1_e ==* jy AY~~~~~~Voum 1A
Volume
, /X-? x 'eie
=~~~~~~~~~~~~~~~~~~~~ =
25225
Volume 1
Volume 1
Year in Review
Fiscal 2001 Highlights
IBRD and IDA lending com- set out in the Country Sixteen countries qualified A clear consensus emerged
mitments increased to $17.3 Assistance Strategy. The for debt relief under the from extensive consultations
billion, reflecting higher Bank recognized the need enhanced Heavily Indebted that the Bank can play a
lending by IDA (the Bank's to strengthen its economic Poor Countries (HIPC) crucial role in middle-
concessional lending arm) and sector work, particularly Initiative in fiscal 2001, income countries, home to
Fiscal 2001 was the first in public expenditure, pro- more than double the num- nearly 80 percent of the
time in 10 years that IDA curement and financial ber in fiscal 2000. As of world's poor living on less
lending to Africa reached 50 management, and structural June 30, 2001, a total of 23 than $2 a day. A Bank
percent of total IDA lend- constraints to poverty countries were receiving Group task force called for
ing, a target set by IDA reduction debt relief totaling $34 bil- analytical and advisory sup-
donors lion in nominal terms, from port as well as financial sup-
This new model has been all creditors port that crowds in private
Intense efforts to sustain put into practice first in low- capital, with private sector
gains in project quality con- income countries. Thirty-two With country and global engagement through the
tinued into fiscal 2001. At of these countries articulat- partners, the Bank intensi- IFC and MIGA.
year-end, only 12 percent of ed their vision in Full and fied its fight against
Bank-financed projects Interim Poverty Reduction HIV/AIDS. Seven countries A new Strategic Framework
under implementation were Strategy Papers (PRSPs), have begun to benefit for fiscal 2001-03 set out
at risk of not achieving their accompanied by Bank-IMF from the Multi-Country the twin pillars of Bank sup-
development objectives, Joint Staff Assessments The HIV/AIDS Program for port to countries strength-
compared with 29 percent Bank introduced Poverty Africa, under which the ening the investment cli-
five years earlier. Reduction Support Credits Bank earmarked an initial mate and investing in the
(PRSCs) to help low-income $500 million on IDA terms poor. The past year's
The Bank formalized its countries implement policy to support countries' pro- momentum achieved by
results-focused country and institutional reforms grams In addition, the global and national actors
business model, which is drawn from their PRSPs The Bank approved the first in agreeing on development
grounded in the country's first two PRSCs were two operations of a $1S5 goals, and on the respective
own vision of develop- approved for Uganda and million HIV/AIDS initiative responsibilities of rich and
ment and in diagnostic Vietnam for Caribbean countries. developing countries, will
work on the priorities and provide a key driving force
constraints for change, and for Bank assistance
IBRD and IDA Lending: New Approvals in Fiscal 2001 �
Share of Total Lending of $17.3 billion
Urban Otherb
Africa Development 7%
2%O Human
20% Development
Public Sector / 25%
Latin America and Mngmn
the Caribbea.n Maaemn2
30% 12%
East Asia -
and Pacific
12%
Middle East and Infrastructurea' Finance and Private
North Africa 21% Sector Development
3% 16%
South' Aia
Europe and 19% Economic Policy
Central Asia Agriculture and 4%
16% Environment
13%
By Region By Sector
Note See table 1 1, page 26
a Includes transportation, telecommunications, and water supply and sanitation
b Includes multisector, electric power and other energy, oil and gas, and mining
i I7A3 oothigh HIV/AIDS
ribbon marks World AIDS
hl;g!i $� >! ] >: > , Day in December2000 at
i > 2' g i iWorld Bank Headquarters.
Poverty remains a
global problem of
huge proportions.
Nearly half of the world's 6 billion
Contents
people live on less than $2 a day; Message from the President 2
Meeting the Poverty Challenge 4
about a fifth live on less than $1 Map of Country Offices and Borrower
Eligibility 12
I The World Bank Group 14 --
a day. Poor people lack opportunity.ThWolBakGup4
Financial and Operational Results i6
Cofinancing and Trust Fund Highlights 20
They lack voice. And they are I Active Portfolio and Operational Quality
Highlights 22
extremely vulnerable to sickness,
Overview 25
v The Board of Executive Directors 37
violence) and natural disasters. I Thematic Perspectives 41
D Regional Perspectives 63
Developed and cleveloping countries, Development Effectiveness 95
Partnerships for Development tot i
the World Bank, and its partners in I Project Summaries 107
About the World Bank 127
the development community are firmly I
Index 157
List of Boxes, Tables, and Figures 161
committed to making a difference, Selected World Bank Publications 163
List of Part I and Part II 164
with the full conviction that progress IDA Member Countries
World Bank Web Sites 165
is possible-with concerted action. Acronyms 167
Note
This is the first of two volumes that will be dis-
tributed as a set. The complete Management's
Discussion and Analysis, audited financial
statements of the International Bank for
Reconstruction and Development, audited
About the cover: The World Bank has for several years financial statements of the International
been the world's largest external financier of human Development Association, and appendixes are
development programs. In fiscal 2001 the Bank published in a separate volume as The World
markedly Intensified its fight against communicable Bank Annual Report 2001: Volume 2, Financial
diseases-to prolong life, improve its quality, and Statements and Appendixes. This Annual
protect development prospects in the world's poorest Report is also available on the Internet at
countries. www.worldbank.org. j)
All dollar amounts used in this Annual Report are
current U.S. dollars unless otherwise specified.
Message from the President of the World Bank and
Chairman of the Board of Executive Directors
The poverty reduction agenda has advanced signifi-
cantly over the past year, with development partners i
coming together as never before. We must now build I
on that momentum. Progress in reducing poverty \
remains slow too many girls still do not go to _
school, too many children die before the age of five, ' , , O .
and too many poor people lack opportunity e\ A . '
The urgency for action is pressing. Nearly half ,.'
of the world's people live on less than $2 a day, and '<!l,
their numbers will grow in the next 25 years, as 7 -=
nearly two billion more people are added to develop-
ing countries' populations. The stakes are high, as /
poverty touches all-and drives prospects for no less T
than global peace How can we scale up successes ,
enough to meet the international development goals -
for 2015? (See page 4 ) Only with concerted action
can we make a difference.
In Hyderabad, India, a group of women peer educators animatedly
explain to James D Wolfensohn their work on HIV/AIDS awareness
PROGRESS IS EVIDENT ... AT THE COUNTRY AND programs under the Bank-supported National AlDS Control Project
REGIONAL LEVELS...
Over the past year, I was privileged to visit India
and Africa, which, between them, hold 55 percent
of the world's poor. They offer striking examples of
the ways in which societies are transforming. nomic policies Developing countries, on average,
In India's Andhra Pradesh state, rural women have begun to enjoy higher per capita growth rates
are engaging in open discussions-unthinkable a than industrial countries
few years ago-on how to confront the problem of
HIV/AIDS. In the same state, e-government has ...AND AT THE GLOBAL LEVEL...
cut the time taken for land registration from six
months to 20 minutes. Elsewhere, empowered A remarkable development of the past year is the
grassroots communities are successfully implement- unprecedented alignment of partners around a com-
ing the country's education projects now covering mon global development agenda, embodied in the
50 million children. Millennium Declaration adopted by leaders of the
Africa is on the move. On a first-ever joint world's nations Common guiding principles for
trip by the heads of the World Bank and the IMF, development partnership, too, as outlined in the
Horst Kohler and I met with 22 African presidents. Comprehensive Development Framework, have
We were deeply impressed by their conviction that gained growing acceptance-by the United Nations
Africa's future lies in its own hands, and by their and, most recently, by the Development Committee
commitment to far-reaching change Leaders for application also in middle-income countries
stressed the need to deal with conflict and gover- These principles emphasize a comprehensive
nance, combat HIV/AIDS; and pursue stronger approach, country ownership, partnership, and a
regional cooperation. focus on results Other major steps forward are the
Middle-income countries, too, are addressing European Union's decision to adopt the Poverty
poverty-related concerns ranging from inequality and Reduction Strategy Papers approach, as well as
governance to urban pollution and rural infrastruc- growing efforts among all donors to harmonize aid
ture, and are increasingly adopting sound macroeco- procedures and untie procurement
2 The World Bank Annual Report 2001
... BUT 2015 IS APPROACHING, AND ALL MUST ACT We have made partnership-with countries
and with other development agencies-intrinsic to
Halvimng the percentage ofths in pe b 2015 all that we do A key priority is the ongoing initiative
imperatve. all have a responsiblaity. for the harmonization of donor policies and proce-
iperve,opall havenatesponsibility ensuresoundpol dures to reduce costs for developing countries
Developing~~~ c'nnsne oenuesudplc And we have stepped up collaborative efforts
and institutional environments and an attractive invest- Addre such enr us developmentvchallengs
ment climate. Equally crucial are inclusive policies, to as dss co en vironment clne,
allow the benefits of growth to reach poor people h HIVgAIDS, conflect, envfronmental declune, and
Donor countries need to remove trade barriers tie supot to help Afric figh incAudS and
and open their markets. They need to provide debt become more competitive
relief and new concessional finance, multilaterally- mnrficalp001 the
foremost through an adequate 13th Replenishment F e for acnover the next three years
of IDA and funding of the Heavily Indebted Poor
Countries (HIPC) Initiative-as well as bilaterally. The Framework sets two priorities strengthening
An increase in aid is crucial, from the present 0 22 countries' investment climates, and helping them
percent of gross national income to the 0 7 percent empower and invest in poor people. It emphasizes
share committed by rich countries. And concerted selectivity-within and across countries as well as
international efforts must help fight major global at the global level-and partnership
problems and strengthen the structures needed to What counts, ultimately, is impact. Outcomes
help countries avoid crises and integrate into the of individual Bank-financed operations have
global economy. improved markedly. But achieving the broader
Action and progess, moreover, will need to be impact of an overall Country Assistance Strategy is
built on a solid base of global growth and sound a long-term endeavor, involving players and factors
macroeconomic policies beyond the control of any one institution. The com-
ing together of the development community on a
common set of development goals provides a solid
THE WORLD BANK IS COMMITTED TO basis for progress. The Bank is committed to action
CONCERTED ACTION to help realize this vision. I am deeply indebted to
Guided by the 2015 poverty goal, we have strength- my colleagues whose commitment has earned us
ened the poverty focus of our efforts. This has our position of strength today. I rely on them to take
meant intensified support to the HIPC Initiative, the Bank forward, in concert with our partners.
helping 23 of the world's poorest countries shift In closing, on behalf of the Board of Directors
about $1 billion from annual debt service to spend- and Bank staff, I would like to pay tribute to the late
ing on basic social services It has also meant help- Ibrahim Shihata who died on May 28, 2001. As
ing the governments of poor countries take the lead Senior Vice President and General Counsel from
in preparing poverty reduction strategies developed 1983 to 1998, Ibrahim was a bnlliant lawyer and ded-
with national consensus, and especially involving icated officer of this institution (see page 61). History
civil society and the private sector. The role of busi- will recognize his landmark contributions to the Bank
ness in job creation is crucial, we have expanded our Group and to the cause of poverty reduction in our
work in microcredit and our support for small and client countries.
medium enterprises
We have radically transformed the way we do
business. A persistent focus on quality has vastly
improved the effectiveness of billions of dollars of
Bank lending We are also responding more quickly /
and flexibly to client needs and have substantially
strengthened our knowledge sharing with clients. James D. Wolfensohn
The World Bank Annual Report 2001 3
Meeting the Poverty Challenge:
The International Development Goals
Ambitious targets for 2015...
-;l!t ,., .- *~- People Living on Less Than $1 a Day (percent)
30
Average path to goal
' Poverty reduct*on 20 23 _ Progress 1990-98
7,~~~~~~~~~~~~~~~~~~~~~~~~~r
I -_N_t X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Al 10 is
1990 1998 2015
i _ Net Primary Enrollment Rate (percent)
1-- 100
C3Average path to goal
UnIvrt prmayedcti Progress 1990-98
s~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~l I_ Ia I '.4 n_ Ier 90
j~~~~~~~~~~~~~~~~~~~~~eEll al childie, -:s piar--- 1
80-
_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 199 XR99_ o 2015
Ratio ofGirls to Boys In Primary and Secondary School (percent)
100
iGs*' ender5 equality A83 9 Average path to goal
aiEInin g r iariie Progress 1990-99
so
rl::lmTO 1s 1w1In pri
e - * * e t * z ~eVL~aTe. 0 1-� 990 1999 2015
A u e t o e4,.,l Mortality Rate for Children under Age nve Per 1,000 Live Births
Annual reports for the
100
:;18t;llG 12E1l- --- 1 oA 86 a = A"ragepath to goal
Y;ml:ltqt PT W3 _ Progress 1990-99
_W. | T l a = 7 ; 50
29
9900 1999 2015
Births Attended by Skilled Health Personnel (percent)
-00 90
. -1latrna -Ctit Average path to goal
- 4ekdiuFce maternalorisli ai s _Progrems 1990-99
- - 5 ~~~~~~~~~47
-_____;.-1990 1999 2015
- -fd *Married Women Using Contraceptives (percent)
East Asia and Pacific
aReproductive heaithl 70 ~ ~ ~ ~ ~ ~~~ High Income
Ove r all who n 0 � Latin America and the Carlbbea
eDducvel freai r 4ice 0 ._ Europe and Central Asia
-t by1 30 o Middle East and North Africa
20 o South Asia
_________________ Sub-Saharan, Africa
9932000
Population access to an Improved Water Source (percent)
- Ehvironmzienl sutanbl �
d ,_, . -l�evelopml-en,t sa OAverage path to goal
Hilan by.20.1'5 the proportion01 8 ~ Progress t990-2000
- rpPh ol� sustainbe 80
: -acces�s tsafe dri,nking waler 76
1990 2000 2015
More information on the international development goals, including regional and country-level data, is available on a new
Web site maintained by the World Bank and its development partners wwwdevelopmentgoals.org. -' The World
Development Indicators, published annually by the World Bank, includes a report on progress toward the goals, and many
supporting indicators
The international development goals set tar-
gets for reduction in poverty, Improvements
Incidence of income poverty down 20 percent, but uneven progress Iets and eduction an proteto
The global decline has been driven by progress in China and India. With higher
growth In developing countries, the goal can be achieved globally, but at current rates the environment. First agreed on at major
of progress many countries will fall short. United Nations (U.N.) conferences in the
1990s, the goals have been adopted by the
World Bank, the International Monetary
Fund, the members of the Development
Enrollment rates rising slowly Assistance Committee of the Organisation
Primary school enrollments remain far off track, especially in South Asia and for Economic Co-operation and
Sub-Saharan Africa. Even countries that have succeeded In bringing more children Development, and many other agencies, as
to school need to worry about the quality of education.
a framework for motivating (and measuring)
development progress. Marking an extraor-
dinary consensus reflected In the U.N.
Progress in some regions, but little time left Millennium Declaration, an expanded set of
EUminating gender disparities in primary and secondary education is one step goals was endorsed by 149 heads of state
toward gender equality and the empowerment of women. Very little time is left and adopted by the U.N. General Assembly
before 2005, the target year. in September 2000.
The ambitious targets for 2015 provide
a formidable challenge to the international
community. One-fifth of all people live on
Slow progress on average less than $1 a day. About 10 million children
Many,countries have significantly cut these rates in the last 10 years, but on under the age of five died in 1999, most
current trends no region will achieve these goals.
from preventable diseases. Over 500,000
women die each year during pregnancy or
childbirth. And about 113 million children
do not attend primary school. Achieving the
Improved health care needed
goals means lifting more than 300 million
While data are not sufficient to measure maternal mortality trends, global estimates g
suggestthat over 500000 women died from causes related to childbirth in 1995. out of poverty preventing more than 55 mil-
If skilled health personnel attended 90 percent of all births, those numbers could be lion infant and child deaths and over 4 mi-
dramatically reduced. lion maternal deaths, and providing places
for at least 128 million more primary school
students by 2015. After 10 years, there are
signs of progress, but many of the goals are
Rising contraceptive use in most countries not likelysto betachivedfwthoutsren e
But there are large regional differences. In Sub-Saharan Africa, only 26 percent andeboldheffort.
of married women practice contraception. In East Asia, over 75 percent do. and bold-effort.
Access to water improving
Achieving the 2015 target in Africa, Asia, and Latin America will require providing
an additional 1.5 billion people with access to an improved water source.
Meeting the Poverty Challenge: Progress toward the Goals
...and uneven progress across regions...
_mom Wpt _ i_ - PROGRESS TO DATE
Substantial progress in poverty reduction has been
'4000~ ~~
9 ffij - ,* - -.- E w - ~= made in some areas. In the 1990s significant
progress was made in reducing income poverty in
%p ; _|9 1-' '- %; i, : East Asia before the 1997 financial crisis, and the
negative impact of the crisis was partially reversed
- s* ! s.v during the subsequent recovery. The share of people
living below $1 per day also declined in Latin
t America and the Caribbean, and in South Asia,
; > 1F - __ 1 ! 2although the number of poor people still increased
. '- )aj lb < z 1 It -Wi ^^ ,st zA g - t - . x in South Asia because of population growth. On
average, poverty declined in fast-growing countries
<_tk g *. s s - '~ t ' ;11i and increased in countries experiencing stagnation
l , AkXX^vs> ff - _ .. or contraction.
_ w w ,,, ,^=_ " tte- PROSPECTS FOR 2015
"' ~~~~~~~Projections indicate that, if developing countries'
i ' 2 ;average per capita gross domestic product (GDP)
were to grow at a sustained rate of 3.7 percent
. j.("base case" in the graphs)-higher than the 1990s'
average of 1.8 percent and the 2.3 percent average
of the low case used for the graphs-the global inci-
1L~~~~ \fJ[fr ~~~~~~dence of absolute poverty could decline from 23
percent in 1998 to 13 percent in 2015. The number
of poor could drop from 1.2 billion to less than 800
'k l$' '*,Y X j; %%t IRJ7 rmillion. But many countries, especially in Africa,
would still not reach the goal of halving poverty by
2015.
- ~l7
.&i!.
,,, - , '.s''~~~~_j!
a _ r_hWrdaAnu e&26
The International Development Goals:
A Particular Challenge for Africa
Life expectancy decreased, on average,
from 50 years in 1987 to 47 years in 1999,
largely under the devastating impact of
Progress in Some Regions, Setbacks in Others HIV/AIDS; in hardest-hit countries such as
Proportion of people living on less than $1 a day (percent) Botswana, Lesotho, South Africa, and
Zimbabwe, life expectancy fell by more than
Sub-Saharan Africa Europe and Central Asia 10 years.
Child mortality increased from 155 per
50 so,, _ 1,000 in 1990 to 161 per 1,000 in 1999; it
40 40 declined in all other regions.
Health-care systems, weakened by conflict,
30 30 poor management, and the impact of
20 20 HIV/AIDS, are finding themselves unable to
cope with traditional illnesses, and malaria
10 10 and tuberculosis continue to kill millions
o____________________________ 0 _, * _ Gross primary school enrollment rates
1990 1998 2015 1990 1998 2015 declined between 1980 and the mid-1990s;
nine countries still reported net primary
enrollment rates of less than 50 percent in
East Asia and Pacific Latin America and the Caribbean the 1990s, with even lower rates for girls.
so so
40 40 But breaking the cycle of impoverishment Is
possible: in countries such as Ethiopia, Ghana,
30 30 Mauritania, and Uganda, sustained economic
recovery and stability have helped reduce
20 ** < 20 ( poverty and improve living conditions.
10 10
0 0
1990 1998 2015 1990 1998 2015
South Asia Middle East and North Africa
so so
40 40
30 30
20 > 20
10 10
0 0~~~~~m
1990 1998 2015 1990 1998 2015
* m Actual poverty reduction
Source World Bank 2001 Global Economic Prospects and
the Developing Countries 2001 Washington, D C Reduction needed to halve poverty
by 201 5
Poverty reduction with low-case
growth
Poverty reduction with base-case
growth
Meeting the Poverty Challenge: An Agenda for Action
WThe -r1d0Bin a ... demand that all partners accept responsibility...
ti liiW&ld aink and
ia ,n al
ZI.velopmnt Goals
g- TWak Smweaving the
- ,oa .iliit.ir' operations
-.kr4_ - - The international development goals reflect an 2 The debt relief agenda must go forward
c* 5 wiy~'dg gol e n unprecedented consensus of the international com- Following the substantial advances made in fiscal
j (glyllgue munity. Shared goals support the effort to increase 2001, the next challenge is to move forward with
-_ SuEghXiFYe aid effectiveness through stronger partnership and implementation of the Heavily Indebted Poor
country leadership Countries Initiative, in particular in those coun-
>'',Frameewk, Poverly tries affected by conflict. Securing sustainable
h ;e&,d in Strategy A NEW DEVELOPMENT COMPACT financing on appropriately concessional terms will
F- - Rers. .cOunlrv also be important. (See middle figure below)
'-- Sane Strategies. The agenda facing developing countries is formi-
..;a. Siraiegy dable. Many developing countries already reflect the 3 Now is the time to increase aid
Pbrs .. ana Seeking a goals m their strategies, others have identified spe- Developing countries' efforts to improve their pol-
tie gInrerli cific intermediate measures linked to longer-term icy environments are allowing them to make more
, thr2z:'a nd poverty reduction outcomes. Pursuing sound domes- effective use of aid. Support from most members
SLzWiortin~6.utcome tic policies wmll be critical to attracting greater of the OECD Development Assistance
,n cor e resources. Sound macroeconomic policies, strong Committee (DAC) falls well short of the pledged
- progra nsnC. financial systems, and well-functioning regulatory, 0 7 percent share of gross national income, so far
,dna dna. legal, and judicial frameworks will enhance the only Denmark, the Netherlands, Norway,
iCapbllles in effectiveness of aid and attract more productive Sweden-and most recently Luxembourg-have
Ijta apabilites in of atat poutve
' -~many clnI, cbsancres private investment. met this target While average DAC contributions
,-- sEndndmg research declined in 2000, however, aid levels from 15 of
; o lnrease The responsibility of developed countries stands 22 DAC members increased over the prior year.
ipublic secvo' effecl,e out even more clearly as developing countries take (See right figure below.)
! n ess a acCelerate full responsibility for their own choices. Key areas
pro-gress for action are summarized below. 4 Simplifying and harmonizing aid procedures will
'l*kng hilh part
X 1.iking I~th part lower the burden on developing countries
l, ,rlIgo nalZfnfee 1 Dismantling trade barriers is fundamental Multilateral and bilateral donors, working
40 0.uppori at thre
ii idoir c~ty,urIel ndt Ie ' Trade barriers in high-income countries cost together, can do much to reduce the costs to
, tutvlevel and croolD
ifr*atin ,ieh other developing countries over $100 billion a year developing countries of managing aid programs in
___sr in a piogram of Trade restrictions set by the high-income members areas ranging from strategy and medium-term
g~al monitoring ana of the Organisation for Economic Co-operation financing to procurement and evaluation Recent
- .!epao,ing and Development (OECD) offset the benefit of progress in untying aid and procurement will pro-
, ' N5 ' 2 their aid contributions (See left figure below.) mote efficiency.
The Welfare Costs of Tariffs in 1995 Trends in Social Spending before and Net Official Development Assistance as
after Assistance under the Heavily Percent of Gross National Income
Indebted Poor Countries Initiative
08
Tariffs on Trade 7,000 7 0% 7 0 Social 0 7 Goal= 0 7%
spending,
percent 0.6
58% $6,000 of GDP.
From high-.ncome From a.noingto right axis 0.5
to hrgh--ncome high1incomecounn 0.5
co.ntrla S49 6 billion
$96 6 blillion.. $4,278 rlSca 0 4
3,500 3 5 spending, France
in millions 03Japan
of dollars, 3
left axis ~ ~O~ Germany
0 2 Average all DAC membe
6- ~~~~~~~~~~~~~~~~~~~~~0 1 United States
0 - _ _ _ _ _ _ - 00 0.C
Before HIPC After HIPC OSt 1991 1992 193 1994 inns *9s 1997 I9 1999 2000
(1999) (2001-02)
Source World Bank 2001 World Development Source World Bank 2001 World Development Indicators,
Indicators, 2001 Washington, D C 2001 Washington, D C
8 The World Bank Annual Report 2001
Meeting the Poverty Challenge: The World Bank's Strategy
...and that the World Bank sharpen its strategy...
WORLD BANK MISSION
Poverty reduction is the World Bank's mission, guided by the international development goals. In pursuit of
poverty reduction, the World Bank will rely on its business approach and institutional strengths.
Business approach: Institutional strengths:
A long-term, comprehensive, country-led Financial strength
approach to development Global reach
Participatory development and partnership Broad diagnostic capabilities
A focus on operational quality, development Operational knowledge
effectiveness, and outcomes Strong partnerships with clients, other donors,
Knowledge sharing and capacity building and civil society
Increasing selectivity within countries, across
countries, and at the global level
BANK ASSISTANCE WILL BE DELIVERED PRIMARILY AT THE COUNTRY LEVEL, FOCUSED ON:
Building the climate for investment, Empowering poor people to participate in
jobs, and growth development, and investing in them
Private investment climate Empowerment, security, and social inclusion
Public sector governance Education
Health
For low-income countries, priority areas of For middle-income countries, priority themes
assistance will be. of assistance will be:
Where poverty is concentrated - Policy and institutional reform for reducing
Where the policy environment is favorable for poverty
poverty reduction Well-targeted, high-impact investments
Where post-conflict challenges are urgent Promoting competitiveness in the global knowl-
edge economy
BANK SUPPORT FOR INTERNATIONAL EFFORTS TO PROVIDE CRITICAL GLOBAL PUBLIC GOODS WILL
FOCUS ON:
Communicable diseases Information and knowledge
Environmental commons International financial architecture
Trade and integration
The World Bank Annual Report 2001 9
Meeting the Poverty Challenge: The Role of IBRD
... re&ying on the unique strengths of WIBRO...
IBRD provides important support for The Treasury 4 ' ' "
poverty reduction. How? By providing i [thene e i- ',
its middle-income client countries center of the
access to capital in larger volumes, on Bank's innova- .
good terms, with longer maturities, and trvenanctioal
in a more sustainable manner than the such as the b ;ir
market provides. IBRD: iJbond issued in
E Supports long-term human and social in Januaryth 2 .E
development needs that private Bank's liquid
creditors largely find unappealing. assets, manag-
O Preserves borrowers' financial sheetn sks, and What Is IBRD?
strength by providing support in meeting bond IBRD is a AAA-rated financial institution-with some unusual charac-
crisis periods, when poor people inavestor needst teristics. Its shareholders are sovereign governments. Its member
t X rr 1 ~~~~~~are crucial to
are most adversely affected. the Bank's abil- borrowers have a voice in setting its policies. They also usually accord
C Uses the leverage of finance to ity to respond preferred creditor status to IBRD, helping it stay financialty strong.
promote key policy and to clients'
institutional reforms (such financing needs. IBRD loans are typically accompanied by nonlending services to ensure
as y etorms more effective use of funds. Also, unlike commercial banks, it is driven
ra !sa y by a development impact, rather than profit maximization, objective.
reforms) .
El Catalyzes private capital by helping Who Are IBRD's Clients?
create a favorable investment
climate. Seventy-five percent of people who live on less than $1 per day live
C] Provides financial support (in the in countries that receive IBRD lending, which are typically middle-
form of grants made available from income and enjoy some access to private capital markets but include
IBRD net income) for global public countries that also borrow from IDA. Even excluding countries that
goods that are critical for the well- also borrow from IDA, such as India, Indonesia, Nigeria, and Pakistan,
being of poor people in all countries. j a full 25 percent of the world's $1-a-day poor live in countries that
are IBRD borrowers.
Elements of IBRD's Financial Strategy
Preserving AAA-rated financial strength Achieving efficient Intermediation Adapting to borrower needs
To maintain income-generating capacity, To ensure cost-effective funding for To ensure flexibility and innovation in
help manage risk, and support IBRD's development uses meeting diverse and changing client
development objectives needs
O Capital commitments of 183 0 Wide access to markets 0 Product innovations to help clients
sovereign shareholders 0 50 years of capital market innovation manage their financial, debt, and
O Strong record of repayment by 0 Leadership in new products, crisis strategies
borrowers, reflecting priority given structured finance, emerging market 0 Wide borrower choice in loan types
to IBRD debt issuance 0 Increasing currency and interest rate
O Conservative financial management 0 Wide underwriter partnerships choice
O Substantial liquidity 0 Diversified global investor base 0 Flexible guarantees, both to help
O Conservative capital structure 0 Ample Treasury liquidity private sector financing and to
O Risk-minimizing lending policies 0 Strong derivatives capacity support reforms
0 Active asset-liability management 0 Increased choice of lending terms
10 The World Bank Annual Report 2001
Meeting the Poverty Challenge: The Role of IDA
...and on IDA as an agent for progress in the poorest countries
IDA helps the world's poorest countries reduce IDA'S EVOLVING ROLE: GREATER EMPHASIS ON
poverty by providing "credits," which are loans at PARTICIPATION AND PARTNERSHIPS
zero interest with a 10-year grace period and maturi-
ties of 35 to 40 years These countries face complex Responding to recent changes I the internatlonal
challenges in striving for progress toward the inter- development environment, IDA works more closely
national development goals They must, for example, with borrowers and other development partners The
respond to the competitive pressures as well as Poverty Reduction Strategy Papers, prepared in a
opportunities of globalization, arrest the spread of participatory manner by IDA countries, offer an
HIV/AIDS, and prevent conflict or deal with its opportunty to align donor strategies more closely
aftermath To help these countries improve their with country strategies.
prospects, the policy framework emphasizes The Bank took important steps i the spring of
. Accelerating broad-based growth through sound 2001 to increase transparency and broaden partici-
macroeconomic and sectoral policies, especially pation in the formulation of IDA's operational
for rural and private sector development. approaches Documents for the donor meetings on
Investing in people through strong support for the 13th Replenishment of IDA (IDA- 13)-which
the social sectors (see figure), including gender will fund lending in fiscal 2003-05-are publicly
mainstreaming and efforts to counter the chal- available at www.worldbank.org/ida t And in
lenge and social impact of communicable dis- June 2001, for the first time in IDA's 41-year history,
eases, especially HIV/AIDS. representatives of borrowing countries joined donors
Building capacity for improving governance- in discussions about IDA's future directions.
including in public expenditure management-
and combating corruption.
Protecting the environment for sustainable IDA's Stepped-up Effort in the Social Sectors
development 285 Projects ongoing (compared with 184 a decade ago)
- Fostering recovery in post-conflict countries
Promoting trade and regional integration.
300
Water supply
l E and sanitation
X ('1 : 63 Social protection
E 200 52
IRlb ( gSl 1|3 (iES 3 1) e e 81 6 Health, nutrition,
81 and population
wxai0Jsroi l IDdfbaaaald Ii-i1btiioIs 0 100 50
3f80 85 88 Education
[ I G [ ( @ �~1 c -1991 1996 _ 2001
556603 xo}4i.~. ~ As of June 30
- ~~~~~~~~~~~~1
-IDA commitmht-valueof ongoing social sector projects
1991. $7.7 billion
1996. $13 1 billion
2001 $13 9 billion
The World Bank Annual Report 2001
The World Bank in Fiscal Year 2001
El C,~~~~~~~~~~~~~~
I-"--
A~~~~~~~~~~~~~
.,~~~~~~~~~~~~~~~~~~~~~~~~~~~6 � \S o .
X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~oo a F F arigi
Th. d-hn(.m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ CA
|urt . mq~E n u e
Countries Eligible for IDA Funds Only~~~~~~~~~~~~~~~~~~~~~~~~~~~~o.hFV~II A
1h 2 Th Worl BakAnulRpot20
d~~~~~~~~~~~~~~~~~~~~~~~~~~ bo
Mo ountries Agoibl for.WoI IBDFndony* fieno h ord.
_l ,pd Inoctiv I I Dn A -Eiil Countnos
Conre1lgbe2a BDFnsOny*Ofcso The World Bank Ana eot20
IBRD 31362
AUGUST 2DOtffi uX
0
Vd-
CW
'oAova k/;(3Xao. okho[Bimndo
nd~~~~~~~~~~~~~~~~~~~~~~~~n of fica 2001[7 Bolvi beam liibefo R
~ k.b bi10/0Rw Chlo N
in adito toIAfns;FRM cdni rdae
Thf rap refleccs e th following dekiant a theF
Republ of fisal200goidvia became eligible for IBD indo G
Tanomn~~S ,Cinnadtonto IDAhnds;YRMaeonia 0rad0te
Maddition to IBRD funds.
s P~lease see the Office Locations and Country ofX �xt(
sigibility for Borrowing from The World Bank tables
on pages 135 and 139, respectively.
Please ~~ ~i se te ffc Lcaiosan Cunr
The World Bank Group
The World Bank, with a The International Bank for The International Development
Reconstruction and Development Association
mission to fight poverty Established 1945 ' 183 Members Established 1960 :X 162 Members
Cumulative lending: $360 billion Cumulative lending: $127 billion
and improve living Fiscal 2001 lending: $10.5 billion for Fiscal 2001 lending: $6.8 billion for
91 new operations in 36 countries 134 new operations in 57 countries
standards for people in
the developing world, --I
is among the world's
leading development
institutions. It provides 7
loans, policy advice, i J J I
technical assistance, j _ n - _ - .J
and knowledge-sharing Ambulances, fumished by Bulgaria's Health Newly literate Bangladeshi women leam to
Sector Restructuring Project, stand ready to utilize their new skills toward better employ-
services. I BRD and IDA- provide emergency service in Sofia, The project, ment and income-generating opportunities
which has also trained physicians and emer- under the Post-Literacy and Continuing
together the "World gency personnel, has dramatically reduced the Education for Human Development Project,
to geth e r th e "World mortality rate in emergency service cases, which targets 1.6 million of the country's
resulting in more than 2,300 lives saved a year poorest, half of them women.
Bank"-are owned by
IBRD aims to reduce poverty in Contributions to IDA enable the
member countries that middle-income and creditworthy World Bank to provide $6-7 bil-
poorer countries by promoting sus- lion per year in interest-free cred-
carry ultimate decision- tainable development, through its to the world's 78 poorest
loans, guarantees, and nonlend- countries, home to 2.4 billion peo-
making power. The ing-including analytical and advi- ple. This support is vital because
sory-services. IBRD does not these countries have little or no
World Bank Group today maximize profit but has earned a capacity to borrow on market
net income each year since 1948. terms. In most of these countries
consists of five closely Its profits fund several develop- incomes average under just $500 a
mental activities and ensure finan- year per person, and many people
associated institutions. cial strength, which enables survive on much less. IDA helps
low-cost borrowings in capital provide access to better basic serv-
markets, and good terms for bor- ices (such as education, health
rowing clients. Owned by member care, and clean water and sanita-
countries, IBRD links voting tion) and supports reforms and
power to members' capital sub- investments aimed at productivity
scriptions-in turn based on a growth and employment creation.
country's relative economic
strength.
14 The World Bank Annual Report 2001
Pg, ,IC
The International Finance The Multilateral Investment The International Centre for
Corporation Guarantee Agency Settlement of Investment
Disputes
Established 1956 F] 175 Members Established 1988 D:1 154 Members
Committed portfolio $21 8 billion* Cumulative guarantees issued Established 1966 [ 134 Members
Fiscal 2001 commitments $9 1 billion Total cases registered 87
$3 9 billiont in 205 companies for Fiscal 2001 guarantees issued Fiscal 2001 cases registered 12
74 countries $2 billion
a -1.,
Women at the Liki River Farm in Kenya pack Children in San Marcos, Peru, attend a com- A port terminal concession in Argentina was
vegetables for export Pnvate sector businesses puter leaming session at a training center cre- among the matters settled in ICSID dunng
like this one provide jobs that help improve ated and operated by a project benefiting from fiscal 2001
lives and contribute to economic strength and MIGA guarantees
stability
IFC's mandate is to further eco- MIGA helps encourage foreign ICSID helps to encourage foreign
nomic development through the investment in developing countries investment by providing interna-
private sector. Working with busi- by providing guarantees to foreign tional facilities for conciliation and
ness partners, it invests in sustain- investors against losses caused by arbitration of investment disputes,
able private enterprises in noncommercial nsks, such as in this way helping to foster an
developing countries and provides expropriation, currency inconvert- atmosphere of mutual confidence
long-term loans, guarantees, and ibility and transfer restrictions, between states and foreign
risk management and advisory and war and civil disturbances investors. Many international
services to its clients IFC invests Furthermore, MICA provides agreements concerning investment
in projects in regions and sectors technical assistance to help coun- refer to ICSID's arbitration facili-
underserved by private investment tries disseminate information on ties ICSID also has research and
and finds new ways to develop investment opportunities. The publishing activities in the areas of
promising opportunities in markets agency also offers investment dis- arbitration law and foreign invest-
deemed too risky by commercial pute mediation on request. ment law
investors in the absence of IFC
participation
Includes syndications, $14 3 billion for own account
t Includes svndications, $2 7 billion for own account
The World Bank Annual Report 2001 15
IBRD Financial Results
Net Return on Assets Equity-to-Loans Ratio as of June 30, 2001 Borrowings and Investments
(percent) (percent) as of June 30, 2001
(billions of dollars)
1 5 1.34 24 118 6 14 0 111st
~~~~~~~~~~~~~~~~~~~~~~~~~~0 :< 2 9 12 ~21 .5 1n4 973d
207H
1.0 1.05 0.87 Bor ow ngs
0 96 outUUndingt
0.78 *Cash and (quid
18 3 248 30 1 24 3 24.4
0.01 ________________I_____I__ __I_____I_____I_____I_
FY97 FY98 FY99 FY00 FY0I' FY97 FY98 FY99 FY00 FY01 FY97 FY98 FY99 FY00 FY01
MANAGING RETURNS TO MAINTAIN MANAGING RISK ACHIEVING EFFICIENT
STRENGTH INTERMEDIATION
As a cooperative institution, IBRD Consistent with its development IBRD's high credit rating (AAA)
does not seek to maximize profit mandate, IBRD's main risk is the allows the Bank to borrow for long
but to earn a return on assets suffi- credit risk of its loan portfolio. This maturities at favorable terms. The
cdent to ensure its financial risk is closely managed. Bank borrows globally in multiple
strength and sustain its develop- IBRD keeps its exposure to market markets and currencies.
ment activities on an ongoing basis. risk quite limited. Market risk Outstanding debt after swaps
IBRD achieves a net return on assets arises due to movements in market reached 76 percent of average total
of about 1 percent per annum. In fis- variables, such as interest rates and earning assets, as of June 30, 2001.
cal 2001, an increase in loan loss exchange rates. As of June 30, 2001, the liquid
provision reduced net return on IBRD's equity-to-loans ratio is a asset portfolio was $24.2 billion,
assets, to under 1 percent. summary measure of its risk- composed of liquid investments.
beanng capacity. The ratio Is con-
*In fiscal 2001 IBRD adopted Statement of Financial beran te managet. d rin ig of t Outstanding borrowings, net of swaps
Accounting Standard No 133 and International servatively managed In light of
Accounting Standard No 39, which required that IBRD's financial and risk outlook.
derivative instruments be reported at fair value
Without adoption of these standards, the ratio
would have been 0 78
Selected IBRD Financial Data
(millions of dollars)
F.scl20i Fiscal 2000
For the fiscal year a
Income from loans 8,153
Income from investments 1,589
Borrowing expenses (7,128)
Administrative expenses (935)
Other 312
Net income . 1,991
Loan commitments ItV 10,919
Loan disbursements 13,332
At fiscal year-enda
Cash and liquid investments _ 24,331
Loans outstanding 120,104
Borrowings outstanding (1 14,012)b
Equity l (29,289)
a Excerpted from the audited financial statements presented in volume 2 of this Annua/ Report
b Outstanding borrowings, net of swaps
16 The World Bank Annual Report 2001
Where the World Bank Got Its Money in Fiscal 2001
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT Where Do IBRDs Proffts Go?
In fiscal 2001 IBRD raised $17 billion, before IBRD's net income serves several purposes related to Its mission:
swaps, at medium- to long-term maturities, in inter- A portion of net Income is retained annually to ensure IBRD's
national debt capital markets. Borrowings and financial Integrity. The General Reserve allows IBRD to assume
shareholder equity fund IBRD's loans and invest- credit risk in lending to countries at the lowest funding costs-
ments.
Then yea's. fund ng v lume was abov tha of is-which In turn benefits borrowers. Income retention has enabled
cal 2000, after peaking in fiscal 1998 due to IBRD to maintain financial soundness through periods of deterio-
cabov-av era demakn for fincan cin rating loan quality as well as surging ioan demand.
abRD'sefa nial sem ng isa n te uo. Support to IDA has consistently been a priority. Over the last five
it receives from its shareholders and on its array years, $1.6 billion (or about 22 percent of IBRD net income) has
of financial policies and practices. been transferred to IDA.
IBRD issued debt in nine currencies and in a SupportfortheHeavilyIndebtedPoorCountrIes(HiC)iniative
wide range of maturities and structures in fiscal has atso been Important. Over the last five years transfers to the
2001. Diversification helps lower borrowers' HIPC Trust Fund have amounted to a total of $900 million, aver-
funding costs and expands IBRD's investor base. aging about 12 percent of annual IBRD net income.
IBRD's net Income helps meet other developmentat needs from
time to time. it enables IBRD to respond to unforeseen humani-
INTERNATIONAL DEVELOPMENT ASSOCIATION tarian crises and provide grants or other support for worthy
IDA donors come together every three years to causes. IBRD also regularly shares Income with its borrowing
decide on the amount of new resources required members through partial waivers of the interest and commitment
to fund IDAs future lending program and to dis- fees it contractually charges on its loans.
cuss lending policies and priorities. Financial strength and standing In the markets allow IBRD to
Fiscal 2001 was the second year of the 12th leverage its equity by five times in the international bond
Replenishment of IDA. IDA- 12 is designed to pro- markets. This leverage increases IBRD's ability to lend for
vide IDA with resources to fund credits committed developmental activities.
during the period July 1, 1999, to June 30, 2002.
Nearly 40 countries are IDA donors. Donor nations
include not only industrial countries but also devel- Allocation of Fiscal 2001 Net Operating Income
oping and transition countries-some of them IBRD of S1.1 billion
borrowers and former IDA borrowers-such as (millions of dollars)
Argentina, Brazil, Hungary, the Republic of Korea,
the Russian Federation, and Turkey (see page 35). 69
IDAs financial strength is based on the strong and
continued support of its donors as well as reflows.
Sources of IDA funding
(billions of dollars) Reserve IDA
150 618
81 0 1 reouc6
110 fl.<*IDA own
7 s . 6 o 11 ~~~~resources' ns o
U fiOR Reserve t
net income 155
4.1 contribution
O 9 _ 12 O 9 . 3 ~~~New funding
0.9 1 1 2 0.9 'An additional amount of 531 million was allocated to the HIPC Trust Fund out
of the surplus account consisting of a portion of prior years net operating
IDA-10 IDA-li IDA-12 income
FY94-96 FY97-99 FYOO-02 tPension Reserve is used exclusively for the income derived from the difference
between actual funding of the Staff Retirement Plan and the accounting
'IDA Own Resources includes pnncipal repayments, service charges, and investment income expense atsociated with it, required by GAAP These funds are not 'allocable
The World Bank Annual Report 2001 17
IBRD Operational Results
LENDING: QUALITY UP, VOLUME STABLE Human development was a high priority in fiscal
2001, the share of education, health/nutrition/
Therqui f onoD operts contrinue tO population, and social protection lending in total
Improve fewer ongoing projects were at risk of IBRD lending increased to 21 percent ($2.2 bil-
not achievig their development objectves com- lion) from 16 percent ($1 7 billion) in fiscal
pared wlth last year. 2000 Most of the increase was concentrated in
The portfolio of ongoing projects (713) was the LAC Region
smaller than last year's (764), reflecting a IBRD lendig also helped borrowers to
decline in approvals of new operations (91 strengthen their flnancial sector ($1 7 billion)
approved in fiscal 2001 compared with an imre pubic sector ($1 4 bil-
annual average of 130 in the last five years) and lion), meet infrastructure needs ($2.7 billon,
efforts to ensure the timely completion of proj- including $2.4 billion in the transport sector),
ects under implementation. and support the envilronment and rural develop-
As access to international capital markets contin- ment ($1.3 billion)
ued to improve for many countries, IBRD lend-
ing stabilized at slightly below last year's $10 9
billion. ECONOMIC AND SECTOR WORK (ESW)
The share of adjustment lending continued to
decline (38 percent in fiscal 2001, down from 41 In fiscal 2001, 230 ESW products were deliv-
percent in fiscal 2000 and 63 percent in fiscal ered for IBRD-eligible countries-including 38
1999), approaching pre-East Asia crisis levels. core diagnostic reports underpinning Country
Assistance Strategies and adjustment lending
(poverty assessments, country economic memo-
randa, public expenditure reviews, country finan-
New IBRD lending commitments in fiscal 2001 cial accountability assessments, and country
were highest for the Latin America and the procurement assessments)-compared with 259
Caribbean (LAC) Region ($4.8 billion), followed products in fiscal 2000.
by the Europe and Central Asia (ECA) Region In addition, reports on the financial sector, rural
($2 2 billion) development, social protection, and other sectors
Latin American countries also accounted for enhanced the design of projects and supported
close to 69 percent of IBRD's adjustment lend- the dialogue on policy and institutional priorities
ing, half of it in phased, programmatic support Twenty-seven ESW products were delivered for
for medium-term policy reform and institution- India, the year's largest IBRD borrower. The
building efforts (for example, fiscal and financial ECA Region accounted for nearly 40 percent of
reform in Brazil, social sector reform in Peru, ESW deliveries, with 44 country studies supple-
and bank restructuring in Jamaica). mented by 30 regional reports focusing on topics
such as education, enterprise restructuring, and
accession to the European Union.
IBRD Lending Commitments and IBRD Lending by Region, Fiscal 2001 IBRD Lending by Sector, Fiscal 2001
Disbursements, Fiscal 1997-2001 Share of total lending of $10.5 billion Share of total lending of $10.5 billion
(billions of dollars)
24 22 2 East Asia Urban Otherb
21 1 and Pacific Development 8%
commitments ~~~~~~~~11% 2% Human
Public Sector -evelopment
145 192 182 Latin America Manage ment 21
Disbursements Q 118 and theCaribbean SouthAsia 13%t
14 0 46% 19% Finance and
109 5 Private Sector
Afric ~~~~~~~~~~~~~~~~~~~Development
Africa <^ jurope and Infrastructure' 17%
0% ~~~~~Europe and 26%comi
O Central Asia Economic
Middle East and 21% Agriculture and 10%
FY97 FY98 FY99 FYOO FY01 North AfrPca Environment
3% 12%
Note See table 1 1, page 26
a Includes transportation, telecommunications, and water supply and sanitation
b Includes multisector, electric power and other energy, oil and gas, and mining
18 The World Bank Annual Report 2001
IDA Operational Results
LENDING: QUALITY UP, VOLUME UP Ethiopia was the largest IDA borrower in fiscal
F7 The quality of ongoing IDA operations continued 2001 ($667 million), followed by Vietnam ($629
to improve, with fewer projects at risk than last million) and India ($520 million).
year. a IDA support for human development-educa-
Ye ar tion, health/nutrition/population (including
li The size of IDA's active project portfolio HI/IS,adsca rtcinrahd$.
increased to 735 from 729 in fiscal 2000 as a HIV/AIDS), and social protechon-reached $2.2
result of a significantly larger number of new billion (representing a $600 million increase
approvals (134 operations in fiscal 2001 com- c Other prioritdes were economic reform and pub-
pared with an annual average of 127 in the last i sectorimanagement1 il r nfrastruc-
fiv yer) lIC sector management ($1.3 billilon), infrastruc-
nIve years). ture development ($0.9 billion), finance and
compared with $4 4 bmllion In frscal 2000 private sector development ($1 billion, represent-
Compareduting withisri$4 was 4 billion in fiscale0 ing an almost $600 million increase over last
Contributing to this rise was $1 4 billion in newyer,adualevop ntndhenio-
commitments to three countries (Ethiopia, year), and rural development and the envron-
Kenya, and Pakistan) that had received no new
IDA financing in fiscal 2000.
The share of adjustment lending increased to 27 ECONOMIC AND SECTOR WORK (ESW)
percent from 16 percent in fiscal 2000 as a One hundred and five ESW products were deliv-
result of a number of large adjustment loans, ered for IDA-eligible countries in fiscal 2001,
including the first two PRSCs approved for slightly less than the previous year's total of 119
Uganda and Vietnam K Core diagnostic reports, numbering 24, covered
poverty, social and structural analysis, public
LENDING BY REGION AND SECTOR expenditure management, financial accountability
assessments, and procurement assessments, help-
r, IDA lending increased in all Regions, except in ing countries to improve governance, financial dis-
the Middle East and North Africa Region, which cipline, and the targeting of public expenditures
maintained last year's lending levels IDA lend- on poverty reduction.
ing to the Africa Region ($3.4 billion) reached 50 ' Other diagnostic and advisory reports centered on
percent of total new IDA commitments, and education and rural, social, and private sector
included several Africa-wide programs-a con- development.
certed response to the HIV/AIDS crisis, help to L J The Afnca Region accounted for 36 percent of
adjust to oil price shocks, promotion of regional total ESW deliveries, followed by South Asia (23
trade, and post-conflict reconstruction support. percent) and ECA (14 percent).
IDA Lending Commitments and IDA Lending by Region, Fiscal 2001 IDA Lending by Sector, Fiscal 2001
Disbursements, Fiscal 1997-2001 Share of total lending of $6.8 billion Share of total lending of $6.8 billion
(billions of dollars)
Latin America and UbnOhr
8 7 5 Commitments Middle East and the Caribbean Urban b
6 8 6 8 North Africa 7% Development Oh
21/, ~ ~ ~ ~ ~ ~~~~~2%Hman
60 ~~~~~~5 2 Europe adPublic Sector UDvlopment
60 central Asia Management 32%
5 6 8% ~~~~~~~~~~~~~~~~~~~~11%
4 6 Disbursements 4 4 A r n 's.t\
SuhAsia 3 Al soCa InfrastruCturea
South Asa5%14%
18%
O 18%_v__ _ __ _ _ _ _ _inance and
Agriculture' adPivate Sector
FY97 FY98 FY99 FYOO FY01 East Asia and PaEnvironmen Development
15% ~~~~~~~~~~~141' Economic Delomn
15% ~~~~~~~~~~~~~~~~~~Policy 14%Y
Note See table 1 1, page 26
a Includes transportation, telecommunications, and water supply and sanitation
b Includes multisector, electric power and other energy, oil and gas, and mining
W orld Bank Cofinancing Examples of Coflnancing In Fiscal 2001
Total projects cofinanced by the Bank and its partners numbered 131
in fiscal 2001. Examples of projects with significant cofinancing
include:
The Bolivia Programmatic Structural Adjustment Credit for
Decentralization leveraged $20 million In funds from three part-
ners: Department for International Development, United
Cofinancing * describes funds committed by official Kingdom; Sweden; and the Netherlands. Parallel cofinancing of
bilateral partners, multilateral partners, export credit $127 million came from KfW, the German Technical Assistance
agenctes, or private sources to specific Bank-funded Corporation, Denmark, the U.S. Agency for International
projects. Partners include regional development banks, Development, the Andean Development Corporation, and the
multilateral partners such as those associated with IADB.
environmental agreements, and special program mech- The Mali Education Sector Expenditure Project leveraged $154
anisms, as well as private sector actors that provide million from 15 donors: the African Development Bank, the
project financing The Bank's cofinancing figures Agence Fransaise de Developpement, the Canadian International
reflect the combining of Bank resources with those of Development Agency, Sweden, the United States, the Islamic
other donors in specific regions and sectors to support Development Bank, KfW, France, Belgium, the Netherlands,
client country activities. The wider the participation in
the cofnancin effor, the reaterthe cosensuson theNorwvay, the Organization of Petroleum Exporting Countries Fund,
the cofinancing effort, the greater the consensus on the teUie ain hlrnsFn,teUle ain
aciite an poice supprted the United Nations Children's Fund, the United Nations
Development Programme, and the World Food Program.
Cofinancing in fiscal 2001 amounted to $5.47 billion. The India PowerGrid 11 Project received $175 million of cofinanc-
Multilateral and bilateral partners contributed 85 ing from KfW.
percent of this amount. Major partners included the The West Bank and Gaza lending program is financed through
Inter-American Development Bank (IADB-$1.9 the Bank-established Trust Fund for Gaza and the West Bank.
billion); the Japan Bank for International Cooperation The fund has been allocated $380 million from the Bank's net
($0.53 billion); and Kreditanstalt fur Wiederaufbau income and since September 1994 hasfinanced 20 projectsfora
(KfW-$0.3 billion). This year's cofinancing was total of $307 million. Over $540 million has been provided in
below the previous year's level ($9 3 billion), reflecting joint and parallel cofinancing by numerous donor governments.
unusually large volumes of cofinancing in fiscal 2000
for the Chad-Cameroon Pipeline Project ($3.4 bil-
lion) and in China ($0.4 billion).
The Latin America and the Caribbean Region
accounted for the largest share of cofinancing in
fiscal 2001 ($3.4 billion), followed by Africa ($1.12
billion) and Europe and Central Asia ($0.46 billion).
