percent of the world’s poor living on less than $2 a day. A Bank Group task force called for analytical and advisory support as well as financial support that crowds in private capital, with private sector engagement through the IFC and MIGA.
■ With country and global partners, the Bank intensified its fight against HIV/AIDS. Seven countries have begun to benefit from the Multi-Country HIV/AIDS Program for Africa, under which the Bank earmarked an initial $500 million on IDA terms to support countries’ programs. In addition, the Bank approved the first two operations of a $155 million HIV/AIDS initiative for Caribbean countries.
■ A new Strategic Framework for fiscal 2001–03 set out the twin pillars of Bank support to countries: strengthening the investment climate and investing in the poor. The past year’s momentum achieved by global and national actors in agreeing on development goals, and on the respective responsibilities of rich and developing countries, will provide a key driving force for Bank assistance.
IBRD and IDA Lending: New Approvals in Fiscal 2001 Share of Total Lending of $17.3 billion
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Copyright © 2001 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, USA All rights reserved Manufactured in the United States of America
By Region
By Sector Note: See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, oil and gas, and mining.
The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. ISSN 0252-2942 ISBN 0-8213-4971-6
Editor Manorama Gotur, Office of the Vice President, External Affairs, World Bank Assistant to the Editor Nisha Chatani, Office of the Vice President, External Affairs, World Bank Design and Art Direction Patricia Hord, Patricia Hord.Graphik Design Production Cindy A. Fisher, Office of the Publisher, External Affairs, World Bank Susan Graham, Office of the Publisher, External Affairs, World Bank Brenda Mejia, Office of the Publisher, External Affairs, World Bank Project Assistants Zero Akyol, Office of the Vice President, External Affairs, World Bank Robert Reese, Office of the Vice President, External Affairs, World Bank Editorial Consultant Alison Peña Typesetting Patricia Hord.Graphik Design
Photo Credits cover photo, UNICEF/HQ93-0076/Roger Lemoyne page 1, World Bank/Michele Iannacci page 2, Government of Andhra Pradesh, India page 6, World Bank Photo Library/Curt Carnemark page 10, World Bank/Thanit Thangpgijaigul page 14, Rumiana Toneva page 14, World Bank Photo Library/Kay Cernush page 15, Richard Lord page 15, World Bank/Federica dal Bono page 15, Dirección General de Puertos, Ministerio de Obras y Servicios Públicos de la Nación page 27, Secretariat of Health of Mexico page 29, Enock Kakande page 37, Breton Littlehales page 41, UNICEF/HQ93-0076/Roger Lemoyne page 42, World Bank Photo Library/Curt Carnemark page 46, World Bank/Carolyn Winter page 48, Pan American Health Organization/Dana Downie page 49, World Bank Photo Library/Curt Carnemark page 52, World Bank/Robert Grossman page 56, Jorge Lima page 59, World Bank/Maria Dakolias page 61, Chris Warde-Jones page 66, UNICEF/HQ96-1398/Giacomo Pirozzi page 67, UNICEF/HQ93-1894/Giacomo Pirozzi page 71, World Bank Photo Library/Curt Carnemark page 72, World Bank-Jakarta, Indonesia page 76, World Bank/Zita Lichtenberg page 78, World Bank/Reidar Kvam page 81, Hakob Berberyan page 83, Tatiana Craciun page 87, Nazira Scaffi page 88, World Bank/Ximena Traa-Valarezo page 92, World Bank Photo Files page 93, World Bank/Laura O'Connor page 127, World Bank/Michele Iannacci
A 32-foot-high HIV/AIDS ribbon marks World AIDS Day in December 2000 at World Bank Headquarters.
Poverty remains a global problem of huge proportions. Nearly half of the world’s 6 billion people live on less than $2 a day; about a fifth live on less than $1 a day. Poor people lack opportunity . They lack voice. And they are extremely vulnerable to sickness, violence, and natural disasters. Developed and developing countries, the World Bank, and its partnersin the development community are firmly committed to making a difference, with the full conviction that progress is possible—with concerted action.
About the cover: The World Bank has for several years been the world’s largest external financier of human development programs. In fiscal 2001 the Bank markedly intensified its fight against communicable diseases—to prolong life, improve its quality, and protect development prospects in the world’s poorest countries.
Contents Message from the President Meeting the Poverty Challenge Map of Country Offices and Borrower Eligibility The World Bank Group Financial and Operational Results Cofinancing and Trust Fund Highlights Active Portfolio and Operational Quality Highlights
2 4 12 14 16 20 22
Overview The Board of Executive Directors Thematic Perspectives Regional Perspectives Development Effectiveness Partnerships for Development Project Summaries About the World Bank
25 37 41 63 95 101 107 127
Index List of Boxes, Tables, and Figures Selected World Bank Publications List of Part I and Part II IDA Member Countries World Bank Web Sites Acronyms
157 161 163 164 165 167
Note This is the first of two volumes that will be distributed as a set. The complete Management’s Discussion and Analysis, audited financial statements of the International Bank for Reconstruction and Development, audited financial statements of the International Development Association, and appendixes are published in a separate volume as The World Bank Annual Report 2001: Volume 2, Financial Statements and Appendixes. This Annual Report is also available on the Internet at www.worldbank.org. 8 All dollar amounts used in this Annual Report are current U.S. dollars unless otherwise specified.
Message from the President of the World Bank and Chairman of the Board of Executive Directors
The poverty reduction agenda has advanced significantly over the past year, with development partners coming together as never before. We must now build on that momentum. Progress in reducing poverty remains slow: too many girls still do not go to school; too many children die before the age of five; and too many poor people lack opportunity. The urgency for action is pressing. Nearly half of the world’s people live on less than $2 a day, and their numbers will grow in the next 25 years, as nearly two billion more people are added to developing countries’ populations. The stakes are high, as poverty touches all—and drives prospects for no less than global peace. How can we scale up successes enough to meet the international development goals for 2015? (See page 4.) Only with concerted action can we make a difference. PROGRESS IS EVIDENT…AT THE COUNTRY AND REGIONAL LEVELS… Over the past year, I was privileged to visit India and Africa, which, between them, hold 55 percent of the world’s poor. They offer striking examples of the ways in which societies are transforming. In India’s Andhra Pradesh state, rural women are engaging in open discussions—unthinkable a few years ago—on how to confront the problem of HIV/AIDS. In the same state, e-government has cut the time taken for land registration from six months to 20 minutes. Elsewhere, empowered grassroots communities are successfully implementing the country’s education projects now covering 50 million children. Africa is on the move. On a first-ever joint trip by the heads of the World Bank and the IMF, Horst Köhler and I met with 22 African presidents. We were deeply impressed by their conviction that Africa’s future lies in its own hands, and by their commitment to far-reaching change. Leaders stressed the need to deal with conflict and governance; combat HIV/AIDS; and pursue stronger regional cooperation. Middle-income countries, too, are addressing poverty-related concerns ranging from inequality and governance to urban pollution and rural infrastructure, and are increasingly adopting sound macroeco-
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The World Bank Annual Report 2001
In Hyderabad, India, a group of women peer educators animatedly explain to James D. Wolfensohn their work on HIV/AIDS awareness programs under the Bank-supported National AIDS Control Project.
nomic policies. Developing countries, on average, have begun to enjoy higher per capita growth rates than industrial countries. …AND AT THE GLOBAL LEVEL… A remarkable development of the past year is the unprecedented alignment of partners around a common global development agenda, embodied in the Millennium Declaration adopted by leaders of the world’s nations. Common guiding principles for development partnership, too, as outlined in the Comprehensive Development Framework, have gained growing acceptance—by the United Nations and, most recently, by the Development Committee for application also in middle-income countries. These principles emphasize a comprehensive approach, country ownership, partnership, and a focus on results. Other major steps forward are the European Union’s decision to adopt the Poverty Reduction Strategy Papers approach, as well as growing efforts among all donors to harmonize aid procedures and untie procurement.
…BUT 2015 IS APPROACHING, AND ALL MUST ACT Halving the percentage of those in poverty by 2015 is an immense challenge. Global action is a moral imperative: all have a responsibility. Developing countries need to ensure sound policy and institutional environments and an attractive investment climate. Equally crucial are inclusive policies, to allow the benefits of growth to reach poor people. Donor countries need to remove trade barriers and open their markets. They need to provide debt relief and new concessional finance, multilaterally— foremost through an adequate 13th Replenishment of IDA and funding of the Heavily Indebted Poor Countries (HIPC) Initiative—as well as bilaterally. An increase in aid is crucial, from the present 0.22 percent of gross national income to the 0.7 percent share committed by rich countries. And concerted international efforts must help fight major global problems and strengthen the structures needed to help countries avoid crises and integrate into the global economy. Action and progess, moreover, will need to be built on a solid base of global growth and sound macroeconomic policies. THE WORLD BANK IS COMMITTED TO CONCERTED ACTION Guided by the 2015 poverty goal, we have strengthened the poverty focus of our efforts. This has meant intensified support to the HIPC Initiative, helping 23 of the world’s poorest countries shift about $1 billion from annual debt service to spending on basic social services. It has also meant helping the governments of poor countries take the lead in preparing poverty reduction strategies developed with national consensus, and especially involving civil society and the private sector. The role of business in job creation is crucial; we have expanded our work in microcredit and our support for small and medium enterprises. We have radically transformed the way we do business. A persistent focus on quality has vastly improved the effectiveness of billions of dollars of Bank lending. We are also responding more quickly and flexibly to client needs and have substantially strengthened our knowledge sharing with clients.
We have made partnership—with countries and with other development agencies—intrinsic to all that we do. A key priority is the ongoing initiative for the harmonization of donor policies and procedures to reduce costs for developing countries. And we have stepped up collaborative efforts to address such enormous development challenges as HIV/AIDS, conflict, environmental decline, and the digital divide. These efforts have included innovative support to help Africa fight HIV/AIDS and become more competitive. In fiscal 2001 the Bank articulated a Strategic Framework for action over the next three years. The Framework sets two priorities: strengthening countries’ investment climates, and helping them empower and invest in poor people. It emphasizes selectivity—within and across countries as well as at the global level—and partnership. What counts, ultimately, is impact. Outcomes of individual Bank-financed operations have improved markedly. But achieving the broader impact of an overall Country Assistance Strategy is a long-term endeavor, involving players and factors beyond the control of any one institution. The coming together of the development community on a common set of development goals provides a solid basis for progress. The Bank is committed to action to help realize this vision. I am deeply indebted to my colleagues whose commitment has earned us our position of strength today. I rely on them to take the Bank forward, in concert with our partners. In closing, on behalf of the Board of Directors and Bank staff, I would like to pay tribute to the late Ibrahim Shihata who died on May 28, 2001. As Senior Vice President and General Counsel from 1983 to 1998, Ibrahim was a brilliant lawyer and dedicated officer of this institution (see page 61). History will recognize his landmark contributions to the Bank Group and to the cause of poverty reduction in our client countries.
James D. Wolfensohn
The World Bank Annual Report 2001
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Letter of Transmittal
Meeting the Poverty Challenge: The International Development Goals
Ambitious targets for 2015‌
This Annual Report, which covers the period from July 1, 2000, to June 30, 2001, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) in accordance with the respective bylaws of the two institutions. James D. Wolfensohn, President of the IBRD and IDA, and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. Annual reports for the International Finance Corporation, the Multilateral Investment Guarantee Agency, and the International Centre for Settlement of Investment Disputes are published separately.
People Living on Less Than $1 a Day (percent)
Poverty reduction Reduce the proportion of people living in extreme poverty by half between 1990 and 2015
Net Primary Enrollment Rate (percent)
Universal primary education Enroll all children in primary school by 2015
Ratio of Girls to Boys in Primary and Secondary School (percent)
Gender equality Eliminate gender disparities in primary and secondary education by 2005
Mortality Rate for Children under Age Five Per 1,000 Live Births
Infant and child mortality Reduce infant and child mortality rates by two-thirds between 1990 and 2015
Births Attended by Skilled Health Personnel (percent)
Maternal mortality Reduce maternal mortality ratios by three-quarters between 1990 and 2015
Married Women Using Contraceptives (percent)
Reproductive health Provide access for all who need reproductive health services by 2015
Population access to an Improved Water Source (percent)
Environmentally sustainable development Halve, by 2015, the proportion of people without sustainable access to safe drinking water
More information on the international development goals, including regional and country-level data, is available on a new Web site maintained by the World Bank and its development partners: www.developmentgoals.org. 8 The World Development Indicators, published annually by the World Bank, includes a report on progress toward the goals, and many supporting indicators.
The international development goals set tar-
Incidence of income poverty down 20 percent, but uneven progress The global decline has been driven by progress in China and India. With higher growth in developing countries, the goal can be achieved globally, but at current rates of progress many countries will fall short.
gets for reduction in poverty, improvements in health and education, and protection of the environment. First agreed on at major United Nations (U.N.) conferences in the 1990s, the goals have been adopted by the World Bank, the International Monetary Fund, the members of the Development
Enrollment rates rising slowly
Assistance Committee of the Organisation
Primary school enrollments remain far off track, especially in South Asia and Sub-Saharan Africa. Even countries that have succeeded in bringing more children to school need to worry about the quality of education.
for Economic Co-operation and Development, and many other agencies, as a framework for motivating (and measuring) development progress. Marking an extraordinary consensus reflected in the U.N.
Progress in some regions, but little time left
Millennium Declaration, an expanded set of
Eliminating gender disparities in primary and secondary education is one step toward gender equality and the empowerment of women. Very little time is left before 2005, the target year.
and adopted by the U.N. General Assembly
goals was endorsed by 149 heads of state in September 2000. The ambitious targets for 2015 provide a formidable challenge to the international
Slow progress on average Many countries have significantly cut these rates in the last 10 years, but on current trends no region will achieve these goals.
community. One-fifth of all people live on less than $1 a day. About 10 million children under the age of five died in 1999, most from preventable diseases. Over 500,000 women die each year during pregnancy or childbirth. And about 113 million children
Improved health care needed While data are not sufficient to measure maternal mortality trends, global estimates suggest that over 500,000 women died from causes related to childbirth in 1995. If skilled health personnel attended 90 percent of all births, those numbers could be dramatically reduced.
do not attend primary school. Achieving the goals means lifting more than 300 million out of poverty, preventing more than 55 million infant and child deaths and over 4 million maternal deaths, and providing places for at least 128 million more primary school students by 2015. After 10 years, there are
Rising contraceptive use in most countries But there are large regional differences. In Sub-Saharan Africa, only 26 percent of married women practice contraception. In East Asia, over 75 percent do.
Access to water improving Achieving the 2015 target in Africa, Asia, and Latin America will require providing an additional 1.5 billion people with access to an improved water source.
signs of progress, but many of the goals are not likely to be achieved without renewed— and bold—effort.
Meeting the Poverty Challenge: Progress toward the Goals
…and uneven progress across regions…
PROGRESS TO DATE Substantial progress in poverty reduction has been made in some areas. In the 1990s significant progress was made in reducing income poverty in East Asia before the 1997 financial crisis, and the negative impact of the crisis was partially reversed during the subsequent recovery. The share of people living below $1 per day also declined in Latin America and the Caribbean, and in South Asia, although the number of poor people still increased in South Asia because of population growth. On average, poverty declined in fast-growing countries and increased in countries experiencing stagnation or contraction. PROSPECTS FOR 2015 Projections indicate that, if developing countries’ average per capita gross domestic product (GDP) were to grow at a sustained rate of 3.7 percent (“base case” in the graphs)—higher than the 1990s’ average of 1.8 percent and the 2.3 percent average of the low case used for the graphs—the global incidence of absolute poverty could decline from 23 percent in 1998 to 13 percent in 2015. The number of poor could drop from 1.2 billion to less than 800 million. But many countries, especially in Africa, would still not reach the goal of halving poverty by 2015.
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The World Bank Annual Report 2001
The International Development Goals: A Particular Challenge for Africa ■ Life expectancy decreased, on average, from 50 years in 1987 to 47 years in 1999, largely under the devastating impact of
Progress in Some Regions, Setbacks in Others
HIV/AIDS; in hardest-hit countries such as
Proportion of people living on less than $1 a day (percent)
Botswana, Lesotho, South Africa, and Zimbabwe, life expectancy fell by more than
Sub-Saharan Africa
Europe and Central Asia
10 years. ■ Child mortality increased from 155 per 1,000 in 1990 to 161 per 1,000 in 1999; it declined in all other regions. ■ Health-care systems, weakened by conflict, poor management, and the impact of HIV/AIDS, are finding themselves unable to cope with traditional illnesses, and malaria and tuberculosis continue to kill millions. ■ Gross primary school enrollment rates declined between 1980 and the mid-1990s; nine countries still reported net primar y enrollment rates of less than 50 percent in
East Asia and Pacific
Latin America and the Caribbean
the 1990s, with even lower rates for girls. But breaking the cycle of impoverishment is possible: in countries such as Ethiopia, Ghana, Mauritania, and Uganda, sustained economic recovery and stability have helped reduce poverty and improve living conditions.
South Asia
Source: World Bank. 2001. Global Economic Prospects and the Developing Countries 2001. Washington, D.C.
Middle East and North Africa
Actual poverty reduction Reduction needed to halve poverty by 2015 Poverty reduction with low-case growth Poverty reduction with base-case growth
Meeting the Poverty Challenge: An Agenda for Acti0n
…demand that all partners accept responsibility… The World Bank and the International Development Goals The Bank is weaving the goals into its operations by: ■ Including the goals in country dialogue through the Comprehensive Development
The international development goals reflect an unprecedented consensus of the international community. Shared goals support the effort to increase aid effectiveness through stronger partnership and country leadership.
Framework, Poverty Reduction Strategy Papers, Country Assistance Strategies, and Sector Strategy Papers, and seeking a better alignment between the goals and those strategies. ■ Supporting outcomebased development programs and enhancing statistical and analytical capabilities in many client countries.
A NEW DEVELOPMENT COMPACT The agenda facing developing countries is formidable. Many developing countries already reflect the
goals in their strategies; others have identified specific intermediate measures linked to longer-term poverty reduction outcomes. Pursuing sound domestic policies will be critical to attracting greater resources. Sound macroeconomic policies, strong financial systems, and well-functioning regulatory, legal, and judicial frameworks will enhance the effectiveness of aid and attract more productive private investment.
■ Expanding research on how to increase public sector effectiveness and accelerate progress. ■ Working with partners to harmonize donor support at the country level and cooperating with other donors in a program of global monitoring and reporting.
The responsibility of developed countries stands out even more clearly as developing countries take
full responsibility for their own choices. Key areas for action are summarized below: 1 Dismantling trade barriers is fundamental
Trade barriers in high-income countries cost developing countries over $100 billion a year. Trade restrictions set by the high-income members of the Organisation for Economic Co-operation and Development (OECD) offset the benefit of their aid contributions. (See left figure below.)
The Welfare Costs of Tariffs in 1995
Following the substantial advances made in fiscal 2001, the next challenge is to move forward with implementation of the Heavily Indebted Poor Countries Initiative, in particular in those countries affected by conflict. Securing sustainable financing on appropriately concessional terms will also be important. (See middle figure below.) 3 Now is the time to increase aid
Developing countries’ efforts to improve their policy environments are allowing them to make more effective use of aid. Support from most members of the OECD Development Assistance Committee (DAC) falls well short of the pledged 0.7 percent share of gross national income; so far only Denmark, the Netherlands, Norway, Sweden—and most recently Luxembourg—have met this target. While average DAC contributions declined in 2000, however, aid levels from 15 of 22 DAC members increased over the prior year. (See right figure below.) 4 Simplifying and harmonizing aid procedures will lower the burden on developing countries
Multilateral and bilateral donors, working together, can do much to reduce the costs to developing countries of managing aid programs in areas ranging from strategy and medium-term financing to procurement and evaluation. Recent progress in untying aid and procurement will promote efficiency.
Trends in Social Spending before and after Assistance under the Heavily Indebted Poor Countries Initiative
Source: World Bank. 2001. World Development Indicators, 2001. Washington, D.C.
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2 The debt relief agenda must go forward
The World Bank Annual Report 2001
Net Official Development Assistance as Percent of Gross National Income
Source: World Bank. 2001. World Development Indicators, 2001. Washington, D.C.
Meeting the Poverty Challenge: The World Bank’s Strategy
…and that the World Bank sharpen its strategy…
WORLD BANK MISSION
Poverty reduction is the World Bank’s mission, guided by the international development goals. In pursuit of poverty reduction, the World Bank will rely on its business approach and institutional strengths.
Business approach: A long-term, comprehensive, country-led approach to development ■ Participatory development and partnership ■ A focus on operational quality, development effectiveness, and outcomes ■ Knowledge sharing and capacity building ■ Increasing selectivity within countries, across countries, and at the global level ■
Institutional strengths: ■ Financial strength ■ Global reach ■ Broad diagnostic capabilities ■ Operational knowledge ■ Strong partnerships with clients, other donors, and civil society
BANK ASSISTANCE WILL BE DELIVERED PRIMARILY AT THE COUNTRY LEVEL, FOCUSED ON:
Building the climate for investment, jobs, and growth ■ Private investment climate ■ Public sector governance
Empowering poor people to participate in development, and investing in them ■ Empowerment, security, and social inclusion ■ Education ■ Health
For low-income countries, priority areas of assistance will be: ■ Where poverty is concentrated ■ Where the policy environment is favorable for poverty reduction ■ Where post-conflict challenges are urgent
For middle-income countries, priority themes of assistance will be: ■ Policy and institutional reform for reducing poverty ■ Well-targeted, high-impact investments ■ Promoting competitiveness in the global knowledge economy
BANK SUPPORT FOR INTERNATIONAL EFFORTS TO PROVIDE CRITICALGLOBAL PUBLIC GOODS WILL FOCUS ON: ■ ■ ■
Communicable diseases Environmental commons Trade and integration
■ ■
Information and knowledge International financial architecture
The World Bank Annual Report 2001
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Meeting the Poverty Challenge: The Role of IBRD
…relying on the unique strengths of IBRD…
IBRD provides important support for poverty reduction. How? By providing its middle-income client countries access to capital in larger volumes, on good terms, with longer maturities, and in a more sustainable manner than the market provides. IBRD: ■ Supports long-term human and social development needs that private creditors largely find unappealing. ■ Preserves borrowers’ financial strength by providing support in crisis periods, when poor people are most adversely affected. ■ Uses the leverage of finance to promote key policy and institutional reforms (such as safety-net or anticorruption reforms). ■ Catalyzes private capital by helping create a favorable investment climate. ■ Provides financial support (in the form of grants made available from IBRD net income) for global public goods that are critical for the wellbeing of poor people in all countries.
The Treasury trading room is the nerve center of the Bank’s innovative financial transactions such as the e-bond issued in January 2000. Investing the Bank’s liquid assets, managing balance sheet risks, and meeting bond investor needs are crucial to the Bank’s ability to respond to clients’ financing needs.
What Is IBRD? IBRD is a AAA-rated financial institution—with some unusual characteristics. Its shareholders are sovereign governments. Its member borrowers have a voice in setting its policies. They also usually accord preferred creditor status to IBRD, helping it stay financially strong. IBRD loans are typically accompanied by nonlending services to ensure more effective use of funds. Also, unlike commercial banks, it is driven by a development impact, rather than profit maximization, objective.
Who Are IBRD’s Clients? Seventy-five percent of people who live on less than $1 per day live in countries that receive IBRD lending, which are typically middleincome and enjoy some access to private capital markets but include countries that also borrow from IDA. Even excluding countries that also borrow from IDA, such as India, Indonesia, Nigeria, and Pakistan, a full 25 percent of the world’s $1-a-day poor live in countries that are IBRD borrowers.
Elements of IBRD’s Financial Strategy
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Preserving AAA-rated financial strength To maintain income-generating capacity, help manage risk, and support IBRD’ s development objectives
Achieving efficient intermediation To ensure cost-effective funding for development uses
Adapting to borrower needs To ensure flexibility and innovation in meeting diverse and changing client needs
■ Capital commitments of 183 sovereign shareholders ■ Strong record of repayment by borrowers, reflecting priority given to IBRD debt ■ Conservative financial management ■ Substantial liquidity ■ Conservative capital structure ■ Risk-minimizing lending policies
■ Wide access to markets ■ 50 years of capital market innovation ■ Leadership in new products, structured finance, emerging market issuance ■ Wide underwriter partnerships ■ Diversified global investor base ■ Ample Treasury liquidity ■ Strong derivatives capacity ■ Active asset-liability management
■ Product innovations to help clients manage their financial, debt, and crisis strategies ■ Wide borrower choice in loan types ■ Increasing currency and interest rate choice ■ Flexible guarantees, both to help private sector financing and to support reforms ■ Increased choice of lending terms
The World Bank Annual Report 2001
Meeting the Poverty Challenge: The Role of IDA
…and on IDA as an agent for progress in the poorest countries
IDA helps the world’s poorest countries reduce poverty by providing “credits,” which are loans at zero interest with a 10-year grace period and maturities of 35 to 40 years. These countries face complex challenges in striving for progress toward the international development goals. They must, for example, respond to the competitive pressures as well as opportunities of globalization; arrest the spread of HIV/AIDS; and prevent conflict or deal with its aftermath. To help these countries improve their prospects, the policy framework emphasizes: ■ Accelerating broad-based growth through sound macroeconomic and sectoral policies, especially for rural and private sector development. ■ Investing in people through strong support for the social sectors (see figure), including gender mainstreaming and efforts to counter the challenge and social impact of communicable diseases, especially HIV/AIDS. ■ Building capacity for improving governance— including in public expenditure management— and combating corruption. ■ Protecting the environment for sustainable development. ■ Fostering recovery in post-conflict countries. ■ Promoting trade and regional integration.
IDA’S EVOLVING ROLE: GREATER EMPHASIS ON PARTICIPATION AND PARTNERSHIPS Responding to recent changes in the international development environment, IDA works more closely with borrowers and other development partners. The Poverty Reduction Strategy Papers, prepared in a participatory manner by IDA countries, offer an opportunity to align donor strategies more closely with country strategies. The Bank took important steps in the spring of 2001 to increase transparency and broaden participation in the formulation of IDA’s operational approaches. Documents for the donor meetings on the 13th Replenishment of IDA (IDA-13)—which will fund lending in fiscal 2003–05—are publicly available at www.worldbank.org/ida. 8 And in June 2001, for the first time in IDA’s 41-year history, representatives of borrowing countries joined donors in discussions about IDA’s future directions.
IDA’s Stepped-up Effort in the Social Sectors 285 Projects ongoing (compared with 184 a decade ago)
Increasing Aid Effectiveness through PerformanceBased Allocations Research shows that aid is most effective in spurring growth and poverty reduction in countries that have a strong commitment to reforms. I DA leads all development institutions in directing its assistance to countries that pursue poverty-reducing policies. IDA employs a performance-based allocation sys tem to channel its resources to countries that are undertaking reforms. Through targeted allocations, effective leveraging of resources, and country-based strategies, I DA is helping the
As of June 30
poorest countries participate in the global economy, and promoting equity and inclusive growth for their poorest citizens.
IDA commitment value of ongoing social sector projects 1991: $7.7 billion 1996: $13.1 billion 2001: $13.9 billion
The World Bank Annual Report 2001
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The World Bank in Fiscal Year 2001
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The World Bank Annual Report 2001
World Bank Country Offices and Borrower Eligibility The World Bank today operates out of nearly 100 offices worldwide. Increased presence in client countries is helping the Bank better understand, work more closely with, and provide faster service to clients. Threefourths of outstanding loans are managed by country directors located away from the Bank’s Washington, DC, headquarters. About 2,500 staff are based in country offices, representing an increase of 52 percent over five years ago.
The World Bank Group
The World Bank, with a mission to fight poverty and improve living standards for people in
The International Bank for Reconstruction and Development
The International Development Association
Established 1945 ■ 183 Members Cumulative lending: $360 billion Fiscal 2001 lending: $10.5 billion for 91 new operations in 36 countries
Established 1960 ■ 162 Members Cumulative lending: $127 billion Fiscal 2001 lending: $6.8 billion for 134 new operations in 57 countries
Ambulances, furnished by Bulgaria’s Health Sector Restructuring Project, stand ready to provide emergency service in Sofia. The project, which has also trained physicians and emergency personnel, has dramatically reduced the mortality rate in emergency service cases, resulting in more than 2,300 lives saved a year.
Newly literate Bangladeshi women learn to utilize their new skills toward better employment and income-generating opportunities under the Post-Literacy and Continuing Education for Human Development Project, which targets 1.6 million of the country’s poorest, half of them women.
IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development, through loans, guarantees, and nonlending—including analytical and advisory—services. IBRD does not maximize profit but has earned a net income each year since 1948. Its profits fund several developmental activities and ensure financial strength, which enables low-cost borrowings in capital markets, and good terms for borrowing clients. Owned by member countries, IBRD links voting power to members’ capital subscriptions—in turn based on a country’s relative economic strength.
Contributions to IDA enable the World Bank to provide $6–7 billion per year in interest-free credits to the world’s 78 poorest countries, home to 2.4 billion people. This support is vital because these countries have little or no capacity to borrow on market terms. In most of these countries incomes average under just $500 a year per person, and many people survive on much less. IDA helps provide access to better basic services (such as education, health care, and clean water and sanitation) and supports reforms and investments aimed at productivity growth and employment creation.
the developing world, is among the world’s leading development institutions. It provides loans, policy advice, technical assistance, and knowledge-sharing services. IBRD and IDA— together the “World Bank”—are owned by member countries that carry ultimate decisionmaking power. The World Bank Group today consists of five closely associated institutions.
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The World Bank Annual Report 2001
The International Finance Corporation
The Multilateral Investment Guarantee Agency
The International Centre for Settlement of Investment Disputes
Established 1956 ■ 175 Members Committed portfolio: $21.8 billion* Fiscal 2001 commitments: $3.9 billion† in 205 companies for 74 countries
Established 1988 ■ 154 Members Cumulative guarantees issued: $9.1 billion Fiscal 2001 guarantees issued: $2 billion
Women at the Liki River Farm in Kenya pack vegetables for export. Private sector businesses like this one provide jobs that help improve lives and contribute to economic strength and stability.
Children in San Marcos, Peru, attend a computer learning session at a training center created and operated by a project benefiting from MIGA guarantees.
A port terminal concession in Argentina was among the matters settled in ICSID during fiscal 2001.
IFC’s mandate is to further economic development through the private sector. Working with business partners, it invests in sustainable private enterprises in developing countries and provides long-term loans, guarantees, and risk management and advisory services to its clients. IFC invests in projects in regions and sectors underserved by private investment and finds new ways to develop promising opportunities in markets deemed too risky by commercial investors in the absence of IFC participation.
MIGA helps encourage foreign investment in developing countries by providing guarantees to foreign investors against losses caused by noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, and war and civil disturbances. Furthermore, MIGA provides technical assistance to help countries disseminate information on investment opportunities. The agency also offers investment dispute mediation on request.
ICSID helps to encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, in this way helping to foster an atmosphere of mutual confidence between states and foreign investors. Many international agreements concerning investment refer to ICSID’s arbitration facilities. ICSID also has research and publishing activities in the areas of arbitration law and foreign investment law.
Established 1966 ■ 134 Members Total cases registered: 87 Fiscal 2001 cases registered: 12
* Includes syndications, $14.3 billion for own account. † Includes syndications, $2.7 billion for own account.
The World Bank Annual Report 2001
15
IBRD Financial Results
Net Return on Assets (percent)
Equity-to-Loans Ratio as of June 30, 2001 (percent)
Borrowings and investments as of June 30, 2001 (billions of dollars)
MANAGING RETURNS TO MAINTAIN STRENGTH
MANAGING RISK
ACHIEVING EFFICIENT INTERMEDIATION
■ As a cooperative institution, IBRD does not seek to maximize profit but to earn a return on assets sufficient to ensure its financial strength and sustain its development activities on an ongoing basis. ■ IBRD achieves a net return on assets of about 1 percent per annum. In fiscal 2001, an increase in loan loss provision reduced net return on assets, to under 1 percent.
■ Consistent with its development mandate, IBRD’s main risk is the credit risk of its loan portfolio. This risk is closely managed. ■ IBRD keeps its exposure to market risk quite limited. Market risk arises due to movements in market variables, such as interest rates and exchange rates. ■ IBRD’s equity-to-loans ratio is a summary measure of its riskbearing capacity. The ratio is conservatively managed in light of IBRD’s financial and risk outlook.
■ IBRD’s high credit rating (AAA) allows the Bank to borrow for long maturities at favorable terms. The Bank borrows globally in multiple markets and currencies. ■ Outstanding debt after swaps reached 76 percent of average total earning assets, as of June 30, 2001. ■ As of June 30, 2001, the liquid asset portfolio was $24.2 billion, composed of liquid investments.
*In fiscal 2001 IBRD adopted Statement of Financial Accounting Standard No.133 and International Accounting Standard No. 39, which required that derivative instruments be reported at fair value. Without adoption of these standards, the ratio would have been 0.78.
† Outstanding borrowings, net of swaps.
Selected IBRD Financial Data (millions of dollars) Fiscal 2001 8,143 1,540 (7,152) (859) (183) 1,489
8,153 1,589 (7,128) (935) 312 1,991
Loan commitments Loan disbursements
10,487 11,784
10,919 13,332
24,407 118,866 (111,482)b (29,570)
24,331 120,104 (114,012) b (29,289)
At fiscal year-end a Cash and liquid investments Loans outstanding Borrowings outstanding Equity
a. Excerpted from the audited financial statements presented in volume 2 of this Annual Report. b. Outstanding borrowings, net of swaps.
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Fiscal 2000
For the fiscal year a Income from loans Income from investments Borrowing expenses Administrative expenses Other Net income
The World Bank Annual Report 2001
Where the World Bank Got Its Money in Fiscal 2001
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ■ In fiscal 2001 IBRD raised $17 billion, before swaps, at medium- to long-term maturities, in international debt capital markets. Borrowings and shareholder equity fund IBRD’s loans and investments. ■ The year’s funding volume was above that of fiscal 2000, after peaking in fiscal 1998 due to above-average demand for financing. ■ IBRD’s financial strength is based on the support it receives from its shareholders and on its array of financial policies and practices. ■ IBRD issued debt in nine currencies and in a wide range of maturities and structures in fiscal 2001. Diversification helps lower borrowers’ funding costs and expands IBRD’s investor base.
Where Do IBRD’s Profits Go? IBRD’s net income serves several purposes related to its mission: ■
financial integrity. The General Reserve allows IBRD to assume credit risk in lending to countries at the lowest funding costs— which in turn benefits borrowers. Income retention has enabled IBRD to maintain financial soundness through periods of deteriorating loan quality as well as surging loan demand. ■
Support to IDA has consistently been a priority. Over the last five years, $1.6 billion (or about 22 percent of IBRD net income) has been transferred to IDA.
■
Support for the Heavily Indebted Poor Countries (HIPC) Initiative has also been important. Over the last five years transfers to the HIPC Trust Fund have amounted to a total of $900 million, averaging about 12 percent of annual IBRD net income.
■
IBRD’s net income helps meet other developmental needs from time to time. It enables IBRD to respond to unforeseen humani-
INTERNATIONAL DEVELOPMENT ASSOCIATION ■ IDA donors come together every three years to decide on the amount of new resources required to fund IDA’s future lending program and to discuss lending policies and priorities. ■ Fiscal 2001 was the second year of the 12th Replenishment of IDA. IDA-12 is designed to provide IDA with resources to fund credits committed during the period July 1, 1999, to June 30, 2002. ■ Nearly 40 countries are IDA donors. Donor nations include not only industrial countries but also developing and transition countries—some of them IBRD borrowers and former IDA borrowers—such as Argentina, Brazil, Hungary, the Republic of Korea, the Russian Federation, and Turkey (see page 35). ■ IDA’s financial strength is based on the strong and continued support of its donors as well as reflows.
A portion of net income is retained annually to ensure IBRD’s
tarian crises and provide grants or other support for worthy causes. IBRD also regularly shares income with its borrowing members through partial waivers of the interest and commitment fees it contractually charges on its loans. ■
Financial strength and standing in the markets allow IBRD to leverage its equity by five times in the international bond markets. This leverage increases IBRD’s ability to lend for developmental activities.
Allocation of Fiscal 2001 Net Operating Income of $1.1 billion (millions of dollars)
Sources of IDA funding (billions of dollars)
*IDA Own Resources includes principal repayments, service charges, and investment income.
*An additional amount of $31 million was allocated to the HIPC Trust Fund out of the surplus account consisting of a portion of prior years’ net operating income. †Pension Reserve is used exclusively for the income derived from the difference between actual funding of the Staff Retirement Plan and the accounting expense associated with it, required by GAAP. These funds are not ”allocable.“
The World Bank Annual Report 2001
17
IBRD Operational Results
LENDING: QUALITY UP, VOLUME STABLE ■ The quality of IBRD operations continued to improve: fewer ongoing projects were at risk of not achieving their development objectives compared with last year. ■ The portfolio of ongoing projects (713) was smaller than last year’s (764), reflecting a decline in approvals of new operations (91 approved in fiscal 2001 compared with an annual average of 130 in the last five years) and efforts to ensure the timely completion of projects under implementation. ■ As access to international capital markets continued to improve for many countries, IBRD lending stabilized at slightly below last year’s $10.9 billion. ■ The share of adjustment lending continued to decline (38 percent in fiscal 2001, down from 41 percent in fiscal 2000 and 63 percent in fiscal 1999), approaching pre-East Asia crisis levels. LENDING BY REGION AND SECTOR ■ New IBRD lending commitments in fiscal 2001 were highest for the Latin America and the Caribbean (LAC) Region ($4.8 billion), followed by the Europe and Central Asia (ECA) Region ($2.2 billion). ■ Latin American countries also accounted for close to 69 percent of IBRD’s adjustment lending, half of it in phased, programmatic support for medium-term policy reform and institutionbuilding efforts (for example, fiscal and financial reform in Brazil, social sector reform in Peru, and bank restructuring in Jamaica).
IBRD Lending Commitments and Disbursements, Fiscal 1997–2001 (billions of dollars)
■ Human development was a high priority in fiscal 2001; the share of education, health/nutrition/ population, and social protection lending in total IBRD lending increased to 21 percent ($2.2 billion) from 16 percent ($1.7 billion) in fiscal 2000. Most of the increase was concentrated in the LAC Region. ■ IBRD lending also helped borrowers to strengthen their financial sector ($1.7 billion), improve public sector management ($1.4 billion), meet infrastructure needs ($2.7 billion, including $2.4 billion in the transport sector), and support the environment and rural development ($1.3 billion). ECONOMIC AND SECTOR WORK (ESW) ■ In fiscal 2001, 230 ESW products were delivered for IBRD-eligible countries—including 38 core diagnostic reports underpinning Country Assistance Strategies and adjustment lending (poverty assessments, country economic memoranda, public expenditure reviews, country financial accountability assessments, and country procurement assessments)—compared with 259 products in fiscal 2000. ■ In addition, reports on the financial sector, rural development, social protection, and other sectors enhanced the design of projects and supported the dialogue on policy and institutional priorities. ■ Twenty-seven ESW products were delivered for India, the year’s largest IBRD borrower. The ECA Region accounted for nearly 40 percent of ESW deliveries, with 44 country studies supplemented by 30 regional reports focusing on topics such as education, enterprise restructuring, and accession to the European Union.
IBRD Lending by Region, Fiscal 2001 Share of total lending of $10.5 billion
IBRD Lending by Sector, Fiscal 2001 Share of total lending of $10.5 billion
Note: See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, oil and gas, and mining.
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The World Bank Annual Report 2001
IDA Operational Results
LENDING: QUALITY UP, VOLUME UP ■ The quality of ongoing IDA operations continued to improve, with fewer projects at risk than last year. ■ The size of IDA’s active project portfolio increased to 735 from 729 in fiscal 2000 as a result of a significantly larger number of new approvals (134 operations in fiscal 2001 compared with an annual average of 127 in the last five years). ■ New IDA commitments reached $6.8 billion compared with $4.4 billion in fiscal 2000. Contributing to this rise was $1.4 billion in new commitments to three countries (Ethiopia, Kenya, and Pakistan) that had received no new IDA financing in fiscal 2000. ■ The share of adjustment lending increased to 27 percent from 16 percent in fiscal 2000 as a result of a number of large adjustment loans, including the first two PRSCs approved for Uganda and Vietnam. LENDING BY REGION AND SECTOR ■ IDA lending increased in all Regions, except in the Middle East and North Africa Region, which maintained last year’s lending levels. IDA lending to the Africa Region ($3.4 billion) reached 50 percent of total new IDA commitments, and included several Africa-wide programs—a concerted response to the HIV/AIDS crisis, help to adjust to oil price shocks, promotion of regional trade, and post-conflict reconstruction support.
IDA Lending Commitments and Disbursements, Fiscal 1997–2001 (billions of dollars)
Ethiopia was the largest IDA borrower in fiscal 2001 ($667 million), followed by Vietnam ($629 million) and India ($520 million). ■ IDA support for human development—education, health/nutrition/population (including HIV/AIDS), and social protection—reached $2.2 billion (representing a $600 million increase compared to fiscal 2000). ■ Other priorities were economic reform and public sector management ($1.3 billion), infrastructure development ($0.9 billion), finance and private sector development ($1 billion, representing an almost $600 million increase over last year), and rural development and the environment ($1 billion). ECONOMIC AND SECTOR WORK (ESW) ■ One hundred and five ESW products were delivered for IDA-eligible countries in fiscal 2001, slightly less than the previous year’s total of 119. ■ Core diagnostic reports, numbering 24, covered poverty, social and structural analysis, public expenditure management, financial accountability assessments, and procurement assessments, helping countries to improve governance, financial discipline, and the targeting of public expenditures on poverty reduction. ■ Other diagnostic and advisory reports centered on education and rural, social, and private sector development. ■ The Africa Region accounted for 36 percent of total ESW deliveries, followed by South Asia (23 percent) and ECA (14 percent).
IDA Lending by Region, Fiscal 2001 Share of total lending of $6.8 billion
IDA Lending by Sector, Fiscal 2001 Share of total lending of $6.8 billion
Note: See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, oil and gas, and mining.
World Bank Cofinancing
Examples of Cofinancing in Fiscal 2001 Total projects cofinanced by the Bank and its partners numbered 131 in fiscal 2001. Examples of projects with significant cofinancing include: ■ The Bolivia Programmatic Structural Adjustment Credit for
Decentralization leveraged $20 million in funds from three partners: Department for International Development, United
Cofinancing* describes funds committed by official bilateral partners, multilateral partners, export credit agencies, or private sources to specific Bank-funded projects. Partners include regional development banks, multilateral partners such as those associated with environmental agreements, and special program mech anisms, as well as private sector actors that provide project financing. The Bank’s cofinancing figures reflect the combining of Bank resources with those of other donors in specific regions and sectors to support client country activities. The wider the participation in the cofinancing effort, the greater the consensus on the activities and policies supported. Cofinancing in fiscal 2001 amounted to $5.47 billion. Multilateral and bilateral partners contributed 85 percent of this amount. Major partners included the Inter-American Development Bank (IADB—$1.9 billion); the Japan Bank for International Cooperation ($0.53 billion); and Kreditanstalt für Wiederaufbau (KfW—$0.3 billion). This year’s cofinancing was below the previous year’s level ($9.3 billion), reflecting unusually large volumes of cofinancing in fiscal 2000 for the Chad-Cameroon Pipeline Project ($3.4 billion) and in China ($0.4 billion). The Latin America and the Caribbean Region accounted for the largest share of cofinancing in fiscal 2001 ($3.4 billion), followed by Africa ($1.12 billion) and Europe and Central Asia ($0.46 billion). The major sectors attracting cofinancing were public sector management ($1.2 billion), finance ($1 billion), and oil and gas ($0.9 billion). In addition to cofinancing of $5.47 billion, $2 billion was committed in fiscal 2001 under the Strategic Partnership with Africa framework. The commitment, which reflected close donor coordination on policies in the context of Poverty Reduction Strategy Papers (in Benin and Uganda, for example), was above the amount committed in fiscal 2000 ($0.51 billion).
*Data in this section represent project cofinancing estimates at the time of project presentation to the Board and could be revised as financing plans evolve.
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The World Bank Annual Report 2001
Kingdom; Sweden; and the Netherlands. Parallel cofinancing of $127 million came from KfW, the German Technical Assistance Corporation, Denmark, the U.S. Agency for International Development, the Andean Development Corporation, and the IADB. ■ The Mali Education Sector Expenditure Project leveraged $154
million from 15 donors: the African Development Bank, the Agence Française de Développement, the Canadian International Development Agency, Sweden, the United States, the Islamic Development Bank, KfW, France, Belgium, the Netherlands, Norway, the Organization of Petroleum Exporting Countries Fund, the United Nations Children’s Fund, the United Nations Development Programme, and the World Food Program. ■ The India Power Grid II Project received $175 million of cofinanc-
ing from KfW. ■ The West Bank and Gaza lending program is financed through
the Bank-established Trust Fund for Gaza and the West Bank. The fund has been allocated $ 380 million from the Bank’s net income and since September 1994 has financed 20 projects for a total of $307 million. Over $540 million has been provided in joint and parallel cofinancing by numerous donor governments.
Cofinancing Ratio Ratio of total cofinancing to World Bank lending (percent)
Trust Fund Highlights
Trust-Funded Initiatives for Climate Change and Post-Conflict Reconstruction The Prototype Carbon Fund (PCF), established with the objective of mitigating climate change, aims to promote sustainable development, demonstrate the possi bilities of public-private partnerships, and offer a “learning-by-doing” opportunity to stakeholders. PCF emphasizes renewable energy and energy efficiency projects that have potential for replication and for reducing climate change at a reasonable cost.
Trust funds are financial and administrative arrange ments* that facilitate grant funding of high-priority development needs, including technical assistance and advisory services, debt relief, post-conflict transition, and cofinancing. Trust funds help leverage poverty reduction programs by funding key due diligence activ ities for development operations, promoting innovative approaches, forging partnerships, and expanding the scope of development collaboration.
PCF investments will be made in transition economies and developing countries following the emerging framework of the Kyoto Protocol for its Joint Implementation and Clean Development Mechanisms, respectively. By October 2000, the PCF had subscribed capital of $145 million from 17 corporate and 6 public sector participants. See www.PrototypeCarbonFund.org.
8
Trust funds increasingly support reconstruction and transition in post-conflict countries and regions. Bank-financed trust funds provide credits (on IDA terms) and grants to nonmember countries to support demobilization, help rebuild economies, and develop key institutions. The Bank has catalyzed additional external donor assistance to increase development impact in post-conflict situations. Special Bank
In fiscal 2001: † ■ Total contributions expanded significantly, with increased donor support for the Heavily Indebted Poor Countries (HIPC) Initiative, a new Japan Social Development Fund (JSDF) to help poor and vulnerable groups hurt by crisis, a trust fund for the Federal Republic of Yugoslavia, and major technical assistance and cofinancing projects. ■ Contributions totaled $2,719 million, comprising $1,450 million from bilateral donors, $1,225 million from multilateral donors, and $44 million from private sector and nongovernmental organizations.
credits and grants for the West Bank and Gaza, East Timor, Kosovo, and the Federal Republic of Yugoslavia totaled nearly $500 million in recent years, leveraged by an additional $1 billion in grants from the larger donor community.
Contributions to Bank-Administered Trust Funds, Fiscal 1997–2001 (millions of dollars)
■ Major contributions were provided by the European Community ($757 million), the World Bank Group ($422 million), Japan ($277 million), and the Netherlands ($235 million). ■ Contributions to ongoing, global programs financed by Japan and the Netherlands included $93 million for the JSDF, $59 million for the Japan Policy and Human Resources Development (PHRD) Fund, and $60 million for the BankNetherlands Partnership Program. ■ Disbursements totaled $1.85 billion with $988 million attributable to three large programs: HIPC, the Global Environment Facility and the PHRD Fund.
* Trust funds are accounted for separately from the Bank’s own resources and are defined through formal agreements between the Bank, external donors, and the recipients who receive grant funding. † The financial information presented for the trust fund portfolio reflects reporting on an accrual basis for contributions to the Heavily Indebted Poor Countries (HIPC) Trust Fund, and reporting on a cash basis for contributions to all other trust funds. The differential between contributions reported on an accrual and cash basis totaled $536 million in fiscal 2001,($16) million in fiscal 2000, $233 million in fiscal 1999, and $80 million in fiscal 1998. Disbursements for all trust funds, including the HIPC Trust Fund, are reported on a cash basis.
The World Bank Annual Report 2001
21
The World Bank’s Active Portfolio of Projects under Implementation at June 30, 2001
EVOLVING PRIORITIES
TURNING THE PORTFOLIO AROUND: TWO EXAMPLES
■ The World Bank’s project portfolio of $105 billion at the end of fiscal 2001 comprised 1,553 ongoing projects, nearly a quarter of them in Africa. ■ Measured in dollars as well as number of projects, the distribution of the portfolio highlights the Bank’s sustained emphasis on investments in people, rural development with an environmental focus, and infrastructure and institution building needed to help countries attract private investment and reduce poverty. ■ The share of the portfolio in the energy as well as the oil and gas sectors has fallen sharply over the past five years, reflecting countries’success in attracting private and other lenders into those sectors and the Bank’s focus on policy and institutional reform. ■ Countries with good policy and institutional environments account for a markedly higher share of the portfolio today relative to fiscal 1996. ■ Support for countries’efforts to combat corruption and HIV/AIDS has been mainstreamed and is today more than double what it was in fiscal 1996. ■ The Bank continues to be a leader in providing reconstruction assistance following natural disasters, with growing attention to disaster prevention. In the last five years, lending for reconstruction totaled nearly $5 billion, and while difficult to quantify precisely, disaster prevention lending is approaching similar levels. ■ Portfolio management by decentralized country office staff has increased significantly, strengthening the Bank’s responsiveness to client needs and improving portfolio health. Project Portfolio by Region, June 30, 2001 Share of total $105.4 billion
Project Portfolio by Sector, June 30, 2001 Share of total $105.4 billion
Water and Sanitation Sector. Five years ago, about half the Water and Sanitation portfolio was at risk, and problem projects accounted for nearly a quarter of the portfolio. At the end of fiscal 2001, only 15 percent of projects were at risk. The radical improvement has resulted from: ■ A shift in lending away from public sector utilities that promise reforms and toward utilities that have reformed prior to Bank funding and brought private sector talent into their operations; and ■ The Bank’s adoption of a proactive approach toward problem projects, including quantitative performance targets and regular review and monitoring. Africa Region. Operations in the Africa Region have historically faced above-average risk because of conflict-related crises, political instability, and weak governance. Despite these risks, the quality of the region’s portfolio has improved markedly, as a result of: ■ Linking new lending to resolution of outstanding problems; ■ Providing staff with real-time data on portfolio quality; ■ Tackling cross-cutting problems in risky projects through country-portfolio reviews; ■ Using local staff in country offices to strengthen oversight; and ■ Facilitating public involvement, awareness, and oversight of the Bank’s portfolio.
Projects at Risk of Not Achieving Development Objectives, Africa Region (percent)
a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, oil and gas, and mining. Source: Quality Assurance Group.
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The World Bank Annual Report 2001
The Quality of the World Bank’s Operations: Sustained Improvement
Following five years of solid improvement, the development riskiness of the Bank’s portfolio has been cut in half and is now the lowest it has been in many years. As a result, some $16 billion of loans and credits are now better positioned to deliver results. Improvements over the five-year period have been broad based, covering virtually all regions and sectors.
Findings of the Bank’s Annual Report on Portfolio Performanceinclude improved relevance of Bank assistance, consulting of stakeholders, attention to likely social and environmental impacts, oversight of fiduciary aspects, collaboration with partners, and focus on results and problem solving. Building on progress and sustaining efforts will be crucial.
The quality of projects under implementation has improved substantiallya… Satisfactory Quality at Entr y (percent of total projects)
Satisfactory Quality of Supervision (percent of total projects)
Projects at Risk of Not Achieving Development Objectives (percent of total projects)
The quality of economic and sector analytical work is also improvinga… Economic and Sector Work (percent)
These gains are beginning to show up in independent evaluations of projects that have closedb Satisfactory Outcomes (percent of total)
Projects with Substantial Institutional Development Impact (percent of total)
Projects Whose Sustainability Is Likely (percent of total)
Projects Disbursements
a. Data refer to the evaluation assessments by the Quality Assurance Group of a sample of recently approved and ongoing projects each year. Historical year shown represents the first year for which data are available. Calendar year figures are preliminary. b. Data refer to independent evaluation assessments by the Operations Evaluation Department (OED) of projects that have completed their loan disbursement phase and have exited the Bank’s active lending portfolio. Results for fiscal 2000 exits are preliminary, based on all cur rently available independent assessments, covering roughly 45 percent, as reported in the Annual Report for Development Effectiveness 2000 .
