Costa Rica | World Bank

Costa Rica: Public Finance and Competitiveness Development

Thu, 30 Apr 2009 20:38:50 GMT

WASHINGTON, April 30, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$500 million
TERMS: Maturity = 30 years; Grace = 5 years
Project Description: The Public Finance and Competitiveness Development Policy Loan with Deferred Draw-Down Option in Costa Rica operation seeks to assist the government in addressing public financing needs to implement actions that strengthen public revenue generation capacity and fiscal transparency, improve secondary education attainment and enhance competitiveness to sustain growth. It is expected to play an important role in the Government’s contingency plan to cover potential financing gaps in the event that the global economic and financial environment worsens significantly, threatening the implementation of important reforms and undermining the capacity to sustain key social programs.

Key outcomes include an improvement in tax revenues as a percent of GDP, an expansion in the number of beneficiaries of the ‘Avancemos” program, decrease in the secondary drop-out rate, and an increase in the number of telecom operators and insurance providers competing in Costa Rica.

Media Contact

Gabriela Aguilar

(202) 473-6768

gaguilar2@worldbank.org

For more project information, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P115173

Costa Rica/WB: US$500 Million to Strengthen Public Finances and Improve Competitiveness

Thu, 30 Apr 2009 19:43:50 GMT

Contacts:

In Washington: Alejandro Cedeño (202) 473-3477

acedeno@worldbank.org

Cristina González (202) 473-4634

cgonzaleza@worldbank.org

WASHINGTON, April 30, 2009 – The World Bank Board of Directors approved today a US$500 million contingent line of credit to the Republic of Costa Rica to boost the country’s competitiveness and strengthen its public finances and respond to the global financial crisis.

The Development Policy Loan (DPL) with a Deferred Drawdown Option (DDO), Costa Rica: Public Finance and Competitiveness, supports progress towards medium-term strategic objectives such as addressing emerging challenges to continued growth and competitiveness, in particular with respect to infrastructure shortcomings, skills gaps and excessive red tape. In addition, it is aimed at sustaining recent social gains and environmental policies.

“The greatest source of risk for the economy is the uncertainty regarding the severity and duration of the global economic and financial crisis. The US$500 million Development Policy Loan is integral to Costa Rica’s strategy to manage risks associated with the crisis on different fronts and ensure the sustainability of the country’s social agenda. It will provide a contingent line of credit to the country to be used in case a worsening in the economic environment makes access to financing more difficult than anticipated,” said Guillermo Zuñiga, Minister of Finance of Costa Rica.

An upper middle-income developing country of 4.5 million inhabitants and a per-capita Gross Domestic Product of US$6,557 in 2008, Costa Rica is well known for its socio-economic achievement and stable political system. The country´s positive economic performance in recent years is due in great part to good macroeconomic management and its fiscal discipline. An improved fiscal performance in 2006 and 2007, and the maintenance of a slight public sector surplus in 2008, permitted increased social spending as well as a reduction in public debt.

As a consequence of the global financial crisis, projections for slower growth are estimated for 2009-2010. In response, central government expenditure will increase from 16.1 percent of GDP in 2008 to 18.9 percent in 2009, due largely to an increase in social and labor-intensive infrastructure spending.

“From a countercyclical perspective, the Government’s response to the crisis is a step in the right direction as it aims to protect the poor from the adverse effects of the crisis while strengthening the economy´s ability to recover growth when the external environment improves,” said Laura Frigenti, the World Bank’s Country Director for Central America. “This operation reflects the continuing collaboration between the World Bank and Costa Rica in support of its social agenda,” emphasized Frigenti.

The loan is designed to support the Government’s efforts aimed at:

· Strengthening public finances and their transparency by enhancing the efficiency of revenue generation and results-based management of expenditures;

· Improving competitiveness by enhancing secondary education attainment, and expanding the beneficiaries of the conditional cash transfer program, “Avancemos;”

· Establishing operational regulatory authorities for the telecommunications and insurance sectors, and strengthening the legal framework pertaining to intellectual property rights.

The DPL will be disbursed in a single tranche of US$500 million, payable in 30 years, including five years of grace period.