The major sectors attracting cofinancing were Coflnancing Ratio
public sector management ($1.2 billion), finance Ratio of total cofinancing to World Bank lending
($1 billion), and oil and gas ($0.9 billion). (percent)
In addition to cofinancing of $5.47 billion, 60
$2 billion was committed in fiscal 2001 under the
Strategic Partnership with Africa framework. The
commitment, which reflected close donor coordina-
tion on policies in the context of Poverty Reduction 38
Strategy Papers (in Benin and Uganda, for example), 34
was above the amount committed in fiscal 2000 29
($0.51 billion).
FY98 FY99 FYOO FY01
*Data in this section represent project cofinancing estimates at the
time of project presentation to the Board and could be revised as
financing plans evolve
20 The World Bank Annual Report 2001
Trust Fund Highlights TrustJFunded Initlatives for Cllmate Change and Post-Conflict
The Prototype Carbon Fund (PCF), established with the objective of mitigating
climate change, alms to promote sustainable development, demonstrate the possi-
bilities of public-private partnerships, and offer a learning-by-doing' opportunity to
stakeholders. PCF emphasizes renewable energy and energy efficiency projects that
have potential for replication and for reducing climate change at a reasonable cost.
PCF investments wilt be made in transition economies and developing countries fol-
Trust funds are financial and administrative arrange- lowing the emerging framework of the Kyoto Protocol for its joint Implementation
ments * that facilitate grant funding of high-priority
development needs, including technical assistance and and Clean Development Mechanisms, respectively. By October 2000, the PCF had
advisory services, debt relief, post-conflict transition, subsc?ibed capital of $145 million from 17 corporate and 6 public sector partici-
and cofinancing. Trust funds help leverage poverty pants. See www.PrototypeCarbonFund.org. 6)
reduction programs by funding key due diligence activ-
ities for development operations, promoting innovative Trust funds increasingly support reconstruction and transition In post-conflict coun-
approaches, forging partnerships, and expanding the tries and regions. Bank-financed trust funds provide credits (on IDA terms) and
scope of development collaboration. grants to nonmember countries to support demobilization, help rebuild economies,
and develop key institutions. The Bank has catalyzed additional external donor
assistance to increase development Impact In post-conflict situations. Special Bank
In fiscal 2001:t credits and grants for the West Bank and Gaza, East Timor, Kosovo, and the Federal
Total contributions expanded significantly, with Republic of Yugoslavia totaled nearly $500 million in recent years, leveraged by an
increased donor support for the Heavily Indebted additional S1 billion in grants from the larger donor community.
Poor Countries (HIPC) Initiative, a new Japan
Social Development Fund (JSDF) to help poor
and vulnerable groups hurt by crisis, a trust fund
for the Federal Republic of Yugoslavia, and major
technical assistance and cofinancing projects.
Contributions to Bank-Administered Trust Funds,
Contributions totaled $2,719 million, comprising Fiscal 1997-2001
$1,450 million from bilateral donors, $1,225 mil- (millions of dollars)
lion from multilateral donors, and $44 million
from private sector and nongovernmental organi- 3,000
zations. 2,719
Major contributions were provided by the 2,500 Bank Group
European Community ($757 million), the World 2 000 1,927
Bank Group ($422 million), Japan ($277 mil- 1,769
lion), and the Netherlands ($235 million). 1,500 1,544 1,568
Contributions to ongoing, global programs External donors
financed by Japan and the Netherlands included 1,268 1,153 1368 1,359 2,297
$93 million for the JSDF, $59 million for the 500 s
Japan Policy and Human Resources Development l
(PHRD) Fund, and $60 million for the Bank- 0 _ _
Netherlands Partnership Program. 1997 1998 1999 2000 2001
Disbursements totaled $1.85 billion with $988
million attributable to three large programs:
HIPC, the Global Environment Facility and the
PHRD Fund.
* Trust funds are accounted for separately from the Bank's own resources and are defined through formal agreements between the Bank, external
donors, and the recipients who receive grant funding.
t The financial information presented for the trust fund portfolio reflects reporting on an accrual basis for contributions to the Heavily Indebted Poor
Countries (HIPC) Trust Fund, and reporting on a cash basis for contributions to all other trust funds. The differential between contributions reported on
an accrual and cash basis totaled $536 million in fiscal 2001,(S16) million in fiscal 2000, $233 million in fiscal 1999, and $80 million in fiscal 1998.
Disbursements for all trust funds, including the HIPC Trust Fund, are reported on a cash basis.
The World Bank Annual Report 2001 21
The World Bank's Active Portfolio of Projects under Implementation at
June 30, 2001
EVOLVING PRIORITIES TURNING THE PORTFOLIO AROUND:
TWO EXAMPLES
Th.e World Bank's project portfolio of $105 bllion
The World Bank's project portfolio of billion Water and Sanitation Sector. Five years ago, about half
at the end of fiscal 2001 comprised 1,553 ongoing the Water and Sanitation portfolio was at risk, and prob-
projects, nearly a quarter of them in Africa. lem projects accounted for nearly a quarter of the portfo-
Measured in dollars as well as number of projects, the lo. At the end of fiscal 2001, only 15 percent of projects
distribution of the portfolio highlights the Bank's sus- Th
tained emphasis on investments in people, rural were at risk e radical Improvement has resulted from
development with an environmental focus, and A shft lendmg away from publc sector utilities that
infrastructure and institution building needed to rome reor and toad uli tht h ave
help countries attract private investment and reduce reformed io to Bak runing and
sector talent into their operations, and
The share of the portfolo i the energy as well as the The Bank's adoption of a proactive approach toward
The har ofthe ortoli in he nery aswel asthe problem projects, including quantitative performance
oil and gas sectors has fallen sharply over the past five proem proects ri g qantitativ o
years, reflecting countries' success in attracting pri- g g g
vate and other lenders into those sectors and the Africa Region. Operations in the Afnca Region have histor-
Bank's focus on policy and institutional reform -averageors methe ofnc onfhavelated
Countnes with od policy and institutional envi- ically faced above-average nsk because of conflict-related
ronments account for a markedly higher share of the cnses, political instability, and weak govemance Despite
poretfoli todayurelti tora fcardly 1996er shareofthe these risks, the quality of the region's portfolio has improved
portfolio today relative to fiscal 1996 makdyXs euto
Support for countries' efforts to combat corruption as a resultof
and HIV/AIDS has been mainstreamed and is today Lnoking new lending to resolutiton of outstandng problems,
more than double what It was in fiscal 1996 Providing staff wilth real-time data on portfolio quality,
more tan doble wat it as infisca 1996Tackling cross-cutting problems in risky projects
The Bank continues to be a leader in providing recon- taclig couttin reminrsk
struction assistance following natural disasters, with through country- oreiews,
growing attention to disaster prevention In the last five Usig local staff In country offices to strengthen over-
years, lending for reconstruction totaled nearly $5 billion, silght, and
and while difficult to quantify precisely, disaster preven- Filitatingpl invole a
tion lending is approaching similar levels sight of the Bank's portfolio
Portfolio management by decentralized country
office staff has increased significantly, strengthening
the Bank's responsiveness to client needs and improv-
ing portfolio health.
Project Portfolio by Region, Project Portfolio by Sector, Projects at Risk of Not Achieving Development
June 30, 2001 June 30, 2001 Objectives, Africa Region
Share of total $105.4 billion Share of total $105.4 billion (percent)
35%
Urban Agriculture and
South Asia 17% - -Africa14% Development 6% Environment
Middle East and infrastructure' Economic
North Africa 23% Policy 15%
6% 3%
and Pacific Public Sector
Latin America and 26% Management 4% DevlHuman
the Caribbean P Finance and Development
22% Europe and Private Sector Otherb 23%
Central Asia 15% Development 14% FY96 FYO1
6%
a Includes transportation, telecommunications, and water supply and sanitation
b Includes multisector, electric power and other energy, oil and gas, and mining
Source Quality Assurance Group
22 The World Bank Annual Report 2001
The Quality of the World Bank's Operations:
Sustained Improvement
Following five years of solid improvement, the develop- Findings of the Bank's Annual Report on Portfolio
ment nskiness of the Banks portfolio has been cut in Performance include improved relevance of Bank
half and is now the lowest it has been in many years. assistance, consulting of stakeholders, attention to
As a result, some $16 billion of loans and credits are likely social and environmental impacts, oversight of
now better positioned to deliver results Improvements fiduciary aspects, collaboration with partners, and
over the five-year penod have been broad based, cover- focus on results and problem solving. Building on
ing virtually all regions and sectors. progress and sustaining efforts will be crucial
The quality of projects under implementation has improved substantiallya...
Satisfactory Quality at Entry Satisfactory Quality of Supervision Projects at Risk of Not Achieving
(percent of total projects) (percent of total projects) Development Objectives
(percent of total projects)
92 92
82 L'
29
CY97 CYOO FY97 FY00 FY96 FY01
The quality of economic and sector analytical work is also improvinga...
Economic and Sector Work
(percent)
86
72
FY98 FY00
These gains are beginning to show up In independent evaluations of projects that have closedb
Satisfactory Outcomes Projects with Substantial Institutional Projects Whose Sustainability Is Likely
(percent of total) Development Impact (percent of total)
78 78 78 (percent of total) 71
5653 5
43 U
III I ' Iii L Disbursements
FY96 FY00 FY96 FY00 FY96 FY00
a Data refer to the evaluation assessments by the Quality Assurance Group of a sample of recently approved and ongoing protects each year Historical year shown represents
the first year for which data are available Calendar year figures are preliminary
b Data refer to ndependent evaluation assessments by the Operations Evaluation Department (OED) of projects that have completed their loan disbursement phase and have
exited the Bank's active lending portfolio Results for fiscal 2000 exits are preliminary, based on all currently available independent assessments, covering roughly 45 percent, as
reported in the Annual Report for Development Effectiveness 2000
The World Bank Annual Report 2001 23
Chapter i
Overview of World Bank Activities in Fiscal 2001
In fiscal 2001 the World Bank intensified its efforts cent, with China leading the decline. In at least 25
to help countries fight poverty It accelerated sup- developing countries, infant mortality rates have been
port-jointly with the IMF-to help the world's declining, putting them within likely reach of the
poorest countries prepare poverty reduction strate- 2015 infant mortality goal. The gaps between girls'
gies, thus advancing their eligibility for significant and boys' enrollments have narrowed. But other data
debt relief. It heightened collaboration with global are sobering: estimates show that more than 113 mil-
partners around the international development goals lion children remain out of school, 150 million chil-
to enhance prospects for their achievement and, in dren remain underweight, and maternal deaths
particular, to strengthen the fight against HIV/AIDS. average 440 per 100,000 in developing countries
And it articulated a new Strategic Framework that (compared with 21 in high-income countries)
clarifies the key strategic directions of the Bank and HIV/AIDS continues to present a formidable ob-
emphasizes the need to consolidate and build on the stacle to reaching the goals, although a few countries
significant progress of recent years. are beginning to reap successes from prevention pro-
grams. And many countries, on present trends, are not
GLOBAL CONTEXT: SLOWING RECOVERY, SLOW on track to halving their poverty incidence by 2015.
PROGRESS ON POVERTY REDUCTION
During 2000, the world economy continued its FISCAL 2001 ASSISTANCE: FOCUS ON POVERTY,
remarkable recovery from the 1997-98 financial cri- QUALITY
sis, but momentum faded as the year progressed. Higher lending volumes and special financing. At
GDP growth of developing countries averaged 5.4 $17.3 billion, new lending in fiscal 2001 was mod-
percent in 2000, a shade above the previous year. estly above the previous year's level for IBRD and
The fastest-growing region was East Asia and IDA combined (table 1.1). The increase resulted
Pacific, at 7.5 percent, Sub-Saharan Africa trailed from higher IDA lending to Africa, consistent with
with 2.7 percent growth. South Asia continued on a IDA-12 goals and in particular to respond to the
steady growth path despite a major earthquake in HIV/AIDS crisis, post-conflict situations, and oil
India Accelerated reform also helped growth in price shocks A multicountry, fast-track program for
Europe and Central Asia's developing countries, Africa to intensify the fight against HIV/AIDS
boosted by the rise of Russian oil revenues to a deserves special mention for its innovativeness as
record level, resolving setbacks to financial stability well as scope for scaling up development impact
and attracting private investment remain challenges (box 1.1). Overall, new IDA lending focused on
for the region Latin America, on the whole, also investments aimed at reducing poverty, including
recovered well, benefiting from a return to stability investments in the social sectors and rural and
of global financial markets. Growth in the Middle community-driven development. Demand from
East and North Africa continued, but serious chal- IBRD borrowers, particularly in Europe and Central
lenges include the continued political uncertainty Asia and Latin America, was centered on strength-
and high unemployment in the region. For the world ening financial sectors, investing in people, improv-
as a whole, slower growth is expected for 2001. ing public sector management, and addressing needs
Progress on poverty reduction has been slow, in the transport sector. Institution building remained
and the challenge of the international development a strong priority. With respect to the number of
goals remains immense (see page 4) Prospects for projects, the year's total of 225 was about the same
success, in some areas, are improving, however as last year, with IDA operations reaching a first-
Between 1990 and 1998 the proportion of people liv- time-ever 60 percent of the total. The average size
ing in extreme poverty fell from 29 percent to 23 per- of operations increased to $77 million in fiscal 2001
Overview 25
Table i.i World Bank Lending by Sector, Fiscal 1992-2001
(millions of dollars)
Classified on a Classified on a
loan-by-loan basisa,d loan component basisb
Sector FY92-97 FY98-99C FY00 FY01 FY00 FY01
Annual Annual
Average Average
Agriculture 2,9133 2,700 0 1,336.7 1,4568 1,150 0 1,448 4
Economic policy 2,339.6 5,812 7 1,286 7 1,323 8 1,301 0 652 0
Education 1,724 6 2,231 9 6840 794 1 762.3 1,143 4
Electric power and other energy 2,547.2 1,253.6 994 2 824 4 990 5 944 9
Environment 738.3 711 5 514 1 515 9 918 8 791 2
Finance 1,632 5 4,247 6 1,676 5 2,231 3 1,774 0 2,231 7
Mining 218 1 845 8 54 5 36.0 20 0 36.0
Multisector 140 0 504.6 654 5 50 1 513 5 5 0
Oil and gas 550 9 78 8 167 0 81 6 166 7 155 1
Health, nutrition, and population 1,263 9 1,549 0 987 0 1,047 8e 1,044.3 1,343 3e
Private sector development 774 7 723 5 163 9 507 3 207.3 556 6
Public sector management 600 6 1,280 1 2,442 5 2,570.6 1,868.3 2,115 0
Social protection 757 2 2,190.4 990 0 1,672 5 1,517 9 1,882 7
Telecommunications 261 1 90 7 109 3 65 0 1094 64 2
Transportation 3,060.2 3,183 1 1,690 0 2,969.9 1,612.3 3,024 6
Urban development 1,112 9 9104 621 7 549.5 699.5 317.3
Water supply and sanitation 908 0 481 3 903 6 554 0 620 5 539 2
Total 21,543.1 28,795.0c 15,276.2 17,250.69 15,276.3 17,250.69
Of which
IBRD 15,368 4 21,634 3 10,918 7 10,487 1
IDA 6,174 7 7,160.7f 4,357.6 6,763 5f
Note Numbers may not add to totals because of rounding Please see appendix 10 in volume 2 for detailed IBRD and IDA lending by sector
a To better capture the evolving nature of Bank operations, the Bank's sector classification system is reviewed and changed as appropriate In fiscal 2000, two new
sector categories were created (Economic Policy and Private Sector Development) and one sector category was dropped (Industry) Economic Policy comprises oper-
ations that support macroeconomic poiicy, trade, and other economic and institutional reforms It includes structural adjustment operations previously assigned to
Multisector and some operations previousiy assigned to Finance Private Sector Development comprises operations dealing with the business environment, private
infrastructure, small scale enterprise, and privatization issues As such, it includes some operations previously assigned to Industry and to Public Sector Management
Other operations previously included under Industry have been assigned to the Public Sector Management sector In addition, a few individual operations approved
in fiscal 1998-99 were reassigned, including a fiscal 1999 project from Agriculture to Water Supply and Sanitation
b This column shows lending by sector, based on a classification by major loan component The example of a $100 million public sector loan,with components
aimed at addressing environmental, financial, and social protection needs, serves as an illustration In the case of loan-by-loan classification, the full amount of the
loan appears in the Public Sector Management sector, in the component classification, the full amount is split among the four sectors-Public Sector Management,
Environment, Finance, and Social Protection As a result, total lending of $1,882 7 million for Social Protection in the component classification is the sum of all
social protection components within loans approved in fiscal 2001
c Bank lending in fiscal 1998 and 1999 are presented together, the two being exceptional years due to the East Asia financial crisis
d The data in last year's Annual Report were slightly revised in fiscal 2001
e Includes $287 2 million in IDA credits to seven countries under the Multi-country HIV/AIDS Program for Africa, and $40 1 million in IBRD loans to two countries
under the Caribbean HIV/AIDS Initiative, for which the Bank earmarked funding of $500 million and $155 million, respectively, in fiscal 2001
f Excludes IDA HIPC grants of $75 million to Uganda in fiscal 1998, $154 million to Mozambique in fiscal 1999, and $37 million and $64 million to Honduras and
Cameroon, respectively, in fiscal 200t
g Does not include special financing of $104 8 million provided by the Trust Funds for East Timor, Gaza and the West Bank, Kosovo, and the Federal Republic of
Yugoslavia
from $69 million the previous year, reflecting several 12 operations and $96.5 million in fiscal 2000. The
large investment operations. The share of adjust- beneficiaries were East Timor, Gaza and the West
ment lending continued to stabilize at about one- Bank, Kosovo, and the Federal Republic of Yugoslavia.
third of total lending, significantly down from the
fiscal 1999 peak of above 50 percent and approach- Accelerated debt relief. Significant progress was
ing the typical adjustment lending shares in the early made in fiscal 2001 to provide deeper, broader, and
1990s (before the financial crisis). In addition, 17 faster debt relief to some of the world's poorest coun-
special financing operations were approved for a tries, many of them in Africa, under the enhanced
total commitment of $104.8 million, compared with Heavily Indebted Poor Countries (HIPC) Initiative
26 The World Bank Annual Report 2001
Box m.i The Multi-Country HIV/AIDS Program (MAP)
for Africa
The HIV/AIDS epidemic now poses the paramount threat to
development in Sub-Saharan Africa. About 25 million adults and \Pi
children are living with HIV/AIDS, as estimated by the joint , a
United Nations Programme on HIV/AIDS (December 2000). '\ \
Some 17 million have already died from the disease, which may -;| "
be costing the region 0.5 percent to 1.2 percent of per capita .
growth each year, with losses likely to grow.
In collaboration with partners (see page 103), the Bank K :
launched in September 2000 the Multi-Country HIV/AIDS
Program (MAP) for Africa-the first of its kind. Under MAP, -
flexible and rapid funding will be committed, on IDA terms,
to individual HIV/AIDS projects developed by countries > +
The MAP seeks to dramatically increase access-especially \X
by vulnerable groups-to HIV/AIDS prevention, care, and -
treatment programs.
Communities and associations of people affected by
HIV/AIDS will help design and implement activities and will l J
control resources. D -
Countries benefiting from the MAP in fiscal 2001 include
Cameroon, Eritrea, Ethiopia, The Gambia, Ghana, Kenya,
and Uganda.
This young boy is one of 8 1 million beneficiarnes of Mexico's Second
An initial amount of $500 million covers the first of three Basic Health Care Project, which is bnnging modem basic health serv-
phases. Phase 1 (expected to be fully committed by the end ices to previously excluded rural poor people, especially women and
of calendar 2001) aims to help as many countries as possible children A Third Basic Health Care Project was approved in fiscal 2001,
intensify action against HIV/AIDS and cope with the unprece- focusmg on mcreasmg equit
dented burdens of the epidemic. Phases 2 and 3, respec- . Increase (based on early indications) social
tively, will stress mainstreaming and prevention.
The MAP aims ultimately to avert millions of HIV infections, �expedures by1an av recof aout 17bllio
alleviate suffering for tens of millions, and protect the devel- a year during 2001-02, directed toward health,
opment prospects of entire nations, education, HIV/AIDS programs, basic infrastruc-
ture, and governance reform, and
Reduce spending on debt service to about 2 per-
cent of GDP-well below the average for devel-
framework As of June 30, 2001, 23 countries- oping countries, social expenditures, in
compared with 7 a year ago-were receiving debt comparison, are estimated at about 7 percent
relief under this framework, amounting to more than
$34 billion over time from all creditors. Importantly, Evolving economic and sector work (ESW).
debt relief has begun to be delivered within a trans- ESW products numbered about 335 in fiscal 2001,
parent and comprehensive Poverty Reduction including about 234 analytical reports and some 100
Strategy Paper (PRSP) framework. PRSPs (dis-
cussed on page 30 under "Support to low-income
countries") are developed by countries after national Figure t.i Reduced Debt Stock and Improving Debt
consultations and aim to ensure a nationally "owned" Service Ratios before and after Assistance
poverty reduction framework for spending resources under the HIPC Initiative
freed by debt relief. In addition, debt relief is deliv- Percent Billions of doiiars
ered only to countries that have demonstrated the 30 28% 6 Debt service as
commitment and capacity to use the resources effec- 25 $53 2 percent of exports
tively After HIPC (and combined with traditional) 20 19%
debt relief, the 23 countries will' _=v Debt service as
1 5 _ \ 13%30 percent of revenue
15 ~~~~~~~~~~~13% (left axis)
Witness a two-thirds reduction in total debt, 10 $202 Debtstock
with debt service payments reduced by about bilions of dollars
billion year ir ~~~~~~~~~~,, 5net present value
$1 l bilion a year (figure 1 1), (right axis)
00
Before HIPC (1999) After HIPC (2001-02)
Overview 27
policy notes and other products. In fiscal 2001 for- these projects benefited from IDA financing.
mal reports included 62 core diagnostic reports Also to benefit the vulnerable, the Bank is not only
(such as poverty and gender assessments, public steadily expanding its social protection portfolio-
expenditure reviews, financial accountability, and whose quality is also improving-but also working
procurement assessments), 75 other diagnostic at the global level, for example with the Intemational
reports (such as institutional and governance Labour Organisation and the United Nations
reviews, financial sector assessments, social protec- Children's Fund, to fight child labor.
tion reviews, and city development strategies); and Working toward a cleaner, healthier environment
97 regional and country advisory reports. The Africa has entailed extensive global consultations to
and Europe and Central Asia regions accounted for inform a forthcoming environmental strategy, col-
the highest share of the year's ESW ESW provides laborative efforts to better manage Nile water
the basis for the Bank's policy dialogue with clients. resources, and more environmentally focused sup-
When undertaken in partnership with local institu- port for the energy, oil and gas, and mining sectors.
tions, it is also an effective vehicle for building insti- Other progress to empower people is reflected in
tutional capacity It underpins the country's own collaborative work on the Global Development
vision and the Bank's diagnosis of the country's Gateway-an initiative to make worldwide devel-
development situation; it provides the analytical opment knowledge more widely and interactively
basis for HIPC and PRSP work in IDA countries; accessible-as well as using Bank lending to help
and it plays an important role in middle-income build countries' information systems (75 percent
countries-underscored by the Development of Bank projects have such components)
Committee's call for stronger analysis of structural, A wide range of Bank Group services supports pri-
social, and sectoral issues and priorities. ESW helps vate sector development, ranging from investment
the Bank develop its Country Assistance Strategies climate surveys (of places as diverse as East Timor
(CASs) and formulate and implement effective lend- and the Russian Federation) and support for pn-
ing programs. In fiscal 2001 the Bank continued a vate provision of infrastructure to catalytic lending
reform effort to strengthen ESW and fill gaps in the and innovative finance, including guarantees
availability of diagnostic reports, particularly in key A fast-growing area of support is law and justice,
areas such as public expenditure, procurement and where Bank focus has evolved from specific law
financial management, and structural constraints to reform to encompass legal education for the pub-
growth and poverty reduction. lic, anticorruption programs in the judiciary,
indigenous dispute resolution mechanisms, and
Multidimensional support for poverty reduction. legal aid for poor women.
Released in September 2000, the Bank's World A new operational policy to guide conflict-related
Development Report 2000/2001 emphasized opportu- work allows for a more systematic approach,
nity, empowerment, and security as key to reducing including, in the area of conflict prevention,
multidimensional poverty. Examples of the Bank's studies to identify root causes, support for trans-
efforts to reflect in its work the report's conclusions, parent public expenditure management, and var-
through lending and nonlending services, include ied operational support (for demobilization and
the following reintegration, for example).
Lending to fight communicable diseases amounted
to over $610 million-twice the average for the Improved development effectiveness. The number
past four years, and including over $418 million of projects considered "at risk" in the Bank's portfolio
from IDA; support to combat HIV/AIDS and has been cut in half over the past five years and is
malaria has intensified, while the Bank is already now the lowest it has been in many years. As a
the largest single source of external support for result, some $16 billion of loans and credits are bet-
tuberculosis control in developing countries. ter positioned to deliver results to clients. The
Support for education is emphasizing access, quality of project appraisal and supervision has also
quality, and equity, as of June 30, 2001, the improved substantially; a similar trend is emerging
Bank has supported 64 active projects world- with respect to nonlending services. These results are
wide with girls' education components; 55 of beginning to be reflected steadily in improved project
28 The World Bank Annual Report 2001
outcomes: the independent Operations Evaluation
Department (OED) estimates that 78 percent of r
closed projects had satisfactory outcomes in fiscal
2000, compared with 73 percent in fiscal 1999
Institutional development and sustainability of
results are also improving, slowly but steadily.
Particularly noteworthy are quality improvements in
the Africa region, which reflect in part IDA's growing
effort to focus new lending on countries with good
policy performance The quality of adjustment lend-
ing has also improved markedly. Also notable toward
ensuring more effective use of aid is the greater
attention, Bank-wide, to safeguard and fiduciary
policies. Highlights include an improved tracking
system, recognizing the potentially high social and envi- -
ronmental costs of noncompliance; efforts to harmo-
nize safeguard requirements across donors, and a
steady strengthening of project financial management
resulting from systematic efforts to improve govemance
and cost effectiveness. A growing prionty of OED is to
and cost effectiveness. A growing prionty of OED is to More and more people are taking advantage of child health services
strengthen borrowers' capacity for evaluation. in Ugandan villages covered by the country's Nutrition and Early
Childhood Development Project, whose communications component is
making a dramatic difference to community participation Here, a child
PRESERVING FINANCIAL STRENGTH TO SUPPORT is weighed
DEVELOPMENT NEEDS
pared for the Annual Meetings in September 2000-
IBRD net income in fiscal 2001 was $1.5 million, described the changing paradigm for development
lower than the previous year primarily because of assistance and outlined the way the Bank is adapting
higher provisioning expenses. IBRD retained $618 its approach to better reflect the lessons of experi-
million out of fiscal 2001 operating income in its ence and respond to new needs for development
General Reserve-lower than in the previous year, services. In particular, the paper noted the increasing
when $1 1 billion was retained in keeping with focus on policies and institutions, the role of the pri-
IBRD's strategy to preserve long-term financial vate sector, and country ownership and partnership
strength and support other development needs. As as articulated in the Comprehensive Development
part of its regular financing operations, IBRD raised Framework (CDF). The paper also formalized the
$17 billion in international debt markets in fiscal Bank's results-focused country business model,
2001. It continued to borrow at favorable costs, in which is grounded in the country's own vision of
turn enabling low borrowing costs for client coun- development and diagnostic work on the priorities
tries Funding volume was above the previous year's and constraints for change, and set out in the CAS
level, reflecting financing for loan disbursements and
refinancing of debt retirements. IBRD maintained Evolving Country Assistance Strategies. In fiscal
adequate liquidity in fiscal 2001 to ensure uninter- 2001 the Board discussed 37 CASs, including 8
rupted cash flow to meet its obligations. As of June Transitional or Interim Support Strategies for post-
30, 2001, the liquid asset portfolio was $24.2 billion. conflict economies such as East Timor, Ethiopia,
Kosovo, and Sierra Leone. More than ever, CASs are
FORMALIZING THE COUNTRY BUSINESS MODEL being prepared in consultation with countries and
AND GLOBAL PRIORITIES with attention to transparency Emphasis on disclo-
sure continued, with disclosure of 100 percent of
Country business model. "Supporting Country IDA (including "blend") and 71 percent of IBRD
Development World Bank Role and Instruments in country assistance documents, for an overall disclo-
Low- and Middle-Income Countries"-a paper pre- sure ratio of 87 percent Bank-wide. It is expected
Overview 29
Box 1.2 Scaling Up Results, Targeting the Vulnerable, Building on
Success, Supporting Private Enterprise: Illustrations of Projects
Approved in Fiscal 2001
that, after July 1, 2002, each IDA CAS presented to
Health. The Second National Leprosy Eliminotion Project (IDA, $30 million) the Bank's Board would normally be based on a
supports national programs in India to improve diagnosis, treatment, and PRSP, which would provide the context for all IDA
monitoring at the state level, building on its predecessor, under which reg- lending and nonlending activities The Board has
istered cases nationwide were cut in half between 1993 and 2000. already considered a number of CASs based on
PRSPs, Including Burkina Faso and Uganda. A total
Rural development. Brazil's Land-Based Poverty Alleviation Project (I BRD, of 17 of the year's CASs were prepared jointly with
$202 million) will scale up the results of two successful Bank-financed the IFC underscoring the Importance of private
pilots that tested a community-based approach to provide faster access to
land by the rural poor, thereby helping raise the incomes of about 50,000 investment to these countries' strategies While the
families. poverty focus of CASs has been improving, the Bank
has been steadily raising the standard for its assis-
Regional Integration. The Regional Trade Facilitation Project (IDA, $110 tance. Key priorities include good poverty diagnosis,
million)-the first of its kind-will support poverty reduction through pri- integration of economic and sector work, selectivity
vate sector-led growth in seven African countries, helping increase credit in assistance, appropriate sequencing of instruments,
availability for productive activities and providing startup funds for the and capacity building to monitor PRSP outcome
Africa Trade Insurance Agency.
indicators-currently a major challenge Projects
Social protection. The Emergency Demobilization and Reintegrotion Project approved over the past year attest to the strong
and the Emergency Recovery Project (IDA, $400 million) will have a signifi- poverty focus of Bank assistance (box 1.2)
cant impact on reducing poverty in war-torn Ethiopia by helping veterans
restart their lives and lump-starting the economy, while also addressing Support to low-income countries. The Boards of
basic needs and scaling up HIV/AIDS-related interventions. the Bank and the IMF considered Full and Interim
PRSPs prepared by 32 countries in fiscal 2001,
Finance. The Second Poverty Alleviation Microfinance Project (IDA, $151 prepard by 32 cou s in sl 2001r
million) expands rural microcredit in Bangladesh to reach those who have pr y
introduction in Dlecember 1999, PRSPs have
to date been left out or underserved, while also ensuring that microlending
will be sustainable into the future; 1 2 million new borrowers and 19,500 become the principal vehicle for implementing the
microentrepreneurs are expected to benefit. principles of the CDF in low-income countries. The
accelerated preparation of PRSPs (including 29
Education. The Mali Education Sector Expenditure Program (IDA, $45 mil- Interim ones to enable countries' preliminary quali-
lion) is a 10-year program aimed at increasing gross primary enrollment fication for debt relief under the enhanced HIPC
from about 56 percent in 2000 to 95 percent in 2010, helping Mali's future framework) signals progress, but the strong partici-
ability to respond to competitive market conditions. patory process, still to come in the Full PRSPs, will
Transport. The Third Inland Waterways Project (IBRD, $100 million) will be crucial. The approach is still in its early stages,
improve market access of, and power supply to, remote inland areas of linking public actions to priority poverty reduction
China's Hunan province and provide more economic inland waterway trans- outcomes will be critical as the process evolves
port, reducing transport bottlenecks, strengthening institutional capacity, Progress of a different kind-donor coordination-
and benefiting nearly six million poor residents. is reflected in the European Union's decision to
base its assistance to the Africa, Caribbean, and
Natural disasters. The Natural DisasterManagement Project (IBRD, $404 Pacific regions on the PRSP framework. Growing
million) will help reduce human, economic, and flnancial costs of natural dis- adopt ion of the PRSP framests towing
asters in Mexico by focusing on recovery and prevention of loss of life and adoption of the PRSP approach attests to the
infrastructure damage. expanding acceptance of CDF principles, which
emphasize country ownership based on national
Public sector reform. The Budget Systems Modemization Project (IBRD, consensus and strong participatory processes, long-
$24 million) will modernize and expand Algeria's capacity for growth by term vision, results focus, and partnership. The
promoting efficient, transparent, and effective governance. Bank's Poverty Reduction Support Credit (PRSC)
will help Implement these strategies On May 31,
Environment. Russia's Coal and ForestrySector Guarantee Facility (IBRD, 2001 he Boardmof the WorldeBank Ov a
$200 million) will help foster a better business environment in the coal and
forestry sectors and support commercially viable enterprises. $150 million PRSC for Uganda, the first IDA credit
to support the implementation of a country's
Watersupply. The Rural WaterSupply and Sanitation Project (IDA, $20 mil- poverty reduction strategy as set out in its PRSP
lion) will expand sustainable water supply and improve sanitation service
coverage to over 400,000 of the Republic of Yemen's mostly poor rural pop-
ulation, improving health and freeing girls from water-fetching chores to
attend school.
(see page 43) A PRSC for Vietnam was also ing with global partners on major initiatives, and
approved in fiscal 2001. integrating efforts into country-level work An urgent
task at the international level is to develop solid esti-
Support to middle-income countries. With the mates of financing requirements for each priority
support of Ministers at the Joint Bank-Fund Annual area That pending, the Bank is relying on innovative
Meetings in September 2000, the Bank Group cre- IBRD and IDA program and project lending to sup-
ated a task force to consider how best to respond to port strong national programs (such as the Multi-
the needs of middle-income countries (those eligible Country HIV/AIDS Program) as a basis for latcr
to borrow from IBRD). A clear consensus emerged global approaches, while also exploring a limited
from extensive consultations with client countries, expansion of IDA's grant capability and a restructur-
shareholders, and other partners the Bank Group ing of the Bank's Development Grant Facility The
has a crucial role to play in middle-income coun- Bank's approach toward global public goods is based
tries With nearly 80 percent of people who live on on careful selectivity in priorities and partnerships,
under $2 a day residing in middle-income countries, and measured deployment of resources.
any plan for successful global poverty reduction will
require the Bank's continued active engagement in Sector Strategy Papers (SSPs). SSPs help organize
these countries The Bank's global reach, broad sec- the Bank's work on global priorities such as disease
toral knowledge, and specific private sector engage- eradication or the environment. They are a launching
ment through the IFC and MIGA enable it to point for promoting public action at the global level,
provide strong support for sound policies and insti- pulling together global programs and partnerships,
tutions, its financial support "crowds in" private cap- and providing incentives for client countries to take
ital and reduces vulnerability to market volatility, action. More generally, SSPs help shape the Bank's
and, through its work in middle-income countries, approach and activities in a given sector or thematic
the Bank gains valuable experience, informing its area to enhance impact on poverty reduction and
work in low-income countries The task force high- growth SSPs also lay out strategic options for sector
lights, however, the need for a catalytic and selective and thematic areas identifying aspects of relatively
role, with the Bank focusing on assistance that weak country performance for priority attention They
others cannot or will not provide. At the Joint Bank- are developed with broad stakeholder consultation,
Fund Spring Meetings in April 2001, Ministers wel- and their implementation is regularly monitored. In
comed the task force-based proposals put forward fiscal 2001 the Board reviewed three SSPs, including
by the Bank noting that they would support more "Strategy for the Financial Sector," "Reforming Public
structured and streamlined Bank-Fund cooperation. Institutions and Strengthening Governance A World
Proposals included the strengthening of the Bank's Bank Strategy," and "Social Protection Sector
analysis of the country situation, including expand- Strategy. From Safety Net to Spring Board"
ing, in concert with its partners, support for local
capacity building, a deferred drawdown option A CHANGING WORLD BANK
for adjustment loans to reforming countries, and
a more systematic and developmental role for Compact Assessment. In fiscal 2001 the Bank con-
adjustment lending. ducted an assessment of the Strategic Compact,
launched in April 1997 between the Bank and its
Support for global public goods. The 2000 Annual shareholders to renew itself to become more effective,
Meetings also set near-term priorities for Bank with $250 million in additional administrative
engagement in global collective action communica- resources over a three-year period. The Compact was
ble diseases, environmental commons, economic ambitious in its time frame and scope, the challenge
governance and financial stability, trade and integra- was heightened by unanticipated external develop-
tion; and the information and knowledge revolution. ments-financial crises, post-conflict situations, and
The Bank has since moved forward in each of these natural disasters-as well as the nsing demands of
areas, whose links to poverty reduction are strong partnership linked to the CDF-PRSP-HIPC work in
Progress has consisted of sharpening strategy, work- many countnes
Overview 31
Table 1.2 The Changing World Bank
Bank Group in 1996 Bank Group Today
Increased poverty focus
Understanding of poverty Economic focus Multidimensional focus
Country-owned poverty reduction strategies 4 Full PRSPs, 32 Interim PRSPs
Broader development agenda
Comprehensive Development Framework Pilots in 12 countries
Anticorruption, good governance programs - Programs in 95+ countries
Lending commitments to combat HIV/AIDS $35 million over $393 million
Response to war-torn and indebted poor countries
Post-conflict lending and advice 15 countries 35 countries
Debt relief operations - 23 countries
Total committed debt relief (nominal) - $34 billion over time (from all creditors)
Greater operational impact
Satisfactory project outcomes (% of total projects) 69% 78%
Share of projects at risk 29% 12%
Quality of economic and sector work (% satisfactory) 72% (FY98) 86%
Improved client service
Country directors in the field 0 out of 24 29 out of 53
Share of Bank staff in the field 38% 45%
Time for project preparation 24 months 15 months
More effective private sector promotion
Private provision component in infrastructure projects 21% 39%
IFC investment commitments $2.1 billion $2.4 biliion
MIGA guarantee coverage $0 8 billion S1 6 billion
Joint Bank-IFC departments - 6
Increased knowledge sharing
Number of distance learning centers 16
Number of "communities of practice"
supported by the Bank's thematic networks less than 30 about 110
Greater openness and participation
Published country assistance strategies (% of total) None 87%
Share of projects with civil society involvement less than 50% more than 70%
Community-driven development components in projects S0 7 billion $1 4 billion
(estimated approximate value)
Broader product base
Lending product innovations Examples include learning and
Financial product innovations innovation loans, adaptable program
Advisory product innovations loans, and IDA guarantees; single
currency loans, and e-bonds, and
institutional and governance reviews,
and financial sector assessments
Significant progress has been made, in a rela- presence in the field. The Bank has also delivered
tively short time. Under the Compact, the Bank was on its commitment to return in fiscal 2001 to the
to refuel business activity, refocus the development fiscal 1997 net administrative budget in real terms.
agenda, retool its knowledge base, and revamp insti- The efficiency gains foreseen under the
tutional capabilities. Important gains have been Compact have proved more difficult to realize. A
made in Improving operational quality and expand- number of new priorities and processes have
ing the Bank's portfolio of products and services increased the complexity and-in the short term-
(table 1.2) A changed Bank has meant making the cost of doing business. Supervision costs are
"Spring Meetings" documents publicly available for higher because of the greater emphasis on quality as
the first time, well-coordinated support from the well as compliance with safeguard and fiduciary
Bank Group, including the IFC, for small and policies; the costs of preparing CASs have risen in
medium enterprises; and speeding up response to step with growing attention to stakeholder consulta-
clients during periods of crisis through a greater tions and disclosure; and the introduction of services
32 The World Bank Annual Report 2001
Table 1.3 Aligning Resources with Corporate Priorities: Selected Items in the Bank's Budget
(millions of dollars)
Fiscal 2001 Fiscal 2002 Comments
Project Supervision 130 149 Higher fiduciary and safeguard standards
Lending 94 101 Increased emphasis on poverty reduction in
Africa and South Asia
Country ESW 50 78 Increased funding for poverty assessments,
public expenditure reviews, financial
accountability as well as procurement
assessments, and other key diagnostic work
Country Program Support 55 61 Continued support for PRSP preparation in
low-income countries and policy dialogue in
middle-income countries
Quality Assurance 19 23 Strong focus to maintain quality standards,
attention to monitoring and evaluation
Selected Operational 54 42 Finance, administrative, and corporate services
Support Services expected to decline as cost efficiency achieved
such as PRSP support and Financial Sector L' A year-long antlcorruption program in Paraguav
Assessments has entailed significant added cost (see (cosponsored by the U S. Agency for International
figure 1 2) The Bank has also faced higher costs in Development) culminated in an action plan
terms of the stress levels of staff, who played a cru- approved by the country's president, to be imple-
cial role in the progress made under the Compact. mented by the government and civil society
Lessons from the Compact experience are reflected LA An independent evaluation has shown that stu-
in the Strategic Directions Paper (SDP) as well as in dents of the World Links Program, which links
the Bank's administrative budget for fiscal 2002, 100,000 students across 27 countries, have
approved at the end of fiscal 2001 (see table 1 3). acquired nexv skills, knowledge, and attitudes-
which explains growing demand from such coun-
World Bank Institute (WBI). A major emphasis of tries as Peru, Senegal, Sri Lanka, and Turkey for
the "new" Bank is empowerment of people through scaled-up assistance.
knowledge and capacity building. Renewed during 1- As an outcome of a PRSP forum in C6te
the Compact period, WBI is an important d'lvoire, elected officials and civil society repre-
contributor to this objective (others being the Bank's sentatives of eight participating country delega-
research and advisory services, its thematic networks' tions created regional networks to facilitate
"communities of practice," and information technol- consultations on their poverty reduction ef'forts
ogy-based efforts) WBI facilitates learning on I H, In an early example of WBI's "Nvholesaling" policy,
development issues for staff as well as Bank the Administrative Staff College of India regularly
clients-including policymakers, ministry staff, offers-now on its own-a course on resettle-
academics, and increasingly, parliamentarians, jour- ment policy originally designed jointly with WBI
nalists, the private sector, nongovernmental
organizations, and other segments of civil society. At Figure 1.2 Unit Cost of Operational Processes
the end of fiscal 2001, WBI was reaching 48,000 (thousands of dollars)
participants annually in client programs in about 150 344
countries through nearly 600 learning activities. 308 307
Programs continue to be scaled up through distance
learning, global knowledge networks, and extended
partnerships, and by harnessing the newest learning
technologies Over the past year WBI developed an 135
Attacking Poverty Program aimed at building national * FY97
capacity to prepare and implement the PRSP *67 74 FY01
process WBI programs are having an impact, as seen
in these examples 0
Lending Supervision PRSPs CASs
Overview 33
Development impact. The Strategic Compact's ulti- ment The SDP emphasizes a catalytic role coupled
mate aim was to improve development outcomes. with the need for selectivity along three dimen-
Clear gains are emerging In the areas of human sions-within countries, across countries, and for
development, institutional strengthening, and post- global programs The Bank will articulate in the CAS
conflict assistance, for example, the Bank has its selectivity within a country, use income, poverty,
helped and performance as the key criteria for selectivity
In Ethiopia, to improve access by four million across countries, and be guided by corporate and
people to health and sanitation facilities, and global public goods priorities at the global level In
access by 600,000 children-half of them girls- addition, the papers center assistance to low-income
to school, countries on CDF-based poverty reduction strategies
In Senegal, to advance prospects for more than as well as debt relief and post-conflict needs, while
halving the female illiteracy rate to 30 percent by clarifying the Bank's role in middle-income countries
2005, and at the global level
In Brazil, to achieve a 38 percent drop in the
number of AIDS-related deaths since 1993; Role of partners. The strategy papers emphasize the
l In Mexico, to reduce the number of people with central role of collaboration with partners at the coun-
no health coverage from 10 million to 1 5 mil- try, as well as global, level. Closely involving client
lion, governments, civil society, the private sector, and mul-
In some Caribbean countries, to reduce tele- tilateral and bilateral partners at all stages and levels
phone and Internet charges by up to 50 percent; of country assistance-policy dialogue, formulation of
In Guatemala, to streamline the country's finan- Bank GASs, and design and implementation of lend-
cial management system and make its budget ing and nonlending services-has become the norm.
available online, Collaboration with major institutional partners, such
In Poland, to make corruption a high-profile as the IMF and the United Nations (U N.), has
issue, intensified. Operational cooperation and coordination
In Tunisia, to cut the public share of hospital with multilateral development banks (MDBs) has
financing from 69 percent to 35 percent, advanced significantly, and several technical working
In Rwanda, to return to normal social and eco- groups are launching efforts to promote coherence in
nomic life some 1.3 million refugees of the civil approaches and harmonization of policies and proce-
war and to strengthen the country's economic dures (on matters ranging from environmental assess-
recovery, ments and financial management to corruption and
In Bosnia and Herzegovina, to create 100,000 gender). For global public goods, strategic partner-
jobs through support for microcredit, following ships with national governments, civil society, interna-
the brutal war of the early 1990s, tional organizations, bilateral donors, and the
1 In East Timor, to set up 400 village development corporate sector have become fundamental to the
councils under a project that is already funding Bank's engagement. In many arenas, joint work with
over 500 subprojects selected by the communi- U N agencies, the IMF, and MDBs is crucial
ties themselves Important examples are the Global Alliance for
Vaccines and Immunization focusing on prevention of
STRATEGIC FRAMEWORK AND communicable diseases, the Financial Stability Forum
FUTURE DIRECTIONS helping to prevent and manage financial crises, the
Prototype Carbon Fund that addresses climate
Strategic Framework. Aimed at building on the change issues, the Global Development Gateway
progress made under the Compact, a Strategic aimed at increasing access worldwide to development
Framework Paper and an SDP were presented to the knowledge, and work with the World Trade
Board in fiscal 2001 (see page 9) The papers reiter- Organization and other partners on integrating least
ate the Bank's mission of fighting poverty, with the developed countries into the multilateral trade system.
international development goals representing a prime
commitment They set out the two inter-related pil- Future Directions. For all the collective progress
lars that will underpin Bank assistance to countries noted in this report, the world has far to go to win
and at the global level building the climate for the fight against poverty. The Bank Group has an
investment, jobs, and sustainable growth, and important role to play Core assets are its financial
empowering poor people to participate in develop- strength, experience and knowledge, global reach,
34 The World Bank Annual Report 2001
Table 1.4 Cumulative IDA Subscriptions and Contributions, as of June 30, 2001
Member n I Percent of total
United States 25,841.8 23.8
Japan 24,078.1 22.1
Germany 12,309.0 11.3
United Kingdom 8,013.1 7.4
France 7,468.5 6.9
Canada 4,767.5 4.4
Italy 4,410.0 4.0
Netherlands 4,026.4 3.7
Sweden 2,770.6 2.5
Saudi Arabia 2,158.2 2.0
Australia 1,810.0 1.7
Belgium 1,759.0 1.6
Denmark 1,457.3 1.3
Switzerland 1,398.6 1.3
Norway 1.371.3 1.3
Top 15 donors 103,639.4 95.3
Other members* 5,084.7 4.7
Total 108,724.1 100.0
*For a complete list of other subscribers and donors, see IDA:s Special Purpose Financial Statements, page 75 of the World Bank Annual Report
2001: Volume 2, Financial Statements and Appendixes.
independence that enables objectivity, ability to regional, and global levels. There is now unprece-
integrate the major elements of sustainable develop- dented consensus worldwide on what is needed for
ment, and capacity to deliver services and resources poverty reduction. The Bank has called for a "com-
to countries. Going forward, the 13ank will maintain pact" between rich and poor countries, with each
its global diagnostic capacity across the whole range doing its part. Rich countries need to increase
of developmental sectors, while being much more market access to developing countries' exports, and
selective in its areas of implementation capacity. provide debt relief and new concessional finance
Increasing effectiveness will continue to be a prior- for the poorest countries; developing countries, for
ity, built around a strong quality culture. Country their part, need to ensure sound policy and institu-
focus will dominate Bank assistance, complemented tional environments to promote growth as well as
by carefully selected cross-border and global issues. the effective use of aid, making sure also that the
Measuring the Bank's performance-particularly benefits of growth reach poor people. The CAS
difficult in areas such as policy support and capac- will continue to spell out the Bank's focused busi-
ity building-will also be important, as will be the ness strategy in support of a country's program,
transparent reporting of results. working in partnership with governments and
As laid out in the Strategy Framework Paper, together with the IMF, MDBs, the U.N., bilateral
Bank assistance will emphasize governance as well agencies, the private sector, and civil society. The
as institutional and policy structures, including the IDA- 13 Replenishment, which is expected to be
regulatory framework for infrastructure, to create a decided by the end of calendar 2001, will crucially
positive investment climate-key to expanding jobs guide the Bank's efforts going forward; IDA donors
and achieving sustainable growth. It will equally (table 1.4) have been considering ways to increase
emphasize the need to invest in people and aid effectiveness. Collaboration with the IMF will
empower them to participate in development, in continue to be paramount. The agenda with
part through community-driven development. MDBs includes harmonizing operational policies
Building poor people's assets, promoting gender and division of labor on countries' social and struc-
equality, and protecting the most vulnerable will all tural issues. Division of labor on global public
be central to the poverty reduction effort. Investment goods will be the shared challenge in work with
and adjustment lending will both be set in the con- the U.N. The Bank will be flexible, explicitly step-
text of a sound program of policy and institutional ping back where another partner's comparative
development, capacity building, and strong govern- advantage is clear.
ment commitment.
Partnership, based on institutional comparative
advantages will be key to progress at the country,
Overview 3!
Chapter 2
The Board of Executive Directors
s,A , ,.
K~~~~~~~~~~~~~
i' I,.
1/ 1/_
The Executive Dlirectors are responsible for the From left to right Andrei Bugrov Girmai Abraham (seated), Finn Jonck, Balmik, Prasad
conduct of the \iAorld Bank's general operations; Singh, Neil F Hyden, Jean-Claude Milleron (seated), Matthias Meyer Rosemary Stevenson*
(seated), Terrie O'Leary Philippe M Peeters, Bassary Toure, Moises Pineda (seated), Pieter
they perform their duties under powers delegated by Stek, Jan Piercy, Helmut Schaffer Jalme Ruiz (seated), Mano Soto-Platero, Mohamd Kamel
the Board of Governors As provided in the Articles Amr*, Ahmed Sadoudi (seated), Franco Passacantando, Yahya Abdulla M Alyahya, Yuzo
Harada (seated), Zhu Guangyao, Abdul Azlz Mohd Yaacob
of Agreement, 5 of the 24 Executive Directors are *AeraeEcuieDeto
*Altemnate Executive Director
appointed by the member countries having the
largest number of shares, the rest are elected by the
other member countries, which form constituencies Department (OED), which is accountable directly to
in an election process conducted every two years. the Board to perform professional evaluations as set
ExecLutive Directors consider and decide on out in OED's Board-approved polices, strategies, ancl
I BRD loan and guarantee proposals and IDA credit work program. OED provides independent advice to
and guarantee proposals made by the President, and the Board on the relevance, sustainability, efficiency,
they decide on policies that guide the 13ank's general and effectiveness of operations. During fiscal 2001
operations. They are also responsible for presenting to Executive Directors regularly met at Bank headquar-
the Board of Governors, at the Annual Meetings, an ters to carry out their responsibilities. Directors also
audit of accounts, an administrative budget, and an serve on one or more of five standing committees
Annual Report (this report) on the Bank's operations Audit, Development Effectiveness, Budget, Personnel,
and policies as well as other matters Their oversight and Executive Directors'Administrative Matters The
responsibility covers all Bank policies and activities, committees help the Board discharge its oversight
including approval of all lending and guarantee opera- responsibilities through in-depth examinations of poli-
tions and the annual budget In shaping Bank policy, cies and practices
the Board of Executive Directors (the Board) takes Executive Directors and Alternate Executive
into account the evolving perspectives of member Directors also periodically visit borrowing countries
countries on the role of the Bank Group as well as to review Bank assistance in progress. They meet a
the Bank's operational experience In this regard, an wide range of people, including project managers,
important role is played by the Operations Evaluation beneficiaries, government officials, nongovernmental
The Board of Executive Directors 37
organizations (NGOs), the business community, HIPC documents (covering 23 countries) under the
other development partners, financial institutions, enhanced framework (comprising 10 Preliminary, 16
and resident Bank staff. In fiscal 2001 Directors vis- Decision Point, and 2 Completion Point docu-
ited Bhutan, Djibouti, Eritrea, Ethiopia, Latvia, ments), and stressed the importance of full burden
Pakistan, Tajikistan, Turkey, and Uganda Directors sharing by all creditors.' They also reviewed 3
also play an active role in preparing the agenda and PRSPs and 29 I-PRSPs, and expressed appreciation
issues papers for the semiannual meetings of the for the tangible progress made in implementation of
Joint Bank-Fund Development Committee. In fiscal the PRSP process They suggested several areas for
2001 the Development Committee addressed the improvement, including better alignment of Bank
World Bank's strategy in middle-income countries, assistance with countries' own strategies and their
poverty reduction and global public goods, assis- implementation capacities. The Board also approved
tance to post-conflict countries, and a number of the the first two Poverty Reduction Support Credits to
issues discussed below. (For more detail, see appen- Uganda and Vietnam In addition, the Board
dLx 12 in volume 2 of this Annual Report.) reviewed papers on tracking poverty-related
spending in HIPCs, and discussed the impact of
STRATEGIC ISSUES debt reduction on long-term debt sustainability
The Board also discussed a number of sector
Major areas of Board emphasis during fiscal 2001 strategy papers designed to help define the Bank's
are highlighted below. role in poverty reduction at the sector level, includ-
ing strategies for reforming public institutions and
Strategic Framework. During fiscal 2001 manage- strengthening governance, social protection, and the
ment presented the Executive Directors with several financial sector
papers on the strategic directions for the Bank
Group for the fiscal 2002-04 period, including the Country programs. Country Assistance Strategies
Strategic Framework Paper, the Strategic Compact (CASs) and the principles underlying the Compre-
Assessment, and the Strategic Directions Papers for hensive Development Framework and PRSPs
the Bank and the IFC The Board reviewed the pro- continued to guide the Bank Group's work at the
posals, expressing strong support for increased selec- country level. During the fiscal year the Board con-
tivity in Bank activities to help member countries sidered 37 CASs and related CAS products
achieve the international development goals as a Directors commended the greater focus on poverty
means to address more efficiently the central goal of reduction as the overarching goal, as well as the
poverty reduction. They also discussed several increasing use of consultative processes in preparing
important policy papers-for example the Bank's CASs. They also stressed the importance of the
middle-income country strategy Bank's increasing use of partnerships and selectivity
at the country level.