The World Bank Annual Report 2001
23
Chapter 1
Overview of World Bank Activities in Fiscal 2001
In fiscal 2001 the World Bank intensified its efforts to help countries fight poverty. It accelerated support—jointly with the IMF—to help the world’s poorest countries prepare poverty reduction strategies, thus advancing their eligibility for significant debt relief. It heightened collaboration with global partners around the international development goals to enhance prospects for their achievement and, in particular, to strengthen the fight against HIV/AIDS. And it articulated a new Strategic Framework that clarifies the key strategic directions of the Bank and emphasizes the need to consolidate and build on the significant progress of recent years. GLOBAL CONTEXT: SLOWING RECOVERY, SLOW PROGRESS ON POVERTY REDUCTION During 2000, the world economy continued its remarkable recovery from the 1997–98 financial crisis, but momentum faded as the year progressed. GDP growth of developing countries averaged 5.4 percent in 2000, a shade above the previous year. The fastest-growing region was East Asia and Pacific, at 7.5 percent; Sub-Saharan Africa trailed with 2.7 percent growth. South Asia continued on a steady growth path despite a major earthquake in India. Accelerated reform also helped growth in Europe and Central Asia’s developing countries, boosted by the rise of Russian oil revenues to a record level; resolving setbacks to financial stability and attracting private investment remain challenges for the region. Latin America, on the whole, also recovered well, benefiting from a return to stability of global financial markets. Growth in the Middle East and North Africa continued, but serious challenges include the continued political uncertainty and high unemployment in the region. For the world as a whole, slower growth is expected for 2001. Progress on poverty reduction has been slow, and the challenge of the international development goals remains immense (see page 4). Prospects for success, in some areas, are improving, however. Between 1990 and 1998 the proportion of people living in extreme poverty fell from 29 percent to 23 per-
cent, with China leading the decline. In at least 25 developing countries, infant mortality rates have been declining, putting them within likely reach of the 2015 infant mortality goal. The gaps between girls’ and boys’ enrollments have narrowed. But other data are sobering: estimates show that more than 113 million children remain out of school, 150 million children remain underweight, and maternal deaths average 440 per 100,000 in developing countries (compared with 21 in high-income countries). HIV/AIDS continues to present a formidable obstacle to reaching the goals, although a few countries are beginning to reap successes from prevention programs. And many countries, on present trends, are not on track to halving their poverty incidence by 2015. FISCAL 2001 ASSISTANCE: FOCUS ON POVERTY, QUALITY Higher lending volumes and special financing. At
$17.3 billion, new lending in fiscal 2001 was modestly above the previous year’s level for IBRD and IDA combined (table 1.1). The increase resulted from higher IDA lending to Africa, consistent with IDA-12 goals and in particular to respond to the HIV/AIDS crisis, post-conflict situations, and oil price shocks. A multicountry, fast-track program for Africa to intensify the fight against HIV/AIDS deserves special mention for its innovativeness as well as scope for scaling up development impact (box 1.1). Overall, new IDA lending focused on investments aimed at reducing poverty, including investments in the social sectors and rural and community-driven development. Demand from IBRD borrowers, particularly in Europe and Central Asia and Latin America, was centered on strengthening financial sectors, investing in people, improving public sector management, and addressing needs in the transport sector. Institution building remained a strong priority. With respect to the number of projects, the year’s total of 225 was about the same as last year, with IDA operations reaching a firsttime-ever 60 percent of the total. The average size of operations increased to $77 million in fiscal 2001
Overview
25
Table 1.1 World Bank Lending by Sector, Fiscal 1992–2001 (millions of dollars) Classified on a loan-by-loan basisa,d Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
FY92–97 FY98–99c
Classified on a loan component basisb
FY00
FY01
FY00
FY01
1,336.7 1,286.7 684.0 994.2 514.1 1,676.5 54.5 654.5 167.0 987.0 163.9 2,442.5 990.0 109.3 1,690.0 621.7 903.6
1,456.8 1,323.8 794.1 824.4 515.9 2,231.3 36.0 50.1 81.6 1,047.8e 507.3 2,570.6 1,672.5 65.0 2,969.9 549.5 554.0
1,150.0 1,301.0 762.3 990.5 918.8 1,774.0 20.0 513.5 166.7 1,044.3 207.3 1,868.3 1,517.9 109.4 1,612.3 699.5 620.5
1,448.4 652.0 1,143.4 944.9 791.2 2,231.7 36.0 5.0 155.1 1,343.3e 556.6 2,115.0 1,882.7 64.2 3,024.6 317.3 539.2
21,543.1
28,795.0c 15,276.2
17,250.6g
15,276.3
17,250.6g
15,368.4 6,174.7
21,634.3 10,918.7 7,160.7f 4,357.6
10,487.1 6,763.5f
Annual Average
Annual Average
2,913.3 2,339.6 1,724.6 2,547.2 738.3 1,632.5 218.1 140.0 550.9 1,263.9 774.7 600.6 757.2 261.1 3,060.2 1,112.9 908.0
2,700.0 5,812.7 2,231.9 1,253.6 711.5 4,247.6 845.8 504.6 78.8 1,549.0 723.5 1,280.1 2,190.4 90.7 3,183.1 910.4 481.3
Note: Numbers may not add to totals because of rounding. Please see appendix 10 in volume 2 for detailed IBRD and IDA lending by sector. a. To better capture the evolving nature of Bank operations, the Bank's sector classification system is reviewed and changed as appropriate. In fiscal 2000, two new sector categories were created (Economic Policy and Private Sector Development) and one sector category was dropped (Industry). Economic Policy comprises operations that support macroeconomic policy, trade, and other economic and institutional reforms. It includes structural adjustment operations previously assigned to Multisector and some operations previously assigned to Finance. Private Sector Development comprises operations dealing with the business environment, private infrastructure, small scale enterprise, and privatization issues. As such, it includes some operations previously assigned to Industry and to Public Sector Management. Other operations previously included under Industry have been assigned to the Public Sector Management sector. In addition, a few individual operations approved in fiscal 1998–99 were reassigned, including a fiscal 1999 project from Agriculture to Water Supply and Sanitation. b. This column shows lending by sector, based on a classification by major loan component. The example of a $100 million public sector loan,with components aimed at addressing environmental, financial, and social protection needs, serves as an illustration. In the case of loan-by-loan classification, the full amount of the loan appears in the Public Sector Management sector; in the component classification, the full amount is split among the four sectors—Public Sector Management, Environment, Finance, and Social Protection. As a result, total lending of $1,882.7 million for Social Protection in the component classification is the sum of all social protection components within loans approved in fiscal 2001. c. Bank lending in fiscal 1998 and 1999 are presented together, the two being exceptional years due to the East Asia financial crisis. d. The data in last year's Annual Report were slightly revised in fiscal 2001. e. Includes $287.2 million in IDA credits to seven countries under the Multi-Country HIV/AIDS Program for Africa, and $40.1 million in IBRD loans to two countries under the Caribbean HIV/AIDS Initiative, for which the Bank earmarked funding of $500 million and $155 million, respectively, in fiscal 2001. f. Excludes IDA HIPC grants of $75 million to Uganda in fiscal 1998, $154 million to Mozambique in fiscal 1999, and $37 million and $64 million to Honduras and Cameroon, respectively, in fiscal 2001. g. Does not include special financing of $104.8 million provided by the Trust Funds for East Timor, Gaza and the West Bank, Kosovo, and the Federal Republic of Yugoslavia.
from $69 million the previous year, reflecting several large investment operations. The share of adjustment lending continued to stabilize at about onethird of total lending, significantly down from the fiscal 1999 peak of above 50 percent and approaching the typical adjustment lending shares in the early 1990s (before the financial crisis). In addition, 17 special financing operations were approved for a total commitment of $104.8 million, compared with
26
The World Bank Annual Report 2001
12 operations and $96.5 million in fiscal 2000. The beneficiaries were East Timor, Gaza and the West Bank, Kosovo, and the Federal Republic of Yugoslavia. Accelerated debt relief. Significant progress was made in fiscal 2001 to provide deeper, broader, and faster debt relief to some of the world’s poorest countries, many of them in Africa, under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative
Box 1.1 The Multi-Country HIV/AIDS Program (MAP) for Africa The HIV/AIDS epidemic now poses the paramount threat to development in Sub-Saharan Africa. About 25 million adults and children are living with HIV/AIDS, as estimated by the Joint United Nations Programme on HIV/AIDS (December 2000). Some 17 million have already died from the disease, which may be costing the region 0.5 percent to 1.2 percent of per capita growth each year, with losses likely to grow. In collaboration with partners (see page 103), the Bank launched in September 2000 the Multi-Country HIV/AIDS Program (MAP) for Africa—the first of its kind. Under MAP, flexible and rapid funding will be committed, on IDA terms, to individual HIV/AIDS projects developed by countries. ■ The MAPseeks to dramatically increase access—especially by vulnerable groups—to HIV/AIDS prevention, care, and treatment programs. ■ Communities and associations of people affected by HIV/AIDS will help design and implement activities and will control resources. ■ Countries benefiting from the MAPin fiscal 2001 include Cameroon, Eritrea, Ethiopia, The Gambia, Ghana, Kenya, and Uganda. ■ An initial amount of $500 million covers the first of three phases. Phase 1 (expected to be fully committed by the end of calendar 2001) aims to help as many countries as possible intensify action against HIV/AIDS and cope with the unprecedented burdens of the epidemic. Phases 2 and 3, respectively, will stress mainstreaming and prevention. ■ The MAPaims ultimately to avert millions of HIV infections, alleviate suffering for tens of millions, and protect the development prospects of entire nations.
framework. As of June 30, 2001, 23 countries— compared with 7 a year ago—were receiving debt relief under this framework, amounting to more than $34 billion over time from all creditors. Importantly, debt relief has begun to be delivered within a transparent and comprehensive Poverty Reduction Strategy Paper (PRSP) framework. PRSPs (discussed on page 30 under “Support to low-income countries”) are developed by countries after national consultations and aim to ensure a nationally “owned” poverty reduction framework for spending resources freed by debt relief. In addition, debt relief is delivered only to countries that have demonstrated the commitment and capacity to use the resources effectively. After HIPC (and combined with traditional) debt relief, the 23 countries will:
This young boy is one of 8.1 million beneficiaries of Mexico’s Second Basic Health Care Project, which is bringing modern basic health services to previously excluded rural poor people, especially women and children. A Third Basic Health Care Project was approved in fiscal 2001, focusing on increasing equity.
■ Increase (based on early indications) social expenditures by an average of about $1.7 billion a year during 2001–02, directed toward health, education, HIV/AIDS programs, basic infrastructure, and governance reform; and ■ Reduce spending on debt service to about 2 percent of GDP—well below the average for developing countries; social expenditures, in comparison, are estimated at about 7 percent. Evolving economic and sector work (ESW).
ESW products numbered about 335 in fiscal 2001, including about 234 analytical reports and some 100
Figure 1.1 Reduced Debt Stock and Improving Debt Service Ratios before and after Assistance under the HIPC Initiative
■ Witness a two-thirds reduction in total debt, with debt service payments reduced by about $1.1 billion a year (figure 1.1);
Overview
27
policy notes and other products. In fiscal 2001 formal reports included 62 core diagnostic reports (such as poverty and gender assessments, public expenditure reviews, financial accountability, and procurement assessments); 75 other diagnostic reports (such as institutional and governance reviews, financial sector assessments, social protection reviews, and city development strategies); and 97 regional and country advisory reports. The Africa and Europe and Central Asia regions accounted for the highest share of the year’s ESW. ESW provides the basis for the Bank’s policy dialogue with clients. When undertaken in partnership with local institutions, it is also an effective vehicle for building institutional capacity. It underpins the country’s own vision and the Bank’s diagnosis of the country’s development situation; it provides the analytical basis for HIPC and PRSP work in IDA countries; and it plays an important role in middle-income countries—underscored by the Development Committee’s call for stronger analysis of structural, social, and sectoral issues and priorities. ESW helps the Bank develop its Country Assistance Strategies (CASs) and formulate and implement effective lending programs. In fiscal 2001 the Bank continued a reform effort to strengthen ESW and fill gaps in the availability of diagnostic reports, particularly in key areas such as public expenditure, procurement and financial management, and structural constraints to growth and poverty reduction.
■
■
■
■
■
Multidimensional support for poverty reduction.
Released in September 2000, the Bank’s World Development Report 2000/2001emphasized opportunity, empowerment, and security as key to reducing multidimensional poverty. Examples of the Bank’s efforts to reflect in its work the report’s conclusions, through lending and nonlending services, include the following: ■ Lending to fight communicable diseases amounted to over $610 million—twice the average for the past four years, and including over $418 million from IDA; support to combat HIV/AIDS and malaria has intensified, while the Bank is already the largest single source of external support for tuberculosis control in developing countries. ■ Support for education is emphasizing access, quality, and equity; as of June 30, 2001, the Bank has supported 64 active projects worldwide with girls’ education components; 55 of
28
The World Bank Annual Report 2001
■
these projects benefited from IDA financing. Also to benefit the vulnerable, the Bank is not only steadily expanding its social protection portfolio— whose quality is also improving—but also working at the global level, for example with the International Labour Organisation and the United Nations Children’s Fund, to fight child labor. Working toward a cleaner, healthier environment has entailed extensive global consultations to inform a forthcoming environmental strategy, collaborative efforts to better manage Nile water resources, and more environmentally focused support for the energy, oil and gas, and mining sectors. Other progress to empower people is reflected in collaborative work on the Global Development Gateway—an initiative to make worldwide development knowledge more widely and interactively accessible—as well as using Bank lending to help build countries’ information systems (75 percent of Bank projects have such components). A wide range of Bank Group services supports private sector development, ranging from investment climate surveys (of places as diverse as East Timor and the Russian Federation) and support for private provision of infrastructure to catalytic lending and innovative finance, including guarantees. A fast-growing area of support is law and justice, where Bank focus has evolved from specific law reform to encompass legal education for the public, anticorruption programs in the judiciary, indigenous dispute resolution mechanisms, and legal aid for poor women. A new operational policy to guide conflict-related work allows for a more systematic approach, including, in the area of conflict prevention, studies to identify root causes, support for transparent public expenditure management, and varied operational support (for demobilization and reintegration, for example).
Improved development effectiveness. The number
of projects considered “at risk” in the Bank’s portfolio has been cut in half over the past five years and is now the lowest it has been in many years. As a result, some $16 billion of loans and credits are better positioned to deliver results to clients. The quality of project appraisal and supervision has also improved substantially; a similar trend is emerging with respect to nonlending services. These results are beginning to be reflected steadily in improved project
outcomes: the independent Operations Evaluation Department (OED) estimates that 78 percent of closed projects had satisfactory outcomes in fiscal 2000, compared with 73 percent in fiscal 1999. Institutional development and sustainability of results are also improving, slowly but steadily. Particularly noteworthy are quality improvements in the Africa region, which reflect in part IDA’s growing effort to focus new lending on countries with good policy performance. The quality of adjustment lending has also improved markedly. Also notable toward ensuring more effective use of aid is the greater attention, Bank-wide, to safeguard and fiduciary policies. Highlights include an improved tracking system, recognizing the potentially high social and environmental costs of noncompliance; efforts to harmonize safeguard requirements across donors; and a steady strengthening of project financial management resulting from systematic efforts to improve governance and cost effectiveness. A growing priority of OED is to strengthen borrowers’ capacity for evaluation. PRESERVING FINANCIAL STRENGTH TO SUPPORT DEVELOPMENT NEEDS IBRD net income in fiscal 2001 was $1.5 billion, lower than the previous year primarily because of higher provisioning expenses. IBRD retained $618 million out of fiscal 2001 operating income in its General Reserve—lower than in the previous year, when $1.1 billion was retained in keeping with IBRD’s strategy to preserve long-term financial strength and support other development needs. As part of its regular financing operations, IBRD raised $17 billion in international debt markets in fiscal 2001. It continued to borrow at favorable costs, in turn enabling low borrowing costs for client countries. Funding volume was above the previous year’s level, reflecting financing for loan disbursements and refinancing of debt retirements. IBRD maintained adequate liquidity in fiscal 2001 to ensure uninterrupted cash flow to meet its obligations. As of June 30, 2001, the liquid asset portfolio was $24.2 billion. FORMALIZING THE COUNTRY BUSINESS MODEL AND GLOBALPRIORITIES Country business model. “Supporting Country Development: World Bank Role and Instruments in Low- and Middle-Income Countries”—a paper pre-
More and more people are taking advantage of child health services in Ugandan villages covered by the country’s Nutrition and Early Childhood Development Project, whose communications component is making a dramatic difference to community participation. Here, a child is weighed.
pared for the Annual Meetings in September 2000— described the changing paradigm for development assistance and outlined the way the Bank is adapting its approach to better reflect the lessons of experience and respond to new needs for development services. In particular, the paper noted the increasing focus on policies and institutions, the role of the private sector, and country ownership and partnership as articulated in the Comprehensive Development Framework (CDF). The paper also formalized the Bank’s results-focused country business model, which is grounded in the country’s own vision of development and diagnostic work on the priorities and constraints for change, and set out in the CAS. Evolving Country Assistance Strategies. In fiscal
2001 the Board discussed 37 CASs, including 8 Transitional or Interim Support Strategies for postconflict economies such as East Timor, Ethiopia, Kosovo, and Sierra Leone. More than ever, CASs are being prepared in consultation with countries and with attention to transparency. Emphasis on disclosure continued, with disclosure of 100 percent of IDA (including “blend”) and 71 percent of IBRD country assistance documents, for an overall disclosure ratio of 87 percent Bank-wide. It is expected
Overview
29
Box 1.2 Scaling Up Results, Targeting the Vulnerable, Building on Success, Supporting Private Enterprise: Illustrations of Projects Approved in Fiscal 2001 Health. The Second National Leprosy Elimination P roject (IDA, $30 million) supports national programs in India to improve diagnosis, treatment, and monitoring at the state level, building on its predecessor, under which registered cases nationwide were cut in half between 1993 and 2000. Rural development. Brazil’s Land-Based P overty Alleviation Project (IBRD, $202 million) will scale up the results of two successful Bank-financed pilots that tested a community-based approach to provide faster access to land by the rural poor, thereby helping raise the incomes of about 50,000 families. Regional integration. The Regional Trade Facilitation Project (IDA, $110 million)—the first of its kind—will support poverty reduction through private sector–led growth in seven African countries, helping increase credit availability for productive activities and providing startup funds for the Africa Trade Insurance Agency. Social protection. The Emergency Demobilization and Reintegration P roject and the Emergency Recovery Project (IDA, $400 million) will have a signifi-
that, after July 1, 2002, each IDA CAS presented to the Bank’s Board would normally be based on a PRSP, which would provide the context for all IDA lending and nonlending activities. The Board has already considered a number of CASs based on PRSPs, including Burkina Faso and Uganda. A total of 17 of the year’s CASs were prepared jointly with the IFC, underscoring the importance of private investment to these countries’ strategies. While the poverty focus of CASs has been improving, the Bank has been steadily raising the standard for its assistance. Key priorities include good poverty diagnosis, integration of economic and sector work, selectivity in assistance, appropriate sequencing of instruments, and capacity building to monitor PRSP outcome indicators—currently a major challenge. Projects approved over the past year attest to the strong poverty focus of Bank assistance (box 1.2).
cant impact on reducing poverty in war-torn Ethiopia by helping veterans restart their lives and jump-starting the economy, while also addressing
Support to low-income countries. The Boards of
basic needs and scaling up HIV/AIDS-related interventions.
the Bank and the IMF considered Full and Interim PRSPs prepared by 32 countries in fiscal 2001, compared with 12 the previous year. Since their introduction in December 1999, PRSPs have become the principal vehicle for implementing the principles of the CDF in low-income countries. The accelerated preparation of PRSPs (including 29 Interim ones to enable countries’ preliminary qualification for debt relief under the enhanced HIPC framework) signals progress, but the strong participatory process, still to come in the Full PRSPs, will be crucial. The approach is still in its early stages; linking public actions to priority poverty reduction outcomes will be critical as the process evolves. Progress of a different kind—donor coordination— is reflected in the European Union’s decision to base its assistance to the Africa, Caribbean, and Pacific regions on the PRSP framework. Growing adoption of the PRSP approach attests to the expanding acceptance of CDF principles, which emphasize country ownership based on national consensus and strong participatory processes, longterm vision, results focus, and partnership. The Bank’s Poverty Reduction Support Credit (PRSC) will help implement these strategies. On May 31, 2001, the Board of the World Bank approved a $150 million PRSC for Uganda, the first IDA credit to support the implementation of a country’s poverty reduction strategy as set out in its PRSP
Finance. The Second Poverty Alleviation Microfinance P roject (IDA, $151 million) expands rural microcredit in Bangladesh to reach those who have to date been left out or underserved, while also ensuring that microlending will be sustainable into the future; 1.2 million new borrowers and 19,500 microentrepreneurs are expected to benefit. Education. The Mali Education Sector Expenditure Program (IDA, $45 million) is a 10-year program aimed at increasing gross primary enrollment from about 56 percent in 2000 to 95 percent in 2010, helping Mali’s future ability to respond to competitive market conditions. Transport. The Third Inland Waterways Project (IBRD, $100 million) will improve market access of, and power supply to, remote inland areas of China’s Hunan province and provide more economic inland waterway transport, reducing transport bottlenecks, strengthening institutional capacity, and benefiting nearly six million poor residents. Natural disasters. The Natural Disaster Management Project (IBRD, $404 million) will help reduce human, economic, and financial costs of natural disasters in Mexico by focusing on recovery and prevention of loss of life and infrastructure damage. Public sector reform. The Budget Systems Modernization P roject (IBRD, $24 million) will modernize and expand Algeria’s capacity for growth by promoting efficient, transparent, and effective governance. Environment. Russia’ s Coal and Forestry Sector Guarantee Facility (IBRD, $200 million) will help foster a better business environment in the coal and forestry sectors and support commercially viable enterprises. Water supply. The Rural Water Supply and Sanitation P roject (IDA, $20 million) will expand sustainable water supply and improve sanitation service coverage to over 400,000 of the Republic of Yemen's mostly poor rural population, improving health and freeing girls from water-fetching chores to attend school.
(see page 43). A PRSC for Vietnam was also approved in fiscal 2001. Support to middle-income countries. With the
support of Ministers at the Joint Bank-Fund Annual Meetings in September 2000, the Bank Group created a task force to consider how best to respond to the needs of middle-income countries (those eligible to borrow from IBRD). A clear consensus emerged from extensive consultations with client countries, shareholders, and other partners: the Bank Group has a crucial role to play in middle-income countries. With nearly 80 percent of people who live on under $2 a day residing in middle-income countries, any plan for successful global poverty reduction will require the Bank’s continued active engagement in these countries. The Bank’s global reach, broad sectoral knowledge, and specific private sector engagement through the IFC and MIGA enable it to provide strong support for sound policies and institutions; its financial support “crowds in” private capital and reduces vulnerability to market volatility; and, through its work in middle-income countries, the Bank gains valuable experience, informing its work in low-income countries. The task force highlights, however, the need for a catalytic and selective role, with the Bank focusing on assistance that others cannot or will not provide. At the Joint BankFund Spring Meetings in April 2001, Ministers welcomed the task force–based proposals put forward by the Bank noting that they would support more structured and streamlined Bank-Fund cooperation. Proposals included the strengthening of the Bank’s analysis of the country situation, including expanding, in concert with its partners, support for local capacity building; a deferred drawdown option for adjustment loans to reforming countries; and a more systematic and developmental role for adjustment lending. Support for global public goods. The 2000 Annual
Meetings also set near-term priorities for Bank engagement in global collective action: communicable diseases; environmental commons; economic governance and financial stability; trade and integration; and the information and knowledge revolution. The Bank has since moved forward in each of these areas, whose links to poverty reduction are strong. Progress has consisted of sharpening strategy, work-
ing with global partners on major initiatives, and integrating efforts into country-level work. An urgent task at the international level is to develop solid estimates of financing requirements for each priority area. That pending, the Bank is relying on innovative IBRD and IDA program and project lending to support strong national programs (such as the MultiCountry HIV/AIDS Program) as a basis for later global approaches, while also exploring a limited expansion of IDA’s grant capability and a restructuring of the Bank’s Development Grant Facility. The Bank’s approach toward global public goods is based on careful selectivity in priorities and partnerships, and measured deployment of resources. Sector Strategy Papers (SSPs). SSPs help organize
the Bank’s work on global priorities such as disease eradication or the environment. They are a launching point for promoting public action at the global level, pulling together global programs and partnerships, and providing incentives for client countries to take action. More generally, SSPs help shape the Bank’s approach and activities in a given sector or thematic area to enhance impact on poverty reduction and growth. SSPs also lay out strategic options for sector and thematic areas identifying aspects of relatively weak country performance for priority attention. They are developed with broad stakeholder consultation, and their implementation is regularly monitored. In fiscal 2001 the Board reviewed three SSPs, including: “Strategy for the Financial Sector,” “Reforming Public Institutions and Strengthening Governance: A World Bank Strategy,” and “Social Protection Sector Strategy: From Safety Net to Spring Board.” A CHANGING WORLD BANK Compact Assessment. In fiscal 2001 the Bank con-
ducted an assessment of the Strategic Compact, launched in April 1997 between the Bank and its shareholders to renew itself to become more effective, with $250 million in additional administrative resources over a three-year period. The Compact was ambitious in its time frame and scope; the challenge was heightened by unanticipated external developments—financial crises, post-conflict situations, and natural disasters—as well as the rising demands of partnership linked to the CDF-PRSP-HIPC work in many countries.
Overview
31
Table 1.2 The Changing World Bank Bank Group in 1996
Bank Group Today
Increased poverty focus ■ Understanding of poverty ■ Country-owned poverty reduction strategies
Economic focus —
Multidimensional focus 4 Full PRSPs, 32 Interim PRSPs
Broader development agenda ■ Comprehensive Development Framework ■ Anticorruption, good governance programs ■ Lending commitments to combat HIV/AIDS
— — $35 million
Pilots in 12 countries Programs in 95+ countries over $393 million
Response to war-torn and indebted poor countries ■ Post-conflict lending and advice ■ Debt relief operations ■ Total committed debt relief (nominal)
15 countries — —
35 countries 23 countries $34 billion over time (from all creditors)
Greater operational impact ■ Satisfactory project outcomes (% of total projects) ■ Share of projects at risk ■ Quality of economic and sector work (% satisfactory)
69% 29% 72% (FY98)
78% 12% 86%
Improved client service ■ Country directors in the field ■ Share of Bank staff in the field ■ Time for project preparation
0 out of 24 38% 24 months
29 out of 53 45% 15 months
More effective private sector promotion ■ Private provision component in infrastructure projects ■ IFC investment commitments ■ MIGA guarantee coverage ■ Joint Bank-IFC departments
21% $2.1 billion $0.8 billion —
39% $2.4 billion $1.6 billion 6
—
16
less than 30
about 110
None less than 50% $0.7 billion
87% more than 70% $1.4 billion
Increased knowledge sharing ■ Number of distance learning centers ■ Number of “communities of practice” supported by the Bank’s thematic networks Greater openness and participation ■ Published country assistance strategies (% of total) ■ Share of projects with civil society involvement ■ Community-driven development components in projects (estimated approximate value)
Broader product base ■ Lending product innovations ■ Financial product innovations ■ Advisory product innovations
Significant progress has been made, in a relatively short time. Under the Compact, the Bank was to refuel business activity, refocus the development agenda, retool its knowledge base, and revamp institutional capabilities. Important gains have been made in improving operational quality and expanding the Bank’s portfolio of products and services (table 1.2). A changed Bank has meant making “Spring Meetings” documents publicly available for the first time; well-coordinated support from the Bank Group, including the IFC, for small and medium enterprises; and speeding up response to clients during periods of crisis through a greater
32
The World Bank Annual Report 2001
Examples include learning and innovation loans, adaptable program loans, and IDA guarantees; single currency loans, and e-bonds; and institutional and governance reviews, and financial sector assessments
presence in the field. The Bank has also delivered on its commitment to return in fiscal 2001 to the fiscal 1997 net administrative budget in real terms. The efficiency gains foreseen under the Compact have proved more difficult to realize. A number of new priorities and processes have increased the complexity and—in the short term— the cost of doing business. Supervision costs are higher because of the greater emphasis on quality as well as compliance with safeguard and fiduciary policies; the costs of preparing CASs have risen in step with growing attention to stakeholder consultations and disclosure; and the introduction of services
Table 1.3 Aligning Resources with Corporate Priorities: Selected Items in the Bank’s Budget (millions of dollars) Fiscal 2001
Fiscal 2002
130
149
Higher fiduciary and safeguard standards
Lending
94
101
Increased emphasis on poverty reduction in Africa and South Asia
Country ESW
50
78
Increased funding for poverty assessments, public expenditure reviews, financial accountability as well as procurement assessments, and other key diagnostic work
Country Program Support
55
61
Continued support for PRSP preparation in low-income countries and policy dialogue in middle-income countries
Quality Assurance
19
23
Strong focus to maintain quality standards, attention to monitoring and evaluation
Selected Operational Support Services
54
42
Finance, administrative, and corporate services expected to decline as cost efficiency achieved
Project Supervision
such as PRSP support and Financial Sector Assessments has entailed significant added cost (see figure 1.2). The Bank has also faced higher costs in terms of the stress levels of staff, who played a crucial role in the progress made under the Compact. Lessons from the Compact experience are reflected in the Strategic Directions Paper (SDP) as well as in the Bank’s administrative budget for fiscal 2002, approved at the end of fiscal 2001 (see table 1.3). World Bank Institute (WBI). A major emphasis of
the “new” Bank is empowerment of people through knowledge and capacity building. Renewed during the Compact period, WBI is an important contributor to this objective (others being the Bank’s research and advisory services, its thematic networks’ “communities of practice,” and information technology–based efforts). WBI facilitates learning on development issues for staff as well as Bank clients—including policymakers, ministry staff, academics, and increasingly, parliamentarians, journalists, the private sector, nongovernmental organizations, and other segments of civil society. At the end of fiscal 2001, WBI was reaching 48,000 participants annually in client programs in about 150 countries through nearly 600 learning activities. Programs continue to be scaled up through distance learning, global knowledge networks, and extended partnerships, and by harnessing the newest learning technologies. Over the past year WBI developed an Attacking Poverty Program aimed at building national capacity to prepare and implement the PRSP process. WBI programs are having an impact, as seen in these examples:
Comments
■ A year-long anticorruption program in Paraguay (cosponsored by the U.S. Agency for International Development) culminated in an action plan approved by the country’s president, to be implemented by the government and civil society. ■ An independent evaluation has shown that students of the World Links Program, which links 100,000 students across 27 countries, have acquired new skills, knowledge, and attitudes— which explains growing demand from such countries as Peru, Senegal, Sri Lanka, and Turkey for scaled-up assistance. ■ As an outcome of a PRSP forum in Côte d’Ivoire, elected officials and civil society representatives of eight participating country delegations created regional networks to facilitate consultations on their poverty reduction efforts. ■ In an early example of WBI’s “wholesaling” policy, the Administrative Staff College of India regularly offers—now on its own—a course on resettlement policy originally designed jointly with WBI. Figure 1.2 Unit Cost of Operational Processes (thousands of dollars)
Overview
33
Development impact. The Strategic Compact’s ulti-
mate aim was to improve development outcomes. Clear gains are emerging. In the areas of human development, institutional strengthening, and postconflict assistance, for example, the Bank has helped: ■ In Ethiopia, to improve access by four million people to health and sanitation facilities, and access by 600,000 children—half of them girls— to school; ■ In Senegal, to advance prospects for more than halving the female illiteracy rate to 30 percent by 2005; ■ In Brazil, to achieve a 38 percent drop in the number of AIDS-related deaths since 1993; ■ In Mexico, to reduce the number of people with no health coverage from 10 million to 1.5 million; ■ In some Caribbean countries, to reduce telephone and Internet charges by up to 50 percent; ■ In Guatemala, to streamline the country’s financial management system and make its budget available online; ■ In Poland, to make corruption a high-profile issue; ■ In Tunisia, to cut the public share of hospital financing from 69 percent to 35 percent; ■ In Rwanda, to return to normal social and economic life some 1.3 million refugees of the civil war and to strengthen the country’s economic recovery; ■ In Bosnia and Herzegovina, to create 100,000 jobs through support for microcredit, following the brutal war of the early 1990s; ■ In East Timor, to set up 400 village development councils under a project that is already funding over 500 subprojects selected by the communities themselves. STRATEGIC FRAMEWORK AND FUTURE DIRECTIONS Strategic Framework. Aimed at building on the progress made under the Compact, a Strategic Framework Paper and an SDP were presented to the Board in fiscal 2001 (see page 9). The papers reiterate the Bank’s mission of fighting poverty, with the international development goals representing a prime commitment. They set out the two inter-related pillars that will underpin Bank assistance to countries and at the global level: building the climate for investment, jobs, and sustainable growth; and empowering poor people to participate in develop-
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The World Bank Annual Report 2001
ment. The SDP emphasizes a catalytic role coupled with the need for selectivity along three dimensions—within countries, across countries, and for global programs. The Bank will articulate in the CAS its selectivity within a country; use income, poverty, and performance as the key criteria for selectivity across countries; and be guided by corporate and global public goods priorities at the global level. In addition, the papers center assistance to low-income countries on CDF-based poverty reduction strategies as well as debt relief and post-conflict needs, while clarifying the Bank’s role in middle-income countries and at the global level. Role of partners. The strategy papers emphasize the
central role of collaboration with partners at the country, as well as global, level. Closely involving client governments, civil society, the private sector, and multilateral and bilateral partners at all stages and levels of country assistance—policy dialogue, formulation of Bank CASs, and design and implementation of lending and nonlending services—has become the norm. Collaboration with major institutional partners, such as the IMF and the United Nations (U.N.), has intensified. Operational cooperation and coordination with multilateral development banks (MDBs) has advanced significantly, and several technical working groups are launching efforts to promote coherence in approaches and harmonization of policies and procedures (on matters ranging from environmental assessments and financial management to corruption and gender). For global public goods, strategic partnerships with national governments, civil society, international organizations, bilateral donors, and the corporate sector have become fundamental to the Bank’s engagement. In many arenas, joint work with U.N. agencies, the IMF, and MDBs is crucial. Important examples are the Global Alliance for Vaccines and Immunization focusing on prevention of communicable diseases, the Financial Stability Forum helping to prevent and manage financial crises, the Prototype Carbon Fund that addresses climate change issues, the Global Development Gateway aimed at increasing access worldwide to development knowledge, and work with the World Trade Organization and other partners on integrating least developed countries into the multilateral trade system. Future Directions. For all the collective progress
noted in this report, the world has far to go to win the fight against poverty. The Bank Group has an important role to play. Core assets are its financial strength, experience and knowledge, global reach,
Table 1.4 Cumulative IDA Subscriptions and Contributions, as of June 30, 2001 Member United States Japan Germany United Kingdom France Canada Italy Netherlands Sweden Saudi Arabia Australia Belgium Denmark Switzerland Norway Top 15 donors Other members* Total
Millions of dollars 25,841.8 24,078.1 12,309.0 8,013.1 7,468.5 4,767.5 4,410.0 4,026.4 2,770.6 2,158.2 1,810.0 1,759.0 1,457.3 1,398.6 1,371.3 103,639.4 5,084.7 108,724.1
Percent of total 23.8 22.1 11.3 7.4 6.9 4.4 4.0 3.7 2.5 2.0 1.7 1.6 1.3 1.3 1.3 95.3 4.7 100.0
*For a complete list of other subscribers and donors, see IDA’s Special Purpose Financial Statements, page 75 of the World Bank Annual Report 2001: Volume 2, Financial Statements and Appendixes.
independence that enables objectivity, ability to integrate the major elements of sustainable development, and capacity to deliver services and resources to countries. Going forward, the Bank will maintain its global diagnosticcapacity across the whole range of developmental sectors, while being much more selective in its areas of implementationcapacity. Increasing effectiveness will continue to be a priority, built around a strong quality culture. Country focus will dominate Bank assistance, complemented by carefully selected cross-border and global issues. Measuring the Bank’s performance—particularly difficult in areas such as policy support and capacity building—will also be important, as will be the transparent reporting of results. As laid out in the Strategy Framework Paper, Bank assistance will emphasize governance as well as institutional and policy structures, including the regulatory framework for infrastructure, to create a positive investment climate—key to expanding jobs and achieving sustainable growth. It will equally emphasize the need to invest in people and empower them to participate in development, in part through community-driven development. Building poor people’s assets, promoting gender equality, and protecting the most vulnerable will all be central to the poverty reduction effort. Investment and adjustment lending will both be set in the context of a sound program of policy and institutional development, capacity building, and strong government commitment. Partnership, based on institutional comparative advantages will be key to progress at the country,
regional, and global levels. There is now unprecedented consensus worldwide on what is needed for poverty reduction. The Bank has called for a “compact” between rich and poor countries, with each doing its part. Rich countries need to increase market access to developing countries’ exports, and provide debt relief and new concessional finance for the poorest countries; developing countries, for their part, need to ensure sound policy and institutional environments to promote growth as well as the effective use of aid, making sure also that the benefits of growth reach poor people. The CAS will continue to spell out the Bank’s focused business strategy in support of a country’s program, working in partnership with governments and together with the IMF, MDBs, the U.N., bilateral agencies, the private sector, and civil society. The IDA-13 Replenishment, which is expected to be decided by the end of calendar 2001, will crucially guide the Bank’s efforts going forward; IDA donors (table 1.4) have been considering ways to increase aid effectiveness. Collaboration with the IMF will continue to be paramount. The agenda with MDBs includes harmonizing operational policies and division of labor on countries’ social and structural issues. Division of labor on global public goods will be the shared challenge in work with the U.N. The Bank will be flexible, explicitly stepping back where another partner’s comparative advantage is clear.
Overview
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Chapter 2
The Board of Executive Directors
The Executive Directors are responsible for the conduct of the World Bank’s general operations; they perform their duties under powers delegated by the Board of Governors. As provided in the Articles of Agreement, 5 of the 24 Executive Directors are appointed by the member countries having the largest number of shares; the rest are elected by the other member countries, which form constituencies in an election process conducted every two years. Executive Directors consider and decide on IBRD loan and guarantee proposals and IDA credit and guarantee proposals made by the President, and they decide on policies that guide the Bank’s general operations. They are also responsible for presenting to the Board of Governors, at the Annual Meetings, an audit of accounts, an administrative budget, and an Annual Report (this report) on the Bank’s operations and policies as well as other matters. Their oversight responsibility covers all Bank policies and activities, including approval of all lending and guarantee operations and the annual budget. In shaping Bank policy, the Board of Executive Directors (the Board) takes into account the evolving perspectives of member countries on the role of the Bank Group as well as the Bank’s operational experience. In this regard, an important role is played by the Operations Evaluation
From left to right: Andrei Bugrov, Girmai Abraham (seated), Finn Jønck, Balmiki Prasad Singh, Neil F. Hyden, Jean-Claude Milleron (seated), Matthias Meyer, Rosemary Stevenson* (seated), Terrie O'Leary, Philippe M. Peeters, Bassary Toure, Moises Pineda (seated), Pieter Stek, Jan Piercy, Helmut Schaffer, Jaime Ruiz (seated), Mario Soto-Platero, Mohamd Kamel Amr*, Ahmed Sadoudi (seated), Franco Passacantando, Yahya Abdulla M. Alyahya, Yuzo Harada (seated), Zhu Guangyao, Abdul Aziz Mohd. Yaacob. *Alternate Executive Director
Department (OED), which is accountable directly to the Board to perform professional evaluations as set out in OED’s Board-approved polices, strategies, and work program. OED provides independent advice to the Board on the relevance, sustainability, efficiency, and effectiveness of operations. During fiscal 2001 Executive Directors regularly met at Bank headquarters to carry out their responsibilities. Directors also serve on one or more of five standing committees: Audit, Development Effectiveness, Budget, Personnel, and Executive Directors’ Administrative Matters. The committees help the Board discharge its oversight responsibilities through in-depth examinations of policies and practices. Executive Directors and Alternate Executive Directors also periodically visit borrowing countries to review Bank assistance in progress. They meet a wide range of people, including project managers, beneficiaries, government officials, nongovernmental
The Board of Executive Directors
37
organizations (NGOs), the business community, other development partners, financial institutions, and resident Bank staff. In fiscal 2001 Directors visited Bhutan, Djibouti, Eritrea, Ethiopia, Latvia, Pakistan, Tajikistan, Turkey, and Uganda. Directors also play an active role in preparing the agenda and issues papers for the semiannual meetings of the joint Bank-Fund Development Committee. In fiscal 2001 the Development Committee addressed the World Bank’s strategy in middle-income countries, poverty reduction and global public goods, assistance to post-conflict countries, and a number of the issues discussed below. (For more detail, see appendix 12 in volume 2 of this Annual Report.) STRATEGIC ISSUES Major areas of Board emphasis during fiscal 2001 are highlighted below. Strategic Framework. During fiscal 2001 manage-
ment presented the Executive Directors with several papers on the strategic directions for the Bank Group for the fiscal 2002–04 period, including the Strategic Framework Paper, the Strategic Compact Assessment, and the Strategic Directions Papers for the Bank and the IFC. The Board reviewed the proposals, expressing strong support for increased selectivity in Bank activities to help member countries achieve the international development goals as a means to address more efficiently the central goal of poverty reduction. They also discussed several important policy papers—for example the Bank’s middle-income country strategy.
HIPC documents (covering 23 countries) under the enhanced framework (comprising 10 Preliminary, 16 Decision Point, and 2 Completion Point documents), and stressed the importance of full burden sharing by all creditors. 1 They also reviewed 3 PRSPs and 29 I-PRSPs, and expressed appreciation for the tangible progress made in implementation of the PRSP process. They suggested several areas for improvement, including better alignment of Bank assistance with countries’ own strategies and their implementation capacities. The Board also approved the first two Poverty Reduction Support Credits to Uganda and Vietnam. In addition, the Board reviewed papers on tracking poverty-related spending in HIPCs, and discussed the impact of debt reduction on long-term debt sustainability. The Board also discussed a number of sector strategy papers designed to help define the Bank’s role in poverty reduction at the sector level, including strategies for reforming public institutions and strengthening governance, social protection, and the financial sector. Country programs. Country Assistance Strategies (CASs) and the principles underlying the Comprehensive Development Framework and PRSPs continued to guide the Bank Group’s work at the country level. During the fiscal year the Board considered 37 CASs and related CAS products. Directors commended the greater focus on poverty reduction as the overarching goal, as well as the increasing use of consultative processes in preparing CASs. They also stressed the importance of the Bank’s increasing use of partnerships and selectivity at the country level.
Bank Group’s role in poverty reduction. The
Board continued to closely monitor implementation of the Bank Group’s poverty reduction mandate. Executive Directors reviewed a number of povertyrelated reports, including a paper on the operational implications of the World Development Report 2000/2001 on attacking poverty, and the annual Poverty Progress Report. The Board also focused considerable attention on implementation of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative for debt relief to low-income countries, as well as the related Poverty Reduction Strategy Papers (PRSPs) and Interim PRSPs (I-PRSPs) designed to ensure stronger links between debt relief and poverty reduction. Directors considered 28
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The World Bank Annual Report 2001
Global programs and partnerships. Participation
by the Bank in global initiatives and partnerships has increased significantly in recent years. In fiscal 2001 the Board discussed a framework for managing global programs and partnerships to reinforce countrylevel poverty reduction efforts. It reviewed several 1. Decision point: The point at which the international community agrees—for countries with unsustainable debt levels and a solid record on economic reform and poverty reduction programs—on the amount of relief needed to reduce outstanding debt to a sustainable level. Multilateral creditors, including IDA, begin providing significant “inter im assistance” beginning immediately at the decision point. Completion point: The point at which all creditors provide, unconditionally, the remainder of their share of debt relief agreed to at the decision point. The completion point is tied to implementation of key reforms and policies outlined in a country’s PRSP.
reports on global public goods. Executive Directors confirmed five priority areas for Bank engagement: communicable diseases, environmental commons, economic governance and financial stability, trade integration, and information and knowledge. They also discussed several initiatives within these priority areas, such as the Bank’s work with the IMF to strengthen the international financial architecture, with particular emphasis on the integrity of financial markets and the implementation of standards and codes. The Board discussed the Development Grant Facility, which provides grant financing for several of these initiatives, including activities relating to HIV/AIDS. The Board has also been involved in preparations for the United Nations High-Level Event on Financing for Development. In addition, the Board remained focused on the Bank’s engagement with civil society and NGOs, whose role in the discussion of development issues has become more pronounced. OVERSIGHT AND FIDUCIARY RESPONSIBILITY The Board exercises oversight and fiduciary responsibility on behalf of its shareholders, in part through its Audit Committee. The Committee reviewed its terms of reference to reflect the evolving duties and responsibilities of audit committees in an ever more complex and risky environment. The Committee advises the Board on financial risk management and other governance issues to facilitate Board decisions on policy issues. ADMINISTRATIVE BUDGET Following review by the Budget Committee, Executive Directors approved an administrative budget, net of reimbursements, for fiscal 2001 of $1,442.2 million. This total budget included an allocation of $146.9 million for the Development Grant Facility. The administrative budget was below the
level agreed on at the outset of the Strategic Compact despite increased demands on the Bank that had not been anticipated at the time of the Compact. In June 2001 the Executive Directors approved a total administrative budget, net of reimbursements, of $1,589.7 million for fiscal 2002. INSPECTION PANEL The Board created an independent Inspection Panel in 1993 to address more closely the concerns of people affected by Bank projects by ensuring that the Bank adheres to its operational policies and procedures in the design, preparation, and implementation of projects. Any group of individuals believing that they may be harmed by a Bank-supported project may ask the panel to investigate complaints that such harm stems from the Bank’s failure to abide by its policies and procedures. The Executive Directors decide, on the recommendation of the Panel, whether an investigation will take place. In fiscal 2001 the Board considered the Panel Investigation Report and the Bank Management recommendations on the Qinghai component of the China Western Poverty Reduction Project. No further Board action was taken after the Chinese government announced that it would undertake and finance the Qinghai component entirely with its own resources and on its own terms, as it could not accept additional conditionality. The Board approved and the Panel conducted two other investigations of projects in Kenya and Ecuador that looked at application of the Bank’s policies on environmental assessment, consultation with or participation by local people, and Bank supervision. In both cases, the Board approved management’s recommended actions in response to the Panel’s investigation reports. The Panel received two new requests for inspection concerning the Chad-Cameroon Pipeline Project and the Coal India Environmental and Social Mitigation Project.
The Board of Executive Directors
39
Chapter 3
Thematic Perspectives Addressing the Social, Institutional, and Economic Dimensions of Poverty 42 Investing in People
46
Promoting Environmentally and Socially Sustainable Development
49
Supporting Private Sector Development and Infrastructure
52
Building Strong Financial Systems, Addressing Vulnerabilities
56
Building Effective Legal and Judicial Systems
59
Addressing the Social, Institutional, and Economic Dimensions of Poverty
In fiscal 2001 the World Bank intensified efforts to address many of the social, institutional, and economic issues underlying poverty. In close partnership with the IMF, it accelerated implementation of a country-owned approach to development that firmly links poverty reduction to debt relief and concessional lending. It also promoted good governance and effective public institutions—both critical for sustained poverty reduction. In addition, the Bank is helping developing countries pursue gender equality and integrate into the global economy, while working at the global level to strengthen the international financial architecture. Much Bank lending to support improved economic management, policies, and institutions falls under the umbrella of adjustment lending. Adjustment lending promotes sustained growth and poverty reduction by supporting countries’ efforts to undertake structural and social reforms (see table 3.1, and table 8.14 in About the World Bank). ACCELERATING SUPPORT FOR POVERTY REDUCTION STRATEGIES In December 1999 the Bank and the IMF launched the Poverty Reduction Strategy Paper (PRSP)
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The World Bank Annual Report 2001
Poverty has many faces. It is hunger or homelessness. It is being sick and not being able to see a doctor. It is fear for the future, living one day at a time. And it is not having power, representation, or freedom.
Program to accelerate poverty reduction in lowincome countries. PRSPs provide the basis for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative and for concessional Bank and Fund lending. They identify key obstacles to poverty reduction and lay out a plan to overcome those obstacles, with mechanisms to monitor progress. The country-driven nature of PRSPs is the program’s most notable feature: the strategies are produced by the countries themselves in broad consultation with civil society and poor people—marking an important shift in culture for the Bank and the Fund. (See box 3.1.) The PRSP Program gained considerable momentum in fiscal 2001. A total of 29 countries presented Interim PRSPs (I-PRSPs), in many cases to qualify for preliminary HIPC debt relief. In addition, 3 countries presented their first Full PRSPs in fiscal 2001. Over the past year, the Bank has sought to better align its country assistance with countries’ visions and priorities as laid out in PRSPs. The Poverty Reduction Support Credit (PRSC) was introduced in fiscal 2001 to support an IDA-eligible
Box 3.1 Poverty-Reducing Spending in Full and Interim PRSPs All PRSPs and I-PRSPs seek to shift public spending toward poverty-reducing
country’s policy and institutional reform program to help implement its poverty reduction strategy (box 3.2). The PRSC is grounded in the principles of the Comprehensive Development Framework and the international development goals. It is derived from the PRSP, based on the Country Assistance Strategy, and underpinned by suitable analysis—environmental, social, structural, and fiduciary. Over time, it is expected to become an important vehicle of IDA financial support to low-income countries with strong programs, anchoring the Bank’s overall support for their poverty reduction strategies. The PRSP approach is still at an early stage. The process was conceived as a broad framework for engaging domestic stakeholders and external development partners, while providing a vehicle for improved aid coordination. Regional development banks, United Nations development agencies, most bilateral donors, the European Union, and many nongovernmental organizations have indicated support for the approach and an intention to work with countries in the PRSP process. At the same time, the process entails steadfast endeavor over the long term. Only when countries reduce poverty—an impact that can be observed only over a number of years—can PRSPs claim success.
programs. Most country strategies propose to: ■ Enhance access of the poor to primary education and health-care services, and ■ Emphasize infrastructure programs in water, roads, electricity, and telecommunications. Some also propose to: ■ Provide housing to the poor, and ■ Strengthen social safety nets to include food subsidies or other food security programs, social assistance programs, and labor-intensive public works. To monitor progress, some countries explicitly target yearly reductions in the incidence of poverty. Intermediate targets often measure progress in enrollment, infant mortality rates, incidence of communicable diseases, and, in some countries, gender disparities.
Box 3.2 The Uganda Poverty Reduction Support Credit On May 31, 2001, the Board of the World Bank approved a $150 million PRSC for Uganda to support the implementation of the country’s poverty reduction strategy set out in Uganda’s PRSP. The PRSC is the first of a planned series of three World Bank operations to support Uganda’s medium-term development and reform program. The President’s Report for the Uganda PRSC has been disclosed and made publicly available at the World Bank’s InfoShop. The Uganda PRSC, the first IDA credit supporting the implementation of a PRSP, supports policy and institutional measures in the government’s strate-
FULFILLING PROMISES OF ENHANCED DEBT RELIEF Fiscal 2001 was an important year for the HIPC Initiative. Building on enhancements in September 1999 emphasizing deeper, broader, and faster debt relief and stronger links to poverty reduction, debt relief was committed for an additional 16 countries: Benin, Cameroon, Chad, The Gambia, Guinea, Guinea-Bissau, Guyana, Honduras, Madagascar, Malawi, Mali, Nicaragua, Niger, Rwanda, São Tomé and Principe, and Zambia. As a result of the HIPC Initiative, the 23 countries that have reached their decision points1 under the enhanced framework will receive more than $34 billion in debt service relief over time from all creditors. This amount is equivalent in net present value (NPV) terms to nearly half of their total stock of external debt. In combination 1. Decision point: The point at which the international community agrees—for countries with unsustainable debt levels and a solid record on economic reform and poverty reduction programs—on the amount of relief needed to reduce outstanding debt to a sustainable level. Multilateral creditors, including IDA, begin providing significant “inter im assistance” beginning immediately at the decision point.
gy, with a focus on improving public service delivery through (1) efficient and equitable use of public resources, (2) improved governance through crosscutting public sector reforms, and (3) improved access to and quality of education, health care, and water and sanitation services. The PRSC builds on a broad range of economic and sector work carried out in Uganda—including household surveys, an enterprise survey, surveys to assess public service delivery and corruption, and diagnostic reports such as the Country Financial Accountability Assessment and Country Procurement Assessment. It supports the government’s anticorruption action plan and helps to create an effective incentive system to improve service delivery. The participatory process used to develop the government’s poverty reduction strategy that underpins the PRSP Program broadened the country’s ownership of the reforms, and a large number of partners are ready to support their implementation. The multisector, programmatic approach promotes Uganda’s ownership of its poverty reduction and public expenditure program and collaboration among local and external partners—with Bank support through the PRSC focused on policy and institutional reform measures with the highest poverty impact in those areas where the Bank has a comparative advantage. In addition, the approach helps reduce transaction costs in delivery of external assistance, strengthen budgetary institutions, and align external support for service delivery reforms with Uganda’s budget cycle, which is an essential ingredient for sustained institutional reform and poverty reduction.
Thematic Perspectives
43
with other sources of debt relief, their total outstanding debt is projected to fall by more than two-thirds. The year’s considerable progress was enabled by the intense efforts and dynamic cooperation of HIPC governments, official creditors, and civil society from around the world. The relief packages for the 23 countries were developed with country authorities and approved by the Bank and IMF Boards of Executive Directors in less than 16 months. As a result of the enhanced HIPC Initiative assistance, the annual public debt service burdens of the 23 countries over the next three years will be cut by roughly $1.1 billion, equal to 1.2 percent of GDP. As a share of government revenues, debt service will fall from 28 percent before HIPC relief to about 13 percent in 2001–02, freeing up resources for identified poverty reduction priorities, including social sector expenditures. Debt service payments will be reduced to about 2 percent of GDP, in comparison with 7 percent of GDP that these countries will be spending on social investments. Notwithstanding this progress, much work remains to be done to ensure the long-term sustainability of HIPCs. By delivering debt relief sufficient to reduce a country’s level of debt in NPV terms to either 150 percent of exports or 250 percent of government revenues at the decision point, the HIPC Initiative provides a robust basis for long-term debt sustainability. However, a permanent exit from debt rescheduling can only be achieved if the underlying causes that contributed to the debt problem are addressed. Hence, debt sustainability depends not only upon the absolute level of debt, but also upon a comprehensive set of policies that lead to poverty reduction and economic growth. REFORMING PUBLIC INSTITUTIONS AND STRENGTHENING GOVERNANCE Good governance and strong public institutions are increasingly seen as critical for development effectiveness. More and more, the focus of Bank assistance is on helping countries to design and implement good policies themselves. A new strategy, “Reforming Public Institutions and Strengthening Governance,” was published in November 2000; key new directions include emphasis on “bottom-up” empowerment and longer-term Bank lending to allow time for institutional reform.
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The World Bank Annual Report 2001
Among governance issues, public expenditure management has emerged as a high-priority area. Effective public spending is crucial for poverty reduction, and strong public expenditure management systems are essential to ensure that development assistance is utilized as intended. The Bank, with partners, is working on an integrated approach to improving the quality of expenditure management in poor countries. Since 1997 anticorruption activities have been increasingly integral and important components of the Bank’s public sector management portfolio, which represented 12 percent of the Bank’s commitments in fiscal 2001. Increasingly, efforts are aimed at not only assessing the quality of governance but also offering deeper insights into government performance and institutional arrangements. PROMOTING GENDER EQUALITY In fiscal 2001 the Bank published a major policy research report, Engendering Development—Through Gender Equality in Rights, Resources, and Voice . The main findings of the report—which benefited from extensive consultations with civil society, academia, and donors—place gender at the center of the Bank’s work on poverty reduction. The report shows that gender equality helps lower infant and child mortality, improve nutrition, and lower fertility rates; it is also associated with lower HIV/AIDS prevalence rates, less corruption in government, higher economic productivity, and faster growth—outcomes not traditionally linked to gender equality. With strong empirical evidence that gender inequalities tend to slow development, the Bank has begun drafting a revised strategy for better integrating gender into its assistance. Several regional consultations, including with client governments, international agencies, and civil society, are helping to inform this process. Priorities are converging on diagnosing gender-related barriers, creating gender-inclusive consultations, and working with country and external partners to identify and support appropriate action. HELPING COUNTRIES USE TRADE FOR DEVELOPMENT Trade plays an important role in growth—and therefore poverty reduction. The Bank’s three-pronged approach comprises analysis of impediments to
trade, advocacy of better trade policies that support development, and advice to policymakers. In fiscal 2001 the Bank engaged in research and dissemination of studies demonstrating the crucial importance of opening developed-country markets to goods from developing countries. The Bank is also helping developing countries use the multilateral trading system more effectively through policy analysis, training, and a handbook for trade negotiators. A new sourcebook of information on trade aims to help client countries prepare PRSPs. In addition, two ongoing research programs, on general trade policies and agriculture, provide assistance to countries in identifying priorities for reforms at both the national and multilateral levels. STRENGTHENING THE INTERNATIONAL FINANCIAL ARCHITECTURE The term “international financial architecture” refers to the financial and institutional arrangements that are critical to help countries avoid and mitigate crises, integrate into the global economy, and develop successfully. The Bank’s role in this area has three dimensions: ensuring that developing country perspectives are brought to bear on discussions on international norms and governance; helping developing countries integrate into the international
economic and financial system; and diagnosing the social and structural obstacles to successful development as a basis for Bank assistance. The Bank has been working closely with the IMF on initiatives that will help developing countries benefit from the global economy. The Financial Sector Assessment Program identifies financial system strengths and vulnerabilities (page 57). Under the Reports on the Observance of Standards and Codes (ROSC) Program, the Bank prepares assessments in its traditional areas of expertise; ROSCs summarize the extent to which countries observe certain internationally recognized standards that can help improve economic policymaking and strengthen the international financial system. In fiscal 2001 146 ROSC assessments were completed, 94 of which were published. The Bank has also collaborated with the IMF and other partner organizations to develop a set of principles and guidelines for effective insolvency and creditor rights systems. In fiscal 2001 the Board and the Development Committee agreed that the Bank would, with partners, carry out a series of experimental country insolvency assessments under the ROSC Program. A third area of collaboration relates to preparation of studies on external debt management that will help construct a set of core principles for sovereign debt management.