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For more information on the World Bank’s work in Latin America and the Caribbean, please visit: http://www.worldbank.org/lac

Costa Rica - Public Finance and Competitiveness Development Policy Loan with Deferred Draw-Down Option Project

Tue, 31 Mar 2009 04:00:00 GMT

The objectives of the Public Finance and Competitiveness Development Policy Loan with Deferred Draw-Dawn Option (DPL-DDO) Program for Costa Rica are to: (i) strengthen public finances and their transparency by enhancing the efficiency of revenue generation and results-based management of expenditures; and (ii) improve competitiveness by enhancing secondary education attainment, facilitating market entry in the telecommunications and insurance sectors, and strengthening the legal framework pertaining to intellectual property rights. This Public Finance and Competitiveness DPL-DDO, together with a parallel loan from the Inter-American Development Bank (IDB) approved on December 17, 2008, and a precautionary stand-by arrangement, are integral to Costa Rica's strategy to manage financing risks associated with the crisis on different fronts. Similarly, the precautionary stand-by arrangement provides a contingent line of liquidity to support the Central Bank's international reserves if needed. Finally, the DPL-DDO will provide a contingent line of credit to the Ministry of Finance in case a worsening in the economic environment makes the financing of the deficit more difficult than anticipated.

Delegation of World Bank Executive Directors visits Honduras

Fri, 27 Feb 2009 18:05:09 GMT

Contacts:
In Washington:
Alejandro Cedeno (202) 458-5054
acedeno@worldbank.org
In Tegucigalpa: María Amalia San Martín (504) 239-4551
Msanmartin@worldbank.org

Tegucigalpa, MDC, February 24, 2009 – A delegation of seven World Bank executive directors arrived in Honduras today to see firsthand the programs and projects implemented by the Government and the private sector with World Bank funding. The delegation is accompanied by World Bank Director for Central America Laura Frigenti, the Honduran governor to the World Bank, Rebeca Santos, and other of the organization’s employees.

During their visit, the delegates will meet with President Manuel Zelaya Rosales, government officials, business leaders, and civil society members. They will also visit the Land Management and Disaster Mitigation project in Tegucigalpa, as well as the “My First Job” project and a private agribusiness food preparation company in the city of San Pedro Sula. There, they will also meet with project beneficiaries.

The executive directors represent their respective governments to the World Bank. They direct general operations and make policies that guide the organization. They are also responsible for analyzing loan, credit, and grant proposals presented by the World Bank CEO and for implementing decisions regarding these proposals.

The World Bank supports the Government of Honduras and its people in their struggle to develop and reach social equity by providing credits with a 10-year grace period for payment and 20 years for reimbursement. The World Bank has provided Honduras with over US$2.5 billion, helping to fund different projects, such as El Cajón, Cañaveral, and Río Lindo hydroelectric projects, as well as highways and health and educational reform programs. Presently, the World Bank’s portfolio in Honduras amounts to US$411 million for 17 projects in several strategic sectors, as well as other financial support offered to entrepreneurs in the financial, industrial, energy, and telecommunications sectors.

For more information about the work of the World Bank in Honduras, please visit: http://www.bancomundial.org/hn

WB Renews Support to Costa Rica

Fri, 13 Feb 2009 19:06:19 GMT

Contacts:

Sergio Álvaro Jellinek (202) 294-6232

sjellinek@worldbank.org

Gabriela Aguilar (202) 290-8512

gaguilar2@worldbank.org

SAN JOSE, Costa Rica, February 12, 2009— At the end of a two-day visit to Costa Rica, the World Bank Vice President for Latin America and the Caribbean Pamela Cox renewed World Bank support for the sound macroeconomic policies, the competitiveness agenda, and the social emphasis embraced by President Oscar Arias’ Administration.

To address the impact of the global economic crisis, the World Bank is preparing a US$500 million credit line for the country, which may be used as needed by the Costa Rica authorities.

According to Costa Rica’s Minister of Finance Guillermo Zúñiga, “the assistance offered by the World Bank benefits Costa Rica, as it efficiently protects the economy and provides fresh resources under advantageous conditions, should they be needed.”

