Transcript The World Bank Group Country Partnership Strategy 2013-2016

THE WORLD BANK GROUP
COUNTRY PARTNERSHIP
STRATEGY 2013-2016
for the Republic of Iraq
TABLE OF CONTENTS
What is the World Bank Group?
 The World Bank Group program in Iraq.
 The World Bank Group’s Country Partnership
Strategy in Iraq.
 Questions.
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THE WORLD BANK GROUP
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The World Bank is an international organization whose
mission is to reduce poverty and to contribute to sustainable
development. It consists of five organizations:
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The International Bank for Reconstruction and
Development (IBRD): Lends to governments of middleincome and creditworthy low-income countries.
The International Development Association (IDA):
Provides interest-free loans—called credits—and grants to
governments of the world’s 80 poorest countries.
The International Finance Corporation (IFC): Provides
loans, equity and technical assistance to the private sector to
stimulate private sector investment in client countries.
The Multilateral Investment Guarantee Association
(MIGA): Provides guarantees against losses caused by noncommercial (political) risks to investors in developing
countries.
The International Center for Settlement of Investment
Disputes (ICSID): Provides international facilities for
conciliation and arbitration of investment disputes.
OWNERSHIP OF THE WORLD BANK GROUP
Ownership of the World Bank Group
188 member countries
Board of Governors
The Governors delegate specific tasks
to the Board of Directors.
Board of Directors
The Board of Directors makes
decisions on IBRD loans and IDA
credits and establishes policies that
guide the cooperation of the
institution.
President
The President responds to the advice
of the Board. He is responsible for
Bank responsible for Bank
management.
Staff
10,000 staff in 130 offices around the
world.
VOTING SHARES OF THE 188 MEMBER
COUNTRIES
Voting Shares
United States
Japan
United States
16%
Germany
Japan 8%
Rest of the
World
55%
Germany 5 %
France 4%
UK 4%
China 3%
Russia
3%
Saudi Arabia
3%
France
United Kingdom
China
Saudi Arabia
Russia
Rest of the world
REPRESENTATION OF IRAQ IN THE WORLD
BANK GROUP
 Governor:
His Excellency Rafe Al-Essawi,
Minister of Finance
 Executive
Hasan
Director: Merza Hussain
THE IBRD’S INSTRUMENTS

1. Financing
Investment operations focus on the long-term (5 to 10
years) and finance goods, works, and services that
support economic and social development projects.
 The Government is in charge of developing and
implementing these projects with support from the
World Bank.
 Development policy operations typically run from one
to three years, and provide quick-disbursing external
financing to support government policy and
institutional reforms.
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2. Analytical and Advisory Services
THE IFC’S INSTRUMENTS
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IFC responds to the demand for finance and expertise
from the private sector.
IFC uses a range of financial instruments to provide
both long and short term finance (equity, debt,
guarantees etc).
IFC brings solutions to its clients through investment
and advisory services that help businesses in the
developing world meet the challenges of the global
marketplace.
IFC aids in directing capital and knowledge to
emerging market sectors which require more growth.
To be closer to its clients, IFC has based more than
half of its 3,438 employees in country offices.
THE WORLD BANK GROUP PROGRAM IRAQ
Program of on-going investment projects
 New AAA/Advisory Services since December
2011
 The Country Partnership Strategy of the World
Bank Group
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ONGOING INVESTMENT OPERATIONS
Iraq Trust Fund Projects
IDA Grants
Infrastructure:
Infrastructure