Table 3.1 World Bank Adjustment Commitments, Fiscal 1999–2001 Adjustment Commitments by Region
Africa East Asia and Pacific Europe and Central Asia Latin America and the Caribbean Middle East and North Africa South Asia IBRD and IDA Adjustment Commitments IBRD IDA Total Adjustment Loans and Credits Total World Bank Lending Commitments IBRD IDA Total IBRD plus IDA Share of Adjustment Loans and Credits
Fiscal 1999 $ Million Percent
Fiscal 2000 $ Million Percent
Fiscal 2001 $ Million Percent
769 5,712 3,372 4,445 680 350
5 37 22 29 5 2
495 552 950 2,860 251
10 11 18 56 5
909 250 1,132 2,788 185 500
16 4 20 48 3 9
13,937 1,391 15,328
91 9 100
4,426 682 5,108
87 13 100
3,937 1,826 5,763
68 32 100
22,182 6,813 28,996
10,919 4,358 15,276 53
10,487 6,764 17,251 33
33
Note: Numbers may not add to totals because of rounding.
Thematic Perspectives
45
Investing in People
Two million children die every year from vaccinepreventable diseases. About three million people lost their lives in the year 2000 from HIV/AIDS. Many people living in poverty lack basic health and education, are vulnerable to crises, and have little personal income or savings. The world’s human development needs are staggering. The World Bank remains the largest external financier of human development programs. It recognizes that healthy and educated people are the backbone of sustainable economic growth and central to any strategy for achieving the international development goals. Through lending and nonlending services, it helps countries invest in and provide social safety nets for their people—efforts that help alleviate some of the worst consequences of poverty while increasing people’s chances to improve their own well-being. In fiscal 2001 new lending commitments for education, health, and social protection amounted to $4.4 billion (figure 3.1). Nonlending services ranged from analytical work and sharing of best practice to support for preparation of people-focused poverty reduction strategies and considerable work at the global level, with multiple partners, to intensify the fight against communicable diseases in particular. The Bank also helped clients better integrate human development concerns into overall poverty reduction efforts in fiscal 2001. The first Poverty Reduction Support Credit provided Uganda interestfree, medium-term multisector support for delivery of basic education, health care, and water and sani-
Figure 3.1 Lending for Human Development, Fiscal 2001 Total of $4.4 billion (millions of dollars)
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The World Bank Annual Report 2001
Children’s attendance at underperforming rural public schools in Bangladesh has improved dramatically after government efforts to involve nongovernmental organizations in the schools’ day-to-day operation and maintenance. The government is especially emphasizing girls’ education, with support from the Bank.
tation services, combined with broad public sector reform (see page 43). In addition, education projects addressing health, nutrition, and child labor issues demonstrate efforts to take advantage of synergies across social sectors (box 3.3). THE EDUCATION AGENDA: FOCUSING ON ACCESS, QUALITY, AND GENDER CONCERNS Education empowers people, enhances opportunities for greater participation in the labor market, and promotes security. The Bank’s education strategy focuses on efforts proven to make a difference in increasing access to schooling and improving the quality of education. The Bank has also committed to building human capacity for the knowledge economy. A key thrust is to help countries eliminate gender disparities in primary and secondary education by 2005. At $1.1 billion, Bank lending for education in fiscal 2001 was 1.5 times its fiscal 2000 level. The increase reflects the Bank’s commitment—together with the United Nations Educational, Scientific and Cultural Organization, United Nations Development Programme, United Nations Children’s Fund (UNICEF), and United Nations Population Fund— to scale up its support to countries’ education systems, following the April 2000 World Conference on Education for All (EFA). New projects supported improved access, quality, efficiency, and equity at
Box 3.3 Focusing Resources on Effective School Health (FRESH) Education for All (EFA) is about getting all children into school and keeping them there. Poor and disadvantaged children are the ones whose participation is most compromised, by ill health and malnutrition. FRESH is a multicountry, multipartner program launched at the April 2000 World Conference on EFA, aimed at forging cross-sectoral linkages between education and health sectors. There are now 22 projects in the Africa region that
help countries address digital divide and information communications technology issues. Collaboration with the private sector will further benefit from the IFC’s new education strategy, which sees these players as partners in helping alleviate financial constraints, enhance social mobility, improve equity, encourage innovation, and promote effectiveness.
include a school health and nutrition component using the FRESH framework. Conceived as an effective program to respond to a need, it is beginning to increase the efficacy of other invest-
EXPANDING EFFORTS TOWARD A HEALTHY GLOBAL POPULATION
ments in child development, promote better educational out comes, and achieve greater social equity, while also being cost effective. Highlights of FRESH follow: ■ It helps countries develop the school health components of social sector projects, emphasizing health-related school policies, provision of safe water and sanitation, skills-based health education, and school-based health and nutrition services. ■ It allows an international exchange of information on school health and aims at a common vision of school health among development agencies. ■ It serves to accelerate implementation of HIV/AIDS- and malaria-prevention activities in the education sector.
the primary, secondary, and vocational levels; an area of focus was distance learning. As of June 30, 2001, the Bank had 64 active education projects that address girls’ education. For example, innovative and effective programs are being implemented in Bangladesh to benefit secondary school girls, and in India to benefit primary school children. Results are improving: under a project in Guinea, for example, girls’ enrollment increased moderately to 49 percent in 2000–01 from 44 percent a year earlier. The Bank is also helping improve adult—especially female— literacy in several countries. The Bank also provides varied nonlending support for education. In fiscal 2001 such efforts included analytical work, synthesis of good practice, and capacity building, as well as technical support to help countries prepare Poverty Reduction Strategy Papers. Major policy issues identified to be in early need of attention were education finance, teacher training and pay, and coverage (to widen access). Strategic alliances constitute another important form of support. In fiscal 2001 the Bank worked with donor, nongovernmental organization (NGO), and private sector partners to support the Focusing Resources on Effective School Health (FRESH) program in Africa (box 3.3), and with the private sector in particular to
In fiscal 2001 Bank lending to help countries improve health outcomes and health systems performance, and to promote sustainable financing of health care, amounted to $1.3 billion. Significant support was directed toward combating the HIV/AIDS epidemic and other communicable diseases, the former evolving rapidly from a health issue into a formidable development challenge for many countries, especially in Africa (see also pages 27, 67, and 103). The Multi-Country HIV/AIDS Program for Africa and a similar multicountry program for the Caribbean earmarked $500 million and $155 million, respectively, for HIV/AIDS projects that support the scaling up of national prevention and care programs. Total Bank support for HIV/AIDS prevention, treatment, and care in stand-alone projects, as well as components in other projects, amounted to $393.6 million in fiscal 2001, and to $851.5 million over the last five years (see footnote e to table 1.1 on page 26). The Bank has also accelerated its efforts to combat malaria and tuberculosis, diseases that are preventable but which are leading killers of poor people. The Bank also continued to help countries improve nutrition and reproductive health outcomes. Efforts to support nutrition focused on its links to poverty, its impact on learning and productivity, and women’s nutrition. The Bank’s work in reproductive health emphasized the impoverishing effects of unplanned pregnancy, maternal mortality and morbidity, and sexually transmitted diseases. Operational tools, such as practice guides on condom procurement and contracting for delivery of reproductive health services, are helping to improve outcomes. And to arrest the growing health burden posed by noncommunicable diseases, the Bank’s work on the economics of tobacco control is helping to demonstrate that taxation, together with nonprice measures (for instance, advertising bans), can reduce smoking and save lives without negatively affecting the economy.
Thematic Perspectives
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Box 3.4 Multidimensional Support for Social P rotection Lending for social protection has grown over the past several years, especially in fiscal 1999 in response to the Asian crisis. Bank support for this aspect of human development encompasses a wide range of activities: ■ Providing training, with the World Bank Institute and to participants worldwide, on how labor market policies and social safety nets can be designed and implemented to reduce poverty and mitigate the risks facing the poor. ■ Working with the International Labour Organisation and UNICEF to improve child labor data and assess the impact of anti–child labor efforts, and with IFC in its assistance to private sector clients in helping end child labor. ■ Bringing pension reform tools to Argentina to broaden support of the elderly, to India to devise coverage for the informal sector, and to Senegal to reduce fiscal costs and free up resources for other urgent needs. ■ Building on the experience of social funds to give communities greater control over the decisions and resources that affect their lives, including emergency responses to natural disasters in Madagascar and Cambodia this year. ■ Through a pilot social risk and vulnerability assessment in the Latin America and Caribbean region, identifying two extremely vulnerable groups generally unprotected by existing programs: children 0 to 5 years old facing serious health and developmental risks, and youth aged 15 to 24 years old, who are susceptible to dropping out of school, unemployment, violence, and crime.
PROTECTING THE MOST VULNERABLE Natural or manmade shocks can devastate poor families, robbing them of security, income, and productivity. Social protection—risk reduction and mitigation, and coping—measures are essential to making the poor less vulnerable. Such measures seek to help individuals, households, and communities better manage risks, and to provide support to the critically poor. In fiscal 2001 these measures helped countries build viable pension systems, develop equitable and inclusive labor markets, eliminate child labor, and rely on social safety nets and social funds to reach vulnerable groups (box 3.4). Lending for social protection continued to grow in fiscal 2001, amounting to $1.9 billion, compared with $1.5 billion last year.
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A Bolivian child is immunized. Through policy dialogue, lending operations, and partnerships such as the Global Alliance for Vaccines and Immunization, the World Bank is intensifying its role in communicable disease prevention and control.
The Bank adopted a new Social Protection Strategy in September 2000, prepared following extensive consultations with governments, donors, United Nations agencies, NGOs, and civil society. The strategy benefits from an analysis of vulnerability and proposes reliance on pilot social risk and vulnerability assessments as well as a methodology for social expenditure reviews that would enhance the coverage and impact of social protection programs.
Promoting Environmentally and Socially Sustainable Development
For the World Bank, promoting sustainable development means improving the linkages between poverty alleviation and the environment. It means enhancing food security, the overall well-being of rural people, and the sustainable use of natural resources. And it means ensuring greater civic engagement, particularly by the most vulnerable groups in society. POVERTY AND THE ENVIRONMENT— IMPROVING THE LINKAGE Environmental degradation poses great harm to developing countries, which suffer annual losses of productivity and natural capital as high as 4 to 8 percent of GDP. Over the past year, the Bank’s environmental work has been informed by global consultations with institutions, governments, nongovernmental organizations (NGOs), civil society, and the private sector, through in-country workshops as well as electronic and Web-based discussions. With country and external partners, the Bank seeks to help improve the: ■ Quality of life—by reducing environmental health risks and vulnerability to environmental hazards. ■ Quality of growth—by promoting sustainable management of resources, such as forests, land, and water, as an essential condition for long-term and lasting improvements in people’s well-being. ■ Quality of the global environmental commons— by pursuing efforts targeted to benefit developing countries and local communities. The Bank is exploring how environmental work can be better designed to improve health outcomes. Analysis in fiscal 2001 with India’s Andhra Pradesh state, in collaboration with the World Health Organisation and donors, examined the effects of poor household environments and lack of basic infrastructure on public health. The analysis influenced the state’s priorities in sector planning. At a regional level, “Cleaner Transport Fuels for Central Asia and the Caucasus,” a two-year study, resulted in a commitment by authorities to improve fuel quality, monitor vehicle emissions, and establish new regulations.
More than 430 million people live in countries with water stress or scarcity, which threatens to increase fivefold by 2050, constraining economic growth and posing a risk to livelihoods and security.
Progress was made on the Nile Basin Initiative—a regional partnership that brings together 10 African countries for the sustainable development of Nile waters (see page 93). The Bank is also working actively at the global level, with multiple partners, recognizing that a large number of environmental concerns cannot be addressed purely at the country level (see page 103 for examples of partnerships in the environment area, and page 21 for a description of the Prototype Carbon Fund). As an implementing agency of the Global Environment Facility (GEF) and the Multilateral Fund of the Montreal Protocol, the Bank continues to work with the United Nations
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Development Programme, United Nations Environment Programme, and United Nations Industrial Development Organization to help countries address global environmental challenges and meet their international environmental obligations. SUSTAINING LIFE About 1.2 billion people live on less than $1 a day, and 800 million people go to bed hungry every night; most of them live in rural areas. Slowing and reversing the decline in the natural resource base and improving the productivity of agriculture are imperatives for Bank assistance. The Bank is basing its rural work over the past year on three pillars—enhancing the social and economic well-being of rural people, improving food security, and ensuring the sustainable use of natural resources. Supplementing the rural work is the Bank’s attention to the forestry sector, aiming to harness the potential of forests to reduce poverty, integrate forests in sustainable economic development, and protect global forest values. The Bank is involved in partnerships and special initiatives, such as the World Bank–World Wide Fund for Nature Alliance for Forest Conservation and Sustainable Use, in which the Bank has invested close to $2 million. The Alliance aims at three targets by 2005: 50 million hectares of new forest protected areas, a comparable area of existing but highly threatened forest protected areas secured under effective management, and a global target of 200 million hectares of production forest under independently certified sustainable management. The Chief Executive Officer Forum on Forest Industry and Conservation—chaired by Mr. Wolfensohn—is a private sector–civil society dialogue process with ambitious objectives for improved forest management and forest conservation. In fiscal 2001 the Bank actively supported efforts to sustain life in rural areas. A financial systems support project will increase access to microcredit in poor rural areas in Romania, for example, while support for farmed marshlands, commercial and export agriculture, and agricultural services delivery will help Rwanda on its road to recovery. Total lending for rural development rose to $2.2 billion in fiscal 2001, compared with $2.1 billion in fiscal 2000. Efforts at a global level are aimed at scaling up development impact. In fiscal 2001 the Bank
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approved a grant to be used through the Global Mechanism of the Convention to Combat Desertification, which will help member countries combat desertification and mitigate the effects of drought by engaging civil society and the private sector. Through the GEF, the Bank is also coordinating the Africa Land and Water Initiative Action Program to reverse the rapid trends of land and water degradation in Africa through comprehensive approaches. The Bank is also contributing to efforts to double global food production to feed an additional 2.9 billion people by 2050. With the growing scarcity of land and water, future increases in food supplies have to come from increased productivity (rather than expanded cultivation and irrigation). Supported by 58 public and private sector members, including the Bank, the 16 international research centers that make up the Consultative Group on International Agricultural Research (CGIAR) are at the forefront of mobilizing modern agricultural science on behalf of the world’s poor and hungry (see page 103). CGIAR technologies support the Bank’s rural lending programs to alleviate hunger and poverty, improve rural productivity and raise agricultural incomes, manage natural resources sustainably, and build partnerships with national agricultural research programs. In fiscal 2001 the CGIAR launched a fast-track, participatory reform process toward a revitalized, world-class knowledge network—an agile South-North partnership that works at the frontier of science for the poor and provides public goods research. DEALING WITH THE SOCIALDIMENSIONS OF POVERTY Sustainable development also requires addressing the social dimensions of poverty—that poor people must have more say and participate as equal partners. The Bank is working to improve the quality of such operations and is developing a methodology for including social dimensions in programmatic lending. A review in fiscal 2001 found that good social assessments are helping promote social inclusion, participation, and ownership in Bank operations. Helping countries affected by conflict— frequently in partnership with other agencies—is a fast-growing priority for the Bank. People affected by conflict are among the most vulnerable to poverty and ill health, including HIV/AIDS. Conflict and violence remain among the most pressing social and
Box 3.5 Community-Driven Development (CDD): Making Progress Last
economic problems in several parts of the world: 16 of the world’s 20 poorest countries are in—or are just emerging from—conflict, and some 35 others may currently be considered affected by conflict. Reconstructing societies after conflict is as much, if not more, about helping people rebuild their lives and meet their social and political security needs as it is about repairing physical infrastructure. Given its overall mandate, the Bank hopes to contribute to conflict prevention in two ways: by providing assistance that may help countries become more resilient to eruption of violent conflict, for instance through strengthened capacity to address root causes and trigger issues; and by strengthening its own and partners’ sensitivities to the potential positive and negative impacts of conflicts on development policies and programs. The Bank provides substantial lending and nonlending support to countries emerging from conflict, particularly in Africa, ranging from comprehensive reconstruction packages to small grants from the Post-Conflict Fund. Examples include a program to help Eritrean excombatants demobilize and re-integrate into normal life, and another to promote the transition from conflict to peace in Mindanao, in the Philippines. The Bank’s new operational policy, “Development Cooperation and Conflict,” guides its work in countries affected by conflict. The Post-Conflict Fund has, since 1997, provided financing for early phases of Bank work in post-conflict situations, with $29 million in grants allocated to more than 30 countries. Over the past year, and with increased bilateral donor financing, this fund has supported projects in East Timor, Eritrea, and Georgia. Cultural identity is another essential part of empowering communities to take charge of their own destinies. The Bank continues to promote, currently through over 80 stand-alone or component operations, efforts that recognize the role of culture in poverty reduction. Examples include a cultural heritage management project in Eritrea, and a project in China to upgrade urban infrastructure. SHARPENING THE TOOLS FOR SUCCESS Strengthening the safeguard system. The Bank’s
environmental and social safeguard policies are designed to prevent and mitigate undue harm, to people and their environments, that may potentially result from Bank operations. In fiscal 2001 the Bank restated its operational policies to ensure greater clar-
Among the many dimensions of po verty are vulnerability, powerlessness, and exclusion. The World Bank has increased its support for CDD, an approach explicitly identifying a role for communities, society groups, and local people in development efforts. Support for CDD is significant and growing: new commitments amounted to roughly $1.4 billion in fiscal 2001. The Bank intensified support to all regions for CDD in fiscal 2001. It has undertaken a major effort in 17 African countries to increase funding of community groups and elected local governments to enable their greater participation in policy and institutional reform. Similar efforts are ongoing in East Asia (Cambodia, East Timor, Indonesia, Vietnam), Eastern Europe (Albania, Armenia, Romania), and Central Asia. In South Asia and Latin America, the CDD portfolio continues to expand.
ity and reflect important lessons learned, appointed regional safeguard coordinators, established a safeguards “helpdesk” for staff, and upgraded the safeguards training program. Participation and civic engagement. The Bank increasingly recognizes that inclusive, participatory development is key to more equitable and sustainable development. Over the past year, it sponsored events on civic engagement and participatory approaches, with participants representing governments and NGOs in about 40 countries. Civic engagement is a vital underpinning of the Poverty Reduction Strategy Paper Program and also central to the Community-Driven Development (CDD) approach, which is about transferring funds to community groups so that they can invest in their own development priorities, as well as ensuring poor people’s access to information to enable them to make informed investment decisions and engage in entrepreneurial activities (box 3.5). Science and technology (S&T). Dealing effectively
with urgent global issues—communicable diseases, environmental degradation, or food security— requires increased scientific and technological capacity. The Bank is looking to S&T to help provide solutions to the most pressing needs of poor people. Looking farther out, the Bank aims to improve reliance on knowledge to inform development policies and to build capacity in client countries to generate and use knowledge on their own. Thematic Perspectives
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Supporting Private Sector Development and Infrastructure
Private markets are crucial for economic growth. But well-functioning private markets do not always develop spontaneously; they depend on sound institutional and policy environments. Growth, while the best way out of poverty, is not always enough for all to escape it. Efforts are needed to ensure effective social safety nets. Responding to these dual considerations, the World Bank’s private sector development effort aims to help countries strengthen their investment climates and improve the delivery of infrastructure services to poor people. New lending to support private sector development and infrastructure amounted to $5.6 billion, with the active portfolio at $47.3 billion as of June 30, 2001 (figures 3.2 and 3.3). STRENGTHENING THE INVESTMENT CLIMATE Economies open to trade and foreign investment flows and bound by the rule of law tend to grow
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Opportunity for jobs and entrepreneurial activity in the private sector is critical for the poor. Hence the pervasive importance of small informal activity, microfinance services, and small and medium enterprises, such as this one in Azerbaijan.
faster (box 3.6). Moreover, foreign direct investment flows to developing countries continue to substantially exceed official aid flows (figure 3.4), although, particularly since the Asian crisis, these flows have been concentrated in a few middle-income and large countries. To help more countries attract private investment, the Bank is developing systematic methodologies to identify investment barriers and monitor progress on corrective efforts. In fiscal 2001 the joint Bank-IFC Foreign Investment Advisory Service continued its foreign direct investment surveys in places as diverse as East Timor, Nigeria, and the Russian Federation. Such surveys—showing, for example, that the
absence of land markets, an intrusive tax regime, and excessive foreign currency and customs regulations are impeding foreign investment in the Russian Federation—are helping authorities develop corrective strategies. The Bank is also strengthening its support for small and medium enterprise (SME) development. A joint Bank-IFC SME department formed in fiscal 2000 is blending the Bank’s business-climate policy expertise with the IFC’s transaction and companylevel experience. In Bosnia and Herzegovina, for example, IFC’s links with local business have fostered policy dialogue between firms and government. Joint Bank-IFC work is promoting the investment climate for mining in low-income countries while encouraging environmental and social initiatives. A fiscal 2001 project in Mozambique, for example, will not only catalyze private investment but also promote private provision of infrastructure, HIV education, and SME support services to local communities. The Bank is also helping build Mozambique’s mining institutions, while improving the efficiency, capacity, employment, and environmental impact of the mining sectors of Poland and Ukraine.
Figure 3.2 Lending for Private Sector Development and Infrastructure, Fiscal 2001 Share of total new commitments of $5.6 billion
Note: Total includes a multisector share of less than 1 percent.
Figure 3.3 Portfolio of Active Projects in Private Sector Development and Infrastructure as of June 30, 2001 Share of total of $47.3 billion
SUPPORT FOR INFRASTRUCTURE: STRENGTHENING PRIVATE PARTICIPATION, SERVICES FOR THE POOR Infrastructure has multiple links to poverty reduction. Improved infrastructure can help create jobs and raise worker productivity. It can save time and human effort in transporting water, crops, wood, and other commodities. It can also improve health (by reducing indoor air pollution and emissions in urban areas and making clean water available) and education (by expanding access to schools, computers, and lighting). The Bank provides advice, finance, risk mitigation, and knowledge and information services to help countries improve their infrastructure. A major objective relates to the design of sound legal and regulatory frameworks to promote private participation. While lending support (typically to middleincome countries) tapers off as they gain increased access to private finance, it will continue to be important—together with technical assistance for sector reform—in countries where such access remains limited. Subsector highlights for the year are noted below.
Figure 3.4 Net Long-Term Resource Flows to Developing Countries, 1991–2000 (billions of dollars)
Source: World Bank. 2001. Global Development Finance 2001, p.36. Washington D.C. Note: 2000 data are preliminary. Net long-term resource flows are defined as net liability transactions or origional maturity of greater than one year.
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Box 3.6 Open Economies Grow Faster Research shows that the top developing country performers in
example of Bank support for innovation and private sector involvement; the project is being replicated in Brazil, Chad, Guatemala, and Uruguay.
terms of expanded foreign trade and investment (a group including India, China, and Mexico) enjoyed good growth in the 1990s, while the rest of the developing world, as a whole, did poorly. The result was partly an outcome of trade liberalization, but also depended on factors such as the rule of law and corruption, infrastructure investment, and streamlining of government regulations.
GDPper Capita Growth Rates (percent)
Sources: Dollar, David. 2001. “Improving the Investment Climate in India.” World Bank. “Concept Note.” Mimeo. Washington, D.C.
Water. Key priorities were to maximize the develop-
mental impact of ongoing projects and ensure the quality of projects under preparation. For urban water and sanitation projects, this strategy has meant a shift toward competitive private management and financing of such services to improve utility performance and leverage the Bank’s financial products. Rural projects are emphasizing greater user involvement, not only in designing and implementing but also in contributing resources to the project. Transport. Support to the sector in fiscal 2001
reflected the Bank’s dual emphasis on private participation and service provision for the poor. Assistance to Brazil helped extend rail concessions to urban railways while ensuring that the benefits of urban mass transit investments reach poor people. In India, the Bank supported the development of the Delhi-Noida Bridge, the country’s first major publicprivate toll bridge concession. A successful road maintenance project using multiyear output-based contracts, just closed in Argentina, offers another
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Urban support. Demand for lending and nonlending services has been growing, spurred by a fiscal 2000 sector strategy and the Cities Alliance partnership (see page 104). Many urban projects help regularize land tenure in slums and provide basic infrastructure services. Reflecting a new generation of projects aimed at scaling up efforts, a fiscal 2001 project in Mauritania has established a national slum-upgrading program, launched it in five cities, and created a national land-development program for low-income residents. Telecommunications. The Bank’s support for telecommunications reform continues to lead to dramatic increases in private investment in telecommunications and public access to telephones. In Peru, over the course of Bank-supported reforms, investment increased from $28 million of public investment in 1993 to over $2 billion in private investment in 1998, while the share of poor households in Lima with a telephone increased from 1 to 21 percent. In Mauritania, the sale of the first mobile license and privatization of the state-owned operator, both with Bank assistance, have set records for telecommunications privatization proceeds in Africa and opened the way to full competition. The Bank is also supporting private provision of rural telephone services in Bolivia, Nepal, and Uganda, and community Internet access in Thailand—through efforts patterned after a Chilean model that expanded access from 85 to 99 percent of the population at modest cost to the public. Energy. A new energy business renewal strategy emphasizes market-based efforts to improve access to cleaner energy for poor people; energy tax reform to promote fiscal stability and cleaner fuels; and support for good governance and private sector development in the energy sector. Important nonlending work over the year included a review of Nigeria’s petroleum sector and support to India and Bangladesh for use of cleaner fuels for indoor cooking to improve women’s health. A new global study on petroleum product taxation will help advise governments on how best to avoid adverse effects on the poor in structuring taxes and subsidies. Joint Bank-IFC support to Pakistan,
meanwhile, for sector reforms, and private participation to develop local gas resources, should save the country large sums on imported oil.
Box 3.7 Output-Based Aid Ensuring maximum impact from aid projects and government spending is a common concern of donor agencies and develop-
PROVIDING GUARANTEES TO INCREASE CLIENTS’ ACCESS TO PRIVATE CAPITAL In fiscal 2001 the Board approved a partial credit guarantee for the Bolivia-Brazil gas pipeline, which has opened up Bolivia’s huge gas potential and expanded energy markets in Brazil. Also this year, the Bank issued a $158.8 million IBRD policybased guarantee for Colombia to help raise $1 billion at a time when U.S. capital markets were virtually closed to comparably rated borrowers. In April 2001 financing closed for the Haripur power project in Bangladesh, with backing from an IDA partial risk guarantee that played a catalytic role in mobilizing first-time, long-term funding from leading international banks. In addition, the Bank introduced guarantee facilities to facilitate export credits to private sector exporters in Africa, and similar support is under preparation to help the Russian Federation rehabilitate its forestry and coal sectors. UPDATING THE BANK’S PRODUCTS AND STRATEGY In fiscal 2001 the Bank Group engaged in substantial analytical work and consultations toward development of a new private sector development strategy. Areas analyzed include the respective roles of the public and private sectors in development and the link between private sector development and poverty reduction. The private sector development and infrastructure portfolio accounts for about 45 percent of the
ing-country governments. Output-based aid advances this objective by focusing on more efficient, and better-targeted, service delivery rather than on the construction of facilities (as in traditional aid-funded projects). A number of developing countries already rely on outputbased aid approaches: ■ Subsidies for water services to Chile’s low-income households flow to service providers only when a qualifying household has received and paid for the service. ■ Bangladeshi field-workers who educate mothers on oral rehydration techniques to reduce infant mortality are paid wages that depend on how well the mothers can remember how to make and administer rehydration solutions. ■ Peruvian telecommunications companies compete to expand and sustain services in rural areas, on the basis of the smallest level of subsidy required to serve rural consumers.
Bank Group’s total portfolio. The content of such work is changing (figure 3.3). It is shifting away from traditional investment lending to a new mix of advisory services (some of it fee-based), phased medium-term lending, and catalytic investment projects increasingly financed by IFC and MIGA with policy support from the Bank. One such example relates to output-based aid (box 3.7). An emerging knowledge product is the Rapid Response Unit Web site (rru.worldbank.org 8 ), which offers clients online “selfhelp” and “helpdesk” services, together with customized fee-based service for small advisory transactions.
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Building Strong Financial Systems, Addressing Vulnerabilities
A strong financial system is an essential building block for a sound investment climate, job creation, and sustainable growth. By improving poor people’s access to financial resources, a well-functioning financial system directly supports their climb out of poverty. It also spurs growth and reduces the likelihood and cost of financial crises; in this respect, its impact on poverty reduction is indirect—but significant. Financial sector development and reform take time; growth does not occur overnight and recovery is not immediate. Some financial systems in East Asia remain fragile. Many emerging markets were newly set back after seeing some recovery in 2001, as slower growth in the United States and Japan reduced capital flows to them. New “fragilities” linked to fiscal and exchange rate issues and sustainability of reform have emerged: Turkey suffered a banking crisis and Argentina grappled with the threat of a liquidity crisis after three years of recession. As international financial systems integrate further, the international financial community has an even greater stake in working together to address vulnerabilities by promoting international standards and diverse financial systems. REGIONAL AND COUNTRY-LEVEL ASSISTANCE The World Bank’s regional and country-level activities include a range of lending and nonlending services that respond to the specific needs of different financial systems (see boxes 3.8 and 3.9). Support to low-income countries has focused on strengthening banking systems and increasing access to financial services; in middle-income countries, the Bank has concentrated on deepening capital markets and improving the stability of financial systems. Lending services. Lending for financial sector reform
amounted to $2.2 billion in fiscal 2001, compared with $1.8 billion last year. Support to Turkey was aimed at helping to restructure and privatize stateowned banks and to empower the bank failure resolution entity. In Mexico the Bank continued assistance to strengthen financial system infrastructure. It also
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A customer uses a newly installed Point of Sale terminal to pay for his groceries at Kalu e Angela, which serves one of the poor neighborhoods of Praia, Cape Verde. The store is one of three thousand establishments connected to the electronic interbank payment system under the Financial and Private Sector Development Project, which was implemented from September 1996 to June 2001.
Box 3.8 The Central Bank of Sri Lanka: A Homegrown Re-engineering Redirecting the mission of a central bank, reconnecting it to economic goals, and refocusing core functions is an enormous effort—one that requires the commitment and courage demonstrated by the Central Bank of Sri Lanka (CBSL). Following extensive discussions over the course of 2000, CBSLstaff determined that the bank needed to realign its role within the Sri Lankan
undertaken in fiscal 2001, bringing the total to 35 assessments since program inception in May 1999. Follow-up to these assessments, in terms of technical assistance, has already taken place in more than a dozen countries. Another 24 to 30 countries are expected to participate in the program in fiscal 2002.
economy and better position itself to support the nation’s economic development. Taking its cue from several forward-thinking central banks, CBSLhas decided to shed ancillary functions such as public debt management, management of the Employees Provident Fund, and development financing activities. CBSLstaff have refocused the bank’s objectives on price stability and financial sector stability. Management is in the process of restructuring CBSL, automating business activities, and implementing a Voluntary Retirement Scheme—which will result in a 50 percent reduction in staff. CBSLis also committed to dramatic changes in human resource policies, moving away from time-in-grade criteria for staff promotion to a merit-based system. In June 2001, the World Bank approved a $30.3 million credit to support this completely “homegrown” model of institutional reform. Success over the long term is very likely because the program was designed by the central bankers themselves.
helped the Central Bank of West African States to put in place a set of regional payment mechanisms, and supported Brazil’s efforts to accelerate and consolidate financial sector reform—and thereby prevent financial crises, which hit the poor hardest. These loans are representative of the Bank’s efforts to help governments reduce the risks to consumers of using financial services; minimize the cost of resolving bad banks (thus enabling other government spending); and strengthen financial system infrastructures, without which growth could not take place. Nonlending services. A core diagnostic process underlying activities in many countries is the joint World Bank–IMF Financial Sector Assessment Program. Joint missions of financial sector specialists help national authorities diagnose vulnerabilities and priorities in their financial sectors and assess observance of select international supervisory and regulatory standards and codes. The IMF’s focus on the linkages between the financial sector and macroeconomic performance is complemented by the Bank’s emphasis on economic development and capacity building. Twenty-three country assessments were
Technical assistance. Technical assistance has been an important tool for the Bank in helping governments carry out financial system reform. Advice continued to Indonesia to target pressure points for revitalizing economic growth: corporate governance of state banks, debt management, and corporate debt restructuring. In Ukraine, the Bank helped the government clearly define the methods and procedures for the resolution of one of the largest banks in the country, Banka Ukraina. Efforts to deepen and scale up microfinance services in Bangladesh will increase access to finance by up to 1.5 million new microcredit borrowers and will help skilled microcredit entrepreneurs move to higher levels of activities through loans of up to $1,000. By directly targeting women and the poorest segments of the population in rural and urban areas, this project will directly reduce poverty.
SUPPORT AT THE GLOBAL LEVEL At the global level, the Bank has worked to strengthen the international financial architecture by promoting international standards that respond to the requirements of developing countries, by developing tools to help governments maintain the stability of financial systems, and by offering training programs to build the capacity of supervisory and regulatory agencies. Besides the IMF, with whom coordination on financial sector work has increased significantly in the past few years, partners in these efforts include the Financial Stability Forum, Basel Committee on Banking Supervision, International Organization of Securities Commissions, and International Association of Insurance Supervisors. The Bank brings its unique perspective to global standardsetting bodies, based on its experience in the field and understanding of the difficulties in implementing financial standards in a developing-country context. For example, the lessons learned from implementing payment system standards in Latin America’s Western Hemisphere Clearance and Settlement Initiative were valuable in guiding the assessment
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Box 3.9 Changing Cape Verde’s Financial Landscape: Sustained Reform Pays Off In the early 1990s Cape Verde’s financial sector was underdeveloped: banks were unprofitable and carried bad loans, the payments system was nonfunctional, and a weak legal and regulatory environment stifled growth. The financial condition of the country’s largest bank, the state-owned Banco Comercial do Atlantico (BCA), was deteriorating, and the go vernment had to act. Given the bank’s 90 percent market share and high liquidation costs, the World Bank recommended that the government restructure BCA instead. With support from the World Bank, the government of Cape Verde embarked on an ambitious economic reform pr ogram in 1996. A number of profound changes were introduced. Institutional changes ■ Changing BCA’s management team and training staff to be bankers rather than civil servants ■ Upgrading and improving management information systems ■ Introducing new financial products and services ■ Restructuring and privatizing BCA ■ Strengthening and regularizing bank supervision and improving the legal environment Systemic changes ■ Enhancing the role of the country’s central bank as the mon etary authority and supervisor of the financial system ■ Installing a modern and electronic-based payments system (SWIFT, or Society for Worldwide Interbank Financial Telecommunication) ■ Opening up the financial sector to foreign banks, leading to better quality services Over five years, BCA—and Cape Verde’s financial system as a whole—have been transformed. The two state-owned banks (including BCA) have been privatized and, combined with the arrival of foreign banks, competition has intensified in the banking sector; bank governance has improved; the culture has changed, with a civil service mentality progressively replaced with banking skills; and modern and electronic-based banking has been introduced. In addition, banks have become more profitable, have better-quality balance sheets, and have improved their services to customers.
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and implementation of the Core Principles for Systemically Important Payments Systems. The Bank has changed the way it generates and delivers knowledge on financial systems: it has worked more closely with partners, taken advantage of the Internet and distance learning, built online databases, and addressed information gaps that the Bank is uniquely able to fill. Specifically, the Bank is helping countries understand the new challenges and choices offered by electronic finance and the impact of technology on the integration of regional financial markets in developing countries. Together with the IMF, the Bank produced a handbook for developing government bond markets—essential for governments to reduce the exposure to external shocks. The Bank has tripled the resources accessible through the Financial Sector Web site, adding online databases that allow users to access banking laws and compare information about how banks are regulated and supervised around the world. Central to the dissemination effort is a new model for delivering training and knowledge to member countries. Together with partners in the financial, academic, and official communities, the Bank has doubled its course offerings. Over 33 programs address policy issues in banking, capital markets, electronic finance, small financial systems, creditreporting systems and credit scoring, housing finance, insurance supervision, disaster risk mitigation, payments systems, and microfinance.
Building Effective Legal and Judicial Systems
Fighting poverty for lasting results is the World Bank’s mission. Effective and equitable legal systems are vital to eradicating poverty—and sustaining gains. The Asian financial crisis of the late 1990s demonstrated not only that a sound financial architecture is essential for growth but also that an effective legal and judicial system is paramount for growth to be equitable and sustainable. The transition in Eastern Europe has shown that market forces alone, without transparent laws and fair enforcement, can lead to uneven economic growth and increased poverty. Poor people often lack legal rights that would empower them to take advantage of opportunities and protect them from arbitrary and inequitable treatment. They, more than any other group in society, are adversely affected by laws permitting discrimination, deficient laws and institutions that fail to protect individual and property rights, and insufficient enforcement of these laws, as well as other barriers to justice. These lessons have prompted an increasing number of countries to promote the rule of law as a sine qua non of development and to recognize the
Legal service centers for poor women under the Ecuador Judicial Reform Project have assisted over 17,000 women to exercise their constitutional and civil rights. Here, the World Bank’s Vice President and General Counsel Ko-Yung Tung visits with women at one of the centers.
need for legal and judicial reform. The rule of law requires the existence of an appropriate legislative framework and predictable and fair enforcement by independent judiciaries, and it calls for accountable and legitimate governments to maintain order, promote private sector growth, and fight inequality. BANK SUPPORT FOR LAW AND JUSTICE In line with a more comprehensive approach to development, the Bank’s support for law and justice has evolved from specific law reform, aimed at economic development, to a broader spectrum of activities. Such activities have included legal education for the general public in the Russian Federation, anticorruption programs in Sri Lanka’s judiciary, indigenous dispute resolution mechanisms in Guatemala, and
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legal aid for poor women in Ecuador. While the majority of legal and judicial reform projects have an indirect impact on poor people, innovative components are often included in projects to reach the most vulnerable members of society. In poorer countries, the Bank supports efforts to bring justice close to the poor both physically and culturally by enhancing effective traditional informal mechanisms—while at the same time building a compatible formal system, and changing inherent traditional biases that may hurt the poor. In its work with middle-income countries, the Bank concentrates its efforts on modernizing the legal framework and strengthening the judicial system to promote economic development and social inclusion. The broad objectives of assistance are to help bring about legal and judicial reform, improve governance and physical infrastructure, and increase access to justice. Key elements of reform include promoting judicial independence through improved appointment systems, planning, and financing, as well as disciplinary procedures; modernizing judicial administration and case management; and training judges and court personnel. Governance improvements encompass strengthening anticorruption programs, building capacity in public agencies and civil society organizations, and supporting bar associations and legal education. Bank assistance may include improvements in physical infrastructure, such as providing public information areas in courthouses and setting design standards for court buildings to improve physical access for the public, as well as to increase efficiency. Access to justice can be enhanced by providing legal counseling and advocacy, particularly for the vulnerable, and by developing alternative dispute resolution mechanisms and modernizing court administration. Working closely with governments, bar associations, judges, and civil society, the Bank is embarking on a number of activities in support of law and justice (figure 3.5). These diverse activities include the sharing of global and regional knowledge on topical issues, assessments of countries’ legal and judicial systems, and financing of countries’ legal and judicial efforts. Together, these activities are helping to promote legal knowledge, as well as capacity and institution building, prerequisites for legal reform and for effective use of financial assistance.
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BUILDING A SOLID KNOWLEDGE BASE THROUGH NONLENDING SERVICES Sharing of global experience. As work on legal and judicial systems must be founded on solid knowledge, creating and disseminating global knowledge on legal and judicial reform has become a major focus of Bank assistance in this area. Following strong participation by legal, judicial, and other interested experts in the Global Conference on Comprehensive Legal Reform held in June 2000, the Bank launched an electronic forum to broaden the dialogue and build on the partnerships forged during the conference. Over 600 subscribers from around the world participated in this virtual discussion. Later in the year the Bank launched the Development Gateway for Law and Justice, initially focusing on insolvency law, judicial and legal reform, child labor law, and international environmental law. A new electronic forum initiated in May 2001 sought to develop momentum for the July 2001 Conference, “Empowerment, Security and Opportunity through Law and Justice,” in St. Petersburg, the Russian Federation. It also served the purpose of benefiting those unable to attend the conference. Building capacity among legal practitioners.
Knowledge sharing took other forms in fiscal 2001. The Bank designed and launched a distance learning pilot course for Bangladesh, Indonesia, the Philippines, Sri Lanka, and Thailand, entitled “Judicial Reform: Improving Performance and Accountability.” This course focused on judicial independence and accountability, case management, empirical research, and corruption control. Another
Figure 3.5 Legal and Judicial Reform Activities Share of 481 selected Bank projects (percent)
innovation is the World Bank’s Legal Yearbook, a publication to be launched jointly with the IFC and MIGA, offering seminal articles, case studies, and legal materials covering various subject areas of development law. Sharing global best practice. While laws are country specific, they benefit from regional harmonization and incorporation of global best-practice principles to foster empowerment, security, and opportunity. Advisory services to borrowing countries helped tailor global comparative expertise to country-specific culture and traditions in a growing number of areas. These areas have expanded to
include banking, corporate governance, environment, insolvency, infrastructure, water and forests, and land titling, as well as gender equity and indigenous peoples. In addition, an insolvency initiative— in partnership with the IMF, regional development banks, IFC, the United Nations Commission on International Trade Law, the Organisation for Economic Co-operation and Development, the International Federation of Insolvency Practitioners, and the International Bar Association—was launched to develop best practices and guidelines for effective insolvency and creditor rights’systems. Also, the Bank established an International Advisory Council on Law and Justice, made up of leading
Ibrahim F. I. Shihata (1937–2001), Late Senior Vice President and General Counsel, on Legal and Judicial System Reform The Bank’s assistance to countries to build strong legal and judicial institutions accelerated in the 1990s following the Executive Directors’ approval of a seminal legal memorandum, Issues of “Governance” in Borrowing Members—The Extent of Their Relevance Under the Bank’s Articles of Agreement, provided in 1991 by Mr. Ibrahim F. I. Shihata, the late Senior Vice President and General Counsel of the Bank. In that legal memorandum, after noting that “’governance’ covers the manner in which a community is managed and directed, including the making and administration of policy in matters of political control as well as in such economic issues as may be relevant to the management of the community’s resources,” Mr. Shihata concluded that legal reform was within the Bank’s mandate. In that connection, he noted that “legal reform requires profound knowledge of the economic and social situation in the country involved and can only be useful if it is done by the country itself in response to its own felt needs. The Bank may favorably respond to a country’s request for assistance in this field if it finds it relevant to the country’s economic development and to the success of its lending strategy for the country.” These and other principles and perspectives refer red to in this box have guided the Bank’s work in this area since that time. On the role of law in development: “Legal reform should always be seen as an integral part of the overall reform process which human societies undergo from time to time in order to restore and maintain economic and social progress. In all countries, law, which is often used to maintain the status quo, has had a quintessential role in guiding and legitimizing this overall development process. It is the instrument for introducing orderly change and reconciling diverse interests.” On country ownership and program design of proposed reforms: “Undertaking the reform of a country’s legal system or any portion of its existing laws is a sensitive matter. The participation of lawyers and policymakers from the country itself is critical to the success of a legal reform project. Intimate knowledge of the country’s situation including its language, social mores and the socioeconomic factors underpinning its political structure are important factors in the identification of reform areas and in devising appropriate solutions.” On the elements of judicial reform: “Underlying any successful program of judicial reform are two basic prerequisites: (1) the building of consensus among the judiciary and in the other branches of the state on the relevance and importance of judicial reform and, based on this consensus, (2) an ensuing commitment to make available the required resources on a sustainable basis.”
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Box 3.10 Support for Bangladesh’s Business Climate, Women, and Poor People Approved in fiscal 2001, the Bangladesh Legal and Judicial Capacity Building Project is aimed at (1) improving the business environment by making the civil justice system more supportive of economic activity, and (2) improving access to justice for women and poor people. The project combines traditional elements of judicial reform with innovative measures to increase access to justice and fight corruption. It also promotes women’s representation on the bench, gendersensitivity training for judges and court personnel, legal aid for poor women, and informal dispute resolution mechanisms to bring justice to the underprivileged. The project’s capacity-building component will help improve court administration and case management systems, upgrade court infrastructure, strengthen small claims courts, pr ovide training, and upgrade training facilities. Legal literacy and public awareness cam paigns would be carried out in cooperation with local nongovernmental organizations. The project—which was built on extensive consultations with civil society, legal professionals, and government officials—was funded by an IDA credit ($30.6 million; total project cost $43.7 million), with cofinancing by the Danish International Development Administration and the Canadian International Development Agency.
jurists and legal scholars, to provide guidance to the Bank on its law- and justice-related activities. Assessing countries’ legal and judicial systems.
Through intensive, comprehensive diagnostic assessments, the Bank has been building its knowledge of the significant elements of countries’ legal systems. Legal and judicial sector assessments are the basis for dialogue with governments and for the design and implementation of programs, in concert with other development partners. In fiscal 2001 the Bank undertook assessments for Argentina, Romania, the Russian Federation, the Slovak Republic, and the Federal Republic of Yugoslavia. Such assessments review appointment and disciplinary procedures of judges and provide baseline information on each system’s efficiency and effectiveness. Results from some of the assessments show that key areas in need of further indepth analysis are access to justice, alternative dispute resolution mechanisms, gender protection, the cost of inefficient systems, and corruption.
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LENDING FOR REFORM To date there are 31 stand-alone projects in legal and judicial reform; there are more than 10 times that number of components in Bank-financed projects that deal with some aspect of legal and judicial reform. New lending for legal and judicial reform amounted to $47 million for fiscal 2001—with another $51.5 million in preparation—and concentrated on deepening reforms in some of the world’s poorest countries. Activities included: a comprehensive program for legal and judicial reform in Bangladesh (see box 3.10) as well as similar programs in preparation for Benin, Guinea, the Philippines, and Sierra Leone. The first full-scale evaluation of a judicial reform project was completed for Bolivia, allowing the Bank to draw the first lessons for other legal and judicial work in Latin America. The evaluation underscored the long-term nature of legal and judicial reform and the need for not only realistic expectations and goals but also unflinching commitment by the government and all stakeholders. A survey of recent Bank activities in knowledge, capacity building, and law reform in 84 countries shows that the Africa Region had the highest percentage (52 percent) of capacity-building activities in legal and judicial reform (figure 3.5). Capacity- and institution-building aspects of the legal and judicial reform activities supported by the Bank aim at strengthening the judiciary, strengthening legal institutions, and increasing access to justice. Included in these activities was a series of workshops held to support the harmonization of commercial codes in 16 (francophone and lusophone) African countries under the Organisation pour l’Harmonisation en Afrique du Droit des Affaires Treaty, as well as the strengthening of the women lawyers’ association in Niger to increase its capacity to deliver legal services to the rural and urban poor. Forty-nine percent of the activities in the South Asia Region were law reform activities; the Europe and Central Asia Region was close behind with 38 percent. These activities included reviewing land titling in Sri Lanka, as well as providing technical assistance on insolvency, enterprise restructuring, and institutional and regulatory reforms in the Czech Republic. The East Asia Region had the largest number of knowledge activities, including a legal needs assessment in Mongolia.
Chapter 4
Regional Perspectives Africa
65
East Asia and Pacific
70
South Asia
75
Europe and Central Asia
80
Latin America and the Caribbean
85
Middle East and North Africa
90
Gross Domestic Product–per Capita Index 1990–2000 Africa
East Asia and Pacific
South Asia
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
Source: World Development Indicators database
Regional Perspectives HIV/AIDS: Prevention Is Vital
Raising money is difficult unless we convince people it’s not charity but self-interest… HIV/AIDS is a global issue that affects both development and security. James D. Wolfensohn, following the U.N. Special Session on HIV/AIDS
Today 36 million people are infected with HIV; more than 21 million have died of AIDS since the 1980s; and over 13 million children have been orphaned by the disease. As a cosponsor of the Joint United Nations Programme on HIV/AIDS (UNAIDS), the World Bank has committed more resources to HIV/AIDS in fiscal 2001 than in any previous year. Other sections of this Annual Report discuss the Bank’s support to Africa (page 27 ) and work with partners (page 103 ). In this chapter, the “Fast Facts” box in each section shows the number of persons living with HIV/AIDS.* While the epidemic’s impact on Sub-Saharan Africa has been by far the gravest, data for South Asia—a region with relatively low HIV prevalence rates but extensive vulnerability to the infection—underscore that both rates and absolute numbers matter. South Asia’s large population, for example, means that a rise of a mere 0.1 percent in the overall adult prevalence rate would increase the region’s total of adults living with HIV by about half a million persons. Prevention is vital. And it is estimated that, while a national prevention program in Sub-Saharan Africa would cost less than $3 per capita with prevalence rates below 5 percent, costs would quadruple to $12 per capita at prevalence rates of 15 percent. UNAIDS estimates that a basic HIV/AIDS program in all developing countries would cost at least $9.2 billion per year, six times the current level of investment.
* Figures presented in the “Fast Facts” boxes in this chapter represent UNAIDS estimates as of December 2000 and are based on UNAIDS regional definitions, which differ somewhat from those used by the World Bank. For more details, visit www.unaids.org.
8
“Today in Africa, we are aware that it’s not the Bank or the Fund that is going to develop our countries or fight against poverty. It’s up to us. We shall do it. We need to be accompanied by these institutions because they have the knowhow that helps us to amplify, multiply, and accelerate what we are going to do.” Ali Badjo Gamatie, Minister of Finance of Niger, at the Spring 2001 Meetings of the World Bank and IMF.
Africa REGIONAL CONTEXT: URGENT NEED FOR FASTER, REGIONWIDE DEVELOPMENT Economic growth in Africa in 2000 was mixed. While it averaged 7 percent in Mozambique and Uganda and 5 percent in 14 other countries, Sub-Saharan Africa’s economic performance has, on average, weakened over the last two years, largely due to resurgent conflicts and political upheavals in a few countries. In addition, sharply higher oil prices in 2000 created adverse external shocks for some countries, while markets for other primary exports were depressed. For much of the region, inequality is still high and growth remains below the 5 percent rate needed to prevent an increase in the number of poor. Many still have no access to basic services and cannot effectively participate in the modern economy. HIV/AIDS remains one of the largest challenges to human development in Africa, having already reversed hard-won gains in life expectancy in several countries. Africa has also experienced falling levels of overseas development assistance, down to $19 per capita by 1998 from $32 in 1990. These factors have sharpened the urgency for accelerated development in Africa. At the 2000 World Bank–IMF Annual Meetings in Prague, Bank President James D. Wolfensohn and IMF Managing Director Horst Köhler committed to making Africa a priority. In February 2001 they met with 22 African heads of state in Bamako, Mali, and Dar Es Salaam, Tanzania, to listen to their visions of how Africa can accelerate growth rates, drastically reduce poverty, and position itself to benefit from globalization. The leaders recognized that poverty reduction had to begin with peace, democracy, and good governance. And they acknowledged that prospects for higher
incomes depended on a strong human resource base in Africa—calling for better access to health and education services and an exceptional, concerted fight against HIV/AIDS. Regional cooperation and integration is also necessary to increase Africa’s competitiveness and position it to maximize the benefits of globalization. Enhancing African access to global markets— especially the markets of industrialized countries and for agricultural products—is an essential factor, alongside debt relief and renewed official aid, for sustaining growth. WORLD BANK ASSISTANCE: ACCELERATING AFRICA’S DEVELOPMENT Bank lending to Africa rose from $2.2 billion in fiscal 2000 to $3.4 billion in fiscal 2001. A strategy was submitted to the Board in December 2000 to increase IDA lending to Africa—to reach 50 percent of total IDA resources—while strengthening mechanisms to better reflect country performance in the allocations. The strategy was based on discussions held with IDA Deputies around the IDA-10–IDA-12 review, in preparation of the 13th Replenishment of IDA. Lending included new responses to the HIV/AIDS crisis and oil price shocks, as well as reengagement in several post-conflict countries. The increased aid flows also reflect the dramatically improved development effectiveness of the region’s Bank-financed projects following intense efforts to raise the quality of project preparation and supervision. Priority areas for Bank assistance were consistent with those articulated in the 2000 landmark study, Can Africa Claim the 21st Century?, which proposed ways for international donors to better support Africa’s development efforts with a focus on improving governance and resolving conflicts, investing in people, increasing competitiveness and diversifying
Regional Perspectives
Countries Eligible for World Bank Borrowing: Angola Benin Botswana Burkina Faso Burundi Cameroon Cape Verde Central African Republic Chad Comoros Congo, Democratic Republic of Congo, Republic of Côte d’Ivoire Equatorial Guinea Eritrea Ethiopia Gabon Gambia, The Ghana Guinea Guinea-Bissau Kenya Lesotho Liberia Madagascar Malawi Mali Mauritania Mauritius Mozambique Namibia Niger Nigeria Rwanda São Tomé and Principe Senegal Seychelles Sierra Leone Somalia South Africa Sudan Swaziland Tanzania Togo Uganda Zambia Zimbabwe
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Africa Fast Facts Total population: 0.7 billion Population growth: 2.4% Life expectancy at birth: 47 years Infant mortality per 1,000 births: 92 Female youth illiteracy: 26% 2000 GNI per capita: $480 Number of persons living with HIV/AIDS: 25 million Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (GNI) is now used instead of gross national product (G NP).
Total FY01 New Commitments IBRD $0 million IDA $3,369.6 million
Total FY01 Disbursements IBRD $43.3 million IDA $2,446.9 million
Portfolio of projects under implementation as of June 30, 2001: $14.5 billion
economies, reducing aid dependence, and strengthening partnerships. Key priorities in fiscal 2001 included providing debt relief to the poorest countries, tackling the HIV/AIDS epidemic, spurring private sector development, and helping countries empower communities as well as prevent and recover from conflict. The Bank works closely with multiple development partners in Africa, including multilateral organizations such as the African Development Bank, key bilaterals, the private sector, and nongovernmental organizations (NGOs). For example, it works with the Food and Agriculture Organization on rural development, with the Forum of African Women Educationalists on girls’ education, and with the International Partnership Against AIDS in Africa, in whose support it contributed $4 million to the Joint United Nations Programme on HIV/AIDS (UNAIDS) Secretariat. In addition, the Strategic Partnership with Africa symbolizes the Bank’s role in bringing together aid agencies and African institutions, providing a forum for coherently addressing Africa’s development issues. The Bank is also working closely with other partners to support the Nile Basin Initiative, and in June 2001 hosted the International Consortium for Cooperation on the Nile, a Consultative Group–style meeting aimed at mobilizing funding for sustainable development of the 10 countries of the Nile Basin. Table 4.1 shows the value and sectoral distribution of total Bank lending to the Sub-Saharan Africa region in the fiscal 1992–2001 period. Table 8.2 (see About the World Bank) compares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.8 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.1 shows IBRD and IDA lending by sector. Supporting poverty reduction through debt relief
Kenyan students regulate the flow of liquid into a flask during a chemistry class at Kisumu Girls’ High School. Girls’ education is an important priority for many African countries.