Bank Group's role in poverty reduction. The
Board continued to closely monitor implementation Global programs and partnerships. Participation
of the Bank Group's poverty reduction mandate. by the Bank in global initiatives and partnerships has
Executive Directors reviewed a number of poverty- increased significantly in recent years In fiscal 2001
related reports, including a paper on the operational the Board discussed a framework for managing
implications of the World Development Report global programs and partnerships to reinforce country-
2000/2001 on attacking poverty, and the annual level poverty reduction efforts. It reviewed several
Poverty Progress Report The Board also focused
considerable attention on implementation of the 1 Decision potnt The point at which the international community
agrees-for countries with unsustainable debt levels and a solid record
enhanced Heavily Indebted Poor Countries (HIPC) on economic reform and poverty reduction programs-on the amount
Initiative for debt relief to low-income countries, as of relief needed to reduce outstanding debt to a sustainable level
Multilateral creditors, including IDA, begin providing significant "inter-
well as the related Poverty Reduction Strategy im assistance" beginning immediately at the decision point
Papers (PRSPs) and Interim PRSPs (I-PRSPs) Completion point The point at which all creditors provide, uncondi-
tionally, the remainder of their share of debt relief agreed to at the
designed to ensure stronger links between debt relief decision point The completion point is tied to implementation of key
and poverty reduction Directors considered 28 reforms and policies outlined in a country's PRSP
38 The World Bank Annual Report 2001
reports on global public goods Executive Directors level agreed on at the outset of the Strategic
confirmed five priority areas for Bank engagement Compact despite increased demands on the 13ank
communicable diseases, environmental commons, that had not been anticipated at the time of the
economic governance and financial stability, trade Compact In June 2001 the Executive Directors
integration, and information and knowledge. They approved a total administrative budget, net of rcim-
also discussed several initiatives within these priority bursements, of $1,589 7 million for fiscal 2002
areas, such as the Bank's work with the IMF to
strengthen the international financial architecture, INSPECTION PANEL
with particular emphasis on the integrity of financial
markets and the implementation of standards and The Board created an independent Inspection Panel
codes. The Board discussed the Development Grant in 1993 to address morc closely the concerns of pco-
Facility, which provides grant financing for several ple affected by Bank projects by ensuring that the
of these initiatives, including activities rclating to Bank adheres to its operational policies and proce-
HIV/AIDS The Board has also been involved in dures in the design, preparation, and implemcnta-
preparations for the United Nations High-Level tion of projects Any group of indivicluals believing
Event on Financing for Development In addition, that they may be harmed by a Bank-supported proj-
the Board remained focused on the Bank's engage- ect may ask the panel to investigate complaints that
ment with civil society and NGOs, whose role in such harm stems from the Bank's railure to abidc by
the discussion of development issues has become its policies and procedures. The Executive Directors
more pronounced decide, on the recommendation of the Panel,
whether an investigation will take place
OVERSIGHT AND FIDUCIARY RESPONSIBILITY In fiscal 2001 the Board considered the Panel
Investigation Report and the 13ank Management rec-
The Board exercises oversight and fiduciary respon- ommendations on the Qinghai component of the
sibility on behalf of its shareholders, in part through China Western Poverty Reduction Project No fur-
its Audit Committee. The Committee reviewed its ther Board action was taken after the Chinese gov-
terms of reference to reflect the cvolving duties and ernment announced that it would undertake and
responsibilities of audit committees in an ever more finance the Qinghai component entirely with its
complex and risky environment The Committee own resources and on its own terms, as it could not
advises the Board on financial risk management and accept additional conditionality The Board approved
other governance issues to facilitate Board decisions and the Panel conducted two other investigations of
on policy issues. projects in Kenya and Ecuador that looked at appli-
cation of the Bank's policies on environmental
assessmcnt, consultation with or participation by
local people, and Bank supervision In both cases,
Following review by the Budget Committee, the Board approved managemcnt's recommended
Executive Directors approved an administrative actions in response to the Panel's investigation
budget, net of reimbursements, for fiscal 2001 of reports The Panel received two new requests for
$1,442.2 million This total budget included an allo- inspection concerning the Chad-Cameroon Pipeline
cation of $146 9 million for the Development Grant Project and the Coal India Environmental and
Facility The administrative budget xvas below the Social Mitigation Project
The Board of Executive Directors 39
12 r~~~~~~~~~�
E.
CMAN 3 Thematic Perspectilves
Addressing the Social, Institutional, and Economic
Dimensions of Poverty 42
Investing in People 46
Promoting Environmentally and Socially
Sustainable Development 49
Supporting Private Sector Development and
Infrastructure 52
Building Strong Financial Systems, Addressing
Vulnerabilities 5
Building Effective Legal and Judicial Systems 59
Addressing the Social, Institutional, and Economic Dimensions
of Poverty
I~~~~~~~~~~~~~~~L
In fiscal 2001 the World Bank intensified efforts Poverty has many faces It is hunger or homelessness It is being sick
to address many of the social, institutional, and and not being able to see a doctor It is fear for the future, living one
economic iseunrynpoday at a time And it is not having power representation, or freedom
economic Issues underlying poverty. In close part-
nership with the IMF, it accelerated implementation Program to accelerate poverty reduction in low-
of a country-owned approach to development that income countries PRSPs provide the basis for debt
firmly links poverty reduction to debt relief and con- relief under the enhanced Heavily Indebted Poor
cessional lending It also promoted good governance Countries (HIPC) Initiative and for concessional
and effective public institutions-both critical for Bank and Fund lending They identify key obstacles
sustained poverty reduction In addition, the Bank is to poverty reduction and lay out a plan to overcome
helping developing countries pursue gender equality those obstacles, with mechanisms to monitor progress
and integrate into the global economy, while working The country-driven nature of PRSPs is the program's
at the global level to strengthen the international most notable feature the strategies are produced by
financial architecture the countries themselves in broad consultation with
Much Bank lending to support improved eco- civil society and poor people-markmng an important
nomic management, policies, and institutions falls shift in culture for the Bank and the Fund. (See
under the umbrella of adjustment lending Adjustment box 3 1 )
lending promotes sustained growth and poverty The PRSP Program gained considerable
reduction by supporting countries' efforts to under- momentum in fiscal 2001 A total of 29 countries
take structural and social reforms (see table 3 1, and presented Interim PRSPs (I-PRSPs), in many cases
table 8 14 in About the World Bank). to qualify for preliminary HIPC debt relief. In addi-
tion, 3 countries presented their first Full PRSPs in
ACCELERATING SUPPORT FOR POVERTY fiscal 2001 Over the past year, the Bank has sought
REDUCTION STRATEGIES to better align its country assistance with countries'
visions and priorities as laid out in PRSPs The
In December 1999 the Bank and the IMF launched Poverty Reduction Support Credit (PRSC) was
the Poverty Reduction Strategy Paper (PRSP) introduced in fiscal 2001 to support an IDA-eligible
42 The World Bank Annual Report 2001
Box 3.1 Poverty-Reducing Spending in Full and Interim PRSPs
All PRSPs and I-PRSPs seek to shift public spending toward poverty-reducing
country's policy and institutional reform program to programs.
help implement its poverty reduction strategy (box
3.2). The PRSC is grounded in the principles of the Most countrystrategies proposeto:
Comprehensive Development Framework and the * Enhance access of the poor to primary education and health-care services, and
international development goals It is derived from * Emphasize infrastructure programs in water, roads, electricity, and
the PRSP, based on the Country Assistance Strategy, telecommunications.
and underpinned by suitable analysis-environmen-
tal, social, structural, and fiduciary. Over time, it is Some also propose to:
expected to become an important vehicle of IDA * Provide housingto the poor, and
financial support to low-income countries with * Strengthen social safety nets to include food subsidies or other food security
programs, social assistance programs, and labor-intensive public works.
strong programs, anchoring the Bank's overall sup-
port for their poverty reduction strategies To monitor progress, some countries explicitly target yearly reductions in the
The PRSP approach is still at an early stage. incidence of poverty. Intermediate targets often measure progress in enrollment,
The process was conceived as a broad framework for infant mortality rates, incidence of communicable diseases, and, in some coun-
engaging domestic stakeholders and external devel- tries, gender disparities.
opment partners, while providing a vehicle for
improved aid coordination Regional development
banks, United Nations development agencies, most________ ___
banks, United Nations development agencies, most Box 3.2 The Uganda Poverty Reduction Support Credit
bilateral donors, the European Union, and many
nongovernmental organizations have indicated sup-
porfor th appro a land a tions todwork wit On May 31. 2001, the Board of the World Bank approved a $150 million PRSC
pountneso m the apPRoach process an inthentin s e w k wfor Uganda to support the implementation of the country's poverty reduction
the process entails steadfast endeavor over the long strategy set out in Uganda's PRSP. The PRSC is the first of a planned series of
three World Bank operations to support Uganda's medium-term development
term Only when countries reduce poverty-an
iermpact y that n bcobnteserveduy poverta-nuMber o and reform program. The President's Report for the Uganda PRSC has been
impact that can be observed only over a number of disclosed and made publicly available at the World Bank's InfoShop.
years-can PRSPs cliam success.
The Uganda PRSC, the first IDA credit supporting the implementation of
a PRSP, supports policy and institutional measures in the government's strate-
FULFILLING PROMISES OF ENHANCED gy, with a focus on improving public service delivery through (1) efficient and
DEBT RELIEF equitable use of public resources, (2) improved governance through cross-
Fiscal 2001 was an important year for the HIPC cutting public sector reforms, and (3) improved access to and quality of educa-
Initiative. Building on enhancements in September tion, health care, and water and sanitation services. The PRSC builds on a
ni999 emphasiling deeper, broader, and faster debt broad range of economic and sector work carried out in Uganda- including
relief and stronger links to poverty reduction, debt household surveys, an enterprise survey, surveys to assess public service
relief was committed for an additional 16 countries delivery and corruption, and diagnostic reports such as the Country Financial
Benin, Cameroon, Chad, The Gambia, Guinea, Accountability Assessment and Country Procurement Assessment. It supports
Guinea-Bissau, Guyana, Honduras, Madagascar, the government's anticorruption action plan and helps to create an effective
Malawi, Mali, Nicaragua, Niger, Rwanda, Sao Tome incentive system to improve service delivery.
and Principc, and Zambia As a result of the HIPC The participatory process used to develop the government's poverty
Initiative, the 23 countries that have reached their reduction strategythat underpinsthe PRSP Program broadened the country's
decision points' under the enhanced framework will ownership of the reforms, and a large number of partners are ready to support
receive more than $34 billion in debt service relief their implementation. The multisector, programmatic approach promotes
over time from all creditors. This amount is equiva- Uganda's ownership of its poverty reduction and public expenditure program
lent in net present value (NPV) terms to nearly half and collaboration among local and external partners-with Bank support
of their total stock of external debt In combination through the PRSC focused on policy and institutional reform measures with the
highest poverty impact in those areas where the Bank has a comparative
1 Decision point The point at which the international community advantage. In addition, the approach helps reduce transaction costs in delivery
agrees-for countries with unsustainable debt levels and a solid record of external assistance, strengthen budgetary institutions, and align external
on economic reform and poverty reduction programs-on the amount
of relief needed to reduce outstanding debt to a sustainable level support for service delivery reforms with Uganda's budget cycle, which Is an
Multilateral creditors, including IDA, begin providing significant "inter- essential ingredient for sustained institutional reform and poverty reduction.
im assistance" beginning immediately at the decision point
Thematic Perspectives 43
with other sources of debt relief, their total out- Among governance issues, public expenditure
standing debt is projected to fall by more than management has emerged as a high-priority area.
two-thirds. Effective public spending is crucial for poverty
The year's considerable progress was enabled reduction, and strong public expenditure manage-
by the intense efforts and dynamic cooperation of ment systems are essential to ensure that develop-
HIPC governments, official creditors, and civil so- ment assistance is utilized as intended The Bank,
ciety from around the world The relief packages for with partners, is working on an integrated approach
the 23 countries were developed with country author- to improving the quality of expenditure management
ities and approved by the Bank and IMF Boards of in poor countries
Executive Directors in less than 16 months. Since 1997 anticorruption activities have been
As a result of the enhanced HIPC Initiative increasingly integral and important components of
assistance, the annual public debt service burdens of the Bank's public sector management portfolio,
the 23 countries over the next three years will be cut which represented 12 percent of the Bank's commit-
by roughly $1.1 billion, equal to 1 2 percent of GDP. ments in fiscal 2001 Increasingly, efforts are aimed
As a share of government revenues, debt service will at not only assessing the quality of governance but
fall from 28 percent before HIPC relief to about 13 also offering deeper insights into government per-
percent in 2001-02, freeing up resources for identi- formance and institutional arrangements.
fied poverty reduction priorities, including social
sector expenditures. Debt service payments will be PROMOTING GENDER EQUALITY
reduced to about 2 percent of GDP, in comparison
with 7 percent of GDP that these countries will be In fiscal 2001 the Bank published a major policy
spending on social investments, research report, Engendertng Development-Through
Notwithstanding this progress, much work Gender Equality in Rights, Resources, and Vloice The
remains to be done to ensure the long-term sustain- main findings of the report-which benefited from
ability of HIPCs By delivering debt relief sufficient extensive consultations with civil society, academia,
to reduce a country's level of debt in NPV terms to and donors-place gender at the center of the
either 150 percent of exports or 250 percent of gov- Bank's work on poverty reduction. The report shows
ernment revenues at the decision point, the HIPC that gender equality helps lower infant and child
Initiative provides a robust basis for long-term debt mortality, improve nutrition, and lower fertility rates,
sustainability. However, a permanent exit from debt it is also associated with lower HIVI/AIDS preva-
rescheduling can only be achieved if the underlying lence rates, less corruption in government, higher
causes that contributed to the debt problem are economic productivity, and faster growth-outcomes
addressed. Hence, debt sustainability depends not not traditionally linked to gender equality.
only upon the absolute level of debt, but also upon With strong empirical evidence that gender
a comprehensive set of policies that lead to povcrty inequalities tend to slow development, the Bank has
reduction and economic growth begun drafting a revised strategy for better integrating
gender into its assistance. Several regional consulta-
REFORMING PUBLIC INSTITUTIONS AND tions, including with client governments, internation-
STRE I INT BICG GOVERNANCE al agencies, and civil society, are helping to inform
this process Priorities are converging on diagnosing
Good governance and strong public institutions gender-related barriers, creating gender-inclusive
are increasingly seen as critical for development consultations, and working with country and external
effectiveness. More and more, the focus of Bank partners to identify and support appropriate action.
assistance is on helping countries to design and
implement good policies themselves A new strategy, HELPING COUNTRIES USE TRADE FOR
"Reforming Public Institutions and Strengthening DEVELOPMENT
Governance," was published in November 2000,
key new directions include emphasis on "bottom-up" Trade plays an important role in growth-and there-
empowerment and longer-term Bank lending to fore poverty reduction The Bank's three-pronged
allow time for institutional reform approach comprises analysis ol impediments to
44 The World Bank Annual Report 2001
trade, advocacy of better trade policies that support economic and financial system, and diagnosing the
development, and advice to policymakers. In fiscal social and structural obstacles to successful develop-
2001 the Bank engaged in research and dissemina- ment as a basis for Bank assistance
tion of studies demonstrating the crucial importance The Bank has been working closely with the
of opening developed-country markets to goods from IMIF on initiatives that will help developing countries
developing countries. The Bank is also helping benefit from the global economy The Financial
developing countries use the multilateral trading Sector Assessment Program identifies financial sys-
system more effectively through policy analysis, tem strengths and vulnerabilities (page 57). Under
trainin1g, and a handbook for trade negotiators A the Reports on the Observance of Standards and
new sourcebook of information on trade aims to Codes (ROSC) Program, the Bank prepares assess-
help client countries prepare PRSPs. In addition, ments in its traditional areas of expertise, ROSCs
two ongoing research programs, on general trade summarize the extent to Nvhich countries observe cer-
policies and agriculture, provide assistance to coun- tain Internationally recognized standards that can
tries in identifying priorities for reforms at both the help improve economic policymaking and strengthen
national and multilateral levels the international financial system In fiscal 2001 146
ROSC assessments were completed, 94 of which
STRENGTHENING THE INTERNATIONAL FINANCIAL were published. The Bank has also collaborated with
ARCHITECTURE the IMF and other partner organizations to develop a
set of principles and guidelines for effective insol-
The tern "international financial architecture" refers vency and creditor rights systems In fiscal 2001 the
to the financial and institutional arrangements that Board and the Development Committee agreecd that
are critical to help countries avoid and mitigate the Bank would, with partners, carry out a series of
crises, integrate into the global economy, and de- experimental country insolvency assessments under
velop successfully The Bank's role in this area has the ROSC Program A third area of collaboration
three dimensions ensuring that developing country relates to preparation of studies on external debt
perspectives are brought to bear on discussions on management that will help construct a set of core
international norms and governance, helping devel- principles for sovereign debt management
oping countries integrate into the international
Table 3.1 World Bank Adjustment Commitments, Fiscal 1999-2001
Fiscal 1999 Fiscal 2000 Fiscal 2001
Adjustment Commitments by Region S Million Percent $ Million Percent $ Million Percent
Africa 769 5 495 10 909 16
East Asia and Pacific 5,712 37 552 11 250 4
Europe and Central Asia 3,372 22 950 18 1,132 20
Latin America and the Caribbean 4,445 29 2,860 56 2,788 48
Middle East and North Africa 680 5 - - 185 3
South Asia 350 2 251 5 500 9
IBRD and IDA Adjustment Commitments
IBRD 13,937 91 4,426 87 3,937 68
IDA 1,391 9 682 13 1,826 32
Total Adjustment Loans and Credits 15,328 100 5,108 100 5,763 100
Total World Bank Lending Commitments
IBRD 22,182 10,919 10,487
IDA 6,813 4,358 6,764
Total IBRD plus IDA 28,996 15,276 17,251
Share of Adjustment Loans and Credits 53 33 33
Note Numbers may not add to totals because of rounding
Thematic Perspectives 45
Investing in People
Two million children die every year from vaccine-
preventable diseases. About three million people lost
their lives in the year 2000 from HIV/AIDS Many
people living in poverty lack basic health and educa-
tion, are vulnerable to crises, and have little personal
income or savings The world's human development >._ .
needs are staggering.
The World Bank remains the largest external fin- _
ancier of human development programs It recog-
nizes that healthy and educated people are the back- Children's attendance at underperforming rural publc schools in
bone of sustainable economic growth and central to Bangladesh has improved dramatically after government efforts to
any strategy for achieving the international develop- involve nongovemmental organizations in the schools' day-to-day
operation and maintenance The government is especially emphasizing
ment goals. Through lending and nonlending servic- girls' education, with support from the Bank
es, it helps countries invest in and provide social
safety nets for their people-efforts that help allevy- tation services, combined with broad public sector
ate some of the worst consequences of poverty while reform (see page 43). In addition, education projects
increasing people's chances to improve their own addressing health, nutrition, and child labor issues
well-being In fiscal 2001 new Icnding commitments demonstrate efforts to take advantage of synergies
for education, health, and social protection amount- across social sectors (box 3 3).
ed to $4 4 billion (figure 3 1) Nonlending services
ranged from analytical work and sharing of best prac- THE EDUCATION AGENDA: FOCUSING ON ACCESS,
tice to support for preparation of people-focused QUALITY,ANDGENDERCONCERNS
poverty reduction strategies and considerable work at
the global level, with multiple partners, to intensify Education empowers people, enhances opportunities
the fight against communicable diseases in particular. for greater participation in the labor market, and
The Bank also helped clients better integrate promotes security. The Bank's education strategy
human development concerns into overall poverty focuses on efforts proven to make a difference in
reduction efforts in fiscal 2001. The first Poverty increasing access to schooling and improving the
Reduction Support Credit provided Uganda interest- quality of education. The Bank has also committed
free, medium-term multisector support for delivery to building human capacity for the knowledge
of basic education, health care, and water and sani- economy A key thrust is to help countries eliminate
gender disparities in primary and secondary educa-
tion by 2005
Figure 3.1 Lending for Human Development, Fiscal 2001 At $ 11 billion, Bank lending for education in
Total of $4.4 billion fiscal 2001 was 1.5 times its fiscal 2000 level. The
(millions of dollars) 1,882 7 increase reflects the Bank's commitment-together
with the United Nations Educational, Scientific and
1,343 3 913.0 Cultural Organization, United Nations Development
1,1434 Programme, United Nations Children's Fund
6607 DIDA (UNICEF), and United Nations Population Fund-
584 8 IBRD to scale up its support to countries' education sys-
969.7 tems, following the April 2000 World Conference
558.6 682.6 on Education for All (EFA). New projects supported
improved access, quality, efficiency, and equlty at
Education Health, Nutrition, Social Protection
and Population
46 The World Bank Annual Report 2001
Box 3.3 Focusing Resources on Effective School Health
(FRESH)
Education for All.(EFA) is about getting all children into school help countries address digital divide and information
and keeping them there. Poor and disadvantaged children are communications technology issues. Collaboration
the ones whose participation is most compromised, by ill health with the private sector will further benefit from the
and mainutrition. FRESH is a multicountry, multipartner program IFC's new education strategy, which sees these play-
launched at the April 2000 World Conference on EFA, aimed at ers as partners in helping alleviate financial con-
forging cross-sectorai linkages between education and health straints, enhance social mobility, improve equity,
sectors. There are now 22 projects in the Africa region that encourage innovation, and promote effectiveness.
include a school health and nutrition component using the
FRESH framework. Conceived as an effective program to respond EXPANDING EFFORTS TOWARD A HEALTHY
to a need, it is beginning to increase the efficacy of other invest- GLOBAL POPULATION
ments in child development, promote better educational out-
comes, and achieve greater social equity, while also being cost In fiscal 2001 Bank lending to help countries
effective. Highlights of FRESH follow: improve health outcomes and health systems per-
* It helps countries develop the school health components of formance, and to promote sustainable financing of
social sector projects, emphasizing health-related school poli- health care, amounted to $1.3 billion. Significant
cies, provision of safe water and sanitation, skills-based health support was directed toward combating the
education, and school-based health and nutrition services. HIV/AIDS epidemic and other communicable dis-
* It allows an international exchange of information on school eases, the former evolving rapidly from a health issue
health and aims at a common vision of school health among into a formidable development challenge for many
development agencies. countries, especially in Africa (see also pages 27, 67,
* It serves to accelerate implementation of HIV/AIDS- and and 103). The Multi-Country HIV/AIDS Program for
malaria-prevention activities in the education sector. Africa and a similar multicountry program for the
Caribbean earmarked $500 million and $155 million,
respectively, for HIV/AIDS projects that support the
the primary, secondary, and vocational levels; an area scaling up of national prevention and care programs.
of focus was distance learning. As of June 30, 2001, Total Bank support for HIV/AIDS prevention, treat-
the Bank had 64 active education projects that ment, and care in stand-alone projects, as well as
address girls' education. For example, innovative components in other projects, amounted to $393.6
and effective programs are being implemented in million in fiscal 2001, and to $851.5 million over the
Bangladesh to benefit secondary school girls, and in last five years (see footnote e to table 1. I on page 26).
India to benefit primary school children. Results are The Bank has also accelerated its efforts to combat
improving: under a project in Guinea, for example, malaria and tuberculosis, diseases that are pre-
girls' enrollment increased moderately to 49 percent ventable but which are leading killers of poor people.
in 2000-01 from 44 percent a year earlier. The Bank The Bank also continued to help countries
is also helping improve adult-especially female- improve nutrition and reproductive health outcomes.
literacy in several countries. Efforts to support nutrition focused on its links to
The Bank also provides varied nonlending sup- poverty, its impact on learning and productivity, and
port for education. In fiscal 2001 such efforts includ- women's nutrition. The Bank's work in reproductive
ed analytical work, synthesis of good practice, and health emphasized the impoverishing effects of
capacity building, as well as technical support to help unplanned pregnancy, maternal mortality and morbid-
countries prepare Poverty Reduction Strategy Papers. ity, and sexually transmitted diseases. Operational
Major policy issues identified to be in early need of tools, such as practice guides on condom procure-
attention were education finance, teacher training ment and contracting for delivery of reproductive
and pay, and coverage (to widen access). Strategic health services, are helping to improve outcomes. And
alliances constitute another important form of sup- to arrest the growing health burden posed by non-
port. In fiscal 2001 the Bank worked with donor, communicable diseases, the Bank's work on the eco-
nongovernmental organization (NGO), and private nomics of tobacco control is helping to demonstrate
sector partners to support the Focusing Resources on that taxation, together with nonprice measures (for
Effective School Health (FRESH) program in Africa instance, advertising bans), can reduce smoking and
(box 3.3), and with the private sector in particular to save lives without negatively affecting the economy
Thematic Perspectives 47
Box 3.4 Multidimensional Support for Social Protection
Lending for social protection has grown over the past several years, espe- .
cially in fiscal 1999 in response to the Asian crisis. Bank support for this , l
aspect of human development encompasses a wide range of activities:
Providing training, with the World Bank Institute and to participants m-
worldwide, on how labor market policies and social safety nets can be ,t 4*
designed and implemented to reduce poverty and mitigate the risks L7*
facing the poor. _
Working with the International Labour Organisation and UNICEF to S-
improve child labor data and assess the impact of anti-child labor
efforts, and with IFC in its assistance to private sector clients in help-
ing end child labor.
Bringing pension reform tools to Argentina to broaden support of the
elderly, to India to devise coverage for the informal sector, and to
Senegal to reduce fiscal costs and free up resources for other urgent
needs. ,__ o
Building on the experience of social funds to give communities greater ov "
control over the decisions and resources that affect their lives, includ- -;=
ing emergency responses to natural disasters in Madagascar and
Cambodia this year. -.
Through a pilot social risk and vulnerability assessment in the Latin --i
America and Caribbean region, identifying two extremeiy vulnerable
groups generally unprotected by existing programs: children 0 to 5
years old facing serious health and developmental risks, and youth i
aged 15 to 24 years old, who are susceptible to dropping out of
school, unemployment, violence, and crime.
PROTECTING THE MOST VULNERABLE A Bolivian child is immunized Through policy dialogue, lending
operations, and partnerships such as the Global Alliance for Vaccines
Natural or manmade shocks can devastate poor faml- and Immunization, the World Bank is intensifying its role in commu-
nicable disease prevention and control
lies, robbing them of security, income, and productiv-
ity Social protection-risk reduction and mitigation,
and coping-measures are essential to making the
poor less vulnerable. Such measures seek to help
individuals, households, and communities better The Bank adopted a new Social Protection
manage risks, and to provide support to the critically Strategy in September 2000, prepared following
poor In fiscal 2001 these measures helped countries extensive consultations with governments, donors,
build viable pension systems, develop equitable and United Nations agencies, NGOs, and civil society.
inclusive labor markets, eliminate child labor, and The strategy benefits from an analysis of vulnera-
rely on social safety nets and social funds to reach bility and proposes reliance on pilot social risk and
vulnerable groups (box 3 4). Lending for social pro- vulnerability assessments as well as a methodology
tection continued to grow in fiscal 2001, amounting for social expenditure reviews that would enhancc the
to $1 9 billion, compared with $1 5 billion last year. coverage and impact of social protection programs.
48 The World Bank Annual Report 2001
Promoting Environmentally and Socially Sustainable Development
For the World Bank, promoting sustainable develop- - - -ji >.-
ment means improving the linkages between poverty I _
alleviation and the environment It means enhancing
food security, the overall well-being of rural people,
and the sustainable use of natural resources. And it
means ensuring greater civic engagement, particu-
larly by the most vulnerable groups in society
POVERTY AND THE ENVIRONMENT-
IMPROVING THE LINKAGE
Environmental degradation poses great harm to _
developing countries, which suffer annual losses of a=_ _
productivity and natural capital as high as 4 to 8
percent of CDP Over the past year, the Bank's
environmental work has been informed by global
consultations with institutions, governments, non- - __
governmental organizations (NGOs), civil society, W
and the private sector, through in-country workshops
as well as electronic and Web-based discussions.
With country and external partners, the Bank seeks
to help improve the
Quality of life-by reducing environmental
health risks and vulnerability to environmental
hazards
Quality of growth-by promoting sustainable
management of resources, such as forests, land,
and water, as an essential condition for long-term More than 430 million people live in countres with water stress or
scarcity, which threatens to increase fivefold by 2050, constraining
and lasting improvements in people's well-being economic growth and posing a risk to livelihoods and secunty
Li Quality of the global environmental commons-
by pursuing efforts targeted to benefit developing
countries and local communities Progress was made on the Nile Basin Initiative-a
regional partnership that brings together 10 African
The Bank is exploring how environmental work countries for the sustainable development of Nile
can be better designed to improve health outcomes. waters (see page 93).
Analysis in fiscal 2001 with India's Andhra Pradesh The Bank is also working actively at the global
state, in collaboration with the World Health level, with multiple partners, recognizing that a large
Organisation and donors, examined the effects of number of environmental concerns cannot be
poor household environments and lack of basic infra- addressed purely at the country level (see page 103
structure on public health The analysis influenced for examples of partnerships in the environment area,
the state's priorities in sector planning At a regional and page 21 for a description of the Prototype
level, "Cleaner Transport Fuels for Central Asia and Carbon Fund) As an implementing agency of the
the Caucasus,' a two-year study, resulted in a com- Global Environment Facility (GEF) and the
mitmcnt by authorities to improve fuel quality, moni- Multilateral Fund of the Montreal Protocol, the
tor vehicle emissions, and establish new regulations Bank continues to work with the United Nations
Thematic Perspectives 49
Development Programme, United Nations approved a grant to be used through the Global
Environment Programme, and United Nations Mechanism of the Convention to Combat
Industrial Development Organization to help coun- Desertification, which will help member countries
tries address global environmental challenges and combat desertification and mitigate the effects of
meet their international environmental obligations. drought by engaging civil society and the private sec-
tor. Through the GEF, the Bank is also coordinating
SUSTAINING LIFE the Africa Land and Water Initiative Action Program
to reverse the rapid trends of land and water degra-
About 1.2 billion people live on less than $1 a day, dation in Africa through comprehensive approaches
and 800 million people go to bed hungry every The Bank is also contributing to efforts to double
night, most of them live in rural areas. Slowing and global food production to feed an additional 2 9 bil-
reversing the decline in the natural resource base lion people by 2050 With the growing scarcity of
and improving the productivity of agriculture are land and water, future increases in food supplies have
imperatives for Bank assistance to come from increased productivity (rather than
The Bank is basing its rural work over the past expanded cultivation and irrigation). Supported by 58
year on three pillars-enhancing the social and eco- public and private sector members, including the
nomic well-being of rural people, improving food Bank, the 16 international research centers that make
security, and ensuring the sustainable use of natural up the Consultative Group on International Agricul-
resources Supplementing the rural work is the tural Research (CGIAR) are at the forefront of mobi-
Bank's attention to the forestry sector, aiming to har- hzing modern agricultural science on behalf of the
ness the potential of forests to reduce poverty, inte- world's poor and hungry (see page 103) CGIAR tech-
grate forests in sustainable economic development, nologies support the Banks rural lending programs to
and protect global forest values. The Bank is alleviate hunger and poverty, improve rural produc-
involved in partnerships and special initiatives, such tivity and raise agricultural incomes, manage natural
as the World Bank-World Wide Fund for Nature resources sustainably, and build partnerships with
Alliance for Forest Conservation and Sustainable national agricultural research programs. In fiscal 2001
Use, in which the Bank has invested close to the CGIAR launched a fast-track, participatory
$2 million. The Alliance aims at three targets by 2005 reform process toward a revitalized, world-class
50 million hectares of new forest protected areas, a knowledge network-an agile South-North partner-
comparable area of existing but highly threatened ship that works at the frontier of science for the poor
forest protected areas secured under effective and provides public goods research
management, and a global target of 200 million
hectares of production forest under independently DEALING WITH THE SOCIAL DIMENSIONS
certified sustainable management The Chief OF WITY
Executive Officer Forum on Forest Industry and OF POVERTY
Conservation-chaired by Mr. Wolfensohn-is a Sustainable development also requires addressing
private sector-civil society dialogue process with the social dimensions of poverty-that poor people
ambitious objectives for improved forest manage- must have more say and participate as equal part-
ment and forest conservation ners The Bank is working to improve the quality of
In fiscal 2001 the Bank actively supported efforts such operations and is developing a methodology for
to sustain life in rural areas A financial systems sup- including social dimensions in programmatic lend-
port project will increase access to microcredit in ing A review in fiscal 2001 found that good social
poor rural areas in Romania, for example, while sup- assessments are helping promote social Inclusion,
port for farmed marshlands, commercial and export participation, and ownership in 13ank operations.
agriculture, and agricultural services delivery will help Helping countries affected by conflict-
Rwanda on its road to recovery Total lending for frequently in partnership with other agencies-is a
rural development rose to $2 2 billion in fiscal 2001, fast-growing priority for the Bank. People affected by
compared with $2 1 billion in fiscal 2000 conflict are among the most vulnerable to poverty
Efforts at a global level are aimed at scaling up and ill health, including HIV/AIDS. Conflict and
development impact. In fiscal 2001 the Bank violence remain among the most pressing social and
50 The World Bank Annual Report 2001
Box 3.5 Community-Driven Development (CDD): Making
Progress Last
economic problems in several parts of the world Among the many dimensions of poverty are vulnerability, pow-
1 6 of the world's 20 poorest countries are in-or are erlessness, and exclusion. The World Bank has increased its
just emerging from-conflict, and some 35 others support for CDD, an approach explicitly identifying a role for
may currently be considered affected by conflict communities, society groups, and local people in development
Reconstructing societies after conflict is as much, if efforts. Support for CDD is significant and growing: new com-
not more, about helping people rebuild their lives mitments amounted to roughly $1 4 billion in fiscal 2001.
and meet their social and political security needs as The Bank intensified support to all regions for CDD in fis-
it is about repairing physical infrastructure Given its cal 2001. It has undertaken a major effort in 17 African coun-
overall mandate, the Bank hopes to contribute to tries to increase funding of community groups and elected
conflict prevention in two ways. by providing assis- local governments to enable their greater participation in poli-
tance that may help countries become more resilient cy and institutional reform. Similar efforts are ongoing in East
to eruption of violent conflict, for instance through Asia (Cambodia, East Timor, Indonesia, Vietnam), Eastern
strengthened capacity to address root causes and Europe (Albania, Armenia, Romania), and Central Asia. In South
trigger issues, and by strengthening its own and Asia and Latin America, the CDD portfolio continues to expand.
partners' sensitivities to the potential positive and
negative impacts of conflicts on development poli-
cies and programs. The Bank provides substantial
lending and nonlending support to countries emerg-
ing from conflict, particularly in Africa, ranging from
comprehensive reconstruction packages to small ity and reflect important lessons learned, appointed
grants from the Post-Conflict Fund Examples regional safeguard coordinators, established a safe-
include a program to help Eritrean excombatants guards "helpdesk" for staff, and upgraded the safe-
demobilize and re-integrate into normal life, and guards training program.
another to promote the transition from conflict to
peace in Mindanao, in the Philippines Participation and civic engagement. The Bank
The Bank's new operational policy, "Development increasingly recognizes that inclusive, participatory
Cooperation and Confict," guides its work in coun- development is key to more equitable and sustain-
tries affected by conflict The Post-Conflict Fund able development Over the past year, it sponsored
has, since 1997, provided financing for early phases events on civic engagement and participatory
of Bank work in post-conflict situations, with $29 approaches, with participants representing govern-
million in grants allocated to more than 30 coun- ments and NGOs in about 40 countries Civic
tries. Over the past year, and with increased bilateral engagement is a vital underpinning of the Poverty
donor finanicing, this fund has supported projects in Reduction Strategy Paper Program and also central
East Timor, Eritrea, and Georgia to the Community-Driven Development (CDD)
Cultural identity is another essential part of approach, which is about transferring funds to com-
empowering communities to take charge of their munity groups so that they can invest in their own
own destinies. The Bank continues to promote, cur- development priorities, as well as ensuring poor peo-
rently through over 80 stand-alone or component ple's access to information to enable them to make
operations, efforts that recognize the role of culture informed investment decisions and engage in entre-
in poverty reduction Examples include a cultural preneurial activities (box 3.5)
heritage management project in Eritrea, and a proj-
ect in China to upgrade urban infrastructure Science and technology (S&T). Dealing effectively
with urgent global issues-communicable diseases,
SHARPENING THE TOOLS FOR SUCCESS environmental degradation, or food security-
requires increased scientific and technological
Strengthening the safeguard system. The Bank's capacity The Bank is looking to S&T to help provide
environmental and social safeguard policies are solutions to the most pressing needs of poor people
designed to prevent and mitigate undue harm, to Looking farther out, the Bank aims to improve
people and their environments, that may potentially reliance on knowledge to inform development poli-
result from Bank operations. In fiscal 2001 the Bank cies and to build capacity in client countries to
restated its operational policies to ensure greater clar- generate and use knowledge on their own
Thematic Perspectives 51
Supporting Private Sector Development and Infrastructure
J . . . _
N*%E \ . ''-s ~
Private markets are crucial for economic growth But Opportunity forjobs and entrepreneunal activity in the pnvate sector is
well-functioning private markets do not alwavs devel- cntical for the poor Hence the pervasive Importance of small Informal
activity microfinance services, and small and medium enterprises, such
op spontaneously, they depend on sound institutional as this one in Azerbaijan
and policy environments. Growth, while the best way
out of poverty, is not always enough for all to escape
it Efforts are needed to ensure effective social safety faster (box 3 6) Moreover, foreign direct investment
nets. Responding to these dual considerations, the flows to developing countries continue to substan-
World Bank's private sector development effort aims tially exceed official aid flows (figure 3 4), although,
to help countries strengthen their investment cli- particularly since the Asian crisis, these flows have
mates and improve the delivery of infrastructure scrv- been concentrated in a few middle-income and
ices to poor people New lending to support private large countries To help more countries attract pri-
sector development and infrastructure amounted to vate investment, the Bank is developing systematic
$5.6 billion, with the active portfolio at $47 3 billion methodologies to identify investment barriers and
as of June 30, 2001 (figures 3 2 and 3 3). monitor progress on corrective efforts
In fiscal 2001 the Joint Bank-IFC Foreign
STRENGTHENING THE INVESTMENT CLIMATE Investment Advisory Service continued its foreign
direct investment surveys in places as diverse as
Economies open to trade and foreign investment East Timor, Nigeria, and the Russian Federation.
flows and bound by the rule of law tend to grow Such surveys-showing, for example, that the
52 The World Bank Annual Report 2001
absence of land markets, an intrusive tax regime, Figure 3.2 Lending for Private Sector Development and
and excessive foreign currency and customs regula- Infrastructure, Fiscal 2001
tions are impeding foreign investment in the Russian Share of total new commitments of $5.6 billion
Federation-are helping authorities develop correc- Private Sector
tive strategies. Development Telecommunications
10% 1%
The Bank is also strengthening its support for Mining
small and medium enterprise (SME) development Urban
A joint Bank-IFC SME department formed in fiscal 6%
2000 is blending the Bank's business-climate policy Water Supply Traniportation
and Sanitation Tasotto
expertise with the IFC's transaction and company- 10%
level experience. In Bosnia and Herzegovina, for
example, IFC's links with local business have fos-
tered policy dialogue between firms and government and Othr Energy
Joint Bank-IFC work is promoting the investment Oil and Gas
climate for mining in low-income countries while
encouraging environmental and social initiatives. A Note Total includes a multisector share of less than 1 percent
fiscal 2001 project in Mozambique, for example, will
not only catalyze private investment but also promote
private provision of infrastructure, HIV education, Figure 3.3 Portfolio of Active Projects in Private Sector
and SME support services to local communities. The Development and Infrastructure as of June 30, 2001
Bank is also helping build Mozambique's mining insti- Share of total of $47.3 billion
tutions, while improving the efficiency, capacity,
employment, and environmental impact of the mining Water Supply
sectors of Poland and Ukrainc 11% Electric Power and
Energy, Oil and Gas
Urban
Development
SUPPORT FOR INFRASTRUCTURE: 13%
'Mining
STRENGTHENING PRIVATE PARTICIPATION, 2%
SERVICES FOR THE POOR - Multisector
3%
Infrastructure has multiple links to poverty reduc- Transportation , Development
tion Improved infrastructure can help create jobs Telecommunications
and raise worker productivity It can save time and 1%
11-Iman effort in transporting water, crops, wood, and
other commodities It can also improve health (by
reducing indoor air pollution and emissions in urban
areas and making clean water available) and educa-
tions(by eaning aCess to schols, cm utes Figure 3.4 Net Long-Term Resource Flows to Developing
tion (d y expandg g access to schools, computers, Countries, 1991-2000
and lighting) (billions of dollars)
The Bank provides advice, finance, risk mitiga-
tion, and knowledge and information services to 178
help countries improve their infrastructure A major Foreign direct investment
objective relates to the design of sound legal and
regulatory frameworks to promote private participa-
tion. While lending support (typically to middle- 60 Official flows
income countries) tapers off as they gain increased
access to private finance, it will continue to be 3 7 38 6
important-together with technical assistance for 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
sector reform-in countries where such access
remains limited. Subsector highlights for the year Source World Bank 2001 Global Development Finance 2001, p36
Washington D C
are noted below. Note 2000 data are preliminary Net long-term resource flows are
defined as net liability transactions or origional maturity of greater than
one year
Thematic Perspectives 53
Box 3.6 Open Economies Grow Faster example of Bank support for innovation and private
sector involvement, the project is being replicated in
Research shows that the top developing country performers in Brazil, Chad, Guatemala, and Uruguay
terms of expanded foreign trade and investment (a group includ-
ing India, China, and Mexico) enjoyed good growth in the 1990s, Urban support. Demand for lending and nonlend-
while the rest of the developing world, as a whole, did poorly. ing services has been growing, spurred by a fiscal
The result was partly an outcome of trade liberalization, but also 2000 sector strategy and the Cities Alliance partner-
depended on factors such as the rule of law and corruption, infra- ship (see page 104) Many urban projects help regu-
structure investment, and streamliningof government regulations. larize land tenure in slums and provide basic infra-
structure services Reflecting a new generation of
GDP per Capita Growth Rates projects aimed at scaling up efforts, a fiscal 2001
(percent) 5.2 project in Mauritania has established a national
slum-upgrading program, launched it in five cities,
and created a national land-development program for
low-income residents.
1.9 Telecommunications. The Bank's support for
telecommunications reform continues to lead to dra-
-0.2 matic increases in private investment in telecommu-
nications and public access to telephones In Peru,
Less open Rich More open over the course of Bank-supported reforms invest-
policies countries policies o
ment increased from $28 million of public invest-
Sources Dollar, David 2001 'Improving the Investment climate ment in 1993 to over $2 billion in private investment
in India World Bank "Concept Note" Mimeo Washington, D C in 1998, while the share of poor households in Lima
with a telephone increased from I to 21 percent In
Mauritania, the sale of the first mobile license and
privatization of the state-owned operator, both with
Bank assistance, have set records for telecommuni-
Water. Key priorities were to maximize the develop- cations privatization proceeds in Africa and opened
mental impact of ongoing projects and ensure the the way to full competition The Bank is also sup-
quality of projects under preparation. For urban water porting private provision of rural telephone services
and sanitation projects, this strategy has meant a in Bolivia, Nepal, and Uganda, and community
shift toward competitive private management and Internet access in Thailand-through efforts pat-
financing of such services to improve utility perform- terned after a Chilean model that expanded access
ance and leverage the Bank's financial products from 85 to 99 percent of the population at modest
Rural projects are emphasizing greater user involve- cost to the public
ment, not only in designing and implementing but
also in contributing resources to the project. Energy. A new energy business renewal strategy
emphasizes market-based efforts to improve access to
Transport. Support to the sector in fiscal 2001 cleaner energy for poor people, energy tax reform to
reflected the Bank's dual emphasis on private partic- promote fiscal stability and cleaner fuels, and support
ipation and service provision for the poor Assistance for good governance and private sector development
to Brazil helped extend rail concessions to urban in the energy sector Important nonlending work over
railways while ensuring that the benefits of urban the year included a review of Nigeria's petroleum sec-
mass transit investments reach poor people. In tor and support to India and Bangladesh for use of
India, the Bank supported the development of the cleaner fuels for indoor cooking to improve women's
Delhi-Noida Bridge, the country's first major public- health A new global study on petroleum product tax-
private toll bridge concession A successful road ation will help advise governments on how best to
maintenance project using multiyear output-based avoid adverse effects on the poor in structuring taxes
contracts, just closed in Argentina, offers another and subsidies. Joint Bank-IFC support to Pakistan,
54 The World Bank Annual Report 2001
meanwhile, for sector reforms, and private participa- Box 3.7 Output-Based Aid
tion to develop local gas resources, should save the
country large sums on imported oil Ensuring maximum impact from aid projects and government
spending is a common concern of donor agencies and develop-
PROVIDING GUARANTEES TO INCREASE CLIENTS' mg-country governments. Output-based aid advances this objec-
ACCESS TO PRIVATE CAPITAL tive by focusing on more efficient, and better-targeted, service
delivery rather than on the construction of facilities (as in tradi-
In fiscal 2001 the Board approved a partial credit tional aid-funded projects).
guarantee for the Bolivia-Brazil gas pipeline, which A number of developing countries already rely on output-
has opened up Bolivia's huge gas potential and based aid approaches:
expanded energy markets in Brazil Also this year, Subsidies for water services to Chile's low-income households
the Bank issued a $158 8 million IBRD policy- flow to service providers only when a qualifying household
based guarantee for Colombia to help raise $1 bil- has received and paid for the service.
lion at a time when U S capital markets were vir- Bangladeshi field-workers who educate mothers on oral rehy-
tually closed to comparably rated borrowers. In dration techniques to reduce infant mortality are paid wages
April 2001 financing closed for the Haripur power that depend on how well the mothers can remember how to
project in Bangladesh, with backing from an IDA make and administer rehydration solutions.
partial risk guarantee that played a catalytic role in Peruvian telecommunications companies compete to expand
mobilizing first-time, long-term funding from lead- and sustain services in rural areas, on the basis of the small-
ing international banks In addition, the Bank est level of subsidy required to serve rural consumers.
introduced guarantee facilities to facilitate export
credits to private sector exporters in Africa, and
similar support is under preparation to help the
Russian Federation rehabilitate its forestry and coal
sectors Bank Group's total portfolio The content of such
work is changing (figure 3.3) It is shifting away
UPDATING THE BANK'S PRODUCTS AND STRATEGy from traditional investment lending to a new mix of
advisory services (some of it fee-based), phased
In fiscal 2001 the Bank Group engaged in substan- medium-term lending, and catalytic investment proj-
tial analytical work and consultations toward de- ects increasingly financed by IFC and MIGA with
velopment of a new private sector development policy support from the Bank. One such example
strategy Areas analyzed include the respective roles relates to output-based aid (box 3 7) An emerging
of the public and private sectors in development knowledge product is the Rapid Response Unit Web
and the link between private sector development site (rru.worldbank.org bj)), which offers clients
and poverty reduction online "selfhelp" and "helpdesk" services, together
TIhe private sector development and infrastruc- with customized fee-based service for small advisory
ture portfolio accounts for about 45 percent of the transactions.
Thematic Perspectives 55
Building Strong Financial Systems, Addressing Vulnerabilities
A strong financial system is an essential building block -
for a sound investment climate, job creation, and sus-
tainable growth. By improving poor people's access to
financial resources, a well-functioning financial sys-
tem directly supports their climb out of poverty It I'
also spurs growth and reduces the lkelihood and cost -
of financial crises, in this respect, its impact on pov-
erty reduction is indirect-but significant n
Financial sector development and reform take
time, growth does not occur overnight and recovery
Is not immediate Some financial systems in East --
Asia remain fragile Many emerging markets were
newly set back after seeing some recovery in 2001,
as slower growth in the United States and Japan - -I
reduced capital flows to them. New "fragilities" --
linked to fiscal and exchange rate issues and sustain-
ability of reform have emerged Turkey suffered a L
banking crisis and Argentina grappled with the r 4 1
threat of a liquidity crisis after three years of reces- ' -
sion As international financial systems integrate F ' .
further, the international financial community has [ K : ''
an even greater stake in working together to address '^ -
vulnerabilities by promoting international standards
and diverse financial systems
REGIONAL AND COUNTRY-LEVEL ASSISTANCE
The World Bank's regional and country-level activi-
ties include a range of lending and nonlending serv-
ices that respond to the specific needs of different
financial systems (see boxes 3 8 and 3 9) Support to !
low-income countries has focused on strengthening .
banking systems and increasing access to financial
services, in middle-income countries, the Bank has \ '
concentrated on deepening capital markets and i ____
improving the stability of financial systems - d
Lending services. Lending for financial sector reform A customer uses a newly installed Point of Sale terminal to pay for his
grocenes at Kalu e Angela, which serves one of the poor neighbor-
amounted to $2 2 billion in fiscal 2001, compared hoods of Praia, Cape Verde The store Is one of three thousand estab-
with $1 8 billion last year Support to Turkey was lishments connected to the electronic interbank payment system under
aimed at helping to restructure and privatize state- the Financial and Private Sector Development Project which was imple-
owned banks and to empower the bank failure resolu-
tion entity In Mexico the Bank continued assistance
to strengthen financial system infrastrUcture It also
56 The World Bank Annual Report 2001
Box 3.8 The Central Bank of Sri Lanka: A Homegrown
Re-engineering
Redirecting the mission of a central bank, reconnecting it to eco- undertaken in fiscal 2001, bringing the total to 35
nomic goals, and refocusing core functions is an enormous assessments since program inception in May 1999.
effort-one that requires the commitment and courage demon- Follow-up to these assessments, in terms of technical
strated by the Central Bank of Sri Lanka (CBSL). Following exten- assistance, has already taken place in more than a
sive discussions over the course of 2000, CBSL staff determined dozen countries. Another 24 to 30 countries are
that the bank needed to realign its role within the Sri Lankan expected to participate in the program in fiscal 2002.
economy and better position itself to support the nation's eco-
nomic development. Technical assistance. Technical assistance has
Taking its cue from several forward-thinking central banks, been an important tool for the Bank in helping gov-
CBSL has decided to shed ancillary functions such as public debt ernments carry out financial system reform. Advice
management, management of the Employees Provident Fund, continued to Indonesia to target pressure points for
and development financing activities. CBSL staff have refocused revitalizing economic growth: corporate governance
the bank's objectives on price stability and financial sector sta- of state banks, debt management, and corporate
bility. Management is in the process of restructuring CBSL, debt restructuring. In Ukraine, the Bank helped the
automating business activities, and implementing a Voluntary government clearly define the methods and proce-
Retirement Scheme-which will result in a 50 percent reduction dures for the resolution of one of the largest banks
in staff. CBSL is also committed to dramatic changes in human in the country, Banka Ukraina. Efforts to deepen
resource policies, moving away from time-in-grade criteria for and scale up microfinance services in Bangladesh
staff promotion to a merit-based system. will increase access to finance by up to 1.5 million
In lune 2001, the World Bank approved a $30.3 million new microcredit borrowers and will help skilled
credit to support this completely "homegrown" model of institu- microcredit entrepreneurs move to higher levels of
tional reform. Success over the long term is very likely because activities through loans of up to $1,000. By directly
the program was designed by the central bankers themselves. targeting women and the poorest segments of the
population in rural and urban areas, this project will
directly reduce poverty.
helped the Central Bank of West African States to SUPPORT AT THE GLOBAL LEVEL
put in place a set of regional payment mechanisms,
and supported Brazil's efforts to accelerate and con- At the global level, the Bank has worked to strength-
solidate financial sector reform-and thereby prevent en the international financial architecture by promot-
financial crises, which hit the poor hardest. These ing international standards that respond to the
loans are representative of the Bank's efforts to help requirements of developing countries, by developing
governments reduce the risks to consumers of using tools to help governments maintain the stability of
financial services; minimize the cost of resolving bad financial systems, and by offering training programs
banks (thus enabling other government spending); to build the capacity of supervisory and regulatory
and strengthen financial system infrastructLures, wvith- agencies. Besides the IMF, with whom coordination
out wvhich grovtli could not take place. on financial sector work has increased significantly in
the past few years, partners in these efforts include
Nonlending services. A core diagnostic process the Financial Stability Forum, Basel Committee on
underlying activities in many countries is the joint Banking Supervision, International Organization of
World Bank-IMIF Financial SectorAssessment Securities Commissions, and International
lProgram. Joint missions of financial sector specialists Association of Insurance Supervisors. The Bank
help national authorities diagnose vulnerabilities and brings its unique perspective to global standard-
priorities in their financial sectors and assess obser- setting bodies, based on its experience in the field
vance of select international supervisory and regula- and understanding of the difficulties in implementing
tory standards and codes. The IMF's focus on the financial standards in a developing-country context.
linkages between the financial sector and macroeco- For example, the lessons learned from implementing
nomic performance is complemented by the 13ank's payment system standards in Latin America's
emphasis on economic development and capacity Western Hemisphere Clearance and Settlement
building. Twenty-three country assessments were Initiative were valuable in guiding the assessment
Thematic Perspectives 57
Box 3.9 Changing Cape Verde's Financial Landscape:
Sustained Reform Pays Off
In the early 1990s Cape Verde's financial sector was underde- and implementation of the Core Principles for
veloped: banks were unprofitable and carried bad loans, the Systemically Important Payments Systems
payments system was nonfunctional, and a weak legal and The Bank has changed the way it generates and
regulatory environment stifled growth. The financial condition delivers knowledge on financial systems it has
of the country's largest bank, the state-owned Banco worked more closely with partners, taken advantage
Comercial do Atlantico (BCA), was deteriorating, and the gov- of the Internet and distance learning, built online
ernment had to act. Given the bank's 90 percent market share databases, and addressed information gaps that the
and high liquidation costs, the World Bank recommended that Bank is uniquely able to fill Specifically, the Bank is
the government restructure BCA instead. helping countries understand the new challenges
With support from the World Bank, the government of and choices offered by electroniic finance and the
Cape Verde embarked on an ambitious economic reform pro- impact of technology on the integration of regional
gram in 1996. A number of profound changes were introduced. financial markets in developing countries Together
with the IMF, the Bank produced a handbook for
Institutional changes ' developing government bond markets-essential for
Changing BCA's management team and training staff to be governments to reduce the exposure to external
bankers rather than civil servants shocks. The Bank has tripled the resources accessi-
Upgrading and improving management information systems ble through the Fiancial Sector Web site, addng
Introducing new financial products and services online databases that allow users to access banking
Restructuring and privatizing BCA laws and compare information about how banks are
Strengthening and regularizing bank supervision and improv- regulated and supervised around the world
ing the legal environment Central to the dissemination effort is a new
model for delivering training and knowledge to mem-
Systemic changes ber countries Together with partners in the finan-
Enhancing the role of the country's central bank as the mon- cial, academic, and official communities, the Bank
etary authority and supervisor of the financial system has doubled Its course offerings. Over 33 programs
Installing a modern and electronic-based payments system laddress policy issues im bankig, capital markets,
(SWIFT, or Society for Worldwide Interbank Financial electronic finance, small financial systems, credit-
Telecommunication) reporting systems and credit scoring, housing
Opening up the financial sector to foreign banks, leading to finance, insurance supervision, disaster risk mitiga-
better quality services tion, payments systems, and microfinance
Over five years, BCA-and Cape Verde's financial system as a
whole-have been transformed. The two state-owned banks
(including BCA) have been privatized and, combined with the
arrival of foreign banks, competition has intensified in the
banking sector; bank governance has improved; the culture has
changed, with a civil service mentality progressively replaced
with banking skills; and modern and electronic-based banking
has been introduced. In addition, banks have become more
profitable, have better-quality balance sheets, and have
improved their services to customers.