The minister recalled that the Legislature recently approved a similar credit for US$65 million for natural disasters. Costa Rica is the first country receiving a World Bank credit for such purposes.

For the new credit line, Cox explained that “its terms are still to be negotiated. The initiative will be presented to the World Bank’s Board of Directors in April. This is a significant support that the country can rely on, if required, in these times of economic uncertainty.”

“Central America has close trade relationships with the United States; therefore, the reduced demand for products and services will surely impact the region,” said Cox, explaining that this is further aggravated by reduced remittances sent from the United States and Europe to Central American countries.

The World Bank official met President Oscar Arias and Minister of Finance Guillermo Zúñiga, along with Laura Frigenti, World Bank Director for Central America, to assess the situation of the region in the light of the global economic crisis.

As part of her stay in the country, Cox visited the areas affected by the 6.2 degree (Richter scale) earthquake that occurred last January, which killed 23 people and left more than 2,000 homeless. She visited temporary shelters and talked with several victims.

“I am impressed by the high level of professionalism and commitment of the Costa Rican public institutions, which have implemented a comprehensive strategy that combines material support with a human focus, including psychological support to those who need it, especially children. I have seen similar experiences in other countries and Costa Rica’s response has been exemplary,” Cox explained.

Along with the World Bank Chief Economist for the region Augusto de la Torre; the Minister of the Environment, Energy and Telecommunications Roberto Dobles; and the Regional Director for the International Union for Conservation of Nature Grethel Aguilar, Cox presented the main annual World Bank report for Latin America and the Caribbean, which addresses the challenges and opportunities of the region to mitigate and deal with the impacts of climate change.

For the fiscal year ending June 2009, the World Bank expects to almost triple its lending portfolio for Latin America, reaching approximately US$13 billion, of which US$3 billion will be allocated to Central America. Such increase evidences the prompt response of the multilateral institution to help Latin American countries face the global crisis impact.

More than US$2 billion will be directly related with assistance programs for the underprivileged in the form of Conditional Cash Transfers (CCT), which seek to increase the access of the poor to health and education services.

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For more information about the World Bank’s work in Latin America and the Caribbean, please visit:

http://www.worldbank.org/lac

For more information about the World Bank’s work in Costa Rica, please visit:

http://www.worldbank.org/costarica

Consultations on the Bank Web Site

Tue, 09 Dec 2008 15:37:38 GMT

Dear reader,

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

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

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

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

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

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

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

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

Your feedback will bring us closer to this goal.

Thank you,

Angie Gentile
Managing Editor, www.worldbank.org

Global food and fuel crisis will increase malnourished by 44 million

Wed, 08 Oct 2008 17:30:00 GMT

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

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

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

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

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

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

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

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

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

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

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

Costa Rica- Catastrophe Deferred Drawdown Option (Cat DDO) Loan

Tue, 16 Sep 2008 20:57:46 GMT

WASHINGTON, September 16, 2008- The following project was approved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$65 million

TERMS: Maturity = 29.5 years; Grace= 5 years

Program Description: This project aims to enhance the government of Costa Rica’s capacity to implement its Disaster Risk Management Program for natural disasters. The CAT DDO acts as a source of bridge financing that may be disbursed partially or in full if the country declares a state of emergency as a result of a natural disaster. This will allow the country to maintain its development programs while mobilizing other sources of funding to address the emergency.

For more information, please call Stevan Jackson at (202) 458-5054 or e-mail here at sjackson@worldbank.org

Costa Rica: World Bank Approves US$65 Million to Reduce the Impact of Natural Disasters on the Poor

Tue, 16 Sep 2008 17:37:15 GMT

Contacts:

In Washington: Alejandro Cedeño (202) 473-3477

acedeno@worldbank.org

WASHINGTON, September 16, 2008 -The World Bank Board of Executive Directors today approved a US$65 million loan to Costa Rica for the first Catastrophe Deferred Drawdown Option (CAT DDO)aimed at providing a source of immediate financing in the aftermath of a major natural disaster.

The CAT DDO acts as a source of bridge financing that may be disbursed partially or in full if the country declares a state of emergency as a result of a natural disaster. This will allow the country to maintain its development programs while mobilizing other sources of funding to address the emergency.