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A total of 13 African countries qualified in fiscal 2001 to receive debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. For these countries, debt service will be reduced over time, from all creditors, by about two-thirds, or over $25 billion. Particularly in Africa such debt relief reflects the coming together of a global and diverse group of partners. The Bank helped achieve consensus on debt reduction without jeopardizing positive aid transfers.
IDA-eligible African countries became eligible for debt relief by preparing Poverty Reduction Strategy Papers (PRSPs), which bring aid agencies and countries together around common goals defined by the country. Through the PRSP process, 17 African countries began to pursue a countrydriven development agenda, underpinned by a process of domestic consensus building and with support from development partners. Such support is provided by the IMF’s Poverty Reduction and Growth Facility and the Bank’s Poverty Reduction Support Credit, the first of which was approved for Uganda in fiscal 2001 (see page 43). Tackling the HIV/AIDS epidemic and other communicable diseases Investing in people—and addressing HIV/AIDS in particular—has been a key priority for the Bank, working closely with UNAIDS and other partners (see page 103). In September 2000, through a MultiCountry HIV/AIDS Program for Africa, the Bank made a regionwide commitment to put all the necessary resources at the disposal of African countries struck by the pandemic (see page 27). The Bank earmarked an initial $500 million in flexible and rapid IDA funding for individual HIV/AIDS projects developed by Sub-Saharan African countries, of which $287 million was committed in fiscal 2001 for projFigure 4.1 Africa: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $3.4 billion
A young Peul Beroro girl and her father, near the southern town of Zinder, are among Niger’s population of some 10.5 million whose living conditions the Bank seeks to improve. A key focus of Bank assistance to Niger is combating desertification.
ects in Cameroon, Eritrea, Ethiopia, The Gambia, Ghana, Kenya, and Uganda. A second phase is being prepared. In fiscal 2001 the Bank also stepped up its support for the fight against malaria, a serious killer, particularly among Africa’s children (box 4.1). Spurring private sector development
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes $287.2 million in IDA credits to seven countries under the MultiCountry HIV/AIDS Program for Africa, for which the Bank earmarked $500 million in September 2000. c. Includes electric power and other energy, oil and gas, and mining.
A buoyant private sector—both domestic and foreign—is critical for sustained growth and generation of jobs and domestic income. The Bank continued supporting reforms aimed at improving the environment for business and investment. It also developed new tools to support the development of trade, such as the seven-country Regional Trade Facilitation Project (box 4.2). In response to African leaders’ requests, the Bank increased its lending for infrastructure operations (transport, energy, water)— both to facilitate the development of the private sector and to improve living standards. The Bank committed to further increase its lending in the infrastructure sectors in the coming years.
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Helping empower communities To ensure that development benefits do reach the poorest communities, the Bank developed Community Action Programs, which reflect the CommunityDriven Development (CDD) approach that empowers communities by making resources available to them in support of effective local development programs. The Bank has placed growing emphasis on decentralized CDD mechanisms to help channel resources to rural areas, such as the social funds in Malawi and nutrition programs in Senegal and Madagascar. This effort was complemented by a focus on strengthening capacities, in both the public and private sectors. The Bank has committed up to $150 million to the Partnership for Capacity Building in Africa (PACT) over five years, together with the Harare-based African Capacity Building Foundation. In 2000 PACT funded projects in 29 countries to help develop skills, knowledge, and management capacity.
Box 4.1 Rolling Back Malaria Malaria is on the rise again, killing over a million people a year worldwide, including an estimated 700,000 children. And the rising numbers of people affected by malaria are overwhelming national health services and weakening societies, particularly in Sub-Saharan Africa, where 90 percent of the cases occur. In April 2001 the Bank hosted the Fourth Global Partnership Meeting to Roll Back Malaria (RBM). Participants shared experiences on expanding country-level partnerships to implement national programs to reach the RBM goal of halving the burden of malaria by 2010. They examined the roles of go vernment, the private sector, and NGOs in working together to extend malaria programs beyond the public health sector. They also discussed the challenges faced in mobilizing and effectively employing external resources, and the opportunities provided through the PRSP and HIPC initiatives to scale up successful malaria programs.
Helping countries affected by conflict Conflict is increasingly becoming a development issue in Africa. The Bank has strengthened its capacity to cooperate with specialized partners, including United Nations agencies, bilaterals, and NGOs, in preventing conflict and supporting postconflict recovery. With regard to prevention, the Bank has worked with others to try to address some of the root causes that may generate political instability and, eventually, conflict, and in particular poverty and inequalities. With regard to recovery, the Bank was active in several countries, both through project financing and technical advice. In November 2000 the Bank approved a $90 million credit to support Eritrea’s long-term reconstruction and economic recovery, through complementary actions in agriculture, private sector reconstruction, and social protection. The Bank also approved two credits totaling $400.6 million to assist the Ethiopian government with its post-war recovery program. Support included the emergency demobilization and reintegration of 150,000 veterans of the conflict with Eritrea, emergency humanitarian needs, and rehabilitation and reconstruction of infrastructure, as well as stabilization of the economy and restarting the reform agenda. Other countries in which the Bank has been active in post-conflict reconstruction operations include Burundi, Guinea-Bissau, Rwanda, and Sierra Leone.
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Box 4.2 Stimulating Africa’s Productivity by Facilitating Regional Trade Financing for productive activities in Africa is severely con strained by a perception that the region is highly risky. In many countries, however, this perception is not justified by circumstances. The IDA-supported Regional Trade Facilitation Project (RTFP, $110 million) tackles this problem by bringing together countries that are willing to address the market’s perception by setting up a credible insurance mechanism against losses caused by political risks. These countries’governments would be the ultimate risk takers in the insurance mechanism, creating a strong disincentive to cause claims. Private insurers, while not currently able to assume the high political risk in cross-border transactions involving African countries, would—with the public sector’s assumption of risk—be able to extend activities in the region. The RTFP will benefit commercial firms involved in trade, b y extending the maturities at which credit is available and creating a more stable business environment. Seven countries will initially benefit (Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda, and Zambia); the project could later be extended to all African countries.
Table 4.1 World Bank Lending to Borrowers in Africa, by Sector, Fiscal 1992–2001 (millions of dollars) Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
Classified on a Loan-by-Loan Basis
FY92–97
FY98–99
Annual average
Annual average
315.2 527.0 233.5 181.4
Classified on a Loan Component Basis
FY00
FY01
FY00
FY01
182.5 503.2 283.2 190.2
173.6 426.2 159.7 42.9
362.3 540.3 74.9 -
181.4 360.1 203.7 60.3
384.7 458.3 146.7 0.5
53.9 217.3 10.7 38.9 31.4 136.9
35.9 17.2 10.0 8.8 199.6
16.4 60.4 93.5 116.6 110.0
22.0 204.4 18.0 72.0 384.2a
22.6 60.4 43.2 116.7 154.0
26.1 198.6 18.0 89.0 466.2a
193.8
61.3
143.2
462.2
186.6
298.1
101.8
150.9
312.2
382.2
194.9
365.6
117.6 14.9 294.4 132.3 124.6
113.4 5.4 503.2 105.5 92.9
139.4 10.2 256.2 10.8 87.7
453.7 99.0 40.0 254.4
143.4 10.2 256.2 91.7 73.7
490.5 11.8 112.1 20.0 283.4
2,159.1
3,369.6
2,725.7
2,463.2b
2,159.1
3,369.6
175.0 2,550.6
31.2 2,432.0b
97.6 2,061.5
3,369.6a,b
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding. a. Includes $287.2 million in IDA credits to seven countries under the Multi-Country HIV/AIDS Program for Africa, for which the Bank earmarked funding of $500 million in September 2000. b. Excludes IDA HIPC grants of $75 million to Uganda in fiscal 1998, $154 million to Mozambique in fiscal 1999, and $64 million to Cameroon in fiscal 2001.
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“When the orchardists saw their piled fruit turn into cash and their life standard was thus improved, they were very excited and filled with happiness. These kind and honest people did not forget the organizations that helped them.” Letter from Mr. Song Yongxiang, a recipient of a small business loan funded by the Shanxi Poverty Alleviation Project, which is improving lives in some of China’s poorest areas.
Countries Eligible for World Bank Borrowing:
East Asia and Pacific
Cambodia China Fiji Indonesia Kiribati Korea, Republic of Lao People’s Democratic Republic Malaysia Marshall Islands Micronesia, Federated States of Mongolia Myanmar Palau Papua New Guinea Philippines Samoa Solomon Islands Thailand Tonga Vanuatu Vietnam
REGIONAL CONTEXT: RECOVERY CONTINUES BUT RISKS PERSIST
This section also reports on East Timor.
East Asia’s recovery from financial crisis has been remarkable. Growth in the region’s developing countries exceeded 7 percent in 2000, and extreme poverty is down to about 13 in 100 people living on less than $1 a day, compared with nearly 30 percent at the start of the decade. Much of the progress was driven by China, a pillar of growth during the crisis. Steady recovery in other parts of East Asia has renewed progress in poverty reduction, which was interrupted during the crisis: 2000 marks the second consecutive year of growth for East Asia’s major economies. Countries are financially stronger than they were four years ago, which will help them manage the impact of the global contraction this year. Revitalizing the business sector is essential to enhance resistance to shocks. Some smaller economies are lagging, and disparities within larger economies are high. Social vulnerability remains worrisome: nearly half the population lives on less than $2 a day. Progress on other social development goals—which require effective institutions and service delivery—has been slower. The need for increased responsiveness of public institutions has thus grown, in step with the emergence of an active civil society, a growing policy debate, and changes in government. Finally, the environment needs renewed attention. WORLD BANK ASSISTANCE: COMPETITIVE BUSINESSES, EMPOWERED COMMUNITIES, CLEANER AIR The Bank’s primary objective is to reduce poverty through Country Assistance Strategies (CASs)
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that build on strategic alliances and partnerships to encompass global good practices. In fiscal 2001, $2.1 billion in new lending, covering 30 projects (excluding 3 with special trust fund financing), supplemented the Bank’s policy advice and technical support. The strategic thrust of Bank assistance includes revitalizing the business sector, supporting public sector performance, addressing social risks, and preventing countries from retreating into environmental neglect. Delivering global and regional experience to countries and applying resources to local needs are the driving principles behind the Bank’s strategy in East Asia. Nearly half the Bank’s staff in the region and all its Country Directors are located in the field to ensure more effective assistance. Indonesia’s fiscal 2001 CAS, developed in a highly consultative manner, links increased concessional lending to improved governance; and a new transition strategy is guiding the Bank’s program in East Timor (box 4.3). In Cambodia, the Lao People’s Democratic Republic, Mongolia, and Vietnam, the Bank is supporting comprehensive, long-term programs— developed by the countries through the Poverty Reduction Strategy Paper process—that promote broad public participation and are pro-poor and pro-growth. A new CAS has been initiated for China. Table 4.2 shows the value and sectoral distribution of total Bank lending to the East Asia and Pacific region in the fiscal 1992–2001 period. Table 8.3 (see About the World Bank) compares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.9 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.2 shows IBRD and IDA lending by sector.
East Asia and Pacific Fast Facts
Revitalizing East Asian business and restoring investor confidence The Bank is helping to improve the institutional and policy environment for private investment through support for corporate restructuring, governance, and competitiveness. In Indonesia, it has worked closely with the IMF and the Asian Development Bank (ADB) in bank and corporate restructuring, and led support to state banks. In Thailand, the Country Development Partnership for Competitiveness (CDPC)—nonlending support to take forward country dialogue in the absence of adjustment lending—is helping implement policies and financial and corporate reforms. In Vietnam, a new Poverty Reduction Support Credit is supporting a comprehensive set of structural reforms to promote increased private investment and to strengthen transparency and accountability in state enterprises, banks, and public finance—essential for broadly shared growth. To promote regional competitiveness, the Bank is investing in information infrastructure, technology innovation, and skills development. Thailand’s CDPC is addressing key constraints in these areas, complemented by technical assistance from partners. The Bank-managed Vietnam Development Information Center is a multidonor-funded cutting-edge facility that offers distance learning and public access to global knowledge; the operation is one of four Global Development Learning Network centers established by the Bank in Asia. Through knowledgeand country development partnershipsestablished with countries such as the Republic of Korea and Thailand, the Bank is facilitating access to global development knowledge to reduce vulnerability and strengthen competitiveness (box 4.4). Work has also advanced with the Organisation for Economic Co-operation and Development (OECD) to assess China’s knowledge economy and requirements for technological innovation. The Third Asia Development Forum for regional policymakers and others, organized jointly with ADB, the Economic and Social Commission for Asia and the Pacific, and other partners, also aimed at preparing for the future economy.
Total population: 1.9 billion Population growth: 0.9% Life expectancy at birth: 69 years Infant mortality per 1,000 births: 35 Female youth illiteracy: 4% 2000 GNI per capita: $1,060 Number of persons living with HIV/AIDS: 0.6 million Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (G NI) is now used instead of gross national product (G NP).
Total FY01 New Commitments IBRD $1,136.1 million IDA $997.7 million
Total FY01 Disbursements IBRD $2,683.3 million IDA $646.8 million
Portfolio of projects under implementation as of June 30, 2001: $28.7 billion
Improving public services and governance With rising public debt squeezing public spending, civil society in many East Asian countries is demanding more efficient and accountable govern-
In China, lending for projects with a strong environmental focus has been the fastest growing part of the Bank’s portfolio.
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Box 4.3 East Timor: Where Is It Now? In September 1999, East Timor was devastated by violence after the East Timorese voted overwhelmingly to break from Indonesia. Leading the coordination of the international community’s reconstruction efforts, the Bank has, over the last 18 months, administered the Trust Fund for East Timor. The fund received pledges of up to $166 million for basic reconstruction and development works in nearly all sectors. Progress has been remarkable. Within six months, grant agreements for projects and programs in all sectors were signed. By December 2000 economic activity was recovering; projects supporting agriculture, community recovery, health, education, sanitation, and infrastructure were under way; a United Nations (U.N.) agency had set up power-sharing arrangements with the East Timorese; and a schedule for elections was agreed on. The Bank has developed a Transition Support Strategy to help East Timor as it moves toward postU.N. independence. The challenges ahead are enormous— but within reach, if the success of the last two years provides any indication.
Box 4.4 Innovating with Knowledge and Countr y Development Partnerships: The Republic of Korea and Thailand Through partnerships established with countries such as Korea and Thailand, the Bank is facilitating access to global development knowledge to reduce vulnerability and strengthen compet itiveness. These have emerged as the central development concerns in middle-income countries following the crisis. The knowledge partnership with the Korean government is
ment, improved social and infrastructure services, and better environmental safeguarding. Bank assistance thus continues to emphasize public sector transparency and accountability, and greater stakeholder participation in project design and implementation. Initiatives in Indonesia include anticorruption and civil service reforms. The Indonesian-led Partnership for Governance Reform—a joint initiative with the United Nations Development Programme— facilitates a national dialogue on governance and is funding innovative reform proposals from civil society and government agencies. Bank operations are adopting demand-oriented and private sector approaches to service delivery, particularly in infrastructure activities and with emphasis on cost recovery. Decentralized public sector decisionmaking and accountability are also priorities. Indonesia’s Provincial Health Project is delivering services to the poor in the provinces of Banten, North Sumatera, and West Java in an increasingly decentralized environment. The Philippines’Local Government Finance and Development Project is making cities more livable by expanding and upgrading basic infrastructure, services, and facilities, as well as the capacity of participating local governments. In China, the Economic Law Reform Project is financing technical assistance for preparing economic laws, while the Accounting Reform Project is helping government auditors curb waste and other misuse of resources, and strengthen public sector financial management. In Thailand, Bank-funded surveys to gauge household, private sector, and public sector perceptions of corruption have raised national awareness of, and debate on, the problem.
contributing to Korea's efforts to become a more competitive, knowledge-based economy and to transfer Korean development experience to other countries. In June 2001 the Bank, jointly with the Korean Development Institute, organized a workshop on business innovation systems, providing insights that can be applied to other developing countries. In Thailand, the Bank is assisting the go vernment via country development partnerships centered on technical assistance and capacity-building needs, private sector and civil society involvement, and grant resource mobilization. The partnership on competitiveness focuses on completing the reform agenda and implementing the forward-looking agenda—deepening skills, strengthening innovation capabilities, and improving logistics.
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Reducing vulnerability and ensuring that poor people benefit from growth Bank strategy has evolved from supporting safety nets and crisis assessment to strengthening policies and institutions that help households manage social risks, build social policy frameworks, and enable the poor to participate in the benefits of growth. Social programs in low- as well as middle-income countries have increasingly emphasized community empowerment and demand-driven approaches. In Cambodia the Social Fund II Project is financing communitybased subprojects for infrastructure, creating employment opportunities, and strengthening communities and local governments. Indonesia’s Kecamatan
World Bank officials visit a school in Jakarta whose students received scholarships from the National Scholarships and Grants Program, a donor-supported program that helped poor families and schools face the impact of the 1997–98 financial crisis.
Development Project is helping 10,000 subdistricts nationwide fund small-scale infrastructure projects or income-generating activities; the project is strengthening local capacity, empowering village councils, and improving community participation. The Bank has also been supporting areas of extreme poverty. Mongolia’s rural transport project is improving poor communities’ access to health and education services and facilitating private enterprise and trade. In Vietnam, small-scale infrastructure and livelihood projects are being planned to tackle poverty in some of the country’s poorest areas through participatory, decentralized, and targeted approaches. China’s Tri-Provincial Highway Project is helping develop transport in three western provinces while improving road access to poor counties to reduce income inequalities.
work with the Bangkok authorities to tackle motorcycle pollution; a multidonor report on China’s environment and a report analyzing options for natural resource management in Indonesia; and support for projects in China with a strong environmental focus, which have been the fastest-growing part of the Bank’s loan portfolio for that country ($1.2 billion approved in fiscal 2000–01). For example, the Sichuan Urban Environment Project is bringing cleaner water and a healthier environment to six million low-income people in Sichuan while helping protect and restore the Grand Buddha of Leshan, a World Cultural Heritage site. Figure 4.2 East Asia and Pacific: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $2.1 billion
Improving the environment With urbanization now embracing half the population in the region’s major countries, urban air and water pollution is an extremely serious problem. Together with the Ford Motor Company, ADB, and the governments of Japan and the Netherlands, the Bank has launched the Clean Air Initiative for Cities of East Asia as a platform for knowledge sharing among Asian cities. Assistance to countries includes
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes electric power and other energy.
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Table 4.2 World Bank Lending to Borrowers in East Asia and Pacific, by Sector, Fiscal 1992–2001 (millions of dollars ) Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
Classified on a Loan-by-Loan Basis
FY92–97
FY98–99
Annual average
Annual average
958.4 97.8 495.7 1,292.0
Classified on a Loan Component Basis
FY00
FY01
FY00
FY01
1,035.3 1,831.0 330.4 473.4
353.8 30.0 5.0 470.0
193.5 250.0 7.6 30.0
412.8 40.0 7.0 470.0
154.9 57.5 16.6 30.0
279.1 94.9 5.8 10.5 139.3 206.2
259.7 3,105.2 125.6
382.7 32.0 10.0 7.0 119.4
4.8 8.0 35.0 108.2
590.3 32.0 10.0 7.0 82.7
197.0 88.0 108.2
22.5
99.3
-
-
-
85.0
74.6
367.5
490.0
-
470.0
12.5
52.9 180.7 1,147.8 320.1 126.8
650.0 67.3 1,105.6 116.7 127.2
100.0 629.2 350.0
378.4 729.0 389.3 -
105.0 577.3 175.0
443.4 746.1 194.6 -
5,505.1
9,694.2
2,979.1
2,133.8a
4,389.1 1,116.0
8,800.9 893.3
2,495.3 483.8
1,136.1 997.7
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding. a. Does not include special financing of $21.6 million provided by the Trust Fund for East Timor.
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2,979.1
2,133.8a
“We are happy that the World Bank has come to talk directly to us. W e know what we need and we know how to solve our problems better than any one else. Come back again and keep talking to us.” Local farmer speaking during Country Assistance Strategy consultations in Kohat district, Pakistan.
South Asia REGIONAL CONTEXT: GROWING STEADILY, BUT BELOW POTENTIAL At 5.8 percent, growth in South Asia in 2000 continued to be robust and sustained compared to the rest of the world. Long-term growth continues to be well below potential, however, and the 2000 outcome was also affected by drought that undermined agricultural output in some parts of the region. India’s GDP growth led the region at 6 percent, while Bangladesh’s remained steady, at 5.2 percent. Strength in manufacturing and exports raised Pakistan’s growth slightly, to 3.8 percent. The stability of South Asia’s growth is impressive, given recurrent natural disasters and continuing political instability in some areas. Drought struck northern India, Afghanistan, and Pakistan; a massive earthquake killed thousands in India. Other more chronic obstacles to growth were poor governance, civil conflict, and insufficient economic reforms. The pace of India’s economic reforms has been slowed by political challenges at the state level. Pakistan continues to face pervasive, inherited governance problems and economic distortions; confronting them effectively will be crucial to the success of its Economic Revival Program introduced in 2000. In Bangladesh, a sharply polarized political environment prior to 2001 elections slowed implementation of second-generation reforms necessary to accelerate growth and reduce poverty. Over the year, political instability continued in Nepal, and in June 2001 the country suffered the tragedy of the royal assassinations; Sri Lanka saw a combination of a deepening of its 18-year conflict, a fragile ceasefire, and political volatility; and intense fighting continued in Afghanistan.
South Asia’s poverty continues to present a profound development challenge. Half a billion people live on less than $1 a day, accounting for 44 percent of the world’s poor. The illiteracy rate is the world’s highest, and women have only about half as many years of education as men. Lack of access to health care, the continuing acceleration of HIV infection, and environmental degradation are only a few of the problems that threaten the region’s prosperity and undermine the quality of life for all, especially poor people.
Countries Eligible for World Bank Borrowing: Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka
WORLD BANK ASSISTANCE: STRENGTHENING PROSPECTS FOR LASTING DEVELOPMENT The Bank’s central goal in South Asia is reduction of poverty and vulnerability, which it pursues by promoting country and community ownership of development efforts; responding quickly to crises; supporting increased investment in human development, especially for marginalized groups; and encouraging private sector–led and equitably shared economic growth. Table 4.3 shows the value and sectoral distribution of total Bank lending to the South Asia region in the fiscal 1992–2001 period. Table 8.4 (see About the World Bank) compares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.10 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.3 shows IBRD and IDA lending by sector. Promoting ownership and empowering communities In fiscal 2001 the Bank consulted extensively with local communities, civil society, and government officials in preparing its Country Assistance Strategies (CASs) for India, Bangladesh, Sri Lanka, and Pakistan (box 4.5). It also engaged in civil society
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South Asia Fast Facts Total population: 1.4 billion Population growth: 1.9% Life expectancy at birth: 63 years Infant mortality per 1,000 births: 74 Female youth illiteracy: 40% 2000 GNI per capita: $460 Number of persons living with HIV/AIDS: 5.8 million Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (GNI) is now used instead of gross national product (GNP).
Box 4.5 Deepening the Development Dialogue in Pakistan In preparing a new C AS, the Bank’s Pakistan team conducted consultations from the village to the national level, talking to farmers, women’s groups, NGOs, trade unions, academia, media, government officials, and politicians. The team heard voices of deep concern about widespread corruption, and despair about the lack of economic opportunities, fair access to justice, education, and health services. But it also heard creative ideas from people with a
Total FY01 New Commitments IBRD $2,035.0 million IDA $1,211.5 million
Total FY01 Disbursements IBRD $756.0 million IDA $1,935.3 million
great desire to make a difference in their own lives. The CAS consultations helped the Bank identify local develop ment needs and priorities as determined by the citizens themselves. It is hoped that the opening of this dialogue will lead to a
Portfolio of projects under implementation as of June 30, 2001: $17.7 billion
more inclusive development process in Pakistan.
consultations and interactive workshops that allowed the Bank to bring its global development experience to client countries while seeking local perspectives on development priorities: ■ In India, over 300 politicians, civil servants, and nongovernmental organizations (NGOs) met at a workshop on state-level reforms in December 2000—sponsored by the Bank, other donors, and the Ministry of Finance—to exchange ideas with global fiscal and governance experts, while a number of large workshops at the federal level also helped to examine fiscal, privatization, and business-climate issues. ■ Support for sector-level dialogue included a workshop in Pakistan on the sustainable provision of water and sewerage services in Karachi, and a series of consultations to help national and provincial authorities and other stakeholders better understand the needs and concerns of road users. ■ Two journalism workshops aimed at strengthening the media were sponsored by the World Bank Institute: one on economic reporting and one, offered with support from the Commonwealth Press Union, on corruption and journalism ethics.
Girls raise their hands to indicate that they are in school, during World Bank consultations in rural Pakistan. The consultations were among several held with numerous stakeholders to inform the Bank’s Country Assistance Strategy for Pakistan.
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The Bank is helping increase local ownership of development efforts by empowering communities to design and implement projects. For example, India’s District Poverty Initiatives projects (in Andhra Pradesh, Madhya Pradesh, and Rajasthan) and Rural Water Supply and Environmental Sanitation Project closely involve rural communities in efforts to increase their access to resources and improved serv-
ices. Sri Lanka’s pilot Village Self-Help Learning Initiative, meanwhile, includes a Village Community Telecenter that relies on information technology and communications to help reduce poverty in remote villages. The project is funded by a Japanese Social Development Fund Grant administered by the Bank. Working together to respond to crises Bank assistance in fiscal 2001 helped address needs arising from natural disaster– and conflictrelated crises, recognizing their devastating impact on poor people. Response to India’s earthquake was quick, collaborative, and multidimensional (box 4.6). In drought- and conflict-ridden Afghanistan, the Bank is helping the efforts of the United Nations and other agencies to alleviate famine and malnutrition among an estimated 12 million Afghanis (including those in refugee centers in neighboring Pakistan). In Sri Lanka, the Bank-financed North-East Irrigated Agricultural Lands Project continues to make progress amid the challenges of conflict. The project aims to re-establish at least a subsistence level of production and basic community services through agricultural and small-scale reconstruction activities. Partners include the government of Sri Lanka, the focal communities, local NGOs, the United Nations High Commission for Refugees, and the International Committee of the Red Cross. Both parties to the conflict have been appreciative of this work to assist some half a million people in the conflict zone.
access to global development knowledge. In Pakistan, Bank participation in policy dialogue has helped the government prepare a national education sector strategy. In fiscal 2001 the Bank continued its strong support for the region’s health programs—which are showing results. A second project to deepen HIV/AIDS prevention efforts is under way in India; the first helped to launch a national control program, increase blood safety from 30 percent to nearly 100 percent, significantly reduce risky behavior, and raise condom use in high-risk groups. Another follow-up project in India, this one approved in fiscal 2001 to fight leprosy, will help move India toward elimination of this disease; under the first project, 4.4 million patients received treatment, and registered leprosy cases fell from over 1 million in 1993 to 500,000 in 2000. In fiscal 2001 the Bank also approved an HIV/AIDS Prevention Project in Bangladesh, targeting high-risk groups. In addition, the Bank is helping combat tuberculosis (TB) in South Asia, which has 3 of the 10 countries with the world’s highest TB incidence. In India the Bank supports a revised national TB control program, which treated 1.1 million patients in 1999 and rising in 2000 under DOTS (Directly Observed Treatment, Short-course—a cost-effective strategy that reduces illness, deaths, and transmis-
Figure 4.3 South Asia: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $3.2 billion
Investing in people The Bank’s support to South Asia recognizes the centrality of education and health in poverty reduction. A new project in Bangladesh will strengthen literacy programs and help the newly literate utilize their skills, benefiting some 1.6 million of the country’s poorest people, half of them women. Also in Bangladesh, a new Legal and Judicial Capacity Building Project will help improve access to justice, especially for the poor and women (see page 62). A distance-learning project—the first of its kind in South Asia—offers videoconference and Internet-based training opportunities to political and business leaders in Sri Lanka, expanding their
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes electric power and other energy.
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A woman shares the story of her loss with World Bank team members following the devastating earthquake in Gujarat.
sion). The Bank is also supporting efforts to expand DOTS in Pakistan and Bangladesh.
Box 4.6 Disaster Response: Multidimensional Assistance, Partnership, and Participation On January 26, 2001, a severe earthquake hit India’s Gujarat state, leaving over 20,000 people dead, nearly a million families homeless, social infrastructure destroyed, and a government suddenly faced with an immense challenge. The Bank quickly made $400 million available for emergency rehabilitation and partnered with counterparts from the Asian Development Bank to prepare a comprehensive damage assessment (http://www.worldbank.org/gujarat 8 ), crucial to shaping a recovery plan and guiding cooperation among all parties. Reconstruction needs are estimated at a staggering $2.3 billion. The Bank’s emergency assistance of $400 million provides short-term financing for temporary shelter, rubble removal, health and education services, rehabilitation of basic infrastructure, community capacity building, and establishment of disaster management capabilities. A longer-term reconstruction credit is under preparation. In close consultation with Indian authorities, the Bank is urging the active participation of affected communities in all reconstruction efforts.
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Promoting private sector growth A dynamic private sector is crucial for growth—and thus central to the Bank’s country programs. India’s Rajasthan Power Sector Restructuring Project, approved in fiscal 2001, continues the Bank’s support for private provision of infrastructure in the region. It will help advance the privatization of distribution firms and promote small-scale power generation as well as renewable energy production for remote locales. The Pakistan Trade and Transport Facilitation Project, also approved in fiscal 2001, will help the country modernize and reform its transport sector. Lower transport costs will help Pakistan’s industries become more competitive in international markets. In fiscal 2001 the IFC, the Bank Group’s private investment–promotion arm, continued to complement Bank assistance for the region’s private sector development. IFC is helping South Asia accelerate private participation in the provision of infrastructure, tourism, health, and education services, and is providing support for countries’ financial sectors and capital markets.
Table 4.3 World Bank Lending to Borrowers in South Asia, by Sector, Fiscal 1992–2001 (millions of dollars) Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
Classified on a Loan-by-Loan Basis
FY00
Classified on a Loan Component Basis
FY92–97
FY98–99
Annual average
Annual average
FY01
FY00
FY01
405.1 138.4 271.4 507.1
610.9 275.0 408.2 252.5
271.5 45.0 200.0 280.0
231.8 350.0 192.6 630.0
61.0 45.0 200.0 280.0
297.3 15.0 269.6 745.5
94.9 185.9 12.5 41.7 50.1 357.8
91.8 184.5 266.0 271.6 475.7
65.1 344.6
5.0 181.3 70.0
7.8 65.1 344.6
7.4 163.3 70.0
107.9
16.0
-
-
-
51.0
79.8
-
251.3
182.6
251.3
259.1
86.6 15.0 244.8 51.1 139.0
292.4 52.5 16.2
62.0 582.1 10.8 -
1,333.0 4.7 65.5
231.5 62.0 556.3 7.8 -
33.0 1,332.9 2.4 -
2,789.1
3,213.3
2,112.4
3,246.5
2,112.4
3,246.5
1,056.7 1,732.4
1,034.0 2,179.3
934.3 1,178.1
2,035.0 1,211.5
original
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding.
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“In Poland I turned to the World Bank with which we had already established a good working relationship through the transition years. Because it is independent, the Bank can help give a credible start to anticorruption initiatives. It helped us with the analytical work and advised us on the policy and technical reforms that can help to minimize corruption.” Leszek Balcerowicz, op-ed in Segodnya (Russian Federation newspaper). September 2000.
Countries Eligible for World Bank Borrowing:
Europe and Central Asia
Albania Armenia Azerbaijan Belarus Bosnia and Herzegovina Bulgaria Croatia Czech Republic Estonia Georgia Hungary Kazakhstan Kyrgyz Republic Latvia Lithuania Macedonia, former Yugoslav Republic of Moldova Poland Romania Russian Federation Slovak Republic Slovenia Tajikistan Turkey Turkmenistan Ukraine Uzbekistan Yugoslavia, Federal Republic of
REGIONAL CONTEXT: GROWING ECONOMIES, NEED FOR STRONGER BUSINESS CLIMATE
This section also reports on Kosovo.
80
The year 2000 marks the first year in the past decade when all transition countries experienced positive growth. Growth in Central Europe and the Baltics averaged 4 percent, the highest during the last five years. The Baltic countries, Croatia, the Czech Republic, and Romania started to grow again after having stabilized their economies in the previous year. Overall, growth in the Commonwealth of Independent States (CIS) countries reached a record high of 7.4 percent, led by the Russian Federation’s strong economic recovery fueled by higher energy prices and the post-1998 currency depreciation. Barring a sharp decline in growth in Western Europe, economic growth is expected to remain strong in most of the region into 2001. Many of the new administrations in Central Europe and the Baltics are accelerating reforms, and the European Union (EU) accession process has become an important catalyst. Continued growth in the Russian Federation and Ukraine will depend crucially on improving the environment for business and private investment. Such improvement could not only raise the present low levels of domestic and foreign direct investment but also spur growth of new small- and medium-size firms—a major factor in the growth of the Baltics and Central Europe. Major developments have occurred in Turkey and the Federal Republic of Yugoslavia. In late 2000, the new administration of the Federal Republic of Yugoslavia embarked upon a reform program to facilitate the transition to a market economy, and reestablished links with the international community.
The World Bank Annual Report 2001
In Turkey, the macroeconomic stabilization program suffered a major setback in February 2001, and output is expected to decline this year. The currency depreciated sharply and major losses occurred in the banking sector. A comprehensive structural reform of the public and financial sectors accelerated in the spring, alongside implementation of agricultural reform. WORLD BANK ASSISTANCE: CREATING JOBS, PROTECTING THE VULNERABLE, FIGHTING CORRUPTION Poverty has increased substantially in the Europe and Central Asia (ECA) region over the last decade, resulting from the deep economic recessions initiated by the transition process. Helping countries to move to a sustainable growth path—and to ensure that growth translates into jobs and improved living standards—continues to be a major component of the Bank’s poverty reduction strategy, with efforts to help improve the business climate. A second component is support for realigning public expenditures to protect extensive achievements in education and health, and improving the targeting of social protection programs toward the most vulnerable. Improving governance and institutional structures to serve the broader public interest, with a strong focus on anticorruption and communitydriven development, marks a third component of the Bank’s strategy. This strategy incorporates lessons learned from the past decade of transition experience (see http://www.worldbank.org/eca/ publications 8 ). The Bank continues to play a key role in supporting peace and economic recovery in South East Europe. With other partners, it has helped the new government of the Federal Republic of Yugoslavia prepare an Economic Recovery and Transition
Europe and Central Asia Fast Facts
Program, and cosponsored a donor conference to raise funds for this Program. The Federal Republic of Yugoslavia became a member of the World Bank in May, after agreement was reached on a plan to resolve its arrears to the IBRD. The Bank prepared a Transitional Support Strategy, and start-up activities are being financed by a $30 million trust fund. The Bank is also helping Kosovo rebuild its economy and is continuing its support for regional initiatives in South East Europe, including the Trade and Transport Facilitation Program. Under this program, Bank-financed projects in six South East European countries will help reduce nontariff transport costs and reduce smuggling and corruption at border crossings by supporting reforms and financing critical infrastructure and equipment needs. The Bank moved rapidly to support the new economic program of Turkey by preparing a series of adjustment loans to accelerate structural reform and mitigate social risks. A loan supporting the initial phase of financial sector reforms was approved in December 2000. Table 4.4 shows the value and sectoral distribution of total Bank lending to the Europe and Central Asia region in the fiscal 1992–2001 period. Table 8.5 (see About the World Bank) compares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.11 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.4 shows IBRD and IDA lending by sector. Launching the Poverty Reduction Strategy process The Poverty Reduction Strategy process was launched in all nine IDA countries in the ECA region during fiscal 2000. Albania presented its Interim Poverty Reduction Strategy Paper (I-PRSP) to the Bank and the IMF Boards in fiscal 2000; Armenia, Georgia, the former Yugoslav Republic of Macedonia, Moldova, and Tajikistan presented their I-PRSPs in fiscal 2001; and Azerbaijan, Bosnia and Herzegovina, and the Kyrgyz Republic are expected to present theirs in early fiscal 2002. Extensive consultations are under way in Albania and the Kyrgyz Republic and will take place in other countries as they prepare full-fledged PRSPs. The newly established ECA Nongovernmental Organization (NGO) Working Group—an external advisory group of
Total population: 0.5 billion Population growth: 0.1% Life expectancy at birth: 69 years Infant mortality per 1,000 births: 21 Female youth illiteracy: 2% 2000 GNI per capita: $2,010 Number of persons living with HIV/AIDS: 0.7 million Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (GNI) is now used instead of gross national product (GNP).
Total FY01 New Commitments IBRD $2,154.1 million IDA $539.0 million
Total FY01 Disbursements IBRD $2,368.0 million IDA $342.0 million
Portfolio of projects under implementation as of June 30, 2001: $15.8 billion
Water user associations are one of many civil society groups in Armenia helping the World Bank to formulate its Country Assistance Strategy.
NGOs from Europe and Central Asia—is providing feedback on the process. The external debt situation of some of the region’s poorest countries is of growing concern. In fiscal 2001 the Bank and the IMF produced a joint paper analyzing the magnitude and severity of the problem across IDA-only CIS countries. Additional work is under way to identify country-specific options for ensuring that debt servicing does not crowd out poverty-oriented public spending.
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Box 4.7 Promoting Community-Based Services for Vulnerable Children
Improving the business climate Growth and job creation have been much stronger in countries experiencing rapid growth of new small and medium enterprises (SMEs). Improving the business climate, especially for SMEs, has become a key focus of adjustment operations. The Armenia Fourth Structural Adjustment Credit, for example, aims to improve the business climate by rationalizing the system of business inspections, streamlining business registration and licensing procedures, and reforming the tax and customs administration as well as the public procurement system, to create a level playing field, especially for new businesses. Armenia, the Russian Federation, and Ukraine are initiating a series of regular business surveys to monitor progress on efforts to reduce public interference in business activity.
Today nearly a million children live “lives of quiet desperation” in institutions across the region, according to a report of the joint United Nations Children’s Fund–World Bank project “Changing Minds, Policies and Lives.” The project aims to promote systemic change in the region from reliance on state institutions to strengthened family and community-based services for vulnerable children. Over the past three years the Bank has supported efforts in Armenia, Bulgaria, Lithuania, Moldova, and Romania to establish viable alternatives to institutionalization. Romania has pioneered community-based alternatives to institutionalization with the help of a $5 million Learning and Innovation Loan as part of a larger $29 million program supported also by the EU, U.S. Agency for International Development, Council of Europe Development Bank, and some international NGOs. This support has enabled the government to close down large institutions, prevent abandonment, and move children to family-friendly environments. Bulgaria’s Child Welfare Reform Project follows a similar approach, benefiting 40,000 institutionalized children. Partnering with police, who are usually the first to come into contact with problematic
Ensuring essential social services The Bank continues to help countries reform their safety nets to ensure greater financial sustainability and better targeting. For example, a new IDA credit to Bosnia and Herzegovina supports pension reform, while an IBRD loan will help Turkey finance severance payments and labor redeployment services as the economy restructures. Loans to Azerbaijan, Bulgaria, Georgia, and Moldova are helping governments undertake major restructuring in their health and education sectors, to improve service and reduce informal payments that households are forced to make. The Moldova project will help the government develop tuberculosis (TB) and HIV/AIDS strategies. The Bank is also preparing operations to help Belarus, the Russian Federation, and Ukraine fight these diseases. In FYR Macedonia, a Learning and Innovation Credit will test community-based approaches to support youth at risk, while in Bulgaria a Bank-financed project addresses the problems of children at risk (see box 4.7). Improving governance and increasing community involvement The Bank is supporting a multipronged strategy for combating corruption, combining economic policy reform; public administration reform; legal and judi-
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family situations, marks an innovative feature of the project. Preventive actions include working with disadvantaged ethnic communities (such as the Roma who account for the majority of institutionalized children) to improve basic preschool education and day care.
cial reform; and building public oversight, transparency, and accountability in the use of public resources. In the past year the Bank has assisted Bosnia and Herzegovina, Kazakhstan, the Kyrgyz Republic, Romania, and the Russian Federation in carrying out corruption surveys, which provide the basis for devising country-specific anticorruption strategies. Support to Ukraine has helped the government take steps to eliminate nontransparent netting operations between government entities, streamline licensing procedures, and reduce the number of inspections, while promoting the adoption of improved accounting standards and disclosure procedures, as well as civil society involvement, in the budget process. Projects under development in FYR Macedonia and Latvia aim to improve the credibility of public expenditure policies and accountability to citizens, while support for institutional reform in
A renovated school in a poor, rural Moldovan community is one of several subprojects financed by the Moldova Social Investment Fund, with support from the Bank.
Croatia attacks corruption by introducing transparent working procedures in commercial courts and increasing the accountability of judges and other officials. Also to reduce poverty, the Bank is scaling up efforts to help develop effective community organizations and provide them with resources to address their own development priorities. Project experience—for example, with the Moldova and Romania Social Investment Fund Projects—shows that community organizations are often in the best position to manage local public initiatives. Projects approved this fiscal year with Community-Driven Development components will help Albania, Bulgaria, FYR Macedonia, and Turkey.
Figure 4.4 Europe and Central Asia: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $2.7 billion
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, and oil and gas.
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Table 4.4 World Bank Lending to Borrowers in Europe and Central Asia, by Sector, Fiscal 1992–2001 (millions of dollars) Sector
Classified on a Loan-by-Loan Basis
FY00
Classified on a Loan Component Basis
FY92–97
FY98–99
Annual average
Annual average
FY01
FY00
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation
393.1 1,002.2 40.4 299.3
183.5 1,452.3 316.8 295.5
160.6 764.6 22.6 196.5
234.5 183.5 90.3 164.4
130.6 635.0 22.6 177.4
243.3 57.9 94.8 165.9
27.2 281.7 140.1 4.0 278.9 172.9
60.4 372.0 550.0 25.0 5.0 60.8
62.4 359.0 44.5 252.5 168.4
32.2 853.5 5.0 9.6 30.0
151.8 309.0 10.0 222.5 168.4
93.5 817.3 5.0 54.0 34.5
232.8
326.3
-
19.8
-
84.1
109.7
329.0
87.9
66.4
47.5
61.0
203.8 30.5 416.5 162.4 120.2
308.6 15.0 495.7 373.8 85.5
35.0 207.5 507.0 173.6
439.0 303.8 85.0 176.1
295.0 207.5 507.0 157.8
468.1 7.5 306.3 85.0 114.9
Total Of which IBRD IDA
3,915.7
5,255.2
3,042.1
2,693.1a
3,606.7 309.0
4,406.3 848.9
2,733.0 309.1
2,154.1 539.0
3,042.1
FY01
2,693.1a
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding. a. Does not include special financing of $35.1 million provided by the Trust Fund for Kosovo, and $12 million provided by the Trust Fund for the Federal Republic of Yugoslavia.
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“Perhaps one of the most important aspects of our partnership with the project cofinanced by the government and the World Bank is the integration of drug users into public health interventions. The financing shows the Bank’s recogni tion of the importance of the work we do with drug users, and not justfor them.” Domiciano Siquiera of ABORDA, an NGO working with HIV-infected drug users in São Paulo, Brazil.
Latin America and the Caribbean REGIONAL CONTEXT: IMPROVING MACROECONOMIC INDICATORS, BUT INEQUALITIES PERSIST In 2000 most Latin American and Caribbean (LAC) economies were on the path of recovery after the shocks triggered by the 1998–99 crises in Asia and the Russian Federation. The region’s GDP grew by 3.8 percent over the year, responding to stabilized global financial markets and 13 percent growth in world trade. Most macroeconomic indicators improved. Inflation fell or remained stable in most countries, allowing interest rates to continue falling. Unemployment dropped in Brazil, Chile, and Mexico; it remained high, however, in Argentina, Colombia, and Peru, where political problems contributed to slowing growth. Slower growth in the United States could affect prospects for the region’s sustained recovery. Strong trade—at 51.5 percent of LAC’s GDP, nearly double the proportion of a decade ago—and high oil prices eased balance of payments pressures in the region. High oil prices helped Colombia, Ecuador, Mexico, and the República Bolivariana de Venezuela but increased the burden on oil importers, particularly in Central American and Caribbean countries, which already faced price declines for their commodity exports. Oil exporters’ higher surpluses narrowed the region’s current account deficit from $55 billion in 1999 to $47 billion in 2000—about 2.5 percent of GDP. The oil price boom prompted a temporary dip in the need for foreign savings and, accordingly, a drop in net resource flows to the region. Net foreign direct
investment dropped from a historic high of $90 billion in 1999 to a still significant $76 billion in 2000. Despite economic growth, about a third of the region’s population still lives on less than $2 a day, and deep inequalities persist in most countries. Expanding poor people’s access to health, education, and water services remains a priority, particularly for countries hit by severe natural disasters. In addition, a continentwide trend toward decentralization of powers and responsibilities is creating an urgent need for the region’s state, provincial, and municipal governments to build their capacity to deliver quality public services, especially to poor people. WORLD BANK ASSISTANCE: INVESTING IN PEOPLE, MANAGING DISASTER RECOVERY, SUPPORTING DECENTRALIZATION In fiscal 2001 the Bank helped LAC countries reduce poverty by supporting human development and disaster reconstruction programs and, in the poorest countries, providing debt relief. In the region’s larger countries, it helped strengthen the public sector and reform governance systems, often to accommodate the shifting of responsibilities from central to decentralized authorities. The Bank also participated in a major multilateral effort to help Argentina address its recession by indicating readiness to commit up to $2.4 billion over 2001 and 2002 as part of a $39.7 billion IMF-backed package. Throughout the region, wide consultations with stakeholders are a priority to ensure ownership—and therefore greater sustainability—of development efforts (box 4.8). Table 4.5 shows the value and sectoral distribution of total Bank lending to the Latin America and the Caribbean region in the fiscal 1992–2001 period. Table 8.6 (see About the World Bank) com-
Regional Perspectives
Countries Eligible for World Bank Borrowing: Antigua and Barbuda Argentina Belize Bolivia Brazil Chile Colombia Costa Rica Dominica Dominican Republic Ecuador El Salvador Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago Uruguay Venezuela, República Bolivariana de
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Latin America and the Caribbean Fast Facts Total population: 0.5 billion Population growth: 1.5% Life expectancy at birth: 70 years Infant mortality per 1,000 births: 30 Female youth illiteracy: 6% 2000 GNI per capita: $3,680 Number of persons living with HIV/AIDS: 1.8 million
pares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.12 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.5 shows IBRD and IDA lending by sector.
Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (G NI) is now used instead of gross national product (GNP).
Investing in people
Total FY01 New Commitments IBRD $4,806.7 million IDA $493.4 million
Total FY01 Disbursements IBRD $5,268.0 million IDA $198.0 million
Portfolio of projects under implementation as of June 30, 2001: $22.7 billion
Box 4.8 Wider Consultations: The Bank’s New Approach to Developing Strategy With globalization, and civil society deeply engaged in public policy debates, the Bank is consulting with stakeholders more than ever in developing assistance strategies for L AC countries. In Argentina, a new Country Assistance Strategy drew perspec tives from over 4,000 representatives from nongovernmental organizations (NGOs), unions, companies, religious groups, and academic institutions who attended Bank-organized meetings across the country. Participants discussed studies on topics ranging from education and judicial reform to transportation and the financial sector. Similar processes have been completed, or are under way or planned, in several other countries. In Mexico, the July 2000 election that resulted in a change of government was followed in October by a Bank-sponsored policy seminar attended by decisionmakers from the outgoing and incoming teams. The seminar focused on analyses and recommendations prepared by Bank staff in 36 areas ranging from macroeconomic policy to human development.
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Support for investing in people is a priority in IBRDas well as IDA-eligible countries. New Bank assistance was approved in fiscal 2001 for vulnerable children’s education and health in Colombia, basic education in Brazil and Panama, water and sanitation in Ecuador, and social protection in Argentina and Colombia—raising the Bank’s regional portfolio of ongoing projects in health, education, and social protection to $7.2 billion. The portfolio includes efforts to address inequalities. As part of an overall strategy to focus efforts in Brazil’s poorest region, for example, the Bank is supporting a government initiative to provide land and capital to about 50,000 farmers in the northeast. The Bank’s $2.6 billion health care portfolio in LAC includes Mexico’s five-year-old program to expand health-care coverage; 8.1 million poor people, mostly in small communities with no previous coverage, now have access. In the Caribbean, the Bank is helping attack the world’s highest HIV prevalence rate outside Sub-Saharan Africa, with a $155 million program to support HIV/AIDS prevention and treatment programs in several countries, starting with Barbados and the Dominican Republic. Support for Brazil’s efforts to curb the spread of HIV/AIDS has yielded good results, with a halving in the number of such deaths since 1993 (box 4.9). The Bank has provided over $2 billion since 1998 to improve education for poor people, with projects ranging from primary education in rural areas of Brazil, El Salvador, and Nicaragua, to postsecondary student loan programs in Mexico. In El Salvador, three loans totaling $148 million have supported a community-managed schools program (EDUCO) to strengthen preschool and primary education, as well as a program for secondary education. EDUCO, which brought schools and teachers to many poor rural areas for the first time, has raised the country’s primary enrollment to almost 85 percent, up from 78 percent in 1996. The EDUCO model has been used to develop similar projects in Guatemala and Honduras, also with Bank support.
In some of LAC’s poorest countries, debt relief and effective poverty reduction strategy go together. In Bolivia, Guyana, Honduras, and Nicaragua, governments—in consultation with civil society—are developing strategies to halve poverty by 2015. The Poverty Reduction Strategy Papers coincide with debt reduction provided under the enhanced Heavily Indebted Poor Countries Initiative, supported by the Bank and the IMF. In fiscal 2001 Guyana, Honduras, and Nicaragua joined Bolivia in obtaining required Bank agreement to start receiving reductions in their external debt. The agreements will reduce, over time and from all creditors, Nicaragua’s debt service by $4.5 billion, Honduras’s by $900 million, and Guyana’s by $590 million, in addition to the $1.3 billion debt service reduction for Bolivia approved in fiscal 2000.
Youths from the Terena Indigenous Tribe in Mato Grosso do Sul, Brazil, learn about the use of condoms as a way to protect themselves against HIV/AIDS.
Box 4.9 Helping Brazil Save Lives, Prevent the Spread of HIV/AIDS Two Bank loans totaling $325 million—approved in fiscal 1994 and fiscal 1999—have helped Brazil reduce the spread of HIV/AIDS, and enabled Brazilians with AIDS to live longer. The first $160 million loan supported over 400 grassroots projects
Supporting natural disaster recovery and preparedness Recovery from natural disasters remained a high priority in Central America. The Bank helped Belize, Honduras, and Nicaragua continue to rebuild after the devastation of Hurricane Mitch in 1998. In El Salvador, $33 million in education loans were reprogrammed to finance reconstruction of schools damaged in the two earthquakes of January and February 2001. The Bank is also supporting prevention efforts in Dominica, Grenada, Mexico, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines to reduce loss of life and material damage caused by natural disasters. A $60 million credit to Honduras will support a fifth phase of the Social Investment Fund, which has provided grants for reconstruction, as well as drinking water and
run by 175 NGOs in cooperation with state and municipal go vernments. They distributed over 180 million condoms, raised HIV/AIDS awareness among over half a million people at risk, and trained 3,800 teachers and 32,500 students in promoting HIV/AIDS and drug abuse prevention. The project, now in a second phase and supported by a $165 million loan, has helped reduce the number of deaths due to AIDS by 50 percent since 1993. Persons living with HIV/AIDS also receive care through the project, because it supports AIDS care units and home-care teams throughout the country. But prevention remains the project’s focus. It has helped finance a nationwide network of 170 HIV/AIDS testing and counseling centers and 800 diagnostic and treatment centers, and in partnership with the National Business AIDS Council, it enabled 3,000 companies to offer HIV/AIDSawareness training to three to five million workers.
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Figure 4.5 Latin America and the Caribbean: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $5.3 billion
Benefiting poor people in Pompoa, Honduras, this subproject is one of over 15,000 small-scale, community-driven public investments financed since 1990 by the Honduras Social Investment Fund. A fifth IDA credit of $60 million was approved in fiscal 2001, bringing the total value of the programs to $300 million.
Strengthening the public sector
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes $40.1 million in IBRD loans to two countries under a multi-country program to support HIV/AIDS prevention and treatment, for which the Bank earmarked funding of $155 million in fiscal 2001. c. Includes electric power and other energy, and oil and gas.
sanitation systems, roads, schools, and health centers for the poor. In Colombia the Bank is helping to alleviate the impact of economic crisis by supporting a workfare program and conditional cash transfers to help poor families keep children in school and maintain access to health and nutrition services.
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Lending to subnational governments emerged as a major new Bank activity in LAC in 2001. The Bank is helping Argentina’s Catamarca and Córdoba provinces, for example, to reform public finance and administration to ensure that decentralized health care, education, and public safety services are of high quality and accessible to the poor. In Mexico, the Bank has supported the federal government’s efforts to facilitate structural reforms in the country’s states, including a $505 million fastdisbursing loan to the Estado de México (the country’s largest state) in fiscal 2001. Support to Mexico has included a study of the challenges inherent in devolving responsibilities to state and municipal governments, including analysis of taxation, transfer payments, and dispute settlement mechanisms. Two projects are helping Brazil’s state governments in Bahia and Ceará improve basic education systems. Also in Brazil, the Bank is supporting the government’s fiscal stability program with a $758 million loan focused on fiscal discipline by states and municipalities, federal debt management, and public expenditure management.
Table 4.5 World Bank Lending to Borrowers in Latin America and the Caribbean, by Sector, Fiscal 1992–2001 (millions of dollars) Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
Classified on a Loan-by-Loan Basis
FY00
Classified on a Loan Component Basis
FY92–97
FY98–99
Annual average
Annual average
FY01
FY00
FY01
534.1 378.4 588.5 179.1
403.7 1,566.2 796.8 15.0
224.2 20.9 77.5 4.8
359.5 362.7 -
211.2 220.9 95.5 2.8
293.0 63.3 545.7 3.0
255.4 761.9 49.0 38.2 18.7 334.1
246.2 449.2 19.8 208.0 65.0 566.8
52.6 1,160.0 225.0 43.4 157.6
197.1
152.6
4.8
25.3
4.8
38.4
225.5
405.7
1,265.8
1,795.7
869.3
1,253.0
250.4 897.8 258.7 306.0
1,029.6 3.0 757.3 88.9 114.5
640.6 28.2 10.8 147.3
381.4 422.5 13.5 38.0
693.6 28.2 10.8 141.5
435.7 444.6 6.8 120.9
5,272.9
6,888.3
4,063.5
5,300.1
4,063.5
5,300.1
4,957.1 315.8
6,406.4 481.9
3,898.2 165.3
4,806.7 493.4a,b
451.9 984.1 10.1 455.4a
73.8 1,307.5 185.0 43.0 175.6
458.7 964.5 12.1 660.4a
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding. a. Includes $40.1 million in IBRD loans to two countries under a multicountry program to support HIV/AIDS prevention and treatment, for which the Bank earmarked funding of $155 million in fiscal 2001. b. Excludes IDA HIPC grants of $37 million to Honduras in fiscal 2001.