58 The World Bank Annual Report 2001
Building Effective Legal and Judicial Systems
Fighting poverty for lasting results is the World Legal service centers for poor women under the Ecuador Judicial
Bank's mission Effective and equitable legal systems Reform Project have assisted over 17, 000 women to exercise their
constitutional and civil nghts Here, the World Bank's Vice President
are vital to eradicating poverty-and sustaining and General Counsel Ko-Yung Tung visits with women at one of the
gains. The Asian financial crisis of the late 1990s centers
demonstrated not only that a sound financial archi-
tecture is essential for growth but also that an
effective legal and judicial system is paramount for need for legal and judicial reform. The rule of law
growth to be equitable and sustainable The transi- requires the existence of an appropriate legislative
tLion in Eastern Europe has shown that market forces framework and predictable and fair enforcement by
alone, without transparent laws and fair enforce- independent judiciaries, and it calls for accountable
ment, can lead to uneven economic growth and and legitimate governments to maintain order, pro-
increased poverty Poor people often lack legal rights mote private sector growth, and fight inequality.
that would empower them to take advantage of
opportunities and protect them from arbitrary and BANK SUPPORT FOR LAW AND JUSTICE
inequitable treatment. They, more than any other
group in society, are adversely affected by laws per- In line with a more comprehensive approach to
mitting discrimination, deficient laws and institu- development, the Bank's support for law and justice
tions that fail to protect individual and property has evolved from specific law reform, aimed at eco-
rights, and insufficient enforcement of these laws, as nomic development, to a broader spectrum of activi-
well as other barriers to justice. ties Such activities have included legal education for
These lessons have prompted an increasing the general public in the Rtissian Federation, anticor-
number of countries to promote the rule of law as a ruption programs in Sri Lanka's judiciary, indigenous
sine qua non of development and to recognize the dispute resolution mechanisms in Guatemala, and
Thematic Perspectives 59
legal aid for poor women in Ecuador. While the BUILDING A SOLID KNOWLEDGE BASE THROUGH
majority of legal and judicial reform projects have an NONLENDING SERVICES
indirect impact on poor people, innovative compo- Sharing of global experience. As work on legal and
nents are often included in projects to reach the judicial systems must be founded on solid knowl-
most vulnerable members of society In poorer coun- edge, creating and disseminating global knowledge
tries, the Bank supports efforts to bring justice close egal and dl remhas globa knor
to the poor both physically and culturally by enhanc- on legal and judicial reform has become a major
ing effective traditional informal mechanisms-while focus of Bank assistance in this area Following
ing effective tradibuioaldg iformpatlehformal sys- strong participation by legal, judicial, and other
at the same time building a compatible al minterested experts in the Global Conference on
tem, and changing inherent traditional biases that Comprehensive Legal Reform held in June 2000, the
may hurt the poor. In its work with middle-income Bank launched an electronic forum to broaden the
countries, the Bank concentrates its efforts on mod- dialogue and build on the partnerships forged during
ernizing the legal framework and strengthening the the conference Over 600 subscribers from around
judicial system to promote economic development the wvorld participated in this virtual discussion Later
The broad objectives of assistance are to help in the year the Bank launched the Development
about legal and judicial reform, improve gover- Gateway for Law and Justice, initially focusing on
bring ai and judctref, improeae nsolvency law, judicial and legal reform, child labor
nance and physical infrastructure, and increasela,aditrtonlevomnalawAnweec
access to justice Key elements of reform include law, and international environmental law. A new elec-
access to jutm icel Keyelementsof threfough incde tronic forum initiated in May 2001 sought to develop
promoting judicial independence through improved momentum for the July 2001 Conference,
appointment systems, planning, and financing, as 'Empowerment, Security and Opportunity through
well as disciplinary procedures, modernizing judicial Law and justice," in St. Petersburg, the Russian
administration and case management, and training Federation It also served the purpose of benefiting
judges and court personnel Governance improve- those unable to attend the conference
ments encompass strengtheniing anticorruption pro-
grams, building capacity in public agencies and civil Building capacity among legal practitioners.
society organizations, and supporting bar associa- Knowledge sharing took other forms in fiscal 2001
tions and legal education Bank assistance may The Bank designed and launched a distance learning
include improvements in physical infrastructure, pilot course for Bangladesh, Indonesia, the
such as providing public information areas in court- pilippines, Sr Lanka, andoThala, tle
houses and setting design standards for court build- Phlipl Rnes, Sri Lanka, and Thailand, entitled
ings to improve physical access for the public, as "Judicial Reform Improvng Performance and
well as to increase efficiency Access to justice can Accountablity" Ths course focused on judicial inde-
be enhanced by providing legal counseling and advo- pendence and accountability, case management,
cacy, particularly for the vulnerable, and by develop- empirical research, and corruption control. Another
ing alternative dispute resolution mechanisms and
modernizing court administration
Working closely with governments, bar associa- Figure 3.5 Legal and Judiciat Reform Activities
tions, judges, and civil society, the Bank is embark- Share of 481 selected Bank projects
ing on a number of activities in support of law and (percent)
justice (figure 3 5). These diverse activities include
the sharing of global and regional knowledge on 23 26 31
topical issues, assessments of countries' legal and H A 38 - 39 49
judicial systems, and financing of countries' legal 25 27 1 23 Law reform
and judicial efforts Together, these activities are 13 _ E Knwledge
helping to promote legal knowledge, as well as * capacity
capacity and institution building, prerequisites for * building
legal reform and for effective use of financial assis-
tance
AFR EAP ECA LAC MNA SAR
60 The World Bank Annual Report 2001
innovation is the World Bank's Legal Yearbook, a include banking, corporate governance, environ-
publication to be launched jointly with the IFC and ment, insolvency, infrastructure, water and forests,
MIClGA, offering seminal articles, case studies, and and land titling, as well as gender equity and indige-
legal materials covering various subject arcas of devel- nous peoples In addition, an insolvency initiative-
opment la\w in partnership with the IMF, regional development
banks. IFC, the United Nations Commission on
Sharing global best practice. While laws are International Trade Law, the Organisation for
country specific, they benefit from regional harmo- Economic Co-operation and Development, the
nizationi and Incorporation of global best-practice International Federation of Insolvency Practitioncrs,
principles to foster empowerment, security, and and the International Bar Association-was
opportunity Advisory services to borro-wing countries launched to develop best practices and guidelines
helped tailor global comparative expertise to coun- for effective insolvency and creditor rights' systems
try-specific culture and traditions in a growing Also, the 13ank established an International Advisory
number of areas T hese areas have expanded to Council on Law and Justice, made LIp of leading
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Thematic Perspectives 61
Box 3.10 Support for Bangladesh's Business Climate, LENDING FOR REFORM
Women, and Poor People To date there are 31 stand-alone projects in legal
Approved in fiscal 2001, the Bangladesh Legal and Judicial Capacity and judmbial reform, there are more than ce t rmes
Building Project is aimed at (1) improving the business environment
ects that deal with some aspect of legal and judicial
by making the civil justice system more supportive of economic ecorm New in fore a l and udicial
activity, and (2) improving access to justice for women and poor peo- reform New lending for legal and judicial reform
ple. The project combines traditional elements of judicial reform with amounted to $47 millon for fpscal 2001-wa th
innovative measures to increase access to lustice and fight corrup- another $51 5 mdllion in preparation-and concen-
tion. It also promotes women's representation on the bench, gender-
poorest countries. Activities included, a comprehen-
sensitivity training for judges and court personnel, legal aid for poor
women, and informal dispute resolution mechanisms to bring lustice sive program for legal and judicial reform in
to the underprivileged. Bangladesh (see box 3.10) as well as similar pro-
grams in preparation for Benin, Guinea, the
The project's capacity-building component will help improve iippesa ra Le eT f irstnfull-scale
court administration and case management systems, upgrade court evaluatineof a jicia reorm p ro t wasc le
infrastructure, strengthen small claims courts, provide training, and evaluation of a judlcial reform project was complet-
upgrade training facilities Legal literacy and public awareness cam- ed for Boltvha, alloweng the Bank to draw the fLrst
paigns would be carried out in cooperation with local nongovern- Aerica. the evaluan undec ore th in
mental organizations. ~~America. The evaluation underscored the long-term
menial organizations.
nature of legal and judicial reform and the need for
The project-which was built on extensive consultations with
civil society, legal professionals, and government officials-was not only realsti c c xpectatmons and goals but also
funded by an IDA credit ($30 6 million, total project cost $43 7 mil- allitkh o mders.
lion), with cofinancing by the Danish International Development A survey of recent Bank activities in knowledge,
Administration and the Canadian International Development Agency. capacity building, and law reform in 84 countries
shows that the Africa Region had the highest percent-
age (52 percent) of capacity-building activities in legal
and judicial reform (figure 3 5) Capacity- and institu-
jurists and legal scholars, to provide guidance to the tion-building aspects of the legal and judicial reform
Bank on its law- and justice-related activities activities supported by the Bank aim at strengthening
the judiciary, strengthening legal institutions, and
Assessing countries' legal and judicial systems. increasing access to justice Included in these activi-
Through intensive, comprehensive diagnostic assess- ties was a series of workshops held to support the har-
ments, the Bank has been building its knowledge of monization of commercial codes in 16 (francophone
the significant elements of countrnes' legal systems. and lusophone) African countries under the
Legal and judicial sector assessments are the basis for Organisation pour l'Harmonisation en Afrique du
dialogue with governments and for the design and Droit des Affaires Treaty, as well as the strengthening
implementation of programs, in concert with other of the women lawyers' association in Niger to increase
development partners In fiscal 2001 the Bank under- its capacity to deliver legal services to the rural and
took assessments for Argentina, Romania, the Russian urban poor Forty-nine percent of the activities in the
Federation, the Slovak Republic, and the Federal South Asia Region were law reform activities, the
Republic of Yugoslavia Such assessments review Europe and Central Asia Region was close behind
appointment and disciplinary procedures of judges and with 38 percent. These activities included reviewing
provide baseline information on each system's effi- land titling in Sri Lanka, as well as providing techni-
ciency and effectiveness Results from some of the cal assistance on insolvency, enterprise restructuring,
assessments show that key areas in need of further in- and institutional and regulatory reforms in the Czech
depth analysis are access to justice, alternative dispute Republic The East Asia Region had the largest num-
resolution mechanisms, gender protection, the cost of ber of knowledge activities, including a legal needs
inefficient systems, and corruption. assessment in Mongolia
62 The World Bank Annual Report 2001
Regional Perspectives
Africa 65
East Asia and Pacific 70
South Asia 75
Europe and Central Asia 80
Latin America and the Caribbean 85
Middle East and North Africa go
Gross Domestic Product-per Capita Index
1990-2000
Africa East Asia and Pacific South Asia
200 200 200
178
150 150 150 139
100 100 100
100 95____________________ 100 100
50 50 0
1990 2000 1990 2000 1990 2000
Europe and Central Asia Latin America and the Caribbean Middle East and North Africa
200 200 200
150 150 150
118 111
100 100 100
100 ~ ~ ~ ~ ~~~~~~4100 _______________________
50 50 50
0 0 -0
1990 2000 1990 2000 1990 2000
Source World Development Indicators database
HIV/AIDS: Prevention Is Vital
Today 36 million people are infected
with HIV; more than 21 million have died
of AI DS since the 1980s; and over 13
million children have been orphaned by
the disease.
As a cosponsor of the Joint United
Nations Programme on HIV/AIDS
(UNAIDS), the World Bank has commit-
ted more resources to HIV/AIDS in fiscal
2001 than in any previous year. Other
sections of this Annual Report discuss
the Bank's support to Africa (page 27)
and work with partners (page 103).
In this chapter, the "Fast Facts" box in
each section shows the number of per-
gD H -,,,, U1- ' DL , sons living with HIV/AIDS.* While the
epidemic's impact on Sub-Saharan Africa
has been by far the gravest, data for
c w( ly a $@ltA�&nCTO Oa..South Asia-a region with relatively low
HlIV prevalence rates but extensive vul-
it O Onerability to the infection -underscore
llJ1llV/Affl)D9s gm a gll()Ll: $ W that both rates and absolute numbers
matter. South Asia's large population, for
example, means that a rise of a mere 0.1
,guffez$ bwhX knYcdop meng a8 o t/ d~7 percent in the overall adult prevalence
rate would increase the region's total of
$flg( 21U9o adults living with HIV by about half a
million persons.
Prevention is vital. And it is esti-
mated that, while a national prevention
m gFt U.N. S@ g fo ow�fios program in Sub-Saharan Africa would
cost less than $3 per capita with preva-
lence rates below 5 percent, costs would
quadruple to $12 per capita at preva-
lence rates of 15 percent. UNAIDS esti-
mates that a basic HIV/AIDS program in
all developing countries would cost at
least $9.2 billion per year, six times the
current level of investment.
* Figures presented in the "Fast Facts" boxes in
this chapter represent UNAIDS estimates as of
December 2000 and are based on UNAIDS
regional definitions, which differ somewhat from
those used by the World Bank For more details,
visit www.unaids.org e'
"Today in Africa, we are aware that it's not the
Bank or the Fund that is going to develop our
countries orfight against poverty. It's up to us.
We shall do it. We need to be accompanied by
these institutions because they have the know-
.1 how that helps us to amplify, multiply, and
accelerate what we are going to do."
Ali Badjo Gamatie, Minister of Finance of Niger, at the
Spring 2001 Meetings of the World Bank and IMF.
incomes depended on a strong human resource base Countries
Africa in Africa-calling for better access to health and Wlogd Bank
education services and an exceptional, concerted Borrowing:
REGIONAL CONTEXT: URGENT NEED FOR FASTER, fight against HIV/AIDS. Angola
REGIONWIDE DEVELOPMENT Regional cooperation and integration is also nec- Benin
essary to increase Africa's competitiveness and posi- Botswana
Economic growth in Africa in 2000 was mixed. While tion it to maximize the benefits of globalization Burundi
it averaged 7 percent in Mozambique and Uganda Enhancing African access to global markets- Cameroon
Cape Verde
and 5 percent in 14 other countries, Sub-Saharan especially the markets of industrialized countries Central African
Africa's economic performance has, on average, weak- and for agricultural products-is an essential factor, Republic
Chad
ened over the last two years, largely due to resurgent alongside debt relief and renewed official aid, for Comoros
conflicts and political upheavals in a few countries. In sustaining growth. Congo,
addition, sharply higher oil prices in 2000 created Democratic
adverse external shocks for some countries, while WORLD BANK ASSISTANCE: Congo,
markets for other primary exports were depressed. Republic of
ACCELERATING AFRICA'S DEVELOPMENT Cote d'lvoire
For much of the region, inequality is still high Equatorial
and growth remains below the 5 percent rate needed Bank lending to Africa rose from $2.2 billion in fis- Guinea
Eritrea
to prevent an increase in the number of poor Many cal 2000 to $3.4 billion in fiscal 2001 A strategy Ethiopia
still have no access to basic services and cannot was submitted to the Board in December 2000 to Gabon
Gambia, The
effectively participate in the modern economy increase IDA lending to Africa-to reach 50 percent Ghana
HIV/AIDS remains one of the largest challenges to of total IDA resources-while strengthening mecha- Guinea
human development in Africa, having already nisms to better reflect country performance in the Kenya
reversed hard-won gains in life expectancy in several allocations. The strategy was based on discussions Lesotho
countries. Africa has also experienced falling levels held with IDA Deputies around the IDA-10-IDA-12 Liberia
Madagascar
of overseas development assistance, down to $19 per review, in preparation of the 13th Replenishment of Malawi
capita by 1998 from $32 in 1990. IDA. Lending included new responses to the Mali
Mauritania
These factors have sharpened the urgency for HIV/AIDS crisis and oil price shocks, as well as re- Mauritius
accelerated development in Africa. At the 2000 engagement in several post-conflict countries. The Mozambique
Namibia
World Bank-IMF Annual Meetings in Prague, Bank increased aid flows also reflect the dramatically Niger
President James D. Wolfensohn and IMF Managing improved development effectiveness of the region's Nigeria
Director Horst Kohler committed to making Africa a Bank-financed projects following intense efforts to Rwanda
priority In February 2001 they met with 22 African raise the quality of project preparation and supervi- Principe
heads of state in Bamako, Mali, and Dar Es Salaam, sion. Priority areas for Bank assistance were consis- Senegal
Seychelles
Tanzania, to listen to their visions of how Africa can tent with those articulated in the 2000 landmark Sierra Leone
accelerate growth rates, drastically reduce poverty, study, Can Africa Claim the 21st Century?, which pro- Somalia
South Africa
and position itself to benefit from globalization. The posed ways for international donors to better support Sudan
leaders recognized that poverty reduction had to Africa's development efforts with a focus on improv- Swaziland
Tanzania
begin with peace, democracy, and good governance. ing governance and resolving conflicts, investing in Togo
And they acknowledged that prospects for higher people, increasing competitiveness and diversifying Uganda
Zambia
Zimbabwe
Regional Perspectives 65
Africa Fast Facts
Total population: 0.7 billion
Population growth: 2.4%
Life expectancy at birth: 47 years economies, reducing aid dependence, and strengthen-
Infant mortality per 1,000 births: 92 ing partnerships. Key priorities in fiscal 2001 included
Female youth illiteracy: 26% providing debt relief to the poorest countries,
2000 GNI per capita: $480 tackling the HIV/AIDS epidemic, spurring private
Number of persons living with HIV/AIDS: 25 million sector development, and helping countries
Note: Life expectancy at birth and infant mortality rate per 1, 000 births are for 1999, other empower communities as well as prevent and
Indicators are for 2000, from the World Development Indicators database. The term gross recover from conflict
national Income (GNI) is now used instead of gross national product (GNP). The Bank works closely with multiple develop-
I .. ment partners in Africa, including multilateral organ-
Total FY01 New Commitments Total Y m e~tS - J izations such as the African Development Bank, key
IBRD $0 million 11,43 i4o,
bilaterals, the private sector, and nongovernmental
IDA $3,369.6 million _ I, organizations (NGOs). For example, it works with
the Food and Agriculture Organization on rural
'a aa@111- a a a s a- a - a * a S development, with the Forum of African Women
* iR.RIm Educationalists on girls' education, and with the
International Partnership Against AIDS in Africa, in
whose support it contributed $4 million to the Joint
United Nations Programme on HIV/AIDS
r - (UNAIDS) Secretariat. In addition, the Strategic
Partnership with Africa symbolizes the Bank's role in
bringing together aid agencies and African institu-
tions, providing a forum for coherently addressing
.A- -. Africa's development issues The Bank is also work-
pL , ming closely with other partners to support the Nile
Basin Initiative, and in June 2001 hosted the
.rp. {'3International Consortium for Cooperation on the
_ --e /' Nile, a Consultative Group-style meeting aimed at
t 4 | i. mobilizing funding for sustainable development of
the 10 countries of the Nile Basin.
Table 4. 1 shows the value and sectoral distribu-
tion of total Bank lending to the Sub-Saharan Africa
region in the fiscal 1992-2001 period. Table 8.2
(see About the World Bank) compares commit-
ments, disbursements, and net transfers to the
region for fiscal 1996-2001, and table 8.8 (see
About the World Bank) shows operations approved
in fiscal 2001, by country. Figure 4.1 shows IBRD
and IDA lending by sector.
Supporting poverty reduction through debt relief
A total of 13 African countries qualified in fiscal 2001
to receive debt relief under the enhanced Heavily
Indebted Poor Countries (HIPC) Initiative For these
Kenyan students regulate the flow of liquid into a flask dunng a
chemistry class at Kisumu Girls' High School Girls' educatbon is an countries, debt service will be reduced over tme,
important pnonty for many African countries from all creditors, by about two-thirds, or over $25
billion. Particularly in Africa such debt relief reflects
the coming together of a global and diverse group of
partners The Bank helped achieve consensus on debt
reduction without jeopardizing positive aid transfers.
66 The World Bank Annual Report 2001
1. 2~~~~~~~~~~~~~~~~~~~~/
IDA-eligible African countries became eligible
for debt relief by preparing Poverty Reduction L
Strategy Papers (PRSPs), which bring aid agencies
and countries together around common goals
defined by the country. Through the PRSP process,
17 African countries began to pursue a country-
driven development agenda, underpinned by a
process of domestic consensus building and with
support from development partners. Such support is
provided by the IMF's Poverty Reduction and
Growth Facility and the Bank's Poverty Reduction
Support Credit, the first of which was approved for -
Uganda in fiscal 2001 (see page 43) -
Tackling the HIV/AIDS epidemic and other
communicable diseases
Investing in people-and addressing HIV/AIDS in
particular-has been a key priority for the Bank,
worklng closely with UNAIDS and other partners
(see page 103). In September 2000, through a Multi-
Country HIV/AIDS Program for Africa, the Bank
made a regionwide commitment to put all the neces-
sary resources at the disposal of African countries
struck by the pandemic (see page 27). The Bank ear- A young Peul Beroro girl and her father near the southem town of
marked an initial $500 million in flexible and rapid Zinder are among Niger's population of some 105 million whose living
for indiv a Hconditions the Bank seeks to Improve A key focus of Bank assistance
IDA funding for idividual HIV/AIDS projects devel- to Nlger is combating desertification
oped by Sub-Saharan African countries, of which
$287 million was committed in fiscal 2001 for proj-
ects in Cameroon, Eritrea, Ethiopia, The Gambia,
Ghana, Kenya, and Uganda. A second phase is being
Figure 4.1 Africa: IBRl and IDA Lending by Sector, prepared In fiscal 2001 the Bank also stepped up its
Share of total of $3.4 billion support for the fight against malaria, a serious killer,
particularly among Africa's children (box 4 1)
Urban Development
Infrastructurea 1% Agriculture and Spurring private sector development
12% Environment
Public Sector 2% A buoyant private sector-both domestic and
Management foreign-is critical for sustained growth and genera-
11% Eccrticaigrothognera
1E4oomic Policy tion of jobs and domestic income The Bank contin-
ued supporting reforms aimed at improving the
Finance and -- environment for business and investment It also
Private Sector
Development - developed new tools to support the development of
i5% trade, such as the seven-country Regional Trade
3% aevelopmentb Facilitation Project (box 4 2). In response to African
32% leaders' requests, the Bank increased its lending for
infrastructure operations (transport, energy, wvater)-
Note Sector classification is on a loan component basis See table 1 1, page 26
a Includes transportation, telecommunications, and water supply and sanitation both to facilitate the development of the private sec-
b Includes $287 2 million in IDA credits to seven countries under the Multi- tor and to improve liNing standards The Bank
Country HIV/AIDS Program for Africa, for which the Bank earmarked $500 million committed to further increase its lending in the
in September 2000
c Includes electric power and other energy, oil and gas, and mining infrastructure sectors in the coming years.
Regional Perspectives 67
Helping empower communities Box 4.1 Rolling Back Malaria
To ensure that development benefits do reach the Malaria is on the rise again, killing over a million people a year
poorest communities, the Bank developed Community worldwide, including an estimated 700,000 children. And the
Action Programs, which reflect the Community- rising numbers of people affected by malaria are overwhelming
Driven Development (CDD) approach that empowers national health services and weakening societies, particularly in
communities by making resources available to them in Sub-Saharan Africa, where 90 percent of the cases occur.
support of effective local development programs The In April 2001 the Bank hosted the Fourth Global
Bank has placed growing emphasis on decentralized Partnership Meeting to Roll Back Malaria (RBM). Participants
CDD mechanisms to help channel resources to rural shared experiences on expanding country-level partnerships to
areas, such as the social funds in Malawi and nutrition implement national programs to reach the RBM goal of halving
programs in Senegal and Madagascar. This effort was the burden of malaria by 2010. They examined the roles of gov-
complemented by a focus on strengthening capacities, ernment, the private sector, and NGOs in working together to
in both the public and private sectors. The Bank has extend malaria programs beyond the public health sector. They
committed up to $150 million to the Partnership for also discussed the challenges faced in mobilizing and effectively
Capacity Building in Africa (PACT) over five years, employing external resources, and the opportunities provided
together with the Harare-based African Capacity through the PRSP and HIPC Initiatives to scale up successful
Building Foundation. In 2000 PACT funded projects malaria programs.
in 29 countries to help develop skills, knowledge, and
management capacity.
Helping countries affected by conflict
Conflict is increasingly becoming a development
issue in Africa. The Bank has strengthened its
capacity to cooperate with specialized partners, Box 4.2 Stimulating Africa's Productivity by Facilitating
including United Nations agencies, bilaterals, and Regional Trade
NGOs, in preventing conflict and supporting post-
conflict recovery. With regard to prevention, the Financing for productive activities in Africa is severely con
Bank has worked with others to try to address some strained by a perception that the region is highly risky. In many
of the root causes that may generate political insta- countries, however, this perception is not justiried by circum-
bility and, eventually, conflict, and in particular stances. The IDA-supported Regional Trade racilitation Project
poverty and inequalities. With regard to recovery, the (RTFP, $110 million) tackles this problem by bringing together
Bank was active in several countries, both through countries that are willing to address the market's perception by
project financing and technical advice. In November settirg up a credible insurance mechanism against losses
2000 the Bank approved a $90 million credit to sup- caused by political risks. T hese ccurtries governments would
port Eritrea's long-term reconstruction and economic be the ultimate risk takers in the Insurance mechanism, creating
recovery, through complementary actions in agricul- a strong disincentive to cause claims. Private insuiers, while not
ture, private sector reconstruction, and social protec- currently able to assume the high political risk in cross-border
tion. The Bank also approved two credits totaling transactions involving African countries, would --with the public
$400.6 million to assist the Ethiopian government sector's assumption of risk-be able to extend artivities in the
with its post-war recovery program. Support region.
included the emergency demobilization and reinte- The RTFP will benefit commerci.l firms Involved In trade, by
gration of 150,000 veterans of the conflict with extending the maturities at which credit is available and creat-
Eritrea, emergency humanitarian needs, and rehabil- ing a more stable business environment. Seven countries will
itation and reconstruction of infrastructure, as well initially benefit (Burundi, Kenya, Mia awl, Rwanda, Tanzania,
as stabilization of the economy and restarting the Uganda, and Zambia); the project could later be extended to all
reform agenda. Other countries in which the Bank African countries.
has been active in post-conflict reconstruction oper-
ations include Burundi, Guinea-Bissau, Rwanda,
and Sierra Leone.
68 The World Bank Annual Report 2001
Table 4.1 World Bank Lending to Borrowers in Africa, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis | [ Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual
average average
Agriculture 315.2 182.5 173.6 362.3 181.4 384.7
Economic policy 527.0 503.2 426.2 540.3 360.1 458.3
Education 233.5 283.2 159.7 74.9 203.7 146.7
Electric power 181.4 190.2 42.9 - 60.3 0.5
and other energy
Environment 53.9 35.9 16.4 22.0 22.6 26.1
Finance 217.3 17.2 60.4 204.4 60.4 198.6
Mining 10.7 10.0 - 18.0 - 18.0
Multisector 38.9 - 93.5 - 43.2
Oil and gas 31.4 8.8 116.6 72.0 116.7 89.0
Health, nutrition, 136.9 199.6 110.0 384.2a 154.0 466.2a
and population
Private sector 193.8 61.3 143.2 462.2 186.6 298.1
development
Public sector 101.8 150.9 312.2 382.2 194.9 365.6
management
Social protection 117.6 113.4 139.4 453.7 143.4 490.5
Telecommunications 14.9 5.4 10.2 - 10.2 11.8
Transportation 294.4 503.2 256.2 99.0 256.2 112.1
Urban development 132.3 105.5 10.8 40.0 91.7 20.0
Water supply 124.6 92.9 87.7 254.4 73.7 283.4
and sanitation
Total 2,725.7 2,463.2b 2,159.1 3,369.6 2,159.1 3,369.6
Of which
IBRD 175.0 31.2 97.6 -
IDA 2,550.6 2,432.0b 2,061.5 3,369.6a,b
Note See table 1 1, page 26 Numbers may not add to totals because of rounding
a Includes $287 2 million in IDA credits to seven countries under the Multi-Country HIV/AIDS Program for Africa, for which
the Bank earmarked funding of $500 million in September 2000
b Excludes IDA HIPC grants of $75 million to Uganda in fiscal 1998, $154 million to Mozambique in fiscal 1999, and $64 million to Cameroon in
fiscal 2001
Regional Perspectives 69
L L "When the orchardists saw their piled fruit turn
--1 _ 4 into cash and their life standard was thus
:1 improved, they were very excited and filled with
. happiness. These kind and honest people did no;
forget the organizations that helped them."
Letter from Mr. Song Yongxiang, a recipient of a small busi-
ness loan funded by the Shanxi Poverty Alleviation Project,
which is improving lives in some of China's poorest areas.
Countries E + A Pacific that build on strategic alliances and partnerships
Eligible for LatL l and a ll
World Bank to encompass global good practices. In fiscal
Borrowing: 2001, $2.1 billion in new lending, covering 30
Cambodia REGIONAL CONTEXT: RECOVERY CONTINUES BUT projects (excluding 3 with special trust fund
China RISKS PERSIST financing), supplemented the Bank's policy
Fiji advice and technical support The strategic thrust
Indonesia
Kiribati East Asia's recovery from financial crisis has been of Bank assistance includes revitalizing the busi-
Korea, remarkable Growth in the region's developing coun- ness sector, supporting public sector perform-
Republic of
Lao People's tries exceeded 7 percent in 2000, and extreme ance, addressing social risks, and preventing
Democratic poverty is down to about 13 in 100 people living on countries from retreating into environmental
Republic less than $1 a day, compared with nearly 30 percent neglect.
Malaysia
Marshall Islands at the start of the decade Much of the progress was Delivering global and regional experience to
Micronesia, driven by China, a pillar of growth during the crisis. countries and applying resources to local needs
Federated
States of Steady recovery in other parts of East Asia has are the driving principles behind the Bank's strat-
Mongolia renewed progress in poverty reduction, which was egy in East Asia Nearly half the Bank's staff in
Myanmar
Palau interrupted during the crisis. 2000 marks the second the region and all its Country Directors are
Papua New consecutive year of growth for East Asia's major located in the field to ensure more effective
Guinea
Philippines economies. Countries are financially stronger than assistance. Indonesia's fiscal 2001 CAS, devel-
Samoa they were four years ago, which will help them man- oped in a highly consultative manner, links
Solomon Islands age the impact of the global contraction this year increased concessional lending to improved gov-
Thailandagth
Tonga Revitalizing the business sector is essential to ernance; and a new transition strategy is guiding
Vanuatu enhance resistance to shocks. Some smaller econo- the Bank's program in East Timor (box 4.3).
mies are lagging, and disparities within larger In Cambodia, the Lao People's Democratic
This section economies are high. Social vulnerability remains wor- Republic, Mongolia, and Vietnam, the Bank is
also reports on
East Timor. risome nearly half the population lives on less than supporting comprehensive, long-term programs-
$2 a day Progress on other social development developed by the countries through the Poverty
goals-which require effective institutions and service Reduction Strategy Paper process-that promote
delivery-has been slower The need for increased broad public participation and are pro-poor
responsiveness of public institutions has thus grown, and pro-growth. A new CAS has been initiated
in step with the emergence of an active civil society, a for China
growmng policy debate, and changes in government. Table 4.2 shows the value and sectoral distri-
Finally, the environment needs renewed attention bution of total Bank lending to the East Asia and
Pacific region in the fiscal 1992-2001 period
WORLD BANK ASSISTANCE: COMPETITIVE Table 8.3 (see About the World Bank) compares
BUSINESSES, EMPOWERED COMMUNITIES, commitments, disbursements, and net transfers to
CLEANER AIR the region for fiscal 1996-2001, and table 8.9 (see
About the World Bank) shows operations approved
The Bank's primary objective is to reduce poverty in fiscal 2001, by country. Figure 4.2 shows IBRD
through Country Assistance Strategies (CASs) and IDA lending by sector.
70 The World Bank Annual Report 2001
East Asia and Pacific Fast Facts
Total population: 1.9 billion
Population growth: 0.9%
Revitalizing East Asian business and restoring Life expectancy at birth: 69 years
investor confidence Infant mortality per 1,000 births: 35
Female youth illiteracy: 4%
The Bank is helping to improve the institutional and 2000 GNI per capita: $1 060
policy environment for private investment through Number of persons living with HIV/AIDS: 0.6 million
support for corporate restructuring, governance, and
competitiveness. In Indonesia, it has worked closely Note: Life expectancy at birth and infont mortality rate per 1,000 births are for 1999, other
indicators are for 2000, from the World Development Indicators database. The term gross
with the IMF and the Asian Development Bank nationalincome (GNI) is now used instead ofgross national product (GNP).
(ADB) in bank and corporate restructuring, and led
support to state banks. In Thailand, the Country Total FY01 New Commitments Total FY01 Disbursements
Development Partnership for Competitiveness IBRD $1,136.1 million IBRD $2,683.3 million
(CDPC)-nonlending support to take forward coun- IDA $997.7 million IDA $646.8 million
try dialogue in the absence of adjustment lending-is
helping implement policies and financial and corpo- No S @3 . . 9Am s
rate reforms. In Vietnam, a new Poverty Reduction
Support Credit is supporting a comprehensive set of
structural reforms to promote increased private
investment and to strengthen transparency and i
accountability in state enterprises, banks, and public
finance-essential for broadly shared growth.
To promote regional competitiveness, the Bank is
investing in information infrastructure, technology
innovation, and skills development. Thailand's CDPC
is addressing key constraints in these areas, comple- ,c
mented by technical assistance from partners. The - _ .'
Bank-managed Vietnam Development Information L
Center is a multidonor-funded cutting-edge facility
that offers distance learning and public access to
global knowledge; the operation is one of four Global
Development Learning Network centers established
by the Bank in Asia. Through knowledge and country
developnment partnerships established with countries
such as the Republic of Korea and Thailand, the _
Bank is facilitating access to global development _
knowledge to reduce vulnerability and strengthen ^
competitiveness (box 4.4). Work has also advanced
with the Organisation for Economic Co-operation and -, . , ;- t,,_
Development (OECD) to assess China's knowledge l'
economy and requirements for technological innova- | . -
tion. The Third Asia Development Forum for regional .
policymakers and others, organized jointly with ADB, - _
the Economic and Social Commission for Asia and -
the Pacific, and other partners, also aimed at prepar-
ing for the future economy. ;-'-
Improving public services and governance
In China, lending for projects with a strong environmental focus has
With rising public debt squeezing public spending, been the fastest growing part of the Bank's portfolio.
civil society in many East Asian countries is
demanding more efficient and accountable govern-
Regional Perspectives 71
Box 4.3 East Timor: Where Is It Now? ment, improved social and infrastructure services,
and better environmental safeguarding. Bank assis-
In September 1999, East Timor was devastated by violence after tance thus continues to emphasize public sector
the East Timorese voted overwhelmingly to break from Indonesia. transparency and accountability, and greater stake-
Leading the coordination of the international community's holder participation in project design and implemen-
reconstruction efforts, the Bank has, over the last i8 months, tation. Initiatives in Indonesia include anticorruption
administered the Trust Fund for East Timor. The fund received and civil service reforms. The Indonesian-led Partner-
pledges of up to $166 million for basic reconstruction and ship for Governance Reform-a joint initiative with
development works in nearly all sectors. the United Nations Development Programme-
Progress has been remarkable. Within six months, grant facilitates a national dialogue on governance and is
agreements for projects and programs in all sectors were funding innovative reform proposals from civil soci-
signed. By December 2000 economic activity was recovering; ety and government agencies
projects supporting agriculture, community recovery, health, Bank operations are adopting demand-oriented
education, sanitation, and infrastructure were under way; a and private sector approaches to service delivery,
United Nations (U.N.) agency had set up power-sharing particularly in infrastructure activities and with
arrangements with the East Timorese; and a schedule for elec- emphasis on cost recovery. Decentralized public
tions was agreed on. The Bank has developed a Transition sector decisionmaking and accountability are also
Support Strategy to help East Timor as it moves toward post- priorities. Indonesia's Provincial Health Project is
U.N. independence. The challenges ahead are enormous- delivering services to the poor in the provinces of
but within reach, if the success of the last two years provides Banten, North Sumatera, and West Java in an
any indication. increasingly decentralized environment The
Philippines' Local Government Finance and
Development Project is making cities more livable
by expanding and upgrading basic infrastructure,
services, and facilities, as well as the capacity of
Box 4.4 Innovating with Knowledge and Country participating local governments In China, the
Development Partnerships: The Republic of Korea and Economic Law Reform Project is financing technical
Thaltand assistance for preparing economic laws, while the
Accounting Reform Project is helping government
Through partnerships established with countries such as Korea auditors curb waste and other misuse of resources,
and Thailand, the Bank is facilitating access to global develop- and strengthen public sector financial management.
ment knowledge to reduce vulnerability and strengthen compet- In Thailand, Bank-funded surveys to gauge house-
itiveness. These have emerged as the central development hold, private sector, and public sector perceptions of
concerns in middle-income countries following the crisis. corruption have raised national awareness of, and
The knowledge partnership with the Korean government is debate on, the problem.
contributing to Korea's efforts to become a more competitive,
knowledge-based economy and to transfer Korean development Reducing vulnerability and ensuring that poor
experience to other countries. In June 2001 the Bank, jointly R e bene r owth
with the Korean Development Institute, organized a workshop
on business innovation systems, providing insights that can be Bank strategy has evolved from supporting safety nets
applied to other developing countries. and crisis assessment to strengthening policies and
In Thailand, the Bank is assisting the government via coun- institutions that help households manage social risks,
try development partnerships centered on technical assistance build social policy frameworks, and enable the poor
and capacity-building needs, private sector and civil society to participate in the benefits of growth. Social pro-
involvement, and grant resource mobilization. The partnership grams in low- as well as middle-income countries
on competitiveness focuses on completing the reform agenda have increasingly emphasized community empower-
and implementing the forward-looking agenda-deepening ment and demand-driven approaches. In Cambodia
skills, strengthening innovation capabilities, and improving the Social Fund II Project is financing community-
logistics. based subprojects for infrastructure, creating employ-
ment opportunities, and strengthening communities
and local governments. Indonesia's Kecamatan
72 The World Bank Annual Report 2001
NN
'-I~~~~~~A
4A
-. It --I- 1. - -
World Bank officials visit a school in Jakarta whose students received work with the Bangkok authorities to tackle motor-
scholarships from the National Scholarships and Grants Program, a e cycle polto;a multidonor report on China's envi-
donor-supported program that helped poor families and schools facepluin
the impact of the 1997-98 financial crisis ronment and a report analyzing options for natural
resource management in Indonesia; and support for
projects in China with a strong environmental focus,
Development Project is helping 10,000 subdistricts which have been the fastest-growing part of the
nationwide fund small-scale infrastructure projects or Bank's loan portfolio for that country ($1 2 billion
income-generating activities; the project is strength- approved in fiscal 2000-01). For example, the
ening local capacity, empowering village councils, Sichuan Urban Environment Project is bringing
and improving community participation, cleaner water and a healthier environment to six mil-
The Bank has also been supporting areas of lion low-income people in Sichuan while helping
extreme poverty Mongolia's rural transport project is protect and restore the Grand Buddha of Leshan, a
improving poor communities' access to health and World Cultural Heritage site.
education services and facilitating private enterprise
and trade. In Vietnam, small-scale infrastructure and Figure 4.2 East Asia and Paciflc: IBRD and IDA Lending
livelihood projects are being planned to tackle by Sector, Fiscal 2001
poverty in some of the country's poorest areas Share of total of $2.1 billion
through participatory, decentralized, and targeted Urban Agriculture and
approaches. China's Tri-Provincial Highway Project Development Environment
X~~~~ ~ ~ ~~~~~~~ ,,X 16%
is helping develop transport in three western 9% 1n%
Economic
provinces while improving road access to poor coun- Polioy
ties to reduce income inequalities. 3%
Infrastructure"
Improving the environment 35t -
With urbanization now embracing half the popula- Human
Development
ion in the region's major countries, urban air and Public Sector brn27%
water pollution is an extremely serious problem. Management Finance and Otherb
Together with he Fo Motor Company, ADB, and 1 % Private Sector 1 %
with the Ford ~~~~~~~~~~~Development
the governments of Japan and the Netherlands, the 8%
Bank has launched the Clean Air Initiative for Cities
Note Sector classification is on a loan component basis See table I 1, page 26
of East Asia as a platform for knowledge sharing a Includes transporation, telecommunications, and water supply and sanitation
among Asian cities. Assistance to countries includes b Includes electric power and other energy
Regional Perspectives 73
Table 4.2 World Bank Lending to Borrowers In East Asia and Pacific, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual
average average
Agriculture 958.4 1,035.3 353.8 193.5 412.8 154.9
Economic policy 97.8 1,831.0 30.0 250.0 40.0 57.5
Education 495.7 330.4 5.0 7.6 7.0 16.6
Electric power 1,292.0 473.4 470.0 30.0 470.0 30.0
and other energy
Environment 279.1 259.7 382.7 4.8 590.3 197.0
Finance 94.9 3,105.2 32.0 8.0 32.0 88.0
Mining 5.8 - 10.0 - 10.0 -
Multisector 10.5 - - 35.0 -
Oil and gas 139.3 - 7.0 - 7.0
Health, nutrition, 206.2 125.6 119.4 108.2 82.7 108.2
and population
Private sector 22.5 99.3 - - - 85.0
development
Public sector 74.6 367.5 490.0 - 470.0 12.5
management
Social protection 52.9 650.0 100.0 378.4 105.0 443.4
Telecommunications 180.7 67.3 - - - -
Transportation 1,147.8 1,105.6 629.2 729.0 577.3 746.1
Urban development 320.1 116.7 - 389.3 - 194.6
Water supply 126.8 127.2 350.0 - 175.0
and sanitation
Total 5,505.1 9,694.2 2,979.1 2,133.8a 2,979.1 2,133.8a
Of which
IBRD 4,389.1 8,800.9 2,495.3 1,136.1
IDA 1,116.0 893.3 483.8 997.7
Note See table 1 1, page 26 Numbers may not add to totals because of rounding
a Does not include special financing of $21 6 million provided by the Trust Fund for East Timor
74 The World Bank Annual Report 2001
"We are happy that the World Bank
has come to talk directly to us. We
know what we need and we know how
to solve our problems better than any-
one else. Come back again and keep
talking to us."
Local farmer speaking during Country Assistance
Strategy consultations in Kohat district, Pakistan
I South Asia's poverty continues to present a Countries
South Asia profound development challenge Half a billion Eligible for
World Bank
people live on less than $1 a day, accounting for 44 Borrowing:
REGIONAL CONTEXT: GROWING STEADILY, percent of the world's poor. The illiteracy rate is the Afghanistan
BUT BELOW POTENTIAL world's highest, and women have only about half as Bangladesh
many years of education as men. Lack of access to Bhutan
India
At 5 8 percent, growth in South Asia in 2000 contin- health care, the continuing acceleration of HIV Maldives
ued to be robust and sustained compared to the infection, and environmental degradation are only a Nepal
I ~~~Pakistan
rest of the world. Long-term growth continues to be few of the problems that threaten the region's pros- Sri Lanka
well below potential, however, and the 2000 out- perity and undermine the quality of life for all, espe-
come was also affected by drought that undermined cially poor people
agricultural output in some parts of the region.
India's GDP growth led the region at 6 percent, WORLD BANK ASSISTANCE: STRENGTHENING
while Bangladesh's remained steady, at 5.2 percent PROSPECTS FOR LASTING DEVELOPMENT
Strength in manufacturing and exports raised
Paklstan's growth slightly, to 3.8 percent. The Bank's central goal in South Asia is reduction
The stability of South Asia's growth is impres- of poverty and vulnerability, which it pursues by
sive, given recurrent natural disasters and continuing promoting country and community ownership of
political instability in some areas Drought struck development efforts; responding quickly to crises;
northern India, Afghanistan, and Pakistan, a massive supporting increased investment in human devel-
earthquake killed thousands in India. Other more opment, especially for marginalized groups; and
chronic obstacles to growth were poor governance, encouraging private sector-led and equitably
civil conflict, and insufficient economic reforms. shared economic growth.
The pace of India's economic reforms has been Table 4.3 shows the value and sectoral distribu-
slowed by political challenges at the state level. tion of total Bank lending to the South Asia region in
Pakistan continues to face pervasive, inherited gover- the fiscal 1992-2001 period Table 8.4 (see About the
nance problems and economic distortions, con- World Bank) compares commitments, disbursements,
fronting them effectively will be crucial to the and net transfers to the region for fiscal 1996-2001,
success of its Economic Revival Program introduced and table 8 10 (see About the World Bank) shows
in 2000 In Bangladesh, a sharply polarized political operations approved in fiscal 2001, by country. Figure
environment prior to 2001 elections slowed imple- 4.3 shows IBRD and IDA lending by sector.
mentation of second-generation reforms necessary to
accelerate growth and reduce poverty. Over the year, Promoting ownership and empowering communities
political instability continued in Nepal, and in June
2001 the country suffered the tragedy of the royal In fiscal 2001 the Bank consulted extensively with
assassinations, Sri Lanka saw a combination of a local communities, civil society, and government offi-
deepening of its 18-year conflict, a fragile ceasefire, cials in preparing its Country Assistance Strategies
and political volatility, and intense fighting contin- (CASs) for India, Bangladesh, Sri Lanka, and
ued in Afghanistan. Pakistan (box 4.5). It also engaged in civil society
Regional Perspectives 75
South Asia Fast Facts
Total population: 1.4 billion
Population growth: 1.9%
Life expectancy at birth: 63 years BOx 4.5 Deepening the Devetopment Dialogue In Pakistan
Infant mortality per 1,000 births: 74
Female youth illiteracy: 40% In preparing a new CAS, the Bank's Pakistan team conducted con-
2000 GNI per capita: $460 sultations from the village to the national level, talking to farmers,
Number of persons living with HIV/AIDS: 5.8 million women's groups, NGOs, trade unions, academia, media, govern-
Note- Life expectancy at birth and Infant mortality rate per 1,000 births are for 1999, other ment officials, and politicians. The team heard voices of deep con-
indiators ore for2000 from the World Development Indicators databose The term gross cern about widespread corruption, and despair about the lack of
national income (GNI) Is now used instead of gross notional product (GNP). economic opportunities, fair access to justice, education, and
health services. But it also heard creative ideas from people with a
Total FY01 New Commitments Total FY01 Disbursements great desire to make a difference in their own lives.
IBRD $2,035.0 million IBRO $756.0 million The CAS consultations helped the Bank identify local develop-
IDA $1,211.5 million IDA $1,935.3 million ment needs and priorities as determined by the citizens them-
selves. It is hoped that the opening of this dialogue will lead to a
Portfolio of projects under implementation as of June 30, 2001: more inclusive development process in Pakistan.
consultations and interactive workshops that allowed
A8 the Bank to bring its global development experience
to client countries while seeking local perspectives
on development priorities.
' ', r i vbt < In India, over 300 politicians, civil servants, and
I, + s- r nongovernmental organizations (NGOs) met at a
r -. _ X F workshop on state-level reforms in December
X ; ^ r t ;-- 2000-sponsored by the Bank, other donors, and
6-' kt[ o ; E . - -- -- f . the Ministry of Finance-to exchange ideas with
�- t- t s f ~~~~~~~~ =; _ ~~~global fiscal and governance experts, while a
glba fc an g e whilnumber of large workshops at the federal level
also helped to examine fiscal, privatization, and
business-climate issues
Support for sector-level dialogue included a work-
shop in Pakistan on the sustainable provision of
xwater and sewerage services in Karachi, and a
series of consultations to help national and provin-
cial authonties and other stakeholders better
1 19- X . i v]-~ '- understand the needs and concerns of road users.
Two journalism workshops aimed at strengthening
r i I tS h S\ - i ,. . q the media were sponsored by the World Bank
- IX * Institute- one on economic reporting and one,
offered with support from the Commonwealth
1~1EIIIIELL _________ Press Union, on corruption and journalism ethics.
The Bank is helping increase local ownership of
development efforts by empowering communities to
Girls raise their hands to indicate that they are in school, during World design and implement projects. For example, India's
8ank consultations in rural Pakistan The consultations were among District Poverty Initiatives projects (in Andhra
several held with numerous stakeholders to inform the Bank's Country
Assistance Strategy for Pakistan Pradesh, Madhya Pradesh, and Rajasthan) and Rural
Water Supply and Environmental Sanitation Project
closely involve rural communities in efforts to
increase their access to resources and improved serv-
76 The World Bank Annual Report 2001
ices. Sri Lanka's pilot Village Self-Help Learning access to global development knowledge. In
Initiative, meanwhile, includes a Village Community Pakistan, Bank participation in policy dialogue has
Telecenter that relies on information technology helped the government prepare a national educa-
and communications to help reduce poverty in tion sector strategy.
remote villages. The project is funded by a Japanese In fiscal 2001 the Bank continued its strong
Social Development Fund Grant administered by support for the region's health programs-which are
the Bank. showing results A second project to deepen
HIV/AIDS prevention efforts is under way in India,
Working together to respond to crises the first helped to launch a national control pro-
gram, increase blood safety from 30 percent to
Bank assistance in fiscal 2001 helped address nearly 100 percent, significantly reduce risky behav-
needs arising from natural disaster- and conflict- ior, and raise condom use in high-risk groups.
related crises, recognizing their devastating Another follow-up project in India, this one
impact on poor people. Response to India's earth- approved in fiscal 2001 to fight leprosy, will help
quake was quick, collaborative, and multidimen- move India toward elimination of this disease; under
sional (box 4.6). In drought- and conflict-ridden the first project, 4.4 million patients received treat-
Afghanistan, the Bank is helping the efforts of the ment, and registered leprosy cases fell from over I
United Nations and other agencies to alleviate million in 1993 to 500,000 in 2000. In fiscal 2001
famine and malnutrition among an estimated 12 the Bank also approved an HIV/AIDS Prevention
million Afghanis (including those in refugee cen- Project in Bangladesh, targeting high-risk groups
ters in neighboring Pakistan). In addition, the Bank is helping combat tuber-
In Sri Lanka, the Bank-financed North-East culosis (TB) in South Asia, which has 3 of the 10
Irrigated Agricultural Lands Project continues to countries with the world's highest TB incidence In
make progress amid the challenges of conflict. The India the Bank supports a revised national TB con-
project aims to re-establish at least a subsistence trol program, which treated 1.1 million patients in
level of production and basic community services 1999 and rising in 2000 under DOTS (Directly
through agricultural and small-scale reconstruction Observed Treatment, Short-course-a cost-effective
activities. Partners include the government of Sri strategy that reduces illness, deaths, and transmis-
Lanka, the focal communities, local NGOs, the
United Nations High Commission for Refugees,
and the International Committee of the Red Cross. Figure 4.3 South Asia: IBRD and IDA Lending by
Both parties to the conflict have been appreciative Sector, Fiscal 2001
of this work to assist some half a million people n Share of total of $3.2 billion
the conflict zone. Agriculture and
Environment
9% Economic Policy
_ 1%
Investing in people
Human
The Bank's support to South Asia recognizes the Infrastructurea" Development
centrality of education and health in poverty reduc- 41% 11%
tion. A new project in Bangladesh will strengthen
literacy programs and help the newly literate utilize . Otherb
their skills, benefiting some 1 6 million of the 23%
country's poorest people, half of them women. Also
in Bangladesh, a new Legal and Judicial Capacity Public Sector
Management Finance and
Building Project will help improve access to jus- 8% Private Sector
tice, especially for the poor and women (see page Development
7%
62). A distance-learning project-the first of its
kind in South Asia-offers videoconference and Note Sector classification is on a loan component basis See table 1 1, page 26
a Includes transportation, telecommunications, and water supply and sanitation
Internet-based training opportunities to political b Includes electric power and other energy
and business leaders in Sri Lanka, expanding their
Regional Perspectives 77
7
~ - t. - N -lb^
L .. ' t ./7 $4
A woman shares the story of her loss with World Bank team mem-
bers following the devastating earthquake In Gujarat sion). The Bank is also supporting efforts to expand
DOTS in Pakistan and Bangladesh.
