Presentation on theme: "T HE W ORLD B ANK G ROUP C OUNTRY P ARTNERSHIP S TRATEGY 2013-2016 for the Republic of Iraq."— Presentation transcript:
T HE W ORLD B ANK G ROUP C OUNTRY P ARTNERSHIP S TRATEGY for the Republic of Iraq
T ABLE OF C ONTENTS What is the World Bank Group? The World Bank Group program in Iraq. The World Bank Group’s Country Partnership Strategy in Iraq. Questions.
T HE W ORLD B ANK G ROUP The World Bank is an international organization whose mission is to reduce poverty and to contribute to sustainable development. It consists of five organizations: The International Bank for Reconstruction and Development (IBRD): Lends to governments of middle- income 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 non- commercial (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.
O WNERSHIP OF THE W ORLD B ANK G ROUP Ownership of the World Bank Group188 member countries Board of GovernorsThe Governors delegate specific tasks to the Board of Directors. Board of DirectorsThe Board of Directors makes decisions on IBRD loans and IDA credits and establishes policies that guide the cooperation of the institution. PresidentThe President responds to the advice of the Board. He is responsible for Bank responsible for Bank management. Staff10,000 staff in 130 offices around the world.
V OTING S HARES OF THE 188 MEMBER COUNTRIES
R EPRESENTATION OF I RAQ IN THE W ORLD B ANK G ROUP Governor: His Excellency Rafe Al-Essawi, Minister of Finance Executive Director: Merza Hussain Hasan
T HE IBRD’ S I NSTRUMENTS 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. 2. Analytical and Advisory Services
T HE IFC’ S I NSTRUMENTS 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.
T HE W ORLD B ANK G ROUP P ROGRAM I RAQ Program of on-going investment projects New AAA/Advisory Services since December 2011 The Country Partnership Strategy of the World Bank Group
O NGOING I NVESTMENT O PERATIONS Infrastructure : Baghdad Water Supply & Sanitation Water Supply, Sanitation & Urban Recon. Electricity Reconstruction Community Infrastructure (Supplement) Social Sectors School Construction & Rehabilitation Household Survey & Policies Emergency Primary Health Care Services Regional Health Emergency Response Financial Sector Banking Sector Reform Public Financial Management Private Sector Development Energy Integrated National Energy Strategy TA Infrastructure Emergency Road Reconstruction Dokan & Derbandikhan Hydropower Emergency Electricity Reconstruction Emergency Water Supply Education Third Emergency Education Iraq Trust Fund ProjectsIDA Grants
N EW P ROGRAMS SINCE D ECEMBER 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.
C URRENT P ORTFOLIO OF ITF AND IDA G RANTS IN I RAQ Sectoral Distribution
IFC’ S I NVESTMENTS 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).
T HE W ORLD B ANK G ROUP ’ S C OUNTRY P ARTNERSHIP S TRATEGY What is a Country Partnership Strategy (CPS)? Country Partnership Strategies provide a medium term framework for the Bank's engagement in a country.
C OUNTRY P ARTNERSHIP S TRATEGY (J ULY 1, 2012 – J UNE 30, 2016) Approach: 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
E XCHANGE VIEWS WITH CITIZENS, P ARLIAMENTARIANS & PRIVATE SECTOR 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
W ORLD B ANK ’ S G ROUP A PPROACH TO S UPPORTING I RAQ 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.
S TRENGTHENING S TATE I NSTITUTIONS TO I MPROVE M ANAGEMENT OF F INANCIAL R ESOURCES 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).
S UPPORT E CONOMIC D IVERSIFICATION AND S USTAINABLE G ROWTH 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.
S TEPS TO I MPROVE D ELIVERY OF B ASIC S ERVICES AND S OCIAL P ROTECTION 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.
I NSTRUMENTS : H OW THE B ANK G ROUP WILL PROVIDE ITS SUPPORT Ongoing Portfolio New Lending Analytical and Advisory Assistance, including sharing other country experience IFC investments and advisory services MIGA guarantees
I NSTRUMENTS : H OW THE B ANK WILL PROVIDE ITS SUPPORT Flexible approach to take into account changing circumstances The Bank will work in areas that meet criteria: 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
P OINTS FOR D ISCUSSION 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?