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89
“I am now 95 years old. This was the first time that someone asked us what projects we needed… and then it was realized.” A man from the small town of Um Dar by Jenin (West Bank and Gaza), commenting on the Bank’s consultations with villagers for the Community Development Program Road Project.
Countries Eligible for World Bank Borrowing: Algeria Djibouti Egypt, Arab Republic of Iran, Islamic Republic of Iraq Jordan Lebanon Morocco Syrian Arab Republic Tunisia Yemen, Republic of This section also reports on the West Bank and Gaza.
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Middle East and North Africa REGIONAL CONTEXT: IMPROVING PERFORMANCE, STILL FACING SERIOUS CHALLENGES Starting in the late 1980s many of the economies of the Middle East and North Africa (MNA) region committed to far-reaching economic reforms to restore macroeconomic balances and promote development led by the private, rather than the public, sector. Economic performance improved: annual GDP growth increased from 2.4 percent in 1981–90 to 3.1 percent in the 1991–2000 period, as well as over the past year. Despite the improved performance, the region faces serious economic and social challenges. The break in the peace process, resulting in border closures, has posed severe problems in the West Bank and Gaza. Unemployment rates, averaging over 15 percent regionally, are of mounting concern. Much of the region is still characterized by large public sectors, with centralized governments, overstaffed civil services, and weak systems of accountability. Several countries continue to be extremely vulnerable to weather and commodity price shocks due to their limited economic resource base. Basic infrastructure and services vital for private sector growth remain weak. Integration with the rest of the world still lags behind other developing economies in Asia and Latin America. Poverty, though relatively low by some income measures, persists in large pockets throughout the region.
The World Bank Annual Report 2001
WORLD BANK ASSISTANCE: SUPPORTING THE PRIVATE SECTOR, PUBLIC INSTITUTIONS, AND HUMAN RESOURCES The diversity of the MNA region’s challenges calls for customized Bank assistance. Fiscal 2001 was marked by continued support for client-driven services to alleviate poverty; rapid response to severe economic shocks in the West Bank and Gaza (through grant and concessional financing provided by the Bank’s Trust Fund for Gaza and the West Bank); and reimbursable technical assistance to the Gulf Cooperation Council countries as well as Malta and Libya—whose incomes make them ineligible for IBRD lending but which benefit from advisory services in a wide range of areas. The Bank’s assistance strategy to MNA countries focused on three priority areas in fiscal 2001. The first was helping strengthen the overall climate for investment and private sector–led growth—critical for employment generation—by maintaining macroeconomic stability and pursuing efficiency-enhancing policy reform. A second priority was support for strengthening public sector management and institution building through more efficient use of budgetary resources and enhanced mechanisms for participation. Bank assistance also focused on social protection and human resource development by helping countries improve the quality and coverage of education and health-care services, reduce disparities in incomes and access to services through targeted community-based development, and protect the vulnerable with effective social policies. In addition, support for knowledge sharing through the Global Development Learning Network (GDLN) strengthens prospects for empowerment of people and increases the region’s productivity (box 4.10).
Middle East and North Africa Fast Facts
The Bank increasingly depends upon partnerships in the development process. Broad consultation with civil society and the poor is essential to better understanding their needs and helping them plan and implement their own development strategies. In Morocco, for example, the Bank organized consultations with over 55 civil society representatives to inform the preparation of its Country Assistance Strategy (CAS). Partnership with other development organizations is equally vital, to share knowledge and avoid gaps and overlaps in activities. For example, the Bank-sponsored Palestinian nongovernmental organization (NGO) project (Phase II approved in fiscal 2001), designed to strengthen NGOs’ capacity to deliver improved services to the poor, has drawn international attention to the approach of relying on NGOs’ comparative advantages in addressing the needs of poor people. Partnership has also helped Egyptian women obtain identification cards (see box 4.11). Table 4.6 shows the value and sectoral distribution of total Bank lending to the Middle East and North Africa region in the fiscal 1992–2001 period. Table 8.7 (see About the World Bank) compares commitments, disbursements, and net transfers to the region for fiscal 1996–2001, and table 8.13 (see About the World Bank) shows operations approved in fiscal 2001, by country. Figure 4.6 shows IBRD and IDA lending by sector.
Total population: 0.3 billion Population growth: 1.9% Life expectancy at birth: 68 years Infant mortality per 1,000 births: 44 Female youth illiteracy: 23% 2000 GNI per capita: $2,040 Number of Persons living with HIV/AIDS: 0.4 million Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other indicators are for 2000, from the World Development Indicators database. The term gross national income (GNI) is now used instead of gross national product (G NP).
Total FY01 New Commitments IBRD $355.2 million IDA $152.3 million
Total FY01 Disbursements IBRD $666.2 million IDA $123.0 million
Portfolio of projects under implementation as of June 30, 2001: $5.9 billion Box 4.10 MNA Joins the Global Development Learning Network (GDLN) With some 25 countries around the world connected to the GDLN, this year saw the opening of the first two GDLN centers in the MNA region, in Jordan and Egypt (with Egypt’s GDLN soon to become fully operational). Plans are under way for a center in Saudi Arabia. Algeria, Morocco, Tunisia, and the Republic of Yemen have also expressed interest in being connected. The GDLN provides a platform for developing countries to exchange information. As other MNA economies link to the GDLN, the network offers great potential to become a powerful facility for collaborative information-sharing on issues common to the region, with substantial benefit for effective policymaking.
Strengthening the climate for investment and pri vate sector–led growth
At the country level, sharing of information among the government, civil society, and interested parties also promotes partici pation in the development process. By enabling the exchange of
Sustained growth that raises incomes and extends benefits to the poor is critical for poverty reduction and job creation. Helping countries pursue faster, sustainable growth is a defining theme of Bank support to the MNA region, both through CASs (Djibouti and Morocco, and an interim assistance strategy for the Islamic Republic of Iran) and sources of growth studies (Jordan and Lebanon). To promote private sector development, the Bank helped Tunisia strengthen urban transport capacity while supporting Morocco in privatization and further liberalization of its telecommunications sector. Trade and competitiveness studies for Egypt, the Islamic Republic of Iran, Tunisia, and the West Bank and Gaza, as well as support for information infrastructure in Morocco and an information technology strategy for Algeria, also underscore the
experience among countries, the GDLN offers a potentially important vehicle for finding common solutions to problems facing the MNA region.
importance of enhancing the region’s integration with the global economy. Extensive work toward a private sector development strategy for Kuwait offers an example of the Bank’s growing emphasis on private sector development and competitiveness issues in the region. Gender and cultural issues also affect growth. Empirical evidence increasingly demonstrates that gender inequality contributes significantly to
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In fiscal 2001, the World Bank responded rapidly to the unemployment crisis in the West Bank and Gaza through the Emergency Response Program, which supported infrastructure improvements through laborintensive activities, and has already, in its first five months of implementation, created about 180,000 man-days of work.
Figure 4.6 Middle East and North Africa: IBRD and IDA Lending by Sector, Fiscal 2001 Share of total of $0.5 billion
Note: Sector classification is on a loan component basis. See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes mining.
poverty. Bank assistance to the region has sought to close the gender gap and mainstream gender concerns in policy dialogue, projects, and economic and sector work. In 2000 over 55 percent of lending operations in MNA addressed gender issues— higher than any other Region and more than double the rate of 10 years ago. At the suggestion of the MNA Consultative Council on Gender, a gender
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dialogue series was launched in fiscal 2001 to help MNA Region staff implement the Bank’s gender policies. The Bank also recognizes that preserving cultural heritage is integral to MNA’s development strategy. Efforts in fiscal 2001 included a cultural heritage preservation project in Tunisia and a comprehensive report on cultural heritage preservation in the region. Public sector management and institution building Institution building, to improve public sector accountability and efficiency, is a key theme of Bank assistance to the MNA region. In fiscal 2001 the Bank helped strengthen the public administration’s ability to provide basic social and infrastructure services through, for example, support for long-term education strategies in Djibouti, Morocco, and the Republic of Yemen, and for pension system improvements in Djibouti and the West Bank and Gaza. Other new operations reinforced local public institutional capacity (Morocco and the Republic of Yemen), making public expenditure more efficient. They also pave the way for greater decentralization as well as reliance on civil society and the private sector in planning and delivering public services. The Bank also supported budgetary systems in Algeria, Jordan, and the Republic of Yemen, for an innovative and comprehensive public sector reform credit. Important capacity-building activities were initiated in Egypt in the area of project appraisal, monitoring, and evaluation. Social protection and human resource development Although MNA’s poverty rates are relatively low, other social indicators signal a more serious poverty problem. In fiscal 2001 the Bank continued to build knowledge on poverty, through reviews and assessments (Egypt, Morocco, and the West Bank and Gaza). Helping countries address the survival needs of those in society who are unable adequately to
Through the joint efforts of the World Bank and a local civil society organization, women in Egypt are finally getting registered, and gaining access to important social and education services.
Box 4.11 Helping Alleviate Poverty among Egyptian Women: The Power of Partnership In many of the poorer communities in Egypt, people—particularly women—are not registered at birth, making it impossible for them to access basic rights and services. In fiscal 2001 the Bank’s MNA staff teamed up with an Egyptian civil society organization, the Egyptian Center for Women’s Rights, to support women’s access to identification cards and birth certificates, through the Bank-sponsored Development Marketplace. The project funded some of the costs of issuing identification cards in the Greater Cairo area and raised awareness among other NGOs, the media, the general public, and the government. As a result of the campaign, women who have received identification cards are filing for and receiving inheritances, registering for literacy classes, voting, and receiving pensions.
help themselves has also been a priority. An Emergency Response Program in the West Bank and Gaza, for example, created labor-intensive emergency employment activities for thousands of persons facing severe economic hardship. The Bank also helped countries design and implement safety nets in fiscal 2001, with an assessment of social protection in Egypt and preparation of a comprehensive regional study of social protection schemes. Rural and community development have emerged as important areas of Bank support, with targeted community development (Lebanon and the West Bank and Gaza), and support for rural infrastructure (Morocco and the Republic of Yemen). Support for expanding access to safe water in the Republic of Yemen is also allowing tremendous savings of time devoted to collecting water—particularly for women and girls, who can instead pursue schooling. New Bank operations in MNA, recognizing the vital role of water management, have supported irrigation improvement (Morocco and the Republic of Yemen), water resource management (Jordan and the Syrian Arab Republic), and agricultural competitiveness assessments (Egypt and Morocco). The Bank also sponsored the Nile Basin Initiative in fiscal 2001 to foster constructive dialogue among the Nile’s 10 riparian states and generate win-win solutions to the problem of Nile water-sharing. In addition, it chaired an important meeting of the International Consortium for Cooperation on the Nile in June 2001. Helping expand access to education and health services remains a cornerstone of the Bank’s work in supporting poverty reduction. In fiscal 2001 the Bank continued its long-standing commitment to education in MNA with support for education projects in Djibouti, the West Bank and Gaza, and the Republic of Yemen. Responding to the government’s concern over the implications of fast-growing university enrollments, the Bank also produced an analysis on rationalizing higher education in the Republic of Yemen. Support in fiscal 2001 for sanitation and solid waste management, meanwhile, will help improve public health and quality of life in the West Bank and Gaza and the Republic of Yemen.
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Table 4.6 World Bank Lending to Borrowers in the Middle East and North Africa, by Sector, Fiscal 1992–2001 (millions of dollars) Sector
Agriculture Economic policy Education Electric power and other energy Environment Finance Mining Multisector Oil and gas Health, nutrition, and population Private sector development Public sector management Social protection Telecommunications Transportation Urban development Water supply and sanitation Total Of which IBRD IDA
Classified on a Loan-by-Loan Basis
FY92–97
FY98–99
Annual average
Annual average
307.4 195.8 95.1 88.3
Classified on a Loan Component Basis
FY00
FY01
FY00
FY01
284.1 185.0 96.5 27.0
153.0 219.2 -
75.2 66.0 -
153.0 233.5 -
75.2 70.0 -
27.8 90.8 6.7 32.5 56.0
17.5 119.5 120.5
83.5 87.0
18.0 -
72.5 62.8 119.0
8.5 18.0 4.0
20.6
68.0
15.9
-
15.9
-
9.2
27.0
35.3
143.7
35.3
163.8
45.9 20.0 58.9 188.3 91.4
88.8 28.9 173.0 45.0
75.0 9.0 15.0 82.2 145.0
20.0 65.0 82.6 17.0 20.0
49.4 9.0 15.0 82.2 72.5
12.0 44.9 82.6 8.5 20.0
1,334.7
1,280.8
920.1
507.5a
920.1
507.5a
1,183.8 150.9
955.5 325.3
760.3 159.8
355.2 152.3
Note: See table 1.1, page 26. Numbers may not add to totals because of rounding. a. Does not include special financing of $36.1 million provided by the Trust Fund for Gaza and the West Bank.
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Chapter 5
Development Effectiveness
The bottom line for the World Bank is its development effectiveness. The independent Operations Evaluation Department (OED) tracks the Bank’s development performance, analyzing the effectiveness of Bank projects, programs, and processes; draws lessons of operational experience; and provides advice to the Board based on evaluations at the project, country, and sector levels. OED also guides evaluation capacity development in client countries. Each year, evidence from these evaluations is marshaled to produce a summary report on the Bank’s development effectiveness. This year’s Annual Review of Development Effectiveness (ARDE)confirms that the Bank’s development performance has improved significantly over the past five years. This improvement is clearly evident at the project level. In particular, the quality of IDA’s work in the poorest countries has improved, though further gains are necessary. PROJECT PERFORMANCE IS IMPROVING The performance of Bank-supported projects has improved markedly and contributed to better development results, as reported in the ARDE. Preliminary results show an increase from 73 percent of closed projects with satisfactory outcomes in fiscal 1999 to
78 percent in fiscal 2000, when weighted by the number of projects (figure 5.1). In addition, 43 percent of the projects resulted in substantial institutional development impact—an increase from 31 percent in 1990–94—and projects with benefits sustainable over the long term rose to 57 percent from 48 percent just two years earlier. The quality of adjustment lending improved steadily and markedly throughout the 1990s, as measured, inter alia, by OED ratings for outcome, sustainability, and institutional development impact (figure 5.2); the poverty and social focus of adjustment lending has also increased substantially over time. A retrospective undertaken in fiscal 2001 also found that adjustment lending has become an important developmental instrument that has evolved in tandem with countries’ broader reform agendas, focused increasingly on long-run structural, social, and institutional issues. Further work is under way, including on social impact, conditionality, and fiduciary framework. Overall, the increased share of closed projects with satisfactory outcomes reflects the steady improvement in the quality of ongoing projects, as reported by the Quality Assurance Group (QAG). Created in 1996, QAG has played a key role in improving the development effectiveness of Bank operations by providing managers and staff with real-
Figure 5.1 Trends in Project Outcomes (percent of projects with satisfactory outcomes)
Development Effectiveness
95
Box 5.1 Building Partnerships for Project Supervision Strong partnerships in project supervision pay rich dividends: greater likelihood of development impact, better chance for success of complex project designs, and lower cost of supervision for project financiers. Building effective alliances among the client, stakeholders, and donors has become a growing priority. In the Peru Rural Roads Rehabilitation and Maintenance P roject, for example, teams from the Bank and the Inter-American Development Bank (a cofinancier) furnish complementary skills and coordinate their field visits. The supervision teams also interact extensively with local government and communities, which play a significant role in the project’s successful implementation. Increasing development effectiveness through partnerships is a process of continuous learning. Key factors are a willingness to listen, establishment of common goals and roadmaps to achieve them, and adjustment of work processes in the interest of compatibility. Greater progress in harmonizing donor procedures remains an important challenge in this regard.
Figure 5.2 Quality of Adjustment Lending (percent of operations with satisfactory outcomes)
development effectiveness. The dollar amount of active projects supporting public sector governance and institutional reform—which strongly affect how aid funds are used—has doubled over the past five years; about half of all adjustment loans have had fiscal transparency and anticorruption components. The Bank has also substantially strengthened compliance with safeguard and fiduciary policies—which promote project sustainability when applied pragmatically—and improved projects’ financial management, with a near quadrupling of financial management specialists and substantial reliance on new Country Financial Accountability Assessments. In another crucial yet difficult area, the Bank has launched new efforts to improve monitoring and evaluation of development outcomes; sustained efforts will be required, over several years, for results to become evident. Finally, decentralization of Bank staff to the field is believed to be beneficial. As the number of field offices, country directors in the field, and operations being prepared and supervised by staff in the field have increased, key quality indicators have improved, with strongly supportive client feedback. ASSESSING COUNTRY PROGRAM PERFORMANCE
Note: Weighted by disbursements.
time information on projects’quality and risk. With sustained effort, the Bank’s portfolio of active projects is now healthier than it has been since the early 1980s. At the end of fiscal 2001 only 12 percent of projects were “at risk” of not achieving their development objectives, compared with more than double that ratio in fiscal 1996. The quality of project preparation and supervision has also improved significantly, as has the Bank’s analytical (economic and sector) work. The improvements over the fiveyear period, moreover, have been broad-based, and have benefited from heightened efforts to work in consultation and partnership with others (box 5.1). The Bank has made other advances in improving
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To ascertain whether the Bank’s Country Assistance Strategies (CASs) have delivered results on the ground, OED uses three complementary evaluation methods: aggregating performance information on individual lending and nonlending activities; relating the inputs to country assistance programs to their outputs, outcomes, and impacts; and assessing the performance of the Bank against its own policy benchmarks and procedures along with the performance of other actors. This approach has allowed OED to identify the most important determinants of country program outcomes: borrower commitment and the extent to which Bank strategies, programs, processes, and partnerships have been adapted to the country setting. These findings demonstrate that instruments for assessing ownership, such as stakeholder analysis, should be used more widely than they have been in CAS formulation as well as in the design and execution of policy reforms and development programs. Analysis of OED data suggests that sound macroeconomic policies and high-quality institutions increase the effectiveness of development investments. The Bank’s research confirms that country
policies have improved during the 1990s, and that overall bilateral and multilateral aid was better targeted to countries endowed with policies that provide a suitable framework for effective development assistance. Conversely, countries with poor enabling environments received less aid (see figure 5.3).
Overall, the OED review found the development outcomes of IDA programs—influenced by exogenous factors and borrower and partner performance, Figure 5.3 Poor Performers Experience a Decline in Aid 1992–1994
IMPROVEMENTS HAVE BEEN MADE IN IDA COUNTRIES The performance of IDA over recent years has improved. OED conducted a review of the implementation of undertakings under IDA-10, IDA-11, and the first year of IDA-12. These undertakings included: (1) sharpening the poverty focus of support for country development; (2) expanding access to social services, fostering broad-based growth, promoting good governance, and integrating gender and environmental considerations into development efforts; and (3) increasing effectiveness through more selective, more thorough, and better-coordinated CASs. OED’s review found that these undertakings were highly relevant and timely. They encouraged IDA to move in step with the evolving consensus of the international development community. But they also were extraordinarily demanding for both IDA and its borrowers. Overall, OED found IDA’s implementation of these undertakings to be satisfactory, but with qualifications. IDA has strengthened the poverty focus of its analytical work, policy dialogue, and lending. In countries committed to economic reform, it has contributed to increased economic stability, fewer distortions, and improved infrastructure development. But broad-based, job-creating growth remains a challenge. Moreover, IDA was slow to comply with its governance undertakings, although its performance has improved considerably over the past five years. Progress in mainstreaming gender, environmental, and private sector development objectives has proven challenging—reflecting a lack of interest by many countries—and led to the design of new thematic strategies. IDA project performance has improved steadily over the period (see figure 5.4). Outcomes of completed projects have risen to more than 70 percent satisfactory. Sustainability and institutional development impact also have improved. Much progress can be seen in project-level outcomes as well as in quality indicators coming from QAG assessments.
Country policy ratings
1998
Country policy ratings
Figure 5.4 Trends in Performance of IDA Projects Closing in the Years Covered by Replenishments 9, 10, and 11 Percent of total
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in addition to IDA’s own performance—to be partially satisfactory. Of importance, going forward, are recent initiatives geared to improving coordination and harmonization of poverty reduction strategies in IDA countries.
Box 5.2 OED Uses Participatory Approaches in Evaluation The participatory consultation process for OED’s evaluation products has included sharing design formats, eliciting information on performance and processes, and disseminating findings to stakeholders through workshops. Here are the highlights:
SECTOR AND THEMATIC PERFORMANCE IS STARTING TO SHOW RESULTS The Bank’s move beyond projects toward the higher plane of country strategy has been paralleled by a shift toward improving sector and thematic performance, at both the country and global levels. The challenge has been to strengthen the strategic focus and policy content of services within particular sectors and to integrate crosscutting thematic priorities—including poverty, participation, and gender— into the range of Bank activities. The ARDE’s findings suggest that the Bank’s efforts to improve development effectiveness during the past five years are starting to show results, although not uniformly across sectors. OED’s analysis of sector and thematic performance suggests that four factors are associated with successful sector strategies: a clear policy framework; an action plan to improve on past performance; a specific program of development assistance at the country and global levels; and a definition of the Bank’s role taking account of partners’activities. OED’s analysis also confirms that the Bank has strengthened the poverty focus of its operations. The considerable growth of poverty assessment activities, the expansion of social sector lending, the increased decentralization of country assistance management, and the increased focus on governance concerns have contributed to this wholesome trend. But more needs to be done to integrate broad-based poverty reduction strategies into macroeconomic and sector programs and to strengthen poverty monitoring and evaluation. THE BANK IS PROMOTING PARTICIPATION AND INSTITUTIONAL DEVELOPMENT The World Bank has made participation a central feature of its development efforts since the mid1990s. It has expanded its work with regional and local governments in borrowing countries, cultivated new development partners and intensified its engagement with existing ones, and opened dialogue
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■ A joint workshop with the Bank’s research arm, the Development Economics and Data Group, brought together donors, country participants, nongovernmental organizations (NGOs), and partners from borrowing countries to discuss the approach and design of an evaluation of the CDF. ■ In conjunction with the initiation of a review of global public goods, an entry workshop of 50 participants discussed issues in financing and evaluation in the areas of environment, health, knowledge, and financial stability. ■ The Forestry Review conducted workshops at entry, mid-point, and exit that included a wide range of participants from both inside and outside the Bank. ■ The Environment and Social Funds Reviews engaged in broad stakeholder participation at entry and mid-point in their evaluations. ■ The Gender Review engaged stakeholders from across regions and numerous partners including bilateral donors, NGOs, client country representatives, the United Nations, and the European Union. ■ The India Country Assistance Evaluation involved stakeholders across a number of sectors, ministries, and organizations. ■ Workshops have been part of OED’s dissemination strategy for the ARDE, Aid Coordination Study, and Forestry Review, among others.
with civil society. Participation is the cornerstone of initiatives such as the Comprehensive Development Framework (CDF) and, more recently, of Poverty Reduction Strategies; OED also uses participatory approaches in evaluation (see box 5.2). The participatory process has involved a wide range of interactions, on many fronts, between the Bank and its clients and partners, but few objectives are more important than institutional development. Institutional development has become a focus of Bank lending in its own right, increasing from 18 percent of total lending in 1996 to 30 percent in 2000. Community participation has become especially important to the Bank’s efforts to build lasting institutions. Since 1992 the percentage of projects with community participation has increased from 41 percent to 67 percent (see figure 5.5). OED has found that this participation helped beneficiaries tai-
Figure 5.5 Percentage of Projects with Community Participation (share of total projects)
had not traditionally worked together; and led to better development results. MANAGEMENT IMPLICATIONS
Note: Based on 189 projects sampled.
lor projects to better meet their needs; gave people a sense of pride, control, and ownership; made projects more sensitive to issues such as domestic violence; increased transparency in decisionmaking and contracting; fostered cooperation among people who
The results of OED’s studies have three implications for corporate management. First, Bank strategies, programs, and budgeting processes need to be strongly linked to the achievement of results consistent with the Bank’s mission and comparative advantage. Second, the Bank needs to strike an appropriate balance between knowledge management and knowledge creation—at both the country and global levels—and establish monitoring and tracking processes to strengthen the quality and coherence of its knowledge activities. Finally, the Bank must continuously assess its comparative advantage so as to improve its development effectiveness and to withdraw from activities better carried out by other development partners.
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Chapter 6
Partnerships for Development
Coming out of the World Bank’s renewal since 1997, partnership has become a way of doing business for the Bank. The Bank is investing considerably in collaborative efforts, albeit with greater selectivity over the past year. Such investment has meant intensified relationships with client governments and shareholders—the Bank’s foremost partners—as well as with the Bank’s main institutional partners, and broad efforts to improve collaboration with other actors in development, such as civil society and the business sector. At the country level, collaboration with highlevel government, parliaments, the private sector, civil society, and multilateral and bilateral donors has intensified and broadened. The principles underlying the Comprehensive Development Framework (CDF)—a holistic approach to development, stronger country ownership, more strategic partnerships, greater accountability, and focus on development results—are guiding the preparation process of the Poverty Reduction Strategy Paper (PRSP) in lowincome countries. Partnership is key: among internal partners to build national consensus—crucial for sustainability—and among external partners to align support around the country’s strategy. Alignment is aimed at reducing wasteful competition and overlap among donors and at promoting learning, selectivity, transparency, and accountability. The Bank is also entering into global partnership initiatives to address issues at the transnational level. Provision of global public goods requires the joining of mandates and capabilities of many organizations. For example, United Nations (U.N.) agencies have a mandate in several key global public goods areas, such as communicable disease control, while partnership with the IMF is central to the Bank’s role in public goods related to global economic governance, trade, and financial stability. Partnership with other institutions, multilateral and bilateral donors, foundations, nongovernmental organizations (NGOs), and the private sector is also crucial. The Bank’s Strategic Framework for poverty reduction, articulated in fiscal 2001, emphasizes five areas for Bank support at the global level: communicable diseases,
environmental commons, trade and integration, international financial architecture, and the information and knowledge revolution. INSTITUTIONAL PARTNERS International Monetary Fund. Collaboration with the IMF has assumed new vigor. Intense partnership through a Joint Implementation Committee resulted in substantial progress on debt relief and PRSPs in fiscal 2001; the two Boards approved debt relief for 16 countries under the Heavily Indebted Poor Countries (HIPC) Initiative and discussed Full or Interim PRSPs of 32 countries. A first-time joint visit by the heads of the two institutions to Africa, where the majority of HIPC-PRSP work has been concentrated, signaled the same high degree of partnership. In another area of momentum, 23 countries participated in the joint Financial Sector Assessment Program, which flags vulnerabilities in countries’ financial sectors (see also page 57). In line with the division of labor between the IMF and the Bank— and with a view to taking better advantage of the complementarity between the two institutions—each institution concentrates on its primary areas of responsibility and competence. The IMF leads the dialogue with country authorities on macroeconomic issues, and the Bank, the dialogue on social and structural issues. United Nations. Bank cooperation with the U.N., focused on poverty reduction and investment in people, dates back to the inception of the two institutions. The international development goals agreed on at U.N. global conferences in the 1990s as a frame of reference for that institution’s mission underscore the all-encompassing nature of the Bank-U.N. partnership. In fiscal 2001 the Bank helped prepare the General Assembly Special Session on HIV/AIDS, and the International Conference on Financing for Development, a major event scheduled for early 2002. Operational collaboration is also significant, for example on HIV/AIDS projects with the Joint United Nations Programme on HIV/AIDS
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(UNAIDS), food security projects with the Food and Agriculture Organization, and support for PRSP preparation with other agencies. A U.N. agency internal learning group meets regularly with the Bank on the CDF. In the past year Mr. Wolfensohn has also participated in high-level U.N. meetings. Multilateral development banks (MDBs). Also stronger in recent years has been partnership across MDBs—the World Bank and the four regional development banks, namely, the African Development Bank (AfDB), the Asian Development Bank (ADB), the Inter-American Development Bank (IADB), and the European Bank for Reconstruction and Development. Intensified coordination at all levels includes regular meetings of MDB presidents, who in February 2001 agreed on poverty reduction as a joint objective and on common development principles echoing those of the CDF. A particular challenge for MDBs—often the most important external partners for poorer countries—is the harmonizing of policies and procedures. Several technical working groups have been established to work on harmonization and convergence in the way MDBs work. To avoid duplication and enhance effectiveness, the Bank has signed Memoranda of Understanding with AfDB and IADB, respectively, while one with ADB is under preparation. A protocol on supporting countries preparing PRSPs was agreed on among MDBs and the IMF. The European Union (EU). Also strong is the Bank’s partnership with the EU, which accounts for 60 percent of total official development assistance. The EU is a major political player, trading partner, and source of foreign investment for the developing world. Cooperation covers support to Central and East European countries (EU accession); the Commonwealth of Independent States; Bosnia and Herzegovina (successfully raising funds for its $5.1 billion economic recovery program); and Kosovo, the Federal Republic of Yugoslavia, and Balkan reconstruction through a Joint European Commission (EC)–World Bank Office for South East Europe in Brussels. The Bank Group has developed in detail, and expects to sign shortly, a Framework Agreement with the EC on cofinancing and trust funds, aimed at streamlining administrative arrangements for a broad range of financial partnerships in the future. The EC also supports
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the HIPC Initiative and PRSP Programs, and has committed to cofinance the new Poverty Reduction Support Credits and contribute to a new Bank-managed multidonor trust fund on public expenditure management. Collaboration on global-level issues extends to the CDF, the Global Environmental Facility, the Asia-Europe Meeting Trust Fund, governance, anticorruption, and climate change. Organisation for Economic Co-operation and Development (OECD). Partnership with the OECD
has strengthened considerably in recent years. Collaboration with the organization’s Development Assistance Committee (DAC) has been especially important: DAC provides a forum for OECD members to achieve, as bilateral donors, greater coherence and convergence in their development programs. DAC members—which together contributed over $53 billion in bilateral aid in 2000—have significantly strengthened their poverty focus over the past year (by adopting the DAC Guidelines on Poverty Reduction). In addition, they have expressed an intention to align aid programs within the PRSP framework and to untie their aid to least-developed countries. Beyond low-income countries, the Bank collaborates with OECD on a broad agenda including trade, environment, corporate governance, anticorruption, and the digital divide. Objectives are to minimize duplication of effort, maximize synergies, and learn from each other. THEMATIC PARTNERSHIPS Communicable diseases. With three million people
a year lost to AIDS, two million to tuberculosis, and over a million to malaria, partnerships to control the mounting threat to development from communicable diseases have assumed a heightened urgency. As HIV/AIDS continues to spread, global collaboration becomes imperative (box 6.1). The Bank has also been partnering with affected countries, the World Health Organization (WHO), bilateral donors, and NGOs through the Stop Tuberculosis Initiative, to mobilize over $125 million toward research for new drugs and vaccines and expanded access to existing drugs. Another important initiative is Roll Back Malaria, an African-led initiative launched by the Bank, WHO, the United Nations Children’s Fund (UNICEF), and the United Nations Development Programme (UNDP) in 1998 to help mobilize
Box 6.1 Partnership against HIV/AIDS Only with concerted effort can the world hope to win the fight
resources for the fight against malaria. An important public-private partnership is the Global Alliance for Vaccines and Immunization, already improving access to existing childhood vaccines while accelerating the development of new ones.
against HIV/AIDS. Significant as the outstanding agenda is, there is reason for hope: ■ More governments than ever before have confronted HIV/AIDS publicly over the past year, displaying leadership and commitment, followed by action. ■ Global support has grown, with front-page coverage in peri-
Child labor. The International Labour Organisation,
UNICEF, and the World Bank have recently launched a Cooperative Research Program in the campaign against child labor. Under this effort the Developing New Strategies for Understanding Children’s Work and Its Impact Project aims to improve child labor data collection and analysis and to help developing countries design appropriate interventions. This project allows the three agencies to collaborate at the technical level to address issues of common concern and to exploit each agency’s comparative advantage in order to provide sound advice to countries in the area of child labor.
odicals, targeted campaigns, more resources, and U.N. General Assembly and Security Council resolutions on HIV/AIDS. ■ A U.N. General Assembly Special Session held in June 2001 renewed global commitment to cooperation amid a heightened awareness that funding from all sources needs to increase substantially for the spread of HIV/AIDS to be halted by 2015—a goal agreed on at the session, to be incorporated into the Millennium Development Goals. ■ Following negotiations with UNAIDS cosponsors—including the Bank—under the Accelerating Access Initiative, manufacturers of HIV/AIDS drugs have reduced their prices by 90 percent. ■ The Bank is a founding member and supporter, through the Development Grant Facility, of the International AIDS Vaccine
Trade. Particularly with globalization, partnerships
Initiative (IAVI). IAVI is promoting the development of
to help developing countries create—and take advantage of—new trade opportunities are becoming crucial. The Bank has been working with many multilateral and bilateral agencies (the World Trade Organization, IMF, the International Trade Center, UNDP, and the U.N. Conference on Trade and Development) under the Integrated Framework (IF) Program created in 1996 to enhance trade-related technical assistance to developing countries. The IF has recently been redefined to ensure better integration of trade with national development strategies. In addition, the Bank engages in a regular dialogue with the International Confederation of Federal Trade Unions on a wide range of issues, including Bank economic and social policies, core labor standards, and country-level experience with development programs.
HIV/AIDS vaccines for developing countries. ■ The Bank has worked with U NAIDS and the International Partnership Against AIDS in Africa to help several African countries prepare projects under the $500 million MultiCountry HIV/AIDS P rogram (seven of these projects were approved in fiscal 2001). Similar support to Caribbean nations is benefiting from collaboration with U NAIDS, the Pan American Health Organization, WHO, and other regional partners. The Bank has also worked closely with the IMF and UNAIDS to help countries integrate HIV/AIDS support into HIPC and PRSP Programs. ■ The International AIDS Economic Network—a partnership of the Bank, UNAIDS, the U.S. Agency for International Development, and the EU—provides data, tools, and analysis for compassionate, cost-effective responses to the epidemic to thousands of researchers and practitioners worldwide.
Environment. Partners are vital to helping the Bank
Box 6.2 Consultative Group on International Agricultural
meet its environmental goals and commitments to global objectives such as reducing hunger (box 6.2). In fiscal 2001 the Bank teamed up with Conservation International and the Global Environment Facility to launch a Critical Ecosystems Partnership Fund. The fund will protect highly threatened “biodiversity hot-spots,” also helping poor people whose survival depends on the biodiversity. Also in fiscal 2001, the World Commission on Dams, initiated by the Bank and the
Research (CGIAR) Since 1971, the Bank has provided strong support for the CGIAR—a network of 16 international agricultural research centers that mobilize cutting-edge science to reduce hunger and poverty in developing countries, improve health, and protect the environment. In fiscal 2001 CGIAR developed high-protein, miracle corn to help prevent malnutrition—winning the Millennium World Food Prize—and a vaccine for East Coast Fever, with spillover benefits for malaria and cancer research.
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World Conservation Union, launched its landmark report—Dams and Development: A New Framework for Decision-Making; the Bank is now working with its clients to see how the report’s findings can be used to improve performance. Other collaborative efforts in recent years are helping countries save forests, better prepare for natural disasters, and address climate change (see page 21 on the Prototype Carbon Fund).
ing sustainable resources from the private sector, public sector, and local leadership, with plans for replication in African, East European, and Asian cities. Another area of public-private partnership relates to the World Bank Institute’s (WBI’s) efforts to develop capacity-building programs linked to lending operations on HIV/AIDS, where companies are helping to inventory best practices and programs toward establishing a platform for knowledge sharing.
Governance. The Bank has, since the mid-
Knowledge and information. Combined with infor-
1990s, given high priority to issues of corruption and governance, which hurt poor people the most. Collaboration with MDBs takes place through a Working Group on Governance and Anticorruption. Partnership with UNDP complements Bank contributions; close collaboration is promoting efficient use of resources and reducing unnecessary duplication. The Bank has also been active in promoting corporate governance, particularly since the 1997–98 Asian crisis when weak disclosure practices and shareholder rights hurt investors. A Global Corporate Governance Forum in March 2001, established jointly with the OECD, aims to address countries’ corporate governance weaknesses, and thereby improve their investment climate.
mation and communications technologies, knowledge is a critical engine for development and for empowering poor people. Low rates of physical connectivity, inadequate skills, and weak policies sharply constrain access by poor countries, however. The Bank is working with a variety of partners to help countries develop appropriate legal and regulatory environments; support education through programs that explicitly focus on global knowledge linkages (see box 6.4); encourage investment in information infrastructure; and support a network of global knowledge centers, such as the CGIAR. The Bank’s development research work increasingly involves partners, for example through extensive worldwide consultations in preparation of the World Development Report (WDR) 2000/2001and the World Development Indicators . An important knowledge partnership that in fiscal 2001 became an independent organization is the Global Development Network (GDN), which links research institutes around the world; now with a self-governing body including representatives from all regions as well as the Bank and UNDP, GDN is helping to foster world-class local knowledge for world-class local solutions. The WBI also helps further the Bank’s knowledge agenda, working with many partners to develop and deliver learning material, and build knowledge networks. Reliance on local partners is an important feature of the Bank’s learning and research efforts.
Private sector. The Bank works closely with public
and private partners on programs supporting private sector investment and infrastructure. Resources contributed by partners are approaching $200 million annually. Programs aim to promote an enabling environment for private sector development and to empower poor people through improved delivery of services, for example, in the area of microfinance (see box 6.3). In one example, the Digital Opportunity Task Force—a Group of Eight initiative—aims at bridging the digital divide. Governments, international organizations, the private sector, and nonprofit organizations are working together to improve regulatory and network readiness; connectivity and access; and human capacity. The Cities Alliance offers another example of joint commitment; the Alliance’s target of improving the living conditions of at least 100 million slumdwellers by 2020 was incorporated in the recently adopted U.N. Millennium Declaration. Diverse issues have attracted a coalition of dynamic partners around the Clean Air Initiative. The effort in Latin America has come to be seen as a model in mobiliz-
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PARTNERSHIPWITH CIVILSOCIETY The Bank deepened its commitment to partnerships with civil society organizations (CSOs) in fiscal 2001. In particular, the Bank placed an emphasis on working with a wider spectrum of CSOs, including international development NGOs, foundations, community groups, professional associations, trade
Box 6.3 The Consultative Group to Assist the Poorest (CGAP) CGAPis a partnership of the Bank and 27 other donors and
unions, and faith-based organizations. Whether to protect forests and promote new vaccines through global partnerships or to help deliver basic social services through specific regional, country, or local initiatives, CSOs have become critical allies in designing innovative operations, implementing solutions, and monitoring results. The Bank has been consulting widely with CSOs for many years. In fiscal 2001, through faceto-face consultations in each of the Bank’s six operational Regions as well as via the Internet, the Bank sought the perspectives of CSOs on a forthcoming environment strategy and on revisions to its information disclosure policy. The NGO-Bank Committee agreed in December 2000 to create a new Bank–Civil Society Global Forum, which would bring together a cross-section of CSOs seeking dialogue and partnership with the Bank on urgent thematic issues. The proposed forum would recognize the growing role and expertise of civil society in development and the need to engage a more diverse set of actors.
practitioners to help build a robust microfinance industry serving the world’s poor. CGAPbuilds badly needed institutional capacity by providing technical tools, research, training, and advisor y services to microfinance institutions, donor agencies, and governments. CGAPalso invests in microfinance organizations. In fiscal 2001 CGAPstepped up its poverty focus—in part by researching microfinance innovations that serve the needs of the poorest clients—and considerably expanded the scope of its training hubs in Africa, Asia, and Europe. It also continued to build its Microfinance Gateway, an Internet-based platform now offering interactive online services (such as contracting with auditors) to thousands of stakeholders worldwide.
Box 6.4 Selected World Bank Knowledge Partnerships ■ Information for Development Program provides seed grants for innovative Information Technology applications to development challenges http://www.infodev.org 8 ■ Global Development Learning Network is an interactive network of multiple partners using distance-learning centers to help countries share knowledge and build capacity http://www.gdln.org 8 ■ World Links for Development supports connectivity and helps teachers in developing countries with the use of technology in education http://www.worldbank.org/worldlinks 8 ■ Africa Virtual University is a “university without walls” using new information and communication technologies to offer degree and nondegree interactive learning opportunities http://www.avu.org 8 ■ Development Gateway is an online information portal helping communities, organizations, and individuals work together to reduce poverty http://www.developmentgateway.org 8 ■ Global Knowledge Partnership brings together public, private, and nonprofit resources to promote broad access to knowledge and information http://www.globalknowledge.org 8 ■ Development Forum promotes online discussions, worldwide, about development and poverty reduction http://www.worldbank.org/devforum 8
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Chapter 7
Summaries of Projects Approved for IBRD, IDA, and Trust Funds* in Fiscal 2001
AGRICULTURE The following section reports on projects approved by the Board in fiscal 2001. Projects are listed according to their primary sector classification. Lending totals obtained by adding up loan amounts for projects listed correspond to sector data classified on a loan-by-loan basis rather than a loan component basis (see table 1.1 on page 26 and About the World Bank on pages 127 to 155). § denotes projects included in the Program of Targeted Interventions (PTI). A project is included in the PTI if it has a specific mechanism for targeting poor people, and/or if the proportion of poor people among its beneficiaries is significantly larger than the proportion of poor in the total population. † denotes adjustment operations categorized as poverty-focused. An operation is considered povertyfocused if it eliminates distortions that disadvantage poor people, reorients public expenditures toward them, and/or supports programs that provide safety nets or target specific groups of the poor. ◊ denotes various levels of civil society involvement in Banksupported projects from design to monitoring and evaluation of results.
◊ Albania IDA—$9.9 million. This investment credit will increase rural income by addressing key constraints faced by emerging smallholder farmers in agricultural production, trade, and the functioning of land markets, benefiting all farmers in the country. Total cost: $12.2 million. ◊ Argentina IBRD—$5 million. This learning and innovation loan will identify cost-effective mechanisms to strengthen the government’s fisheries management capacity, focusing on transparency, professionalism, and accountability, while protecting vulnerable fisheries workers. Total cost: $8.5 million. §◊ Brazil IBRD—$202.1 million. This investment loan aimed at expanding access to land and increasing incomes through a community-based approach to land acquisition will benefit about 50,000 poor rural and peri-urban families. Total cost: $436.4 million. §◊ Brazil IBRD—$54.3 million. This investment loan will benefit about 1.1 million rural poor people by helping community associations in Bahia finance, implement, and maintain approximately 3,500 productive infrastructure investments and social subprojects aimed at improving community well-being. Total cost: $75 million. §◊ Brazil IBRD—$37.5 million. This investment loan will benefit about 480,000 rural poor people by helping community associations in Ceará finance, implement, and maintain approximately 2,000 productive infrastructure investments and social subprojects aimed at improving community well-being. Total cost: $50 million. §◊ Brazil IBRD—$30.1 million. This investment loan will benefit about 110,000 rural poor people by helping community associations in Pernambuco finance, implement, and maintain approximately 1,600 productive infrastructure investments and social subprojects aimed at improving community well-being. Total cost: $40 million.
*Projects listed in these summaries for the territories, areas, or countries of (1) East Timor, (2) The Federal Republic of Yugoslavia, (3) Kosovo, and (4) the West Bank and Gaza are financed respectively out of (1) the Trust Fund for East Timor, (2) the Trust Fund for Yugoslavia, Federal Republic of, (3) the Trust Fund for Kosovo, and (4) the Trust Fund for Gaza and the West Bank.
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§◊ Brazil IBRD—$22.5 million. This investment loan will benefit about 360,000 rural poor people by helping community associations in Piauí finance, implement, and maintain approximately 1,200 productive infrastructure investments and social subprojects aimed at improving community well-being. Total cost: $30 million. ◊ Bulgaria IBRD—$50 million. This adaptable pro gram loan will support reform of agricultural sector policies, resulting in improved income and employment generation for rural producers as well as improved agricultural product quality and greater choice for consumers. Total cost: $50 million.
§◊ Honduras IDA—$8 million. This investment credit supports a pilot project providing 1,600 low-income, landless, and rural families with access to credit to purchase arable land, and encouraging sustainable agriculture and increased participation of private financial institutions. Total cost: $17 million.
§◊ Burkina Faso IDA—$66.7 million. This adaptable program credit will help approximately two million poor people living in rural areas develop and plan their own development programs that address their basic needs, generate employment opportunities, and promote good governance. Total cost: $114.9 million.
§◊ India IDA—$100.4 million. This investment credit will benefit approximately 1.8 million of Karnataka state’s poor small landholders and landless people by improving natural resource management through demand-driven community watershed projects. Total cost: $127.6 million.
◊ China IBRD—$74 million. This investment loan will benefit approximately two million farmers by improving water use and quality through water saving facilities and technologies; the project will also enhance agricultural productivity on about 107,000 hectares while promoting ecological sustainability. Total cost: $185.7 million.
§◊ India IDA—$110.1 million. This investment credit will expand economic and social development opportunities, altering the dynamics of power and securing the social and economic needs of women in particular, benefiting approximately 800,000 families in 2,000 villages. Total cost: $134.7 million.
§◊ Ethiopia IDA—$2.6 million. This learning and innovation credit will help the government develop a framework to support conservation, management, and sustainable use of medicinal plants for human and livestock health care that will benefit the rural and urban poor. Total cost: $5.2 million.
§◊ Kazakhstan IBRD—$64.5 million. This investment loan will increase agriculture and fish production in the Syr Darya basin and help secure the existence of the Northern Aral Sea, resulting in improved human and ecological conditions and benefiting 1 million people. Total cost: $85.8 million.
Ethiopia IDA—$44 million. This supplemental credit will improve food security and reduce poverty by supporting policy and institutional reform to help accelerate sustainable agricultural production and productivity and address funding needs for fertilizer imports. Total cost: $46.2 million.
§◊ Lao People’s Democratic Republic IDA—$16.7 million. This investment credit will use a community-driven and decentralization approach to increase agricultural production, rehabilitation, and construction of rural infrastructure, thereby benefiting more than 50,000 rural poor people. Total cost: $18.2 million.
◊ Georgia IDA—$27 million. This adaptable program credit will revitalize the irrigation and drainage infrastructures on about 255,000 hectares, resulting in increased agricultural production and income and secure food supplies for approximately 400,000 people. Total cost: $32.8 million.
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§◊ Ghana IDA—$67 million. This adaptable program credit will support good governance and decentralization, increase growth in agricultural productivity, and generate employment opportunities, all in an environmentally sustainable manner. Rural poor people—particularly women farmers, traders, and food processors—will benefit. Total cost: $123.7 million.
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§◊ Madagascar IDA—$89 million. This investment credit will help the government increase incomes, reduce poverty, and improve access to basic social services in rural areas while preserving the natural resource base, thereby benefiting approximately 180,000 farming families. Total cost: $106.1 million.
§◊ Morocco IBRD—$32.6 million. This adaptable program loan will support demand-driven, integrated investments in small and medium irrigation, improvements in community infrastructure, and institutional strengthening, resulting in increased rural incomes and benefiting 58,800 people. Total cost: $42.4 million.
§◊ Vietnam IDA—$102.8 million. This investment credit will help local authorities and communes provide or rehabilitate public infrastructure in about 600 of the poorest communes, comprising 1.4 million people, and will create opportunities for paid off-farm employment. Total cost: $123.4 million.
§◊ Pakistan IDA—$21.3 million. This investment credit will improve the water delivery system through new on-farm water management practices, and increase agricultural production and farmer income through equitable distribution of irrigation water. The project’s beneficiaries number 2.2 million people. Total cost: $32.1 million.
§◊ Yemen, Republic of IDA—$21.3 million. This adaptable program credit will enhance efficient water use in the main spate irrigation systems, contributing to increased and sustainable agricultural productivity and benefiting poor farmers over an area of 90,000 hectares. Total cost: $25.6 million.
◊ Romania IBRD—$80 million. This adaptable pro gram loan will establish a self-sustainable network of financial services to serve rural enterprises and populations and mitigate the negative impact of policy reforms, resulting in growth and reduced poverty in rural areas. Total cost: $147.6 million. ◊ Rwanda IDA—$48 million. This adaptable program credit will help rural communities, where 92 percent of Rwanda’s poor live, to benefit from the government’s program to revitalize the rural economy, increase rural incomes, reduce poverty, and reinforce national stability. Total cost: $53 million. Tajikistan IDA—$3.1 million. This supplemental credit will support land privatization, irrigation, and drainage; provide grants to family farms; and create a pilot rural savings and credit association to meet the credit needs of its members. Total cost: $3.6 million. ◊ Tunisia IBRD—$21.3 million. This investment loan will develop, on a pilot basis, organizational structures that represent the needs and interests of small and medium producers and improve institutional capacity to deliver quality agricultural services. Total cost: $42.5 million. ◊ Uganda IDA—$45 million. This investment credit will help 90 percent of the farming population adopt improved technology and management practices in their farming enterprises, resulting in enhanced productive efficiency and economic welfare, and overall poverty reduction. Total cost: $107.9 million.
ECONOMIC POLICY † Benin IDA—$10 million. This credit will improve the impact of government expenditures on poverty reduction and economic and social development by developing transparent budget and administrative systems to manage public expenditures. Total cost: $10 million. ◊ Ethiopia IDA—$150 million. This credit will help the government restore key economic and social services and strengthen institutional capacity, resulting in employment opportunities for the poor, particularly in the agriculture and export sectors. Total cost: $150 million. Ghana IDA—$49 million. This supplemental credit will support reforms in the public sector (including in public expenditure management and privatization) and the energy and cocoa sectors. It will keep the government’s macroeconomic program on track and help prevent further economic decline. Total cost: $49 million. † Kyrgyz Republic IDA—$35 million. This credit will underpin fiscal adjustment and improve the conditions for private sector growth. It will also provide an impetus for energy sector reform while securing social protection programs and reallocating existing benefits, resulting in poverty reduction. Total cost: $35 million. Lithuania IBRD—$98.5 million. This loan will help reduce poverty by supporting rapid and sustainable economic growth, establishing macrofi nancial stability, and facilitating integration into the European Union. Total cost: $100.4 million.
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Madagascar IDA—$30.4 million. This supplemental credit will reduce the negative impact of oil price increases on the poor by reducing taxes on petroleum and products, thus preventing trade losses that jeopardize the sustainability of ongoing reform programs. Total cost: $30.4 million.
Rwanda IDA—$15.3 million. This supplemental credit will help mitigate the impact of oil price increases, which have severely hurt the poor, as well as terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $15.3 million.
◊ Madagascar IDA—$20.1 million. This supplemental credit will help maintain macroeconomic stability while rehabilitating and restoring productive efficiency in sectors that have been affected by adverse weather conditions especially damaging for poor communities. Total cost: $20.1 million.
Senegal IDA—$100 million. This credit will assist the government in its regional integration objectives through macroeconomic stabilization and the promotion of private sector development, resulting in a more competitive Senegalese economy, which will help to reduce poverty. Total cost: $100 million.
† Malawi IDA—$55.1 million. This credit will support policy reforms aimed at deepening structural reforms launched in 1995 to improve public sector management, private sector growth, and the social safety net, thereby spurring economic growth and reducing poverty. Total cost: $55.1 million.
Sierra Leone IDA—$10 million. This supplemental credit will help provide balance of payments and budgetary support to finance the government’s pro gram for social, economic, and protective security. It will also help revive the economy. Total cost: $10 million.
Malawi IDA—$3 million. This credit will help the government implement policy reforms, especially in the area of financial management and public procurement, resulting in an improved budget process and public expenditure allocation. Total cost: $3 million. Mali IDA—$25.4 million. This supplemental credit will help mitigate the impact of oil price increases, which have severely hurt the poor, as well as other terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $25.4 million. † Pakistan IDA—$350 million. This structural adjustment credit will help the government reduce poverty and maintain the macroeconomic stability needed to implement already begun reforms. The focus will be on improving governance, the delivery of social services, and economic growth. Total cost: $350 million. Regional IDA—$5 million. This investment credit will support the set-up of the Africa Trade Insurance Agency, which will provide insurance and other financial instruments and services to support trade and investments in Africa. Total cost: $5 million.
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† Tajikistan IDA—$50 million. This credit will improve investment and economic growth and support earlier endorsed reforms by providing foreign exchange to maintain imports, boost international reserves, and provide noninflationary financing of the budget while improving governance in general. Total cost: $50 million. Uganda IDA—$25.4 million. This supplemental credit will help mitigate the impact of oil price increases, which have severely hurt the poor, as well as other terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $25.4 million. † Vietnam IDA—$250 million. This credit supports comprehensive structural reforms focused on higher growth, competition, and faster poverty reduction. Support for enhanced transparency and efficient investment will also result in improved management of public expenditure, including pro-poor social spending. Total cost: $250 million. Zambia IDA—$30.4 million. This supplemental credit will help mitigate the impact of oil price increases, which have severely hurt the poor, as well as other terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $30.4 million.
Zambia IDA—$2.1 million. This supplemental credit will help the government’s reform program reduce poverty by restoring macroeconomic stability, promoting diversified growth, improving governance, and improving the delivery of vital social services. Total cost: $2.1 million.
◊ Dominican Republic IBRD—$3.4 million. This learning and innovation loan will test the effectiveness and sustainability of a Distance Learning Center, part of a global knowledge-sharing network; expand access to training of public and private sector decisionmakers; and improve dialogue among them. Total cost: $4.5 million.
EDUCATION §◊ Argentina IBRD—$57 million. This investment loan will improve equity, quality, and access in secondary schools in the Buenos Aires province, benefiting 60,000 students, 3,200 teachers, and 400 school administrators in socioeconomically disadvan taged areas. Total cost: $173.8 million. ◊ Bangladesh IDA—$53.3 million. This investment credit will improve post-literacy education by establishing a continuing education program benefiting 1.6 million poor people, half of whom are women, enabling them to better support their families and communities. Total cost: $71.6 million. §◊ Brazil IBRD—$69.6 million. Approximately 1.8 million young people will, through this adaptable program loan, benefit from the government’s school improvement program aimed at enhancing performance by expanding access and providing learning materials and effective management. Total cost: $116 million. §◊ Brazil IBRD—$90 million. Over 1 million school children will, through this investment loan, benefit from the state of Ceará’s efforts to improve both academic achievement and the learning environment, and to expand access by drop-outs and excluded youth. Total cost: $150 million. ◊ Bulgaria IBRD—$14.4 million. This adaptable pro gram loan will improve teaching quality and learning opportunities, benefiting primary and secondary school students; by committing more resources, it will also improve the quality of and access to higher education. Total cost: $18.4 million. ◊ Djibouti IDA—$10 million. This adaptable program credit will increase access to schooling by improving the basic education system, the quality of education, and the management capacity of the Ministry of Education, thereby benefiting poor children and communities. Total cost: $13.2 million.
