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Uzbekistan
World Bank
Country Assistance
Strategy for
2006-2009
What is the World Bank?
• Founded in 1944, the World Bank is the world’s
largest source of development assistance
• Owned by 184 member countries
• Operates in 100 country offices and counts
approximately 10,600 staff
• In Uzbekistan since 1992, 28 staff – all except
one are Uzbek nationals
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What Does the World Bank Do?
• Helps governments in developing countries to
raise the quality of people’s lives
• Works in partnership with government and civil
society to design assistance strategies tailored to
the needs of each country
• Offers a mix of money and knowledge to
implement these strategies
• In Uzbekistan, a total of around US$550 million
committed so far
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The World Bank is not just about
lending
• Research underpins Bank projects
• Analysis and advice to clients to help design
reforms
• When countries borrow from the World Bank
they get access to the best international
knowledge and expertise
• But not all governments agree with World
Bank advice – there is a need for patient
dialogue to achieve progress
4
The new WB Strategy: based on the
government’s own reform plans
• The government has prepared an Interim Welfare Improvement
Strategy (www.worldbank.org.uz), called I-WISP
• The I-WISP focuses on:
–
–
–
–
–
Sustaining economic growth through structural reform
Equality of access to economic opportunities
Strengthening human development and social protection
Reducing regional inequalities
Improving the environment
• World Bank welcomes the strategy as a basis for selective
engagement, although we continue to disagree in some important
areas
5
CAS approach:
• A two-track approach to engagement
– Selective support (advice + lending) in areas where
joint agreement on outcomes and approaches exists
– Continued dialogue in areas where further work is
needed to reach agreement on joint approaches
• The World Bank will continue to be an advocate for reform
• Reforms will only work if there is real Government
ownership
• If progress can be made – engagement will increase
6
Basic CAS Parameters
• Uzbekistan, as a low-income country, will have access to
100% concessional funding (IDA)
– IDA conditions: 40 years maturity, 10 years grace, 0.75%
interest
• Lending for around 2-3 projects per year (US$100 mln)
but subject to annual review
– More resources if performance improves, less if there is
backsliding
• Focus on results / outcomes rather than reform
benchmarks or triggers
– Implementation matters more than reform intention
7
Key Areas of Engagement and
Target Outcomes
• Economic growth and structural reforms
– Improved economic opportunities in rural areas
– More efficient use of public resources
– Improved business climate, particularly for small firms
• Human development and social protection
– Improved access to safe water
– Improved health status in rural areas
– Universal access to quality basic education
• Improvement of the environment
– More efficient use of natural resources (in particular water)
8
Bank Lending
• Ongoing projects
• New projects in 2007-09
– Health II
– Microfinance loan (07)
– Ferghana Valley irrigation
– B-S water supply
and drainage (07)
– Rural water supply &
– B&S Solid Waste (07)
sanitation
– Silk production pilot grant
– Drainage
(07)
– Rural enterprise support
– Energy saving pilot (08)
• New projects in 2006
– Additional water supply;
Sewage (08)
– Public Finance
Management (introduction
– Additional irrigation/rural
reform (09)
of a treasury)
– Education II; Health III;
– Basic education
Municipal III (09)
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Areas for analysis and advice to
influence policy reforms
Related to existing lending
– Analysis of public expenditures,
advice on output-based
budgeting, reform of social
protection
– Poverty analysis, links between
poverty and growth, access to
public services for the poor, do
social transfers reach the poor
– Support for the process of
developing a full WISP – help
with consultations, poverty
analysis, prioritizing policies to
help the poor
– Municipal sector note
Advocacy for further reforms
– Review of reforms in agriculture
– what needs to be done?
– Develop a roadmap for banking
sector reforms; abolish cash
restrictions and other obstacles
– How can the poor be protected
against energy tariff increases?
– Annual review of the business
climate for SMEs
– Legal conditions for housing
finance
– Opportunities for investors in the
agribusiness sector
10
Monitoring CAS outcomes
• CAS Results matrix developed jointly with the
Government – we are both accountable
• Increased attention to monitoring and
evaluation (M&E) in project design, capacity
building in national statistics
• Regular high level meetings to jointly assess
the progress made
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The results matrix as a monitoring
tool – example: safe water
Strategic
country
goal
Challenge CAS
in
Outcome
reaching
goal
Universal
System
consump- deterioration of safe tion
water
Liters
consumed
per capita
Milestones
Bank
projects
Treatment
plant
upgraded
BS Water
Supply
Rural Water
Supply &
sanitation
New
municipal
project in
additional
cities
National and Desalination
WHO
plant
quality
replaced
standards
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What we would like to know from
you
• How do you think could the World Bank support
economic reforms in Uzbekistan?
• In which areas would you like to see the World
Bank focus its support?
• How do you think can we ensure that this strategy
delivers real benefits to the people of Uzbekistan?
• How can we ensure that your feedback is taken
into account?
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