Baghdad Water Supply & Sanitation
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Emergency Road Reconstruction
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Water Supply, Sanitation & Urban Recon.
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Dokan & Derbandikhan Hydropower
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Electricity Reconstruction
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Emergency Electricity Reconstruction
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Community Infrastructure (Supplement)
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Emergency Water Supply
Social Sectors
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School Construction & Rehabilitation
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Household Survey & Policies
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Emergency Primary Health Care Services
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Regional Health Emergency Response
Financial Sector
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Banking Sector Reform
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Public Financial Management
Private Sector Development
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Private Sector Development
Energy
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Integrated National Energy Strategy TA
Education
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Third Emergency Education
NEW PROGRAMS SINCE DECEMBER 2011
New program of advisory services (Youth
Employment, investment climate, Country
Economic Memorandum, Public Expenditure
Review).
 Sought consultations with civil society
organizations and non-governmental
organizations (NGOs), private enterprises,
financial sector, provincial regional councils, local
governments, international partners and with
Parliamentarians.
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CURRENT PORTFOLIO OF ITF AND IDA
GRANTS IN IRAQ
Sectoral
Distribution
IFC’S INVESTMENTS
IFC has a total portfolio of around US$378.5
million in 6 projects as of December 2011, the
largest in MENA region.
 IFC investments include:
 Financial markets, hotels, ports and logistics.
 IFC has a large program of Advisory activities
to complement its investment program. These
include capacity building of banking staff,
supporting private sector-led development of
the housing industry, facilitating SMEs, and
providing transaction advice for public-private
partnerships (PPPs).
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THE WORLD BANK GROUP’S COUNTRY
PARTNERSHIP STRATEGY
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What is a Country Partnership Strategy (CPS)?
Country Partnership Strategies provide a
medium term framework for the Bank's
engagement in a country.
COUNTRY PARTNERSHIP STRATEGY (JULY
1, 2012 – JUNE 30, 2016)
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Approach:
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Foster Consultations and Outreach
Adaptability and Responsiveness
Three Main Areas of Engagement
 Building institutions to improve the management of
financial resources
 Support economic diversification and sustainable
growth
 Improve delivery of basic services and social
protection
Two themes will be emphasized in all areas of
engagement:
 Governance
 Gender Issues
EXCHANGE VIEWS WITH CITIZENS,
PARLIAMENTARIANS & PRIVATE SECTOR
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Listen to different perspectives to:
 Improve the quality of Bank interventions
 Set priorities for engagement
The process of consultation will contribute to:
 Promoting transparency
 Designing operations that safeguard voice and
accountability
 Explain how Bank Group activities benefit
Iraqi citizens
WORLD BANK’S GROUP APPROACH TO
SUPPORTING IRAQ UNDER THE CPS
Given Iraq’s own financial resources, the Bank
program aims to help Iraq better manage its own
public resources and build up effective
institutions.
 The World Bank Group will focus on bringing
knowledge and best practices to help find
practical solutions to Iraqi problems.
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STRENGTHENING STATE INSTITUTIONS TO
IMPROVE MANAGEMENT OF FINANCIAL
RESOURCES
Help the Government to strengthen state
institutions in the management of public finances
by:
 Putting in place an analytical framework for
informed decision-making on the allocation of
budget resources;
 Developing a macro-fiscal framework to assist
Iraqi policymakers in measuring financial flow
from oil; and
 Continuing the work of Extractive Industries
Transparency Initiative (EITI).
SUPPORT ECONOMIC DIVERSIFICATION
AND SUSTAINABLE GROWTH
Improve regulatory environment for private
investment and businesses;
 Support the strengthening of the financial sector;
 Restructure the state-owned enterprise sector
 Promote trade and transport facilitation
 Sound management of natural resources and
environment protection.
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STEPS TO IMPROVE DELIVERY OF BASIC
SERVICES AND SOCIAL PROTECTION
Restore access to and improve quality of water
and sanitation services;
 Provide more reliable power and improved
infrastructure services;
 Improve transport connectivity along key
corridors;
 Improve delivery of health and education
services; and
 Strengthen capacity to develop, manage and
monitor safety net reforms.
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INSTRUMENTS: HOW THE BANK GROUP
WILL PROVIDE ITS SUPPORT
Ongoing Portfolio
 New Lending
 Analytical and Advisory Assistance, including
sharing other country experience
 IFC investments and advisory services
 MIGA guarantees
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INSTRUMENTS: HOW THE BANK WILL
PROVIDE ITS SUPPORT
Flexible approach to take into account changing
circumstances
 The Bank will work in areas that meet criteria:
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Leveraging Iraq’s own resources (also so that Bank
support is integrated into the Government’s priorities
and investment program)
 Strong government ownership and reform champion
 Track record of successful implementation
 Endorsement of Ministry of Finance
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POINTS FOR DISCUSSION
How relevant is the proposed program given
Iraq’s development challenges and needs?
 Are the proposed areas of engagement
appropriate?
 Is this the right strategy for Iraq?
 Does the strategy address the key challenges –
weak institutions, poor delivery of basic services
and poor governance?
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