Ethiopia IDA—$4.9 million. This learning and innovation credit will test comparative learning outcomes and the sustainability of different distance learning approaches; build institutional capacity; and provide training and Internet connection to civil servants, the private sector, and nongovernmental organization employees in Addis Ababa, increasing their productivity. Total cost: $7.1 million. ◊ Georgia IDA—$25.9 million. This adaptable pro gram credit will help students learn more effectively by developing a national education curriculum, establishing a system to assess results, and providing training for educators and basic learning materials to classrooms. Total cost: $31.4 million. §◊ Guatemala IBRD—$62.2 million. Over 100,000 children, living mostly in rural indigenous communities, will benefit from this loan, which will support bilingual primary education by training 3,500 teachers and providing textbooks and classroom libraries. Total cost: $82.5 million. §◊ Honduras IDA—$41.5 million. This investment credit will benefit 300,000 poor children in marginalized rural communities by improving preschool and primary education, through teacher training, technical assistance to community education councils, improved management, and monitoring. Total cost: $47.8 million. ◊ Honduras IDA—$4 million. This investment credit will raise awareness of Honduran scientific, environmental, and cultural knowledge, including sustainable development and ethnic diversity, by developing an interactive learning center at the country’s Copán archaeological site. Total cost: $4 million. §◊ India IDA—$74.4 million. About 1 million children living in nine districts in India’s Rajasthan state will, through this investment credit, benefit from increased availability and quality of primary education. Total cost: $87.5 million.
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◊ India IDA—$64.9 million. Disadvantaged groups in industrially and economically underdeveloped remote regions, including tribal communities and women, will, through this investment credit, benefit from improved quality and efficiency of polytechnic education and expanded facilities. Total cost: $80.1 million.
◊ Yemen, Republic of IDA—$56 million. This investment credit will improve access to quality education through increased resources and enhance management capacity in education and committed communities, benefiting approximately 170,000 rural children, 60 percent of them girls. Total cost: $62.6 million.
◊ Indonesia IDA—$4.1 million. This learning and innovation credit will develop approaches to promote reading by students and communities, and develop a strategy for community and primary school library support involving local communities, nongovernmental organizations, and local governments. Total cost: $4.5 million.
◊ Zambia IDA—$25 million. The sector investment and maintenance credit will strengthen the government’s technical, vocational, and entrepreneurship training system, and improve the skills of workers to serve both the formal and informal sectors of the economy. Total cost: $94.6 million.
§◊ Mali IDA—$45 million. This adaptable program credit will support the government’s strategy of increasing primary school enrollment rates from about 56 percent in 2000 to 95 percent in 2010, while improving learning at all levels. Total cost: $541.2 million. §◊ Panama IBRD—$35 million. This investment loan supports improvements in basic education in poor communities, including rehabilitation of schools, expansion of early childhood education programs, and strengthening of management, benefiting about 60 percent of Panama’s children. Total cost: $59 million. ◊ Russian Federation IBRD—$50 million. This investment loan will improve efficiency and access to quality education throughout the country. The project will initiate reforms in three regions with the goal of replicating success at a later stage. Total cost: $71.1 million. ◊ Vanuatu IDA—$3.5 million. This learning and innovation credit will test whether Vanuatu can effectively adopt innovative approaches intended to help the country move toward education for all, defined as basic education of good quality through the age of eight. Total cost: $3.8 million. ◊ West Bank and Gaza Trust Fund—$7 million. The project aims to reinforce and develop a longterm education strategy. It will strengthen the government’s capacity to manage the education system more effectively through specific investments in education. Total cost: $7.6 million.
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ELECTRIC POWER AND OTHER ENERGY ◊ Belarus IBRD—$22.6 million. This investment loan will finance the rehabilitation of the heating system, thermal insulation, and lighting in over 450 buildings, targeting and benefiting schools, hospitals, orphanages, and community homes for the elderly and the disabled. Total cost: $40.4 million. ◊ Bosnia and Herzegovina IDA—$35 million. This investment credit will assist in reconstruction of transmission systems and damaged substations to restore pre-war infrastructure, including investments in power distribution to provide electricity, benefiting many poor rural areas and returning refugees. Total cost: $231.1 million. Georgia IDA—$27.4 million. This investment credit will improve the reliability and efficiency of the electric supply, and improve financial and corporate management of the wholesale electric market, benefiting electricity consumers including residen tial, industrial, and commercial sectors. Total cost: $56.6 million. ◊ India IBRD—$450 million. Part of an ongoing reform program, this project will continue to improve coordination in power system operations and promote inter-regional and interstate power trading. Total cost: $1.3 billion. ◊ India IBRD—$180 million. This investment loan will benefit about 60 percent of the households in Rajasthan by improving efficiency of the state’s power sector through support for the privatization of the distribution firms. Total cost: $266.8 million.
◊ Kosovo Trust Fund—$2.5 million. This grant supports the provision of adequate energy services (electricity and district heating supply) during winter, and efforts toward cost recovery and institution building. Medium-term objectives include reconstruction and sustainable development of the energy sector. Total cost: $2.5 million. Latvia IBRD—$36.2 million. This investment loan will have economic and environmental benefits for consumers, including many low-income users and pensioners. It will promote sound policies and improve the reliability of service delivery, energy conservation, and the heating system. Total cost: $140 million. Mongolia IDA—$30 million. This investment credit will help increase revenues of electricity distribution companies in Mongolia, through targeted investments to rehabilitate current infrastructure and technical assistance to help commercialize management practices. Total cost: $36.2 million. ◊ Poland IBRD—$15 million. This investment loan will help improve the energy efficiency of heating systems in the Krakow region by continuing the modernization program for the district heating system, helping consumers decrease their heat energy consumption. Total cost: $78 million. ◊ Ukraine IBRD—$28.2 million. This investment loan will increase the efficiency of the heating system in Sevastopol by replacing 40 percent of the heating load with decentralized, gas-fired miniboilers, resulting in lower cost and benefiting the overall population. Total cost: $35.7 million. ENVIRONMENT ◊ Bulgaria IBRD—$30 million. This investment loan aims to improve the coverage, completeness, accuracy, and responsiveness of the cadastre and real property registration systems, contributing to secure tenure and real property, and an efficient real property market. Total cost: $37.1 million.
Latvia IBRD—$2.2 million. This investment loan will address environmental and health concerns in the Liepaja Region through improved solid waste management and the development of a waste treatment facility, utilizing modern management practices. Total cost: $17 million. Mexico IBRD—$404 million. This emergency recovery loan supports wide-ranging initiatives to reduce vulnerability to natural disasters and to support rapid recovery when disasters do occur, thereby reducing the human cost of natural disasters to the poorest communities. Total cost: $658.4 million. ◊ Panama IBRD—$47.9 million. This investment loan improves land administration services covering 2.5 million hectares, enabling small-scale farmers, including women and indigenous people, to obtain land, resulting in greater participation in decisionmaking processes and equitable property rights. Total cost: $72.4 million. ◊ Philippines IBRD—$4.8 million. This learning and innovation loan supports testing of alternative approaches to land management and administration and lays a foundation for implementing a long-term land administration and management program, benefiting poverty reduction and economic growth. Total cost: $10.4 million. §◊ Sri Lanka IDA—$5 million. Landholders will, through this learning and innovation credit, benefit from increased land resource productivity through a system of land administration that is fair, efficient, and sustainable. Total cost: $6.8 million. ◊ Uganda IDA—$22 million. This investment credit seeks to build the capacity of players at the national, district, and community levels, in the private and public sectors, to work together to promote sound environment and natural resources management. Total cost: $24.1 million. ◊ West Bank and Gaza Trust Fund—$9.5 million. Approximately 200,000 people in Jenin District will, through this operation, have access to better solid waste management services. These include: sanitary landfill construction, closures of uncontrolled dumpsites, improved solid waste management, and capacity building. Total cost: $14 million.
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FINANCE Azerbaijan IDA—$5.4 million. This technical assistance credit will assist the government in implementing and developing its financial sector strategy through technical assistance focused on bank restructuring and divestiture by enhancing banking infrastructure and supervision. Total cost: $6.3 million. §◊ Bangladesh IDA—$151 million. About 1.2 million microentrepreneurs, especially rural poor women, will benefit from increased access to microlending through this financial intermediary credit. The project will also strengthen institutions providing loans. Total cost: $181 million. §◊ Bosnia and Herzegovina IDA—$20 million. This investment credit will help raise incomes, develop businesses, and create jobs by providing financial services to low-income people. It will also help microfinance institutions increase outreach to lowincome clients. Total cost: $27.1 million. Brazil IBRD—$404 million. This adjustment loan will support Brazil’s financial sector reform program, promote economic growth, contribute to poverty reduction, and avoid reversal of gains by helping prevent financial crises. Total cost: $404 million. Burundi IDA—$7.5 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $15 million. China IBRD—$8 million. This supplemental loan will support the completion of the China National Payments System pilot, a component of the Financial Sector Technical Assistance Project currently under implementation. Total cost: $9.2 million. † Eritrea IDA—$90 million. This credit will help the government mitigate the consequences of the ongoing humanitarian crisis caused by war and drought by providing assistance to poor and displaced people, rehabilitating key infrastructure, and jump-starting the economy. Total cost: $90 million.
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Jamaica IBRD—$75 million. This adjustment loan will support Jamaica’s bank restructuring and debt management program, strengthening the country’s financial sector and benefiting consumers of financial services. Total cost: $150 million. Kenya IDA—$25 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $75 million. ◊ Kosovo Trust Fund—$5 million. This grant will provide financing for small and medium enterprises (SMEs) on market-based terms in an effort to jumpstart production and economic activity in the private sector and provide targeted technical assistance to banks and SMEs. Total cost: $10 million. Macedonia, former Yugoslav Republic of IBRD—$30.3 million; IDA—$20 million. This adjustment loan/credit will help the government meet its commitment to improve living standards, by supporting financial and enterprise sector reform programs and facilitating private sector growth and job creation. Total cost: $65.3 million. Malawi IDA—$15 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa by establishing a credible insurance mechanism against losses caused by political risks. Total cost: $45 million. Mexico IBRD—$505.1 million. This adjustment loan will help the banking sector withstand external shocks, improve lending to the private sector, and open capital market access to micro, small, ruralbased, and medium-size enterprises. Total cost: $505.1 million. Rwanda IDA—$7.5 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $15 million. ◊ Sri Lanka IDA—$30.3 million. This investment credit will increase the effectiveness of the Central Bank of Sri Lanka by providing resources and technical assistance to bolster ongoing improvements and modernization within the central bank. Total cost: $42 million.
Tanzania IDA—$15 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $45 million. Turkey IBRD—$777.8 million. This adjustment loan will help reform Turkey’s financial sector through support for the creation of an independent Banking Regulation and Supervision Agency that will bring regulations up to international practice standards, as well as restructuring and privatization of state-owned banks. Total cost: $777.8 million. Uganda IDA—$20 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $60 million. Western Africa IDA—$9.4 million. This technical assistance credit will help establish an appropriate set of regional payment mechanisms to satisfy the evolving needs of all market sectors in the West African Economic and Monetary Union. Total cost: $19.3 million. Yugoslavia, Federal Republic of Trust Fund—$6 million. This project will support the bank restructuring strategy adopted by the new government in May 2001. The project is part of a broader effort by a group of key donors involved in preparing the banking strategy. Total cost: $6.5 million. Zambia IDA—$15 million. This investment credit will complement the regional integration activities of the Common Market for Southern and Eastern Africa and set up a credible insurance mechanism against losses caused by political risks. Total cost: $45 million. HEALTH, NUTRITION, AND POPULATION §◊ Azerbaijan IDA—$5 million. This learning and innovation credit will test ways to strengthen and reform district primary health-care services, with maximum benefits accruing to poorer people. Total cost: $5.5 million.
§◊ Bangladesh IDA—$40 million. Approximately 750,000 people will, through this investment credit, benefit from measures to prevent the spread of HIV/AIDS, through education campaigns that target high-risk groups, and to improve government capacity to monitor the spread of HIV/AIDS. Total cost: $52.6 million. §◊ Barbados IBRD—$15.1 million. This adaptable program loan will improve laboratory testing, pharmaceutical services, and training of community health-care workers and volunteers. People with HIV/AIDS and at-risk groups will benefit from enhanced clinical treatment, patient monitoring, and HIV/AIDS surveillance. Total cost: $23.6 million. §◊ Bolivia IDA—$35 million. About two million people will benefit from this adaptable program credit to reduce infant mortality from 67 to 48 per thousand births by strengthening basic health insurance, providing vaccines, and offering prenatal and neonatal care. Total cost: $70 million. ◊ Cameroon IDA—$50 million. This adaptable program credit will assist people affected by HIV/AIDS, strengthen the capacity of local communities to address the epidemic, and support and design the implementation of sector HIV/AIDS strategies. Total cost: $60 million. §◊ Dominican Republic IBRD—$25 million. This adaptable program loan will improve laboratory testing, pharmaceutical services, and training of community health-care workers and volunteers. People with HIV/AIDS and at-risk groups will benefit from enhanced clinical treatment, patient monitoring, and HIV/AIDS surveillance. Total cost: $30 million. ◊ East Timor Trust Fund—$12.6 million. This grant supports the rehabilition and development of a financially sustainable health system, designed to respond to the immediate needs of the population. It will also prepare the health system to meet future needs. Total cost: $21.4 million. §◊ Eritrea IDA—$40 million. This adaptable program credit will assist in implementing programs to prevent HIV/AIDS, malaria, sexually transmitted diseases, and tuberculosis, focusing on people of productive age and providing economic, social, institutional, and environmental benefits to society. Total cost: $50 million.
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§ Eritrea IDA—$40 million. This investment credit will provide nearly a million children with health care, nutrition, social protection, and education. Economic and social benefits will accrue at national, community, household, and individual levels. Total cost: $49 million.
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§◊ Kenya IDA—$50 million. This investment credit will promote HIV/AIDS awareness and prevention, focusing on rural and poor women, and will also address Kenya’s declining health care system by providing resources to decentralize health-care services and deliver quality care. Total cost: $117.3 million.
◊ Ethiopia IDA—$59.7 million. The Ethiopian popu lation will, through this adaptable program credit, benefit from government prevention and awareness programs designed to comprehensively address the HIV/AIDS epidemic, thereby mitigating the social and economic impact of the disease. Total cost: $63.4 million.
◊ Kyrgyz Republic IDA—$15 million. This invest ment credit will improve access, quality of health care, and training of staff, and expand primary health care centers located in poor rural areas. Total cost: $19.5 million.
◊ Gambia, The IDA—$15 million. This investment credit will help develop multisectoral programs that stem the rapid growth of HIV/AIDS among vulnerable groups and the population at large, thereby mitigating the social and economic impact of the disease. Total cost: $16.2 million.
§◊ Mexico IBRD—$350 million. More than 13 million Mexicans, including 7.5 million indigenous people, will benefit from this loan that extends health-care services to people living in rural and urban areas where these services are currently unavailable or inadequate. Total cost: $581.2 million.
◊ Ghana IDA—$25 million. This investment credit will reduce the spread of HIV/AIDS through awareness and prevention, benefiting the population at large, especially women and their families, by financing interventions going beyond the Ministry of Health’s mandate. Total cost: $27.8 million.
§◊ Moldova IDA—$10 million. This investment credit will improve health care and increase the quality and efficiency of the health sector, resulting in better access to services for the poor and improved management of tuberculosis and HIV/AIDS. Total cost: $20 million.
§◊ India IDA—$30 million. Approximately 500,000 people will, through this investment credit, benefit from increased government capacity to improve national leprosy programs and to enhance diagnosis and treatment at the state level. Total cost: $42.2 million.
◊ Rwanda IDA—$7 million. About 326,000 refugees returning in the aftermath of the 1994 genocide will benefit from this supplemental credit aiming to strengthen and expand the health-care system. This project will also enhance national reintegration and reconciliation. Total cost: $7.4 million.
◊ Indonesia IBRD—$63.2 million; IDA—$40 million. This loan/credit will promote effective health sector decentralization in three provinces and help the Ministry of Health and Social Welfare carry out its roles in a decentralized system, benefiting approximately 10 million poor people. Total cost: $895.8 million.
◊ Samoa IDA—$5 million. Health-care stakeholders and disadvantaged groups will benefit from this investment credit to strengthen the capacity to implement health-care policies, legislation, and regulation, and to improve health-care facilities covered by the country’s health-care sector reform strategy. Total cost: $6.1 million.
◊ Kenya IDA—$50 million. This adjustable program credit will intensify the multisectoral response to HIV/AIDS, and accelerate the process of achieving the targets elaborated in the National HIV/AIDS Strategic Plan, thereby mitigating the social and economic impact of the disease. Total cost: $52.4 million.
§◊ Uganda IDA—$47.5 million. This investment credit will support HIV/AIDS prevention and care programs by extending activities to all districts, engaging other line ministries, empowering communities to fight HIV/AIDS, and enhancing civil society participation. Total cost: $50 million.
The World Bank Annual Report 2001
§◊ Venezuela, República Bolivariana de IBRD— $30.3 million. This sector investment loan will benefit 2.4 million poor people by providing expanded health-care coverage, integrated systems of ambulatory care services, better institutional organization and management, and activities to prevent and control HIV/AIDS. Total cost: $60.3 million. MINING ◊ Algeria IBRD—$18 million. This technical assis tance loan will help the government implement its market-oriented reform program, increasing private sector participation and improving efficiency through legal, regulatory, and institutional reform-oriented assistance. Total cost: $22 million. Mozambique IDA—$18 million. This technical assistance credit will help establish a framework conducive to private investment and provide a better understanding of how different sectors and donors can improve the living standards of affected communities. Total cost: $33 million. MULTISECTOR Cambodia IDA—$35 million. Approximately five million people will, through this credit, benefit directly or indirectly from the restoration of economic and social services through the rehabilitation of economic and social infrastructure to pre-flood levels. Total cost: $40.4 million. ◊ Grenada IBRD—$5.1 million; IDA—$5 million. This combined loan and credit will help the government strengthen its responses to and preparedness for natural disasters, reducing the likelihood of loss of life and assets, and making the economy less vulnerable. Total cost: $11.8 million. ◊ Macedonia, former Yugoslav Republic of IDA— $5 million. This learning and innovation credit will develop projects to support site management and capacity-building activities in areas of cultural importance; promote handicrafts and community-based tourism; and improve and conserve sites. Total cost: $6.1 million. West Bank and Gaza Trust Fund—$11.6 million. Support for the West Bank and Gaza’s rapid response program will alleviate hardships to poor families resulting from the economic crisis through temporary employment for unskilled laborers as well as increased demand for materials and works for local suppliers. Total cost: $25 million.
OILAND GAS Georgia IDA—$9.6 million. This technical assistance credit will maximize economic benefit and minimize social and environmental costs by enhancing Georgia’s capacity to negotiate and implement oil and gas transit agreements. Total cost: $12.3 million. Kenya IDA—$72 million. This credit will help the government restore power supplies to near normal levels, critical to reversing the decline in the economy that has resulted in substantial job and income losses. Total cost: $72 million. PRIVATE SECTOR DEVELOPMENT ◊ Bosnia and Herzegovina IDA—$19.8 million. This technical assistance credit will accelerate privatization, prepare the legislative and regulatory frameworks required for divesting monopoly companies, improve delivery of public services, and assist in setting up a transparent and regulated marketplace. Total cost: $23.3 million. ◊ Ethiopia IDA—$230 million. This credit, which supports an important HIV/AIDS prevention component, will help approximately 620,000 waraffected people, many infected by HIV/AIDS, to rebuild their lives and resume productive economic activities; reconstruct infrastructure; and support economic stability. Total cost: $230 million. Guatemala IBRD—$20.3 million. This investment loan supports poverty reduction through reforms to help small businesses increase incomes; legislative changes to promote competition and foreign investment; and employee training to strengthen product and service quality. Total cost: $33.3 million. ◊ Lesotho IDA—$28.6 million. This investment credit will help the government improve business infrastructure, in particular electricity and telecommunications services, including provisions for Internet connectivity in the future. Total cost: $39.5 million. ◊ Nicaragua IDA—$5 million. This learning and innovation credit tests private-public partnerships for developing consensus and reforming business practice, while introducing information technology– based business development services. Total cost: $5.9 million.
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◊ Nigeria IDA—$114.3 million. This investment credit will encourage an enabling environment for private sector participation and competition in sectors such as telecommunications and electric power. The improved and more affordable infrastructure will promote poverty reduction. Total cost: $225 million. Rwanda IDA—$40.8 million. This investment credit will assist the government in establishing an enabling environment for growth and development of the private sector that will help reduce poverty in Rwanda. Total cost: $41.2 million. ◊ Uganda IDA—$48.5 million. This investment credit will support the government’s public enterprise sector reform and privatization program aimed at restructuring and privatizing state-owned enterprises to increase productivity and the quality of services provided to the population. Total cost: $95.3 million. Yugoslavia, Federal Republic of Trust Fund—$6 million. This grant will provide urgent assistance to the Republic of Serbia in an effort to jump-start private sector production and economic activity and unleash the potential of the private sector. Total cost: $7 million. PUBLIC SECTOR MANAGEMENT Algeria IBRD—$23.7 million. This investment loan will enhance the work of budgetary institutions that favor growth, by modernizing and expanding the capacity of the Ministry of Finance to discharge its core expenditure and economic policy advice functions. Total cost: $29.8 million. †◊ Argentina IBRD—$303 million. This adjustment loan supports reforms in public finance and administration, as well as improvements in health, education, and social protection, benefiting millions of people living in the province of Córdoba. Total cost: $303 million. †◊ Argentina IBRD—$70.7 million. This adjustment loan supports reforms in public finance and administration, health, education, and private sector development, benefiting millions in the province of Catamarca, the region of Argentina with the worst social and economic indicators. Total cost: $70.7 million.
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◊ Armenia IDA—$11.4 million. This investment credit will help develop an independent judiciary, strengthening governance and rule of law that are essential for investment; strengthen the institutional capacity of the judiciary; and train judges and court personnel. Total cost: $12.2 million. † Armenia IDA—$50 million. This credit will support a government program aimed at facilitating private sector development and job creation, and deepening and consolidating reforms in social protection, education, and health. Total cost: $50 million. ◊ Bangladesh IDA—$30.6 million. This investment credit will help Bangladesh make its civil justice system more efficient, effective, and accountable, primarily benefiting poor women. Total cost: $43.7 million. †◊ Bolivia IDA—$60 million. This adjustment credit will benefit Bolivia’s poor by improving public services through the rescheduling of municipalities’ debts and strengthening the municipal funding system. Total cost: $80 million. Brazil IBRD—$8.9 million. This technical assistance loan will assist the government of Brazil in establishing and modernizing fiscal and financial management tools to implement Brazil’s fiscal reform program, essential to poverty reduction and growth. Total cost: $17.7 million. Brazil IBRD—$757.6 million. This programmatic adjustment loan supports the government’s program of fiscal reforms covering fiscal sustainability, expenditure management, and debt management, which will improve growth and public service delivery and reduce poverty. Total cost: $757.6 million. ◊ Colombia IBRD—$35.5 million. Taxpayers and the poor will benefit from this investment loan to strengthen revenue collection and expenditure management in Colombia’s national government, and to increase transparency and accountability. Total cost: $59.2 million. Croatia IBRD—$5 million. This learning and innovation loan will strengthen the administration and case management system of the bankruptcy and commercial courts, and promote investment by ensuring a transparent legal process. Total cost: $7 million.
East Timor Trust Fund—$0.5 million. This grant will strengthen East Timor’s key economic and financial institutions by training relevant East Timorese staff to compile, analyze, and maintain macroeconomic data. Total cost: $0.5 million.
Kosovo Trust Fund—$3 million. This grant will create and strengthen the institutions that support the commercial legal framework in Kosovo. The enterprise sector and business community at large will benefit through an improved business-enabling environment. Total cost: $3 million.
◊ Honduras IDA—$19 million. This technical assistance credit will improve public sector management by integrating transparent and accountable public finance and human resources systems, and reforming postal services, ports, and telecommunications, resulting in improved services and benefiting the government and public. Total cost: $23 million.
Mauritania IDA—$18.3 million. This supplemental credit will help mitigate the impact of oil price increases, which have severely hurt the poor, as well as other terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $18.3 million.
†◊ India IBRD—$75 million; IDA—$75 million. The state of Karnataka will, with support from this loan/credit, strengthen fiscal stability and government effectiveness through fiscal and administrative reforms, and improve poverty and social monitoring. Total cost: $150 million. Jordan IBRD—$120 million. This programmatic loan provides fast-disbursing external financing to meet anticipated fiscal gaps, while supporting fundamental structural changes in the core public sector to strengthen institutional capacity and the quality of public services. Total cost: $120 million. † Kenya IDA—$150 million. This credit will promote broad-based growth and poverty reduction, and help improve living conditions, especially in rural areas, by improving public delivery of social services and encouraging income-generating activities. Total cost: $150 million. Kenya IDA—$3.2 million. This supplemental credit will help improve living conditions for Kenyans by promoting broad-based growth and poverty reduction. Total cost: $3.2 million. Kosovo Trust Fund—$5 million. This grant will support Kosovo’s economic reform program by providing financial resources to the United Nations Interim Administration in Kosovo. The grant will ensure sound budgetary policies and promote efficiency in economic production. Total cost: $5 million. ◊ Kosovo Trust Fund—$5 million. This grant will support private sector development by providing financial resources to the United Nations Interim Administration in Kosovo. The grant will contribute to the establishment of a commercial legal framework. Total cost: $5 million.
† Mexico IBRD—$505.1 million. This adjustment loan benefits 13 million people in Mexico’s largest state by reducing the state government’s borrowing costs and protecting health and education services for the poor, as the state shifts to market-based borrowing. Total cost: $505.1 million. ◊ Nicaragua IDA—$28.7 million. This credit provides financing and training to strengthen financial and environmental management in rural municipalities, benefiting thousands of residents, especially improving access to government services to poor communities. Total cost: $40.7 million. Niger IDA—$35 million. The credit will support the government’s medium-term development program aimed at stimulating growth and reducing poverty by maintaining financial stabilization and improving fiscal management. Total cost: $35 million. Niger IDA—$12.2 million. This supplemental credit will help mitigate the impact of unexpected oil price increases, which have severely hurt the poor, as well as other terms-of-trade losses, which are jeopardizing the sustainability of ongoing reform programs. Total cost: $12.2 million. † São Tomé and Principe IDA—$7.5 million. This credit will, while safeguarding public resources toward education, health, and poverty reduction programs, help the government consolidate reforms to attain macroeconomic stability and market competitiveness. Total cost: $7.5 million. São Tomé and Principe IDA—$2.5 million. This credit will provide technical support, training, and equipment to implement policy measures currently proposed under the government’s reform program to assist economic growth. Total cost: $2.5 million.
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Sierra Leone IDA—$3.5 million. This credit will strengthen government structures to support economic recovery and rehabilitation through processes for economic policy planning, formulation, and implementation. It is also supportive of HIV/AIDS awareness and prevention activities. Total cost: $3.5 million. Sri Lanka IDA—$2 million. Public and private sector decisionmakers will, through this learning and innovation credit, benefit from video-conference training programs that provide them with access to global development expertise. Total cost: $3 million. †◊ Uganda IDA— $150 million. This credit will support the implementation of the government’s poverty reduction strategy, which aims to secure equitable use of public resources and improve governance as well as access to education, healthcare, water, and sanitation services. Total cost: $150 million.
§◊ Bosnia and Herzegovina IDA—$15 million. This investment credit will improve the quality of basic infrastructure and services in poor communities and strengthen capacity to manage such services. The project will be implemented in partnership with municipalities, citizens associations, and nongovern mental organizations. Total cost: $17.6 million. †◊ Bosnia and Herzegovina IDA—$20 million. This credit will support the development of institutional and budgetary mechanisms for development and prioritization of social policy, and help improve employment opportunities and social safety nets for the poor. Total cost: $20 million. ◊ Bosnia and Herzegovina IDA—$3.5 million. This investment credit will help to provide a sustainable system of social protection that targets spending more effectively on the poorest, and to create an improved labor relations framework in order to stimulate employment growth. Total cost: $3.9 million.
SOCIALPROTECTION §◊ Albania IDA—$10 million. This investment credit will support efforts to increase access to quality social services by assisting the government in developing, monitoring, and evaluating more effective social policies. Total cost: $15 million. §◊ Argentina IBRD—$5 million. This learning and innovation loan will establish the basis for community-driven development and management of natural resources on indigenous lands. Total cost: $5.9 million. ◊ Belize IBRD—$1.4 million. Poor people in disadvantaged communities are, through this supplemental loan, gaining greater access to basic social and economic infrastructure and services, including water and sanitation, health, education, and training. Total cost: $1.6 million. §◊ Bolivia IDA—$5 million. This learning and innovation credit will support culturally based, community, and small production initiatives that enable indigenous groups to increase their incomes and reduce poverty in tandem with their own worldview and cultural perspectives. Total cost: $6.6 million.
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§◊ Bulgaria IBRD—$8 million. This investment loan will improve child welfare and protect children’s rights through promotion of community-based child welfare approaches such as de-institutionalization, abandonment prevention, and services for street children. Total cost: $19.6 million. ◊ Cambodia IDA—$10 million. This supplemental credit will finance a first round of flood rehabilitation subprojects and expand the effort based on a pilot by the government. Larger scale infrastructure is being addressed by another stand-alone IDA credit. Total cost: $10 million. §◊ Colombia IBRD—$150 million. Over a million of Colombia’s poorest children will benefit from this investment loan, designed to improve their health and education conditions through conditional cash transfers or grants to eligible families with students under 17 years old. Total cost: $455 million. §◊ East Timor Trust Fund—$8.5 million. This grant supports the creation of democratically elected village councils through which local communities would receive grants to rehabilitate basic infrastructure and restart economic activities. Most of the population will benefit, especially vulnerable groups. Total cost: $24.8 million.
† Ethiopia IDA—$170.6 million. This credit will demobilize and reintegrate 150,000 war veterans into their communities and provide employment opportunities for them. It will also benefit the reallocation of resources from defense expenditures toward poverty reduction and accelerated economic growth. Total cost: $170.6 million. ◊ Ethiopia IDA—$5 million. Women in selected poor districts will benefit from this learning and innovation credit, which will test methods to enhance social and economic welfare of households. The credit also supports HIV/AIDS awareness and prevention. Total cost: $8 million. §◊ Honduras IDA—$60 million. This credit continues support for the Honduras Social Investment Fund, which benefits the poor by financing small-scale social and economic infrastructure and social assistance programs. Total cost: $176.1 million. §◊ Indonesia IBRD—$208.9 million; IDA—$111.3 million. This investment loan/credit will benefit the management of participatory planning development in poor rural communities and villages, improve social and economic infrastructure, and strengthen local institutions. Total cost: $421.5 million. ◊ Indonesia IDA—$48.2 million. This supplemental credit will support third- and fourth-year funding of the Kecamatan Development Project, benefiting the management of participatory planning development in poor rural communities and villages; improve social and economic infrastructure; and strengthen local institutions. Total cost: $48.3 million. †◊ Kosovo Trust Fund—$5 million. This grant will improve the living conditions of poorer populations seeking to upgrade priority basic social and economic services; enhance community solidarity and initiative; and reinforce citizen participation in local governance and development. Total cost: $10.3 million. §◊ Lebanon IBRD—$20 million. This investment loan will raise living standards in targeted poorer communities, through investments in grassroots social and small infrastructure, income-enhancement activities, and special targeted programs for vulnerable groups. Total cost: $30 million.
◊ Macedonia, former Yugoslav Republic of IDA—$2.5 million. This learning and innovation credit will increase social cohesion through social integration of at-risk youth from diverse sociocultural backgrounds. Community-based approaches will be tested to support adolescents and youth at risk. Total cost: $4 million. §◊ Madagascar IDA—$110 million. This investment credit will strengthen social and economic services to poor rural communities and will build community capacity to plan and implement subprojects. Total cost: $137 million. ◊ Madagascar IDA—$18.1 million. This supplemental credit will support post-cyclone reconstruction efforts, targeting communities in areas stricken by the cyclones, and improve access of the poor rural population to social and economic infrastructure. Total cost: $24 million. §◊ Nicaragua IDA—$60 million. This investment credit will finance small-scale social and economic infrastructure for the poor, as well as technical assistance for municipal planning, community organization, and social protection. Total cost: $136 million. §◊ Nigeria IDA—$60 million. About 30 million Nigerians living in extreme poverty will, through this investment credit, benefit from improved access to social and economic infrastructure and a decentralized approach to managing resources at the community level. Total cost: $96.4 million. †◊ Peru IBRD—$100 million. Low-income rural Peruvians will benefit from decentralized, more closely monitored, social reform programs, supporting health, nutrition, and education and giving beneficiaries oversight authority of the programs. Total cost: $100 million. §◊ Romania IBRD—$50 million. This investment loan will strengthen the government’s policy development, monitoring, and evaluation capacity for poverty reduction. The project will also focus on reform of the social insurance system and on labor market adjustment. Total cost: $77.7 million. ◊ Russian Federation IBRD—$80 million. This investment loan will allow municipalities in the north to realize the benefits of economic restructuring and facilitate the implementation of sustainable municipal policies. Total cost: $95.2 million.
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§◊ Senegal IDA—$30 million. This adaptable program credit will help nearly 4,000 villages benefit from interventions aimed at improving the quality of basic social services, resulting in improved capacity to manage their own development resources. Total cost: $46.5 million. §◊ Tanzania IDA—$60 million. This investment credit will help cushion the near-term social impact on about 13 million poor people of reforms needed for growth and poverty reduction, ensuring that social needs are met and building capacity to implement community programs. Total cost: $71.8 million. Turkey IBRD—$250 million. This investment loan will monitor and mitigate the negative impact of economic reforms. It includes job loss compensations and labor redeployment services, resulting in improved productivity while supporting social safety nets for workers. Total cost: $355.3 million. §◊ West Bank and Gaza Trust Fund—$8 million. Implemented as a comprehensive program of capacity building, this project will strengthen the capacity of nongovernmental organizations (NGOs) to deliver sustainable services to poor and marginalized groups, thereby supporting the overall professional and strategic development of the NGO sector. Total cost: $16 million. TELECOMMUNICATIONS † Morocco IBRD—$65 million. This loan will increase the efficiency and coverage of telecommunications, post, and information technology to poor, especially rural, areas and create job opportunities through the establishment of a conducive environment for enhanced competition. Total cost: $65 million.
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◊ Azerbaijan IDA—$40 million. This investment credit will revive the Silk Route connecting China and Central Asia with Europe. The project will modernize the East-West Highway and include rural road pilot contracts designed to provide solutions for rural road operations. Total cost: $48 million. Belize IBRD—$13 million. This investment loan finances paving of gravel roads and improvements to water drainage to handle floods, increasing Belize’s capacity to cope with natural disasters and improving road safety and farmers’ access to markets. Total cost: $18.4 million. Bosnia and Herzegovina IDA—$11 million. This investment credit will support reforms to promote more efficient trade flows in South East Europe, provide European Union–compatible customs standards, and reduce nontariff costs, smuggling, and corruption. Total cost: $14.8 million. Cape Verde IDA—$5 million. This supplemental credit will help the government finance the rehabilitation of the main section of the ring road serving Santiago, the country’s main island, thereby facilitating social and commercial use of the road. Total cost: $5 million. ◊ Chad IDA—$67 million. This investment credit will help the government provide year-round access to markets and services to the population, in particular those living in rural areas, resulting in a reduction in poverty and isolation. Total cost: $91.1 million.
TRANSPORTATION
◊ China IBRD—$100 million. Approximately 5.9 million people in poor areas will, through this loan, benefit from improved market access in remote inland areas, provision of efficient and economic inland waterway transport, and power generation in remote areas. Total cost: $220.2 million.
Albania IDA—$8.1 million. This investment credit, part of a regional program for trade and transport facilitation in South East Europe, will foster trade by promoting more efficient and less costly trade flows and by providing European Union–compatible customs standards. Total cost: $12.3 million.
◊ China IBRD—$200 million. About 3.3 million people in seven counties in southern Jiangxi will directly benefit from the provision of efficient, safe, and effective highway infrastructure and improved access to health, education, and other social services in low-income areas. Total cost: $535.7 million.
The World Bank Annual Report 2001
◊ China IBRD—$100 million. This investment loan will benefit 1.5 million people in the city of Shijiazhuang through the development of a more efficient and environmentally sustainable transport system with improved facilities for all modes of transportation. Total cost: $286.2 million. ◊ China IBRD—$100 million. This investment loan will help improve the quality of life by developing the urban transportation system to facilitate future growth of Urumqi, and support the development of the wider Xinjiang Uygur Autonomous Region. Total cost: $270 million. Croatia IBRD—$13.9 million. This investment loan, part of a regional program fostering trade, will promote more efficient and less costly trade flows across borders and provide European Union–compatible customs standards. Total cost: $22.1 million. ◊ Honduras IDA—$66.5 million. This credit finances rehabilitation, reconstruction, and improvement of 100 kilometers of roads and 90 bridges damaged by Hurricane Mitch, thereby benefiting the poor and fostering market integration and economic growth. Total cost: $106.8 million. ◊ India IBRD—$589 million. As part of a broader support program for India’s highway development, this investment loan will help cut travel time and boost safety on the New Delhi–Calcutta highway, which passes through some of India’s poorest states. Total cost: $756 million. ◊ India IBRD—$381 million. Through this invest ment loan, approximately 48 million people will benefit from road widening and strengthening as well as technical assistance to improve the management of road resources, resulting in improved access to health and educational services. Total cost: $533 million. ◊ India IBRD—$360 million. This investment loan will benefit approximately 50 million people by enhancing roads, meeting social and economic needs through institutional strengthening, and supporting a pilot road safety program. Total cost: $447 million. ◊ Kosovo Trust Fund—$5 million. This grant will contribute to Kosovo’s reconstruction and economic development through support for road management capacity, sustainable road maintenance financing, emergency road maintenance activities, and local contracting capacity. Total cost: $5 million.
◊ Kyrgyz Republic IDA—$22 million. This invest ment credit will provide sustainable, reliable, and affordable transportation for people living in Bishkek, Osh, and Jalalabad. It will restore selected roads and help develop a source of financing for maintenance and rehabilitation. Total cost: $24.2 million. Lao People’s Democratic Republic IDA—$25 million. Citizens and road users will benefit from this adaptable program credit, which supports improved road access and reduced transport costs, community delivery of maintenance services, stronger local enterprises, and user-fee sustainable financing of primary roads. Total cost: $47.8 million. Macedonia, former Yugoslav Republic of IDA—$9.3 million. This investment credit, part of a regional program for trade and transport facilitation in South East Europe, will foster trade by promoting more efficient and less costly trade flows and providing European Union–compatible customs standards. Total cost: $14.5 million. Mexico IBRD—$218 million. This investment loan benefits millions of Mexican motorists by supporting improved management, maintenance, and rehabilitation of Mexico’s 49,000-kilometer network of federal highways. Such support will reduce transportation costs and enhance competitiveness of Mexican products in international markets. Total cost: $309 million. ◊ Mongolia IDA—$34 million. This investment credit will improve accessibility of isolated and remote regions of Mongolia, increase transport capacity and export trade, and reduce the number of road accidents. Total cost: $49.5 million. ◊ Nicaragua IDA—$75 million. This investment credit will help repair and upgrade 450 kilometer of rural roads and highways damaged by Hurricane Mitch, and improve transport links for local residents, farmers, business people, and the population at large. Total cost: $87.4 million. Pakistan IDA—$3 million. This technical assistance credit will help Pakistan become more competitive in the international market through development of integrated, modernized, and more cost-effective transport systems to improve both industrial and commercial trade and transport efficiency. Total cost: $3.5 million.
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§◊ Peru IBRD—$50 million. This sector investment and maintenance loan will benefit rural areas by creating about 15,500 jobs in road-building and upgrading, which will improve access to social services (such as hospitals and schools), marketplaces, and income-earning activities. Total cost: $151 million. ◊ Philippines IBRD—$60 million. Lower-income residents of Metro Manila using public transport, walking, and cycling will benefit from this project, which aims to improve transport efficiency and safety and enhance the use of public and nonmotorized transport. Total cost: $97.6 million. ◊ Poland IBRD—$101 million. This investment loan will mitigate the social consequences of layoffs of some 37,000 workers resulting from commercialization and partial privatization of the state railways, and prepare the transport system for entry into the European Union. Total cost: $335.3 million. Poland IBRD—$38.5 million. This investment loan will help improve the Szczecin-Swinoujscie Seaway and support construction of new berths and cargohandling areas within the existing port, resulting in reduction of cost and transit time, and benefiting the national community. Total cost: $83 million. ◊ Russian Federation IBRD—$60 million. This investment loan will improve institutional capacity in planning, implementing, operating, and enforcing traffic management measures to improve transport mobility in the city. Total cost: $123.2 million. Tunisia IBRD—$37.6 million. This adaptable pro gram loan will support sustainable growth of public transport in major cities through improvements and capacity building in public bus and rail systems as well as modernizing traffic management in the phosphate railway network. Total cost: $57 million. §◊ Yemen, Republic of IDA—$45 million. This adaptable program credit will improve rural access in the poorest areas, creating institutional arrangements and technical standards, and implementing pilot road projects in four governorates to assist farmers in marketing their products. Total cost: $52.6 million.
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◊ Vietnam IDA—$110 million. This investment credit will enhance the commercial use and safety of an improved transportation network, enhance access between rural areas and major trade centers, and reduce road closures in flood-prone areas. Total cost: $143.9 million. ◊ Zambia IDA—$27 million. This investment credit will help this landlocked country improve its railway system’s operating efficiency, reduce its cost of operations, and configure its freight services and tariffs to meet customers’requirements and expectations. Total cost: $31 million. URBAN DEVLOPMENT ◊ Bangladesh IDA—$4.7 million. All residents of Bangladesh, especially the poorest, will benefit from this learning and innovation credit that will test new ways of controlling urban air pollution through pilot activities and institutional support. Total cost: $5.9 million. ◊ Burundi IDA—$40 million. This investment credit will support the peace process and reconstruction of Burundi by helping to generate productive, laborintensive employment for about 600,000 people, particularly youths, returning refugees, and demobilized combatants in urban areas. Total cost: $41.6 million. ◊ China IBRD—$105.5 million. More than three million people will benefit from this investment loan, which is designed to upgrade water quality in the Huai River Basin through improved collection and treatment of wastewater. Total cost: $226.9 million. ◊ China IBRD—$100 million. Approximately 1.5 million people in Liaoning Province will benefit from improvements in environmental quality, health, and municipal services. The project will reduce water pollution–related diseases, increase wastewater col lection, and improve access to clean water. Total cost: $203.6 million. ◊ Indonesia IBRD—$11.7 million; IDA—$5.8 million. The adaptable program loan and credit (accompanied by a Global Environment Facility grant) will finance the institutional strengthening of local governments, enabling them to achieve sustainable environmental management and growth. The project will benefit approximately 4.5 million urban poor. Total cost: $22.8 million.
◊ Nicaragua IDA—$13.5 million. This credit improves natural disaster preparedness by strengthening a National System for Disaster Management, assessing disaster risks, and applying sustainable land-use and building standards. Total cost: $16.1 million. ◊ Russian Federation IBRD—$85 million. This investment loan will help alleviate the financial burden on municipal governments of supplying district heating, through enhanced efficiency and sound cost-recovery policies, resulting in lower heating costs to consumers. Total cost: $127.9 million. ◊ Tunisia IBRD—$17 million. This investment loan will assist the government in developing sustainable management of its cultural heritage by developing cultural tourism to increase tourism revenues. Total cost: $23.8 million. ◊ Vietnam IDA—$166.3 million. Approximately 1.2 million people will benefit from this investment credit, which will improve public health and economic development in Ho Chi Minh City by reducing pollution and flooding, and by strengthening institutions. Total cost: $200 million. WATER SUPPLY AND SANITATION ◊ Burkina Faso IDA—$70 million. This investment credit will help approximately 980,000 people in Ouagadougou gain access to adequate and reliable water sources through the expansion and distribution of tertiary water networks and improved water subsector management. Total cost: $205.9 million. ◊ Comoros IDA—$11.4 million. This sector invest ment credit, supporting a multidonor-financed pro gram, will improve living conditions and stimulate economic growth while protecting the environment through investments in water and road infrastructure, benefiting 500,000 people. Total cost: $13.3 million. §◊ Ecuador IBRD—$32 million. This adaptable pro gram loan will benefit about 350,000 mostly poor people in rural areas who will gain access to basic water and sanitation services. The loan will also support institutional and financial strengthening. Total cost: $50.3 million.
§◊ India IDA—$65.5 million. About 1.5 million peo ple, especially poor women and disadvantaged communities, will, through this investment credit, benefit from increased access to clean water and sanitation services, resulting in greater empowerment and additional income. Total cost: $89.8 million. ◊ Kosovo Trust Fund—$4.6 million. This grant will restore the water supply service quality and improve service efficiency and sustainability in the Gjakovë (Dakovica)-Rahovec (Orahovac) area, benefiting approximately 200,000 people by addressing both immediate needs and long-term structural issues. Total cost: $5.9 million. ◊ Macedonia, former Yugoslav Republic of IBRD—$16.2 million; IDA—$13.1 million. This investment loan/credit will improve the efficiency of the water and wastewater utilities, enabling the government to provide affordable services and providing a basis for the future development of the solid-waste sector. Total cost: $42.4 million. ◊ Niger IDA—$48 million. This credit will help the government’s water reform program improve access to safe drinking water and sanitation to about 355,000 people living in Niger’s rural and urban areas. Total cost: $79.4 million. Russian Federation IBRD—$122.5 million. This investment loan will support critical investments needed to improve water and wastewater systems in 14 cities, restoring acceptable standards of drinking water and serving as a model for reforms elsewhere. Total cost: $168.9 million. ◊ Senegal IDA—$125 million. About 800,000 people in low-income areas of Dakar and secondary cities will, through this investment credit, benefit from improvements in the delivery of water and sanitation services, resulting in overall improvements of public health. Total cost: $248.4 million. ◊ Ukraine IBRD—$24.3 million. This investment loan will support efforts to improve the delivery of water and wastewater services to the people of Lviv and surrounding areas, and will help to protect and improve water quality. Total cost: $40.8 million.
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Uruguay IBRD—$6 million. This technical assis tance loan will help improve the efficiency and sustainability of services in the areas of water supply and sanitation, power, natural gas, petroleum, railways and ports, telecommunications, and postal services. Expected benefits include better access, lower cost, and improved quality. Total cost: $7.6 million.
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§◊ Yemen, Republic of IDA—$20 million. Approximately 400,000 people will, through this investment credit, gain access to a more safe, reliable, and convenient water supply with improved sanitation, thus improving public health and freeing girls from water-fetching chores so that they may instead attend school. Total cost: $29.4 million.
Chapter 8
About the World Bank Organizational Information Governors and Alternates Executive Directors and Alternates and Their Voting Power Officers Office Locations Tables Table 8.1 Table 8.2 Table 8.3 Table 8.4 Table 8.5 Table 8.6 Table 8.7 Table 8.8 Table 8.9 Table 8.10 Table 8.11 Table 8.12 Table 8.13 Table 8.14
Country Eligibility for Borrowing from the World Bank World Bank Commitments, Disbursements, and Net Transfers in Africa, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in East Asia and Pacific, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in South Asia, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Europe and Central Asia, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Latin America and the Caribbean, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Middle East and North Africa, Fiscal 1996–2001 Operations Approved during Fiscal 2001, Africa Operations Approved during Fiscal 2001, East Asia and Pacific Operations Approved during Fiscal 2001, South Asia Operations Approved during Fiscal 2001, Europe and Central Asia Operations Approved during Fiscal 2001, Latin America and the Caribbean Operations Approved during Fiscal 2001, Middle East and North Africa Adjustment Operations, Fiscal 2001
128 132 134 135
139 141 141 142 142 143 143 144 147 148 149 151 153 154
Organizational Information
Governors and Alternates June 30, 2001
128
Member
Governor
Alternate
Afghanistan Albania Algeria Angola Antigua and Barbuda + Argentina Armenia Australia Austria Azerbaijan
(vacant) Anastas Angjeli Mourad Medelci Ana Dias Lourenco Lester B. Bird Domingo Felipe Cavallo Vahram Nercissiantz Peter Costello Karl-Heinz Grasser Elman Siradjogly Rustamov
(vacant) Fatos Ibrahimi Omar Bougara Job Graca Asot A. Michael Pedro Pou Karen Chshmarityan Kay Patterson Thomas Wieser (vacant)
Bahamas, The + Bahrain + Bangladesh Barbados Belarus + Belgium Belize Benin Bhutan Bolivia
William C. Allen Abdulla Hassan Saif Shah A.M.S. Kibria Owen S. Arthur Andrei V. Kobyakov Didier Reynders Said W. Musa Bruno Amoussou Yeshey Zimba Jose Luis Lupo Flores
Ruth R. Millar Zakaria Ahmed Hejres A.K.M. Masihur Rahman Grantley W. Smith Vladimir N. Shimov Guy Quaden Yvonne S. Hyde Pierre John Igue (vacant) Bernardo Requena Blanco
Bosnia and Herzegovina Botswana Brazil Brunei Darussalam + Bulgaria + Burkina Faso Burundi Cambodia Cameroon Canada
Mirsad Kurtovic Baledzi Gaolathe Pedro Sampaio Malan Haji Hassanal Bolkiah Muravei Radev Jean Baptiste Compaore Charles Nihangaza Keat Chhon Martin Okouda Paul Martin
Dragan Covic Serwalo S.G. Tumelo Arminio Fraga Neto Haji Selamat Haji Munap Martin Mihaylov Zaimov Patrice Nikiema Dieudonne Nintunze Ouk Rabun Daniel Njankouo Lamere Leonard M. Good
Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo, Democratic Republic of Congo, Republic of Costa Rica
Carlos Augusto Duarte Burgo Eric Sorongope Ahmed Lamine Ali Nicolas Eyzaguirre Xiang Huaicheng Juan Manuel Santos Calderon Djaffar Mmadi Matungulu Mbuyamu Ilankir Mathias Dzon Leonel Baruch G.