Box 4.6 Disaster Response: Multidimensional
Assistance, Partnership, and Participation Promoting private sector growth
A dynamic private sector is crucial for growth-and
On January 26, 2001, a severe earthquake hit India's Gujarat thus central to the Bank's country programs. India's
state, leaving over 20,000 people dead, nearly a million Rajasthan Power Sector Restructuring Project,
families homeless, social infrastructure destroyed, and a approved in fiscal 2001, continues the Banks
government suddenly faced with an immense challenge. support for private provision of infrastructure in the
The Bank quickly made $400 million available for emergency region It will help advance the privatization of dis-
rehabilitation and partnered with counterparts from the Asian tribution firms and promote small-scale power gen-
Development Bank to prepare a comprehensive damage eration as well as renewable energy production for
assessment (http://www.worldbank.org/gujarat e ) remote locales The Pakistan Trade and Transport
crucial to shaping a recovery plan and guiding cooperation Facilitation Project, also approved in fiscal 2001,
among all parties. will help the country modernize and reform its trans-
Reconstruction needs are estimated at a staggering $2.3 port sector. Lower transport costs will help
billion. The Bank's emergency assistance of $400 million pro- Pakistan's industries become more competitive in
vides short-term financing for temporary shelter, rubble international markets.
removal, health and education services, rehabilitation of In fiscal 2001 the IFC, the Bank Group's pri-
basic infrastructure, community capacity building, and estab- vate investment-promotion arm, continued to com-
lishment of disaster management capabilities. A longer-term plement Bank assistance for the region's private
reconstruction credit is under preparation. In close consulta- sector development IFC is helping South Asia
tion with Indian authorities, the Bank is urging the active par- accelerate private participation in the provision of
ticipation of affected communities in all reconstruction infrastructure, tourism, health, and education serv-
efforts. ices, and is providing support for countries' financial
sectors and capital markets
78 The World Bank Annual Report 2001
Table 4.3 World Bank Lending to Borrowers in South Asia, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual original
average average
Agriculture 405.1 610.9 271.5 231.8 61.0 297.3
Economic policy 138.4 275.0 45.0 350.0 45.0 15.0
Education 271.4 408.2 200.0 192.6 200.0 269.6
Electric power 507.1 252.5 280.0 630.0 280.0 745.5
and other energy
Environment 94.9 91.8 - 5.0 7.8 7.4
Finance 185.9 184.5 65.1 181.3 65.1 163.3
Mining 12.5 266.0 - - - -
Multisector 41.7 271.6
Oil and gas 50.1 - - - -
Health, nutrition, 357.8 475.7 344.6 70.0 344.6 70.0
and population
Private sector 107.9 16.0 - - - 51.0
development
Public sector 79.8 - 251.3 182.6 251.3 259.1
management
Social protection 86.6 - - - 231.5 33.0
Telecommunications 15.0 - 62.0 - 62.0
Transportation 244.8 292.4 582.1 1,333.0 556.3 1,332.9
Urban development 51.1 52.5 10.8 4.7 7.8 2.4
Water supply 139.0 16.2 - 65.5 -
and sanitation
Total 2,789.1 3,213.3 2,112.4 3,246.5 2,112.4 3,246.5
Of which
IBRD 1,056.7 1,034.0 934.3 2,035.0
IDA 1,732.4 2,179.3 1,178.1 1,211.5
Note See table 1 1, page 26 Numbers may not add to totals because of rounding
Regional Perspectives 79
"In Poland I turned to the World Bank with
which we had already established a good working
relationship through the transition years. Because
it is independent, the Bank can help give a
credible start to anticorruption initiatives. It
helped us with the analytical work and advised
us on the polcy and technical reforms that can
help to minimize corruption."
Leszek Balcerowicz, op-ed in Segodnya (Russian Federation
newspaper). September 2000.
Countries r Eur d Central Asia In Turkey, the macroeconomic stabilization program
Eligible for Ope an suffered a major setback in February 2001, and out-
World Bank
Borrowing: put is expected to decline this year The currency
Albania REGIONAL CONTEXT: GROWING ECONOMIES depreciated sharply and major losses occurred in the
Armenia NEED FOR STRONGER BUSINESS CLIMATE banking sector. A comprehensive structural reform
Azerbaijan of the pubhc and financial sectors accelerated in the
Belarus The year 2000 marks the first year in the past spring, alongside implementation of agricultural
Herzegovina decade when all transition countries experienced reform.
Bulgaria
Croatia positive growth Growth in Central Europe and the
Czech Republic Baltics averaged 4 percent, the highest during the
Estonia last five years. The Baltic countries, Croatia, the WORLD BANK ASSISTANCE: CREATING JOBS,
Georgia PROTECTING THE VULNERABLE, FIGHTING
Hungary Czech Republic, and Romania started to grow again CORRUPTION
Kazakhstan after having stabilized their economies in the previ-
Kyrgyz Republic
Latvia ous year. Overall, growth in the Commonwealth of Poverty has increased substantially in the Europe
Lithuania Independent States (CIS) countries reached a and Central Asia (ECA) region over the last decade,
Macedonia, record high of 7.4 percent, led by the Russian resulting from the deep economic recessions initi-
former
Yugoslav Federation's strong economic recovery fueled by ated by the transition process Helping countries
Republic of higher energy prices and the post-1998 currency to move to a sustainable growth path-and to
Poland depreciation. ensure that growth translates into jobs and improved
Romania Barring a sharp decline in growth in Western living standards-continues to be a major compo-
Russian
Federation Europe, economic growth is expected to remain nent of the Bank's poverty reduction strategv, with
Slovak Republic strong in most of the region into 2001. Many of the efforts to help improve the business climate A
Slovenia
Tajikistan new administrations in Central Europe and the second component is support for realigning public
Turkey Baltics are accelerating reforms, and the European expenditures to protect extensive achievements in
Turkmenistan Union (EU) accession process has become an education and health, and improving the targeting of
Ukraine
Uzbekistan important catalyst. Continued growth in the Russian social protection programs toward the most vulnera-
Yugoslavia, Federation and Ukraine will depend crucially on ble. Improving governance and institutional
Federal
Republic improving the environment for business and private structures to serve the broader public interest, with
of investment. Such improvement could not only raise a strong focus on anticorruption and community-
This section also the present low levels of domestic and foreign direct driven development, marks a third component of the
reports on investment but also spur growth of new small- and Bank's strategy. This strategy incorporates lessons
Kosovo. medium-size firms-a major factor in the growth of learned from the past decade of transition experi-
the Baltics and Central Europe ence (see http://wwwworldbank.org/eca/
Major developments have occurred in Turkey publications e')
and the Federal Republic of Yugoslavia In late 2000, The Bank continues to play a key role in sup-
the new administration of the Federal Republic of porting peace and economic recovery in South East
Yugoslavia embarked upon a reform program to facil- Europe. With other partners, it has helped the new
itate the transition to a market economy, and re- government of the Federal Republic of Yugoslavia
established links with the international community prepare an Economic Recovery and Transition
80 The World Bank Annual Report 2001
Europe and Central Asia Fast Facts
Total population: 0.5 billion
Population growth: 0.1%
Program, and cosponsored a donor conference to Life expectancy at birth: 69 years
raise funds for this Program. The Federal Republic Infant mortality per 1,000 births: 21
of Yugoslavia became a member of the World Bank Female youth illiteracy: 2%
in May, after agreement was reached on a plan to 2000 GNI per capita: $2,010
resolve its arrears to the IBRD The Bank prepared Number of persons living with HIV/AIDS: 0.7 million
a Transitional Support Strategy, and start-up activi- Note: Life expectancy at birth and Infant mortatityrate per 1,000 births are for 1999, atherindl-
ties are being financed by a $30 million trust fund cotOrsarefor2000,fromtheWorldDevelopmentIndicatorsdatabase Thetermgrossnational
The Bank is also helping Kosovo rebuild its econ- Income (GNI)isnowusedinsteadafgrossnationalproduct(GNP).
omy and is continuing its support for regional initia-
tives in South East Europe, including the Trade and Total FY01 New Commitments T F b ts -
Transport Facilitation Program. Under this program, IBRD $2,154.1 million E@= $'2l3i.n-+
Bank-financed projects in six South East European IDA $539.0 million IiA $342.01;iltio w
countries will help reduce nontariff transport costs
and reduce smuggling and corruption at border Portfolio of projects under implementation as.of June 30, 2001:
crossings by supporting reforms and financing criti- $15.8 billion
cal infrastructure and equipment needs.
The Bank moved rapidly to support the new
economic program of Turkey by preparing a series
of adjustment loans to accelerate structural reform
and mitigate social risks. A loan supporting the ini-
tial phase of financial sector reforms was approved ..41
in December 2000.
Table 4 4 shows the value and sectoral distri-
bution of total Bank lending to the Europe and
Central Asia region in the fiscal 1992-2001 period.
Table 8.5 (see About the World Bank) compares
commitments, disbursements, and net transfers to
the region for fiscal 1996-200 1, and table 8 11
(see About the World Bank) shows operations -4
approved in fiscal 2001, by country. Figure 4.4
shows IBRD and IDA lending by sector. S
Launching the Poverty Reduction Strategy
process Water user associations are one of many civil society groups In
Armenia helping the World Bank to formulate its Country
The Poverty Reduction Strategy process was Assistance Strategy
launched in all nine IDA countries in the ECA
region during fiscal 2000. Albania presented its
Interim Poverty Reduction Strategy Paper (I-PRSP)
to the Bank and the IMF Boards in fiscal 2000;
Armenia, Georgia, the former Yugoslav Republic of NGOs from Europe and Central Asia-is providing
Macedonia, Moldova, and Tajilkstan presented their feedback on the process.
I-PRSPs in fiscal 2001; and Azerbaijan, Bosnia and The external debt situation of some of the
Herzegovina, and the Kyrgyz Republic are expected region's poorest countries is of growing concern In
to present theirs in early fiscal 2002. Extensive con- fiscal 2001 the Bank and the IMF produced a joint
sultations are under way in Albania and the Kyrgyz paper analyzing the magnitude and severity of the
Republic and will take place in other countries as problem across IDA-only CIS countries. Additional
they prepare full-fledged PRSPs The newly estab- work is under way to identify country-specific
lished ECA Nongovernmental Organization (NGO) options for ensuring that debt servicing does not
Working Group-an external advisory group of crowd out poverty-oriented public spending
Regional Perspectives 81
Box 4.7 Promoting Community-Based Services for
Vulnerable Children
Improving the business climate Today nearly a million children live "lives of quiet desperation" in
Growth and job creation have been much stronger institutions across the region, according to a report of the loint
in countries experiencing rapid growth of new small United Nations Children's Fund-World Bank project "Changing
and medium enterprises (SMEs). Improving the Minds, Policies and Lives." The project aims to promote systemic
business climate, especially for SMEs, has become a change in the region from reliance on state institutions to strength-
key focus of adjustment operations. The Armenia ened family and community-based services for vulnerable children.
Fourth Structural Adjustment Credit, for example, Over the past three years the Bank has supported efforts in
aims to improve the business climate by rationalizing Armenia, Bulgaria, Lithuania, Moldova, and Romania to establish
the system of business inspections, streamlining viable alternatives to institutionalization.
business registration and licensing procedures, and Romania has pioneered community-based alternatives to insti-
reforming the tax and customs administration as tutionalization with the help of a $5 million Learning and Innovation
well as the public procurement system, to create a Loan as part of a larger $29 miilion program supported also by the
level playing field, especially for new businesses. EU, U.S. Agency for International Development, Council of Europe
Armenia, the Russian Federation, and Ukraine are Development Bank, and some international NGOs. This support has
initiating a series of regular business surveys to mon- enabled the government to close down large institutions, prevent
itor progress on efforts to reduce public interference abandonment, and move children to family-friendly environments.
in business activity Bulgaria's Child Welfare Reform Project follows a similar approach,
benefiting 40,000 institutionalized children. Partnering with police,
who are usually the first to come into contact with problematic
Ensuring essential social services family situations, marks an innovative feature of the project.
The Bank continues to help countries reform their Preventive actions include working with disadvantaged ethnic
safety nets to ensure greater financial sustainability communities (such as the Roma who account for the malority of
and better targeting For example, a new IDA credit institutionalized children) to improve basic preschool education
to Bosnia and Herzegovina supports pension reform, and day care.
while an IBRD loan will help Turkey finance sever-
ance payments and labor redeployment services as
the economy restructures. Loans to Azerbaijan,
Bulgaria, Georgia, and Moldova are helping govern-
ments undertake major restructuring in their health
and education sectors, to improve service and reduce cial reform, and building public oversight, trans-
informal payments that households are forced to parency, and accountability in the use of public
make The Moldova project will help the government resources. In the past year the Bank has assisted
develop tuberculosis (TB) and HIV/AIDS strategies Bosnia and Herzegovina, Kazakhstan, the Kyrgyz
The Bank is also preparing operations to help Republic, Romania, and the Russian Federation in
Belarus, the Russian Federation, and Ukraine fight carrying out corruption surveys, which provide the
these diseases In FYR Macedonia, a Learning and basis for devising country-specific anticorruption
Innovation Credit will test community-based strategies. Support to Ukraine has helped the govern-
approaches to support youth at risk, while in Bulgaria ment take steps to eliminate nontransparent netting
a Bank-financed project addresses the problems of operations between government entities, streamline
children at risk (see box 4.7) licensing procedures, and reduce the number of
inspections, while promoting the adoption of
improved accounting standards and disclosure proce-
imnrolvieng gvracan inesn com it dures, as well as civil society involvement, in the
involvement'X
budget process. Projects under development in FYR
The Bank is supporting a multipronged strategy for Macedonia and Latvia aim to improve the credibility
combating corruption, combining economic policy of public expenditure policies and accountability to
reform, public administration reform; legal and judi- citizens, while support for institutional reform in
82 The World Bank Annual Report 2001
N ~~~~~~~J
r* N ; ' -; .- ;-
t wS t- <- * wfi
Fund, with support from the Bank
Croatia attacks corruption by introducing transparent Figure 4.4 Europe and Central Asia:113RDand ID
working procedures in commercial courts and increas- Lending by Sector, Fiscat 2001
ing the accountability of judges and other officials Share of total of $2.7 billion
Also to reduce poverty, the Bank is scaling up
Urban
efforts to help develop effective community organi- Development Agriculture and
zations and provide them wvith resources to address 3% Environment
lnifrastructurea 13%
their own development priorities. Project experi- 16% Economic Policy
ence-for example, with the Moldova and Romania 2%
Social Investment Fund Projects-shows that com- PubliceSeto
munity organizations are often in the best position to 2% Human
Development
manage local public initiatives Projects approved 22%
this fiscal year with Community-Driven
Development components will help Albania,
Finance and
Bulgaria, FYR Macedonia, and Turkey. Private Sector Other6
Development 8%
34%
Note Sector classification is on a loan component basis See table 1 1, page 26
a includes transportation, telecommunications, and water supply and sanitation
b includes multisector, electric power and other energy, and oil and gas
Regional Perspectives 83
Table 4.4 World Bank Lending to Borrowers in Europe and Central Asia, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual
average average
Agriculture 393.1 183.5 160.6 234.5 130.6 243.3
Economic policy 1,002.2 1,452.3 764.6 183.5 635.0 57.9
Education 40.4 316.8 22.6 90.3 22.6 94.8
Electric power 299.3 295.5 196.5 164.4 177.4 165.9
and other energy
Environment 27.2 60.4 62.4 32.2 151.8 93.5
Finance 281.7 372.0 359.0 853.5 309.0 817.3
Mining 140 1 550.0 44.5 - 10.0 -
Multisector 4.0 25.0 252.5 5.0 222.5 5.0
Oil and gas 278.9 5.0 - 9.6 - 54.0
Health, nutrition, 172.9 60.8 168.4 30.0 168.4 34.5
and population
Private sector 232.8 326.3 - 19.8 - 84.1
development
Public sector 109.7 329.0 87.9 66.4 47.5 61.0
management
Social protection 203.8 308.6 35.0 439.0 295.0 468.1
Telecommunications 30.5 15.0 - - - 7.5
Transportation 416.5 495.7 207.5 303.8 207.5 306.3
Urban development 162.4 373.8 507.0 85.0 507.0 85.0
Water supply 120.2 85.5 173.6 176.1 157.8 114.9
and sanitation
Total 3,915.7 5,255.2 3,042.1 2,693.1a 3,042.1 2,693.1a
Of which
IBRD 3,606.7 4,406.3 2,733.0 2,154.1
IDA 309.0 848.9 309.1 539.0
Note See table 1 1, page 26 Numbers may not add to totals because of rounding
a Does not include special financing of $35.1 million provided by the Trust Fund for Kosovo, and $12 million provided by the Trust
Fund for the Federal Republic of Yugoslavia.
84 The World Bank Annual Report 2001
"Perhaps one of the most important
A_ aspects of our partnership with the
project cofinanced by the government and
the World Bank is the integration of drug
users into public health interventions.
The financing shows the Bank's recognm-
tion of the importance of the work we do
with drug users, and not just for them."
Domiciano Siquiera of ABORDA, an NGO working
with HIV-infected drug users in Sao Paulo, Brazil.
investment dropped from a historic high of $90 bil- Countries
lion in 1999 to a still significant $76 billion in 2000 World Bank
the Caribbean Despite economic growth, about a third of the Borrowing:
region's population still lives on less than $2 a day, Antigua and
and deep inequalities persist in most countries Barbuda
REGIONAL CONTEXT: IMPROVING Expanding poor people's access to health, educa- Belize
MACROECONOMIC INDICATORS, BUT tion, and water services remains a priority, particu- Bolivia
larly for countries hit by severe natural disasters Brazil
INEQUALITIES PERSIST Chile
In addition, a continentwide trend toward decen- Colombia
In 2000 most Latin American and Caribbean (LAC) tralization of powers and responsibilities is creating Costa Rica
economies were on the path of recovery after the an urgent need for the region's state, provincial, Dominican
shocks triggered by the 1998-99 crises in Asia and and municipal governments to build their capacity Republic
the Russian Federation. The region's GDP grew by to deliver quality public services, especially to Ecuador
El Salvador
3 8 percent over the year, responding to stabilized poor people. Grenada
global financial markets and 13 percent growth in Guatemala
Guyana
world trade. Most macroeconomic indicators Haiti
improved Inflation fell or remained stable in most Honduras
11 itrtretc u . PEOPLE, MANAGING DISASTER RECOVERY, Jamaica
countries, allowing mterest rates to contmue falhng. SUPPORTING DECENTRALIZATION Mexico
Unemployment dropped in Brazil, Chile, and Nicaragua
Panama
Mexico, it remained high, however, in Argentina, In fiscal 2001 the Bank helped LAC countries Paraguay
Colombia, and Peru, where political problems con- reduce poverty by supporting human development Peru
tributed to slowing growth Slower growth in the and disaster reconstruction programs and, in the St. Kitts and
Nevis
United States could affect prospects for the region's poorest countries, providing debt relief In the St. Lucia
sustained recovery. region's larger countries, it helped strengthen the St. Vincent
and the
Strong trade-at 51.5 percent of LAC's GDP, public sector and reform governance systems, often Grenadines
nearly double the proportion of a decade ago-and to accommodate the shifting of responsibilities from Suriname
Trinidad and
high oil prices eased balance of payments pressures central to decentralized authorities. The Bank also Tobago
in the region High oil prices helped Colombia, participated in a major multilateral effort to help Uruguay
Ecuador, Mexico, and the Republica Bolivariana Argentina address its recession by indicating readi- Venezuela,
RepLiblica
de Venezuela but increased the burden on oil ness to commit up to $2.4 billion over 2001 and Bolivariana de
importers, particularly in Central American and 2002 as part of a $39.7 billion IMF-backed package.
Caribbean countries, which already faced price Throughout the region, wide consultations with
declines for their commodity exports. Oil exporters' stakeholders are a priority to ensure ownership-and
higher surpluses narrowed the region's current therefore greater sustainability-of development
account deficit from $55 billion in 1999 to $47 bil- efforts (box 4.8).
lion in 2000-about 2.5 percent of GDP. The oil Table 4.5 shows the value and sectoral distribu-
price boom prompted a temporary dip in the need tion of total Bank lending to the Latin America and
for foreign savings and, accordingly, a drop in net the Caribbean region in the fiscal 1992-2001
resource flows to the region. Net foreign direct period. Table 8.6 (see About the World Bank) com-
Regional Perspectives 85
Latin America and the Caribbean Fast Facts J
Total population: 0.5 billion
Population growth: 1.5%
Life expectancy at birth: 70 years pares commitments, disbursements, and net trans-
Infant mortality per 1,000 births: 30 fers to the region for fiscal 1996-2001, and table
Female youth illiteracy: 6% 8.12 (see About the World Bank) shows operations
2000 GNI per capita: $3,680 approved in fiscal 2001, by country. Figure 4.5 shows
Number of persons living with HIV/AIDS: 1.8 million IBRD and IDA lending by sector.
Note: Life expectancy at birth and Infant mortality rate per 1,000 births are for 1999, other
indicators are for2000, from the Woad Development Indicators database. The termg ross
nat/onal income (GNI) Is now used Instead af gross national product (GNP). Investing in people
Support for investing in people is a priority in IBRD-
Total FY01 New Commitments Total FY01 Disbursements as well as IDA-eligible countries. New Bank assis-
IBRD $4,806.7 million IBRD $5,268.0 million tance was approved in fiscal 2001 for vulnerable
IDA $493.4 million IDA $198.0 million children's education and health in Colombia, basic
education in Brazil and Panama, water and sanita-
_f !seoe . ,.. * * ~tion in Ecuador, and social protection in Argentina
and Colombia-raising the Bank's regional portfolio
of ongoing projects in health, education, and social
protection to $7.2 billion. The portfolio includes
Box 4.8 Wider Consultations: The Bank's New Approach to efforts to address inequalities. As part of an overall
Developing Strategy strategy to focus efforts in Brazil's poorest region, for
example, the Bank is supporting a government initia-
With globalization, and civil society deeply engaged in public tive to provide land and capital to about 50,000
policy debates, the Bank is consulting with stakeholders more farmers in the northeast.
than ever in developing assistance strategies for LAC countries. The Bank's $2.6 billion health care portfolio in
In Argentina, a new Country Assistance Strategy drew perspec- LAC includes Mexico's five-year-old program to
tives from over 4,000 representatives from nongovernmental expand health-care coverage; 8.1 million poor peo-
organizations (NGOs), unions, companies, religious groups, and I ple, mostly in small communities with no previous
academic institutions who attended Bank-organized meetings i coverage, now have access. In the Caribbean, the
across the country. Participants discussed studies on topics I Bank is helping attack the world's highest HIV
ranging from education and judicial reform to transportation and prevalence rate outside Sub-Saharan Africa, with a
the financial sector. Similar processes have been completed, or $155 million program to support HIV/AIDS preven-
are under way or planned, in several other countries. tion and treatment programs in several countries,
In Mexico, the July 2000 election that resulted In a change of starting with Barbados and the Dominican Republic.
government was followed in October by a Bank-sponsored policy Support for Brazil's efforts to curb the spread of
seminar attended by decisionmakers from the outgoing and HIV/AIDS has yielded good results, with a halving
incoming teams. The seminar focused on analyses and recom- in the number of such deaths since 1993 (box 4.9).
mendations prepared by Bank staff in 36 areas ranging from The Bank has provided over $2 billion since
macroeconomic policy to human development. 1998 to improve education for poor people, with
projects ranging from primary education in rural
areas of Brazil, El Salvador, and Nicaragua, to post-
secondary student loan programs in Mexico. In El
Salvador, three loans totaling $148 million have sup-
ported a community-managed schools program
(EDUCO) to strengthen preschool and primary edu-
cation, as well as a program for secondary education.
EDUCO, which brought schools and teachers to
many poor rural areas for the first time, has raised
the country's primary enrollment to almost 85 per-
i cent, up from 78 percent in 1996. The EDUCO
l model has been used to develop similar projects in
Guatemala and Honduras, also with Bank support.
86 The World Bank Annual Report 2001
In some of
LAC's poorest
countries, debt _i.
relief and effective /
poverty reduction /
strategy go
together. In Bolivia, ., 1 -a
Guyana, Honduras, .- J
and Nicaragua, 'ii
governments-in \. ,
consultation with
civil society-are 0 ' -
developing strate-
gies to halve ---. K
poverty by 2015
The Poverty
Reduction Strategy
Papers coincide
with debt reduc-
tion provided
under the Youths from the Terena Indigenous Tribe In Mato Grosso do Sul,
enhanced Heavilv Indebted Poor Countries Brazil, leam about the use of condoms as a way to protect themselves
enhanced Heavily Indebted Poor Countries against HIV/AIDS
Initiative, supported by the Bank and the IMF In
fiscal 2001 Guyana, Honduras, and Nicaragua
joined Bolivia in obtaining required Bank agreement
to start receiving reductions in their external debt Box 4.9 Helping Brazil Save Lives, Prevent the Spread of
The agreements will reduce, over time and from all HIV/AIDS
creditors, Nicaragua's debt service by $4.5 billion,
Honduras's by $900 million, and Guyana's by $590 Two Bank loans totaling $325 million-approved in fiscal 1994
million, in addition to the $1.3 billion debt service and fiscal 1999-have helped Brazil reduce the spread of
reduction for Bolivia approved in fiscal 2000. HIV/AIDS, and enabled Brazilians with AIDS to live longer. The
first $160 million loan supported over 400 grassroots projects
run by 175 NGOs in cooperation with state and municipal gov-
uprportingss natra dsaserreovey ndernments. They distributed over 180 million condoms, raised
preparednes vHIV/AIDS awareness among over half a million people at risk,
Recovery from natural disasters remained a high and trained 3,800 teachers and 32,500 students in promoting
priority in Central America. The Bank helped HIV/AIDS and drug abuse prevention.
Belize, Honduras, and Nicaragua continue to The project, now in a second phase and supported by a
rebuild after the devastation of Hurricane Miltch in $165 million loan, has helped reduce the number of deaths
1998. In El Salvador, $33 million in education loans due toAIDS by5O percentsince 1993. Personslivingwith
were reprogrammed to finance reconstruction of HIV/AIDS also receive care through the project, because it sup-
schools damaged in the two earthquakes of January ports AIDS care units and home-care teams throughout the
and February 2001 The Bank is also supporting country. But prevention remains the project's focus. It has
prevention efforts in Dominica, Grenada, Mexico, helped finance a nationwide network of 170 HIV/AIDS testing
St. Kitts and Nevis, St. Lucia, and St. Vincent and and counseling centers and 800 diagnostic and treatment cen-
the Grenadines to reduce loss of life and material ters, and in partnership with the National Business AIDS
damage caused by natural disasters A $60 million Council, it enabled 3,000 companies to offer HIV/AIDS-
credit to Honduras will support a fifth phase of the awareness training to three to five million workers.
Social Investment Fund, which has provided grants
for reconstruction, as well as drinking water and
Regional Perspectives 87
N_ t t ^G re. v _ ;. ;1r
Figure 4.5 Latin America and the Caribbean: IBRD and Benefiting poor people in Pompoa, Honduras, this subproject is one of
over 15,000 small-scale, community-driven public investments financed
IDA Lending by Sector, Fiscal 2001 since 1990 by the Honduras Social Investment Fund. A fifth IDA credit
Share of total of $5.3 billion of $60 million was approved in fiscal 2001, bringing the total value of
the programs to $300 million.
Agriculture and
Environment
Infrastructurea 14%
11% Economic
Policy Strengthening the public sector
1%
Public Sector\Lending to subnational governments emerged as a
Management / major new Bank activity in LAC in 2001. The Bank
23% , is helping Argentina's Catamarca and C6rdoba
\ .~ --' \Human provinces, for example, to reform public finance and
Developmentb administration to ensure that decentralized health
3* /care, education, and public safety services are of
Finance and high quality and accessible to the poor.
Private Sector Other'
Development 1% In Mexico, the Bank has supported the federal
19% government's efforts to facilitate structural reforms
in the country's states, including a $505 million fast-
Note: Sector classification is on a loan component basis. See table 1.1, page 26. disbursing loan to the Estado de Mexico (the coun-
a. Includes transportation, telecommunications, and water supply and sanitation.
b. Includes S40.1 millon in IBRD loans to two countries undera multi-country trys largest state) in fiscal 2001. Support to Mexico
program to support HIV/AIDS prevention and treatment, for which the Bank has included a study of the challenges inherent in
earmarked funding of S155 million in fiscal 2001.
c. Includes electric power and other energy, and oil and gas. devolving responsibilities to state and municipal gov-
ernments, including analysis of taxation, transfer
payments, and dispute settlement mechanisms.
sanitation systems, roads, schools, and health Two projects are helping Brazil's state govern-
centers for the poor. In Colombia the Bank is help- ments in Bahia and Cearg improve basic education
ing to alleviate the impact of economic crisis by systems. Also in Brazil, the Bank is supporting the
supporting a workfare program and conditional government's fiscal stability program with a $758
cash transfers to help poor families keep children million loan focused on fiscal discipline by states
in school and maintain access to health and nutri- and municipalities, federal debt management, and
tion services. public expenditure management.
88 The World Bank Annual Report 2001
Table 4.5 World Bank Lendingto Borrowers in Latin America and the Caribbean, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis __j_Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual
average average
Agriculture 534.1 403.7 224.2 359.5 211.2 293.0
Economic policy 378.4 1,566.2 20.9 - 220.9 63.3
Education 588.5 796.8 77.5 362.7 95.5 545.7
Electric power 179.1 15.0 4.8 - 2.8 3.0
and other energy
Environment 255.4 246.2 52.6 451.9 73.8 458.7
Finance 761.9 449.2 1,160.0 984.1 1,307.5 964.5
Mining 49.0 19.8 - - - -
Multisector 38.2 208.0 225.0 10.1 185.0
Oil and gas 18.7 65.0 43.4 - 43.0 12.1
Health, nutrition, 334.1 566.8 157.6 45504a 175.6 660.4a
and population
Private sector 197.1 152.6 4.8 25.3 4.8 38.4
development
Public sector 225.5 405.7 1,265.8 1,795.7 869.3 1,253.0
management
Social protection 250.4 1,029.6 640.6 381.4 693.6 435.7
Telecommunications - 3.0 28.2 - 28.2
Transportation 897.8 757.3 - 422.5 - 444.6
Urban development 258.7 88.9 10.8 13.5 10.8 6.8
Water supply 306.0 114.5 147.3 38.0 141.5 120.9
and sanitation
Total 5,272.9 6,888.3 4,063.5 5,300.1 4,063.5 5,300.1
Of which
IBRD 4,957.1 6,406.4 3,898.2 4,806.7
IDA 315.8 481.9 165.3 493.4a,b
Note See table 1 1, page 26. Numbers may not add to totals because of rounding.
a Includes $40 1 million in IBRD loans to two countries under a multicountry program to support HIV/AIDS prevention and treatment,
for which the Bank earmarked funding of $155 million in fiscal 2001
b. Excludes IDA HIPC grants of $37 million to Honduras in fiscal 2001.
Regional Perspectives 89
"I am now 95 years old. This was the first time
that someone asked us what projects we needed.
and then it was realized."
A man from the small town of Um Dar by Jenin (West Bank and
Gaza), commenting on the Bank's consultations with villagers
for the Community Development Program Road Project.
Countries r Ea t WORLD BANK ASSISTANCE: SUPPORTING THE
Eligible for as and PRIVATE SECTOR, PUBLIC INSTITUTIONS, AND
World Bank
Borrowing: North Africa HUMAN RESOURCES
Algeria The diversity of the MNA region's challenges calls
Djibouti for customized Bank assistance. Fiscal 2001 was
Egypt, Arab
Republic of REGIONAL CONTEXT: IMPROVING marked by continued support for client-driven serv-
Iran, Islamic PERFORMANCE, STILL FACING SERIOUS ices to alleviate povertv, rapid response to severe
Republic of CHALLENGES economic shocks in the West Bank and Gaza
Jordan Starting i the late 1 980s many of the economies (through grant and concessional financing provided
Morocco of the Middle East and North Africa (MNA) by the Bank's Trust Fund for Gaza and the West
Syrian Arab Bank) and reimbursable technical assistance to the
Republic region committed to far-reaching economic Bank),
Tunisia reforms to restore macroeconomic balances and Gulf Cooperation Council countres as well as
Yemen, Malta and Libya-whose mcomes make them ieli-
Republic of promote development led by the private, rather Malta a lbya-whose winc makef thm invi-
than the public, sector Economic performance gible for IBRD lending but which benefit from adva-
also reports improved annual GDP growth increased from sory sevces in a wide range of areas
on the West 2 4 percent in 1981-90 to 3.1 percent in the The Bank's assistance strategy to MNA countres
Bank and Gaza. 1991-2000 period, as well as over the past year focused on three priority areas in fiscal 2001. The
first was helping strengthen the overall climate for
Despite the improved performance, the investment and private sector-led growth-critical
region faces serious economic and social challenges.
The break in the peace process, resulting in border economic stabilty and pursuing efficiency-enhancm g
closures, has posed severe problems in the West policy reform A second prority was support for
Bank and Gaza. Unemployment rates, averaging strngtenigo pbli sector management and
over 15 percent regionally, are of mounting concern stitutin blin thr moree ent ueo
Much of the region is still characterized by large budgetary resources and enhanced mechanisms for
pubic sectors, with centralized governments, over- participation. Bank assistance also focused on social
staffed civil services, and weak systems of accounta- protection and human resource development by
bility Several countries continue to be extremely helping countries improve the quality and coverage of
vulnerable to weather and commodity price shocks education and health-care services, reduce disparities
due to their limited economic resource base. Basic in incomes and access to services through targeted
infrastructure and services vital for private sector community-based development, and protect the vul-
growth remain weak. Integration with the rest of nerable with effective social policies In addition,
the world still lags behind other developing support for knowledge sharing through the Global
economies in Asia and Latin America Poverty, Development Learning Network (GDLN) strength-
though relatively low by some income measures, ens prospects for empowerment of people and
persists in large pockets throughout the region. increases the region's productivity (box 4.10).
90 The World Bank Annual Report 2001
Middle East and North Africa Fast Facts
Total population: 0.3 billion
Population growth: 1.9%
The Bank increasingly depends upon partner- Life expectancy at birth: 68 years
ships in the development process. Broad consulta- Infant mortality per 1,000 births: 44
tion with civil society and the poor is essential to Female youth illiteracy: 23%
better understanding their needs and helping them 2000 GNI per capita: $2,040
plan and implement their own development strate- Number of Persons living with HIV/AIDS: 0.4 million
gies. In Morocco, for example, the Bank organized Note: Life expectancy at birth and infant mortality rate per 1,000 births are for 1999, other
consultations with over 55 civil society representa- indicators are for 2000, from the World Development Indicators database. The term gross
tives to inform the preparation of its Country notionol income (GNI) is now used instead of gross national product (GNP).
Assistance Strategy (CAS). Partnership with other
devlopentorgniatins s eualy ita, t shre Total FY01 New Commitments Total FY01 Disbursements
development organizations is equally vital, to share BD352miloIRD662mlin
knowledge and avoid gaps and overlaps in activities. IBD $355.2 million IDA $666.2 million
For example, the Bank-sponsored Palestinian non-
governmental organization (NGO) project (Phase II
approved in fiscal 2001), designed to strengthen Portfolio of projects under implementation as of June 30, 2001:
NGOs' capacity to deliver improved services to the $5.9 billion
poor, has drawn international attention to the
approach of relying on NGOs' comparative advan- Box 4.10 MNA Joins the Global Development Learning
tages in addressing the needs of poor people. Network (GDLN)
Partnership has also helped Egyptian women obtain
identification cards (see box 4.1 1). With some 25 countries around the world connected to the
Table 4.6 shows the value and sectoral distribu- GDLN, this year saw the opening of the first two GDLN centers in
tion of total Bank lending to the Middle East and the MNA region, in Jordan and Egypt (with Egypt's GDLN soon to
North Africa region in the fiscal 1992-2001 period. become fully operational). Plans are under way for a center in
Table 8.7 (see About the World Bank) compares com- Saudi Arabia. Algeria. Morocco, Tunisia, and the Republic of
mitments, disbursements, and net transfers to the Yemen have also expressed interest in being connected.
region for fiscal 1996-2001, and table 8.13 (see The GDLN provides a platform for developing countries to
About the World Bank) shows operations approved in exchange information. As other MNA economies link to the
fiscal 2001, by country. Figure 4.6 shows IBRD and GDLN, the network offers great potential to become a powerful
IDA lending by sector. facility for collaborative information-sharing on issues common
to the region, with substantial benefit for effective policymaking.
Strengthening the climate for investment and pri- At the country level, sharing of information among the govern-
vate sector-led growth ment, civil society, and interested parties also promotes partici-
pation in the development process. By enabling the exchange of
Sustained growth that raises incomes and extends experience among countries, the GDLN offers a potentially
benefits to the poor is critical for poverty reduction important vehicle for finding common solutions to problems fac-
and job creation. Helping countries pursue faster, ing the MNA region.
sustainable growth is a defining theme of Bank sup-
port to the MNA region, both through CASs
(Djibouti and Morocco, and an interim assistance
strategy for the Islamic Republic of Iran) and
sources of growth studies (Jordan and Lebanon). To
promote private sector development, the Bank importance of enhancing the region's integration
helped Tunisia strengthen urban transport capacity with the global economy. Extensive work toward a
while supporting Morocco in privatization and fur- private sector development strategy for Kuwait offers
ther liberalization of its telecommunications sector. an example of the Bank's growing emphasis on pri-
Trade and competitiveness studies for Egypt, the vate sector development and competitiveness issues
Islamic Republic of Iran, Tunisia, and the West in the region.
Bank and Gaza, as well as support for information Gender and cultural issues also affect growth.
infrastructure in Morocco and an information tech- Empirical evidence increasingly demonstrates that
nology strategy for Algeria, also underscore the gender inequality contributes significantly to
Regional Perspectives 91
dialogue series was
iijli*i~' a launched in fiscal 2001 to
help MNA Region staff
m ~~~~~~~~~~~~implement the Bank's
~~~* ~~~~~s ~~~gender policies. The Bank
also recognizes that pre-
serving cultural heritage is
_ t t - + ~ 4 - ' \; _;_- @ - integral to MNA's devel-
opment strategy Efforts in
fiscal 2001 included a
t ' v, 4cultural heritage preserva-
______________ ~~~~~~tion project in Tunisia and
a comprehensive report
' <:W -tL +k4' ' on cultural heritage
In fiscal 2001, the World Bank responded rapidly to the unemployment preservation in the region
crisis in the West Bank and Gaza through the Emergency Response
Program, which supported infrastructure improvements through labor-
intensive activities, and has already, in its first five months of imple- Public sector management and institution building
mentation, created about 180,000 man-days of work
Institution building, to improve public sector
accountability and efficiency, is a key theme of Bank
Figure 4.6 MIddle East and North Africa: IBRD and IDA assistance to the MNA region. In fiscal 2001 the
Lending by Sector, Fiscal 2001 Bank helped strengthen the public administration's
Share of total of $0.5 billion ability to provide basic social and infrastructure serv-
Urban ices through, for example, support for long-term
Development education strategies in Djibouti, Morocco, and the
2% Agriculture and Republic of Yemen, and for pension system improve-
Environment ments in Djibouti and the West Bank and Gaza.
Infrastructure' 16%
29% Other new operations reinforced local public institu-
tional capacity (Morocco and the Republic of
Human
Development Yemen), making public expenditure more efficient.
17% They also pave the way for greater decentralization
as well as reliance on civil society and the private
Otherb sector in planning and delivering public services.
4% The Bank also supported budgetary systems in
Public Sector Algeria, Jordan, and the Republic of Yemen, for an
Management
32% innovative and comprehensive public sector reform
credit Important capacity-building activities were
Note Sector classification Is on a loan component basis See table 1 1, page 26 initiated in Egypt in the area of project appraisal,
a Includes transportaion, telecommunications, and water supply and sanitation
b Includes mining monitoring, and evaluation.
Social protection and human resource
poverty Bank assistance to the region has sought to development
close the gender gap and mainstream gender con- Although MNA's poverty rates are relatively low,
cerns in policy dialogue, projects, and economic other social indicators signal a more serious poverty
and sector work. In 2000 over 55 percent of lending problem In fiscal 2001 the Bank continued to build
operations in MNA addressed gender issues- knowledge on poverty, through reviews and assess-
higher than any other Region and more than double ments (Egypt, Morocco, and the West Bank and
the rate of 10 years ago At the suggestion of the Gaza). Helping countries address the survival needs
MNA Consultative Council on Gender, a gender of those in society who are unable adequately to
92 The World Bank Annual Report 2001
<U ,id, help themselves has also been a priority. An
~ Emergency Response Program in the WVest Bank and
Gaza, for example, created labor-intensive emer-
gency employment activities for thousands of per-
sons facing severe economic hardship. The Bank
also helped countries design and implement safety
nets in fiscal 2001, with an assessment of social pro-
tection in Egypt and preparation of a comprehensive
regional study of social protection schemes
Rural and community development have
emerged as important areas of Bank support, with
targeted community development (Lebanon and the
West Bank and Gaza), and support for rural infra-
_ , structure (Morocco and the Republic of Yemen).
c D *o s Support for expanding access to safe water in the
Cu . -,_. Republic of Yemen is also allowing tremendous sav-
4 D w; ings of time devoted to collecting water-particu-
larly for women and girls, who can instead pursue
schooling. New Bank operations in MNA, recogniz-
_- - i 5 - .L_\ ! ing the vital role of water management, have sup-
__ ported irrigation improvement (Morocco and the
Republic of Yemen), water resource management
Through the joint efforts of the World Bank and a local civil society (Jord d h ' A L
organization, women in Egypt are finally getting registered, and gain- (Joran an the Syrian rab Republc), and agricul-
ing access to important social and education services. tural competitiveness assessments (Egypt and
Morocco). The Bank also sponsored the Nile Basin
Initiative in fiscal 2001 to foster constructive dia-
Box 4.11 Helping Alleviate Poverty among Egyptian logue among the Nile's 10 riparian states and gener-
Women: The Power of Partnership ate win-win solutions to the problem of Nile
water-sharing. In addition, it chaired an important
In many of the poorer communities in Egypt, people-particularly meeting of the International Consortium for
women-are not registered at birth, making it impossible for Cooperation on the Nile in June 2001.
them to access basic rights and services. In fiscal 2001 the Helping expand access to education and health
Bank's MNA staff teamed up with an Egyptian civil society organi- services remains a cornerstone of the Bank's work in
zation, the Egyptian Center for Women's Rights, to support supporting poverty reduction. In fiscal 2001 the
women's access to identification cards and birth certificates, Bank continued its long-standing commitment to
through the Bank-sponsored Development Marketplace. The proj- education in MNA with support for education proj-
ect funded some of the costs of Issuing identification cards in the ects in Djibouti, the West Bank and Gaza, and the
Greater Cairo area and raised awareness among other NGOs, the Republic of Yemen. Responding to the government's
media, the general public, and the government. As a result of the concern over the implications of fast-growing univer-
campaign, women who have received identiflcation cards are Ri- sity enrollments, the Bank also produced an analysis
ing for and receiving Inheritances, registering for literacy classes, on rationalizing higher education in the Republic of
voting, and receiving pensions. Yemen. Support in fiscal 2001 for sanitation and
solid waste management, meanwhile, will help
improve public health and quality of life in the "lest
Bank and Gaza and the Republic of Yemen
Regional Perspectives 93
Table 4.6 World Bank Lending to Borrowers in the Middle East and North Africa, by Sector, Fiscal 1992-2001
(millions of dollars)
Sector Classified on a Loan-by-Loan Basis Classified on a Loan Component Basis
FY92-97 FY98-99 FY00 FY01 FY00 FY01
Annual Annual
average average
Agriculture 307.4 284.1 153.0 75.2 153.0 75.2
Economic policy 195.8 185.0 - - - -
Education 95.1 96.5 219.2 66.0 233.5 70.0
Electric power 88.3 27.0 - - - -
and other energy
Environment 27.8 17.5 - - 72.5 8.5
Finance 90.8 119.5 - - - -
Mining - - - 18.0 - 18.0
Multisector 6.7 - 83.5 - 62.8 -
Oil and gas 32.5 - - - -
Health, nutrition, 56.0 120.5 87.0 - 119.0 4.0
and population
Private sector 20.6 68.0 15.9 - 15.9 -
development
Public sector 9.2 27.0 35.3 143.7 35.3 163.8
management
Social protection 45.9 88.8 75.0 20.0 49.4 12.0
Telecommunications 20.0 - 9.0 65.0 9.0 44.9
Transportation 58.9 28.9 15.0 82.6 15.0 82.6
Urban development 188.3 173.0 82.2 17.0 82.2 8.5
Water supply 91.4 45.0 145.0 20.0 72.5 20.0
and sanitation
Total 1,334.7 1,280.8 920.1 507.5a 920.1 507.5a
Of which
IBRD 1,183.8 955.5 760.3 355.2
IDA 150.9 325.3 159.8 152.3
Note See table 1 1, page 26 Numbers may not add to totals because of rounding
a Does not include special financing of S36 1 million provided by the Trust Fund for Gaza and the West Bank
94 The World Bank Annual Report 2001
Chapter 5
Development Effectiveness
The bottom line for the World Bank is its develop- 78 percent in fiscal 2000, when weighted by the
ment effectiveness The independent Operations number of projects (figure 5 1) In addition, 43 per-
Evaluation Department (OED) tracks the Bank's cent of the projects resulted in substantial institu-
development performance, analyzing the effective- tional development impact-an increase from 31
ness of Bank projects, programs, and processes; percent in 1990-94-and projects with benefits sus-
draws lessons of operational experience, and pro- tainable over the long term rose to 57 percent from
vides advice to the Board based on evaluations at 48 percent just two years earlier
the project, country, and sector levels. OED also The quality of adjustment lending improved
guides evaluation capacity development in client steadily and markedly throughout the 1990s, as meas-
countries Each year, evidence from these evalua- ured, inter alia, by OED ratings for outcome, sustain-
tions is marshaled to produce a summary report on ability, and institutional development impact (figure
the Bank's development effectiveness. 5 2), the poverty and social focus of adjustment lend-
This year's Annual Review of Development ing has also increased substantially over time A retro-
Effectiveness (ARDE) confirms that the Bank's devel- spective undertaken in fiscal 2001 also found that
opment performance has improved significantly over adjustment lending has become an important devel-
the past five years. This improvement is clearly evi- opmental instrument that has evolved in tandem with
dent at the project level In particular, the quality of countries' broader reform agendas, focused mncreas-
IDA's work in the poorest countries has improved, ingly on long-run structural, social, and institutional
though further gains are necessary issues. Further work is under way, including on social
impact, conditionality, and fiduciary framework
PROJECT PERFORMANCE IS IMPROVING Overall, the increased share of closed projects
with satisfactory outcomes reflects the steady
The performance of Bank-supported projects has improvement in the quality of ongoing projects, as
improved markedly and contributed to better develop- reported by the Quality Assurance Group (QAG)
ment results, as reported in the ARDE. Preliminary Created in 1996, QAG has played a key role in
results show an increase from 73 percent of closed improving the development effectiveness of Bank
projects with satisfactory outcomes in fiscal 1999 to operations by providing managers and staff with real-
Figure 5.1 Trends in Project Outcomes
(percent of projects with satisfactory outcomes)
90
Weighted by disbursements
80
70 Weighted by projects
67
60
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year in which projects closed
Development Effectiveness 95
Box 5.1 Building Partnerships for Project Supervision
Strong partnerships in project supervision pay rich dividends:
greater likelihood of development Impact, better chance for suc- development effectiveness The dollar amount of
cess of complex project designs, and lower cost of supervision active projects supporting public sector governance
for project financiers. Building effective alliances among the and institutional reform-which strongly affect how
client, stakeholders, and donors has become a growing priority. aid funds are used-has doubled over the past five
In the Peru Rural Roads Rehabilitation and Maintenance Project, years, about half of all adjustment loans have had
for example, teams from the Bank and the Inter-American fiscal transparency and anticorruption components
Development Bank (a cofinancier) furnish complementary skills The Bank has also substantially strengthened comph-
and coordinate their field visits. The supervision teams also ance with safeguard and fiduciary policies-which
interact extensively with local government and communities, promote project sustainability when applied pragmat-
which play a significant role in the project's successful imple- ically-and improved projects' financial management,
mentation. with a near quadrupling of financial management
Increasing development effectiveness through partnerships specialists and substantial reliance on new Country
is a process of continuous learning. Key factors are a willingness Financial Accountability Assessments In another
to listen, establishment of common goals and roadmaps to crucial yet difficult area, the Bank has launched new
achieve them, and adjustment of work processes in the interest efforts to improve monitoring and evaluation of
of compatibility. Greater progress in harmonizing donor proce- development outcomes; sustained efforts will be
dures remains an important challenge in this regard. required, over several years, for results to become
evident. Finally, decentralization of Bank staff to the
field is believed to be beneficial. As the number of
field offices, country directors in the field, and opera-
Figure 5.2 Quality of Adjustment Lending tions being prepared and supervised by staff in the
(percent of operations with field have increased, key quality indicators have
satisfactory outcomes) improved, with strongly supportive client feedback.
97%
ASSESSING COUNTRY PROGRAM PERFORMANCE
87%
To ascertain whether the Bank's Country Assistance
Strategies (CASs) have delivered results on the
73% ground, OED uses three complementary evaluation
methods: aggregating performance information on
individual lending and nonlending activities; relating
_____ ______ ______ the inputs to country assistance programs to their
1990-94 1995-98 1999-2000 outputs, outcomes, and impacts; and assessing the
performance of the Bank against its own policy
Note Weighted by disbursements. benchmarks and procedures along with the perform-
ance of other actors.
time information on projects' quality and risk. With This approach has allowed OED to identify the
sustained effort, the Bank's portfolio of active proj- most important determinants of country program
ects is now healthier than it has been since the early outcomes: borrower commitment and the extent to
1980s. At the end of fiscal 2001 only 12 percent of which Bank strategies, programs, processes, and
projects were "at risk" of not achieving their develop- partnerships have been adapted to the country set-
ment objectives, compared with more than double ting. These findings demonstrate that instruments
that ratio in fiscal 1996. The quality of project for assessing ownership, such as stakeholder analy-
preparation and supervision has also improved sig- sis, should be used more widely than they have been
nificantly, as has the Bank's analytical (economic in CAS formulation as well as in the design and exe-
and sector) work. The improvements over the five- cution of policy reforms and development programs.
year period, moreover, have been broad-based, and Analysis of OED data suggests that sound
have benefited from heightened efforts to work in macroeconomic policies and high-quality institutions
consultation and partnership with others (box 5.1). increase the effectiveness of development invest-
The Bank has made other advances in improving ments. The Bank's research confirms that country
96 The World Bank Annual Report 2001
policies have improved during the 1990s, and that Overall, the OED review found the development
overall bilateral and multilateral aid was better tar- outcomes of IDA programs-influenced by exoge-
geted to countries endowed with policies that pro- nous factors and borrower and partner performance,
vide a suitable framework for effective development
assistance. Conversely, countries with poor enabling Figure 5.3 Poor Performers Experience a Decline in Aid
environments received less aid (see figure 5.3).