"The poor are the most at risk from the impacts of natural disasters,”said Laura Frigenti, World Bank Director for Central America. “This operation, the first of its kind, will help ensure that affected populations receive assistance as soon as possible after a disaster, and will support the continuity of development programs directed to alleviate and reduce poverty.”

Due to its geographic location and geotectonic characteristics, Costa Rica is exposed to a large variety of natural hazards, including floods, hurricanes, earthquakes, volcano eruptions, and landslides. Costa Rica experienced 49 major natural disaster events between 1910 and 2008, which affected 1.4 million people.

Despite its high exposure to adverse natural events, the country has built an efficient disaster response system and has managed to limit vulnerabilities through the effective enforcement of building codes, environmental standards, and land use planning. Costa Rica has also made substantial progress in strengthening its institutional and legal framework and mainstreaming disaster risk management in its national development program.

“This is just one instrument as part of a World Bank effort to deliver customized financial solutions and help plan efficient responses to catastrophic events. The CAT DDO is most effective as part of a broader risk management strategy,”said Gloria Grandolini, World Bank Director of Banking and Debt Management.

“The CAT DDO was developed responding to requests by middle-income countries for innovative financial products to increase their resilience in case of catastrophic events,” said Armando Guzmán, World Bank Task Manager for this operation. “This instrument will help Costa Rica to better address its immediate funding needs in the aftermath of natural disasters.”

The CAT DDO can be disbursed over aperiod of three years and may be renewed up to four times for a total of 15 years. The US$65 million loan has a variable interest rate approximately equal to six-month LIBOR and is repayable in 29.5 years, including a five-year grace period.

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For more information on this project, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P111926

For more information on the World Bank’s work in Costa Rica, please visit:

http://www.worldbank.org/costarica

Costa Rica-World Bank: New Partnership Includes US$258 Million

Thu, 04 Sep 2008 22:20:42 GMT

News Release No. 2009/068/LCR

Contacts:

In Washington: Alejandro Cedeño (202) 473-3477

acedeno@worldbank.org

WASHINGTON, September 4, 2008 - The World Bank Board of Directors endorsed today the new Country Partnership Strategy (CPS) for Costa Rica, which envisages a lending program of up to US$258 million between August 2008 and December 2010.

The new partnership is based on a streamlined lending program for priority areas such as secondary education, prevention of catastrophic risks, telecommunications reform, and the comprehensive development of infrastructure in the country.

Additionally, the partnership includes an expanded program of analytic and advisory activities carefully tailored to country demands and that would respond in real time to emerging demands.

"The new partnership strategy for Costa Rica will support key areas of development for the country including competitiveness, disaster management and secondary education." said Laura Frigenti, World Bank Country Director for Central America. "The strategy includes a combination of traditional and innovative financial instruments, technical assistance and fee for services.” she added.

This will be accomplished by supporting the following operations:

A catastrophic risk deferred draw-down operation (US$65 million), which will provide Costa Rica a quick source of funds in the event of a major natural disaster, thus allowing a real time response to address emergency needs.
A telecommunications reform project (US$13 million) intended to bring global experience to modernize the telecommunications sector.
A secondary education and skills development project (US$80 million), complementing ongoing efforts by the Education Quality and Efficiency Project, which is improving the relevance of secondary education to labor market demands. This will be accomplished through a revamping of the curriculum, pedagogical methods, teacher training and updated equipment and technology.
Puntarenas integrated infrastructure development project (US$100 million) to be designed after the Puerto Limon operation approved in 2008. The project seeks to transform the Puntarenas area (including the nearby Caldera port) into a regional center of economic growth by revitalizing the port and urban environment, leveraging the interface and synergies between the port and the city, and increasing economic opportunities for the poorest households in this area.
Technical assistance particularly in the poorest areas, with the objective of focalizing social assistance, competitiveness, domestic debt market development, pension’s assets management, and consolidation of health system reform.

In addition, the World Bank will support Costa Rica’s efforts to reduce greenhouse gas emissions through support from the Forest Carbon Partnership Facility (FCPC) to help design positive incentives for emissions reduction. This will build on the ongoing dialogue in the context of the payment for environmental services initiative.

