THE WORLD BANK GROUP COUNTRY PARTNERSHIP STRATEGY 2013-2016 for the Republic of Iraq
Feb 23, 2016
THE WORLD BANK GROUP COUNTRY PARTNERSHIP STRATEGY 2013-2016for 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.
THE WORLD BANK GROUP 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.
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
United States16%
Japan 8%
Ger-many 5
%France
4%UK 4% China
3%Saudi
Arabia 3%
Russia 3%
Rest of the World
55%
Voting Shares
United StatesJapanGermanyFranceUnited Kingdom ChinaSaudi ArabiaRussiaRest of the world
REPRESENTATION OF IRAQ IN THE WORLD BANK GROUP
Governor: His Excellency Rafe Al-Essawi, Minister of Finance
Executive Director: Merza Hussain Hasan
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.
2. Analytical and Advisory Services
THE IFC’S INSTRUMENTS 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
ONGOING INVESTMENT OPERATIONS
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 ResponseFinancial Sector Banking Sector Reform Public Financial ManagementPrivate Sector Development Private Sector DevelopmentEnergy Integrated National Energy Strategy TA
Infrastructure Emergency Road Reconstruction Dokan & Derbandikhan Hydropower Emergency Electricity Reconstruction Emergency Water SupplyEducation Third Emergency Education
Iraq Trust Fund Projects IDA Grants
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.
CURRENT PORTFOLIO OF ITF AND IDA GRANTS IN IRAQSectoralDistribution
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).
THE WORLD BANK GROUP’S COUNTRY PARTNERSHIP STRATEGY 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) 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 protectionTwo themes will be emphasized in all areas of engagement:
Governance Gender Issues
EXCHANGE VIEWS WITH CITIZENS, PARLIAMENTARIANS & PRIVATE SECTOR Listen to different perspectives to:
Improve the quality of Bank interventionsSet priorities for engagement
The process of consultation will contribute to:Promoting transparencyDesigning operations that safeguard voice
and accountabilityExplain 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.
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.
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.
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
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: 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
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?