1992-1994
Aid/GNP (percent)
IMPROVEMENTS HAVE BEEN MADE IN IDA 014
COUNTRIES
0 12
The performance of IDA over recent years has 0 10
improved. OED conducted a review of the imple- 008
mentation of undertakings under IDA-10, IDA-II,
and the first year of IDA-12. These undertakings
included (1) sharpening the poverty focus of sup- 004
port for country development, (2) expanding access 002
to social services, fostering broad-based growth, pro- o oo-. - -
moting good governance, and integrating gender and Low Middle High
environmental considerations into development Country policy ratings
efforts, and (3) increasing effectiveness through 1998
more selective, more thorough, and better-coordi- Aid/GNP (percent)
nated CASs 0 14
OED's review found that these undertakings 012
were highly relevant and timely They encouraged 0 10
IDA to move in step with the evolving consensus of 0 08
the international development community But they 0 06
also were extraordinarily demanding for both IDA
and its borrowers. Overall, OED found IDA's imple- 004
mentation of these undertakings to be satisfactory, 002
but with qualifications IDA has strengthened the 0 00 L M H
poverty focus of its analytical work, policy dialogue, Low Middle High
and lending. In countries committed to economic Country policy ratings
reform, it has contributed to increased economic
stability, fewer distortions, and improved infrastruc-
ture development. But broad-based, job-creating Figure 5.4 Trends In Performance of IDA Projects
growth remains a challenge. Moreover, IDA was Closing In the Years Covered by
slow to comply with its governance undertakings, Replenishments 9, 10, and 11
although its performance has improved considerably Percent of total
over the past five years. Progress in mainstreaming 80
gender, environmental, and private sector develop- 71 Satisfactory outcome
ment objectives has proven challenging-reflecting a
lack of interest by many countries-and led to the 60 61 62
design of new thematic strategies. 46
IDA project performance has improved steadily _ Likely to be sustainable
over the period (see figure 5 4) Outcomes of com- Substantial institutional
pleted projects have risen to more than 70 percent 5 development impact
satisfactory. Sustainability and institutional develop- 20 27 26
ment impact also have improved. Much progress can
be seen in project-level outcomes as well as in qual-
ity indicators coming from QAG assessments. 0
IDA-9 IDA-10 IDA-11
Development Effectiveness 97
in addition to IDAs own performance-to be par- Box 5.2 OED Uses Participatory Approaches In Evaluation
tially satisfactory Of importance, going forward, are
recent initiatives geared to improving coordination The participatory consultation process for OED's evaluation prod-
and harmonization of poverty reduction strategies in ucts has included sharing design formats, eliciting information on
IDA countries. performance and processes, and disseminating findings to stake-
holders through workshops. Here are the highlights:
SECTOR AND THEMATIC PERFORMANCE IS A joint workshop with the Bank's research arm, the
STARTING TO SHOW RESULTS Development Economics and Data Group, brought together
donors, country participants, nongovernmental organizations
The Bank's move beyond projects toward the higher (NGOs), and partners from borrowing countries to discuss the
plane of country strategy has been paralleled by a approach and design of an evaluation of the CDF.
shift toward improving sector and thematic perform- In conjunction with the initiation of a review of global public
ance, at both the country and global levels The goods, an entry workshop of 50 participants discussed issues
challenge has been to strengthen the strategic in financing and evaluation in the areas of environment,
challenge has been to strengthen the strategic uhealth, knowledge, and financial stability.
focus and policy content of services within particular The Forestry Review conducted workshops at entry, mid-point,
sectors and to integrate crosscutting thematic priori- and exit that included a wide range of participants from both
ties-including poverty, participation, and gender- inside and outside the Bank.
into the range of Bank activities The Environment and Social Funds Reviews engaged in broad
The ARDE's findings suggest that the Bank's stakeholder participation at entry and mid-point in their evalua-
efforts to improve development effectiveness during tions.
the past five years are starting to show results, The Gender Review engaged stakeholders from across regions
although not uniformly across sectors. OED's analy- and numerous partners including bilateral donors, NGOs,
sis of sector and thematic performance suggests that client country representatives, the United Nations, and the
four factors are associated with successful sector European Union.
The India Country Assistance Evaluation involved stakeholders
strategies an cear perfolicyfrmamew ; aection plran across a number of sectors, ministries, and organizations.
to Improve on past performance, a specific program Workshops have been part of OED's dissemination strategy for
of development assistance at the country and global the ARDE, Aid Coordination Study, and Forestry Review,
levels, and a definition of the Bank's role taking among others.
account of partners' activities
OED's analysis also confirms that the Bank
has strengthened the poverty focus of its operations.
The considerable growth of poverty assessment with civil society Participation is the cornerstone of
activities, the expansion of social sector lending, initiatives such as the Comprehensive Development
the increased decentralization of country assistance Framework (CDF) and, more recently, of Poverty
management, and the increased focus on gover- Reduction Strategies, OED also uses participatory
nance concerns have contributed to this wholesome approaches in evaluation (see box 5.2).
trend. But more needs to be done to integrate The participatory process has involved a wide
broad-based poverty reduction strategies into range of interactions, on many fronts, between the
macroeconomic and sector programs and to Bank and its clients and partners, but few objectives
strengthen poverty monitoring and evaluation are more important than institutional development.
Institutional development has become a focus of
Bank lending in its own right, increasing from 18
THE BANK IS PROMOTING PARTICIPATION ANDggg
INSTITUTIONAL DEVELOPMENT percent of total lending in 1996 to 30 percent in
2000
The World Bank has made participation a central Community participation has become especially
feature of its development efforts since the mid- important to the Bank's efforts to build lasting insti-
1990s. It has expanded its work with regional and tutions Since 1992 the percentage of projects with
local governments in borrowing countries, cultivated community participation has increased from 41
new development partners and intensified its percent to 67 percent (see figure 5 5) OED has
engagement with existing ones, and opened dialogue found that this participation helped beneficiaries tai-
98 The World Bank Annual Report 2001
Figure 5.5 Percentage of Projects with Community had not traditionally worked together; and led to
Participation better development results.
(share of total projects) 67%
52% MANAGEMENT IMPLICATIONS
41% The results of OED's studies have three implications
for corporate management First, Bank strategies,
programs, and budgeting processes need to be
strongly linked to the achievement of results consis-
_ _____ _______ tent with the Bank's mission and comparative
1992 1996 2000 advantage. Second, the Bank needs to strike an
appropriate balance between knowledge manage-
ment and knowledge creation-at both the country
Note Based on 189 projects sampled and global levels-and establish monitoring and
tracklng processes to strengthen the quality and
lor projects to better meet their needs, gave people a coherence of its knowledge activities Finally, the
sense of pride, control, and ownership, made proj- Bank must continuously assess its comparative
ects more sensitive to issues such as domestic vio- advantage so as to improve its development effec-
lence, increased transparency in decisionmaking and tiveness and to withdraw from activities better
contracting, fostered cooperation among people who carried out by other development partners
Development Effectiveness 99
Chapter 6
Partnerships for Development
Coming out of the World Bank's renewal since environmental commons, trade and integration,
1997, partnership has become a way of doing busi- international financial architecture, and the informa-
ness for the Bank The Bank is investing consider- tion and knowledge revolution
ably in collaborative efforts, albeit with greater
selectivity over the past year Such investment has INSTITUTIONAL PARTNERS
meant intensified relationships with client govern-
ments and shareholders-the Bank's foremost International Monetary Fund. Collaboration with
partners-as well as with the Bank's main institu- the IMF has assumed new vigor Intense partnership
tional partners, and broad efforts to improve collab- through a Joint Implementation Committee resulted
oration with other actors in development, such as in substantial progress on debt relief and PRSPs in
civil society and the business sector fiscal 2001, the two Boards approved debt relief for
At the country level, collaboration with high- 16 countries under the Heavily Indebted Poor
level government, parliaments, the private sector, Countries (HIPC) Initiative and discussed Full or
civil society, and multilateral and bilateral donors has Interim PRSPs of 32 countries A first-time joint
intensified and broadened. The principles underlying visit by the heads of the two institutions to Africa,
the Comprehensive Development Framework where the majority of HIPC-PRSP work has been
(CDF)-a holistic approach to development, concentrated, signaled the same high degree of part-
stronger country ownership, more strategic partner- nership In another area of momentum, 23 countries
ships, greater accountability, and focus on develop- participated in the joint Financial Sector Assessment
ment results-are guiding the preparation process of Program, which flags vulnerabilities in countries'
the Poverty Reduction Strategy Paper (PRSP) in low- financial sectors (see also page 57). In line with the
income countries Partnership is key among internal division of labor between the IMF and the Bank-
partners to build national consensus-crucial for and with a view to taking better advantage of the
sustainability-and among external partners to align complementarity between the two institutions-each
support around the country's strategy. Alignment is institution concentrates on its primary areas of
aimed at reducing wasteful competition and overlap responsibility and competence. The IMF leads the
among donors and at promoting learning, selectivity, dialogue with country authorities on macroeconomic
transparency, and accountability issues, and the Bank, the dialogue on social and
The Bank is also entering into global partnership structural issues
initiatives to address issues at the transnational level
Provision of global public goods requires the joining United Nations. Bank cooperation with the U N.,
of mandates and capabilities of many organizations. focused on poverty reduction and investment in peo-
For example, United Nations (U N ) agencies have a ple, dates back to the inception of the two institu-
mandate in several key global public goods areas, tions The international development goals agreed on
such as communicable disease control, while part- at U.N. global conferences in the 1990s as a frame
nership with the IMF is central to the Bank's role in of reference for that institution's mission underscore
public goods related to global economic governance, the all-encompassing nature of the Bank-U N part-
trade, and financial stability Partnership with other nership. In fiscal 2001 the Bank helped prepare the
institutions, multilateral and bilateral donors, foun- General Assembly Special Session on HIV/AIDS,
dations, nongovernmental organizations (NGOs), and the International Conference on Financing for
and the private sector is also crucial. The Bank's Development, a major event scheduled for early
Strategic Framework for poverty reduction, articu- 2002. Operational collaboration is also significant,
lated in fiscal 2001, emphasizes five areas for Bank for example on HIV/AIDS projects with the Joint
support at the global levcl communicable diseases, United Nations Programme on HIV/AIDS
Partnerships for Development
(UNAIDS), food security projects with the Food and the HIPC Initiative and PRSP Programs, and has
Agriculture Organization, and support for PRSP committed to cofinance the new Poverty Reduction
preparation with other agencies. A U.N. agency Support Credits and contribute to a new Bank-man-
internal learning group meets regularly with the aged multidonor trust fund on public expenditure
Bank on the CDF In the past year Mr Wolfensohn management. Collaboration on global-level issues
has also participated in high-level U.N meetings. extends to the CDF, the Global Environmental
Facility, the Asia-Europe Meeting Trust Fund, gov-
Multilateral development banks (MDBs). Also ernance, anticorruption, and climate change.
stronger in recent years has been partnership across
MDBs-the World Bank and the four regional devel- Organisation for Economic Co-operation and
opment banks, namely, the African Development Development (OECD). Partnership with the OECD
Bank (AfDB), the Asian Development Bank (ADB), has strengthened considerably in recent years.
the Inter-American Development Bank (IADB), and Collaboration with the organization's Development
the European Bank for Reconstruction and Assistance Committee (DAC) has been especially
Development. Intensified coordination at all levels important DAC provides a forum for OECD mem-
includes regular meetings of MDB presidents, who bers to achieve, as bilateral donors, greater coherence
in February 2001 agreed on poverty reduction as a and convergence in their development programs
joint objective and on common development princi- DAC members-which together contributed over
ples echoing those of the CDF A particular chal- $53 billion in bilateral aid in 2000-have signifi-
lenge for MDBs-often the most important external cantly strengthened their poverty focus over the past
partners for poorer countries-is the harmonizing of year (by adopting the DAC Guidelines on Poverty
policies and procedures. Several technical working Reduction). In addition, they have expressed an
groups have been established to work on harmoniza- intention to align aid programs within the PRSP
tion and convergence in the way MDBs work To framework and to untie their aid to least-developed
avoid duplication and enhance effectiveness, the countries Beyond low-income countries, the Bank
Bank has signed Memoranda of Understanding with collaborates with OECD on a broad agenda includ-
AfDB and IADB, respectively, while one with ADB is ing trade, environment, corporate governance, anti-
under preparation. A protocol on supporting coun- corruption, and the digital divide Objectives are to
tries preparing PRSPs was agreed on among MDBs minimize duplication of effort, maximize synergies,
and the IMF and learn from each other.
The European Union (EU). Also strong is the THEMATIC PARTNERSHIPS
Bank's partnership with the EU, which accounts for
60 percent of total official development assistance Communicable diseases. With three million people
The EU is a major political player, trading partner, a year lost to AIDS, two million to tuberculosis, and
and source of foreign investment for the developing over a million to malaria, partnerships to control the
world. Cooperation covers support to Central and mounting threat to development from communicable
East European countries (EU accession), the diseases have assumed a heightened urgency As
Commonwealth of Independent States; Bosnia and HIV/AIDS continues to spread, global collaboration
Herzegovina (successfully raising funds for its $5 1 becomes imperative (box 6 1). The Bank has also
billion economic recovery program); and Kosovo, been partnering with affected countries, the World
the Federal Republic of Yugoslavia, and Balkan Health Organization (WHO), bilateral donors, and
reconstruction through a Joint European NGOs through the Stop Tuberculosis Initiative, to
Commission (EC)-World Bank Office for South mobilize over $125 million toward research for new
East Europe in Brussels The Bank Group has drugs and vaccines and expanded access to existing
developed in detail, and expects to sign shortly, a drugs Another important initiative is Roll Back
Framework Agreement with the EC on cofinancing Malaria, an African-led initiative launched by the
and trust funds, aimed at streamlining administra- Bank, WHO, the United Nations Children's Fund
tive arrangements for a broad range of financial (UNICEF), and the United Nations Development
partnerships in the future. The EC also supports Programme (UNDP) in 1998 to help mobilize
02 The World Bank Annual Report 2001
Box 6.1 Partnership against HIV/AIDS
Only with concerted effort can the world hope to win the fight
resources for the fight against malaria. An important against HIV/AIDS. Significant as the outstanding agenda is,
public-private partnership is the Global Alliance for there is reason for hope:
Vaccines and Immunization, already improving access 0 More governments than ever before have confronted
to existing childhood vaccines while accelerating the HIV/AIDS publicly over the past year, displaying leadership
development of new ones. and commitment, followed by action.
o Global support has grown, with front-page coverage in peri-
Child labor. The International Labour Organisation, odicals, targeted campaigns, more resources, and U.N.
UNICEF, and the World Bank have recently General Assembly and Security Council resolutions on
launched a Cooperative Research Program in the HIV/AIDS.
campaign against child labor. Under this effort the .1 A U.N. General Assembly Special Session held in June 2001
Developing New Strategies for Understanding renewed global commitment to cooperation amid a height-
Children's Work and Its Impact Project aims to ened awareness that funding from all sources needs to
improve child labor data collection and analysis and increase substantially for the spread of HIV/AIDS to be
to help developing countries design appropriate halted by 2015-a goal agreed on at the session, to be incor-
interventions. This project allows the three agencies porated into the Millennium Development Goals.
to collaborate at the technical level to address issues 0 Following negotiations with UNAIDS cosponsors-including the
of common concern and to exploit each agency's Bank-under the Accelerating Access Initiative, manufacturers
comparative advantage in order to provide sound of HIV/AIDS drugs have reduced their prices by 90 percent.
advice to countries in the area of child labor. L The Bank is a founding member and supporter, through the
Development Grant Facility, of the International AIDS Vaccine
Trade. I'articularly with globalization, partnerships Initiative (IAVI). IAVI is promoting the development of
to help developing countries create-and take HIV/AIDS vaccines for developing countries.
advantage of-newv trade opportunities are becoming [ The Bank has worked with UNAIDS and the International
crucial. The Bank has been working with many mul- Partnership Against AIDS in Africa to help several African
tilateral and bilateral agencies (the World Trade countries prepare projects under the $500 million Multi-
Organization, IANIF, the International Trade Center, Country HIV/AIDS Program (seven of these projects were
UNDP, and the U.N. Conference on 1rade and approved in fiscal 2001). Similar support to Caribbean
Development) under the Integrated Framework (IF) nations is benefiting from collaboration with UNAIDS, the Pan
Program created in 1996 to enhance trade-related American Health Organization, WHO, and other regional part-
technical assistance to developing countries. The IF ners. The Bank has also worked closely with the IMF and
has recently been redefined to ensure better integra- UNAIDS to help countries integrate HIV/AIDS support into
tion of trade with national development strategies. HIPC and PRSP Programs.
In addition, the Bank engages in a regular dialogue C The International AIDS Economic Network-a partnership of
with the International Confederation of Federal the Bank, UNAIDS, the U.S. Agency for International
Trade Unions on a wide range of issues, including Development, and the EU-provides data, tools, and analysis
Bank economic and social policies, core labor stan- for compassionate, cost-effective responses to the epidemic
dards, and country-level experience with develop- to thousands of researchers and practitioners worldwide.
ment programs.
Environment. Partners are vital to helping the Bank Box 6.2 Consultative Group on International Agricultural
meet its environmental goals and commitments to Research (CGIAR)
global objectives such as reducing hunger (box 6.2).
In fiscal 2001 the Bank teamed up with Since 1971, the Bank has provided strongsupport forthe
Conservation International and the Global Environ- CGIAR-a network of 16 international agricultural research cen-
ment Facility to launch a Critical Ecosystems ters that mobilize cutting-edge science to reduce hunger and
Partnership Fund. The fund will protect highly poverty in developing countries, improve health, and protect
threatened "biodiversity hot-spots," also helping the environment.
poor people whose survival depends on the In fiscal 2001 CGIAR developed high-protein, miracle corn to
biodiversity. Also in fiscal 2001, the World Com- help prevent malnutrition-winning the Millennium World Food
mission on Dams, initiated by the Bank and the Prize-and a vaccine for East Coast Fever, with spillover benefits
for malaria and cancer research.
Partnerships for Development 103
World Conservation Union, launched its landmark ing sustainable resources from the private sector,
report-Dams and Development. A New Framework public sector, and local leadership, with plans for
for Decision-Making, the Bank is now working with replication in African, East European, and Asian
its clients to see how the report's findings can be cities. Another area of public-private partnership
used to improve performance. Other collaborative relates to the World Bank Institute's (WBI's) efforts
efforts in recent years are helping countries save to develop capacity-building programs linked to
forests, better prepare for natural disasters, and lending operations on HIV/AIDS, where companies
address climate change (see page 21 on the are helping to inventory best practices and programs
Prototype Carbon Fund). toward establishing a platform for knowledge sharing.
Governance. The Bank has, since the mid- Knowledge and information. Combined with infor-
1990s, given high priority to issues of corruption mation and communications technologies, knowl-
and governance, which hurt poor people the edge is a critical engine for development and for
most. Collaboration with MDBs takes place empowering poor people. Low rates of physical con-
through a Working Group on Governance and nectivity, inadequate skills, and weak policies
Anticorruption. Partnership with UNDP comple- sharply constrain access by poor countries, however.
ments Bank contributions, close collaboration is pro- The Bank is working with a variety of partners to
moting efficient use of resources and reducing help countries develop appropriate legal and regula-
unnecessary duplication. The Bank has also been tory environments, support education through pro-
active in promoting corporate governance, particularly grams that explicitly focus on global knowledge
since the 1997-98 Asian cnsis when weak disclosure linkages (see box 6.4); encourage investment in
practices and shareholder rights hurt investors A information infrastructure, and support a network
Global Corporate Governance Forum in March 2001, of global knowledge centers, such as the CGIAR.
established Jointly with the OECD, alms to address The Bank's development research work increasingly
countries' corporate governance weaknesses, and involves partners, for example through extensive
thereby improve their investment climate worldwide consultations in preparation of the World
Development Report (WDR) 2000/2001 and the
Private sector. The Bank works closely with public World Development Indicators. An important knowl-
and private partners on programs supporting private edge partnership that in fiscal 2001 became an
sector investment and infrastructure Resources con- independent organization is the Global
tributed by partners are approaching $200 million Development Network (GDN), which links
annually Programs aim to promote an enabling research institutes around the world, now with a
environment for private sector development and to self-governing body including representatives from
empower poor people through improved delivery of all regions as well as the Bank and UNDP, GDN is
services, for example, in the area of microfinance helping to foster world-class local knowledge for
(see box 6.3). In one example, the Digital world-class local solutions. The WBI also helps fur-
Opportunity Task Force-a Group of Eight initia- ther the Bank's knowledge agenda, working with
tive-aims at bridging the digital divide many partners to develop and deliver learning mate-
Governments, international organizations, the pri- rial, and build knowledge networks. Reliance on
vate sector, and nonprofit organizations are working local partners is an important feature of the Bank's
together to improve regulatory and network readi- learning and research efforts.
ness, connectivity and access, and human capacity
The Cities Alliance offers another example of Joint PARTNERSHIP WITH CIVIL SOCIETY
commitment, the Alliance's target of improving the
living conditions of at least 100 million slum- The Bank deepened its commitment to partnerships
dwellers by 2020 was incorporated in the recently with civil society organizations (CSOs) in fiscal 2001.
adopted U N Millennium Declaration. Diverse In particular, the Bank placed an emphasis on work-
issues have attracted a coalition of dynamic partners ing with a wider spectrum of CSOs, including
around the Clean Air Initiative. The effort in Latin international development NGOs, foundations, com-
America has come to be seen as a model in mobiliz- munity groups, professional associations, trade
104 The World Bank Annual Report 2001
Box 6.3 The Consultative Group to Assist the Poorest (CGAP)
CGAP is a partnership of the Bank and 27 other donors and
unions, and faith-based organizations. Whether to practitioners to help build a robust microfinance industry serving
protect forests and promote new vaccines through the world's poor. CGAP builds badly needed institutional capacity
global partnerships or to help deliver basic social by providing technical tools, research, training, and advisory
services through specific regional, country, or local services to microfinance institutions, donor agencies, and
initiatives, CSOs have become critical allies in governments. CGAP also invests in microfinance organizations.
designing innovative operations, implementing solu- In fiscal 2001 CGAP stepped up its poverty focus-in part
tions, and monitoring results. by researching microfinance innovations that serve the needs of
The Bank has been consulting widely with the poorest clients-and considerably expanded the scope of
CSOs for many years. In fiscal 2001, through face- its training hubs n Africa, Asia, and Europe. It also continued to
to-face consultations in each of the Bank's six opera- build its Microfinance Gateway, an Internet-based platform now
tional Regions as well as via the Internet, the Bank offering interactive online services (such as contracting with
sought the perspectives of CSOs on a forthcoming auditors) to thousands of stakeholders worldwide.
environment strategy and on revisions to its informa-
tion disclosure policy. The NGO-Bank Committee
agreed in December 2000 to create a new
Bank-Civil Society Global Forum, which would
bring together a cross-section of CSOs seeking dia-
logue and partnership with the Bank on urgent the-
matic issues The proposed forum would recognize
the growing role and expertise of civil society in . Information for Development Program provides seed grants
development and the need to engage a more diverse for innovative Information Technology applications to devel-
set of actors opment challenges http://www.lnfodev.org �
* Global Devetopment Learning Network is an interactive net-
work of multiple partners using distance-learning centers to
help countries share knowledge and bultd capacity
http://www.gdln.org 6J
* World Links for Development supports connectivity and helps
teachers in developing countries with the use of technology in
education http://www.worldbank.org/worldlinks ()
* Africa Virtual University Is a 'university without walls" using
new information and communication technologies to offer
degree and nondegree interactive learning opportunities
http://www.avu.org -to
* Development Gateway is an online information portal helping
communities, organizations, and individuals work together to
reduce poverty http://wwwdevelopmentgateway.org
* Global Knowledge Partnership brings together public,
private, and nonprofit resources to promote broad access
to knowledge and information
http://www.globalknowledge.org �
* Development Forum promotes online discussions, worldwide,
about development and poverty reduction
http://www.worldbanl.org/devforum �03
Partnerships for Development 105
Chapter 7
Summaries of Projects Approved for IBRD, IDA, and Trust Funds*
in Fiscal 2001
AGRICULTURE
The following section reports on 0 Albania IDA-$9 9 million This investment credit will increase
projects approved by the Board in rural income by addressing key constraints faced by emerging
fiscal 2001 Projects are listed smallholder farmers in agricultural production, trade, and the
according to their primary sector functioning of land markets, benefiting all farmers in thc country
classification Lending totals Total cost $12.2 million
obtained by adding up loan amounts
for projects listed correspond to sec- 0 Argentina IBRD-$5 million This learning and innovation loan
tor data classified on a loan-by-loan will identify cost-effective mechanisms to strengthen the govern-
basis rather than a loan component ment's fisheries management capacity, focusing on transparency
basis (see table I 1 on page 26 and professionalism, and accountability, while protecting vulnerable
About the World Bank on pages 127 fisheries workers
to 155). Total cost $8 5 million.
� denotes projects included in the �0 Brazil IBRD-$202 I million This investment loan aimed at
Program of Targeted Interventions expanding access to land and increasing incomes through a com-
(PTI) A project is included in the munity-based approach to land acquisition will benefit about
PTI if it has a specific mechanism 50,000 poor rural and pen-urban families.
for targeting poor people, and/or if Total cost' $436 4 million.
the proportion of poor people
among its beneficiaries is signifi- �0 Brazil IBRD-$54 3 million. This investment loan will benefit
cantly larger than the proportion of about 1. I million rural poor people by helping community associa-
poor in the total population. tions in Bahia finance, implement, and maintain approximately
3,500 productive infrastructure investments and social subpro-
t denotes adjustment operations cat- jects aimed at improving community well-being
egorized as poverty-focused An Total cost $75 million.
operation is considered poverty-
focused if it eliminates distortions �0 Brazil IBRD-$37 5 million This investment loan will benefit
that disadvantage poor people, about 480,000 rural poor people by helping community associa-
reorients public expenditures tions in Ceara finance, implement, and maintain approximately
toward them, and/or supports pro- 2,000 productive infrastructure investments and social subpro-
grams that provide safety nets or jects aimed at improving community well-being.
target specific groups of the poor Total cost $50 million
0 denotes various levels of civil �0 Brazil IBRD-$30.1 million. This investment loan will benefit
society involvement in Bank- about 110,000 rural poor people by helping community associa-
supported projects from design tions in Pernambuco finance, implement, and maintain approxi-
to monitoring and evaluation mately 1,600 productive infrastructure investments and social
of results. subprojects aimed at improving community well-being
Total cost. $40 million.
*ProJects listed in these summartes for the territories, areas, or countries of (1) East Timor, (2) The Federal Republic of Yugoslavia, (3) Kosovo, and (4)
the West Bank and Gaza are financed respectively out of (1) the Trust Fund for East Timor, (2) the Trust Fund for Yugoslavia, Federal Republic of, (3)
the Trust Fund for Kosovo, and (4) the Trust Fund for Gaza and the West Bank
Project Summaries 107
�0 Brazil IBRD-$22 5 million. This investment loan �0 Ghana IDA-$67 million. This adaptable program
will benefit about 360,000 rural poor people by credit will support good governance and decentral-
helping community associations in Piauf finance, ization, increase growth in agricultural productivity,
implement, and maintain approximately 1,200 pro- and generate employment opportunities, all in an
ductive infrastructure investments and social subpro- environmentally sustainable manner. Rural poor
jects aimed at improving community well-being people-particularly women farmers, traders, and
Total cost. $30 million food processors-will benefit.
Total cost: $123.7 million
0 Bulgaria IBRD-$50 million. This adaptable pro-
gram loan will support reform of agricultural sector �0 Honduras IDA-$8 million This investment credit
policies, resulting in improved income and employ- supports a pilot project providing 1,600 low-income,
ment generation for rural producers as well as landless, and rural families with access to credit to
improved agricultural product quality and greater purchase arable land, and encouraging sustainable
choice for consumers. agriculture and increased participation of private
Total cost $50 million. financial institutions
Total cost: $17 million.
�0 Burkina Faso IDA-$66.7 million This adaptable
program credit will help approximately two million �0 India IDA-$100.4 million. This investment credit
poor people living in rural areas develop and plan will benefit approximately 1 8 million of Karnataka
their own development programs that address their state's poor small landholders and landless people by
basic needs, generate employment opportunities, improving natural resource management through
and promote good governance. demand-driven community watershed projects.
Total cost. $114.9 million. Total cost $127.6 million
0 China IBRD-$74 million. This investment loan �0 India IDA-$ 110.1 million. This investment credit
will benefit approximately two million farmers by will expand economic and social development
improving water use and quality through water sav- opportunities, altering the dynamics of power and
ing facilities and technologies, the project will also securing the social and economic needs of women
enhance agricultural productivity on about 107,000 in particular, benefiting approximately 800,000 fami-
hectares while promoting ecological sustainability lies in 2,000 villages.
Total cost: $185.7 million. Total cost. $134.7 million.
�0 Ethiopia IDA-$2 6 million. This learning and �0 Kazakhstan IBRD-$64.5 million. This investment
innovation credit will help the government develop a loan will increase agriculture and fish production in
framework to support conservation, management, the Syr Darya basin and help secure the existence of
and sustainable use of medicinal plants for human the Northern Aral Sea, resulting in improved human
and livestock health care that will benefit the rural and ecological conditions and benefiting I million
and urban poor. people.
Total cost. $5.2 million. Total cost $85.8 million.
Ethiopia IDA-$44 million. This supplemental �0 Lao People's Democratic Republic IDA-$16.7
credit will improve food security and reduce poverty million. This investment credit will use a commu-
by supporting policy and institutional reform to help nity-driven and decentralization approach to
accelerate sustainable agricultural production and increase agricultural production, rehabilitation, and
productivity and address funding needs for fertilizer construction of rural infrastructure, thereby benefit-
imports. ing more than 50,000 rural poor people.
Total cost. $46.2 million Total cost $18.2 million.
0 Georgia IDA-$27 million. This adaptable �0 Madagascar IDA-$89 million. This investment
program credit will revitalize the irrigation and credit will help the government increase incomes,
drainage infrastructures on about 255,000 hectares, reduce poverty, and improve access to basic social
resulting in increased agricultural production and services in rural areas while preserving the natural
income and secure food supplies for approximately resource base, thereby benefiting approximately
400,000 people. 180,000 farming families
Total cost. $32 8 million Total cost $106 1 million.
108 The World Bank Annual Report 2001
�0 Morocco IBRD-$32.6 million. This adaptable �OVietnam IDA-$102.8 million. This investment
program loan will support demand-driven, integrated credit will help local authorities and communes pro-
investments in small and medium irrigation, vide or rehabilitate public infrastructure in about
improvements in community infrastructure, and 600 of the poorest communes, comprising 1 4 mil-
institutional strengthening, resulting in increased lion people, and will create opportunities for paid
rural incomes and benefiting 58,800 people. off-farm employment.
Total cost $424 million Total cost $ 123 4 million
�OPakistan IDA-$21 3 million. This investment �OYemen, Republic of IDA-$21 3 million This
credit xvill improve the water delivery system adaptable program credit will enhance efficient
through new on-farm water management practices, water use in the main spate irrigation systems, con-
and increase agricultural production and farmer tributing to increased and sustainable agricultural
income through equitable distribution of irrigation productivity and benefiting poor farmers over an
water The project's beneficiaries number 2 2 area of 90,000 hectares
million people Total cost $25.6 million
Total cost $32 1 million
ECONOMIC POLICY
O Romania IBRD-$80 million This adaptable pro-
gram loan will establish a self-sustainable network of t Benin IDA-$10 million This credit will improve
financial services to serve rural enterprises and pop- the impact of government expenditures on poverty
ulations and mitigate the negative impact of policy reduction and economic and social development by
reforms, resulting in growth and reduced poverty in developing transparent budget and administrative
rural areas. systems to manage public expenditures
Total cost $1476 million Total cost $10 million
O Rwanda IDA-$48 million. This adaptable program O Ethiopia IDA-$150 million This credit vill help
credit will help rural communities, where 92 per- the government restore key economic and social
cent of Rwanda's poor live, to benefit from the gov- services and strengthen institutional capacity, result-
ernment's program to revitalize the rural economy, ing in employment opportunities for the poor, partic-
increase rural incomes, reduce poverty, and rein- ularly in the agriculture and export sectors
force national stability Total cost $150 million.
Total cost $53 million
Ghana IDA-$49 million. This supplemental credit
Tajikistan IDA-$3 I million. This supplemental will support reforms in the public sector (including
credit will support land privatization, irrigation, and in public expenditure management and privatiza-
drainage, provide grants to family farms, and create tion) and the energy and cocoa sectors It will keep
a pilot rural savings and credit association to meet the government's macroeconomic program on track
the credit needs of its members. and help prevent further economic decline
Total cost $3.6 million. Total cost $49 million.
O Tunisia IBRD-$21.3 million. This investment loan t Kyrgyz Republic IDA-$35 million This credit
will develop, on a pilot basis, organizational structures will underpin fiscal adjustment and improve the
that represent the needs and interests of small and conditions for private sector growth It will also pro-
medium producers and improve institutional capacity vide an impetus for energy sector reform while
to deliver quality agncultural services securing social protection programs and reallocating
Total cost $42 5 million existing benefits, resulting in poverty reduction
Total cost. $35 million
O Uganda IDA-$45 million. This investment credit
will help 90 percent of the farming population adopt Lithuania IBRD-$98.5 million. This loan will
improved technology and management practices in help reduce poverty by supporting rapid and
their farming enterprises, resulting in enhanced pro- sustainable economic growth, establishing macrofi-
ductive efficiency and economic welfare, and overall nancial stability, and facilitating integration into
poverty reduction the European Union.
Total cost $107.9 million Total cost $100 4 million.
Project Summaries 109
Madagascar IDA-$30 4 million This supplemen- Rwanda IDA-$15.3 million This supplemental
tal credit will reduce the negative impact of oil price credit will help mitigate the impact of oil price
increases on the poor by reducing taxes on petroleum Increases, which have severely hurt the poor, as well
and products, thus preventing trade losses that jeop- as terms-of-trade losses, which are jeopardizing the
ardize the sustainability of ongoing reform programs sustainability of ongoing reform programs
Total cost $30 4 million Total cost $15 3 million
0 Madagascar IDA-$20 I million. This supplemen- Senegal IDA-$100 million This credit will assist
tal credit will help maintain macroeconomic stability the government in its regional integration objectives
while rehabilitating and restoring productive effi- through macroeconomic stabilization and the pro-
ciency in sectors that have been affected by adverse motion of private sector development, resulting in a
weather conditions especially damaging for poor more competitive Senegalese economy, which will
communities help to reduce poverty
Total cost $20.1 million Total cost $100 million
t Malawi IDA-$55 I million This credit will sup- Sierra Leone IDA-$10 million This supplemen-
port policy reforms aimed at deepening structural tal credit will help provide balance of payments and
reforms launched in 1995 to improve public sector budgetary support to finance the government's pro-
management, private sector growth, and the social gram for social, economic, and protective security It
safety net, thereby spurring economic growth and will also help revive the economy
reducing poverty Total cost $10 million.
Total cost $55 1 million
t Tajikistan IDA-$50 million This credit will
Malawi IDA-$3 million This credit will help the improve investment and economic growth and sup-
government implement policy reforms, especially in port earlier endorsed reforms by providing foreign
the area of financial management and public pro- exchange to maintain imports, boost international
curement, resulting in an improved budget process reserves, and provide noninflationary financing of
and public expenditure allocation. the budget while improving governance in general
Total cost $3 million Total cost $50 million
Mali IDA-$25 4 million This supplemental credit Uganda IDA-$25 4 million This supplemental
will help mitigate the impact of oil price increases, credit will help mitigate the impact of oil price
which have severely hurt the poor, as well as other increases, which have severely hurt the poor, as well
terms-of-trade losses, which are jeopardizing the as other terms-of-trade losses, which are jeopardiz-
sustainability of ongoing reform programs ing the sustainability of ongoing reform programs
Total cost $25 4 million. Total cost. $25 4 million
t Pakistan IDA-$350 million. This structural t Vietnam IDA-$250 million. This credit supports
adjustment credit will help the government reduce comprehensive structural reforms focused on higher
poverty and maintain the macroeconomic stability growth, competition, and faster poverty reduction
needed to implement already begun reforms The Support for enhanced transparency and efficient
focus will be on improving governance, the delivery investment will also result in improved manage-
of social services, and economic growth. ment of public expenditure, including pro-poor
Total cost $350 million. social spending.
Total cost $250 million
Regional IDA-$5 million This investment credit
will support the set-up of the Africa Trade Insurance Zambia IDA-$30 4 million. This supplemental
Agency, which will provide insurance and other credit will help mitigate the impact of oil price
financial instruments and services to support trade increases, which have severely hurt the poor, as well
and investments in Africa as other terms-of-trade losses, which are jeopardiz-
Total cost $5 million. ing the sustainability of ongoing reform programs
Total cost. $30.4 million
110 The World Bank Annual Report 2001
Zambia IDA-$2 I million. This supplemental O Dominican Republic IBRD-$3 4 million This
credit will help the government's reform program learning and innovation loan will test the effective-
reduce poverty by restoring macroeconomic stability, ness and sustainability of a Distance Learning
promoting diversified growth, improving governance, Center, part of a global knowledge-sharing network,
and improving the delivery of vital social services. expand access to training of public and private sector
Total cost $2 1 million decisionmakers, and improve dialogue among them
Total cost $4 5 million.
EDUCATION
Ethiopia IDA-$4 9 million This learning and
O Argentina IBRD-$57 million. This investment innovation credit will test comparative learning out-
loan will improve equity, quality, and access in sec- comes and the sustainability of different distance
ondary schools in the Buenos Aires province, bene- learning approaches, build institutional capacity;
fiting 60,000 students, 3,200 teachers, and 400 and provide training and Internet connection to civil
school administrators in socioeconomically disadvan- servants, the private sector, and nongovernmental
taged areas organization employees in Addis Ababa, increasing
Total cost $173.8 million their productivity
Total cost $7.1 million.
O Bangladesh IDA-$53 3 million This investment
credit will improve post-literacy education by estab- O Georgia IDA-$25 9 million This adaptable pro-
lishing a continuing education program benefiting gram credit will help students learn more effectively
1 6 million poor people, half of whom are women, by developing a national education curriculum,
enabling them to better support their families and establishing a system to assess results, and providing
communities training for educators and basic learning materials to
Total cost $71 6 million classrooms
Total cost $31.4 million
�0 Brazil IBRD-$69 6 million Approximately 1 8
million young people will, through this adaptable �0 Guatemala IBRD-$62 2 million Over 100,000
program loan, benefit from the government's school children, living mostly in rural indigenous communi-
improvement program aimed at enhancing perform- ties, will benefit from this loan, which will support
ance by expanding access and providing learning bilingual primary education by training 3,500 teach-
materials and effective management ers and providing textbooks and classroom libraries
Total cost $116 million Total cost $82 5 million.
�0 Brazil IBRD-$90 million Over 1 million school �0 Honduras IDA-$41 5 million This investment
children will, through this investment loan, benefit credit will benefit 300,000 poor children in
from the state of Ceara's efforts to improve both marginalized rural communities by improving
academic achievement and the learning environ- preschool and primary education, through teacher
ment, and to expand access by drop-outs and training, technical assistance to community
excluded youth. education councils, improved management, and
Total cost $150 million monitoring
Total cost $47 8 million
0 Bulgaria IBRD-$14.4 million. This adaptable pro-
gram loan will improve teaching quality and learning 0 Honduras IDA-$4 million This investment credit
opportunities, benefiting primary and secondary will raise awareness of Honduran scientific, environ-
school students, by committing more resources, it mental, and cultural knowledge, including sustain-
will also improve the quality of and access to higher able development and ethnic diversity, by developing
education an interactive learning center at the country's Copan
Total cost $18 4 million. archaeological site.
Total cost $4 million
0 Djibouti IDA-$10 million This adaptable pro-
gram credit will increase access to schooling by �0 India IDA-$74.4 million. About 1 million children
improving the basic education system, the quality of living in nine districts in India's Rajasthan state will,
education, and the management capacity of the through this investment credit, benefit from
Ministry of Education, thereby benefiting poor chil- increased availability and quality of primary education
dren and communities Total cost $87.5 million
Total cost $13.2 million
Project Summaries
0 India IDA-$64.9 million. Disadvantaged groups in 0 Yemen, Republic of IDA-$56 million This
industrially and economically underdeveloped investment credit will improve access to quality edu-
remote regions, including tribal communities and cation through increased resources and enhance
women, will, through this investment credit, benefit management capacity in education and committed
from improved quality and efficiency of polytechnic communities, benefiting approximately 170,000
education and expanded facilities rural children, 60 percent of them girls
Total cost $80.1 million Total cost $62 6 million
0 Indonesia IDA-$4 I million. This learning and 0 Zambia IDA-$25 million. The sector investment
innovation credit will develop approaches to promote and maintenance credit will strengthen the govern-
reading by students and communities, and develop a ment's technical, vocational, and entrepreneurship
strategy for community and pnmary school library training system, and improve the skills of workers to
support involving local communities, nongovernmen- serve both the formal and informal sectors of the
tal organizations, and local governments economy.
Total cost $4 5 million Total cost $94 6 million
�0 Mali IDA-$45 million This adaptable program ELECTRIC POWER AND OTHER ENERGY
credit will support the government's strategy of
increasing primary school enrollment rates from 0 Belarus IBRD-$22.6 million. This investment
about 56 percent in 2000 to 95 percent in 2010, loan will finance the rehabilitation of the heating
while improving learning at all levels. system, thermal insulation, and lighting in over 450
Total cost $541 2 million. buildings, targeting and benefiting schools, hospi-
tals, orphanages, and community homes for the eld-
�0 Panama IBRD-$35 million This investment loan erly and the disabled.
supports improvements in basic education in poor Total cost. $40.4 million.
communities, including rehabilitation of schools,
expansion of early childhood education programs, 0 Bosnia and Herzegovina IDA-$35 million This
and strengthening of management, benefiting about investment credit will assist in reconstruction of
60 percent of Panama's children transmission systems and damaged substations to
Total cost $59 million. restore pre-war infrastructure, including investments
in power distribution to provide electricity, benefit-
0 Russian Federation IBRD-$50 million This ing many poor rural areas and returning refugees
investment loan will improve efficiency and access Total cost $231 1 million
to quality education throughout the country. The
project will initiate reforms in three regions with the Georgia IDA-$27 4 million This investment
goal of replicating success at a later stage credit will improve the reliability and efficiency of
Total cost $71 1 million the electric supply, and improve financial and corpo-
rate management of the wholesale electric market,
0 Vanuatu IDA-$3 5 million This learning and benefiting electricity consumers including residen-
innovation credit will test whether Vanuatu can tial, industrial, and commercial sectors
effectively adopt innovative approaches intended to Total cost $56.6 million.
help the country move toward education for all,
defined as basic education of good quality through 0 India IBRD-$450 million. Part of an ongoing
the age of eight reform program, this project will continue to
Total cost $3.8 million improve coordination in power system operations
and promote inter-regional and interstate power
0 West Bank and Gaza Trust Fund-$7 million trading
The project aims to reinforce and develop a long- Total cost $1 3 billion.
term education strategy. It will strengthen the gov-
ernment's capacity to manage the education system 0 India IBRD-$180 million. This investment loan
more effectively through specific investments in will benefit about 60 percent of the households in
education Rajasthan by improving efficiency of the state's
Total cost: $7.6 million. power sector through support for the privatization of
the distribution firms.
Total cost $266.8 million.
112 The World Bank Annual Report 2001
0 Kosovo Trust Fund-$2 5 million. This grant Latvia IBRD-$2 2 million This investment loan
supports the provision of adequate energy services will address environmental and health concerns in
(electricity and district heating supply) during the Liepaja Region through improved solid waste
winter, and efforts toward cost recovery and institu- management and the development of a waste treat-
tion building Medium-term objectives include ment facility, utilizing modern management practices
reconstruction and sustainable development of the Total cost. $17 million.
energy sector.
Total cost $2 5 million. Mexico IBRD-$404 million. This emergency
recovery loan supports wide-ranging initiatives to
Latvia IBRD-$36.2 million. This investment loan reduce vulnerability to natural disasters and to sup-
will have economic and environmental benefits for port rapid recovery when disasters do occur, thereby
consumers, including many low-income users and reducing the human cost of natural disasters to the
pensioners. It xvill promote sound policies and poorest communities.
improve the reliability of service delivery, energy Total cost $658 4 million
conservation, and the heating system.
Total cost $140 million 0 Panama IBRD-$47 9 million This investment loan
improves land administration services covering 2.5
Mongolia IDA-$30 million This investment million hectares, enabling small-scale farmers, includ-
credit will help increase revenues of electricity dis- ing women and indigenous people, to obtain land,
tribution companies in Mongolia, through targeted resulting in greater participation in decisionmaking
investments to rehabilitate current infrastructure processes and equitable property rights
and technical assistance to help commercialize man- Total cost $72.4 million.
agement practices
Total cost: $36 2 million 0 Philippines IBRD-$4 8 million. This learning and
innovation loan supports testing of alternative
0 Poland IBRD-$15 million This investment loan approaches to land management and administration
will help improve the energy efficiency of heating and lays a foundation for implementing a long-term
systems in the Krakow region by continuing the land administration and management program, ben-
modernization program for the district heating efiting poverty reduction and economic growth
system, helping consumers decrease their heat Total cost $10 4 million
energy consumption
Total cost. $78 million �0 Sri Lanka IDA-$5 million Landholders will,
through this learning and innovation credit, benefit
0 Ukraine IBRD-$28.2 million This investment from increased land resource productivity through a
loan will increase the efficiency of the heating sys- system of land administration that is fair, efficient,
tem in Sevastopol by replacing 40 percent of the and sustainable.
heating load with decentralized, gas-fired miniboilers, Total cost $6 8 million
resulting in lower cost and benefiting the overall
population. 0 Uganda IDA-$22 million. This investment credit
Total cost $35 7 million. seeks to build the capacity of players at the national,
district, and community levels, in the private and
ENVIRONMENT public sectors, to work together to promote sound
environment and natural resources management
0 Bulgaria IBRD-$30 million. This investment loan Total cost $24.1 million.
aims to improve the coverage, completeness, accu-
racy, and responsiveness of the cadastre and real 0 West Bank and Gaza Trust Fund-$9.5 million
property registration systems, contributing to secure Approximately 200,000 people in Jenin District will,
tenure and real property, and an efficient real prop- through this operation, have access to better solid
erty market. waste management services. These include sanitary
Total cost. $37.1 million landfill construction, closures of uncontrolled
dumpsites, improved solid waste management, and
capacity building.
Total cost $14 million.
Project Summaries 113
FINANCE Jamaica IBRD-$75 million. This adjustment loan
wll] support Jamaica's bank restructuring and debt
Azerbaijan IDA-$5 4 million This technical management program, strengthening the country's
assistance credit will assist the government in imple- financial sector and benefiting consumers of finan-
menting and developing its financial sector strategy cial services
through technical assistance focused on bank Total cost $150 million
restructuring and divestiture by enhancing banking
infrastructure and supervision Kenya IDA-$25 million. This investment credit
Total cost $6 3 million. will complement the regional integration activities
of the Common Market for Southern and Eastern
�O Bangladesh IDA-$1 51 million. About 1.2 million Africa and set up a credible insurance mechanism
microentrepreneurs, especially rural poor women, against losses caused by political risks
will benefit from increased access to microlending Total cost $75 million.
through this financial intermediary credit The proj-
ect will also strengthen institutions providing loans. 0 Kosovo Trust Fund-$5 million This grant will
Total cost $181 million provide financing for small and medium enterprises
(SMEs) on market-based terms in an effort to jump-
� Bosnia and Herzegovina IDA-$20 million. This start production and economic activity in the private
investment credit will help raise incomes, develop sector and provide targeted technical assistance to
businesses, and create jobs by providing financial banks and SMEs.
services to low-income people It will also help Total cost $10 million.
microfinance institutions increase outreach to low-
income clients Macedonia, former Yugoslav Republic of
Total cost. $27 1 million IBRD-$30 3 million, IDA-$20 million. This
adjustment loan/credit will help the government
Brazil IBRD-$404 million This adjustment loan meet its commitment to improve living standards, by
will support Brazil's financial sector reform program, supporting financial and enterprise sector reform
promote economic growth, contnbute to poverty programs and facilitating private sector growth and
reduction, and avoid reversal of gains by helping job creation.
prevent financial crises. Total cost $65 3 million.
Total cost $404 million
Malawi IDA-$15 million This investment credit
Burundi IDA-$7 5 million. This investment credit wvll complement the regional integration activities of
will complement the regional integration activities of the Common Market for Southern and Eastern
the Common Market for Southern and Eastern Africa by establishing a credible insurance mecha-
Africa and set up a credible insurance mechanism nism against losses caused by political risks.
against losses caused by political nsks Total cost $45 million.
Total cost. $15 million.
Mexico IBRD-$505 1 million. This adjustment
China IBRD-$8 million This supplemental loan loan will help the banking sector withstand external
will support the completion of the China National shocks, improve lending to the private sector, and
Payments System pilot, a component of the open capital market access to micro, small, rural-
Financial Sector Technical Assistance Project cur- based, and medium-size enterprises.
rently under implementation Total cost $505 1 million.
Total cost $9 2 million
Rwanda IDA-$7 5 million This investment credit
t Eritrea IDA-$90 million This credit will help the will complement the regional integration activities of
government mitigate the consequences of the ongo- the Common Market for Southern and Eastern
ing humanitarian crisis caused by war and drought Africa and set up a credible insurance mechanism
by providing assistance to poor and displaced peo- against losses caused by political risks.
ple, rehabilitating key infrastructure, and jump-start- Total cost $15 million.
ing the economy
Total cost $90 million. 0 Sri Lanka IDA-$30.3 million This investment
credit will increase the effectiveness of the Central
Bank of Sri Lanka by providing resources and tech-
nical assistance to bolster ongoing improvements
and modernization within the central bank
Total cost $42 million
114 The World Bank Annual Report 2001
Tanzania IDA-$15 million. This investment credit �0 Bangladesh IDA-$40 million Approximately
will complement the regional integration activities of 750,000 people will, through this investment credit,
the Common Market for Southern and Eastern benefit from measures to prevent the spread of
Africa and set up a credible insurance mechanism HIV/AIDS, through education campaigns that target
against losses caused by political risks high-risk groups, and to improve government capac-
Total cost $45 million. ity to monitor the spread of HIV/AIDS
Total cost $52 6 million
Turkey IBRD-$777 8 million This adjustment
loan will help reform Turkey's financial sector �0 Barbados IBRD-$ 15 I million. This adaptable
through support for the creation of an independent program loan will improve laboratory testing, phar-
Banking Regulation and Supervision Agency that maceutical services, and training of community
will bring regulations up to international practice health-care workers and volunteers. People with
standards, as well as restructuring and pnvatization HIV/AIDS and at-risk groups will benefit from
of state-owned banks enhanced clinical treatment, patient monitoring,
Total cost $777 8 million and HIV/AIDS surveillance
Total cost: $23.6 million
Uganda IDA-$20 million This investment credit
will complement the regional integration activities of �0 Bolivia IDA-$35 million About two million
the Common Market for Southern and Eastern people will benefit from this adaptable program
Africa and set up a credible insurance mechanism credit to reduce infant mortality from 67 to 48 per
against losses caused by political risks thousand births by strengthening basic health
Total cost $60 million insurance, providing vaccines, and offering prenatal
and neonatal care
Western Africa IDA-$9 4 million. This technical Total cost. $70 million.
assistance credit will help establish an appropriate
set of regional payment mechanisms to satisfy the 0 Cameroon IDA-$50 million. This adaptable pro-
evolving needs of all market sectors in the West gram credit will assist people affected by HIV/AIDS,
African Economic and Monetary Union strengthen the capacity of local communities to
Total cost $19.3 million. address the epidemic, and support and design the
implementation of sector HIV/AIDS strategies
Yugoslavia, Federal Republic of Trust Fund-$6 Total cost $60 million
million This project will support the bank restruc-
turing strategy adopted by the new government in �0 Dominican Republic IBRD-$25 million This
May 2001 The project is part of a broader effort adaptable program loan will improve laboratory test-
by a group of key donors involved in preparing the ing, pharmaceutical servces, and training of com-
banking strategy munity health-care workers and volunteers People
Total cost $6 5 million with HIV/AIDS and at-risk groups will benefit from
enhanced clinical treatment, patient monitoring,
Zambia IDA-$15 million This investment credit and HIV/AIDS surveillance.
will complement the regional integration activities of Total cost $30 million
the Common Market for Southern and Eastern
Africa and set up a credible insurance mechanism 0 East Timor Trust Fund-$12.6 million. This grant
against losses caused by political risks supports the rehabilition and development of a finan-
Total cost $45 million cially sustainable health system, designed to respond
to the immediate needs of the population It will
HEALTH, NUTRITION, AND POPULATION also prepare the health system to meet future needs
Total cost $21 4 million
�OAzerbaijan IDA-$5 million This learning and
innovation credit will test ways to strengthen and �0 Eritrea IDA-$40 million This adaptable program
reform district primary health-care services, with credit will assist in implementing programs to
maximum benefits accruing to poorer people prevent HIV/AIDS, malaria, sexually transmitted
Total cost $5 5 million diseases, and tuberculosis, focusing on people of
productive age and providing economic, social,
institutional, and environmental benefits to society
Total cost. $50 million.
Project Summaries 115
� Eritrea IDA-$40 million This investment credit �0 Kenya IDA-$50 million This investment credit
will provide nearly a million children with health will promote HIV/AIDS awareness and prevention,
care, nutntion, social protection, and education. focusing on rural and poor women, and will also
Economic and social benefits will accrue at national, address Kenya's declining health care system by pro-
community, household, and individual levels viding resources to decentralize health-care services
Total cost $49 million and deliver quality care
Total cost: $117 3 million
O Ethiopia IDA-$59 7 million. The Ethiopian popu-
lation will, through this adaptable program credit, O Kyrgyz Republic IDA-$15 million This invest-
benefit from government prevention and awareness ment credit will improve access, quality of health
programs designed to comprehensively address the care, and training of staff, and expand primary
HIV/AIDS epidemic, thereby mitigating the social health care centers located in poor rural areas
and economic impact of the disease Total cost $19.5 million.