As part of the new partnership strategy, the private sector arm of the World Bank Group, the International Finance Corporation (IFC), will continue working in the financial, infrastructure, health, education and agribusiness sectors.

The strategy is the result of a series of consultations with representatives of the Costa Rican government, civil society organizations, academic institutions, and political parties. The period covered by this CPS includes the remaining term of the administration of President Oscar Arias plus an additional period of seven months to prepare the succession of this strategy with the new government in 2010.

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For more information on the World Bank’s work in Costa Rica, please visit:

http://www.worldbank.org/costarica

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

Wed, 21 May 2008 17:11:32 GMT

Contacts:

In Washington:

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

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

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

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

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

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

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

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

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To download full report click here:

http://www.growthcommission.org/

World Bank Broadens Transport Agenda

Wed, 21 May 2008 17:00:00 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

World Bank Group President Appoints Vice President of Institutional Integrity

Mon, 05 May 2008 18:00:00 GMT

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

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

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

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

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

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

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

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

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

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

Fri, 02 May 2008 12:30:00 GMT

Contact:

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

Cneal1@worldbank.org

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

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

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

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

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

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

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

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

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

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For more information, please visit:

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

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

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

Wed, 02 Apr 2008 15:53:10 GMT

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

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

Agricultural Assistance

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

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

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

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

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

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

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

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

Zoellick said the World Bank Group can help by:

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

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

Trade Also Key to Lower Food Prices

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

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

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

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

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

Sovereign Wealth Funds

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

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

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

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

Extractive Industries Initiative

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

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

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

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

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

GEF Trust Fund Grant to the International Center for Tropical Agriculture for Latin America: Multi-Country Capacity-Building for Compliance with the Cartagena Protocol on Biosafety

Tue, 25 Mar 2008 21:08:30 GMT

WASHINGTON, March 25, 2008 - The following projects was approved today by the World Bank’s Board of Executive Directors:

Global Environment Facility (GEF) Grant: USD$4million

PROJECT DESCRIPTION: The Global Environmental Objective (GEO) of the project is to strengthen the capacity in the four participating countries, Brazil, Colombia, Costa Rica, and Peru to implement the Cartagena Protocol (CP) on biosafety. Specifically it aims to strengthen the technical capacity in knowledge generation for biosafety risk assessment and management; and strengthen the biosafety decision-making capacity. The proposed project is one of two projects (the second project being a GEF medium sized Regional Capacity-Building for Compliance with the Cartagena Protocol on Biosafety project) which are being developed to address the biosafety knowledge and capacity gap.

For more information please call Gabriela Aguilar at (202) 473-6768 or e-mail gaguilar2@worldbank.org.

Costa Rica: WB Approves $72.5 million to Revitalize the City-Port of Limon

Wed, 09 Jan 2008 20:36:27 GMT

Contacts:

In Washington: Alejandro Cedeño (202) 473-3477

acedeno@worldbank.org

Cathy Russell (202) 458-8124

crussell@worldbank.org

WASHINGTON, January 9, 2008 -- The World Bank Board of Executive Directors yesterday approved a loan for Costa Rica in the amount of US$72.5 million to finance the revitalization of the city of Limon and to support the modernization of its port.

“With its historic center and unique Caribbean identity, Limon has great potential for tourism development but this is not being realized due to limitations in its urban planning and management capacity,” said Laura Frigenti, World Bank Director for Central America. “This loan will help the city of Limon to diversify its economy and to develop both tourism and trade in a sustainable manner, while creating a more livable environment for the city’s poorest inhabitants.”

While Costa Rica as a whole has an impressive development record, the Atlantic region is lagging behind, with one in five of its inhabitants living in poverty. The Atlantic port-city of Limon is one of the country’s most decayed cities and suffers from high unemployment and crime rates. The port of Limon, the busiest port in Central America after Panama, is critical to the competitiveness of Costa Rica’s trade, but has become a major bottleneck to the country’s growth due to lack of reform and inefficiency. The congestion in the port affects the city as heavy freight traffic has to pass through the city center to get to the Limon terminal.