(vacant) Alexis Ngomba Etienne Djimram Moyta Mario Marcel Jin Liqun Juan Carlos Echeverry Moindjie Saadi Jean-Claude Masangu Mulongo Clement Mierassa Eduardo Lizano Fait
The World Bank Annual Report 2001
Member
Governor
Alternate
Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Republic of
Affi N’Guessan Mato Crkvenac Takis Klerides Jiri Rusnok Anita Bay Bundegaard Yacin Elmi Bouh Ambrose George Francisco M. Guerrero Prats-R. Jorge Gallardo Zavala Medhat Hassanein
Bouabre Bohoun Josip Kulisic Andreas Tryfonides Oldrich Dedek Carsten Staur Nouh Omar Miguil Ambrose M.J. Sylvester Luis Manuel Piantini Alexander Mejia Penafiel Ahmed Mahrous El-Darsh
El Salvador Equatorial Guinea Eritrea Estonia + Ethiopia Fiji Finland France Gabon Gambia, The
Juan Jose Daboub Fortunato Ofa Mbo Gebreselassie Yosief Siim Kallas Sufian Ahmed Jone Yavala Kubuabola Sauli Niinisto Laurent Fabius Casimir Oye-Mba Famara L. Jatta
Rafael Barraza Melchor Esono Edjo Gabriel Fassil Ogbazghy Mihkel Parnoja Girma Birru Solomone S. Kotobalavu Satu Hassi Jean-Pierre Jouyet Claude Ayo Iguendha Dodou B. Jagne
Georgia Germany Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti
Zurab Nogaideli Heidemarie Wieczorek-Zeul Yaw Osafo-Maafo Yannos Papantoniou Anthony Boatswain Eduardo Humberto Weymann Fuentes Cheick Ahmadou Camara Purna Bia Bharrat Jagdeo Fred Joseph
Ivan Chkhartishvili Caio K. Koch-Weser Victor Selormey Yiannis G. Zafeiropoulos Swinburne Lestrade Lizardo Arturo Sosa Lopez Cellou Dalein Diallo Verissimo Nancassa Saisnarine Kowlessar Fritz Jean
Honduras Hungary Iceland India Indonesia Iran, Islamic Republic of Iraq Ireland Israel Italy
Gabriela Nunez de Reyes Mihaly Varga Halldor Asgrimsson Yashwant Sinha Rizal Ramli Hossein Namazi Issam Rashid Hwaish Charlie McCreevy David Klein Antonio Fazio
Victoria Asfura de Diaz Peter Adamecz Geir Hilmar Haarde Ajit Kumar Achjar Iljas Parviz Davoodi Hashim Ali Obaid John Hurley Avi Ben-Bassat Mario Draghi
Jamaica + Japan Jordan Kazakhstan Kenya Kiribati Korea, Republic of Kuwait Kyrgyz Republic Lao People’s Democratic Republic
Omar Lloyd Davies Masajuro Shiokawa Jawad Hadid Oraz Jandosov Chrysanthus Barnabas Okemo Beniamina Tinga Nyum Jin Yousef Hamad Al-Ebraheem Temirbek Akmataliev Soukanh Maharat
Wesley George Hughes Masaru Hayami Abderrzaq Bani Hani Zhaxybek Kulekeyev Martin Luke Oduor-Otieno Bureti Williams Chol-Hwan Chon Bader Meshari Al-Humaidhi Kubat Abduldaevich Kanimetov Phouphet Khamphounvong (continued next page)
About the World Bank
129
Governors and Alternates (continued)
130
Member
Governor
Alternate
Latvia Lebanon Lesotho Liberia Libya Lithuania + Luxembourg Macedonia, former Yugoslav Republic of Madagascar Malawi
Roberts Zile Fuad A.B. Siniora Kelebone Albert Maope Amelia A. Ward Alojeli Abdel Salam Breeni Jonas Lionginas Luc Frieden
Aigars Kalvitis Basil R. Fuleihan Molelekeng E. Rapolaki M. Nathaniel Barnes Ali Ramadan Shnebsh Arvydas Kregzde Jean Guill
Nikola Gruevski Pierrot J. Rajaonarivelo Mathews A.P. Chikaonda
Dragan Martinovski Simon Constant Horace Mapopa Chipeta
Malaysia Maldives Mali Malta + Marshall Islands Mauritania Mauritius Mexico Micronesia, Federated States of Moldova
Mahathir Mohamed Fathulla Jameel Bacari Kone John Dalli Michael Konelios Mohamed Ould Nany Khushhal Chand Khushiram Francisco Gil Diaz John Ehsa Mihail Manoli
Samsudin bin Hitam Adam Maniku Toure Alimata Traore Joseph Scicluna Smith Michael Abdallah Ould Hormtallah Philippe Ong Seng Agustin Carstens Sebastian L. Anefal Dumitru Ursu
Mongolia Morocco Mozambique Myanmar Namibia + Nepal Netherlands New Zealand Nicaragua Niger
Chultem Ulaan Fathallah Oualalou Adriano Afonso Maleiane Khin Maung Thein Saara Kuugongelwa Ram Sharam Mahat Gerrit Zalm Michael Cullen Esteban Duque Estrada Ali Badjo Gamatie
Ochirbat Chuluunbat Ahmed Lahlimi Manuel Chang Soe Lin Usutuaije Maamberua Bimal P. Koirala Eveline Herfkens Alan Bollard Francisco Aguirre Sacasa Maliki Barhouni
Nigeria Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines
Adamu Ciroma Anne Kristin Sydnes Ahmed Macki Shaukat Aziz Casmir Remengesau Norberto Delgado Duran Mekere Morauta Francisco Oviedo Britez Javier Silva Ruete Jose Isidro N. Camacho
Ramsey Oubromoro Mowoe Sigrun Mogedal Mohammed bin Nasser Al-Khasibi Nawid Ahsan Lawrence Alan Goddard Domingo Latorraca Koiari Tarata James Spalding Alfredo Jalilie Awapara Rafael B. Buenaventura
Poland Portugal Qatar + Romania + Russian Federation Rwanda St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Samoa
Leszek Balcerowicz Joaquim Pina Moura Yousef Hussain Kamal Mihai Nicolae Tanasescu Viktor Khristenko Donald Kaberuka Denzil Douglas Kenny D. Anthony Ralph E. Gonsalves Misa Telefoni Retzlaff
Ryszard Kokoszczynski Manuel Pedro da Cruz Baganha Abdullah Bin Khalid Al-Attiyah Emil Iota Ghizari German O. Gref Jean Marie Karekezi Wendell E. Lawrence Bernard La Corbiniere Laura Anthony-Browne Hinauri Petana
The World Bank Annual Report 2001
Member
Governor
Alternate
San Marino + São Tomé and Principe Saudi Arabia Senegal Seychelles + Sierra Leone Singapore + Slovak Republic Slovenia Solomon Islands
Clelio Galassi Adelino Santiago Castelo David Ibrahim A. Al-Assaf Makhtar Diop Jeremie Bonnelame Peter J. Kuyembeh Richard Hu Tsu Tau Ivan Miklos Anton Rop Snyder Rini
Stefano Macina Angela M. da Graca Viegas Santiago Hamad Al-Sayari Oumar Khassimou Dia Alain Butler-Payette Samura Kamara Lim Siong Guan Marian Jusko Irena Sodin Shadrach Fanega
Somalia South Africa Spain Sri Lanka Sudan Suriname + Swaziland Sweden Switzerland Syrian Arab Republic
(vacant) Trevor Andrew Manuel Rodrigo de Rato Figaredo Chandrika Bandaranaika Kumaratunga Abdul Rahim Hamdi Humphrey S. Hildenberg Guduza Bosse Ringholm Pascal Couchepin Mohammed Khaled Al-Mahayni
(vacant) Mandisi Bongani Mpahlwa Juan Costa Climent P.B. Jayasundera Sabir Mohamed Hassan Stanley B. Ramsaran Musa D. Fakudze Maj-Inger Klingvall Joseph Deiss Mohamad Bittar
Tajikistan Tanzania Thailand Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan + Uganda
Safarali Najmuddinov Nassoro W. Malocho Somkid Jatusripitak Simfeitcheou Pre Siosiua T.T. ’Utoikamanu Gerald Yetming Fethi Merdassi Faik Oztrak Seitbay Kandymov Gerald M. Ssendaula
Sharif Rakhimov Peter J. Ngumbullu Somchainuk Engtrakul Kossi Assimaidou ’Aisake V. Eke Leroy Mayers Abdelhamid Triki Aydin Karaoz Serdar Bayriev C. M. Kassami
Ukraine + United Arab Emirates United Kingdom United States Uruguay + Uzbekistan Vanuatu Venezuela, República Bolivariana de + Vietnam Yemen, Republic of
Yriy Yekhanurov Hamdan bin Rashid Al-Maktoum Clare Short Paul H. O'Neill Alberto Bension Rustam S. Azimov Joe Bomal Carlo
Vasyl Rohovyi Mohammed Khalfan Bin Khirbash Gordon Brown Alan P. Larson Ariel Davrieux (vacant) Jeffery Wilfred
Jorge Antonio Giordani Cordero Le Duc Thuy Ahmed Mohamed Sofan
Jose Alejandro Rojas Ramirez Duong Thu Huong Anwar Rizq Al-Harazi
Yugoslavia, Federal Republic of Zambia Zimbabwe
Miroljub Labus James Mwalimu Mtonga Simba Herbert Stanley Makoni
Dragisa Pesic Stella M. Chibanda Leonard Ladislas Tsumba
+ Not a member of IDA
About the World Bank
131
Organizational Information
Executive Directors and Alternates and their Voting Power June 30, 2001
Executive Director
Alternate
Casting votes of
(vacant) Masanori Yoshida Eckhardt Biskup Emmanuel Moulin Rosemary B. Stevenson
United States Japan Germany France United Kingdom
Philippe M. Peeters (Belgium)
Emin Dedeoglu (Turkey)
Moises Pineda (Mexico)
IBRD Total Percent votes of total
Total votes
IDA Percent of total
Appointed Jan Piercya Yuzo Harada Helmut Schaffer Jean-Claude Milleronc Stephen Pickford
265,219 127,250 72,649 69,647 69,647
16.45 7.89 4.51 4.32 4.32
1,865,737 1,414,996 913,474 561,248 641,302
14.46 10.96 7.08 4.35 4.97
Austria, Belarus,b Belgium, Czech Republic, Hungary, Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey
77,669
4.82
580,627
4.50
Jose H. Machillanda (R.B. de Venezuela)
Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, Venezuela (RepĂşblica Bolivariana de) b
72,786
4.51
285,452
2.21
Pieter Stek (Netherlands)
Tamara Solyanyk (Ukraine)
Armenia, Bosnia and Herzegovina, Bulgaria,b Croatia, Cyprus, Georgia, Israel, Macedonia (former Yugoslav Republic of), Moldova, Netherlands, Romania, b Ukraineb
72,208
4.48
471,373
3.65
Terrie O’Leary (Canada)
Sharon Weber (Jamaica)
Antigua and Barbuda, b The Bahamas,b Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, b St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines
62,217
3.86
551,237
4.27
Jaime Ruiz (Colombia)
Luis Antonio Balduino (Brazil)
Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama, Philippines, Suriname,b Trinidad and Tobago
58,124
3.61
374,936
2.91
Franco Passacantando (Italy)
Helena Cordeiro (Portugal)
Albania, Greece, Italy, Malta,b Portugal, San Marinob
55,938
3.47
507,328
3.93
Neil F. Hyden (Australia)
Lewis D. Holdend (New Zealand)
Australia, Cambodia, Kiribati, Korea (Republic of), Marshall Islands, Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu
55,800
3.46
386,903
3.00
Balmiki Prasad Singh (India)
Mahbub Kabir (Bangladesh)
Bangladesh, Bhutan, India, Sri Lanka
54,945
3.41
546,804
4.24
Ahmed Sadoudi (Algeria)
Inaamul Haque (Pakistan)
Algeria, Ghana, Iran (Islamic Republic of), Iraq, Morocco, Pakistan, Tunisia
54,052
3.35
253,710
1.97
Elected
132
The World Bank Annual Report 2001
IBRD Total Percent votes of total
Total votes
IDA Percent of total
Executive Director
Alternate
Casting votes of
Finn Jønck (Finland)
Anna M. Brandt e (Sweden)
Denmark, Estonia,b Finland, Iceland, Latvia, 54,039 Lithuania,b Norway, Sweden
3.35
637,035
4.94
Girmai Abraham (Eritrea)
Richard H. Kaijuka (Uganda)
Angola, Botswana, Burundi, Eritrea, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, b Nigeria, Seychelles,b Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe
53,962
3.35
475,933
3.69
Matthias Meyer (Switzerland)
Jerzy Hylewski (Poland)
Azerbaijan, Kyrgyz Republic, Poland, Switzerland, Tajikistan, Turkmenistan,b Uzbekistan
46,096
2.86
453,949
3.52
Zhu Guangyao (China)
Chen Huan (China)
China
45,049
2.79
247,345
1.92
Yahya Abdulla M. Alyahya (Saudi Arabia)
Abdulrahman M. Almofadhi (Saudi Arabia)
Saudi Arabia
45,045
2.79
458,383
3.55
Andrei Bugrov (Russian Federation)
Eugene Miagkov (Russian Federation)
Russian Federation
45,045
2.79
35,887
0.28
Khalid M. Al-Saad (Kuwait)
Mohamed Kamel Amr Bahrain,b Egypt (Arab Republic of), Jordan, (Arab Republic of Egypt) Kuwait, Lebanon, Libya, Maldives, Oman, Qatar, b Syrian Arab Republic, United Arab Emirates, Yemen (Republic of)
43,984
2.73
283,971
2.20
Abdul Aziz Mohd. Yaacob Nguyen Doan Hung (Malaysia) (Vietnam)
Brunei Darussalam,b Fiji, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Nepal, Singapore,b Thailand, Tonga, Vietnam
41,096
2.55
345,372
2.68
Mario Soto-Platero (Uruguay)
Roberto Garcia-Lopez (Argentina)
Argentina, Bolivia, Chile, Paraguay Peru, Uruguayb
37,499
2.33
237,131
1.84
Bassary Toure (Mali)
Paulo F. Gomes (Guinea-Bissau)
Benin, Burkina Faso, Cameroon, Cape 32,252 Verde, Central African Republic, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Principe, Senegal, Togo
2.00
374,898
2.91
In addition to the executive directors and alternates shown in the foregoing list, the following also served after October 31, 2000: Executive director Zhu Xian (China)
End of period of service February 28, 2001
Alternate Pilar Alvarez (R.B. de Venezuela)
End of period of service December 15, 2000
Note: Afghanistan (550 votes in IBRD and 13,557 votes in IDA), Ethiopia (1,228 votes in IBRD and 23,053 votes in IDA), and Somalia (802 votes in IBRD and 10,506 votes in IDA) did not participate in the 2000 Regular Election of Executive Directors. The Federal Republic of Yugoslavia (1,847 votes in IBRD and 25,109 votes in IDA) became a member after that election. a. Carole Brookins (United States) will serve as Executive Director effective August 20, 2001. b. Member of the IBRD only. c. Resigned effective August 1, 2001; to be succeeded by Pierre Duquesne (France) effective August 20, 2001. d. Resigned effective July 6, 2001; to be succeeded by Dong-Soo Chin (Republic of Korea) effective July 23, 2001. e. Resigned effective July 31, 2001; to be succeeded by Inkeri Hirvensalo (Finland) effective August 23, 2001.
About the World Bank
133
Organizational Information
Officers June 30, 2001
134
President
James D. Wolfensohn
Managing Director Managing Director Managing Director Managing Director Managing Director
Sven Sandstrรถm Shengman Zhang Jeffrey A. Goldstein Mamphela Ramphele Peter Woicke
Senior Vice President and Chief Financial Officer Senior Vice President, Development Economics, and Chief Economist Vice President and Controller Vice President, Financial Sector Vice President, Latin America and the Caribbean Vice President and Network Head, Human Development Vice President and Corporate Secretary Vice President and Network Head, Environmentally and Socially Sustainable Development Vice President, External Affairs and U.N. Affairs Vice President, East Asia and Pacific Vice President, Resource Mobilization and Cofinancing Vice President, Europe and Central Asia Vice President, Africa Vice President and Chief Information Officer Vice President, South Asia Vice President, External Affairs, Europe Vice President, Development Policy Vice President and Network Head, Operations Policy and Country Services Vice President, Middle East and North Africa Vice President, Private Sector Development and Infrastructure and Network Head, Finance, Private Sector and Infrastructure Vice President, Human Resources Vice President, Strategy and Resource Management Vice President and General Counsel Vice President, World Bank Institute Director-General, Operations Evaluation Vice President and Network Head, Poverty Reduction and Economic Management Vice President and Treasurer
Gary Perlin Nicholas Stern Fayezul Choudhury Manuel Conthe David de Ferranti Eduardo Doryan Cheikh Ibrahima Fall
The World Bank Annual Report 2001
Ian Johnson Mats Karlsson Jemal-ud-din Kassum Motoo Kusakabe Johannes Linn Callisto Madavo Mohamed Muhsin Mieko Nishimizu Jean-Franรงois Rischard Josef Ritzen Joanne Salop Jean-Louis Sarbib Nemat Shafik Katherine Sierra Anil Sood Ko-Yung Tung Vinod Thomas Robert Picciotto Vacant Vacant
Organizational Information
Office Locations June 30, 2001 Headquarters: 1818 H Street N.W., Washington, D.C. 20433, U.S.A. New York Office: The World Bank Office of the Special Representative to the U.N. 809 United Nations Plaza, Suite 900 New York, N.Y. 10017, U.S.A. Europe: Banque Mondiale 66 avenue d’Iéna 75116 Paris, France Brussels: Banque Mondiale 10 rue Montoyer B-1000 Brussels, Belgium Frankfurt: The World Bank Bockenheimer Landstrasse 109 60325 Frankfurt am Main, Germany Geneva: The World Bank 3, chemin Louis Dunant, C.P. 66, CH-1211 Geneva 10, Switzerland London: The World Bank New Zealand House, 15th Floor, Haymarket, London SW1 Y4TE, England Tokyo: The World Bank 10th Floor, Fukoku Seimei Building, 2-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011 Japan Albania: The World Bank Deshmoret e 4 Shkurtit, No. 34, Tirana, Albania Angola: Banco Mundial Rua Alfredo Troni (Edificio BPC), No. 15, 14 Andar (14th Floor), Luanda, Angola (postal address: Caixa Postal 1331)
*Argentina: Banco Mundial Edificio Bouchard, Bouchard 547, 3er Piso, 1106 Buenos Aires, Argentina Armenia: The World Bank Republic Square 9 V. Sargsyan Street Yerevan 375010, Armenia *Australia: The World Bank Level 18, CML Building 14 Martin Place Sydney NSW 2000, Australia Azerbaijan: The World Bank 91-95 Mirza Mansur Street Icheri Sheher, Baku, 370004, Azerbaijan *Bangladesh: The World Bank 3A, Paribagh, Dhaka 1000, Bangladesh (postal address: G.P.O. Box 97) Belarus: The World Bank 2A Gertsen Street, 2nd Floor Minsk, 220030, Republic of Belarus Benin: Banque Mondiale Zone Résidentielle de la Radio, Cotonou, Bénin (postal address: B.P. 03-2112) Bolivia: Banco Mundial Edificio BISA piso 9, Av. 16 de Julio 1628 La Paz, Bolivia (postal address: Casilla 8692) Bosnia and Herzegovina: The World Bank Hamdije Kresevljakovica 19/5 71000 Sarajevo, Bosnia and Herzegovina
*Brazil: Banco Mundial Setor Comercial Norte, Quadra 02, Lote A - Edificio, Corporate Financial Center, Conjuntos 303/304, 603, Brasilia, DF 70712-900, Brazil Brazil: Banco Mundial Rua Oswaldo Cruz, No. 01 Edifício Beira Mar Trade Center Sala 1710, 60125-150 - Fortaleza, Ceará, Brazil Brazil: Banco Mundial Edificio SUDENE Sala 1S-108, Cidade Universitaria, 50670-900 Recife, PE, Brazil Bulgaria: The World Bank World Trade Center - Interpred, 36 Dragan Tsankov Blvd. Sofia 1057, Bulgaria Burkina Faso: Banque Mondiale Immeuble BICIA, 3ème étage, Ouagadougou, Burkina Faso (postal address: B.P. 622) Burundi: Banque Mondiale avenue du 18 septembre Bujumbura, Burundi (postal address: B.P. 2637) Cambodia: The World Bank 113 Norodom Boulevard Phnom Penh, Cambodia (postal address: P.O. Box 877) Cameroon: Banque Mondiale rue 1. 792, No. 186 Yaoundé, Cameroon (postal address: B.P. 1128) Central African Republic: Banque Mondiale rue des Missions, Bangui, République Centrafricaine (postal address: B.P. 819)
* Country Directors are located in the country offices.
About the World Bank
135
Office Locations (continued)
Chad: Banque Mondiale avenue Charles de Gaulle et avenue du Commandant Lamy, Quartier Bololo, N’Djamena, Chad (postal address: B.P. 146)
*Egypt, Arab Republic of: The World Bank World Trade Center 1191 Corniche El-Nil, 15th Floor, Boulaq, Cairo, Arab Republic of Egypt, 11221
*China: The World Bank 9th Floor, Building A, Fuhua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing 100027, China (postal address: P.O. Box 1006009086)
Eritrea: The World Bank 15/17, Tsegai Adig Street, Zone 03 Subzone 01, Asmara, Eritrea
Colombia: Banco Mundial Carrera 7 No.71-21, Torre A, piso 16, Edificio Fiduagraria, Apartado 10229, Bogota, Colombia
Estonia: The World Bank Suur-Ameerika 1, 13th Floor Tallinn EE0100, Estonia Ethiopia: The World Bank Africa Avenue, Bole Road Addis Ababa, Ethiopia (postal address: P.O. Box 5515)
*Côte d’Ivoire: Banque Mondiale Corner of Booker Washington and Jacques Aka Streets Cocody, Abidjan 01, Côte d’Ivoire (postal address: B.P. 1850)
Gabon: Banque Mondiale Quartier Palais de Justice Section RG, Parcelle No. 222 Libreville, Gabon
Croatia: The World Bank Trg J.F. Kennedya 6b/lll HR-10000 Zagreb, Croatia
Georgia: The World Bank 18A Chonkadze Street Tbilisi, 380007 Georgia
Dominican Republic: Banco Mundial Calle Virgilio Díaz Ordoñez #36, esq. Gustavo Mejía Ricart Edificio Mezzo Tempo, Suite 401, 4ta. Planta, Santo Domingo, R.D.
*Ghana: The World Bank 69 Dr. Isert Road, North Ridge Residential Area, Accra, Ghana (postal address: P.O. Box M. 27)
East Timor: The World Bank Rua Dos Direitos Humanos Dili, East Timor (postal address: World Bank Mission, East Timor, GPO Box 3548, Darwin, NT 0801, Australia) Ecuador: Banco Mundial Calle 12 de Octubre 1830 y Cordero, World Trade Center Torre B, Piso 13, Quito, Ecuador
Guatemala: Banco Mundial 13 Calle 3-40, Zona 10 Edificio Atlantis, Piso 14 Guatemala City, Guatemala Guinea: Banque Mondiale Immeuble de l’Archevêché Face Baie des Anges, Conakry, Guinée (postal address: B.P. 1420) Guyana: The World Bank c/o UNDP Building 42 Brickdam and UN Place, Stabroek, Georgetown, Guyana
* Country Directors are located in the country offices.
136
The World Bank Annual Report 2001
Haiti: Banque Mondiale 18 rue Emeric (Montana) Port-au-Prince, Haiti Honduras: Banco Mundial Centro Financiero BANEXPO 4to Piso, Boulevard San Juan Bosco, Colonia Payaquí Apartado Postal 3591, Tegucigalpa, Honduras Hong Kong: IBRD/IFC Joint Office Suite 1107 Asia Pacific Finance Tower, 3 Garden Road, Hong Kong *Hungary: The World Bank Bajcsy-Zsilinszky ut 42-46, 5th floor, 1054 Budapest, Hungary *India: The World Bank 70 Lodi Estate New Delhi 110 003, India (postal address: P.O. Box 416, New Delhi 110 001) *Indonesia: The World Bank Jakarta Stock Exchange Building, Tower 2, 12th Floor, Sudirman Central Business District (SCBD), Jl. Jendral Sudirman Kav. 52-53, Jakarta 12190, Indonesia (postal address: P.O. Box 324/JKT) Jamaica: The World Bank Island Life Center 6 St. Lucia Avenue, Third Floor, Kingston 5, Jamaica Kazakhstan: The World Bank Almaty Office 41 Kazybek bi Street, 4th Floor, 480100 Almaty, Republic of Kazakhstan Kazakhstan: The World Bank Astana Office, Samai Microdistrit, 2nd Floor Astana Towers, 473000 Astana, Republic of Kazakhstan
*Kenya: The World Bank Hill Park Building, Upper Hill, Nairobi, Kenya (postal address: P. O. Box 30577)
Malawi: The World Bank Development House, Capital City, Lilongwe 3, Malawi (postal address: P.O. Box 30557)
Kosovo: The World Bank Rruga Tirana No. 35 Pristina, Kosovo, Federal Republic of Yugoslavia
Mali: Banque Mondiale Immeuble SOGEFIH Centre Commercial Rue 321, Quartier du Fleuve, Bamako, Mali (postal address: B. P. 1864)
*Nigeria: The World Bank Plot 433 Yakubu Gowon Crescent, Opposite ECOWAS Secretariat, Asokoro District, Abuja, Nigeria (postal address: P.O. Box 2826, Garki)
Mauritania: Banque Mondiale Villa No. 30, Lot A, Quartier Socogim, Nouakchott, Mauritanie (postal address: B. P. 667)
*Pakistan: The World Bank 20 A Shahrah-e-Jamhuriyat Ramna 5, G-5/1, Islamabad, Pakistan (postal address: P.O. Box 1025)
*Mexico: Banco Mundial Insurgentes Sur 1605, Piso 24, San Jose Insurgentes, 03900 Mexico, D. F., Mexico
Papua New Guinea: The World Bank c/o Islander Travelodge Hotel Suite 102, P.O. Box 1877 Port Moresby, National Capital District, Papua New Guinea
Kyrgyz Republic: The World Bank 214 Moskovskaya Str. Bishkek 720010, Kyrgyz Republic Lao People’s Democratic Republic: The World Bank Pathou Xay-Nehru Road Vientiane, Lao PDR Latvia: The World Bank 8 Smilsu Street, 5th Floor Riga, LV 1162, Latvia Lebanon: The World Bank UN-House, 6th Floor Riad El Solh Square Beirut, Lebanon (postal address: P.O. Box 11-8577) Lesotho: The World Bank UN House, United Nations Road, Maseru, Lesotho Lithuania: The World Bank Vilniaus Str. 28, 2600 Vilnius, Lithuania Macedonia, former Yugoslav Republic of: The World Bank 34 Leninova Street, 91000 Skopje, FYR Macedonia *Madagascar: Banque Mondiale Rue Andriamifidy L. Razafimanantsoa, Anosy (près du Ministère des Affaires Etrangères), Antananarivo 101, Madagascar (postal address: B. P. 4140)
Moldova: The World Bank Sciusev str., 76/6, MD 2012, Chisinau, Republic of Moldova Mongolia: The World Bank 11-A Peace Avenue Ulaanbaatar 210648, Mongolia Morocco: The World Bank 7, rue Larbi Ben Abdellah Rabat-Souissi, Morocco Mozambique: The World Bank Ave. Kenneth Kaunda 1224, Maputo, Mozambique (postal address: Caixa Postal 4053) *Nepal: The World Bank Yak & Yeti Hotel Complex, Lal Durbar, Kathmandu, Nepal (postal address: P.O. Box 798) Nicaragua: Banco Mundial De los Semaforos de la Centroamerica, 400 mts. abajo, Segundo Piso Edificio SYSCOM, Managua, Nicaragua
Niger: Banque Mondiale 42 rue des Dallols, Niamey, Niger (postal address: B. P. 12402)
Paraguay: Banco Mundial Av. Mariscal Lopez y Sarabi Casa de las Naciones Unidas, Asunción, Paraguay *Peru: Banco Mundial Avenida Alvarez Calderón 185 Piso 7, San Isidro, Lima, Peru *Philippines: The World Bank 23/F, The Taipan Place Building, Emerald Avenue, Ortigas Center, Pasig City, Metro Manila, Philippines *Poland: The World Bank, 53 Emilii Plater St. Warsaw Financial Center, 9th Floor, 00-113 Warsaw, Poland Romania: The World Bank Boulevard Dacia 83, Sector 2, Bucharest, Romania *Russian Federation: The World Bank Sadovaya-Kudrinskaya No. 3, Moscow 123242, Russian Federation
* Country Directors are located in the country offices.
About the World Bank
137
Office Locations (continued)
Rwanda: The World Bank Boulevard de la Révolution SORAS Building, Kigali, Rwanda (postal address: P.O. Box 609) Saudi Arabia: The World Bank UNDP Building, Diplomatic Quarter (beside American Embassy) Riyadh, Saudi Arabia (postal address: P.O. Box 5900, Riyadh 11432, Saudi Arabia) *Senegal: Banque Mondiale 3, place de l’indépendance, Immeuble SDIH 5ème etage Dakar, Sénégal (postal address: B. P. 3296) Sierra Leone: The World Bank Regent House, 14 Wilberforce Street, Freetown, Sierra Leone Singapore: The World Bank #15-08, MAS Building 10 Shenton Way, Singapore, 079117 *South Africa: The World Bank Pro Equity Court Building First Floor, 1250 Pretorius Street, Hatfield, Pretoria, Republic of South Africa (postal address: P.O. Box 12629, Hatfield 0028, Pretoria) *Sri Lanka: The World Bank 1st Floor, DFCC Building 73/5, Galle Road, Colombo 3, Sri Lanka (postal address: P.O. Box 1761)
Tajikistan: The World Bank, Rudaki Avenue 105, Dushanbe, Tajikistan
Uzbekistan: The World Bank 43 Academician Suleimanova Street, Tashkent, Uzbekistan 700017
*Tanzania: The World Bank 50 Mirambo Street Dar-es-Salaam, Tanzania (postal address: P.O. Box 2054)
Venezuela, República Bolivariana de: Banco Mundial Av. Francisco de Miranda con Av. del Parque Torre Edicampo, Piso 9, Campo Alegre, Caracas, República Bolivariana de Venezuela
*Thailand: The World Bank Diethelm Towers, Tower A 17th Floor, 93/1 Wireless Road, Bangkok 10330, Thailand Togo: Banque Mondiale 169 Boulevard du 13 janvier, Immeuble BTCI, 8ème étage Lomé, Togo (postal address: Boite Postale 3915)
The World Bank Annual Report 2001
*West Bank and Gaza: The World Bank P.O. Box 54842 Jerusalem
*Turkey: The World Bank Ugur Mumcu Caddesi 88 Kat: 2, 06700 Gaziosmanpasa, Ankara, Turkey
Yemen, Republic of: The World Bank Hadda Street No. 40 off Damascus Road, Sana’a Republic of Yemen (postal address: P.O. Box 18152)
Turkmenistan: The World Bank United Nations Building Atabaev Street, 40, Ashgabat 744000, Turkmenistan
Yugoslavia, Federal Republic of: The World Bank – Liaison Office, Bulevar Kralja Aleksandra Belgrade 86-90 Federal Republic of Yugoslavia
Uganda: The World Bank 1 Lumumba Avenue Rwenzori House, 4th Floor Kampala, Uganda (postal address: P.O. Box 4463)
Zambia: The World Bank Anglo American Building, 74 Independence Avenue, 3rd Floor, Lusaka, Zambia 10101 (postal address: P.O. Box 35410)
Ukraine: The World Bank 2 Lysenko Street Kyiv 01034, Ukraine
Zimbabwe: The World Bank Old Lonrho Building 88 Nelson Mandela Avenue Harare, Zimbabwe (postal address: P.O. Box 2960)
* Country Directors are located in the country offices.
138
*Vietnam: The World Bank 63 Ly Thai To Street Hanoi, Vietnam
Tables
Table 8.1 Country Eligibility for Borrowing from the World Bank (as of July 1, 2001) Income group and country
2000 GNI per capita a
Income group and country
2000 GNI per capita a
Countries eligible for IBRD funds only Per capita income over $5,225 Slovenia Antigua and Barbuda Korea, Republic of Argentina Seychelles St. Kitts and Nevis Uruguay
10,070 9,190 8,910 7,440 7,310 6,660 6,090
Per capita income $2,996–$5,225 Mexico Trinidad and Tobago Czech Republic Hungary Chile Croatia Venezuela, República Bolivariana de Poland Costa Rica Mauritius Lebanon Slovak Republic Brazil Estonia Malaysia Botswana Panama Gabon Turkey South Africa Palau
5,080 4,980 4,920 4,740 4,600 4,510 4,310 4,200 3,960 3,800 3,750 3,700 3,570 3,410 3,380 3,300 3,260 3,180 3,090 3,020 n.a.
Per capita income $1,446–$2,995 Belarus Belize Lithuania Latvia Jamaica
2,990 2,940 2,900 2,860 2,440
Micronesia, Federated States of Dominican Republic Peru Tunisia Colombia Namibia Thailand El Salvador Marshall Islands Fiji Macedonia, FYR of Guatemala Jordan Romania Russian Federation Iran, Islamic Republic of Algeria Bulgaria Egypt, Arab Republic of Paraguay Suriname
2,110 2,100 2,100 2,090 2,080 2,050 2,010 1,990 1,970 1,830 1,710 1,690 1,680 1,670 1,660 1,630 1,590 1,510 1,490 1,450 n.a.
Per capita income $755–$1,445 Swaziland Ecuador Kazakhstan Morocco Philippines Syrian Arab Republicd China Turkmenistan Papua New Guinea Equatorial Guinea Iraqd
1,290 1,210 1,190 1,180 1,040 990 840 840 760 n.a. n.a.
Per capita income less than $755 Ukraine
700
Countries eligible for a blend of IBRD and IDA fundsb Per capita income $2,996–$5,225 St. Luciac Grenadac Dominicac
4,070 3,520 3,260
Per capita income $1,446–$2,995 St. Vincent and the Grenadines c
2,690
Per capita income $755–$1,445 Bolivia Bosnia and Herzegovina Yugoslavia, Federal Republic of d
1,000 n.a. n.a.
(continued next page)
About the World Bank
139
Table 8.1 Country Eligibility for Borrowing from the World Bank (continued)
Income group and country
2000 GNI per capita a
Income group and country
2000 GNI per capita
Countries eligible for a blend of IBRD and IDA fundsb (continued) Per capita income less than $755 Uzbekistan Azerbaijan Indonesia
630 610 570
Zimbabwed Pakistan India Nigeria
480 470 460 260
Kenya Ghana Gambia, The Sudand Uganda Togo Zambia Central African Republic Lao PDR São Tomé and Principe Tanzania Kyrgyz Republic Cambodia Madagascar Angola Mali Burkina Faso Rwanda Nepal Mozambique Chad Guinea-Bissau Niger Eritrea Malawi Tajikistan Sierra Leone Burundi Ethiopia Afghanistand Congo, Democratic Republic of d Liberiad Myanmard Nicaragua Somaliad
360 350 330 320 310 300 300 290 290 290 280 270 260 260 240 240 230 230 220 210 200 180 180 170 170 170 130 110 100 n.a. n.a. n.a. n.a. n.a. n.a.
Countries eligible for IDA funds only b Per capita income $1,446–$2,995 Tongac Maldivesc Samoac
1,660 1,460 1,460
Per capita income $755–$1,445 Cape Verdec Vanuatuc Kiribatic Sri Lanka Honduras Djibouti Guyana Albania
1,330 1,140 950 860 850 840 770 n.a.
Per capita income less than $755 Côte d’Ivoired Congo, Republic of d Solomon Islands Georgia Cameroon Bhutan Lesotho Armenia Haiti Senegal Guinea Moldova Mongolia Vietnam Bangladesh Benin Comoros Yemen, Republic of Mauritania
660 630 630 590 570 550 540 520 510 500 450 400 390 390 380 380 380 380 370
n.a. Precise figures not available. a. World Bank Atlas methodology; per capita GNI (gross national income, formerly GNP) figures are in 2000 U.S. dollars. b. Countries are eligible for IDA on the basis of (a) relative poverty and (b) lack of creditworthiness. The operational cutoff for IDA eligibility for fiscal 2002 is a 2000 GNI per capita of $885, using Atlas methodology. To receive IDA resources, countries also meet tests of performance. In exceptional circumstances, IDA extends eligibility temporarily to countries that are above the operational cutoff and are undertaking major adjustment efforts but are not creditworthy for IBRD lending. An exception has been made for small island economies (see footnote c). c. During the IDA-12 period (fiscal 2000–02), an exception to the GNI per capita operational cutoff for IDA eligibility ($885 for fiscal 2002) has been made for some small island economies, which otherwise would have little or no access to Bank Group assistance because they lack creditworthiness. For such countries, IDA funding is considered case by case for the financing of projects and adjustment programs designed to strengthen creditworthiness. d. Loans/credits in nonaccrual status as of July 1, 2001.
140
The World Bank Annual Report 2001
Tables
Table 8.2 World Bank Commitments, Disbursements, and Net Transfers in Africa, Fiscal 1996–2001 (millions of dollars) Ethiopia Item
IBRD and IDA commitments Undisbursed balance Gross disbursements Repaymentsb Net disbursements Interest and charges Net transfer
Uganda
Senegal
Total region
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
667 835 270 22 249 13 236
1,592 835 789 105 683 71 612
358 527 167 16 151 15 136
1,022 527 969 240 729 85 645
255 541 116 20 96 10 86
847 541 499 101 398 61 336
3,370 7,900 2,290 1,042 1,249 410 839
14,903 7,900 14,505 6,852 7,653 3,394 4,259
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996. b. During fiscal 2001, the Bank delivered approximately $132 million in debt service relief under the enhanced HIPC Initiative to 19 countries in the Africa Region, including $11.9 million to Senegal and $9.7 million to Uganda.
Table 8.3 World Bank Commitments, Disbursements, and Net Transfers in East Asia and Pacific, Fiscal 1996–2001 (millions of dollars) China Item
IBRD and IDA commitments Undisbursed balance Gross disbursements Repayments Net disbursements Interest and charges Net transfer
Vietnam
Indonesia
Total region
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
788 10,041 1,820 716 1,105 815 289
12,958 10,041 12,115 2,940 9,175 3,910 5,264
629 1,419 160 2 158 8 150
2,470 1,419 1,042 7 1,035 29 1,006
493 2,807 684 812 -128 949 -1,077
5,977 2,807 6,347 5,831 517 5,022 -4,505
2,134 17,367 3,330 2,336 994 2,828 -1,834
34,787 17,367 32,573 15,031 17,542 14,191 3,351
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996.
About the World Bank
141
Tables
Table 8.4 World Bank Commitments, Disbursements, and Net Transfers in South Asia, Fiscal 1996–2001 (millions of dollars) India
Bangladesh
Item
2001
1996–2001a
2001
1996–2001a
IBRD and IDA commitments Undisbursed balance Gross disbursements Repayments Net disbursements Interest and charges Net transfer
2,555 8,046 1,644 1,109 535 539 -4
11,160 8,046 9,027 7,133 1,894 4,237 -2,342
280 1,497 298 95 204 49 155
2,675 1,497 1,994 417 1,577 280 1,297
Pakistan 2001
374 984 647 290 357 200 157
Total region
1996–2001a
2001
1996–2001a
2,167 984 3,408 1,604 1,804 1,324 481
3,247 11,070 2,691 1,538 1,153 809 344
16,726 11,070 15,253 9,342 5,911 5,977 -66
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996.
Table 8.5 World Bank Commitments, Disbursements, and Net Transfers in Europe and Central Asia, Fiscal 1996–2001 (millions of dollars) Turkey
Russian Federation
Bulgaria
Total region
Item
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
IBRD and IDA commitments Undisbursed balance Gross disbursements Repayments Net disbursements Interest and charges Net transfer
1,028 2,418 820 455 365 257 108
4,260 2,418 3,225 4,010 -785 1,659 -2,444
398 3,261 455 307 148 425 -277
7,578 3,261 6,955 633 6,323 1,643 4,680
102 239 47 29 18 51 -32
815 239 668 114 555 229 326
2,693 10,926 2,710 1,360 1,350 1,354 -4
25,646 10,926 22,341 9,312 13,029 7,172 5,857
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996.
142
The World Bank Annual Report 2001
Tables
Table 8.6 World Bank Commitments, Disbursements, and Net Transfers in Latin America and the Caribbean, Fiscal 1996–2001 (millions of dollars) Mexico
Brazil
Colombia
Total region
Item
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
2001
1996–2001a
IBRD and IDA commitments Undisbursed balance Gross disbursements Repayments Net disbursements Interest and charges Net transfer
1,982 2,456 1,433 1,309 124 889 -765
6,880 2,456 7,517 8,026 -509 5,179 -5,688
1,677 3,123 1,723 827 897 505 391
7,968 3,123 9,228 6,176 3,052 2,605 447
185 480 264 225 39 125 -87
1,908 480 1,490 1,861 -371 829 -1,200
5,300 12,384 5,466 3,856 1,610 2,907 -1,297
31,410 12,384 32,823 24,474 8,349 15,055 -6,706
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996.
Table 8.7 World Bank Commitments, Disbursements, and Net Transfers in Middle East and North Africa, Fiscal 1996–2001 (millions of dollars) Yemen, Republic of
Tunisia
Item
2001
1996–2001a
2001
IBRD and IDA commitments Undisbursed balance Gross disbursements Repayments Net disbursements Interest and charges Net transfer
142 368 81 16 65 9 56
830 368 619 68 551 45 506
76 516 175 146 28 77 -48
Iran, Islamic Republic of
1996–2001a 2001
1,034 516 1,008 1,040 -32 585 -617
0 232 103 70 33 43 -10
Total region
1996–2001a
2001
232 232 559 269 289 183 106
508 3,511 789 837 -48 610 -657
1996–2001a
6,506 3,511 6,612 6,300 312 3,939 -3,627
Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000–01). a. Disbursements from the IDA Special Fund are included in fiscal 1996.
About the World Bank
143
Tables
Table 8.8 Operations Approved during Fiscal 2001, Africa
Date of approval
Maturities
Africa Regional Trade Facilitation Project
April 3, 2001
2011/2036
3.9
5.0
Benin Public Expenditure Reform Adjustment Credit
March 22, 2001
2011/2041
7.8
10.0
Burkina Faso Ouagadougou Water Supply Project Community-Based Rural Development Project
March 21, 2001 November 30, 2000
2011/2040 2011/2040
55.0 50.5
70.0 66.7
Burundi Regional Trade Facilitation Project Public Works and Employment Creation Project
April 3, 2001 January 23, 2001
2011/2041 2011/2040
5.8 31.3
7.5 40.0
Cameroon Structural Adjustment Credit III-IDA Reflows Multi-sectoral HIV/AIDS Project
June 15, 2001 January 12, 2001
2008/2038 2011/2040
6.2 39.2
7.8 50.0
Cape Verde Supplemental Credit for Transport and Infrastructure Project
January 30, 2001
2003/2033
4.0
5.0
Chad National Transport Program Support Project
October 26, 2000
2011/2040
50.8
67.0
Comoros Infrastructure, Water and Environment Project
March 1, 2001
2011/2040
8.8
11.4
Eritrea HIV/AIDS, Malaria, Sexually Transmitted Diseases and Tuberculosis Control Project Emergency Reconstruction Credit Integrated Early Childhood Development Project
December 18, 2000 November 22, 2000 July 27, 2000
2011/2040 2011/2040 2010/2040
31.4 69.3 29.0
40.0 90.0 40.0
June 14, 2001 June 5, 2001 April 17, 2001
2011/2041 2011/2041 2011/2040
34.7 116.6 3.9
44.0 150.0 4.9
February 13, 2001 December 5, 2000
2011/2041 2011/2040
2.0 180.2
2.6 230.0
December 5, 2000 September 12, 2000 July 27, 2000
2011/2040 2011/2040 2010/2040
133.7 45.2 3.8
170.6 59.7 5.0
January 16, 2001
2011/2040
11.8
15.0
December 28, 2000
2011/2040
19.6
25.0
September 7, 2000
2011/2040
37.0
49.0
August 1, 2000
2010/2040
50.9
67.0
Ethiopia Supplemental Credit for National Fertilizer Sector Project Economic Rehabilitation Support Credit Distance Learning Project Conservation and Sustainable Use of Medicinal Plants Project Emergency Recovery Project Emergency Demobilization and Reintegration Project Multi-Sectoral HIV/AIDS Project Women Development Initiatives Project Gambia, The HIV/AIDS Rapid Response Project Ghana AIDS Response Project (GARFUND) Supplemental Credit for Economic Reform Support Operation II Program Agricultural Services Subsector Investment Project
144
Principal amount (millions) SDR US$
Country/project name
The World Bank Annual Report 2001
Country/project name Kenya Regional Trade Facilitation Project Supplemental Credit for Economic and Public Sector Reform Decentralized Reproductive Health and HIV/AIDS Project Emergency Power Supply Project AIDS Disaster Response Project Economic and Public Sector Reform Credit Lesotho Utilities Sector Reform Project Madagascar Rural Development Support Project Community Development Project Supplemental Credit for Structural Adjustment II Supplemental Credit for Structural Adjustment III Supplemental Credit for Social Fund III Project for Cyclone Rehabilitation Activities
Principal amount (millions) SDR US$
Date of approval
Maturities
April 3, 2001
2011/2041
19.4
25.0
January 24, 2001
2010/2040
2.5
3.2
December 12, 2000 October 26, 2000 September 12, 2000 August 1, 2000
2011/2040 2011/2040 2011/2040 2010/2040
38.3 55.1 37.9 113.1
50.0 72.0 50.0 150.0
March 29, 2001
2011/2040
22.2
28.6
June 19, 2001 April 19, 2001
2011/2041 2011/2040
69.2 85.2
89.0 110.0
December 22, 2000
2011/2040
23.5
30.4
July 20, 2000
2009/2039
15.2
20.1
July 20, 2000
2010/2040
13.7
18.1
April 3, 2001
2011/2041
11.6
15.0
December 22, 2000
2011/2040
0.4
0.5
Malawi Regional Trade Facilitation Project Fiscal Restructuring and Deregulation Program Credit III - IDA Reflow Fiscal Restructuring and Deregulation Program Technical Assistance III Project Fiscal Restructuring and Deregulation Program Credit III
December 21, 2000
2011/2040
2.4
3.0
December 21, 2000
2011/2040
43.1
55.1
Mali Supplemental Credit for Economic Management Education Sector Expenditure Program
December 22, 2000 December 20, 2000
2011/2040 2011/2040
19.6 35.3
25.4 45.0
Mauritania Supplemental Credit for Fiscal Reform Support Operation
December 22, 2000
2010/2039
14.1
18.3
Mozambique Mineral Resources Management Capacity Building Project
March 29, 2001
2011/2040
13.8
18.0
Niger Water Sector Project Supplemental Credit for Public Finance Recovery Adjustment Public Finance Adjustment Recovery Credit
May 3, 2001
2011/2040
37.3
48.0
December 22, 2000 September 14, 2000
2011/2040 2011/2040
9.4 26.5
12.2 35.0
Nigeria Privatization Support Project Community Based Poverty Reduction Project
June 14, 2001 December 20, 2000
2011/2036 2011/2035
90.2 47.0
114.3 60.0
(continued next page)
About the World Bank
145
Table 8.8 Operations Approved During Fiscal 2001, Africa (continued)
Date of approval
Maturities
Rwanda Competitiveness and Enterprise Development Project Regional Trade Facilitation Project Rural Sector Support Project Supplemental Credit for Economic Recovery Supplemental Credit for Health and Population Project
April 19, 2001 April 3, 2001 March 29, 2001 December 22, 2000
2011/2041 2011/2041 2011/2040 2009/2038
31.8 5.8 37.2 11.8
40.8 7.5 48.0 15.3
December 21, 2000
2011/2040
5.5
7.0
SĂŁo TomĂŠ and Principe Public Resource Management Credit Public Resource Management Technical Assistance II Project
November 2, 2000
2011/2040
5.8
7.5
November 2, 2000
2011/2040
2.0
2.5
Senegal Long Term Water Sector Project Social Development Fund Program Trade Reform and Competitiveness Credit
March 6, 2001 December 20, 2000 September 14, 2000
2011/2041 2011/2040 2011/2040
98.0 23.6 75.7
125.0 30.0 100.0
February 15, 2001
2011/2040
2.7
3.5
December 14, 2000
2010/2040
7.9
10.0
April 3, 2001
2011/2041
11.6
15.0
January 29, 2001 August 22, 2000
2010/2040 2010/2040
0.6 45.5
0.8 60.0
May 31, 2001 April 3, 2001
2011/2041 2011/2041
116.2 15.5
150.0 20.0
March 20, 2001 February 15, 2001 January 18, 2001
2011/2041 2011/2040 2011/2040
17.1 35.3 37.3
22.0 45.0 47.5
December 22, 2000 August 24, 2000
2007/2037 2010/2040
19.6 36.2
25.4 48.5
Western Africa BCEAO Regional Payment Systems Project
October 19, 2000
2011/2040
7.2
9.4
Zambia Technical Education Vocational and Entrepreneurship Training Development Program Support Project Regional Trade Facilitation Project Supplemental Credit for Fiscal Sustainability Supplemental Credit for Fiscal Sustainability Railways Restructuring Project
June 14, 2001 April 3, 2001 December 22, 2000 November 20, 2000 November 16, 2000
2011/2041 2011/2041 2010/2040 2010/2040 2011/2040
19.5 11.6 23.5 1.6 21.0
25.0 15.0 30.4 2.1 27.0
2,605.5
3,369.6
Sierra Leone Public Sector Management Support II Project Supplemental Credit for Economic Rehabilitation and Recovery Tanzania Regional Trade Facilitation Project Programmatic Structural Adjustment I IDA-Reflow Social Action Fund Project Uganda Poverty Reduction Support Credit Regional Trade Facilitation Project Environmental Management and Capacity Building II Project National Agricultural Advisory Services Project HIV/AIDS Control Project Supplemental Credit for Structural Adjustment III Privatization and Utility Sector Reform Project
Total
146
Principal amount (millions) SDR US$
Country/project name
The World Bank Annual Report 2001
Tables
Table 8.9 Operations Approved during Fiscal 2001, East Asia and Pacific
Principal amount (millions) SDR US$
Country/project name
Date of approval
Maturities
Cambodia Supplemental Credit for Flood Rehabilitation Social Fund II Project Flood Emergency Rehabilitation Project
June 19, 2001 March 13, 2001
2011/2041 2011/2040
7.9 27.1
10.0 35.0
June 21, 2001 June 19, 2001 June 5, 2001 March 27, 2001 March 22, 2001 December 19, 2000 December 19, 2000
2007/2021 2007/2021 2007/2021 2006/2021 2006/2021 2006/2021 2006/2021
n.a. n.a. n.a. n.a. n.a. n.a. n.a.
100.0 100.0 200.0 100.0 105.5 74.0 100.0
August 1, 2000
2005/2020
n.a.
8.0
June 26, 2001 June 26, 2001 June 26, 2001 June 26, 2001 June 12, 2001 June 12, 2001 June 8, 2001
2006/2021 2011/2036 2006/2021 2011/2036 2011/2036 2006/2021 2011/2036
n.a. 31.4 n.a. 87.5 4.6 n.a. 3.3
63.2 40.0 208.9 111.3 5.8 11.7 4.1
December 21, 2000
2011/2035
37.8
48.2
Lao People's Democratic Republic Agricultural Development Project Road Maintenance Project
May 29, 2001 March 27, 2001
2011/2041 2011/2041
13.2 19.2
16.7 25.0
Mongolia Energy Project Transport Development Project
May 3, 2001 March 22, 2001
2011/2041 2011/2040
23.4 26.4
30.0 34.0
Philippines Metro Manila Urban Transport Integration Project Land Administration and Management Project
June 21, 2001 September 26, 2000
2009/2021 2009/2020
n.a. n.a.
60.0 4.8
Samoa Health Sector Management Project
September 14, 2000
2010/2040
3.8
5.0
June 29, 2001
2011/2041
2.7
3.5
June 26, 2001 June 5, 2001
2011/2041 2011/2041
81.9 197.2
102.8 250.0
March 20, 2001 December 20, 2000
2011/2041 2011/2040
127.5 86.2
166.3 110.0
781.1
2,133.8
China Inland Waterways III Project Liao River Basin Project Jiangxi Highway II Project Shijiazhuang Urban Transport Project Huai River Pollution Control Project Water Conservation Project Urumqi Urban Transport Improvement Project Supplemental Loan for Financial Sector Technical Assistance Project Indonesia Provincial Health II Project a Provincial Health II Project a Kecamatan Development II Project a Kecamatan Development II Project a Western Java Environmental Management Project a Western Java Environmental Management Project a Library Development Project Supplemental Credit for Kecamatan Development Project
Vanuatu
Education II Project Vietnam Community-Based Rural Infrastructure Project Poverty Reduction Support Credit Ho Chi Minh City Environmental Sanitation (Nhieu Loc-Thi Nghe Basin) Project Mekong Transport and Flood Protection Project Total
n.a. Not applicable (IBRD loan). Note: This table does not include operations funded by special financing of $21.6 million provided by the Trust Fund for East Timor. a. “Blend� loan/credit.
About the World Bank
147
Tables
Table 8.10 Operations Approved during Fiscal 2001, South Asia
Country/project name Bangladesh Legal and Judicial Capacity Building Project Post-Literacy and Continuing Education for Human Development Project Poverty Alleviation Microfinance II Project HIV/AIDS Prevention Project Air Quality Management Project India Rajasthan Second District Primary Education Project Karnataka Watershed Development Project Karnataka Economic Restructuring Loan/Credita Karnataka Economic Restructuring Loan/Credita Grand Trunk Road Improvement Project Karnataka State Highways Improvement Project Powergrid System Development II Project National Leprosy Elimination II Project Rajasthan Power Sector Restructuring Project Madhya Pradesh District Poverty Initiatives Project Kerala Rural Water Supply and Environmental Sanitation Project Technician Education III Project Gujarat State Highway Project
Maturities
March 29, 2001
2011/2041
23.6
30.6
February 27, 2001 January 18, 2001 December 12, 2000 July 25, 2000
2011/2041 2011/2041 2011/2040 2011/2040
41.8 118.3 30.8 3.6
53.3 151.0 40.0 4.7
June 21, 2001 June 21, 2001
2011/2036 2011/2036
58.5 79.0
74.4 100.4
June 21, 2001
2007/2021
n.a.
75.0
June 21, 2001 June 21, 2001
2011/2036 2007/2021
58.9 n.a.
75.0 589.0
May 24, 2001 May 3, 2001 March 27, 2001 January 18, 2001
2007/2021 2006/2021 2011/2036 2006/2021
n.a. n.a. 23.3 n.a.
360.0 450.0 30.0 180.0
November 7, 2000
2011/2035
84.2
110.1
November 7, 2000 September 7, 2000 September 5, 2000
2011/2035 2011/2035 2006/2020
50.1 48.9 n.a.
65.5 64.9 381.0
Pakistan Structural Adjustment Credit North West Frontier Province On-Farm Water Management Project A Trade and Transport Facilitation Project
June 12, 2001
2011/2036
276.1
350.0
June 12, 2001 April 24, 2001
2011/2035 2011/2036
16.6 2.3
21.3 3.0
Sri Lanka Central Bank Strengthening Project Land Titling and Related Services Project Distance Learning Project
June 19, 2001 March 27, 2001 March 5, 2001
2011/2041 2011/2040 2011/2040
23.9 3.9 1.6
30.3 5.0 2.0
945.4
3,246.5
Total
n.a. Not applicable (IBRD loan). a. “Blend� loan/credit.
148
Principal amount (millions) SDR US$
Date of approval
The World Bank Annual Report 2001
Tables
Table 8.11 Operations Approved during Fiscal 2001, Europe and Central Asia
Country/project name
Principal amount (millions) SDR US$
Date of approval
Maturities
June 14, 2001 June 7, 2001
2011/2041 2011/2041
7.8 7.9
9.9 10.0
November 2, 2000
2010/2040
6.2
8.1
Armenia Structural Adjustment Credit IV Judicial Reform Project
May 22, 2001 September 14, 2000
2011/2040 2010/2040
38.4 8.6
50.0 11.4
Azerbaijan Highway Project Health Reform Project Financial Sector Technical Assistance
June 12, 2001 June 12, 2001 June 12, 2001
2011/2036 2011/2036 2011/2036
31.5 4.0 4.3
40.0 5.0 5.4
Belarus Social Infrastructure Retrofitting Project
June 5, 2001
*/2018
n.a.
22.6
Albania Agricultural Services Project Social Services Delivery Project Trade and Transport Facilitation in Southeast Europe Project
Bosnia and Herzegovina Privatization Technical Assistance Project Local Initiatives Microfinance II Project Electric Power Reconstruction III Project Community Development Project Trade and Transport Facilitation in Southeast Europe Project Social Sector Adjustment Credit Social Sector Technical Assistance Credit
June 26, 2001 June 26, 2001 June 26, 2001 June 26, 2001
2011/2036 2011/2036 2011/2036 2011/2036
15.6 15.8 26.4 11.8
19.8 20.0 35.0 15.0
February 22, 2001 February 15, 2001 December 7, 2000
2011/2035 2011/2035 2011/2035
8.7 15.3 2.8
11.0 20.0 3.5
Bulgaria Agriculture Sector Adjustment Loan II Registration and Cadastre Project Child Welfare Reform Project Education Modernization Project
June 28, 2001 June 21, 2001 March 6, 2001 September 5, 2000
2006/2021 2006/2021 2006/2021 2005/2020
n.a. n.a. n.a. n.a.
50.0 30.0 8.0 14.4
June 15, 2001
2006/2016
n.a.
5.0
October 26, 2000
2006/2015
n.a.
13.9
June 28, 2001 May 3, 2001
2011/2041 2011/2040
21.3 21.1
27.0 27.4
March 20, 2001 March 13, 2001
2011/2040 2011/2040
19.9 7.6
25.9 9.6
Kazakhstan Syr Darya Control and Northern Aral Sea Phase I Project
June 5, 2001
2007/2021
n.a.
64.5
Kyrgyz Republic Health Sector Reform II Project Consolidation Structural Adjustment Credit Urban Transport Project
May 8, 2001 September 14, 2000 August 22, 2000
2011/2041 2010/2040 2010/2040
11.7 26.1 16.7
15.0 35.0 22.0
Croatia Court and Bankruptcy Administration Project Trade and Transport Facilitation in Southeast Europe Project Georgia Irrigation and Drainage Community Development Project Electricity Market Support Project Education System Realignment Strengthening Program Energy Transit Institution Building Project
About the World Bank
149
Table 8.11 Operations Approved During Fiscal 2001, Europe and Central Asia (continued)
Principal amount (millions) SDR US$
Country/project name
Date of approval
Maturities
Latvia Liepaja Region Solid Waste Management Project Riga District Heating Rehabilitation Project
September 14, 2000 August 1, 2000
2005/2017 2005/2017
n.a. n.a.
2.2 36.2
Lithuania Structural Adjustment Loan II
July 25, 2000
2011/2011
n.a.
98.5
June 26, 2001 June 26, 2001 June 26, 2001 June 21, 2001
2007/2018 2011/2036 2011/2036 2011/2036
n.a. 10.3 2.0 4.0
16.2 13.1 2.5 5.0
December 14, 2000
2009/2017
n.a.
30.3
December 14, 2000
2010/2035
15.2
20.0
July 25, 2000
2010/2035
7.0
9.3
August 22, 2000
2010/2040
7.6
10.0
June 7, 2001 May 29, 2001
*/* 2006/2016
n.a. n.a.
15.0 101.0
December 12, 2000
2006/2016
n.a.
38.5
Romania Social Sector Development Project Rural Finance Project
June 19, 2001 March 29, 2001
2005/2018 2006/2018
n.a. n.a.
50.0 80.0
Russian Federation Northern Restructuring Project Education Reform Project Municipal Heating Project Moscow Urban Transport Project Municipal Water and Wastewater Project
June 7, 2001 May 24, 2001 March 27, 2001 February 6, 2001 December 21, 2000
2007/2018 2006/2018 2006/2018 2006/2017 2006/2017
n.a. n.a. n.a. n.a. n.a.