Total cost $63 4 million.
�OMexico IBRD-$350 million More than 13 mil-
O Gambia, The IDA-$15 million This investment lion Mexicans, including 7 5 million indigenous
credit will help develop multisectoral programs that people, will benefit from this loan that extends
stem the rapid growth of HIV/AIDS among vulnera- health-care services to people living in rural and
ble groups and the population at large, thereby miti- urban areas where these services are currently
gating the social and economic impact of the disease unavailable or inadequate
Total cost $16 2 million Total cost. $581 2 million
O Ghana IDA-$25 million. This investment credit �0 Moldova IDA-$10 million This investment credit
will reduce the spread of HIV/AIDS through aware- will improve health care and increase the quality
ness and prevention, benefiting the population at and efficiency of the health sector, resulting in bet-
large, especially women and their families, by ter access to services for the poor and improved
financing interventions going beyond the Ministry of management of tuberculosis and HIV/AIDS.
Health's mandate. Total cost $20 million.
Total cost $27.8 million
O Rwanda IDA-$7 million About 326,000 refugees
�0 India IDA-$30 million Approximately 500,000 returning in the aftermath of the 1994 genocide will
people will, through this investment credit, benefit benefit from this supplemental credit aiming to
from increased government capacity to improve strengthen and expand the health-care system. This
national leprosy programs and to enhance diagnosis project wll also enhance national reintegration and
and treatment at the state level reconciliation.
Total cost $42.2 million. Total cost: $7.4 million
O Indonesia IBRD-$63.2 million; IDA-$40 0 Samoa IDA-$5 million. Health-care stakeholders
million This loan/credit will promote effective and disadvantaged groups will benefit from this
health sector decentralization in three provinces and investment credit to strengthen the capacity to
help the Ministry of Health and Social Welfare carry implement health-care policies, legislation, and reg-
out its roles in a decentralized system, benefiting ulation, and to improve health-care facilities covered
approximately 10 million poor people by the country's health-care sector reform strategy
Total cost $895.8 million. Total cost $6.1 million.
O Kenya IDA-$50 million. This adjustable program �0 Uganda IDA-$47.5 million. This investment
credit will intensify the multisectoral response to credit will support HIV/AIDS prevention and care
HIV/AIDS, and accelerate the process of achieving programs by extending activities to all districts,
the targets elaborated in the National HIV/AIDS engaging other line ministries, empowering commu-
Strategic Plan, thereby mitigating the social and nities to fight HIV/AIDS, and enhancing civil soci-
economic impact of the disease. ety participation.
Total cost $52.4 million. Total cost. $50 million.
116 The World Bank Annual Report 2001
�0 Venezuela, Republica Bolivariana de IBRD- OIL AND GAS
$30.3 million. This sector investment loan wll ben-
efit 2.4 million poor people by providing expanded Georgia IDA-$9.6 million. This technical assis-
health-care coverage, integrated systems of ambula- tance credit will maximize economic benefit and
tory care services, better institutional organization minimize social and environmental costs by enhanc-
and management, and activities to prevent and con- ing Georgia's capacity to negotiate and implement
trol HIV/AIDS oil and gas transit agreements
Total cost. $60 3 million. Total cost $12.3 million.
MINING Kenya IDA-$72 million. This credit will help
the government restore power supplies to near
0 Algeria IBRD-$18 million. This technical assis- normal levels, critical to reversing the decline in
tance loan will help the government implement its the economy that has resulted in substantial job
market-oriented reform program, increasing private and income losses
sector participation and improving efficiency Total cost $72 million.
through legal, regulatory, and institutional
reform-oriented assistance. PRIVATE SECTOR DEVELOPMENT
Total cost $22 million
0 Bosnia and Herzegovina IDA-$19 8 million
Mozambique IDA-$18 million. This technical This technical assistance credit will accelerate priva-
assistance credit will help establish a framework con- tization, prepare the legislative and regulatory frame-
ducive to private investment and provide a better works required for divesting monopoly companies,
understanding of how different sectors and donors can improve delivery of public services, and assist in set-
improve the living standards of affected communities ting up a transparent and regulated marketplace.
Total cost $33 million Total cost $23.3 million
MULTISECTOR 0 Ethiopia IDA-$230 million This credit, which
supports an important HIV/AIDS prevention com-
Cambodia IDA-$35 million Approximately five ponent, will help approximately 620,000 war-
million people will, through this credit, benefit affected people, many infected by HIV/AIDS, to
directly or indirectly from the restoration of economic rebuild their lives and resume productive economic
and social services through the rehabilitation of eco- activities; reconstruct infrastructure, and support
nomic and social infrastructure to pre-flood levels economic stability
Total cost $40 4 million Total cost $230 million
0 Grenada IBRD-$5.1 million, IDA-$5 million. Guatemala IBRD-$20 3 million This investment
This combined loan and credit will help the govem- loan supports poverty reduction through reforms to
ment strengthen its responses to and preparedness for help small businesses increase incomes, legislative
natural disasters, reducing the likelihood of loss of life changes to promote competition and foreign invest-
and assets, and making the economy less vulnerable. ment, and employee training to strengthen product
Total cost $11 8 million. and service quality.
Total cost $33 3 million.
0 Macedonia, former Yugoslav Republic of IDA-
$5 million This learning and innovation credit will 0 Lesotho IDA-$28 6 million. This investment
develop projects to support site management and credit will help the government improve business
capacity-building activities in areas of cultural impor- infrastructure, in particular electricity and telecom-
tance, promote handicrafts and community-based munications services, including provisions for
tourism, and improve and conserve sites Internet connectivity in the future.
Total cost $6 1 million. Total cost $39.5 million.
West Bank and Gaza Trust Fund-$ 11.6 million. 0 Nicaragua IDA-$5 million This learning and
Support for the West Bank and Gaza's rapid innovation credit tests private-public partnerships
response program will alleviate hardships to poor for developing consensus and reforming business
families resulting from the economic crisis through practice, while introducing information technology-
temporary employment for unskllled laborers as well based business development services
as increased demand for materials and works for Total cost $5 9 million.
local suppliers.
Total cost $25 million
Project Summaries 117
0 Nigeria IDA-$i 14 3 million. This investment 0 Armenia IDA-$11.4 million. This investment
credit will encourage an enabling environment for credit will help develop an independent judiciary,
private sector participation and competition in sec- strengthening governance and rule of law that are
tors such as telecommunications and electric power essential for investment, strengthen the institu-
The improved and more affordable infrastructure tional capacity of the judiciary, and train judges
will promote poverty reduction and court personnel.
Total cost $225 million. Total cost $12.2 million
Rwanda IDA-$40 8 million. This investment t Armenia IDA-$50 million. This credit will sup-
credit will assist the government in establishing an port a government program aimed at facilitating pri-
enabling environment for growth and development vate sector development and job creation, and
of the private sector that will help reduce poverty deepening and consolidating reforms in social pro-
in Rwanda. tection, education, and health
Total cost. $41 2 million Total cost $50 million
0 Uganda IDA-$48.5 million. This investment 0 Bangladesh IDA-$30.6 million This investment
credit will support the government's public enter- credit will help Bangladesh make its civil justice sys-
prise sector reform and privatization program aimed tem more efficient, effective, and accountable, pri-
at restructuring and privatizing state-owned enter- marily benefiting poor women
prises to increase productivity and the quality of Total cost $43.7 million
services provided to the population
Total cost $95.3 million t� Bolivia IDA-$60 million This adjustment credit
will benefit Bolivia's poor by improving public serv-
Yugoslavia, Federal Republic of Trust Fund-$6 ices through the rescheduling of municipalities' debts
million. This grant will provide urgent assistance to and strengthening the municipal funding system.
the Republic of Serbia in an effort to jump-start pri- Total cost $80 million.
vate sector production and economic activity and
unleash the potential of the private sector. Brazil IBRD-$8 9 million. This technical assis-
Total cost $7 million tance loan ml]l assist the government of Brazil in
establishing and modernizing fiscal and financial
PUBLIC SECTOR MANAGEMENT management tools to implement Brazils fiscal reform
program, essential to poverty reduction and growth
Algeria IBRD-$23 7 million This investment Total cost $17.7 million.
loan will enhance the work of budgetary institu-
tions that favor growth, by modernizing and Brazil IBRD-$757 6 million. This programmatic
expanding the capacity of the Ministry of Finance adjustment loan supports the government's program
to discharge its core expenditure and economic of fiscal reforms covering fiscal sustainability, expen-
policy advice functions diture management, and debt management, which
Total cost $29.8 million. will improve growth and public service delivery and
reduce poverty
tOArgentina IBRD-$303 million This adjustment Total cost $757 6 million
loan supports reforms in public finance and admin-
istration, as well as improvements in health, educa- 0 Colombia IBRD-$35 5 million Taxpayers and the
tion, and social protection, benefiting millions of poor will benefit from this investment loan to
people living in the province of C6rdoba strengthen revenue collection and expenditure man-
Total cost $303 million agement in Colombia's national government, and to
increase transparency and accountability.
tOArgentina IBRD-$70.7 million This adjustment Total cost $59.2 million
loan supports reforms in public finance and admin-
istration, health, education, and private sector devel- Croatia IBRD-$5 million This learning and inno-
opment, benefiting millions in the province of vation loan will strengthen the administration and
Catamarca, the region of Argentina with the worst case management system of the bankruptcy and
social and economic indicators commercial courts, and promote investment by
Total cost $70 7 million ensuring a transparent legal process
Total cost $7 million
118 The World Bank Annual Report 2001
East Timor Trust Fund-$0.5 million This grant Kosovo Trust Fund-$3 million This grant wll cre-
will strengthen East Timor's key economic and ate and strengthen the institutions that support the
financial institutions by training relevant East commercial legal framework in Kosovo The enterprise
Timorese staff to compile, analyze, and maintain sector and business community at large will benefit
macroeconomic data through an improved business-enabling environment
Total cost $0 5 million Total cost $3 million.
0 Honduras IDA-$19 million. This technical assis- Mauritania IDA-$18 3 million This supplemen-
tance credit will improve public sector management tal credit will help mitigate the impact of oil price
by integrating transparent and accountable public increases, which have severely hurt the poor, as well
finance and human resources systems, and reform- as other terms-of-trade losses, which are jeopardiz-
ing postal services, ports, and telecommunications, ing the sustainability of ongoing reform programs.
resulting in improved services and benefiting the Total cost $18 3 million
government and public
Total cost $23 million t Mexico IBRD-$505.1 million This adjustment loan
benefits 13 million people in Mexico's largest state by
t� India IBRD-$75 million, IDA-$75 million The reducing the state government's borrowing costs and
state of Karnataka will, with support from this protecting health and education services for the poor,
loan/credit, strengthen fiscal stability and govern- as the state shifts to market-based borrowing
ment effectiveness through fiscal and administrative Total cost $505 1 million
reforms, and improve poverty and social monitoring.
Total cost $150 million. 0 Nicaragua IDA-$28 7 million This credit provides
financing and training to strengthen financial and
Jordan IBRD-$120 million This programmatic environmental management in rural municipalities,
loan provides fast-disbursing external financing to benefiting thousands of residents, especially improving
meet anticipated fiscal gaps, while supporting fun- access to government services to poor communities.
damental structural changes in the core public sec- Total cost $40 7 million
tor to strengthen institutional capacity and the
quality of public services. Niger IDA-$35 million The credit will support
Total cost $120 million. the government's medium-term development pro-
gram aimed at stimulating growth and reducing
t Kenya IDA-$ 150 million. This credit will promote poverty by maintaining financial stabilization and
broad-based growth and poverty reduction, and help improving fiscal management
improve living conditions, especially in rural areas, Total cost $35 million
by improving public delivery of social services and
encouraging income-generating activities. Niger IDA-$12.2 million This supplemental
Total cost $150 million credit will help mitigate the impact of unexpected
oil price increases, which have severely hurt
Kenya IDA-$3 2 million. This supplemental credit the poor, as well as other terms-of-trade losses,
will help improve living conditions for Kenyans by which are jeopardizing the sustainability of
promoting broad-based growth and poverty reduction ongoing reform programs
Total cost $3 2 million. Total cost $12 2 million.
Kosovo Trust Fund-$5 million This grant will t Sao Tome and Principe IDA-$7 5 million
support Kosovo's economic reform program by pro- This credit will, while safeguarding public
viding financial resources to the United Nations resources toward education, health, and poverty
Interim Administration in Kosovo. The grant will reduction programs, help the government consoli-
ensure sound budgetary policies and promote date reforms to attain macroeconomic stability
efficiency in economic production. and market competitiveness
Total cost. $5 million. Total cost $7.5 million.
0 Kosovo Trust Fund-$5 million. This grant will Sao Tome and Principe IDA-$2 5 million This
support private sector development by providing finan- credit will provide technical support, training, and
cial resources to the United Nations Interim equipment to implement policy measures currently
Administration in Kosovo The grant will contribute to proposed under the government's reform program
the establishment of a commercial legal framework to assist economic growth
Total cost $5 million Total cost $2 5 million.
Project Summaries 119
Sierra Leone IDA-$3 5 million. This credit will �0 Bosnia and Herzegovina IDA-$15 million This
strengthen government structures to support eco- investment credit will improve the quality of basic
nomic recovery and rehabilitation through processes infrastructure and services in poor communities and
for economic policy planning, formulation, and strengthen capacity to manage such services. The
implementation. It is also supportive of HIV/AIDS project will be implemented in partnership with
awareness and prevention activities. municipalities, citizens associations, and nongovern-
Total cost: $3 5 million mental organizations.
Total cost $17.6 million
Sri Lanka IDA-$2 million. Public and private
sector decisionmakers will, through this learning and t� Bosnia and Herzegovina IDA-$20 million. This
innovation credit, benefit from video-conference credit will support the development of institutional
training programs that provide them with access to and budgetary mechanisms for development and pri-
global development expertise. oritization of social policy, and help improve employ-
Total cost $3 million. ment opportunities and social safety nets for the poor.
Total cost $20 million.
t� Uganda IDA- $150 million. This credit will sup-
port the implementation of the government's poverty O Bosnia and Herzegovina IDA-$3 5 million. This
reduction strategy, which aims to secure equitable investment credit will help to provide a sustainable
use of public resources and improve governance as system of social protection that targets spending
well as access to education, healthcare, water, and more effectively on the poorest, and to create an
sanitation services. improved labor relations framework in order to stim-
Total cost. $150 million ulate employment growth.
Total cost $3 9 million
SOCIAL PROTECTION
� Bulgaria IBRD-$8 million This investment loan
�OAlbania IDA-$ 10 million. This investment credit will improve child welfare and protect children's
will support efforts to increase access to quality rights through promotion of community-based
social services by assisting the government in devel- child welfare approaches such as de-institutional-
oping, monitoring, and evaluating more effective ization, abandonment prevention, and services
social policies for street children.
Total cost $15 million Total cost $19 6 million.
�OArgentina IBRD-$5 million This learning and O Cambodia IDA-$l O million. This supplemental
innovation loan will establish the basis for commu- credit will finance a first round of flood rehabilitation
nity-driven development and management of natural subprojects and expand the effort based on a pilot by
resources on indigenous lands the government. Larger scale infrastructure is being
Total cost $5 9 million addressed by another stand-alone IDA credit
Total cost $10 million.
O Belize IBRD-$ 1.4 million. Poor people in disad-
vantaged communities are, through this supplemen- �0 Colombia IBRD-$ 150 million. Over a million of
tal loan, gaining greater access to basic social and Colombia's poorest children will benefit from this
economic infrastructure and services, including investment loan, designed to improve their health
water and sanitation, health, education, and training and education conditions through conditional cash
Total cost. $1 6 million transfers or grants to eligible families with students
under 1 7 years old.
�0 Bolivia IDA-$5 million. This learning and innova- Total cost $455 million
tion credit will support culturally based, community,
and small production initiatives that enable indige- �0 East Timor Trust Fund-$8 5 million. This grant
nous groups to increase their incomes and reduce supports the creation of democratically elected vil-
poverty in tandem with their own worldview and lage councils through which local communities
cultural perspectives would receive grants to rehabilitate basic infrastruc-
Total cost $6 6 million. ture and restart economic activities. Most of the
population will benefit, especially vulnerable groups
Total cost $24 8 million.
120 The World Bank Annual Report 2001
t Ethiopia IDA-$170.6 million. This credit will 0 Macedonia, former Yugoslav Republic of
demobilize and reintegrate 150,000 war veterans IDA-$2 5 million. This learning and innovation
into their communities and provide employment credit will increase social cohesion through social
opportunities for them. It will also benefit the integration of at-risk youth from diverse sociocultu-
reallocation of resources from defense expenditures ral backgrounds Community-based approaches will
toward poverty reduction and accelerated be tested to support adolescents and youth at risk
economic growth Total cost. $4 million.
Total cost $170.6 million.
�0 Madagascar IDA-$I10 million This investment
0 Ethiopia IDA-$5 million. Women in selected credit will strengthen social and economic services
poor districts will benefit from this learning and to poor rural communities and will build community
innovation credit, which will test methods to capacity to plan and implement subprojects.
enhance social and economic welfare of house- Total cost $137 million.
holds The credit also supports HIV/AIDS aware-
ness and prevention 0 Madagascar IDA-$18 I million This supplemen-
Total cost $8 million. tal credit will support post-cyclone reconstruction
efforts, targeting communities in areas stricken by
�0 Honduras IDA-$60 million. This credit continues the cyclones, and improve access of the poor rural
support for the Honduras Social Investment Fund, population to social and economic infrastructure
which benefits the poor by financing small-scale Total cost $24 million
social and economic infrastructure and social
assistance programs �0 Nicaragua IDA-$60 million. This investment
Total cost. $176 I million. credit will finance small-scale social and economic
infrastructure for the poor, as well as technical
�0 Indonesia IBRD-$208 9 million, IDA-$sIl 3 assistance for municipal planning, community
million. This investment loan/credit will benefit the organization, and social protection
management of participatory planning development Total cost $136 million.
in poor rural communities and villages, improve
social and economic infrastructure, and strengthen �0 Nigeria IDA-$60 million About 30 million
local institutions Nigerians living in extreme poverty will, through
Total cost $421.5 million this investment credit, benefit from improved
access to social and economic infrastructure and
0 Indonesia IDA-$48.2 million. This supplemental a decentralized approach to managing resources
credit will support third- and fourth-year funding of at the community level
the Kecamatan Development Project, benefiting the Total cost $96 4 million
management of participatory planning development
in poor rural communities and villages, improve t� Peru IBRD-$l00 million Low-income rural
social and economic infrastructure, and strengthen Peruvians will benefit from decentralized, more
local institutions closely monitored, social reform programs, support-
Total cost $48 3 million ing health, nutrition, and education and giving bcne-
ficiaries oversight authority of the programs
to Kosovo Trust Fund-$5 million. This grant will Total cost $100 million
improve the living conditions of poorer populations
seeklng to upgrade priority basic social and eco- �0 Romania IBRD-$50 million This investment loan
nomic services, enhance community solidarity and will strengthen the government's policy develop-
initiative, and reinforce citizen participation in local ment, monitoring, and evaluation capacity for
governance and development poverty reduction The project will also focus on
Total cost $10.3 million reform of the social insurance system and on labor
market adjustment
�0 Lebanon IBRD-$20 million. This investment loan Total cost $77 7 million
will raise living standards in targeted poorer commu-
nities, through investments in grassroots social and 0 Russian Federation IBRD-$80 million This
small infrastructure, income-enhancement activities, investment loan will allow municipalities in the
and special targeted programs for vulnerable groups. north to realize the benefits of economic restructur-
Total cost $30 million. ing and facilitate the implementation of sustainable
municipal policies
Total cost $95.2 million
Project Summaries 121
�0 Senegal IDA-$30 million This adaptable program 0 Azerbaijan IDA-$40 million This investment
credit will help nearly 4,000 villages benefit from credit will revive the Silk Route connecting China
interventions aimed at improving the quality of basic and Central Asia with Europe The project will mod-
social services, resulting in improved capacity to ernize the East-West Highway and include rural
manage their own development resources. road pilot contracts designed to provide solutions for
Total cost. $46.5 million rural road operations.
Total cost $48 million
�0 Tanzania IDA-$60 million. This investment credit
will help cushion the near-term social impact on Belize IBRD-$13 million This investment loan
about 13 million poor people of reforms needed for finances paving of gravel roads and improvements to
growth and poverty reduction, ensuring that social water drainage to handle floods, increasing Belize's
needs are met and building capacity to implement capacity to cope with natural disasters and improving
community programs. road safety and farmers' access to markets
Total cost. $71 8 million Total cost $18 4 million.
Turkey IBRD-$250 million. This investment loan Bosnia and Herzegovina IDA-$I1 million This
will monitor and mitigate the negative impact of investment credit will support reforms to promote
economic reforms. It includes job loss compensa- more efficient trade flows in South East Europe, pro-
tions and labor redeployment services, resulting in vide European Union-compatible customs standards,
improved productivity while supporting social safety and reduce nontariff costs, smuggling, and corruption
nets for workers Total cost $14 8 million
Total cost $355 3 million.
Cape Verde IDA-$5 million This supplemental
� 0West Bank and Gaza Trust Fund-$8 million. credit will help the government finance the rehabili-
Implemented as a comprehensive program of capacity tation of the main section of the ring road serving
building, this project will strengthen the capacity of Santiago, the country's main island, thereby facilitat-
nongovemmental organizations (NGOs) to deliver ing social and commercial use of the road
sustainable services to poor and marginalized groups, Total cost $5 million
thereby supporting the overall professional and
strategic development of the NGO sector 0 Chad IDA-$67 million This investment credit
Total cost $16 million will help the government provide year-round access
to markets and services to the population, in partic-
TELECOMMUNICATIONS ular those living in rural areas, resulting in a reduc-
tion in poverty and isolation
t Morocco IBRD-$65 million. This loan wll Total cost $91.1 million
increase the efficiency and coverage of telecommu-
nications, post, and information technology to poor, 0 China IBRD-$ 100 million. Approximately 5 9 mil-
especially rural, areas and create job opportunities lion people in poor areas will, through this loan,
through the establishment of a conducive environ- benefit from improved market access in remote
ment for enhanced competition inland areas, provision of efficient and economic
Total cost $65 million inland waterway transport, and power generation in
remote areas.
TRANSPORTATION Total cost $220.2 million.
Albania IDA-$8.1 million This investment credit, O China IBRD-$200 million About 3.3 million
part of a regional program for trade and transport people in seven counties in southern Jiang,u will
facilitation in South East Europe, will foster trade directly benefit from the provision of efficient, safe,
by promoting more efficient and less costly trade and effective highway infrastructure and improved
flows and by providing European Union-compatible access to health, education, and other social services
customs standards in low-income areas.
Total cost $12 3 million Total cost $535 7 million
122 The World Bank Annual Report 2001
O China IBRD-$ 100 million This investment loan 0 Kyrgyz Republic IDA-$22 million This invest-
will benefit 1 5 million people in the city of ment credit will provide sustainable, reliable, and
Shijiazhuang through the development of a more affordable transportation for people living in
efficient and environmentally sustainable transport Bishkek, Osh, and Jalalabad It will restore selected
system with improved facilities for all modes of roads and help develop a source of financing for
transportation. maintenance and rehabilitation
Total cost $286 2 million Total cost. $24 2 million.
0 China IBRD-$ 100 million This investment loan Lao People's Democratic Republic IDA-$25
will help improve the quality of life by developing million Citizens and road users will benefit from
the urban transportation system to facilitate future this adaptable program credit, which supports
growth of Urumqi, and support the development of improved road access and reduced transport costs,
the wider Xmnjiang Uygur Autonomous Region community delivery of maintenance services,
Total cost $270 million stronger local enterprises, and user-fee sustainable
financing of primary roads
Croatia IBRD-$13 9 million This investment Total cost $47 8 million
loan, part of a regional program fostering trade, will
promote more efficient and less costly trade flows Macedonia, former Yugoslav Republic of
across borders and provide European Union-com- IDA-$9.3 million. This investment credit, part of a
patible customs standards regional program for trade and transport facilitation
Total cost $22 1 million in South East Europe, will foster trade by promoting
more efficient and less costly trade flows and provid-
0 Honduras IDA-$66.5 million. This credit finances ing European Union-compatible customs standards
rehabilitation, reconstruction, and improvement of Total cost $14 5 million
100 kilometers of roads and 90 bndges damaged by
Hurricane Mitch, thereby benefiting the poor and Mexico IBRD-$218 million This investment
fostering market integration and economic growth loan benefits millions of Mexican motorists by sup-
Total cost $106 8 million porting improved management, maintenance, and
rehabilitation of Mexico's 49,000-kilometer net-
0 India IBRD-$589 million As part of a broader sup- work of federal highways Such support will reduce
port program for India's highway development, this transportation costs and enhance competitiveness
investment loan will help cut travel time and boost of Mexican products in international markets
safety on the New Delhi-Calcutta highway, which Total cost $309 million
passes through some of India's poorest states.
Total cost $756 million. 0 Mongolia IDA-$34 million This investment
credit will improve accessibility of isolated and
0 India IBRD-$381 million Through this invest- remote regions of Mongolia, increase transport
ment loan, approximately 48 million people will capacity and export trade, and reduce the number
benefit from road widening and strengthening as of road accidents
well as technical assistance to improve the manage- Total cost $49.5 million
ment of road resources, resulting in improved access
to health and educational services 0 Nicaragua IDA-$75 million. This investment
Total cost $533 million. credit will help repair and upgrade 450 kilometer
of rural roads and highways damaged by Hurricane
0 India IBRD-$360 million This investment loan Mitch, and improve transport links for local resi-
will benefit approximately 50 million people by dents, farmers, business people, and the population
enhancing roads, meeting social and economic at large.
needs through institutional strengthening, and sup- Total cost $87 4 million
porting a pilot road safety program
Total cost $447 million Pakistan IDA-$3 million This technical assistance
credit will help Pakistan become more competitive in
0 Kosovo Trust Fund-$5 million This grant will the international market through development of
contribute to Kosovo's reconstruction and economic integrated, modernized, and more cost-effective
development through support for road management transport systems to improve both industrial and
capacity, sustainable road maintenance financing, commercial trade and transport efficiency
emergency road maintenance activities, and local Total cost $3 5 million
contracting capacity.
Total cost $5 million
Project Summaries 123
�0 Peru IBRD-$50 million This sector investment 0 Vietnam IDA-$ 110 million. This investment
and maintenance loan will benefit rural areas by cre- credit will enhance the commercial use and safety
ating about 15,500 jobs in road-building and upgrad- of an improved transportation network, enhance
ing, which will improve access to social services access between rural areas and major trade centers,
(such as hospitals and schools), marketplaces, and and reduce road closures in flood-prone areas
income-earning activities Total cost $143.9 million.
Total cost $151 million
0 Zambia IDA-$27 million This investment credit
0 Philippines IBRD-$60 million Lower-income will help this landlocked country improve its railway
residents of Metro Manila using public transport, system's operating efficiency, reduce its cost of oper-
walking, and cycling will benefit from this project, ations, and configure its freight services and tariffs
which aims to improve transport efficiency and to meet customers' requirements and expectations.
safety and enhance the use of public and non- Total cost $31 million
motorized transport.
Total cost $97 6 million. URBAN DEVLOPMENT
0 Poland IBRD-$101 million. This investment loan 0 Bangladesh IDA-$4.7 million All residents of
will mitigate the social consequences of layoffs of Bangladesh, especially the poorest, will benefit from
some 37,000 workers resulting from commercializa- this learning and innovation credit that will test new
tion and partial privatization of the state railways, ways of controlling urban air pollution through pilot
and prepare the transport system for entry into the activities and institutional support.
European Union. Total cost $5 9 million
Total cost $335 3 million
0 Burundi IDA-$40 million. This investment credit
Poland IBRD-$38.5 million. This investment loan will support the peace process and reconstruction of
will help improve the Szczecin-Swinoujscie Seaway Burundi by helping to generate productive, labor-
and support construction of new berths and cargo- intensive employment for about 600,000 people,
handling areas within the existing port, resulting in particularly youths, returning refugees, and demobi-
reduction of cost and transit time, and benefiting lized combatants in urban areas
the national community Total cost $41 6 million
Total cost. $83 million
0 China IBRD-$105 5 million. More than three
0 Russian Federation IBRD-$60 million. This million people will benefit from this investment
investment loan will improve institutional capacity loan, which is designed to upgrade water quality in
in planning, implementing, operating, and enforcing the Huai River Basin through improved collection
traffic management measures to improve transport and treatment of wastewater.
mobility in the city Total cost: $226.9 million.
Total cost $123 2 million.
0 China IBRD-$100 million Approximately 1.5 mil-
Tunisia IBRD-$37 6 million This adaptable pro- lion people in Liaoning Province will benefit from
gram loan will support sustainable growth of public improvements in environmental quality, health, and
transport in major cities through improvements and municipal services. The project will reduce water
capacity building in public bus and rail systems as pollution-related diseases, increase wastewater col-
well as modernizing traffic management in the phos- lection, and improve access to clean water.
phate railway network. Total cost $203.6 million.
Total cost $57 million
0 Indonesia IBRD-$11 7 million, IDA-$5 8 mil-
�0Yemen, Republic of IDA-$45 million. This lion. The adaptable program loan and credit (accom-
adaptable program credit will improve rural access panied by a Global Environment Facility grant) will
in the poorest areas, creating institutional arrange- finance the institutional strengthening of local gov-
ments and technical standards, and implementing ernments, enabling them to achieve sustainable
pilot road projects in four governorates to assist environmental management and growth The project
farmers in marketing their products. will benefit approximately 4.5 million urban poor
Total cost $52 6 million. Total cost $22.8 million
124 The World Bank Annual Report 2001
0 Nicaragua IDA-$13 5 million. This credit �0 India IDA-$65 5 million About 1 5 million peo-
improves natural disaster preparedness by strength- ple, especially poor women and disadvantaged com-
ening a National System for Disaster Management, munities, will, through this investment credit,
assessing disaster risks, and applying sustainable benefit from increased access to clean water and
land-use and building standards sanitation services, resulting in greater empower-
Total cost $16.1 million ment and additional income
Total cost $89.8 million
0 Russian Federation IBRD-$85 million This
investment loan will help alleviate the financial bur- 0 Kosovo Trust Fund-$4.6 million. This grant will
den on municipal governments of supplying district restore the water supply service quality and improve
heating, through enhanced efficiency and sound service efficiency and sustainability in the Gjakove
cost-recovery policies, resulting in lower heating (Dakovica)-Rahovec (Orahovac) area, benefiting
costs to consumers approximately 200,000 people by addressing both
Total cost $127.9 million immediate needs and long-term structural issues
Total cost. $5 9 million
0 Tunisia IBRD-$ 17 million. This investment loan
will assist the government in developing sustainable 0 Macedonia, former Yugoslav Republic of
management of its cultural heritage by developing IBRD-$16 2 million, IDA-$13 I million This
cultural tourism to increase tourism revenues, investment loan/credit will improve the efficiency
Total cost $23.8 million of the water and wastewater utilities, enabling
the government to provide affordable services and
0 Vietnam IDA-$166 3 million. Approximately 1.2 providing a basis for the future development of
million people wll benefit from this investment the solid-waste sector.
credit, which will improve public health and eco- Total cost $42 4 million.
nomic development in Ho Chi Minh City by reduc-
ing pollution and flooding, and by strengthening 0 Niger IDA-$48 million This credit will help the
institutions. government's water reform program improve access to
Total cost $200 million safe drinking water and sanitation to about 355,000
people living in Niger's rural and urban areas
WATER SUPPLY AND SANITATION Total cost $79.4 million
0 Burkina Faso IDA-$70 million This investment Russian Federation IBRD-$122 5 million. This
credit will help approximately 980,000 people in investment loan will support critical investments
Ouagadougou gain access to adequate and reliable needed to improve water and wastewater systems in
water sources through the expansion and distribu- 14 cities, restoring acceptable standards of drinking
tion of tertiary water networks and improved water water and serving as a model for reforms elsewhere
subsector management Total cost $168 9 million
Total cost $205 9 million.
0 Senegal IDA-$125 million. About 800,000 peo-
0 Comoros IDA-$11.4 million. This sector invest- ple in low-income areas of Dakar and secondary
ment credit, supporting a multidonor-financed pro- cities will, through this investment credit, benefit
gram, will improve living conditions and stimulate from improvements in the delivery of water and
economic growth while protecting the environment sanitation services, resulting in overall improve-
through investments in water and road infrastruc- ments of public health
ture, benefiting 500,000 people. Total cost: $248.4 million.
Total cost. $13 3 million.
0 Ukraine IBRD-$24 3 million This investment
�0 Ecuador IBRD-$32 million. This adaptable pro- loan will support efforts to improve the delivery of
gram loan will benefit about 350,000 mostly poor water and wastewater services to the people of Lviv
people in rural areas who will gain access to basic and surrounding areas, and will help to protect and
water and sanitation services. The loan will also improve water quality.
support institutional and financial strengthening. Total cost. $40 8 million.
Total cost $50 3 million.
Project Summaries 125
Uruguay IBRD-$6 million. This technical assis- �OYemen, Republic of IDA-$20 million.
tance loan will help improve the efficiency and sus- Approximately 400,000 people will, through this
tainability of services in the areas of water supply investment credit, gain access to a more safe, reli-
and sanitation, power, natural gas, petroleum, rail- able, and convenient water supply with improved
ways and ports, telecommunications, and postal sanitation, thus improving public health and freeing
services. Expected benefits include better access, girls from water-fetching chores so that they may
lower cost, and improved quality instead attend school
Total cost $7 6 million Total cost $29 4 million
126 The World Bank Annual Report 2001
'-J~~~~~~~~~~~~~
.,~~~~~~~~A
About the World Bank
Organizational Information
Governors and Alternates 128
Executive Directors and Alternates and Their Voting Power 132
Officers 134
Of fice Locations 135
Tables
Table 8.i Country Eligibility for Borrowing from the World Bank 139
Table 8.2 World Bank Commitments, Disbursements, and Net Transfers
in Africa, Fiscal i996-200114
Table 8.3 World Bank Commitments, Disbursements, and Net Transfers
in East Asia and Pacific, Fiscal 1996-2001 141
Table 8.4 World Bank Commitments, Disbursements, and Net Transfers
in South Asia, Fiscal i996-200-1 142
Table 8.5 World Bank Commitments, Disbursements, and Net Transfers
in Europe and Central Asia, Fiscal 1996-2001 142
Tabte 8.6 World Bank Commitments, Disbursements, and Net Transfers
in Latin America and the Caribbean, Fiscal i996-2ool 143
Table 8.7 World Bank Commitments, Disbursements, and Net Transfers
in Middle East and North Africa, Fiscal i996-2001 143
Table 8.8 Operations Approved during Fiscal 2oo1, Africa 144
Table 8.9 Operations Approved during Fiscal 2ooi, East Asia and Pacific 147
Table 8.10 Operations Approved during Fiscal 2001, South Asia 148
Table 8.ii Operations Approved during Fiscal 2ooa, Europe and Central Asia 149
Table 8.12 Operations Approved during Fiscal 2ooi, Latin America and
the Caribbean 151
Table 8.13 Operations Approved during Fiscal 2001, Middte East and North Africa 153
Table 8.14 Adjustment Operations, Fiscal 200* 154
Organizational Information
Governors and Alternates
June 30, 2001
Member Governor Alternate
Afghanistan (vacant) (vacant)
Albania Anastas Angjelh Fatos Ibrahimi
Algeria Mourad Medelci Omar Bougara
Angola Ana Dias Lourenco Job Graca
Antigua and Barbuda + Lester B Bird Asot A. Michael
Argentina Domingo Felipe Cavallo Pedro Pou
Armenia Vahram Nercissiantz Karen Chshmarityan
Australia Peter Costello Kay Patterson
Austna Karl-Heinz Grasser Thomas Wieser
Azerbaijan Elman Siradjogly Rustamov (vacant)
Bahamas, The + William C. Allen Ruth R. Millar
Bahrain + Abdulla Hassan Saif Zakaria Ahmed Hejres
Bangladesh Shah A.M.S. Kibria A.K.M. Masihur Rahman
Barbados Owen S. Arthur Grantley W. Smith
Belarus + Andrei V Kobyakov Vladimir N. Shimov
Belgium Didier Reynders Guy Quaden
Belize Said W Musa Yvonne S. Hyde
Benin Bruno Amoussou Pierre John Igue
Bhutan Yeshey Zimba (vacant)
Bolivia Jose Luis Lupo Flores Bernardo Requena Blanco
Bosnia and Herzegovina Mirsad Kurtovic Dragan Covic
Botswana Baledzi Gaolathe Serwalo S.G. Tumelo
Brazil Pedro Sampaio Malan Arminio Fraga Neto
Brunei Darussalam + Haji Hassanal Bolkiah Haji Selamat Haji Munap
Bulgaria + Muravei Radev Martin Mihaylov Zaimov
Burkina Faso Jean Baptiste Compaore Patrice Nikiema
Burundi Charles Nihangaza Dieudonne Nintunze
Cambodia Keat Chhon Ouk Rabun
Cameroon Martin Okouda Daniel Njankouo Lamere
Canada Paul Martin Leonard M. Good
Cape Verde Carlos Augusto Duarte Burgo (vacant)
Central African Republic Eric Sorongope Alexis Ngomba
Chad Ahmed Lamine Ali Etienne Djimram Moyta
Chile Nicolas Eyzaguirre Mano Marcel
China Xiang Huaicheng Jin Liqun
Colombia Juan Manuel Santos Calderon Juan Carlos Echeverry
Comoros Djaffar Mmadi Moindjie Saadi
Congo, Democratic Republic of Matungulu Mbuyamu Ilankir Jean-Claude Masangu Mulongo
Congo, Republic of Mathias Dzon Clement Mierassa
Costa Rica Leonel Baruch G. Eduardo Lizano Fait
128 The World Bank Annual Report 2001
Member Governor Alternate
C6te d'lvoire Affi N'Guessan Bouabre Bohoun
Croatia Mato Crkvenac Josip Kulisic
Cyprus Takis Klerides Andreas Tryfonides
Czech Republic Jiri Rusnok Oldrich Dedek
Denmark Anita Bay Bundegaard Carsten Staur
Djibouti Yacin Elmi Bouh Nouh Omar Miguil
Dominica Ambrose George Ambrose M J Sylvester
Dominican Republic Francisco M Guerrero Prats-R Luis Manuel Piantini
Ecuador Jorge Gallardo Zavala Alexander Mejia Penafiel
Egypt, Arab Republic of Medhat Hassanein Ahmed Mahrous El-Darsh
El Salvador Juan Jose Daboub Rafael Barraza
Equatorial Guinea Fortunato Ofa Mbo Melchor Esono Edjo
Eritrea Gebreselassie Yosief Gabriel Fassil Ogbazghy
Estonia + Sum Kallas Mihkel Parnoja
Ethiopia Sufian Ahmed Girma Birru
Fiji Jone Yavala Kubuabola Solomone S Kotobalavu
Finland Sauli Niinisto Satu Hassi
France Laurent Fabius Jean-Pierre Jouvet
Gabon Casimir Oye-Mba Claude Ayo Iguendha
Gambia, The Famara L. Jatta Dodou B Jagne
Georgia Zurab Nogaideli Ivan Chkhartishvili
Germany Heidemarie Wieczorek-Zeul Caio K. Koch-Weser
Ghana Yaw Osafo-Maafo Victor Selormey
Greece Yannos Papantoniou Yiannis G Zafeiropoulos
Grenada Anthony Boatswain Swmnburne Lestrade
Guatemala Eduardo Humberto Weymann Fuentes Lizardo Arturo Sosa Lopez
Guinea Cheick Ahmadou Camara Cellou Dalein Diallo
Guinea-Bissau Purna Bia Verissimo Nancassa
Guyana Bharrat Jagdeo Saisnarine Kowlessar
Haiti Fred Joseph Fritz Jean
Honduras Gabriela Nunez de Reyes Victoria Asfura de Diaz
Hungary Mihaly Varga Peter Adamecz
Iceland HalldorAsgrimsson Geir Hilmar Haarde
India Yashwant Sinha Ajit Kumar
Indonesia Rizal Ramli Achjar lljas
Iran, Islamic Republic of Hossein Namazi Parviz Davoodi
Iraq Issam Rashid Hwaish Hashim Ali Obaid
Ireland Charlie McCreevy John Hurley
Israel David Klein Avi Ben-Bassat
Italy Antonio Fazio Mario Draghi
Jamaica + Omar Lloyd Davies Wesley George Hughes
Japan Masajuro Shiokawa Masaru Hayami
Jordan Jawad Hadid Abderrzaq Bani Ham
Kazakhstan Oraz Jandosov Zhaxybek Kulekevev
Kenya Chrysanthus Barnabas Okemo Martin Luke Oduor-Otieno
Kiribati Beniamina Tinga Bureti Williams
Korea, Republic of Nyum Jin Chol-Hwan Chon
Kuwait Yousef Hamad Al-Ebraheem Bader Meshari Al-Humaidhi
Kyrgyz Republic Temirbek Akmataliev Kubat Abduldaevich Kanimetov
Lao People's Democratic Republic Soukanh Maharat Phouphet Khamphounvong
(continued next page)
About the World Bank 129
Governors and Alternates (continued)
Member Governor Alternate
Latvia Roberts Zile Aigars Kalvitis
Lebanon Fuad A B Siniora Basil R. Fuleihan
Lesotho Kelebone Albert Maope Molelekeng E Rapolaki
Liberia Amelia A Ward M. Nathaniel Barnes
Libya Alojeli Abdel Salam Breeni Ali Ramadan Shnebsh
Lithuania + Jonas Lionginas Arvydas Kregzde
Luxembourg Luc Frieden Jean Guill
Macedonia, former
Yugoslav Republic of Nikola Gruevski Dragan Martinovski
Madagascar Pierrot J Rajaonarivelo Simon Constant Horace
Malawi Mathews A.P. Chikaonda Mapopa Chipeta
Malaysia Mahathir Mohamed Samsudin bin Hitam
Maldives Fathulla Jameel Adam Maniku
Mali Bacari Kone Toure Alimata Traore
Malta + John Dalli Joseph Scicluna
Marshall Islands Michael Konelios Smith Michael
Mauritania Mohamed Ould Nany Abdallah Ould Hormtallah
Mauritius Khushhal Chand Khushiram Philippe Ong Seng
Mexico Francisco Gil Diaz Agustin Carstens
Micronesia, Federated States of John Ehsa Sebastian L Anefal
Moldova Mihail Manoli Dumitru Ursu
Mongolia Chultem Ulaan Ochirbat Chuluunbat
Morocco Fathallah Oualalou Ahmed Lahlimi
Mozambique Adriano Afonso Maleiane Manuel Chang
Myanmar Khin Maung Them Soe Lin
Namibia + Saara Kuugongelwa Usutuaije Maamberua
Nepal Ram Sharam Mahat Bimal P. Koirala
Netherlands Gerrit Zalm Eveline Herfkens
New Zealand Michael Cullen Alan Bollard
Nicaragua Esteban Duque Estrada Francisco Aguirre Sacasa
Niger Ali Badjo Gamatie Maliki Barhouni
Nigeria Adamu Ciroma Ramsey Oubromoro Mowoe
Norway Anne Kristin Sydnes Sigrun Mogedal
Oman Ahmed Macki Mohammed bin Nasser Al-Khasibi
Pakistan Shaukat Aziz Nawid Ahsan
Palau Casmir Remengesau Lawrence Alan Goddard
Panama Norberto Delgado Duran Domingo Latorraca
Papua New Guinea Mekere Morauta Koiari Tarata
Paraguay Francisco Oviedo Britez James Spalding
Peru Javier Silva Ruete Alfredo Jahilie Awapara
Philippines Jose Isidro N. Camacho Rafael B. Buenaventura
Poland Leszek Balcerowicz Ryszard Kokoszczynskl
Portugal Joaquim Pina Moura Manuel Pedro da Cruz Baganha
Qatar + Yousef Hussain Kamal Abdullah Bin Khalid Al-Attlyah
Romania + Mihai Nicolae Tanasescu Emil Iota Ghizari
Russian Federation Viktor Khristenko German 0. Gref
Rwanda Donald Kaberuka Jean Marie Karekezi
St Kitts and Nevis Denzil Douglas Wendell E. Lawrence
St Lucia Kenny D. Anthony Bernard La Corbiniere
St Vincent and the Grenadines Ralph E. Gonsalves Laura Anthony-Browne
Samoa Misa Telefoni Retzlaff Hinauri Petana
130 The World Bank Annual Report 2001
Member Governor Alternate
San Marino + Clelio Galassi Stefano Macina
Sao Tome and Principe Adelino Santiago Castelo David Angela M da Graca Viegas Santiago
Saudi Arabia Ibrahim A. Al-Assaf Hamad Al-Sayari
Senegal Makhtar Diop Oumar Khassimou Dia
Seychelles + Jeremie Bonnelame Alain Butler-Payette
Sierra Leone Peter J. Kuyembeh Samura Kamara
Singapore + Richard Hu Tsu Tau Lim Siong Guan
Slovak Republic Ivan Miklos Marian Jusko
Slovenia Anton Rop Irena Sodin
Solomon Islands Snyder Rini Shadrach Fanega
Somalia (vacant) (vacant)
South Africa Trevor Andrew Manuel Mandisi Bongani Mpahlwa
Spain Rodrigo de Rato Figaredo Juan Costa Climent
Sri Lanka Chandrika Bandaranaika Kumaratunga PB Jayasundera
Sudan Abdul Rahim Hamdi Sabir Mohamed Hassan
Suriname + Humphrey S Hildenberg Stanley B. Ramsaran
Swaziland Guduza Musa D Fakudze
Sweden Bosse Ringholm Maj-lnger Klingvall
Switzerland Pascal Couchepin Joseph Deiss
Syrian Arab Republic Mohammed Khaled Al-Mahayni Mohamad Bittar
Tajilkstan Safarali Najmuddinov Sharif Rakhimov
Tanzania Nassoro W Malocho Peter J Ngumbullu
Thailand Somkid Jatusripitak Somchainuk Engtrakul
Togo Simfeitcheou Pre Kossi Assimaidou
Tonga Siosiua T.T. 'Utoikamanu 'Aisake V Eke
Trinidad and Tobago Gerald Yetming Leroy Mayers
Tunisia Fethi Merdassi Abdelhamid Triki
Turkey Faik Oztrak Aydin Karaoz
Turkmenistan + Seitbay Kandymov Serdar Bayriev
Uganda Gerald M. Ssendaula C M Kassami
Ukraine + Yriy Yekhanurov Vasyl Rohovyi
United Arab Emirates Hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash
United Kingdom Clare Short Gordon Brown
United States Paul H. O'Neill Alan P. Larson
Uruguay + Alberto Bension Ariel Davrieux
Uzbekistan Rustam S. Azimov (vacant)
Vanuatu Joe Bomal Carlo Jeffery Wilfred
Venezuela, Republica
Bolivariana de + Jorge Antonio Giordani Cordero Jose Alejandro Rojas Ramirez
Vietnam Le Duc Thuy Duong Thu Huong
Yemen, Republic of Ahmed Mohamed Sofan Anwar Rizq Al-Harazi
Yugoslavia, Federal Republic of Miroljub Labus Dragisa Pesic
Zambia James Mwalimu Mtonga Stella M Chibanda
Zimbabwe Simba Herbert Stanley Makoni Leonard Ladislas Tsumba
+ Not a member of IDA
About the World Bank 131
Organizational Information
Executive Directors and Alternates and their Voting Power
June 30, 2001
IBRD IDA
Executive Director Alternate Casting votes of Total Percent Total Percent
votes of votes of
total total
Appointed
Jan Piercya (vacant) United States 265,219 16 45 1,865,737 14 46
Yuzo Harada Masanori Yoshida Japan 127,250 7 89 1,414,996 10 96
Helmut Schaffer Eckhardt Biskup Germany 72,649 4 51 913,474 7 08
Jean-Claude Milleronc Emmanuel Moulin France 69,647 4 32 561,248 4 35
Stephen Pickford Rosemary B Stevenson United Kingdom 69,647 4 32 641,302 4 97
Elected
Philippe M Peeters Emin Dedcoglu Austria, Belarus,b Belgium, 77,669 4 82 580,627 4 50
(Belgium) (Turkey) Czech Republic, Hungary, Kazakhstan,
Luxembourg, Slovak Republic, Slovema,
Turkey
Moises Pineda Jose H Machillanda Costa Rica, El Salvador, Guatemala, 72,786 4 51 285,452 2 21
(Mexico) (R B de Venezuela) Honduras, Mexico, Nicaragua, Spain,
Venezuela (Repiiblica Bolivariana de)b
Pieter Stek Tamara Solyanyk Armenia, Bosnia and Hcrzegovina, 72,208 4 48 471,373 3 65
(Netherlands) (Ukraine) Bulgana,b Croatia, Cyprus, Georgia, Israel,
Macedonia (former Yugoslav Republic of),
Moldova, Netherlands, Romania,b
Ukraineb
Terrie O'Leary Sharon Weber Antigua and Barbuda,b The Bahamas,b 62,217 3 86 551,237 4 27
(Canada) (Jamaica) Barbados, Belize, Canada, Dominica,
Grenada, Guyana, Ireland, Jamaica,b
St Kitts and Nevis, St Lucia, St Vincent
and the Grenadines
Jaime Ruiz Luis Antonio Balduino Brazil, Colombia, Dominican Republic, 58,124 3 61 374,936 2 91
(Colombia) (Brazil) Ecuador, Haiti, Panama, Philippines,
Suriname,b Trinidad and Tobago
Franco Passacantando Helena Cordeiro Albania, Greece, Italy, Malta,b Portugal, 55,938 3 47 507,328 3 93
(Italy) (Portugal) San Mannob
Neil F Hyden Lewis D Holdend Australia, Cambodia, Kiribati, Korea 55,800 3 46 386,903 3 00
(Australia) (New Zealand) (Republic of), Marshall Islands,
Micronesia (Federated States of),
Mongolia, New Zealand, Palau, Papua
New Guinea, Samoa, Solomon Islands,
Vanuatu
Balmiki Prasad Singh Mahbub Kabir Bangladesh, Bhutan, India, Sri Lanka 54,945 3 41 546,804 4 24
(India) (Bangladesh)
Ahmed Sadoudi Inaamul Haque Algeria, Ghana, Iran (Islamic Republic of), 54,052 3 35 253,710 1 97
(Algeria) (Pakistan) Iraq, Morocco, Pakistan, Tunisia
132 The World Bank Annual Report 2001
IBRD IDA
Executive Director Alternate Casting votes of Total Percent Total Percent
votes of votes of
total total
Finn Jonck Anna M Brandte Denmark, Estoma,b Finland, Iceland, Latvia, 54,039 3 35 637,035 4 94
(Finland) (Sweden) Lithuania,b Norway, Sweden
Girmai Abraham Richard H. Kaijuka Angola, Botswana, Burundi, Eritrea, 53,962 3 35 475,933 3 69
(Eritrea) (Uganda) The Gambia, Kenya, Lesotho, Liberia,
Malawi, Mozambique, Namibia,b Nigeria,
Seychelles,b Sierra Leone, South Africa,
Sudan, Swaziland, Tanzania, Uganda,
Zambia, Zimbabwe
Matthias Meyer Jerzy Hylewski Azerbaijan, Kyrgyz Republic, Poland, 46,096 2 86 453,949 3 52
(Switzerland) (Poland) Switzerland, Tajikistan, Turkmenistan,b
Uzbekistan
Zhu Guangyao Chen Huan China 45,049 2 79 247,345 1 92
(China) (China)
YahyaAbdulla Abdulrahman M Saudi Arabia 45,045 2 79 458,383 3 55
M Alyahya Almofadhi
(Saudi Arabia) (Saudi Arabia)
Andrei Bugrov Eugene Miagkov Russian Federation 45,045 2 79 35,887 0 28
(Russian Federation) (Russian Federation)
Khalid M Al-Saad Mohamed Kamel Amr Bahrain,b Egypt (Arab Republic of), Jordan, 43,984 2 73 283,971 2 20
(Kuwait) (Arab Republic of Egypt) Kuwait, Lebanon, Libya, Maldives, Oman,
Qatar,b Syrian Arab Republic, United Arab
Emirates, Yemen (Republic of)
Abdul Aziz Mohd. Yaacob Nguyen Doan Hung Brunei Darussalam,b Fiji, Indonesia, 41,096 2 55 345,372 2 68
(Malaysia) (Vietnam) Lao People's Democratic Republic, Malaysia,
Myanmar, Nepal, Singapore,b Thailand,
Tonga, Vietnam
Mario Soto-Platero Roberto Garcia-Lopez Argentina, Bolivia, Chile, Paraguay 37,499 2 33 237,131 1 84
(Uruguay) (Argentina) Peru, Uruguayb
BassaryToure Paulo F Comes Benin, Burkina Faso, Cameroon, Cape 32,252 2 00 374,898 2 91
(Mali) (Guinea-Bissau) Verde, Central African Republic, Chad,
Comoros, Congo (Democratic Republic of),
Congo (Republic of), C6te d'lvoire, Djibouti,
Equatorial Guinea, Gabon, Guinea,
Guinea-Bissau, Madagascar, Mali,
Mauritania, Mauritius, Niger, Rwanda,
S5o Tom6 and Principe, Senegal, Togo
In addition to the executive directors and alternates shown in the foregoing list, the following also served after October 31, 2000
Executive director End of period of service Alternate End of period of service
Zhu Xian February 28, 2001 Pilar Alvarez December 15, 2000
(China) (R B de Venezuela)
Note Afghanistan (550 votes in IBRD and 13,557 votes in IDA), Ethiopia (1,228 votes in IBRD and 23,053 votes in IDA), and Somalia (802 votes in IBRD and
10,506 votes in IDA) did not participate in the 2000 Regular Election of Executive Directors The Federal Republic of Yugoslavia (1,847 votes in IBRD and 25,109
votes in IDA) became a member after that election
a Carole Brookins (United States) will serve as Executive Director effective August 20, 2001
b Member of the IBRD only
c Resigned effective August 1, 2001, to be succeeded by Pierre Duquesne (France) effective August 20, 2001
d Resigned effective July 6, 2001, to be succeeded by Dong-Soo Chin (Republic of Korea) effective July 23, 2001
e Resigned effective July 31, 2001, to be succeeded by Inkeri Hirvensalo (Finland) effective August 23, 2001
About the World Bank 133
Organizational Information
Officers
June 30, 2001
President James D. Wolfensohn
Managing Director Sven Sandstrom
Managing Director Shengman Zhang
Managing Director Jeffrey A Goldstein
Managing Director Mamphela Ramphele
Managing Director Peter Woicke
Senior Vice President and Chief Financial Officer Gary Perlin
Senior Vice President, Development Economics, and Chief Economist Nicholas Stern
Vice President and Controller Fayezul Choudhury
Vice President, Financial Sector Manuel Conthe
Vice President, Latin America and the Caribbean David de Ferranti
Vice President and Network Head, Human Development Eduardo Doryan
Vice President and Corporate Secretary Cheikh Ibrahima Fall
Vice President and Network Head, Environmentally
and Socially Sustainable Development Ian Johnson
Vice President, External Affairs and U N Affairs Mats Karlsson
Vice President, East Asia and Pacific Jemal-ud-din Kassum
Vice President, Resource Mobilization and Cofinancing Motoo Kusakabe
Vice President, Europe and Central Asia Johannes Lmin
Vice President, Africa Callisto Madavo
Vice President and Chief Information Officer Mohamed Muhsin
Vice President, South Asia Mieko Nishimizu
Vice President, External Affairs, Europe Jean-Francois Rischard
Vice President, Development Policy Josef Ritzen
Vice President and Network Head, Operations Policy and Country Services Joanne Salop
Vice President, Middle East and North Africa Jean-Louis Sarbib
Vice President, Private Sector Development and Infrastructure
and Network Head, Finance, Private Sector and Infrastructure Nemat Shafik
Vice President, Human Resources Katherine Sierra
Vice President, Strategy and Resource Management Anil Sood
Vice President and General Counsel Ko-Yung Tung
Vice President, World Bank Institute Vinod Thomas
Director-General, Operations Evaluation Robert Picciotto
Vice President and Network Head, Poverty Reduction
and Economic Management Vacant
Vice President and Treasurer Vacant
134 The World Bank Annual Report 2001
Organizational Information
Office Locations
June 30, 2001
Headquarters: *Argentina: *Brazil:
1818 H Street N.W, Banco Mundial Banco Mundial
Washington, D C 20433, U S A Edificio Bouchard, Bouchard 547, Setor Comercial Norte, Quadra 02,
3er Piso, 1106 Buenos Aires, Lote A - Edificio, Corporate
New York Office: Argentina Financial Center,
The World Bank Conjuntos 303/304, 603, Brasilia,
Office of the Special Representative Armenia: DF 70712-900, Brazil
to the U N The World Bank
809 United Nations Plaza, Suite 900 Republic Square Brazil:
New York, NY 10017, U S A 9 V Sargsyan Street Banco Mundial
Yerevan 375010, Armenia Rua Oswaldo Cruz, No 01
Europe: Ediffcio Beira Mar Trade Center
Banque Mondiale *Australia: Sala 1710, 60125-150 - Fortaleza,
66 avenue d'1ena The World Bank Ceara, Brazil
75116 Paris, France Level 18, CML Building
14 Martin Place Brazil:
Brussels: Sydney NSW 2000, Australia Banco Mundial
Banque Mondiale Edificio SUDENE
10 rue Montoyer Azerbaijan: Sala IS-108, Cidade Universitaria,
B-1000 Brussels, Belgium The World Bank 50670-900 Recife, PE, Brazil
91-95 Mirza Mansur Street
Frankfurt: Icheri Sheher, Baku, 370004, Bulgaria:
The World Bank Azerbaijan The World Bank
Bockenheimer Landstrasse 109 World Trade Center - Interpred,
60325 Frankfurt am Main, Germany *Bangladesh: 36 Dragan Tsankov Blvd
The World Bank Sofia 1057, Bulgaria
Geneva: 3A, Paribagh, Dhaka 1000,
The World Bank Bangladesh Burkina Faso:
3, chemin Louis Dunant, C P 66, (postal address G PO Box 97) Banque Mondiale
CH-1211 Geneva 10, Switzerland Immeuble BICIA, 3eme etage,
Belarus: Ouagadougou, Burkina Faso
London: The World Bank (postal address B P 622)
The World Bank 2A Gertsen Street, 2nd Floor
New Zealand House, 15th Floor, Minsk, 220030, Republic of Belarus Burundi:
Haymarket, London SWI Y4TE, Banque Mondiale
England Benin: avenue du 18 septembre
Banque Mondiale Bujumbura, Burundi
Tokyo: Zone R1sidentielle de la Radio, (postal address B P. 2637)
The World Bank Cotonou, Bemnm
10th Floor, Fukoku Seimei Building, (postal address B P 03-2112) Cambodia:
2-2-2 Uchisaiwai-cho, Chiyoda-ku, Bv1 Norod Bola
Tokyo I100-0011 Japan Bolivia: II13 Norodom Boulevard
Banco Mundial Phnom Penh, Cambodia
Albania: Edificio BISA (postal address P.O. Box 877)
The World Bank piSO 9, Av. 16 de Julio 1628
Deshmoret e 4 Shkurtit, No 34 La Paz, Bolivia Cameroon:
Tirana, Albania (postal address Casilla 8692) Banque Mondiale
rue 1 792, No 186
Angola: Bosnia and Herzegovina: Yaounde, Cameroon
Banco Mundial The World Bank (postal address. B.P 1128)
Rua Alfredo Troni (Edificio BPC), Hamdije Kresevljakovica 19/5
No. 15, 14 Andar (14th Floor), 71000 Sarajevo, Central African Republic:
Luanda, Angola Bosnia and Herzegovina Banque Mondiale
(postal address Caixa Postal 1331) rue des Missions, BanguLI,
(oRpublique Centrafricaine
(postal address B P. 819)
* Country Directors are located in the country offices
About the World Bank 135
Office Locations (continued)
Chad: *Egypt, Arab Republic of: Haiti:
Banque Mondiale The World Bank Banque Mondiale
avenue Charles de Gaulle et avenue World Trade Center 18 rue Emeric (Montana)
du Commandant Lamy, Quartier 1191 Corniche El-Nil, 15th Floor, Port-au-Prince, Haiti
Bololo, N'Djamena, Chad Boulaq, Cairo,
(postal address B P 146) Arab Republic of Egypt, 11221 Honduras:
Banco Mundial
*China: Eritrea: Centro Financiero BANEXPO
The World Bank The World Bank 4t� Piso, Boulevard San Juan Bosco,
9th Floor, Building A, Fuhua 15/17, Tsegai Adig Street, Zone 03 Colonia Payaquf
Mansion, No. 8, Chaoyangmen Subzone 01, Asmara, Eritrea Apartado Postal 3591,
Beidajie, Dongcheng District, Tegucigalpa, Honduras
Beijing 100027, China Estonia:
(postal address P.O Box 100600- The World Bank Hong Kong:
9086) Suur-Ameerika 1, 13th Floor IBRD/IFC Joint Office
Tallinn EE0100, Estonia Suite 1107 Asia Pacific Finance
Colombia: Tower, 3 Garden Road, Hong Kong
Banco Mundial Ethiopia:
Carrera 7 No 71-21, Torre A, piso 16, The World Bank *Hungary:
Edificio Fiduagraria, Apartado 10229, Africa Avenue, Bole Road The World Bank
Bogota, Colombia Addis Ababa, Ethiopia Bajcsy-Zsilinszky ut 42-46, 5th floor,
(postal address P.O Box 5515) 1054 Budapest, Hungary
*Cote d'lvoire:
Banque Mondiale Gabon: *India:
Corner of Booker Washington and Banque Mondiale The World Bank
Jacques Aka Streets Quartier Palais de Justice 70 Lodi Estate
Cocody, Abidjan 01, Cote d'lvoire Section RG, Parcelle No 222 New Delhi 110 003, India
(postal address B.P. 1850) Libreville, Gabon (postal address PO Box 416, New
Delhi 110001)
Croatia: Georgia:
The World Bank The World Bank *Indonesia:
Trg J.F Kennedya 6b/111 18A Chonkadze Street The World Bank
HR-10000 Zagreb, Croatia Tbilisi, 380007 Georgia Jakarta Stock Exchange Building,
Tower 2, 12th Floor, Sudirman
Dominican Republic: *Ghana: Central Business District (SCBD),
Banco Mundial The World Bank JI. Jendral Sudirman Kav 52-53,
Calle Virgilio Dfaz Ordofiez #36, esq. 69 Dr Isert Road, North Ridge Jakarta 12190, Indonesia
Gustavo Mejia Ricart Residential Area, Accra, Ghana (postal address PO. Box 324/JKT)
Edificio Mezzo Tempo, (postal address PO. Box M 27)
Suite 401, 4ta Planta, Santo Jamaica:
Domingo, R D. Guatemala: The World Bank
Banco Mundial Island Life Center
East Timor: 13 Calle 3-40, Zona 10 6 St Lucia Avenue, Third Floor,
The World Bank Edificio Atlantis, Piso 14 Kingston 5, Jamaica
Rua Dos Direitos Humanos Guatemala City, Guatemala
Dili, East Timor Kazakhstan:
(postal address World Bank Mission, Guinea: The World Bank Almaty Office
East Timor, GPO Box 3548, Darwin, Banque Mondiale 41 Kazybek bi Street, 4th Floor,
NT 0801, Australia) Immeuble de l'Archevehe 480100 Almaty,
Face Baie des Anges, Conakry, Republic of Kazakhstan
Ecuador: Guinme
Banco Mundial (postal address B.P. 1420) Kazakhstan:
Calle 12 de Octubre 1830 y Cordero, The World Bank Astana Office,
World Trade Center Guyana: Samai Microdistrit, 2nd Floor
Torre B, Piso 13, Quito, Ecuador The World Bank Astana Towers, 473000 Astana,
c/o UNDP Building Republic of Kazakhstan
42 Brickdam and UN Place,
Stabroek, Georgetown, Guyana
* Country Directors are located in the country offices
136 The World Bank Annual Report 2001
*Kenya: Malawi: Niger:
The World Bank The World Bank Banque Mondiale
Hill Park Building, Upper Hill, Development House, Capital City, 42 rue des Dallols, Niamey, Niger
Nairobi, Kenya Lilongwe 3, Malawi (postal address. B. P. 12402)
(postal address P 0 Box 30577) (postal address PO Box 30557)
*Nigeria:
Kosovo: Mali: The World Bank
The World Bank Banque Mondiale Plot 433 Yakubu Gowon Crescent,
Rruga Tirana No 35 Immeuble SOGEFIH Opposite ECOWAS Secretariat,
Pristina, Kosovo, Centre Commercial Rue 321, Asokoro District, Abuja, Nigeria
Federal Republic of Yugoslavia Quartier du Fleuve, Bamako, Mali (postal address. P.O. Box 2826,
(postal address B. P 1864) Garki)
Kyrgyz Republic:
The World Bank Mauritania: *Pakistan:
214 Moskovskaya Str Banque Mondiale The World Bank
Bishkek 720010, Kyrgyz Republic Villa No. 30, Lot A, Quartier 20 A Shahrah-e-jamhuriyat
Socogim, Nouakchott, Mauritanie Ramna 5, G-5/1, Islamabad, Pakistan
Lao People's Democratic Republic: (postal address B P 667) (postal address. P.O. Box 1025)
The World Bank
Pathou Xay-Nehru Road *Mexico: Papua New Guinea:
Vientiane, Lao PDR Banco Mundial The World Bank
Insurgentes Sur 1605, Piso 24, c/o Islander Travelodge Hotel
Latvia: San Jose Insurgentes, 03900 Mexico, Suite 102, PO Box 1877
The World Bank D. F., Mexico Port Moresby, National Capital
8 Smilsu Street, 5th Floor District, Papua New Guinea
Riga, LV 1162, Latvia Moldova:
The World Bank Paraguay:
Lebanon: Sciusev str., 76/6, MD 2012, Banco Mundial
The World Bank Chisinau, Republic of Moldova Av. Mariscal Lopez y Sarabi
UN-House, 6th Floor Casa de las Naciones Unidas,
Riad El Solh Square Mongolia: Asunci6n, Paraguay
Beirut, Lebanon The World Bank
(postal address PO Box 11-8577) 11-A Peace Avenue *Peru:
Ulaanbaatar 210648, Mongolia Banco Mundial
Lesotho: Avenida Alvarez Calder6n 185
The World Bank Morocco: Piso 7, San Isidro, Lima, Peru
UN House, United Nations Road, The World Bank
Maseru, Lesotho 7, rue Larbi Ben Abdellah *Philippines:
Rabat-Souissl, Morocco The World Bank
Lithuania: 23/F, The Taipan Place Building,
The World Bank Mozambique: Emerald Avenue, Ortigas Center,
Vilniaus Str 28, 2600 Vilnius, The World Bank Pasig City, Metro Manila, Philippines
Lithuania Ave. Kenneth Kaunda
1224, Maputo, Mozambique *Poland:
Macedonia, former Yugoslav (postal address: Caixa Postal 4053) The World Bank,
Republic of: 53 Emilii Plater St.