The City-Port of Limon Project will help to address these challenges through support for actions in four key areas:

Urban and cultural revitalization: Investments focused on rescuing Limon’s unique cultural identity, while improving the city’s urban environment (sewerage, drainage, paving of streets) and attractiveness to visitors.
Local economic development: Activities to generate new sources of employment and income, seizing the opportunities presented by growing cruise tourism and the historical and cultural richness of Limon.
Local governance and city-port strategic planning: Technical assistance for the Municipality of Limon to improve its capacity to deliver quality services and to take an active role in the city’s development.
Support for improving the port environment: Actions to improve transport access to the Limon and Moín port terminals and technical assistance to the Transport Ministry to support the concessions process and transport system for Moín and Limon.

“The City-Port of Limon Project is part of the Government of Costa Rica’s regional development strategy for the Province of Limon, which also aims to address poverty and social problems,” said Emmanuel James, World Bank task manager for the project. “It has been designed to help develop the capacity of local and central governments to address the needs of lagging regions.”

This US$72.5 million fixed-spread loan from the International Bank for Reconstruction and Development (IBRD) is payable in 15 years, including 5 years of grace.

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For more information on the City-Port of Limon Project, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295413&menuPK=295447&Projectid=P085539

For more information on the World Bank’s work in Costa Rica, please visit: http://www.worldbank.org/costarica

Costa Rica: City-Port of Limon Project

Tue, 08 Jan 2008 23:07:19 GMT

IBRD Loan: USD$ 72.5 million

Terms: Maturity = 15 years; Grace = 5 years.

PROJECT DESCRIPTION: The project aims to revitalize the city of Limon in line with the Government’s Regional Development Strategy, and prepare the modernization of the port of Limon. More specifically, the project seeks to: (i) improve the protection and management of Limon’s cultural and natural heritage; (ii) increase access to the sewage system and reduce urban flooding in the area of Limoncito; (iii) create a more efficient, accountable and credible local government; (iv) create new employment opportunities through small and micro-enterprises; and (v) support the port modernization process and improve the railway access to the Moin port terminal.

For more information please call:

Stevan Jackson at (202) 458-5054 or e-mail Sjackson@worldbank.org

For project documents, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295413&menuPK=295446&Projectid=P085539

World Bank Appoints New Country Directors for Central America and the Caribbean

Thu, 01 Nov 2007 14:47:22 GMT

Contacts:
In Washington: Gabriela Aguilar (202) 473-6768
gaguilar2@worldbank.org
Stevan Jackson (202) 458-5054
sjackson@worldbank.org

WASHINGTON, October 31, 2007 – Pamela Cox, World Bank Vice President for Latin America and the Caribbean, announced today the appointment of two new country directors for the region to head the units of Central America —Guatemala, El Salvador, Nicaragua, Honduras, Panama and Costa Rica—and the Caribbean.

“The new Country Directors were selected through the World Bank wide competitive managerial selection process. They will work closely with partner countries to provide innovative solutions that respond to their specific development challenges,” said Ms. Cox. Country Directors are in charge of the World Bank local programs.

The new Country Director for Central America is Laura Frigenti, an Italian national. Ms. Frigenti joined the Bank in 1994 as a consultant in the Population and Human Development Division of the Eastern Africa Department. Since then, she has held several positions, the most recent one being Sector Manager for Human Development responsible for Eastern and Central Africa. Ms. Frigenti also has experience in Latin America. Her new position will be effective on January 1st, 2008.

Yvonne Tsikata was appointed as Country Director for the Caribbean (Bahamas, Barbados, Belize, Dominican Republic, Guyana, Haiti, Jamaica, OECS Member States, Suriname and Trinidad & Tobago). Ms. Tsikata, a Ghanaian national, joined the Bank in August 1991 as a Young Professional. Her most recent assignment in the organization was Sector Manager in the Poverty Reduction and Economic Management in the Africa Region. Ms. Tsikata’s appointment will be effective on November 1st, 2007.