80.0 50.0 85.0 60.0 122.5
Macedonia, former Yugoslav Republic of Water Utility Improvement Project a Water Utility Improvement Project a Child and Youth Development Project Community Development and Culture Project Financial and Enterprise Sector Adjustment Loan/Credit II a Financial and Enterprise Sector Adjustment Loan/Credit II a Trade and Transport Facilitation in Southeast Europe Project Moldova Health Investment Fund Project Poland Krakow Energy Efficiency Project Railway Restructuring Project Szczecin-Swinoujscie Seaway and Port Modernization Project
Tajikistan Structural Adjustment Credit II Supplemental Credit for Farm Privatization Support Project
June 26, 2001
2011/2041
39.4
50.0
February 22, 2001
2009/2039
2.4
3.1
Turkey Financial Sector Adjustment Loan Privatization Social Support Project
December 21, 2000 December 21, 2000
2006/2017 2006/2017
n.a. n.a.
777.8 250.0
Ukraine Lviv Water and Wastewater Project Sevastopol Heat Supply Improvement Project
June 5, 2001 March 22, 2001
2006/2021 2006/2021
n.a. n.a.
24.3 28.2
417.4
2,693.1
Total
n.a. Not applicable (IBRD loan). * Not available. Note: This table does not include operations funded by special financing of $35.1 million provided by the Trust Fund for Kosovo, and $12 million provided by the Trust Fund for the Federal Republic of Yugoslavia. a. “Blend� loan/credit.
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The World Bank Annual Report 2001
Tables
Table 8.12 Operations Approved during Fiscal 2001, Latin America and the Caribbean Principal amount (millions) SDR US$
Country/project name
Date of approval
Maturities
Argentina Buenos Aires Secondary Education II Project Córdoba Provincial Reform Loan Sustainable Fisheries Management Project Indigenous Community Development Provincial Reform Adjustment Loan - Catamarca
December 7, 2000 November 22, 2000 September 18, 2000 September 18, 2000 September 14, 2000
2006/2015 2006/2015 2005/2015 2005/2015 2006/2015
n.a. n.a. n.a. n.a. n.a.
57.0 303.0 5.0 5.0 70.7
Barbados Multi-Country HIV/AIDS Prevention and Control Program
June 28, 2001
*/2017
n.a.
15.1
Belize Supplemental Loan for Social Investment Fund Roads and Municipal Drainage Project
April 3, 2001 September 5, 2000
2006/2018 2006/2017
n.a. n.a.
1.4 13.0
June 28, 2001
2011/2041
27.6
35.0
May 22, 2001 February 14, 2001
2011/2041 2011/2040
46.7 4.0
60.0 5.0
June 26, 2001 June 26, 2001 June 26, 2001 June 26, 2001 May 24, 2001
2007/2016 2007/2016 2007/2016 2006/2016 2006/2013
n.a. n.a. n.a. n.a. n.a.
22.5 30.1 37.5 54.3 404.0
May 24, 2001
2007/2016
n.a.
8.9
January 18, 2001 December 20, 2000 December 20, 2000 November 30, 2000
2006/2013 2006/2016 2006/2016 */2014
n.a. n.a. n.a. n.a.
757.6 90.0 69.6 202.1
Colombia Human Capital Protection Project Public Financial Management II Project
March 29, 2001 March 22, 2001
2006/2018 2006/2018
n.a. n.a.
150.0 35.5
Dominican Republic Multi-Country HIV/AIDS Prevention and Control Program Distance Learning Project
June 28, 2001 September 22, 2000
2006/2018 2006/2017
n.a. n.a.
25.0 3.4
Ecuador Rural and Small Towns Water Supply and Sanitation Project (PRAGUAS)
October 17, 2000
2008/2020
n.a.
32.0
October 17, 2000
2006/2015
n.a.
5.1
October 17, 2000
2011/2035
3.8
5.0
Bolivia Health Sector Reform Project Programmatic Structural Adjustment Credit for Decentralization Indigenous Peoples Development Project Brazil Rural Poverty Reduction Project - Piauí Rural Poverty Reduction Project - Pernambuco Rural Poverty Reduction Project - Ceará Rural Poverty Reduction Project - Bahia Programmatic Financial Sector Adjustment Loan I Fiscal and Financial Management Technical Assistance Loan Programmatic Fiscal Reform Structural Adjustment Loan Ceará Basic Education Quality Improvement Project Bahia Education Land-Based Poverty Alleviation I Project
Grenada Emergency Recovery and Disaster Management Projecta Emergency Recovery and Disaster Management Projecta
(continued next page)
About the World Bank
151
Table 8.12 Operations Approved During Fiscal 2001, Latin America and the Caribbean (continued)
Date of approval
Maturities
Guatemala Universalization of Basic Education Project Competitiveness Project
May 22, 2001 December 14, 2000
2006/2018 2006/2017
n.a. n.a.
62.2 20.3
Honduras Supplemental Credit for Interactive Environmental Learning and Science Promotion Project - PROFUTURO Public Sector Modernization Structural Adjustment Credit IV - IDA Reflow Community-Based Education Project Social Investment Fund V Project Access to Land Pilot Project (PACTA) Road Reconstruction and Improvement Project Economic and Financial Management Project
May 31, 2001
2011/2041
3.2
4.0
May 9, 2001 April 10, 2001 December 14, 2000 November 28, 2000 November 7, 2000 September 12, 2000
2006/2035 2011/2041 2011/2040 2011/2040 2011/2040 2010/2040
5.6 32.3 47.1 6.2 51.2 14.4
7.2 41.5 60.0 8.0 66.5 19.0
Jamaica Bank Reconstructing and Debt Management Program Adjustment Loan
November 30, 2000
2006/2017
n.a.
75.0
Mexico Basic Health Care III Project Bank Restructuring Facility Loan II Federal Highways Maintenance Project Estado de Mexico Structural Adjustment Loan Natural Disaster Management Project
June 21, 2001 June 21, 2001 December 14, 2000 December 14, 2000 December 7, 2000
*/2014 2011/2011 2006/2015 */2016 2006/2015
n.a. n.a. n.a. n.a. n.a.
350.0 505.1 218.0 505.1 404.0
Nicaragua Poverty Reduction and Local Development Project Natural Disaster Vulnerability Reduction Project Rural Municipal Development II Project Road Rehabilitation and Maintenance III Project Competitiveness Project
May 3, 2001 April 3, 2001 March 27, 2001 February 15, 2001 January 19, 2001
2011/2041 2011/2041 2011/2041 2011/2041 2011/2040
46.7 10.5 22.0 58.8 4.0
60.0 13.5 28.7 75.0 5.0
Panama Land Administration Project Basic Education II Project
January 16, 2001 September 7, 2000
2006/2015 2005/2015
n.a. n.a.
47.9 35.0
Peru Rural Roads II Project Programmatic Social Reform Loan
June 19, 2001 June 19, 2001
2007/2018 2007/2018
n.a. n.a.
50.0 100.0
Uruguay Public Services Modernization Technical Assistance Project
March 22, 2001
2006/2016
n.a.
6.0
Venezuela, República Bolivariana de Caracas Metropolitan Health Services Project
June 26, 2001
2011/2011
n.a.
30.3
384.1
5,300.1
Total
n.a. Not applicable (IBRD loan). * Not available. a. “Blend” loan/credit.
152
Principal amount (millions) SDR US$
Country/project name
The World Bank Annual Report 2001
Tables
Table 8.13 Operations Approved during Fiscal 2001, Middle East and North Africa Principal amount (millions) SDR US$
Country/project name
Date of approval
Maturities
Algeria Energy and Mining Technical Assistance Loan Budget Systems Modernization Project
February 27, 2001 February 6, 2001
*/2017 */2016
n.a. n.a.
18.0 23.7
Djibouti School Access and Improvement Program
December 19, 2000
2011/2040
7.8
10.0
Jordan Public Sector Reform Loan I
June 21, 2001
2006/2018
n.a.
120.0
Lebanon Community Development Project
June 26, 2001
2001/2015
n.a
20.0
Morocco Information Infrastructure Sector Development Loan May 31, 2001 Irrigation-Based Community Development Project May 31, 2001
2009/2021 2007/2021
n.a. n.a.
65.0 32.6
Tunisia Agricultural Support Services Project Cultural Heritage Project Transport Sector Investment Project
June 26, 2001 June 12, 2001 April 19, 2001
2001/2018 2008/2018 2001/2017
n.a. n.a. n.a.
21.3 17.0 37.6
Yemen, Republic of Rural Access Program Rural Water Supply and Sanitation Project Basic Education Expansion Project Irrigation Improvement Project
June 7, 2001 December 21, 2000 October 17, 2000 September 7, 2000
2011/2041 2011/2040 2011/2040 2010/2040
35.4 15.7 42.4 16.2
45.0 20.0 56.0 21.3
117.5
507.5
Total
n.a. Not applicable (IBRD loan). * Not available. Note: This table does not include operations funded by special financing of $36.1 million provided by the Trust Fund for Gaza and the West Bank.
About the World Bank
153
Tables
Table 8.14 World Bank Adjustment Operations, Fiscal 2001 (millions of dollars)
Country
Project
World Bank Financing IBRD IDA Total
Poverty Reduction Support Credits Uganda Vietnam
Poverty Reduction Support Credit Poverty Reduction Support Credit
Programmatic Structural Adjustment Loans and Credits Bolivia Decentralization Programmatic Structural Adjustment Credit Brazil Programmatic Fiscal Reform Structural Adjustment Loan Programmatic Financial Sector Adjustment Loan Jamaica Bank Restructuring and Debt Management Loan Peru Programmatic Social Reform Loan
150 250
150 250
60
60
758 404 75 100
758 404 75 100
Sector Adjustment Loans and Credits Argentina Bosnia and Herzegovina Bulgaria Jordan Macedonia, former Yugoslav Republic of Mexico Morocco Turkey
Catamarca Provincial Reform Loan Social Sector Adjustment Credit Second Agriculture Sector Adjustment Loan Public Sector Reform Loan Second Financial and Enterprise Sector Adjustment Loan Second Bank Restructuring Facility Adjustment Loan Information Infrastructure Sector Development Loan Financial Sector Adjustment Loan
71 20 50 120
30
20
71 20 50 120
50
505
505
65 778
65 778
Structural Adjustment Loans and Credits Argentina Armenia Benin Cameroon Ethiopia Ghana Honduras India Kenya
Kyrgyz Republic Lithuania Madagascar
154
C贸rdoba Provincial Reform Loan Fourth Structural Adjustment Credit Public Expenditure Reform Adjustment Credit Structural Adjustment Credit III (IDA Reflows) Economic Rehabilitation Support Credit Economic Reform Support Operation Supplemental Credit Public Sector Modernization Adjustment Credit (IDA Reflows) Karnataka Economic Restructuring Loan/Credit Economic and Public Sector Reform Credit Economic and Public Sector Reform Supplemental Credit Consolidation Structural Adjustment Credit Second Structural Adjustment Loan Cyclone Emergency Supplemental Credit Oil Supplemental Credit
The World Bank Annual Report 2001
303
75
50 10 8 150
303 50 10 8 150
49
49
7 75 150
7 150 150
3 35
3 35 99 20 30
99 20 30
Country
Project
World Bank Financing IBRD IDA Total
Structural Adjustment Loans and Credits (continued) Malawi
Mali Mauritania Mexico Niger Pakistan Rwanda SĂŁo TomĂŠ and Principe Senegal Sierra Leone Tajikistan Tanzania Uganda Zambia
Third Fiscal Restructuring and Deregulation Credit Third Fiscal Restructuring and Deregulation Credit (IDA Reflows) Oil Shock Supplemental Credit Oil Shock Supplemental Credit Estado de Mexico Structural Adjustment Loan Oil Shock Supplemental Credit Public Finance Recovery Credit Structural Adjustment Credit Oil Shock Supplemental Credit Public Resources Management Credit Trade Reform and Competitiveness Credit Economic Rehabilitation and Recovery Credit Second Structural Adjustment Credit Programmatic Structural Adjustment Credit (IDA Reflows) Oil Shock Supplemental Credit Oil Shock Supplemental Credit Fiscal Sustainability Supplemental Credit
Total
55
55
1 25 18 12 35 350 15 8 100 10 50
1 25 18 505 12 35 350 15 8 100 10 50
1 25 30 2
1 25 30 2
1,826
5,763
505
3,937
Note: Numbers may not add to totals because of rounding.
About the World Bank
155
Index A Accelerating Access Initiative, 103b Adjustment operations, fiscal 2001, 153–154 Afghanistan, 75 Africa, 2, 65–69 Bank support fiscal 2001, 65–66, 67 f, 69t, 141, 144–146 conflict and post-conflict recovery, 68 guarantee facilities for, 55 HIV/AIDS in, 3, 7b, 67 Land and Water Initiative Action Program, 50 legal and judicial reform activities, 62 Multi-Country HIV/AIDS Program, 27b, 47, 103b poverty reduction, 66–67 private sector development, 67 Regional Trade Facilitation Project, 68b World Bank evolving response in, 22, 65 African Capacity Building Foundation, 68 African Development Bank, 66, 102 Africa Virtual University, 105b Agriculture lending, 107–109 Aid Coordination Study, 98b Albania, 81, 83, 107, 120, 122 Algeria, 91, 92, 116, 118 Alternate Executive Directors, World Bank, 132–133 Alternate governors, World Bank, 128–131 Annual Review of Development Effectiveness (ARDE) 2000, 95, 98b Anticorruption programs, 33, 44, 72, 80–81, 96 European Union and, 102 Paraguay, 33 Argentina, 48b, 85, 86b, 120 public sector, 54, 62, 88, 110, 118 Armenia, 82, 118 Asia. See also East Asia and Pacific; Europe and Central Asia (ECA); South Asia economic crisis in, 59, 104 Asian Development Bank (ADB), 71, 73, 102 Azerbaijan, 81, 82, 113, 115, 122 B Banco Comercial do Atlantico (BCA), Cape Verde, 58b Bangladesh, 54–55, 62b, 75–76, 77, 113 output-based aid, 55b public sector, 110, 115, 118, 124 Barbados, 86, 115 Basel Committee on Banking Supervision, 57 Belarus, 112 Belize, 120, 122 Benin, 43, 62, 117 Biodiversity hot-spots, 103 Bolivia, 55, 62, 120 public sector, 54, 87, 115, 118 Bond markets, government, 58 Bosnia and Herzegovina, 82, 112, 113, 120, 122 economic recovery, 34, 102 Interim Poverty Reduction Strategy Paper, 81 private sector development, 117 Brazil, 55, 85, 107, 113 education programs, 86, 110, 111 HIV/AIDS program, 34, 87b public sector, 88, 118 transportation programs, 54 Budget, administrative, 39 Bulgaria, 83, 108, 111, 113 social protection programs, 82, 82 b, 120 Burkina Faso, 117, 125 Burundi, 68, 113, 124 C Cambodia, 70, 117, 120 Cameroon, 43, 115 Canadian International Development Agency, 62b Can Africa Claim the 21st Century?, 65–66 Cancer research, 103b Cape Verde, 58b, 122 Central Bank of Sri Lanka, 57b Central Bank of West African States, 57 Central Europe, 80, 102. See also Europe and Central Asia (ECA) Chad, 43, 54, 122 Chief Executive Office Forum on Forest Industry and Conservation, 50 Child labor, 28, 48b, 103 Chile, 55b, 85 China, 39, 70, 72, 73, 108
Economic Law Reform Project, 72 finance programs, 70, 113 transportation programs, 73, 122 urban development, 51, 124 Cities Alliance, 54, 104 Civil society organizations (CSOs), 104–105 Clean Air Initiative, 104 Climate change programs, 102 Coal India Environmental and Social Mitigation Project, 39 Cofinancing, 20. See also Partnerships Colombia, 55, 85, 86, 88 public sector, 118, 120 Communicable diseases, 28, 31, 47, 102–103 Community-Driven Development (CDD), 51, 51b, 68 Community participation, institutional growth and, 98–99 Comoros, 125 Comprehensive Development Framework (CDF), 2, 29–30, 43, 98b, 101, 102 Conflict and post-conflict recovery, 28–30, 50–51, 68, 77 Conservation International, 103 Consultative Group on International Agricultural Research (CGIAR), 50, 103b, 104 Consultative Group to Assist the Poorest (CGAP), 105b Convention to Combat Desertification, Global Mechanism of, 50 Corn, high-protein, 103b Côte d’Ivoire, 33 Council of Europe Development Bank, 82 b Country Assistance Financial Accountability Assessments, 96 Country Assistance Strategies (CASs), 28–30, 35, 70, 96–97 Board of Executive Directors and, 38 Poverty Reduction Support Credits and, 43 Country eligibility for bor rowing, 139–140 Critical Ecosystems Partnership Fund, 103 Croatia, 80, 119, 122 Cultural heritage preservation, 51, 92 Czech Republic, 62, 80 D Dams, World Commission on, 103 Dams and Development: A New Framework for Decision-Making, 104 Danish International Development Administration, 62b Debt relief. See Heavily Indebted Poor Countries (HIPC) Initiative Developing New Strategies for Understanding Children’s Work and Its Impact Project, 103 Development Assistance Committee (DAC), OECD, 8, 102 “Development Cooperation and Conflict,” 51 Development Economics and Data Group, 98 b Development effectiveness, 28–29, 95–99 adjustment quality lending, 96f community participation projects, 99f country context adaptation, 96–97 IDA country improvements, 97–98 institutional development promotion, 98–99 management implications, 99 partnerships in project supervision, 96 b performance and aid levels, 97 f project performance, 95–96, 95f sector and thematic performance, 98 Strategic Compact and, 34 Development Forum, 105b Development Gateway, 105b for Law and Justice, 60 Disaster response, 77, 78b, 85, 87–88, 104 Distance learning, 60. See also Telecommunications programs Djibouti, 93, 111 Dominica, 87 Dominican Republic, 86, 111, 115 Donors, workshop on CDF evaluation with, 98b E East Asia and Pacific, 70–74 Bank support fiscal 2001, 62, 73 f, 74t, 141, 147 Clean Air Initiative, 73 financial recovery, 70 progress toward goals, 6 public services and governance, 71–72 reducing vulnerability and ensuring poor benefit from growth, 72–73 revitalizing business/restoring investor confidence, 71 East Coast Fever vaccine, 103 b East Timor, 34, 52–53, 70, 72b public sector, 51, 115, 119, 120
Note: b indicates boxes; f indicates figures; and t indicates tables.
Index
157
Economic and sector work (ESW), 18, 19, 28 Economic and Social Commission for Asia and the Pacific, 71 Economic policy lending, 109–110 Ecuador, 85, 125 Education for All (EFA), 47b World Conference on, 46 Education programs, 4–5b, 25, 28, 46–47, 110–112 Egypt, 91, 93b Egyptian Center for Women’s Rights, 93b Electric power lending, 112 El Salvador, 86 Empowerment, Security and Opportunity through Law and Justice Conference, 60 Energy strategy/lending, 54–55, 112 Engendering Development—Through Gender Equality in Rights, Resources, and Voice, 44 Environmental programs, 4–5b, 28, 49–50, 97, 113 partnerships, 104 priorities, 31 Environment Review, 98b Eritrea, 51, 68, 114, 115 Ethiopia, 7b, 34, 108, 115 private sector development, 117 public sector, 68, 109, 111, 120 European Bank for Reconstruction and Development, 102 Europe and Central Asia (ECA), 80–84 Bank support fiscal 2001, 62, 83f, 84t, 142, 149–150 business climate improvements, 82 governance and community involvement projects, 82–83 jobs, vulnerability, and corruption efforts, 80–81 Nongovernmental Organization Working Group, 81 Poverty Reduction Strategy, 81 European Union, 80, 82b, 102, 103b Evaluation, operations. See Development effectiveness Executive Directors, 37–39, 132–33 F Financial Sector Assessment Program, 45, 57 Financial Stability Forum, 34, 57 Financial systems programs, 56–58, 113–114 Fiscal transparency, development effectiveness and, 96 Focusing Resources on Effective School Health (FRESH), 47b Food and Agriculture Organization, U.N., 102 Foreign Investment Advisory Service, 52–53 Forestry Review, 98b FRESH (Focusing Resources on Effective School Health), 47b G Gambia, The, 43, 115 Gender equality, 4–5b, 44, 91–92, 97 Gender Review, 98b Georgia, 82, 108, 111, 112, 117 Interim Poverty Reduction Strategy Paper, 81 post-conflict recovery support, 51 Ghana, 7, 108, 115, 117 Girls' education, 66 Global Alliance for Vaccines and Immunization, 34, 102–103 Global Development Gateway, 28, 34 Global Development Learning Network, 71, 90, 91b, 105b Global Development Network (GDN), 104 Global Environment Facility (GEF), 49, 102, 103 Global Knowledge Partnership, 105b Global programs and partnerships, Board of Executive Directors and, 38–39 Goals. See International Development Goals Governance, 44, 97, 102, 104. See also Public sector Governors, World Bank, 128–31 Grenada, 87, 117 Guatemala, 54, 59, 86, 111, 117 Guinea, 43, 62 Guinea-Bisseau, 43, 68 Guyana, 43, 87 H Health programs, 47, 47b, 98b, 115–116 Heavily Indebted Poor Countries (HIPC) Initiative, 8, 26–27 Board of Executive Directors and, 38 debt relief and, 43–44 economic and sector work products and, 28 EC support of, 102 effects of, 27f HIV/AIDS initiatives in, 103 b Latin America and the Caribbean, 87 partnerships and, 101 poverty goal for 2015, 3
Note: b indicates boxes; f indicates figures; and t indicates tables.
158
The World Bank Annual Report 2001
PSRPs and, 27–28 social spending and, 8f HIV/AIDS, 25, 46, 64 in Africa, 3, 7 in the Caribbean, 86 in Europe and Central Asia, 82 in India, 2 Joint United Nations Programme on (UNAIDS), 67, 101–102 Multi-Country Program for Africa, 27 b, 47, 103b partnership against, 47, 103 b private sector capacity-building programs, 104 in South Asia, 77 United Nations and, 101–102 Honduras, 87–88, 108, 119, 121, 122 debt relief and poverty reduction, 43, 87 education programs, 86, 111 I Immunizations, 102–103 India, 108, 111, 112, 115, 119 Administrative Staff College, 33 Andra Pradesh state, 2, 49 Coal India Environmental and Social Mitigation Project, 39 Country Assistance Evaluation stakeholders, 98b Country Assistance Strategy, 75–76 energy strategy, 54–55 informal sector social protection, 48 b ownership and community empowerment, 76–77 private sector development, 78 transportation programs, 54, 123 water supply and sanitation programs, 125 Indonesia, 70, 111, 115, 121, 124 Clean Air Initiative, 73 Kecamatan Development Project, 72–73 Provincial Health Project, 72 revitalizing business/restoring investor confidence, 71 Infant and child mortality reduction, 4–5 b, 7, 25 Information and knowledge. See Knowledge and information Information for Development Program, 105 b Insolvency assessments, 45, 61 Inter-American Development Bank (IADB), 20, 102 International Advisory Council on Law and Justice, 61–62 International AIDS Economic Network, 103 b International AIDS Vaccine Initiative (IAVI), 103b International Association of Insurance Supervisors, 57 International Bank for Reconstruction and Development (IBRD), 10, 14, 16–17, 18, 139–140. See also World Bank agriculture credits and, 107–109 economic policy credits and, 109–110 financial assets management, 29 International Centre for Settlement of Investment Disputes (ICSID), 15 International Consortium for Cooperation on the Nile, 66, 93 International Development Association (IDA), 10b, 11, 14, 17, 19 agriculture credits and, 107–109 countries eligible for bor rowing, 139–140 current subscriptions and contributions, 35t economic policy credits and, 109–110 improvements in, 97–98 performance trends, 97f International development goals, 2–3, 4–5B, 25, 34, 46 progress toward, 7f, 7 World Bank and, 8 b, 9 International Finance Corporation (IFC), 15, 31, 47, 52–53, 61 South Asia private sector development, 78 International Labour Organisation, 48b, 103 International Monetary Fund (IMF), 34, 45, 57, 67 collaboration with, 65, 101 International Organization of Securities Commissions, 57 Investment support, 52–53, 90, 91–92 Iran, Islamic Republic of, 91 Issues of “Governance” in Bor rowing Members–The Extent of Their Relevance Under the Bank's Articles of Agreement (Shihata), 61b J Jamaica, 114 Japan, 73, 77 Japan Bank for International Cooperation cofinancing projects, 20 Joint European Commission (EC)–World Bank Office for South East Europe, 102 Jordan, 92, 119 “Judicial Reform: Improving Performance and Accountability,“ 60 Judicial systems. See Legal and judicial systems
K Kazakhstan, 108 Kenya, 114, 116, 119 Knowledge and information, 31, 58, 72b, 98b, 104 Köhler, Horst, 2, 65 Korea, Republic of, 71, 72 b Kosovo, 112, 114, 119, 123, 125 reconstruction of, 102 social protection programs, 121–122 Kreditanstalt Fur Wiederaufbau cofinancing projects, 20 Kuwait, 91 Kyrgyz Republic, 81, 109, 116, 123 L Lao People’s Democratic Republic, 70, 108, 123 Latin America and Caribbean (LAC), 85–89 Bank support fiscal 2001, 18, 88f, 89t, 143, 151–152 cofinancing in, 20 Core Principles for Systemically Important Payments Systems, 58 debt relief, 85 disaster reconstruction, 85, 87–88 human development, 85, 86–87 macroeconomic improvements, 85 private sector partnerships, 104 progress toward Goals, 7 public sector reform, 85, 88 Western Hemisphere Clearance and Settlement Initiative, 57 Latvia, 112, 113 Law and justice programs, 28 Lebanon, 121 Legal and judicial systems, 59–62 knowledge base, 60–62 law and justice support, 59–60 lending, 62 reform activities, 60f Legal Reform, Global Conference on Comprehensive, 60 Lesotho, 117 Lithuania, 109 M Macedonia, former Yugoslav Republic of, 114, 117, 123, 125 Community-Driven Development, 83 Interim Poverty Reduction Strategy Paper, 81 social protection programs, 82, 121 Madagascar, 43, 108, 109, 122 Malaria, 68b, 102, 103b Malawi, 43, 109–110, 114 Mali, 43, 111, 117 Malnutrition, 50, 103b MAP (Multi-Country HIV/AIDS Program) for Africa, 27b, 47, 103b Maternal mortality reduction, 4–5b, 25 Mauritania, 7, 54, 117 Mexico, 85, 86b, 87, 113, 123 finance programs, 56, 114 health, nutrition, and population programs, 34, 116 public sector, 88, 119 Middle East and North Africa (MNA) Bank support fiscal 2001, 92f, 94t, 143, 153 Consultative Council on Gender, 92 human development, 90, 92–93 private sector and investment support, 90, 91–92 public sector support, 90, 92 Millennium Declaration, U.N., 2, 104 Millennium World Food Prize, 103b Moldova, 81, 82, 116 Mongolia, 62, 70, 73, 112, 123 Morocco, 91, 108, 122 Mozambique, 53, 116 Multi-Country HIV/AIDS Program for Africa, 27 b, 47, 103b Multilateral development banks (MDBs), 34, 102, 104 Multilateral Fund, Montreal Protocol, 49 Multilateral Investment Guarantee Agency (MIGA), 15, 31, 61 Multisector lending, 116–117 N Natural disasters. See Disaster response Neediest, focus on, 25–26 Nepal, 54, 75 Netherlands, 73 Nicaragua, 118, 119, 121, 123, 124 debt relief, 43, 87 education projects, 86 Niger, 43, 117, 119, 125 Nigeria, 52–53, 54, 118, 121 Nile Basin Initiative, 49, 66, 93
Nongovernmental organizations (NGOs), 66, 91, 98b, 102. See also Civil society organizations (CSOs) Nutrition programs, 47, 115–116 O Office locations, World Bank, 135–138 Officers, World Bank, 134 Oil programs lending, 117 Open economies, 54b Operations Evaluation Department (OED), 95, 96–97, 98b. See also Development effectiveness Organisation for Economic Co-operation and Development (OECD), 61, 71, 102, 104 Development Assistance Committee (DAC), 8, 102 Organisation pour l’Harmonisation en Afrique du Droit des Affaires Treaty, 62 Output-based aid, 55b, 55 P Pakistan, 75–76, 76b, 109, 123 economic policy programs, 75, 110 Trade and Transport Facilitation Project, 78 Palestinian nongovernmental organization project, 91 Panama, 111–112, 113 Pan American Health Organization, 103b Paraguay, anticorruption program, 33 Participatory development, 51 Partnership for Governance Reform, Indonesia–U.N., 72 Partnerships, 101–105 child labor, 103 with civil society organizations, 104–105 communicable diseases, 102–103 environmental, 49–50, 103–104 governance, 104 HIV/AIDS, 103b International Monetary Fund, 101 knowledge and information, 104 multilateral development banks, 102 poverty and the environment, 49–50 private sector, 104 project supervision, 96b Strategy Papers on, 34 trade, 103 United Nations, 101–102 Peru, 54, 55b, 121, 123 Philippines, 51, 62, 72, 113, 123 Poland, 34, 53, 112, 123–124 Population programs lending, 115–116 Poverty reduction, 4–5b, 42–62. See also Consultative Group to Assist the Poorest (CGAP) Attacking Poverty Program, 33 Board of Executive Directors and, 38 environmental work and, 49–50 IDA and, 11, 97–98 MDB partnerships and, 102 Middle East and North Africa, 92–93 multidimensional support for, 28 progress on, 25 social dimensions of, 50–51 Strategic Framework Paper on, 34 Poverty Reduction Strategy Papers (PRSPs), 27–28, 30, 42–43 African country development, 67 civic engagement and, 51 cofinancing projects, 20 East Asia and Pacific, 70 EC support of, 102 European Union's adoption of, 2 HIV/AIDS initiatives in, 103 b Latin America and the Caribbean, 87 partnerships and, 101 poverty-reducing spending under, 43b preparation of, 45 technical support for, 47 Poverty Reduction Support Credits, 30, 38, 42–43 67, 102 Private sector, 67, 97, 104, 117–118 active projects portfolio, 53 f development programs, 28 infrastructure and, 53–54, 53 f investment climate, 52–53 Prototype Carbon Fund (PCF), 21, 34 Public sector management, 44, 90, 92, 118–121. See also Governance Q Quality Assurance Group (QAG), 95
Note: b indicates boxes; f indicates figures; and t indicates tables.
Index
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R “Reforming Public Institutions and Strengthening Governance: A World Bank Strategy,” 31, 44 Reports on the Observance of Standards and Codes (ROSCs) Program, 45 Reproductive health programs, 4–5b, 47. See also Population programs lending Roll Back Malaria, 68 b, 102 Romania, 62, 80, 109, 121 Rural and community development, 93 Russian Federation, 80, 111, 121, 124, 125 business surveys, 82 foreign direct investment survey, 52–53 guarantee facilities for, 55 legal and judicial programs, 59, 62 Rwanda, 109, 114, 116, 117, 118 debt relief, 43 post-conflict recovery support, 34, 68 S Safeguards system, 51 St. Kitts and Nevis, 87 St. Lucia, 87 St. Vincent and the Grenadines, 87 Samoa, 116 São Tomé and Principe, 43, 119 Science and technology programs (S&T), 51 Sector Strategy Papers (SSPs), 31 Senegal, 34, 110, 121, 125 Shihata, Ibrahim F. I., 3, 61b Sierra Leone, 62, 68, 110, 119 Slovak Republic, 62 Small and medium enterprise (SME) development, 53 Social Funds Review, 98b Social protection sector, 48b, 120–122 “Social Protection Sector Strategy: From Safety Net to Spring Board,” 31 South Asia, 62, 75–79 Bank support fiscal 2001, 77–78, 77 f, 79t, 142, 148 crisis response, 77 growth in, 75 ownership and community empowerment, 75–77 private sector growth, 78 Sri Lanka, 75–76, 77, 113, 114, 120 anticorruption programs, 59 legal and judicial reform lending, 62 Stakeholders, 96, 98b Strategic Compact, 31–33, 34 Strategic Directions Paper, 34 Strategic Framework, 3, 34, 38 Strategic Framework Paper, 34 Strategic Partnership with Africa (SPA), 20, 66 “Supporting Country Development: World Bank Role and Instruments in Low- and Middle-Income Countries,” 29 T Tajikistan, 81, 109, 110 Tanzania, 114, 121 Tariffs, welfare costs of, 8 f Technology programs, 51 Telecommunications programs, 54, 122. See also Distance learning Thailand, 71, 72, 72 b Third Asia Development Forum, 71 Trade, 8, 44–45, 103 African Regional Trade Facilitation Project, 68b Africa Trade Insurance Agency, 110 Pakistan Trade and Transport Facilitation Project, 78 U.N. Commission on International Trade Law, 61 Transportation programs, 54, 78, 122–124 Trust funds, 21, 102 Tuberculosis, 77–78, 82, 102 Tunisia, 34, 91, 92, 109, 124 Turkey, 82, 83, 122 financial systems support, 56, 80, 114 U Uganda, 109, 110, 113, 116, 118 multisector programs, 117
Note: b indicates boxes; f indicates figures; and t indicates tables.
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poverty reduction, 7b Poverty Reduction Support Credit, 43 b, 46, 67 telecommunications programs, 54 Ukraine, 57, 80, 82, 112, 125 United Nations Children’s Fund (UNICEF), 46, 48b, 82b, 102, 103 Commission on International Trade Law, 61 Development Programme, 46, 49, 72, 102, 104 Educational, Scientific and Cultural Organization, 46 Environment Programme, 50 High Commission for Refugees, 77 High-Level Event on Financing for Development, 39 Industrial Development Organization, 50 Joint Programme on HIV/AIDS (UNAIDS), 67, 101–102, 103b Millennium Declaration, 2, 104 partnership against HIV/AIDS and, 103 b partnerships with, 34, 101–102 Population Fund, 46 United States, LAC economic recovery and, 85 Urban development, 51, 54, 124–125 Uruguay, 54, 125 U.S. Agency for International Development, 82 b, 103b V Vaccines, 102–103, 103b Vanuatu, 112 Venezuela, República Bolivariana de, 85, 116 Vietnam, 70, 109, 110, 125, 125 Development Information Center, 71 poverty reduction, 73 Poverty Reduction Support Credit, 71 Violence. See Conflict and post-conflict recover y Vulnerable people, 82b. See also Social protection sector W Water and sanitation projects, 125 Water and Sanitation Sector, 22 Water management, 93 West Bank and Gaza, 113, 117, 122 economic shocks in, 90 education programs, 94, 112 investment and private sector-led growth, 91 public sector support, 92 Wolfensohn, James D., 2–3, 64, 65, 102, 134 Working Group on Governance and Anticor ruption, 104 World Bank. See also International Bank for Reconstruction and Development (IBRD) changing activities of, 31–34 corporate priorities and resources, 32f country business model, 29–30 financial strength preservation, 29 future directions, 34–35 global priorities, 31 operational improvements, 23 operational unit costs, 33 f portfolio at end fiscal 2001, 22 poverty and quality focus of, 25–29 Strategic Framework, 34 world economy effects, 25 World Bank–Civil Society Global Forum, 105 World Bank Institute (WBI), 33, 48 b, 104 World Commission on Dams, 103–104 World Conservation Union, 104 World Development Indicators, 104 World Development Report (WDR) 2000/2001 , 28, 104 World Health Organisation (WHO), 102, 103 b World Links for Development, 33, 105b World Trade Organization, 34 World Wide Fund for Nature Alliance for Forest Conservation and Sustainable Use, 50 Y Yemen, Republic of, 92, 94, 109, 112, 125, 125 Yugoslavia, Federal Republic of, 62, 80–81, 102, 118 Z Zambia, 43, 110, 112, 124
List of Boxes, Tables, and Figures
BOXES Box 1.1 Box 1.2
Box 3.1 Box 3.2 Box 3.3 Box 3.4 Box 3.5 Box 3.6 Box 3.7 Box 3.8 Box 3.9 Box 3.10 Box 4.1 Box 4.2 Box 4.3 Box 4.4
Box 4.5 Box 4.6 Box 4.7 Box 4.8 Box 4.9 Box 4.10 Box 4.11 Box 5.1 Box 5.2 Box 6.1 Box 6.2 Box 6.3 Box 6.4
TABLES The Multi-Country HIV/AIDS Program (MAP) for Africa Scaling up Results, Targeting the Vulnerable, Building on Success, Supporting Private Enterprise: Illustrations of Projects Approved in Fiscal 2001 Poverty-Reducing Spending in Full and Interim PRSPs The Uganda Poverty Reduction Support Credit Focusing Resources on Effective School Health (FRESH) Multidimensional Support for Social Protection Community-Driven Development (CDD): Making Progress Last Open Economies Grow Faster Output-Based Aid The Central Bank of Sri Lanka: A Homegrown Re-engineering Changing Cape Verde’s Financial Landscape: Sustained Reform Pays Off Support for Bangladesh’s Business Climate, Women, and Poor People Rolling Back Malaria Stimulating Africa’s Productivity by Facilitating Regional Trade East Timor: Where Is It Now? Innovating with Knowledge and Countr y Development Partnerships: The Republic of Korea and Thailand Deepening the Development Dialogue in Pakistan Disaster Response: Multidimensional Assistance, Partnership, and Participation Promoting Community-Based Services for Vulnerable Children Wider Consultations: The Bank’s New Approach to Developing Strategy Helping Brazil Save Lives, Prevent the Spread of HIV/AIDS MNA Joins the Global Development Learning Network (GDLN) Helping Alleviate Poverty among Egyptian Women: The Power of Partnership Building Partnerships for Project Supervision OED Uses Participatory Approaches in Evaluation Partnership against HIV/AIDS Consultative Group on International Agricultural Research (CGIAR) The Consultative Group to Assist the Poorest (CGAP) Selected World Bank Knowledge Partnerships
Table 1.1 World Bank Lending by Sector, Fiscal 1992–2001 Table 1.2 The Changing World Bank Table 1.3 Aligning Resources with Corporate Priorities: Selected Items in the Bank’s Budget Table 1.4 Cumulative IDA Subscriptions and Contributions, as of June 30, 2001 Table 3.1 World Bank Adjustment Commitments, Fiscal 1999–2001 Table 4.1 World Bank Lending to Borrowers in Africa, by Sector, Fiscal 1992–2001 Table 4.2 World Bank Lending to Borrowers in East Asia and Pacific, by Sector, Fiscal 1992–2001 Table 4.3 World Bank Lending to Bor rowers in South Asia, by Sector, Fiscal 1992–2001 Table 4.4 World Bank Lending to Bor rowers in Europe and Central Asia, by Sector, Fiscal 1992–2001 Table 4.5 World Bank Lending to Bor rowers in Latin America and the Caribbean, by Sector, Fiscal 1992–2001 Table 4.6 World Bank Lending to Bor rowers in the Middle East and North Africa, by Sector, Fiscal 1992–2001
List of Boxes, Tables, and Figures
161
162
FIGURES
ABOUTTHE WORLD BANK
Figure 1.1 Reduced Debt Stock and Improving Debt Service Ratios before and after Assistance under the HIPC Initiative Figure 1.2 Unit Cost of Operational Processes Figure 3.1 Lending for Human Development, Fiscal 2001 Figure 3.2 Lending for Private Sector Development and Infrastructure, Fiscal 2001 Figure 3.3 Portfolio of Active Project in Private Sector Development and Infrastructure as of June 30, 2001 Figure 3.4 Net Long-Term Resource Flows to Developing Countries, 1991–2000 Figure 3.5 Legal and Judicial Reform Activities Figure 4.1 Africa: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 4.2 East Asia and Pacific: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 4.3 South Asia: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 4.4 Europe and Central Asia: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 4.5 Latin America and the Caribbean: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 4.6 Middle East and North Africa: IBRD and IDA Lending by Sector, Fiscal 2001 Figure 5.1 Trends in Project Outcomes Figure 5.2 Quality of Adjustment Lending Figure 5.3 Poor Performers Experience a Decline in Aid Figure 5.4 Trends in Performance of IDA Projects Closing in the Years Covered by Replenishments 9, 10, and 11 Figure 5.5 Percentage of Projects with Community Participation
Table 8.1
The World Bank Annual Report 2001
Table 8.2 Table 8.3
Table 8.4 Table 8.5
Table 8.6
Table 8.7
Table 8.8 Table 8.9 Table 8.10 Table 8.11 Table 8.12 Table 8.13 Table 8.14
Country Eligibility for Borrowing from the World Bank World Bank Commitments, Disbursements, and Net Transfers in Africa, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in East Asia and Pacific, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in South Asia, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Europe and Central Asia, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Latin America and the Caribbean, Fiscal 1996–2001 World Bank Commitments, Disbursements, and Net Transfers in Middle East and North Africa, Fiscal 1996–2001 Operations Approved during Fiscal 2001, Africa Operations Approved during Fiscal 2001, East Asia and Pacific Operations Approved during Fiscal 2001, South Asia Operations Approved during Fiscal 2001, Europe and Central Asia Operations Approved during Fiscal 2001, Latin America and the Caribbean Operations Approved during Fiscal 2001, Middle East and North Africa World Bank Adjustment Operations, Fiscal 2001
Selected World Bank Publications: Major Titles
ENVIRONMENT
POVERTY AND DEVELOPMENT ECONOMICS
Greening Industry: New Roles for Communities, Markets and Governments Rural Development, Natural Resources and the Environment: Lessons of Experience in Easter n Europe and Central Asia
Can the Poor Influence Policy? Participatory Poverty Assessments in the Developing World (2nd edition) Frontiers of Development Economics: The Future in Perspective Our Dream: A World Free of Poverty The Quality of Growth Voices of the Poor: Can Anyone Hear Us? Voices of the Poor: Crying Out for Change Voices of the Poor: From Many Lands
FINANCE AND INVESTMENT Analyzing Banking Risk: A Framework for Assessing Corporate Governance and Financial Risk Management Commodity Market Reforms: Lessons of Two Decades Finance for Growth: Policy Choices in a Volatile World Financial Management and Disbursement in World Bank-Financed Projects: Self-Learning Program Investment Promotion Toolkit: A Comprehensive Guide to Foreign Direct Investment Promotion Microfinance Handbook: An Institutional and Financial Perspective Microfinance Revolution: Sustainable Finance for the Poor Resolution of Financial Distress: An International Perspective on the Design of Bankruptcy Laws
GENERALINTEREST African Development Indicators 2001 Facets of Globalization: International and Local Dimensions of Development Global Development Finance 2001 Global Economic Prospects 2001 International Political Risk Management: Exploring New Frontiers Little Data Book 2001 Participation in Project Preparation: Lessons from World Bank–Assisted Projects in India Procurement in World Bank-Financed Projects: Self-Learning Program World Bank Atlas 2001 World Bank Africa Database 2001 World Bank, IFC, MIGA Annual Reports World Development Indicators 2001 World Development Report: 1978-2000/2001 (CD-ROM) 2000/2001: Attacking Poverty 2001/2002: Building Institutions for Markets
REGIONAL INTEREST African Poverty at the Millennium: Causes, Complexities, and Challenges Aid and Reform in Africa Can Africa Claim the 21st Century? China 2020: Development Challenges Cultural Heritage and Development: A Framework for Action in Middle East and North Africa Region East Asia: Road to Recover y East Asia: Recovery and Beyond East Asian Labor Markets and the Economic Crisis: Impacts, Responses, and Lessons Leapfrogging? India’s Information Technology Industry and the Internet Making Transition Work for Everyone: Poverty and Inequality in Europe and Central Asia Mexico: A Comprehensive Development Agenda for the New Era Rethinking the East Asian Miracle Uganda’s Recovery: The Role of Farms, Firms, and Government
SOCIAL SECTORS
Cities in Transition: A Strategic View of Urban and Local Government Issues Democracy, Market Economics, and Development: An Asian Perspective
Access to Education for the Poor in Europe and Central Asia: Preliminary Evidence and Policy Implications A Chance to Learn: Knowledge and Finance for Education in Sub-Saharan Africa Decentralizing Education in Transition Societies Engendering Development: Through Gender Equality in Rights, Resources, and Voice Faith in Development: Partnership between the World Bank and the Churches of Africa Historic Cities and Sacred Sites: Cultural Roots for Urban Futures HIV/AIDS in the Caribbean Social Cohesion and Conflict Prevention in Asia: Managing Diversity through Development Social Protection Sector Strategy: From Safety Net to Springboard TB and HIV/AIDS Epidemics in the Russian Federation
INFRASTRUCTURE
Some titles above are abbreviated.
INFRISK: A Computer Simulation for Risk Management in Infrastructure Project Finance (CD-ROM) Water Quality Modeling: A Guide to Effective Practice
Phone: 703-661-1580 or 1-800-645-7247 Fax: 703-661-1501 E-mail: books@worldbank.org Internet: www.worldbank.org/publications
GOVERNANCE, CIVIL SOCIETY, AND PARTICIPATION
Selected World Bank Publications: Major Titles
163
List of Part I and Part II IDA Member Countries
PART I IDA MEMBER COUNTRIES
PART II IDA MEMBER COUNTRIES
Australia Austria Belgium Canada Denmark Finland France Germany Iceland Ireland Italy Japan Kuwait Luxembourg Netherlands New Zealand Norway Portugal Russian Federation South Africa Spain Sweden Switzerland United Arab Emirates United Kingdom United States
Afghanistan Albania Algeria Angola Argentina Armenia Azerbaijan Bangladesh Barbados Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Burkina Faso Burundi Cambodia Cameroon Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo, Democratic Republic of Congo, Republic of Costa Rica Côte d’Ivoire Croatia Cyprus Czech Republic Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Republic of El Salvador Equatorial Guinea Eritrea Ethiopia Fiji Gabon
Gambia, The Georgia Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hungary India Indonesia Iran, Islamic Republic of Iraq Israel Jordan Kazakhstan Kenya Kiribati Korea, Republic of Kyrgyz Republic Lao People’s Democratic Republic Latvia Lebanon Lesotho Liberia Libya Macedonia, former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Marshall Islands Mauritania Mauritius Mexico Micronesia, Federated States of Moldova Mongolia Morocco Mozambique Myanmar
Nepal Nicaragua Niger Nigeria Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Rwanda St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Samoa São Tomé and Principe Saudi Arabia Senegal Sierra Leone Slovak Republic Slovenia Solomon Islands Somalia Sri Lanka Sudan Swaziland Syrian Arab Republic Tajikistan Tanzania Thailand Togo Tonga Trinidad and Tobago Tunisia Turkey Uganda Uzbekistan Vanuatu Vietnam Yemen, Republic of Yugoslavia, Federal Republic of Zambia Zimbabwe
Note: Countries choose whether they are Part I or Part II based primarily on economic standing. Part I countries are almost all donors to the International Development Association and pay their contributions in freely convertible currency. Part II countries may be donors, and are entitled to pay most of their contributions in local currency. For more information, and for Statement of Voting Power, and Subscriptions and Contributions of IDA Members, see The World Bank Annual Report 2001: Volume 2, Financial Statements and Appendixes.
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Acronyms
ADB AfDB AFR ARDE Bank BCEAO CAS CDD CDF CGAP CGIAR CIS DAC DEC EAP EBRD EC ECA EFA ESW EU FAO FRESH FSAP GAVI GDLN GDN GDP GEF GNI HIPC HIV/AIDS IADB IBRD ICSID IDA IDA-13 IDG IFC ILO IMF InfoDev InfoShop IPAA I-PRSP LAC MAP MDB MIGA MNA NGO NPV
Asian Development Bank African Development Bank Africa Region Annual Review of Development Effectiveness World Bank (IBRD and IDA) Central Bank of West African States Country Assistance Strategy Community-Driven Development Comprehensive Development Framework Consultative Group to Assist the Poorest Consultative Group on International Agricultural Research Commonwealth of Independent States Development Assistance Committee (of the OECD) Development Economics and Data Group East Asia and Pacific Region European Bank for Reconstruction and Development European Commission Europe and Central Asia Region Education for All economic and sector work European Union Food and Agriculture Organization Focusing Resources on Effective School Health Financial Sector Assessment Program Global Alliance for Vaccines and Immunization Global Development Learning Network Global Development Network gross domestic product Global Environment Facility gross national income Heavily Indebted Poor Countries human immunodeficiency virus/acquired immune deficiency syndrome Inter-American Development Bank International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association Thirteenth Replenishment of IDA International Development Goals International Finance Corporation International Labour Organisation International Monetary Fund Information for Development Program Information Shop at the World Bank International Partnership against AIDS in Africa Interim Poverty Reduction Strategy Paper Latin America and the Caribbean Region Multi-Country HIV/AIDS Program multilateral development bank Multilateral Investment Guarantee Agency Middle East and North Africa Region nongovernmental organization net present value
Acronyms
167
OECD OED OPEC Fund PACT PAHO PCF PHRD PRGF PRSC PRSP PTI QAG ROSC RTFP SADC SAR SDP SDRs SME SPA TB U.N. UNAIDS UNCTAD UNDP UNEP UNESCO UNGASS UNHCR UNICEF UNIDO USAID WBI WDR WHO WTO
168
Organisation for Economic Co-operation and Development Operations Evaluation Department Organization of the Petroleum Exporting Countries Fund Partnership for Capacity Building in Africa Pan American Health Organization Prototype Carbon Fund Policy and Human Resources Development Poverty Reduction and Growth Facility Poverty Reduction Support Credit Poverty Reduction Strategy Paper Program of Targeted Interventions Quality Assurance Group Report on the Observance of Standards and Codes Regional Trade Facilitation Project Southern Africa Development Community South Asia Region Strategic Directions Paper special drawing rights small and medium enterprise Strategic Partnership with Africa (formerly Special Program of Assistance for Africa) tuberculosis United Nations Joint United Nations Programme on HIV/AIDS United Nations Conference on Trade and Development United Nations Development Programme United Nations Environment Programme United Nations Educational, Scientific and Cultural Organization United Nations General Assembly Special Session United Nations High Commission for Refugees United Nations Children’s Fund United Nations Industrial Development Organization U.S. Agency for International Development World Bank Institute World Development Report World Health Organisation World Trade Organization
The World Bank Annual Report 2001
Fiscal 2001 Highlights ■ IBRD and IDA lending commitments increased to $17.3 billion, reflecting higher lending by IDA (the Bank’s concessional lending arm). Fiscal 2001 was the first time in 10 years that IDA lending to Africa reached 50 percent of total IDA lend ing, a target set by IDA donors.
set out in the Country Assistance Strategy. The Bank recognized the need to strengthen its economic and sector work, particularly in public expenditure, procurement and financial management, and structural constraints to poverty reduction.
■ This new model has been ■ Intense efforts to sustain gains in project quality continued into fiscal 2001. At year-end, only 12 percent of Bank-financed projects under implementation were at risk of not achieving their development objectives, compared with 29 percent five years earlier.
■ The Bank formalized its results-focused country business model, which is grounded in the country’s own vision of development and in diagnostic work on the priorities and constraints for change, and
put into practice first in lowincome countries. Thirty-two of these countries articulated their vision in Full and Interim Poverty Reduction Strategy Papers (PRSPs), accompanied by Bank–IMF Joint Staff Assessments. The Bank introduced Poverty Reduction Support Credits (PRSCs) to help low-income countries implement policy and institutional reforms drawn from their PRSPs. The first two PRSCs were approved for Uganda and Vietnam.
■ Sixteen countries qualified
■ A clear consensus emerged
for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative in fiscal 2001, more than double the number in fiscal 2000. As of June 30, 2001, a total of 23 countries were receiving debt relief totaling $34 billion in nominal terms, from all creditors.
from extensive consultations that the Bank can play a crucial role in middleincome countries, home to nearly 80 percent of the world’s poor living on less than $2 a day. A Bank Group task force called for analytical and advisory support as well as financial support that crowds in private capital, with private sector engagement through the IFC and MIGA.
■ With country and global partners, the Bank intensified its fight against HIV/AIDS. Seven countries have begun to benefit from the Multi-Country HIV/AIDS Program for Africa, under which the Bank earmarked an initial $500 million on IDA terms to support countries’ programs. In addition, the Bank approved the first two operations of a $155 million HIV/AIDS initiative for Caribbean countries.
■ A new Strategic Framework for fiscal 2001–03 set out the twin pillars of Bank support to countries: strengthening the investment climate and investing in the poor. The past year’s momentum achieved by global and national actors in agreeing on development goals, and on the respective responsibilities of rich and developing countries, will provide a key driving force for Bank assistance.
IBRD and IDA Lending: New Approvals in Fiscal 2001 Share of Total Lending of $17.3 billion
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Copyright © 2001 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, USA All rights reserved Manufactured in the United States of America
By Region
By Sector Note: See table 1.1, page 26. a. Includes transportation, telecommunications, and water supply and sanitation. b. Includes multisector, electric power and other energy, oil and gas, and mining.
The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. ISSN 0252-2942 ISBN 0-8213-4971-6
Editor Manorama Gotur, Office of the Vice President, External Affairs, World Bank Assistant to the Editor Nisha Chatani, Office of the Vice President, External Affairs, World Bank Design and Art Direction Patricia Hord, Patricia Hord.Graphik Design Production Cindy A. Fisher, Office of the Publisher, External Affairs, World Bank Susan Graham, Office of the Publisher, External Affairs, World Bank Brenda Mejia, Office of the Publisher, External Affairs, World Bank Project Assistants Zero Akyol, Office of the Vice President, External Affairs, World Bank Robert Reese, Office of the Vice President, External Affairs, World Bank Editorial Consultant Alison Peña Typesetting Patricia Hord.Graphik Design
Photo Credits cover photo, UNICEF/HQ93-0076/Roger Lemoyne page 1, World Bank/Michele Iannacci page 2, Government of Andhra Pradesh, India page 6, World Bank Photo Library/Curt Carnemark page 10, World Bank/Thanit Thangpgijaigul page 14, Rumiana Toneva page 14, World Bank Photo Library/Kay Cernush page 15, Richard Lord page 15, World Bank/Federica dal Bono page 15, Dirección General de Puertos, Ministerio de Obras y Servicios Públicos de la Nación page 27, Secretariat of Health of Mexico page 29, Enock Kakande page 37, Breton Littlehales page 41, UNICEF/HQ93-0076/Roger Lemoyne page 42, World Bank Photo Library/Curt Carnemark page 46, World Bank/Carolyn Winter page 48, Pan American Health Organization/Dana Downie page 49, World Bank Photo Library/Curt Carnemark page 52, World Bank/Robert Grossman page 56, Jorge Lima page 59, World Bank/Maria Dakolias page 61, Chris Warde-Jones page 66, UNICEF/HQ96-1398/Giacomo Pirozzi page 67, UNICEF/HQ93-1894/Giacomo Pirozzi page 71, World Bank Photo Library/Curt Carnemark page 72, World Bank-Jakarta, Indonesia page 76, World Bank/Zita Lichtenberg page 78, World Bank/Reidar Kvam page 81, Hakob Berberyan page 83, Tatiana Craciun page 87, Nazira Scaffi page 88, World Bank/Ximena Traa-Valarezo page 92, World Bank Photo Files page 93, World Bank/Laura O'Connor page 127, World Bank/Michele Iannacci