The World Bank *Nepal: Warsaw Financial Center, 9th Floor,
34 Leninova Street, 91000 Skopje, The World Bank 00-113 Warsaw, Poland
FYR Macedonia Yak & Yeti Hotel Complex,
Lal Durbar, Kathmandu, Nepal Romania:
*Madagascar: (postal address P.O. Box 798) The World Bank
Banque Mondlale Boulevard Dacia 83, Sector 2,
Rue Andriamifidy L. Nicaragua: Bucharest, Romania
Razafimanantsoa, Anosy (pres du Banco Mundial
Mimst&re des Affaires Etrangeres), De los Semaforos de la *Russian Federation:
Antananarivo 101, Madagascar Centroamerica, 400 mts. abajo, The World Bank
(postal address B. P. 4140) Segundo Piso Edificio SYSCOM, Sadovaya-Kudrinskaya No. 3,
Managua, Nicaragua Moscow 123242, Russian Federation
* Country Directors are located in the country offices
About the World Bank 137
Office Locations (continued)
Rwanda: Tajikistan: Uzbekistan:
The World Bank The World Bank, The World Bank
Boulevard de la R1volunon Rudaki Avenue 105, Dushanbe, 43 Academician Suleimanova Street,
SORAS Building, Kigali, Rwanda Tajikistan Tashkent, Uzbekistan 700017
(postal address P.O. Box 609)
*Tanzania: Venezuela, Republica Bolivariana de:
Saudi Arabia: The World Bank Banco Mundial
The World Bank 50 Mirambo Street Av Francisco de Miranda
UNDP Building, Diplomatic Quarter Dar-es-Salaam, Tanzania con Av del Parque
(beside American Embassy) (postal address PO Box 2054) Torre Edicampo, Piso 9,
Riyadh, Saudi Arabia Campo Alegre, Caracas, Rep6blica
(postal address P.O. Box 5900, *Thailand: Bolivanana de Venezuela
Riyadh 11432, Saudi Arabia) The World Bank
Diethelm Towers, Tower A *Vietnam:
*Senegal: 17th Floor, 93/1 Wireless Road, The World Bank
Banque Mondiale Bangkok 10330, Thailand 63 Ly Thai To Street
3, place de l'ind6pendance, Hanoi, Vietnam
Immeuble SDIH 5Sme etage Togo:
Dakar, Senegal Banque Mondiale *West Bank and Gaza:
(postal address B P 3296) 169 Boulevard du 13 janvier, The World Bank
Immeuble BTCI, 8eme etage PO Box 54842
Sierra Leone: Lome, Togo Jerusalem
The World Bank (postal address Boite Postale 3915)
Regent House, 14 Wilberforce Street, Yemen, Republic of:
Freetown, Sierra Leone *Turkey: The World Bank
The World Bank Hadda Street No 40
Singapore: Ugur Mumcu Caddesi 88 off Damascus Road, Sana'a
The World Bank Kat 2, 06700 Gaziosmanpasa, Republic of Yemen
#15-08, MAS Building Ankara, Turkey (postal address. PO Box 18152)
10 Shenton Way, Singapore, 079117
Turkmenistan: Yugoslavia, Federal Republic of:
*South Africa: The World Bank The World Bank - Liaison Office,
The World Bank United Nations Building Bulevar Kralja Aleksandra
Pro Equity Court Building Atabaev Street, 40, Ashgabat 744000, Belgrade 86-90
First Floor, 1250 Pretorius Street, Turkmenistan Federal Republic of Yugoslavia
Hatfield, Pretoria,
Republic of South Africa Uganda: Zambia:
(postal address. PO Box 12629, The World Bank The World Bank
Hatfield 0028, Pretoria) I Lumumba Avenue Anglo American Building,
Rwenzori House, 4th Floor 74 Independence Avenue,
*Sri Lanka: Kampala, Uganda 3rd Floor, Lusaka, Zambia 10101
The World Bank (postal address. P.O. Box 4463) (postal address P0 Box 35410)
Ist Floor, DFCC Building
73/5, Galle Road, Colombo 3, Ukraine: Zimbabwe:
Sri Lanka The World Bank The World Bank
(postal address PO Box 1761) 2 Lysenko Street Old Lonrho Building
Kyiv 01034, Ukraine 88 Nelson Mandela Avenue
Harare, Zimbabwe
(postal address PO, Box 2960)
* Country Directors are located in the country offices
138 The World Bank Annual Report 2001
Tables
Table 8.1 Country Eligibility for Borrowing from the World Bank
(as of July 1, 2001)
Income group 2000 GNI Income group 2000 GNI
and country per capita8 and country per capitaa
Countries eligible for IBRD funds only
Per capita income over $5,225 Micronesia, Federated States of 2,110
Slovenia 10,070 Dominican Republic 2,100
Antigua and Barbuda 9,190 Peru 2,100
Korea, Republic of 8,910 Tunisia 2,090
Argentina 7,440 Colombia 2,080
Seychelles 7,310 Namibia 2,050
St KVtts and Nevis 6,660 Thailand 2,010
Uruguay 6,090 El Salvador 1,990
Marshall Islands 1,970
Per capita income $2,996-$5,225 Fiji 1,830
Mexico 5,080 Macedonia, FYR of 1,710
Trinidad and Tobago 4,980 Guatemala 1,690
Czech Republic 4,920 Jordan 1,680
Hungary 4,740 Romania 1,670
Chile 4,600 Russian Federation 1,660
Croatia 4,510 Iran, Islamic Republic of 1,630
Venezuela, Republica Bolivariana de 4,310 Algeria 1,590
Poland 4,200 Bulgaria 1,510
Costa Rica 3,960 Egypt, Arab Republic of 1,490
Mauritius 3,800 Paraguay 1,450
Lebanon 3,750 Suriname n a
Slovak Republic 3,700
Brazil 3,570 Per capita income $755-$1,445
Estonia 3,410 Swaziland 1,290
Malaysia 3,380 Ecuador 1,210
Botswana 3,300 Kazakhstan 1,190
Panama 3,260 Morocco 1,180
Gabon 3,180 Philippines 1,040
Turkey 3,090 Syrian Arab Republicd 990
South Africa 3,020 China 840
Palau n.a. Turkmenistan 840
Papua New Guinea 760
Per capita income $1,446-$2,995 Equatorial Guinea n a.
Belarus 2,990 Iraqd n a
Belize 2,940
Lithuania 2,900 Per capita income less than $755
Latvia 2,860 Ukraine 700
Jamaica 2,440
Countries eligible for a blend of IBRD and IDA fundsb
Per capita income $2,996-$5,225 Per capita income $755-$1,445
St Luciac 4,070 Bolivia 1,000
Grenadac 3,520 Bosnia and Herzegovina n.a.
Dominicac 3,260 Yugoslavia, Federal Republic of d n a.
Per capita income $1,446-$2,995
St Vincent and the Grenadinesc 2,690
(continued next page)
About the World Bank 139
Table 8.i Country Eligibility for Borrowing from the World Bank (continued)
Income group 2000 GNI Income group 2000 GNI
and country per capitaa and country per capita
Countries eligible for a blend of IBRD and IDA fundsb (continued)
Per capita income less than $755 Zimbabwed 480
Uzbekistan 630 Pakistan 470
Azerbaijan 610 India 460
Indonesia 570 Nigeria 260
Countries eligible for IDA funds onlyb
Per capita income $1,446-$2,995 Kenya 360
Tongac 1,660 Ghana 350
Maldivesc 1,460 Gambia, The 330
Samoac 1,460 Sudand 320
Uganda 310
Per capita income $755-$1,445 Togo 300
Cape Verdec 1,330 Zambia 300
VanuatuC 1,140 Central African Republic 290
Kiribatic 950 Lao PDR 290
Sri Lanka 860 SaoTomT and Principe 290
Honduras 850 Tanzania 280
Djibouti 840 Kyrgyz Republic 270
Guyana 770 Cambodia 260
Albania n.a. Madagascar 260
Angola 240
Per capita income less than $755 Mali 240
Cote d'lvoired 660 Burkina Faso 230
Congo, Republic of d 630 Rwanda 230
Solomon Islands 630 Nepal 220
Georgia 590 Mozambique 210
Cameroon 570 Chad 200
Bhutan 550 Guinea-Bissau 180
Lesotho 540 Niger 180
Armenia 520 Eritrea 170
Haiti 510 Malawi 170
Senegal 500 Tajikistan 170
Guinea 450 Sierra Leone 130
Moldova 400 Burundi 110
Mongolia 390 Ethiopia 100
Vietnam 390 Afghanistand n.a
Bangladesh 380 Congo, Democratic Republic ofd n.a
Benin 380 Liberiad n a
Comoros 380 Myanmard n a
Yemen, Republic of 380 Nicaragua n.a
Mauritania 370 Somaliad n a.
n a Precise figures not available
a World Bank Atlas methodology, per capita GNI (gross national income, formerly GNP) figures are in 2000 U S dollars
b Countries are eligible for IDA on the basis of (a) relative poverty and (b) lack of creditworthiness The operational cutoff for IDA eligibility for fiscal 2002 is a
2000 GNI per capita of $885, using Atlas methodology To receive IDA resources, countries also meet tests of performance In exceptional circumstances, IDA
extends eligibility temporarily to countries that are above the operational cutoff and are undertaking major adjustment efforts but are not creditworthy for IBRD
lending An exception has been made for small island economies (see footnote c)
c During the IDA-12 period (fiscal 2000-02), an exception to the GNI per capita operational cutoff for IDA eligibility ($885 for fiscal 2002) has been made for
some small island economies, which otherwise would have little or no access to Bank Group assistance because they lack creditworthiness For such countries,
IDA funding is considered case by case for the financing of projects and adjustment programs designed to strengthen creditworthiness
d. Loans/credits in nonaccrual status as of July 1, 2001
140 The World Bank Annual Report 2001
Tables
Table 8.2 World Bank Commitments, Disbursements, and Net Transfers
in Africa, Fiscal 1996-2001
(millions of dollars)
Ethiopia Uganda Senegal Total region
Item 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a 2001 1996S20O1a
IBRD and IDA commitments 667 1,592 358 1,022 255 847 3,370 14,903
Undisbursed balance 835 835 527 527 541 541 7,900 7,900
Gross disbursements 270 789 167 969 116 499 2,290 14,505
Repaymentsb 22 105 16 240 20 101 1,042 6,852
Net disbursements 249 683 151 729 96 398 1,249 7,653
Interest and charges 13 71 15 85 10 61 410 3,394
Net transfer 236 612 136 645 86 336 839 4,259
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
b During fiscal 2001. the Bank delivered approximately $132 million in debt service relief under the enhanced HIPC Initiative to 19 countries in the Africa
Region, including $11 9 million to Senegal and $9 7 million to Uganda
Table 8.3 World Bank Commitments, Disbursements, and Net Transfers
in East Asia and Pacific, Fiscal 1996-2001
(millions of dollars)
China Vietnam Indonesia Total region
Item 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a
IBRD and IDA commitments 788 12,958 629 2,470 493 5,977 2,134 34,787
Undisbursed balance 10,041 10,041 1,419 1,419 2,807 2,807 17,367 17,367
Gross disbursements 1,820 12,115 160 1,042 684 6,347 3,330 32,573
Repayments 716 2,940 2 7 812 5,831 2,336 15,031
Net disbursements 1,105 9,175 158 1,035 -128 517 994 17,542
Interest and charges 815 3,910 8 29 949 5,022 2,828 14,191
Net transfer 289 5,264 150 1,006 -1,077 -4,505 -1,834 3,351
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
About the World Bank 141
Tables
Table 8.4 World Bank Commitments, Disbursements, and Net Transfers
in South Asia, Fiscal 1996-2001
(millions of dollars)
India Bangladesh Pakistan Total region
Item 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a
IBRD and IDA commitments 2,555 11,160 280 2,675 374 2,167 3,247 16,726
Undisbursed balance 8,046 8,046 1,497 1,497 984 984 11,070 11,070
Gross disbursements 1,644 9,027 298 1,994 647 3,408 2,691 15,253
Repayments 1,109 7,133 95 417 290 1,604 1,538 9,342
Net disbursements 535 1,894 204 1,577 357 1,804 1,153 5,911
Interest and charges 539 4,237 49 280 200 1,324 809 5,977
Net transfer -4 -2,342 155 1,297 157 481 344 -66
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
Table 8.5 World Bank Commitments, Disbursements, and Net Transfers
in Europe and Central Asia, Fiscal 1996-2001
(millions of dollars)
Turkey Russian Bulgaria Total region
Federation
Item 2001 1996-2o01a 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a
IBRD and IDA commitments 1,028 4,260 398 7,578 102 815 2,693 25,646
Undisbursed balance 2,418 2,418 3,261 3,261 239 239 10,926 10,926
Gross disbursements 820 3,225 455 6,955 47 668 2,710 22,341
Repayments 455 4,010 307 633 29 114 1,360 9,312
Net disbursements 365 -785 148 6,323 18 555 1,350 13,029
Interest and charges 257 1,659 425 1,643 51 229 1,354 7,172
Net transfer 108 -2,444 -277 4,680 -32 326 -4 5,857
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
142 The World Bank Annual Report 2001
Tables
Table 8.6 World Bank Commitments, Disbursements, and Net Transfers
in Latin America and the Caribbean, Fiscal 1996-2001
(millions of dollars)
Mexico Brazil Colombia Total region
Item 2001 1996-2001' 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a
IBRD and IDA commitments 1,982 6,880 1,677 7,968 185 1,908 5,300 31,410
Undisbursed balance 2,456 2,456 3,123 3,123 480 480 12,384 12,384
Gross disbursements 1,433 7,517 1,723 9,228 264 1,490 5,466 32,823
Repayments 1,309 8,026 827 6,176 225 1,861 3,856 24,474
Net disbursements 124 -509 897 3,052 39 -371 1,610 8,349
Interest and charges 889 5,179 505 2,605 125 829 2,907 15,055
Net transfer -765 -5,688 391 447 -87 -1,200 -1,297 -6,706
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
Table 8.7 World Bank Commitments, Disbursements, and Net Transfers
in Middle East and North Africa, Fiscal 1996-2001
(millions of dollars)
Yemen, Tunisia Iran, Total region
Republic of Islamic
Republic of
Item 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a 2001 1996-2001a
IBRD and IDA commitments 142 830 76 1,034 0 232 508 6,506
Undisbursed balance 368 368 516 516 232 232 3,511 3,511
Gross disbursements 81 619 175 1,008 103 559 789 6,612
Repayments 16 68 146 1,040 70 269 837 6,300
Net disbursements 65 551 28 -32 33 289 -48 312
Interest and charges 9 45 77 585 43 183 610 3,939
Net transfer 56 506 -48 -617 -10 106 -657 -3,627
Note The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2000-01)
a Disbursements from the IDA Special Fund are included in fiscal 1996
About the World Bank 143
Tables
Table 8.8 Operations Approved during Fiscal 2001, Africa
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Africa
Regional Trade Facilitation Project April 3, 2001 2011/2036 3 9 5 0
Benin
Public Expenditure Reform Adjustment Credit March 22, 2001 2011/2041 7.8 10 0
Burkina Faso
Ouagadougou Water Supply Project March 21, 2001 2011/2040 55 0 70 0
Community-Based Rural Development Project November 30, 2000 2011/2040 50 5 66 7
Burundi
Regional Trade Facilitation Project April 3, 2001 2011/2041 5.8 7 5
Public Works and Employment Creation Project January 23, 2001 2011/2040 31 3 40 0
Cameroon
Structural Adjustment Credit III-IDA Reflows June 15, 2001 2008/2038 6.2 7 8
Multi-sectoral HIV/AIDS Project January 12, 2001 2011/2040 39 2 50 0
Cape Verde
Supplemental Credit for Transport and
Infrastructure Project January 30, 2001 2003/2033 4 0 5 0
Chad
National Transport Program Support Project October 26, 2000 2011/2040 50 8 67 0
Comoros
Infrastructure, Water and Environment Project March 1, 2001 2011/2040 8 8 11 4
Eritrea
HIV/AIDS, Malaria, Sexually Transmitted
Diseases and Tuberculosis Control Project December 18, 2000 2011/2040 31 4 40.0
Emergency Reconstruction Credit November 22, 2000 2011/2040 69 3 90 0
Integrated Early Childhood Development Project July 27, 2000 2010/2040 29.0 40 0
Ethiopia
Supplemental Credit for National
Fertilizer Sector Project June 14, 2001 2011/2041 34 7 44.0
Economic Rehabilitation Support Credit June 5, 2001 2011/2041 116.6 1500
Distance Learning Project April 17, 2001 2011/2040 3 9 4 9
Conservation and Sustainable Use
of Medicinal Plants Project February 13, 2001 2011/2041 2 0 2 6
Emergency Recovery Project December 5, 2000 2011/2040 180 2 230.0
Emergency Demobilization and
Reintegration Project December 5, 2000 2011/2040 133 7 170 6
Multi-Sectoral HIV/AIDS Project September 12, 2000 2011/2040 45.2 59 7
Women Development Initiatives Project July 27, 2000 2010/2040 3.8 5 0
Gambia, The
HIV/AIDS Rapid Response Project January 16, 2001 2011/2040 11 8 15 0
Ghana
AIDS Response Project (GARFUND) December 28, 2000 2011/2040 19.6 25 0
Supplemental Credit for Economic
Reform Support Operation 11 Program September 7, 2000 2011/2040 37 0 49 0
Agricultural Services Subsector
Investment Project August 1, 2000 2010/2040 50 9 67.0
144 The World Bank Annual Report 2001
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Kenya
Regional Trade Facilitation Project April 3, 2001 2011/2041 19 4 25 0
Supplemental Credit for Economic
and Public Sector Reform January 24, 2001 2010/2040 2 5 3 2
Decentrahzed Reproductive Health
and HIV/AIDS Project December 12, 2000 2011/2040 38 3 50 0
Emergency Power Supply Project October 26, 2000 2011/2040 55.1 72 0
AIDS Disaster Response Project September 12, 2000 2011/2040 37 9 50 0
Economic and Public Sector Reform Credit August 1, 2000 2010/2040 113 1 150 0
Lesotho
Utilities Sector Reform Project March 29, 2001 2011/2040 22 2 28 6
Madagascar
Rural Development Support Project June 19, 2001 2011/2041 69 2 89 0
Community Development Project April 19, 2001 2011/2040 85 2 110 0
Supplemental Credit for
Structural Adjustment 11 December 22, 2000 2011/2040 23 5 30 4
Supplemental Credit for
Structural Adjustment III July 20, 2000 2009/2039 15 2 20 1
Supplemental Credit for Social Fund Ill
Project for Cyclone Rehabilitation Activities July 20, 2000 2010/2040 13 7 18 1
Malawi
Regional Trade Facilitation Project April 3, 2001 2011/2041 11 6 15 0
Fiscal Restructuring and Deregulation
Program Credit Ill - IDA Reflow December 22, 2000 2011/2040 0 4 0 5
Fiscal Restructuring and Deregulation
Program Technical Assistance III Project December 21, 2000 2011/2040 24 30
Fiscal Restructuring and Deregulation
Program Credit Ill December 21, 2000 2011/2040 43 1 55 1
Mali
Supplemental Credit for Economic Management December 22, 2000 2011/2040 19 6 25 4
Education Sector Expenditure Program December 20, 2000 2011/2040 35 3 45 0
Mauritania
Supplemental Credit for Fiscal Reform
Support Operation December 22, 2000 2010/2039 14.1 18 3
Mozambique
Mineral Resources Management
Capacity Building Project March 29, 2001 2011/2040 13.8 180
Niger
WVater Sector Project May 3, 2001 2011/2040 37.3 48 0
Supplemental Credit for Public
Finance Recovery Adjustment December 22, 2000 2011/2040 9.4 12 2
Public Finance Adjustment Recovery Credit September 14, 2000 2011/2040 26 5 35 0
Nigeria
Privatization Support Project June 14, 2001 2011/2036 90 2 114 3
Community Based Poverty Reduction Project December 20, 2000 2011/2035 47 0 60 0
(continued next page)
About the World Bank 145
Table 8.8 Operations Approved During Fiscal 2001, Africa (continued)
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Rwanda
Competitiveness and Enterprise
Development Project April 19, 2001 2011/2041 31.8 40.8
Regional Trade Facilitation Project April 3, 2001 2011/2041 5.8 7 5
Rural Sector Support Project March 29, 2001 2011/2040 37 2 48.0
Supplemental Credit for Economic Recovery December 22, 2000 2009/2038 11.8 15 3
Supplemental Credit for Health
and Population Project December 21, 2000 2011/2040 5 5 7.0
Sao Tome and Principe
Public Resource Management Credit November 2, 2000 2011/2040 5 8 7 5
Public Resource Management
Technical Assistance 11 Project November 2, 2000 2011/2040 2.0 2.5
Senegal
Long Term Water Sector Project March 6, 2001 2011/2041 98 0 125 0
Social Development Fund Program December 20, 2000 2011/2040 23.6 30 0
Trade Reform and Competitiveness Credit September 14, 2000 2011/2040 75 7 100.0
Sierra Leone
Public Sector Management Support 11 Project February 15, 2001 2011/2040 2 7 3.5
Supplemental Credit for Economic
Rehabilitation and Recovery December 14, 2000 2010/2040 7 9 10 0
Tanzania
Regional Trade Facilitation Project April 3, 2001 2011/2041 11 6 15 0
Programmatic Structural Adjustment I
IDA-Reflow January 29, 2001 2010/2040 0 6 0 8
Social Action Fund Project August 22, 2000 2010/2040 45 5 60.0
Uganda
Poverty Reduction Support Credit May 31, 2001 2011/2041 116.2 150 0
Regional Trade Facilitation Project April 3, 2001 2011/2041 15 5 20.0
Environmental Management
and Capacity Building 11 Project March 20, 2001 2011/2041 17.1 22 0
National Agncultural Advisory Services Project February 15, 2001 2011/2040 35.3 45 0
HIV/AIDS Control Project January 18, 2001 2011/2040 37 3 47.5
Supplemental Credit for Structural
Adjustment III December 22, 2000 2007/2037 19 6 25.4
Privatization and Utility Sector Reform Project August 24, 2000 2010/2040 36.2 48 5
Western Africa
BCEAO Regional Payment Systems Project October 19, 2000 2011/2040 7.2 9.4
Zambia
Technical Education Vocational and
Entrepreneurship Training Development
Program Support Project June 14, 2001 2011/2041 19.5 25.0
Regional Trade Facilitation Project Apnl 3, 2001 2011/2041 11.6 15.0
Supplemental Credit for Fiscal Sustainability December 22, 2000 2010/2040 23.5 30 4
Supplemental Credit for Fiscal Sustainability November 20, 2000 2010/2040 1 6 2.1
Railways Restructuring Project November 16, 2000 2011/2040 21.0 27 0
Total 2,605.5 3,369.6
146 The World Bank Annual Report 2001
Tables
Table 8.9 Operations Approved during Fiscal 2001, East Asia and Pacific
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Cambodia
Supplemental Credit for Flood Rehabilitation
Social Fund 11 Project June 19, 2001 2011/2041 7.9 10 0
Flood Emergency Rehabilitation Project March 13, 2001 2011/2040 27 1 35 0
China
Inland Waterways III Project June 21, 2001 2007/2021 n.a. 100 0
Liao River Basin Project June 19, 2001 2007/2021 n a 100 0
Jiangxi Highway 11 Project June 5, 2001 2007/2021 n a 200 0
Shijiazhuang Urban Transport Project March 27, 2001 2006/2021 n a 100 0
Huai River Pollution Control Project March 22, 2001 2006/2021 n a 105 5
Water Conservation Project December 19, 2000 2006/2021 n a 74 0
Urumqi Urban Transport Improvement Project December 19, 2000 2006/2021 n a 100 0
Supplemental Loan for Financial
Sector Technical Assistance Project August 1, 2000 2005/2020 n a 8 0
Indonesia
Provincial Health 11 Projecta June 26, 2001 2006/2021 n a 63 2
Provincial Health 11 Projecta June 26, 2001 2011/2036 31 4 40 0
Kecamatan Development 11 Projecta June 26, 2001 2006/2021 n a 208 9
Kecamatan Development 11 Projecta June 26, 2001 2011/2036 87 5 111 3
Western Java Environmental Management Projecta June 12, 2001 2011/2036 4 6 5 8
Western Java Environmental Management Projecta June 12, 2001 2006/2021 n a 11 7
Library Development Project June 8, 2001 2011/2036 3 3 4 1
Supplemental Credit for Kecamatan
Development Project December 21, 2000 2011/2035 37 8 48 2
Lao People's Democratic Republic
Agricultural Development Project May 29, 2001 2011/2041 13.2 16 7
Road Maintenance Project March 27, 2001 2011/2041 19 2 25 0
Mongolia
Energy Project May 3, 2001 2011/2041 23 4 30 0
Transport Development Project March 22, 2001 2011/2040 26 4 34 0
Philippines
Metro Manila Urban Transport Integration Project June 21, 2001 2009/2021 n a 60 0
Land Administration and Management Project September 26, 2000 2009/2020 n a. 4 8
Samoa
Health Sector Management Project September 14, 2000 2010/2040 3 8 5 0
Vanatu
Education 11 Project June 29, 2001 2011/2041 2 7 3 5
Vietnam
Community-Based Rural Infrastructure Project June 26, 2001 2011/2041 81 9 102 8
Poverty Reduction Support Credit June 5, 2001 2011/2041 197 2 250 0
Ho Chi Minh City Environmental Sanitation
(Nhieu Loc-Thi Nghe Basin) Project March 20, 2001 2011/2041 127 5 166 3
Mekong Transport and Flood Protection Project December 20, 2000 2011/2040 86 2 110 0
Total 781.1 2,133.8
n a Not applicable (IBRD loan)
Note This table does not include operations funded by special financing of $21 6 million provided by the Trust Fund for East Timor
a "Blend" loan/credit
About the World Bank 147
Tables
Table 8.1o Operations Approved during Fiscal 2001, South Asia
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Bangladesh
Legal and Judicial Capacity Building Project March 29, 2001 2011/2041 23 6 30 6
Post-Literacy and Continuing Education
for Human Development Project February 27, 2001 2011/2041 41 8 53 3
PovertyAlleviation Microfinance 11 Project January 18, 2001 2011/2041 1183 151 0
HIV/AIDS Prevention Project December 12, 2000 2011/2040 30.8 40 0
Air Quality Management Project July 25, 2000 2011/2040 3 6 4 7
India
Rajasthan Second District Primary
Education Project June 21, 2001 2011/2036 58.5 74.4
Karnataka Watershed Development Project June 21, 2001 2011/2036 79.0 100 4
Karnataka Economic Restructuring
Loan/Credita June 21, 2001 2007/2021 n.a 75 0
Karnataka Economic Restructuring
Loan/Credita June 21, 2001 2011/2036 58 9 75 0
Grand Trunk Road Improvement Project June 21, 2001 2007/2021 n a. 589.0
Karnataka State Highways
Improvement Project May 24, 2001 2007/2021 n a 360 0
Powergnd System Development II Project May 3, 2001 2006/2021 n a 450 0
National Leprosy Elimination 11 Project March 27, 2001 2011/2036 23 3 30.0
Rajasthan Power Sector Restructuring Project January 18, 2001 2006/2021 n a 180.0
Madhya Pradesh District Poverty
Initiatives Project November 7, 2000 2011/2035 84 2 110 1
Kerala Rural Water Supply and
Environmental Sanitation Project November 7, 2000 2011/2035 50 1 65 5
Technician Education III Project September 7, 2000 2011/2035 48.9 64 9
Gujarat State Highway Project September 5, 2000 2006/2020 n a 381 0
Pakistan
Structural Adjustment Credit June 12, 2001 2011/2036 276.1 350 0
North West Frontier Province
On-Farm Water Management Project June 12, 2001 2011/2035 16 6 21 3
A Trade and Transport Facilitation Project April 24, 2001 2011/2036 2.3 3.0
Sri Lanka
Central Bank Strengthening Project June 19, 2001 2011/2041 23 9 30 3
Land Titling and Related Services Project March 27, 2001 2011/2040 3.9 5 0
Distance Learning Project March 5, 2001 2011/2040 16 2 0
Total 945.4 3,246.5
n a Not applicable (IBRD loan)
a "Blend" loan/credit
148 The World Bank Annual Report 2001
Tables
Table 8.11 Operations Approved during Fiscal 2001, Europe and
Central Asia
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Albania
Agricultural Services Project June 14, 2001 2011/2041 7 8 9 9
Social Services Delivery Project June 7, 2001 2011/2041 7 9 10 0
Trade and Transport Facilitation
in Southeast Europe Project November 2, 2000 2010/2040 6 2 8 1
Armenia
Structural Adjustment Credit IV May 22, 2001 2011/2040 38 4 50 0
Judicial Reform Project September 14, 2000 2010/2040 8.6 11.4
Azerbaijan
Highway Project June 12, 2001 2011/2036 31 5 40 0
Health Reform Project June 12, 2001 2011/2036 4.0 5 0
Financial Sector Technical Assistance June 12, 2001 2011/2036 4.3 5 4
Belarus
Social Infrastructure Retrofitting Project June 5, 2001 */2018 n a. 22 6
Bosnia and Herzegovina
Privatization Technical Assistance Project June 26, 2001 2011/2036 15 6 19 8
Local Initiatives Microfinance 11 Project June 26, 2001 2011/2036 15 8 20 0
Electric Power Reconstruction IlI Project June 26, 2001 2011/2036 26 4 35 0
Community Development Project June 26, 2001 2011/2036 11 8 15 0
Trade and Transport Facilitation
in Southeast Europe Project February 22, 2001 2011/2035 8 7 11 0
Social Sector Adjustment Credit February 15, 2001 2011/2035 15.3 20.0
Social Sector Technical Assistance Credit December 7, 2000 2011/2035 2 8 3 5
Bulgaria
Agriculture Sector Adjustment Loan 11 June 28, 2001 2006/2021 n a 50 0
Registration and Cadastre Project June 21, 2001 2006/2021 n.a. 30 0
Child Welfare Reform Project March 6, 2001 2006/2021 n a 8 0
Education Modernization Project September 5, 2000 2005/2020 n a 14 4
Croatia
Court and Bankruptcy Administration Project June 15, 2001 2006/2016 n a 5 0
Trade and Transport Facilitation
in Southeast Europe Project October 26, 2000 2006/2015 n a. 13 9
Georgia
Irrigation and Drainage
Community Development Project June 28, 2001 2011/2041 21 3 27 0
Electricity Market Support Project May 3, 2001 2011/2040 21 1 27 4
Education System Realignment
Strengthening Program March 20, 2001 2011/2040 19 9 25 9
Energy Transit Institution Building Project March 13, 2001 2011/2040 7 6 9 6
Kazakhstan
Syr Darya Control and Northern Aral
Sea Phase I Project June 5, 2001 2007/2021 n.a 64 5
Kyrgyz Republic
Health Sector Reform 11 Project May 8, 2001 2011/2041 11 7 15 0
Consolidation Structural Adjustment Credit September 14, 2000 2010/2040 26 1 35 0
Urban Transport Project August 22, 2000 2010/2040 16 7 22 0
About the World Bank 149
Table 8.1i Operations Approved During Fiscal 2001, Europe and Central Asia (continued)
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Latvia
Liepaja Region Solid Waste Management Project September 14, 2000 2005/2017 n.a. 2.2
Riga District Heating Rehabilitation Project August 1, 2000 2005/2017 n a. 36.2
Lithuania
Structural Adjustment Loan 11 July 25, 2000 2011/2011 n.a. 98 5
Macedonia, former Yugoslav Republic of
Water Utility Improvement Projecta June 26, 2001 2007/2018 n.a. 16.2
Water Utility Improvement Projecta June 26, 2001 2011/2036 10.3 13 1
Child and Youth Development Project June 26, 2001 2011/2036 2 0 2 5
Community Development and Culture Project June 21, 2001 2011/2036 4.0 5.0
Financial and Enterprise Sector
Adjustment Loan/Credit Ila December 14, 2000 2009/2017 n.a 30.3
Financial and Enterprise Sector
Adjustment Loan/Credit Ila December 14, 2000 2010/2035 15.2 20 0
Trade and Transport Facilitation
in Southeast Europe Project July 25, 2000 2010/2035 7 0 9.3
Moldova
Health Investment Fund Project August 22, 2000 2010/2040 7 6 10 0
Poland
Krakow Energy Efficiency Project June 7, 2001 / n.a. 15 0
Railway Restructunng Project May 29, 2001 2006/2016 n.a. 101 0
Szczecin-Swinoujscie Seaway and
Port Modernization Project December 12, 2000 2006/2016 n a 38.5
Romania
Social Sector Development Project June 19, 2001 2005/2018 n.a. 50 0
Rural Finance Project March 29, 2001 2006/2018 n.a. 80 0
Russian Federation
Northern Restructunng Project June 7, 2001 2007/2018 n a 80 0
Education Reform Project May 24, 2001 2006/2018 n.a. 50 0
Municipal Heating Project March 27, 2001 2006/2018 n.a. 85 0
Moscow Urban Transport Project February 6, 2001 2006/2017 n.a. 60 0
Municipal Water and Wastewater Project December 21, 2000 2006/2017 n a. 122.5
Tajikistan
Structural Adjustment Credit 11 June 26, 2001 2011/2041 39 4 50 0
Supplemental Credit for
Farm Privatization Support Project February 22, 2001 2009/2039 2 4 3 1
Turkey
Financial Sector Adjustment Loan December 21, 2000 2006/2017 n a 777.8
Privatization Social Support Project December 21, 2000 2006/2017 n.a. 250.0
Ukraine
Lviv Water and Wastewater Project June 5, 2001 2006/2021 n a 24.3
Sevastopol Heat Supply Improvement Project March 22, 2001 2006/2021 n a 28.2
Total 417.4 2,693.1
n a Not applicable (IBRD loan)
* Not available
Note This table does not include operations funded by special financing of $35 1 million provided by the Trust Fund for Kosovo, and $12 million provided by the Trust
Fund for the Federal Republic of Yugoslavia
a "Blend" loan/credit
150 The World Bank Annual Report 2001
Tables
Table 8.12 Operations Approved during Fiscal 2001, Latin America and
the Caribbean
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Argentina
Buenos Aires Secondary Education II Project December 7, 2000 2006/2015 n a 57 0
C6rdoba Provincial Reform Loan November 22, 2000 2006/2015 n.a. 303 0
Sustainable Fisheries Management Project September 18, 2000 2005/2015 n a 5.0
Indigenous Community Development September 18, 2000 2005/2015 n a 5 0
Provincial Reform Adjustment Loan - Catamarca September 14, 2000 2006/2015 n a 707
Barbados
Multi-Country HIV/AIDS
Prevention and Control Program June 28, 2001 */2017 n a 15 1
Belize
Supplemental Loan for Social Investment Fund April 3, 2001 2006/2018 n a 1 4
Roads and Municipal Drainage Project September 5, 2000 2006/2017 n a 13 0
Bolivia
Health Sector Reform Project June 28, 2001 2011/2041 27 6 35 0
Programmatic Structural
Adjustment Credit for Decentralization May 22, 2001 2011/2041 46 7 60 0
Indigenous Peoples Development Project February 14, 2001 2011/2040 4 0 5 0
Brazil
Rural Poverty Reduction Project - Piauf June 26, 2001 2007/2016 n a 22 5
Rural Poverty Reduction Project - Pernambuco June 26, 2001 2007/2016 n a 30 1
Rural Poverty Reduction Project - Ceara June 26, 2001 2007/2016 n a 37 5
Rural Poverty Reduction Project - Bahia June 26, 2001 2006/2016 n a 54 3
Programmatic Financial Sector Adjustment Loan I May 24, 2001 2006/2013 n a 404 0
Fiscal and Financial Management
Technical Assistance Loan May 24, 2001 2007/2016 n a. 8 9
Programmatic Fiscal Reform
Structural Adjustment Loan January 18, 2001 2006/2013 n a 757 6
Ceara Basic Education Quality Improvement Project December 20, 2000 2006/2016 n a 90 0
Bahia Education December 20, 2000 2006/2016 n.a 69 6
Land-Based Poverty Alleviation I Project November 30, 2000 */2014 n a 202.1
Colombia
Human Capital Protection Project March 29, 2001 2006/2018 n a 150 0
Public Financial Management 11 Project March 22, 2001 2006/2018 n.a. 35 5
Dominican Republic
Multi-Country HIV/AIDS
Prevention and Control Program June 28, 2001 2006/2018 n a 25 0
Distance Learning Project September 22, 2000 2006/2017 n a 3.4
Ecuador
Rural and Small Towns Water Supply
and Sanitation Project (PRAGUAS) October 17, 2000 2008/2020 n.a 32 0
Grenada
Emergency Recovery and Disaster
Management Projecta October 17, 2000 2006/2015 n a 5.1
Emergency Recovery and Disaster
Management Projecta October 17, 2000 2011/2035 3 8 5 0
(continued next page)
About the World Bank 151
Table 8.12 Operations Approved During Fiscal 2001, Latin America and the Caribbean (continued)
Principal amount (millions)
Country/project name Date of approval Maturities SDR US$
Guatemala
Universalization of Basic Education Project May 22, 2001 2006/2018 n a 62 2
Competitiveness Project December 14, 2000 2006/2017 n a. 20 3
Honduras
Supplemental Credit for Interactive
Environmental Learning and
Science Promotion Project - PROFUTURO May 31, 2001 2011/2041 3.2 4.0
Public Sector Modernization Structural
Adjustment Credit IV - IDA Reflow May 9, 2001 2006/2035 5.6 7.2
Community-Based Education Project Apnl 10, 2001 2011/2041 32.3 41 5
Social Investment Fund V Project December 14, 2000 2011/2040 47 1 60.0
Access to Land Pilot Project (PACTA) November 28, 2000 2011/2040 6.2 8 0
Road Reconstruction and Improvement Project November 7, 2000 2011/2040 51 2 66.5
Economic and Financial Management Project September 12, 2000 2010/2040 14 4 19.0
Jamaica
Bank Reconstructing and Debt Management
Program Adjustment Loan November 30, 2000 2006/2017 n a. 75.0
Mexico
Basic Health Care III Project June 21, 2001 */2014 n a. 350 0
Bank Restructuring Facility Loan II June 21, 2001 2011/2011 n.a. 505.1
Federal Highways Maintenance Project December 14, 2000 2006/2015 n a 218.0
Estado de Mexico Structural Adjustment Loan December 14, 2000 */2016 n a. 505.1
Natural Disaster Management Project December 7, 2000 2006/2015 n.a. 404.0
Nicaragua
Poverty Reduction and Local Development Project May 3, 2001 2011/2041 46 7 60 0
Natural Disaster Vulnerability Reduction Project April 3, 2001 2011/2041 10.5 13 5
Rural Municipal Development 11 Project March 27, 2001 2011/2041 22.0 28 7
Road Rehabilitation and Maintenance III Project February 15, 2001 2011/2041 58.8 75 0
Competitiveness Project January 19, 2001 2011/2040 4.0 5 0
Panama
Land Administration Project January 16, 2001 2006/2015 n a 47 9
Basic Education 11 Project September 7, 2000 2005/2015 n.a 35 0
Peru
Rural Roads 11 Project June 19, 2001 2007/2018 n.a 50 0
Programmatic Social Reform Loan June 19, 2001 2007/2018 n.a 100 0
Uruguay
Public Services Modernization
Technical Assistance Project March 22, 2001 2006/2016 n.a. 6 0
Venezuela, RepGblica Bolivariana de
Caracas Metropolitan Health Services Project June 26, 2001 2011/2011 n a 30.3
Total 384.1 5,300.1
n.a Not applicable (IBRD loan)
* Not available
a "Blend' loan/credit
152 The World Bank Annual Report 2001