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For more information on the World Bank’s work in Latin America and the Caribbean, please visit: http://www.worldbank.org/lac

World Bank Calls for Agricultural Renewal to Reduce Rural Poverty in Transforming Economies

Fri, 19 Oct 2007 16:00:00 GMT

Contacts:
In Washington: Merrell Tuck (202)473-9516
Mobile: (202) 415-1775
mtuckprimdahl@worldbank.org
Radio/TV: Nazanine AtabakI (202) 458-1450
Natabaki@worldbank.org

WASHINGTON, DC, October 19, 2007 – The latest World Development Report says greater investment in agriculture in transforming economies, most of which are in Asia, is vital to the welfare of 600 million rural poor people living in those countries.

Titled ‘Agriculture for Development’, the report warns that the international goal of halving extreme poverty and hunger by 2015 will not be reached unless neglect and underinvestment in the agricultural and rural sectors over the past 20 years is reversed.

“Rural poverty accounts for an extraordinary 82 percent of total poverty in transforming countries,” said Robert B. Zoellick, World Bank Group President. “A greater focus on agriculture is essential when considering population pressures, declining farm sizes, water scarcity and environmental contamination, and the need to develop lagging high poverty areas.”

In transforming economies such as China, India and Morocco, agriculture contributed an average 7 percent to growth in GDP between 1995 and 2003, though the sector accounts for about 13 percent of the economy and employs just over half the labor force. The report recommends that in these countries, where 2.2 billion people live in the countryside, the agricultural agenda should focus on reducing the disparity between rural and urban incomes and raising the incomes of the rural poor.

According to the WDR, for the poorest people, GDP growth originating in agriculture is about four times as effective in reducing poverty as GDP growth originating outside the sector.

“Agricultural growth has been highly successful in reducing rural poverty in East Asia over the past 15 years,” said Francois Bourguignon, World Bank Chief Economist and Senior Vice President, Development Economics. “The challenge is to sustain and expand agriculture’s unique poverty-reducing power, especially in South Asia where the number of rural poor people is still rising and will likely exceed the number of urban poor for at least another 30 years.”

The report says agriculture can provide pathways out of poverty for millions of rural poor who would otherwise be left behind in transforming economies. It says one way out is through a high-value agricultural revolution. Incentives to diversify into high-value horticulture, poultry, fish and dairy products could be provided via pricing reforms and an overhaul of subsidy supports for cereals.

For its part, the World Bank is committed to increasing its support for agriculture and rural development, following a decline in lending in the 1980s and 1990s. In FY07 commitments reached $3.1 billion, marking an increase for the fourth straight year.

Detailed Findings:

According to the report, the livelihoods of subsistence farmers can be improved by increasing the productivity of staple crops in lagging regions, a move that would require major investments in soil and water management and in agricultural research. It also calls for an improved investment climate for agribusiness.

“Rapidly transforming economies must move from the green revolution to focus on new high-value agriculture—with fast-growing urban incomes and demand for high-value products in cities becoming the drivers of agricultural growth and poverty reduction,” said Alain de Janvry, Co-Team Leader on the report. “Globally, countries must deliver a level playing field for trade, while farmer organizations and other local groups need more say in setting policies.”

The report also says that a major priority for transforming economies should be to reduce the environmental footprint of intensive agriculture, especially in agrochemical and animal waste production. Given concerns over water scarcity in transforming economies, the report calls for reform of institutions dealing with irrigation and the removal of water and electricity subsidies.

For the poorest of the poor in rural areas, the report advocates improving the investment climate for rural nonfarm business and job schemes in rural areas. Job programs could entail building rural roads, planting trees in denuded areas, and working to de-silt canals and ponds.

The 2008 WDR uses a typology of countries based on the contribution of agriculture to overall growth, 1990-2005 and the share of rural poor in the total number of poor (2002 US$2-a-day level). In agriculture-based countries (mostly Africa), agriculture contributes asignificant(>20%) share of overall growth. In transforming countries (mostly in Asia), nonagricultural sectors dominate growth but a great majority of the poor are in rural areas. In urbanized countries (mostly in Latin America and Europe and Central Asia), the largest number of poor people are in urban areas, although poverty rates are often highest in rural areas.

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Access the report and related materials at: http://www.worldbank.org/wdr2008